# EDGAR Filing Document

**Accession Number:** 0001509223
**File Stem:** 0001410578-25-001838
**Filing Date:** 2025-8
**Character Count:** 410770
**Document Hash:** ee171e021be4ef421b9c7238cba682f2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-25-001838.hdr.sgml**: 20250815

**ACCESSION NUMBER**: 0001410578-25-001838

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250815

**DATE AS OF CHANGE**: 20250815

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Moatable, Inc.
- **CENTRAL INDEX KEY:** 0001509223
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35147
- **FILM NUMBER:** 251225277

**BUSINESS ADDRESS:**
- **STREET 1:** 45 WEST BUCHANAN STREET
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85003
- **BUSINESS PHONE:** 833-258-7482

**MAIL ADDRESS:**
- **STREET 1:** 45 WEST BUCHANAN STREET
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85003

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Renren Inc.
- **DATE OF NAME CHANGE:** 20110103

?xml version='1.0' encoding='ASCII'? Moatable, Inc._June 30, 2025

[**Table of Contents**](#TOC)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

**☒ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

For the Quarterly Period Ended June 30, 2025

**OR**

**☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

Commission File Number: **001-35147**

**Moatable, Inc.**

**(Exact Name Of Registrant As Specified In Its Charter)**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Cayman Islands** | &nbsp;&nbsp;**Not Applicable** |
| &nbsp;&nbsp;(State Or Other Jurisdiction Of <br>Incorporation or Organization) | &nbsp;&nbsp;(IRS Employer Identification No.) |
| &nbsp;&nbsp;**45 West Buchanan Street,**<br>**Phoenix, Arizona**(Address of Principal Executive Offices) | &nbsp;&nbsp;**85003**<br>(Zip Code) |

---

**(623) 473-5749**

(Registrant's Telephone Number, Including Area Code)

**N/A**

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of each class** |  | **Trading Symbol(s)\*** |  | **Name of each exchange on which registered** |
| None |  | MTBLY |  | N/A |

---

\*The registrant's American depositary shares, each representing 45 Class A ordinary shares, trade over-the-counter on OTC Pink under the trading symbol "MTBLY".

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

If an emerging growth company, indicate by check mark 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 7, 2025, the registrant had 645,598,528 Class A ordinary shares and 170,258,970 Class B ordinary shares outstanding.

------

[**Table of Contents**](#TOC)

#### Moatable, Inc.

#### Form 10-Q

#### For the Quarterly Period Ended June 30, 2025

#### **TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| [Note About Forward-Looking Statements](#NOTEABOUTFORWARDLOOKINGSTATEMENTS_673092) | [Note About Forward-Looking Statements](#NOTEABOUTFORWARDLOOKINGSTATEMENTS_673092) | ii |
| [**Part I. FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_697323) | [**Part I. FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_697323) | 1 |
| [Item 1.](#ITEM1FINANCIALSTATEMENTS_848319) | [Financial Statements](#ITEM1FINANCIALSTATEMENTS_848319) | 1 |
|  | [Condensed Consolidated Balance Sheets – December 31, 2024 and June 30, 2025](#CONDENSEDCONSOLIDATEDBALANCESHEETS_83972) | 1 |
|  | [Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income – For The Three Months and Six Months Ended June 30, 2024 and 2025](#CONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATI) | 3 |
|  | [Condensed Consolidated Statements of Changes in Equity – For The Three Months and Six Months Ended June 30, 2024 and 2025](#CONDENSEDCONSOLIDATEDSTATEMENTSOFCHANGES) | 5 |
|  | [Condensed Consolidated Statements of Cash Flows – For The Six Months Ended June 30, 2024 and 2025](#CONDENSEDCONSOLIDATEDSTATEMENTSOFCASHFLO) | 6 |
|  | [Notes to Condensed Consolidated Financial Statements](#NOTESTOCONDENSEDCONSOLIDATEDFINANCIALSTA) | 7 |
| [Item 2.](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSISOFF) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ITEM2MANAGEMENTSDISCUSSIONANDANALYSISOFF) | 28 |
| [Item 3.](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM3QUANTITATIVEANDQUALITATIVEDISCLOSUR) | 36 |
| [Item 4.](#ITEM4CONTROLSANDPROCEDURES_234809) | [Controls and Procedures](#ITEM4CONTROLSANDPROCEDURES_234809) | 36 |
| [**Part II. OTHER INFORMATION**](#PARTIIOTHERINFORMATION_157001) | [**Part II. OTHER INFORMATION**](#PARTIIOTHERINFORMATION_157001) | 38 |
| [Item 1.](#ITEM1LEGALPROCEEDINGS_526978) | [Legal Proceedings](#ITEM1LEGALPROCEEDINGS_526978) | 38 |
| [Item 1A.](#ITEM1ARISKFACTORS_767709) | [Risk Factors](#ITEM1ARISKFACTORS_767709) | 38 |
| [Item 2.](#ITEM2UNREGISTEREDSALESOFEQUITYSECURITIES) | [Unregistered Sales of Equity Securities and Use of Proceeds](#ITEM2UNREGISTEREDSALESOFEQUITYSECURITIES) | 38 |
| [Item 3.](#ITEM3DEFAULTSUPONSENIORSECURITIES_905583) | [Defaults Upon Senior Securities](#ITEM3DEFAULTSUPONSENIORSECURITIES_905583) | 38 |
| [Item 4.](#ITEM4MINESAFETYDISCLOSURES_533245) | [Mine Safety Disclosures](#ITEM4MINESAFETYDISCLOSURES_533245) | 38 |
| [Item 5.](#ITEM5OTHERINFORMATION_444388) | [Other Information](#ITEM5OTHERINFORMATION_444388) | 38 |
| [Item 6.](#ITEM6EXHIBITS_648636) | [Exhibits](#ITEM6EXHIBITS_648636) | 39 |
| [**SIGNATURES**](#SIGNATURES_274392) | [**SIGNATURES**](#SIGNATURES_274392) | 40 |

---

i

[**Table of Contents**](#TOC)

**NOTE ABOUT FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, financial or operating performance. Forward-looking statements often include words such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, risks, or intentions. Forward-looking statements include, among other things, statements regarding:

● future financial performance including statements about our revenue, cost of sales, gross margins, operating expenses, and business strategies;

● predictions regarding the size and growth potential of the markets for our products or our ability to serve those markets;

● ability to retain our customer base, grow the average subscription revenue per customer, or sell additional products and services to the customer base;

● ability to expand our sales organization or research and development activities to address existing markets and serve new markets;

● anticipate and address the technological or service needs of our customers, to release upgrades to our existing software platforms, and to develop new and enhanced applications to meet the needs of our customers;

● likelihood of macro-economic events that may impact the ability to operate within certain markets or disrupt the flow of products and services such as pandemics, wars, and deterioration of relations between sovereign entities;

● future regulatory, judicial, and legislative changes or developments in the U.S. and foreign countries, particularly those in which we operate and sell products, including China;

● regulatory changes, business relationships and operating risks that impact our ability to compete within the industries we serve;

● anticipated investments, including in sales and marketing, research and development, customer service and support, data center infrastructure, and our expectations relating to such investments;

● ability to attract, hire, and retain talent including sales, software development, or management personnel to expand operations;

● accuracy of our estimates regarding expenses, future revenues, gross margins, and needs for additional financing;

● ability to obtain funding for our operations;

● ability to integrate and grow acquired businesses and achieve anticipated results from strategic partnerships;

● anticipated impact of litigation to which we are or may become a party; and

● effectiveness of lead generation, branding, and other demand generation strategies to reach our customers and sustain growth.

Forward-looking statements may appear throughout this report and other documents we file with the Securities and Exchange Commission ("SEC"), including without limitation, the following sections: Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q and Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and those discussed in other documents we file with the SEC. We

ii

[**Table of Contents**](#TOC)

undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

As used herein, (i) "Moatable," "the company," "we," "us," "our," and similar terms include Moatable, Inc. and its subsidiaries and, in the context of describing our consolidated financial information, also include the VIE and its subsidiaries, unless the context indicates otherwise; (ii) "ADSs" refers to American depositary shares, each of which represents 45 of our Class A ordinary shares, par value $0.001 per share; (iii) "Lofty" refers to Lofty Inc., our majority-owned subsidiary incorporated in the State of Delaware and formerly known as Chime Technologies, Inc.; (iv) "PRC" and "China" refers to the People's Republic of China, excluding, for purposes of this Quarterly Report on Form 10-Q only, Hong Kong, Macau, and Taiwan; (v) "Qianxiang Shiji" refers to Qianxiang Shiji Technology Development (Beijing) Co., Ltd., our wholly owned subsidiary incorporated in China; (vi) "Qianxiang Tiancheng" and "VIE" refer to Beijing Qianxiang Tiancheng Technology Development Co., Ltd., a company incorporated in China; (vii) "Shares" and "ordinary shares" refer to our Class A ordinary shares and Class B ordinary shares, par value $0.001 per share; (viii) "Trucker Path" refers to Trucker Path, Inc., our majority-owned subsidiary incorporated in the State of Delaware; and (ix) all dollar amounts refer to United States (U.S.) dollars unless otherwise indicated.

"Moatable," "Lofty," "Trucker Path," and other trademarks of ours appearing in this report are our property. We do not intend our use or display of other companies' trade names or trademarks to imply an endorsement or sponsorship of us by such companies, or any relationship with any of these companies.

iii

[**Table of Contents**](#TOC)

#### PART I. FINANCIAL INFORMATION

#### ITEM 1. FINANCIAL STATEMENTS

#### MOATABLE, INC.

#### CONDENSED CONSOLIDATED BALANCE SHEETS

#### DECEMBER 31, 2024 AND JUNE 30, 2025
**(In thousands, except per share amounts and shares) (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **As of**  | **As of**  |
|  | **December 31,** <br>**2024** | **June 30,** <br>**2025** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $26642 | $17121 |
| &nbsp;&nbsp;Restricted cash  | 5280 | 5000 |
| &nbsp;&nbsp;Short-term investments | 4980 |  |
| &nbsp;&nbsp;Accounts receivable, net | 3705 | 4687 |
| &nbsp;&nbsp;Amounts due from related party  | 663 | 672 |
| &nbsp;&nbsp;Prepaid expenses and other current assets, net  | 2672 | 3060 |
| **Total current assets** | **43942** | **30540** |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;Property and equipment, net | 6105 | 6057 |
| &nbsp;&nbsp;Intangible assets, net | 1927 | 2596 |
| &nbsp;&nbsp;Goodwill | 2658 | 4995 |
| &nbsp;&nbsp;Long-term investments  | 13286 | 13510 |
| &nbsp;&nbsp;Right-of-use assets  | 1340 | 1309 |
| &nbsp;&nbsp;Other non-current assets | 210 | 248 |
| &nbsp;&nbsp;**Total non-current assets** | **25526** | **28715** |
| **TOTAL ASSETS** | $**69468** | $**59255** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;Accounts payable | $2413 | $1767 |
| &nbsp;&nbsp;Accrued expenses and other current liabilities | 13615 | 14443 |
| &nbsp;&nbsp;Operating lease liabilities - current | 473 | 535 |
| &nbsp;&nbsp;Amounts due to related party | 623 | 635 |
| &nbsp;&nbsp;Deferred revenue | 4577 | 4842 |
| &nbsp;&nbsp;Income tax payable | 1889 | 1238 |
| **Total current liabilities** | **23590** | **23460** |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;Operating lease liabilities - non-current | 763 | 739 |
| &nbsp;&nbsp;Deferred tax liabilities | 354 | 386 |
| &nbsp;&nbsp;Other non-current liabilities |  | 898 |
| **Total non-current liabilities** | **1117** | **2023** |
| **TOTAL LIABILITIES** | $**24707** | $**25483** |

---

[**Table of Contents**](#TOC)

**MOATABLE, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS- continued**

**DECEMBER 31, 2024 AND JUNE 30, 2025**

**(In thousands, except per share amounts and shares) (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **As of**  | **As of**  |
|  | **December 31,** <br>**2024** | **June 30,** <br>**2025** |
| **Commitments and contingencies (Note 13)** |  |  |
| **Shareholders' equity** |  |  |
| Class A ordinary shares, $0.001 par value, 3,000,000,000 shares authorized; 710,414,011 shares issued and 632,894,266 shares outstanding as of December 31, 2024; 726,340,093 shares issued and 646,048,168 shares outstanding as of June 30, 2025 | $711 | $726 |
| Class B ordinary shares, $0.001 par value, 500,000,000 shares authorized; 170,258,970 shares issued and outstanding as of December 31, 2024 and June 30, 2025; each Class B ordinary share is convertible into one Class A ordinary share  | 170 | 170 |
| &nbsp;&nbsp;Treasury stock | (2929) | (3015) |
| &nbsp;&nbsp;Additional paid in capital | 784598 | 773535 |
| &nbsp;&nbsp;Accumulated deficit | (720810) | (721121) |
| &nbsp;&nbsp;Statutory reserves | 6712 | 6712 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (9199) | (8711) |
| **Total Moatable, Inc. shareholders' equity** | **59253** | **48296** |
| **Non-controlling interest** | **(14492)** | **(14524)** |
| **Total equity** | **44761** | **33772** |
| **TOTAL LIABILITIES AND EQUITY** | $**69468** | $**59255** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

[**Table of Contents**](#TOC)

#### MOATABLE, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

#### FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 and 2025

#### (In thousands, except per share amounts and shares) (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;SaaS revenue | $15249 | $19237 | $29231 | $37195 |
| &nbsp;&nbsp;Other services | 40 | 39 | 81 | 81 |
| **Total revenues** | **15289** | **19276** | **29312** | **37276** |
| **Cost of revenues:** |  |  |  |  |
| &nbsp;&nbsp;SaaS business | 3464 | 4942 | 6744 | 9499 |
| &nbsp;&nbsp;Other services | 36 | 41 | 72 | 70 |
| **Total cost of revenues** | **3500** | **4983** | **6816** | **9569** |
| **Gross profit** | **11789** | **14293** | **22496** | **27707** |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;Selling and marketing | 4886 | 4440 | 8962 | 10163 |
| &nbsp;&nbsp;Research and development | 4555 | 6069 | 9013 | 11830 |
| &nbsp;&nbsp;General and administrative | 3136 | 3338 | 6534 | 6242 |
| &nbsp;&nbsp;Impairment of intangible assets |  |  | 207 |  |
| &nbsp;&nbsp;**Total operating expenses** | **12577** | **13847** | **24716** | **28235** |
| **(Loss) Income from operations** | **(788)** | **446** | **(2220)** | **(528)** |
| &nbsp;&nbsp;Other (expense) income, net | (52) | (33) | (18) | 33 |
| &nbsp;&nbsp;Loss from fair value change of a long-term investment | (133) |  | (1621) | (21) |
| &nbsp;&nbsp;Interest income  | 409 | 171 | 771 | 453 |
| **(Loss) Income before provision of income tax and income (loss) in equity method investments and non-controlling interest, net of tax** | **(564)** | **584** | **(3088)** | **(63)** |
| &nbsp;&nbsp;Income tax expenses | (121) | (296) | (236) | (841) |
| **(Loss) Income before income (loss) in equity method investments and non-controlling interest, net of tax** | **(685)** | **288** | **(3324)** | **(904)** |
| Impairment on and income (loss) in equity method investments, net of tax | 193 | 147 | (298) | 245 |
| **Net (loss) income** | $**(492)** | $**435** | $**(3622)** | $**(659)** |
| &nbsp;&nbsp;Less: Net loss attributable to non-controlling interests | (20) | (72) | (47) | (348) |
| **Net (loss) income attributable to Moatable, Inc.** | $**(472)** | $**507** | $**(3575)** | $**(311)** |
| **Net (loss) income per share:** |  |  |  |  |
| **Net (loss) income per share attributable to Moatable, Inc. shareholders:** |  |  |  |  |
| &nbsp;&nbsp;Basic | $(0.0006) | $0.0006 | $(0.005) | $(0.0004) |
| &nbsp;&nbsp;Diluted  | (0.0006) | 0.0006 | (0.005) | (0.0004) |
| **Weighted average number of shares used in calculating net loss per share attributable to Moatable, Inc. shareholders:** |  |  |  |  |
| &nbsp;&nbsp;Basic | 809022314 | 817123863 | 764182360 | 809680136 |
| &nbsp;&nbsp;Diluted | 809022314 | 817915301 | 764182360 | 809680136 |

---

[**Table of Contents**](#TOC)

**MOATABLE, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME**

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 and 2025**

**(In thousands) (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| **Net (loss) income** | $**(492)** | $**435** | $**(3622)** | $**(659)** |
| **Other comprehensive income (loss), net of tax** |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation, net of nil income taxes  | 6 | 325 | (42) | 488 |
| **Other comprehensive income (loss)** | **6** | **325** | **(42)** | **488** |
| **Comprehensive (loss) income** | **(486)** | **760** | **(3664)** | **(171)** |
| &nbsp;&nbsp;Less: total comprehensive income (loss) attributable to non-controlling interest | 97 | (72) | 69 | (348) |
| **Comprehensive (loss) income attributable to Moatable, Inc.** | $**(583)** | $**832** | $**(3733)** | $**177** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

[**Table of Contents**](#TOC)

#### MOATABLE, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

#### FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2025

#### (In thousands, except share amounts and shares) (Unaudited)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Ordinary shares** | **Class A Ordinary shares** | **Class B Ordinary shares** | **Class B Ordinary shares** | **Treasury stock** | **Treasury stock** | | | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | <br><br>**Additional**<br>**paid-in capital** | <br><br>**Accumulated**<br>**deficit** | <br><br>**Statutory**<br>**reserves** | **Accumulated**<br>**other**<br>**comprehensive**<br>**(loss) income** | <br>**Total**<br>**Moatable**<br>**Inc.'s Equity** | <br>**Non-**<br>**controlling**<br>**interest** | <br><br>**Total**<br>**equity** |
| **Balance as of December 31, 2023** | **607424941** | $**608** | **170258970** | $**170** | **(57192165)** | $**(2002)** | **782365** | $**(718673)** | **6712** | $**(8778)** | $**60402** | $**(14689)** | $**45713** |
| Stock-based compensation |  |  |  |  |  |  | 555 |  |  |  | 555 | 117 | 672 |
| Repurchase of Class A ordinary shares |  |  |  |  | (7991370) | (155) |  |  |  |  | (155) |  | (155) |
| Other comprehensive loss |  |  |  |  |  |  |  |  |  | (47) | (47) | (1) | (48) |
| Net loss |  |  |  |  |  |  |  | (3103) |  |  | (3103) | (27) | (3130) |
| Exercise of share option and restricted shares vesting | 96104340 | 96 |  |  |  |  | 944 |  |  |  | 1040 |  | 1040 |
| **Balance as of March 31, 2024** | **703529281** | $**704** | **170258970** | $**170** | **(65183535)** | $**(2157)** | **783864** | $**(721776)** | **6712** | $**(8825)** | $**58692** | $**(14600)** | $**44092** |
| Stock-based compensation |  |  |  |  |  |  | 542 |  |  |  | 542 | 111 | 653 |
| Repurchase of Class A ordinary shares |  |  |  |  | (2404485) | (32) |  |  |  |  | (32) |  | (32) |
| Other comprehensive (loss) income |  |  |  |  |  |  |  |  |  | (111) | (111) | 117 | 6 |
| Net loss |  |  |  |  |  |  |  | (472) |  |  | (472) | (20) | (492) |
| Exercise of share option and restricted shares vesting | 5207580 | 5 |  |  |  |  |  |  |  |  | 5 |  | 5 |
| **Balance as of June 30, 2024** | **708736861** | $**709** | **170258970** | $**170** | **(67588020)** | $**(2189)** | $**784406** | $**(722248)** | $**6712** | $**(8936)** | $**58624** | $**(14392)** | $**44232** |
| **Balance as of December 31, 2024** | **710414011** | $**711** | **170258970** | $**170** | **(77519745)** | $**(2929)** | $**784598** | $**(720810)** | $**6712** | $**(9199)** | $**59253** | $**(14492)** | $**44761** |
| Stock-based compensation |  |  |  |  |  |  | 28 |  |  |  | 28 | 101 | 129 |
| Repurchase of Class A ordinary shares |  |  |  |  | (1517400) | (57) |  |  |  |  | (57) |  | (57) |
| Change of shares withheld for payroll taxes on restricted shares into treasury stock\* |  |  |  |  | (9675) |  |  |  |  |  |  |  |  |
| Other comprehensive income |  |  |  |  |  |  |  |  |  | 163 | 163 |  | 163 |
| Cash dividend payments ($0.01346 per ordinary share) |  |  |  |  |  |  | (11106) |  |  |  | (11106) |  | (11106) |
| Net loss |  |  |  |  |  |  |  | (818) |  |  | (818) | (276) | (1094) |
| Exercise of share option and restricted shares vesting\*\* | 256545 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of March 31, 2025** | **710670556** | $**711** | **170258970** | $**170** | **(79046820)** | $**(2986)** | $**773520** | $**(721628)** | $**6712** | $**(9036)** | $**47463** | $**(14667)** | $**32796** |
| Stock-based compensation |  |  |  |  |  |  | 30 |  |  |  | 30 | 215 | 245 |
| Repurchase of Class A ordinary shares |  |  |  |  | (1235655) | (29) |  |  |  |  | (29) |  | (29) |
| Change of shares withheld for payroll taxes on restricted shares into treasury stock\* |  |  |  |  | (9450) |  |  |  |  |  |  |  |  |
| Other comprehensive income |  |  |  |  |  |  |  |  |  | 325 | 325 |  | 325 |
| Net income |  |  |  |  |  |  |  | 507 |  |  | 507 | (72) | 435 |
| True-up adjustment of Class A ordinary shares | 15418167 | 15 |  |  |  |  | (15) |  |  |  |  |  |  |
| Exercise of share option and restricted shares vesting\*\* | 251370 |  |  |  |  |  |  |  |  |  |  |  |  |
| **Balance as of June 30, 2025** | **726340093** | $**726** | **170258970** | $**170** | **(80291925)** | $**(3015)** | $**773535** | $**(721121)** | $**6712** | $**(8711)** | $**48296** | $**(14524)** | $**33772** |

---

\*The amount of Treasury stock is less than one thousand dollars.

\*\*The amount of Class A Ordinary shares is less than one thousand dollars.

The accompanying notes are integral part of these condensed consolidated financial statements.

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#### MOATABLE, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

#### FOR THE SIX MONTHS ENDED JUNE 30, 2024 and 2025

#### (In thousands) (Unaudited)

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** |
| **Cash flows from operating activities:** |  |  |
| **Net loss** | $**(3622)** | $**(659)** |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| Share-based compensation expense | 1325 | 374 |
| Impairment on and loss (income) in equity method investments | 298 | (245) |
| Amortization of the right-of-use assets  | 216 | 359 |
| Depreciation and amortization  | 209 | 345 |
| Impairment on intangible asset | 207 |  |
| Fair value change on long-term investment | 1621 | 21 |
| Provision for credit losses | 737 | 67 |
| **Changes in operating assets and liabilities:** |  |  |
| Accounts receivable  | (628) | (1049) |
| Prepaid expenses and other current assets  | (755) | (391) |
| Other non-current assets | (30) | (38) |
| Accounts payable  | (62) | (646) |
| Accrued expenses and other current liabilities  | 59 | (165) |
| Deferred revenue  | 229 | 265 |
| Operating lease liabilities  | (245) | (423) |
| Income tax payable  | 152 | (651) |
| **Net cash used in operating activities** | **(289)** | **(2836)** |
| **Cash flows from investing activities:** |  |  |
| Payment for acquisition of a subsidiary, net of cash acquired |  | (994) |
| Redemption of short-term investments  |  | 4980 |
| Purchases of property and equipment | (136) | (149) |
| **Net cash (used in) provided by investing activities** | **(136)** | **3837** |
| **Cash flows from financing activities:** |  |  |
| Proceeds from exercise of share options | 1045 |  |
| Ordinary share buyback  | (187) | (86) |
| Special cash dividends to ordinary shares (including ADSs) |  | (11106) |
| **Net cash provided by (used in) financing activities** | **858** | **(11192)** |
| **Net increase (decrease) in cash and cash equivalents and restricted cash** | **433** | **(10191)** |
| Cash and cash equivalents and restricted cash at the beginning of the period | 38969 | 31922 |
| Effect of exchange rate changes | (165) | 390 |
| **Cash and cash equivalents and restricted cash at the end of the period** | $**39237** | $**22121** |
| **Reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets** |  |  |
| Cash and cash equivalents | $34067 | $17121 |
| Restricted cash | 5170 | 5000 |
| **Cash and cash equivalents and restricted cash at the end of the period** | $**39237** | $**22121** |
| **Supplemental schedule of cash flows information:** |  |  |
| Interest paid | $— | $— |
| Income taxes paid | $— | $1450 |
| **Schedule of non-cash activities:** |  |  |
| Obtaining right-of-use assets in exchange for operating lease liabilities | $— | $208 |
| Estimated present value of contingent consideration |  | 1826 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

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#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
**1.** ORGANIZATION AND PRINCIPAL ACTIVITIES

Moatable, Inc. was incorporated in the Cayman Islands. Moatable, Inc., which includes its consolidated subsidiaries, variable interest entity ("VIE") and VIE's subsidiaries (collectively referred to as the "Company"), operate two SaaS businesses, Lofty and Trucker Path. Lofty offers an all-in-one real estate sales acceleration and client lifecycle management platform that allows real estate professionals to obtain and nurture leads, close transactions, and retain their clients. Trucker Path provides trip planning, navigation, freight sourcing, and a marketplace that offers truckers goods and services to operate their businesses. The Company's SaaS businesses currently generates the majority of their revenue from the U.S. market, which comprises the majority of the Company's revenue.

As of June 30, 2025, Moatable, Inc.'s major subsidiaries, VIE and VIE's subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Name of Subsidiaries** | **Later of date**<br>**of incorporation**<br>**or acquisition** | <br>**Place of**<br>**incorporation** | **Percentage of**<br>**legal ownership**<br>**by Moatable, Inc.** | <br>**Principal**<br>**activities** |
| Subsidiaries: |  |  |  |  |
| Lofty, Inc.("Lofty") | September 7, 2012 | Delaware, USA | 76.4% | SaaS business |
| Trucker Path, Inc. ("Trucker Path") | December 28, 2017 | Delaware, USA | 76.1% | SaaS business |
| Renren Giantly Philippines Inc. | March, 2018 | Philippines | 100% | SaaS business |
| Qianxiang Shiji Technology Development (Beijing) Co., Ltd. ("Qianxiang Shiji") | March 21, 2005 | PRC | 100% | Investment holding |
| The Letting Partnership Ltd ("TLP") | August 30, 2024 | England and Wales, UK | 76.4% | Real estate accounting business |
| Variable Interest Entity: |  |  |  |  |
| Beijing Qianxiang Tiancheng Technology Development Co., Ltd. ("Qianxiang Tiancheng") | October 28, 2002 | PRC | N/A | Internet business |
| Subsidiaries of Variable Interest Entity: |  |  |  |  |
| Beijing Qianxiang Wangjing Technology Development Co., Ltd. ("Qianxiang Wangjing") | November 11, 2008 | PRC | N/A | Internet business |

---

#### The VIE arrangements
PRC regulations limit direct foreign ownership of business entities providing value-added telecommunications services, online advertising services and internet services in the PRC where certain licenses are required for the provision of such services. Although the Company no longer operates businesses requiring the VIE, historically, the Company provided online advertising, internet value-added services ("IVAS"), and internet finance services through its VIE, Qianxiang Tiancheng, which is referred to as the "VIE".

Qianxiang Shiji ("WFOE"), the Company's Wholly Foreign-Owned Enterprise, entered into a series of contractual arrangements, including: (1) Power of Attorney; (2) Business Operation Agreements; (3) Exclusive Equity Option Agreement; (4) Spousal Consent Agreement; (5) Exclusive Technical and Consulting Services Agreement; (6) Intellectual Property Licenses Agreement; (7) Loan Agreements, and (8) Equity Interest Pledge Agreement with the VIE that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. Accordingly, the WFOE is considered the primary beneficiary of the VIE and has consolidated the VIE's financial results of operations, assets and liabilities in the Company's consolidated financial statements. In making the conclusion that the Company is the primary beneficiary of the VIE, the Company believes the Company's rights under the terms of the exclusive option agreement and power of attorney are substantive as they relate to operating matters, which provide the Company with a substantive kick-out right.

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More specifically, the Company believes the terms of the contractual agreements are valid, binding, and enforceable under PRC laws and regulations currently in effect. In particular, the Company believes that the minimum amount of consideration permitted by the applicable PRC law to exercise the exclusive option does not represent a financial barrier or disincentive for the Company to exercise its rights under the exclusive option agreement. A simple majority vote of the Company's board of directors is required to pass a resolution to exercise the Company's rights under the exclusive option agreement, for which the consent from Mr. Joe Chen, who holds the most voting interests in the Company and is also the Company's chairman and CEO, is not required. The Company's rights under the exclusive option agreement give the Company the power to control the shareholders of the VIE and thus the power to direct the activities that most significantly impact the VIE's economic performance. In addition, the Company's rights under powers of attorney also reinforce the Company's abilities to direct the activities that most significantly impact the VIE's economic performance. The Company also believes that this ability to exercise control ensures that the VIE will continue to execute and renew service agreements that benefit the Company, currently largely comprised of Research and Development services to the Company's SaaS businesses. By charging service fees at the sole discretion of the Company, and by ensuring that service agreements are executed and renewed indefinitely, the Company has the right to receive substantially all of the economic benefits from the VIE.

The VIE and its subsidiaries hold the requisite licenses and permits necessary to conduct the Company's business in PRC under the current business arrangements.

The following financial statement balances and amounts of the Company's VIE were included in the accompanying condensed consolidated financial statements after elimination of intercompany balances and transactions between the offshore companies, WFOE, VIE and VIE's subsidiaries. As of December 31, 2024 and June 30, 2025, the balance of the amounts payable by the VIE and its subsidiaries to the WFOE related to the service fees were nil.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** <br>**2024** | **As of June 30,** <br>**2025** |
| Total assets | $4774 | $3088 |
| Total liabilities | $4617 | $4557 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| Revenues | $21 | $14 | $41 | $36 |
| Net loss | $(3639) | $(3512) | $(7110) | $(6869) |

---

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** |
| Net cash provided by (used in) operating activities | $244 | $(1311) |
| Net cash used in investing activities | $(5) | $(80) |
| Net cash used in financing activities | $— | $— |

---

There are no consolidated VIE assets that are collateral for the VIE obligations and can only be used to settle the VIE obligations. There are no creditors (or beneficial interest holders) of the VIE that have recourse to the general credit of the Company or any of its consolidated subsidiaries. However, if the VIE ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE or entrustment loans to the VIE.

Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 11 for disclosure of restricted net assets.

Prior to the issuance of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, management discovered that it incorrectly classified a foreign subsidiary as a VIE starting in the period ended June 30, 2023. Accordingly, as of June 30, 2024, total liabilities related to VIEs of $7,291 were incorrectly reported as $7,995 and net loss from VIEs and its subsidiaries of $3,639 and $7,110 was incorrectly reported as $3,779 and $6,525 for the three months and six months ended June 30, 2024. The error related to the year ended December 31, 2023 had been revised in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The similar error relating to total liabilities attributable to the VIEs in the Quarterly Report on Form 10-Q filed for other periods have been revised in the respective Quarterly Report on Form 10-Q. The impact on net income for the various quarterly information included in Quarterly Reports on Form 10-Q and the impact on assets and cash flow information for all periods was de minimis. There is no impact of this misclassification on the consolidated financial statements.

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**2.** **REVISION TO PRIOR PERIOD FINANCIAL STATEMENTS**

Subsequent to the filing of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 with the United States Securities and Exchange Commission (the "SEC"), management of Moatable, Inc. (the "Company") discovered that the sales tax liability was understated as of June 30, 2024 by $2,957, of which $2,358 is related to the prior years of 2021 through 2023, and $310 and $599 are related to the three months and six months period ended June 30, 2024, respectively.

In accordance with Staff Accounting Bulletin ("SAB") No. 99, "Materiality," and SAB No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," the Company evaluated the adjustments detailed above, and determined the related impact did not materially misstate its consolidated financial statements as of and for the year ended December 31, 2023 or its condensed consolidated financial statements for the periods ended March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024, June 30, 2024, and September 30, 2024.

Although the Company concluded that the misstatement was not material to its previously issued financial statements, the Company has determined it was appropriate to present the impacts to its consolidated financial statements for the year ended December 31, 2023 on a prospective basis to provide appropriate context to stakeholders. Revision to its consolidated financial statements as of and for the year ended December 31, 2023 was included within the comparative consolidated financial statements as of and for the year ended December 31, 2024 contained in the Annual Report on Form 10-K filed with the SEC on April 15, 2025. Revisions to the Company's condensed consolidated financial statements for the periods ended June 30, 2024 are tabulated below, and the errors for the period of September 30, 2024 will be revised when the Company files its Quarterly Reports on Form 10-Q for the third quarter in 2025.

As of June 30, 2024, the omission of accrual of US sales tax liabilities was totaled $2,957, which has impact for the three and six months ended June 30, 2024 by increasing $310 and $599 for selling expenses and $2,358 for the opening of accumulated deficit.

The following are the relevant line items from the Company's consolidated balance sheet as of June 30, 2024, condensed consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2024, and condensed consolidated statements of cashflows for the six months ended June 30, 2024, which illustrate the effect of the adjustments to the period presented:

**Opening accumulated deficit as of January 1, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **As**<br>**reported** | <br>**Adjustments** | <br>**As adjusted** |
| Accumulated deficit | $(716315) | $(2358) | $(718673) |

---

**Selected consolidated balance sheet information as of June 30, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **As**<br>**reported** | <br>**Adjustments** | <br>**As restated** |
| Accrued expenses and other current liabilities | $9821 | $2957 | $12778 |
| Total current liabilities | 20918 | 2957 | 23875 |
| Total Liabilities | 20926 | 2957 | 23883 |
| Accumulated deficit | (719291) | (2957) | (722248) |
| Total Moatable, Inc. shareholders' equity | 61581 | (2957) | 58624 |
| Total equity | 47189 | (2957) | 44232 |

---

[**Table of Contents**](#TOC)

**Selected consolidated statement of operations and comprehensive loss information for the three months ended June 30, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **As**<br>**reported** | <br>**Adjustments** | <br>**As restated** |
| Selling and marketing | $4576 | $310 | $4886 |
| Total operating expenses | 12267 | 310 | 12577 |
| Loss from operations | (478) | (310) | (788) |
| Loss before provision of income tax and income (loss) in equity method investments and non-controlling interest, net of tax | (254) | (310) | (564) |
| Loss before income (loss) in equity method investments and non-controlling interest, net of tax | (375) | (310) | (685) |
| Net loss | (182) | (310) | (492) |
| Net loss attributable to Moatable Inc. | (162) | (310) | (472) |
| Comprehensive loss | (176) | (310) | (486) |
| Comprehensive loss attributable to Moatable Inc. | (273) | (310) | (583) |
| Net loss per share attributable to Moatable Inc. shareholders: |  |  |  |
| Basic and Diluted | (0.0002) | (0.0004) | (0.0006) |

---

**Selected consolidated statement of operations and comprehensive loss information for the six months ended June 30, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **As** <br>**reported** | <br>**Adjustments** | <br>**As restated** |
| Selling and marketing | $8363 | $599 | $8962 |
| Total operating expenses | 24117 | 599 | 24716 |
| Loss from operations | (1621) | (599) | (2220) |
| Loss before provision of income tax and income (loss) in equity method investments and non-controlling interest, net of tax | (2489) | (599) | (3088) |
| Loss before income (loss) in equity method investments and non-controlling interest, net of tax | (2725) | (599) | (3324) |
| Net loss | (3023) | (599) | (3622) |
| Net loss attributable to Moatable Inc. | (2976) | (599) | (3575) |
| Comprehensive loss | (3065) | (599) | (3664) |
| Comprehensive loss attributable to Moatable Inc. | (3134) | (599) | (3733) |
| Net loss per share attributable to Moatable Inc. shareholders: |  |  |  |
| Basic and Diluted | (0.004) | (0.001) | (0.005) |

---

**Selected consolidated statement of cash flows information for the six months ended June 30, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | **As**<br>**reported** | <br>**Adjustments** | <br>**As restated** |
| Net loss | $(3023) | $(599) | $(3622) |
| Accrued expenses and other current liabilities | (540) | 599 | 59 |

---

[**Table of Contents**](#TOC)

**3.** SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Basis of presentation
The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information, and with the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2025, and its results of operations for the three and six months ended June 30, 2024 and 2025, and cash flows for the six months ended June 30, 2024 and 2025. The condensed balance sheet at December 31, 2024, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and accompanying notes in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

***Principles of consolidation***

The condensed consolidated financial statements of the Company include the financial statements of Moatable, Inc., its subsidiaries, its VIE and VIE's subsidiaries. All inter-company transactions and balances are eliminated upon consolidation.

***Use of estimates***

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenues and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company's consolidated financial statements include, but are not limited to, valuation allowance for deferred income tax assets and probabilities associated with the potential for contingent consideration.

***Business combination***

In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Company applies a "screen test" that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.

Transactions in which the acquired is considered a business are accounted for as a business combination as described below. Conversely, transactions not considered as business acquisition are accounted for as acquisition of assets and liabilities. In such transactions, the cost of acquisition is allocated proportionately to the acquired identifiable assets and liabilities, based on their proportionate fair value on the acquisition date. In an assets acquisition, no goodwill is recognized on the acquisition date.

Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred.

For acquisitions involving additional consideration to be transferred to the selling parties in the event certain future events occur or conditions are met ("contingent consideration"), the Company recognizes the acquisition date fair value of contingent consideration as part of the consideration transferred in exchange for the business combination. The Company determines the acquisition date fair value of contingent consideration using a scenario-based method under which a set of payoffs are calculated using the term of the earnout, projections, and an appropriate metric risk premium. These payoffs are then discounted back from the payment date to the valuation date using a payment discount rate. Finally, the discounted payments are summed together to arrive at the value of the contingent consideration. The scenario-based method incorporates the following key assumptions: (i) the forecasted achievement against certain operational metrics, (ii) the remaining contractual term, (iii) a metric risk premium, and (iv) a payment discount rate. The fair value

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measurement includes revenue forecasts which are a Level 3 measurement as defined in ASC Topic 820, Fair Value Measurement. The fair value of the contingent consideration is reviewed quarterly over the earn-out period to compare actual revenue earned to the estimated revenue used in the forecasts. Changes in the estimated fair value of the contingent consideration, up to the total contractual amount, are reflected in the results of operations in the periods in which they are identified. Changes in the fair value of the contingent consideration may materially impact and cause volatility in the Company's future operating results.

***Fair value***

Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1-inputs are based upon unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level 2-inputs are based upon quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

#### Cash and cash equivalents
Cash and cash equivalents generally consist of cash and highly liquid investments with an original maturity of three months or less. The Company acts as an agent for its property management clients in managing specific cash and cash equivalents. These amounts are excluded from the accompanying consolidated balance sheets.

#### Restricted Cash
***On August 28, 2023, the Company entered into an Escrow Agreement with U.S. Bank National Association to enhance directors and officers' insurance coverage. The Company set aside $5 million restricted cash into an escrow account with U.S. Bank as required by the contractual agreement with U.S. Bank National Association.***

#### Accounts receivable
***Accounts receivable are stated at the original amount less a provision for credit loss. Accounts receivable are recognized in the period when the Company has provided services to its customers and when its right to consideration is unconditional.***

#### Provision for credit loss
***In accordance with Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses, the Company evaluates its accounts receivable, and other current receivable included in other current assets for expected credit losses on a regular basis. The Company maintains an estimated provision for credit losses to reduce its receivables to the amount that it believes will be collected. The Company considers factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer's payment history, credit-worthiness, current market conditions, reasonable and supportable forecasts of future economic conditions, and other specific circumstances related to the accounts. The Company determines to use aging schedule method in combination with current situation adjustment as the current expected credit losses (CECL) model to estimate the provision for credit loss. The Company adjusts the provision percentage periodically when there are significant differences between estimated bad debts and actual bad debts. If there is strong evidence indicating that the receivables are likely to be unrecoverable, the Company also makes a specific provision in the period in which a loss is determined to be probable. Receivable balances are written off after all collection efforts have been exhausted. For the three months ended June 30, 2024 and 2025, the Company recorded nil and $59 provision for credit loss for accounts receivable, respectively. For the six months ended June 30, 2024 and 2025, the Company recorded nil and $67 provision for credit loss for accounts receivable, respectively. For the three and six months ended June 30, 2024 and 2025, the Company recorded $737 and nil provision for credit loss for other receivable, respectively.***

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#### Revenue recognition
The Company recognizes revenue when control of the good or service has been transferred to the customer, generally upon delivery to a customer. The contracts have a fixed contract price and revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company collects sales taxes and value-added taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on a net basis and are not included in revenues and cost of revenues. The Company generally expenses sales commissions when incurred because the amortization period is less than one year. These costs are recorded within selling and marketing expenses. The Company does not have any significant financing payment terms as payment is received at or shortly after the point of sale.

Revenue from Contracts with Customers ("ASC 606") prescribes a five-step model that includes: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied.

The Company generated the majority of revenue from SaaS services.

*SaaS revenue:* SaaS revenue mainly includes the revenue generated from (1) subscription services, (2) advertising services provided by Lofty and Trucker Path, and (3) other SaaS revenue. The Company recognizes revenue for subscription services over the life of the subscription. For Lofty's advertising service, the Company acts as an agent to place advertisements on third-party websites or platforms. For Trucker Path's advertising service, the Company acts as principal to place advertisements on Trucker Path's platform. The Company recognizes revenue for advertising services over the advertising periods.

*Other services:* Other services mainly include revenue from the provision of back-office services to Oak Pacific Investment ("OPI") and revenue from non-recurring sources. The Company provides back-office services including accounting, legal, and business-related consulting services, which is a single performance obligation provided over the contract periods with pre-determined stand-alone selling price. The Company recognizes revenue over the contract periods.

The following tables disaggregate revenue by subscription, advertising, and other services:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| **Lofty** |  |  |  |  |
| Subscription services | $8045 | $8595 | $15559 | $17156 |
| Advertising services | 375 | 410 | 734 | 805 |
| Other SaaS services | 71 | 890 | 147 | 1745 |
| **Subtotal** | $**8491** | $**9895** | $**16440** | $**19706** |
| **Trucker Path** |  |  |  |  |
| Subscription services | $6234 | $8823 | $11872 | $16599 |
| Advertising services | 476 | 468 | 881 | 796 |
| Other SaaS services | 48 | 51 | 38 | 94 |
| **Subtotal** | $**6758** | $**9342** | $**12791** | $**17489** |
| **Other operations** |  |  |  |  |
| Other services | $40 | $39 | $81 | $81 |
| **Total revenues** | $**15289** | $**19276** | $**29312** | $**37276** |

---

Contract balances: Timing of revenue recognition may differ from the timing of invoicing to customers. A contract asset is recorded when the Company has transferred services to the customer before payment is received or is due, and the Company's right to consideration is conditional on future performance or other factors in the contract. There were no contract assets recorded as of December 31, 2024 and June 30, 2025.

[**Table of Contents**](#TOC)

Deferred revenue mainly represents payments received from customers related to unsatisfied performance obligations for SaaS. The Company's total deferred revenue was $4,577 and $4,842 as of December 31, 2024 and June 30, 2025, respectively, which is substantially recognized as revenue within one year. The amount of revenue recognized during the six months ended June 30, 2024 and 2025 that was previously included in the deferred revenue as of December 31, 2023 and 2024 was $3,310 and $3,797 respectively.

**(Loss) income per share**

Basic (loss) income per ordinary share is computed by dividing net (loss) income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted (loss) income per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Company had stock options and non-vested restricted shares, which could potentially dilute basic earnings per share in the future. All stock options and nonvested restricted shares in the diluted loss per ordinary share computation were excluded in periods of net loss for the three and six months ended June 30, 2024 and for the six months ended June 30, 2025, as their impact is anti-dilutive. For the three months ended June 30, 2025, only certain stock options were included in the diluted income per ordinary share computation as they had a dilutive effect, whereas all non-vested restricted shares were excluded as they were anti-dilutive.

**Recent accounting pronouncements**

In December 2023, the FASB issued ASU 2023-09, Improvement to Income Tax Disclosure. This standard requires more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for public business entities, for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The Company adopted the new disclosures for the annual periods beginning on January 1, 2025. The Company will include the applicable and relevant required disclosures in the Income Taxes footnote in the Form 10-K for the year ending December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), to improve the disclosures about an entity's expenses including more detailed information about the types of expenses in commonly presented expense captions. At each interim and annual reporting period, entities will disclose in tabular format disaggregating information about prescribed categories underlying relevant income statement captions, as well as the total amount of selling expense and a description of the composition of its selling expense. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. Public business entities are required to adopt the ASU prospectively. However, public business entities are permitted to apply the amendments in the ASU retrospectively. In January 2025, the FASB issued ASU 2025 - 01 to clarify the effective date of ASU 2024 - 03 (Expense Disaggregation Disclosures). The amendment confirms that all public business entities must adopt ASU 2024 - 03 in annual periods beginning after December 15, 2026, and in interim periods beginning after December 15, 2027, addressing ambiguity for non - calendar year - end entities. Early adoption of ASU 2024 - 03 remains allowed. The Company is in the process of evaluation the impact of adopting this new guidance on its consolidated financial statement.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ("ASU 2025-05"). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers ("ASC 606") by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for the Company for its for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-05 will have on its consolidated financial statements.

Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company's consolidated results of operations or financial position.

[**Table of Contents**](#TOC)

**4.** ACQUISITION

On May 1, 2025, for the purpose of entering into the insurance brokerage business, the Company acquired 100% membership interest of Truckers Best Insurance LLC ("TBI"), a company incorporated in South Carolina. The aggregate purchase price is subject to certain performance based earn-out targets set forth in the membership interest purchase agreement. Total purchase consideration was as follows:

---

| | |
|:---|:---|
|  | **Amount**<br>**USD** |
| Cash consideration  | $1000 |
| Contingent consideration <sup>(1)</sup> | 1826 |
| **Total purchase consideration** | $**2826** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company agreed to pay a cash earnout to the former sole shareholder of TBI based on the achievement against certain operational metrics in the 12-month and 24-month periods beginning on the closing date on which the TBI ceases to be subject to its S corporation election status under applicable law. The actual earnout is estimated to range between zero and $2,723 . The fair value of the earnout was included in the initial purchase consideration and will be revalued and recorded at each reporting date until the end of the earnout period as a fair value adjustment within "Revaluation of contingent liabilities" in the Company's consolidated statements of operations. As of June 30, 2025, the fair value of the earnout was $1,826 , of which $928 was included in "Accrued expenses and other current liabilities", and $898 was included in "Other non-current liabilities", on the Company's condensed consolidated balance sheets, respectively. The preliminary acquisition date fair value of the earnout is subject to subsequent measurement period adjustment as valuation is finalized. There are no deferred tax liabilities at acquisition as there is no difference between the tax and book basis of the contingent consideration.

As of June 30, 2025, $1,000 of total cash consideration has been paid.

The acquisition was accounted for as a business combination by applying the acquisition method. Accordingly, the acquired assets and liabilities were recorded at their fair value on the date of acquisition. Fair value of net assets, aside from intangible assets, are valued at net book value with no fair value adjustments identified. The purchase price allocation on intangible assets was based on a valuation analysis that utilized and considered generally accepted valuation methodologies such as the income and cost approach. The Company engaged a third-party valuation firm to assist with the valuation of assets acquired and liabilities assumed in this business combination. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, and the assumptions and estimates used to determine the cash inflows and outflows. The Company determine discount rates to be used based on the risk inherent in the related activity's current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period.

The following table summarizes the fair value assigned to the assets acquired and liabilities assumed at the acquisition date. These amounts reflect various preliminary fair value estimates and assumptions and are subject to change within the measurement period as valuations are finalized. The primary area of preliminary purchase price allocation subject to change relates to the valuation of intangible assets and residual goodwill.

---

| | |
|:---|:---|
|  | **Amount**<br>**USD** |
| Cash consideration | $1000 |
| Contingent consideration | 1826 |
| **Total purchase consideration** | $**2826** |
| Cash acquired from acquisition of TBI | $6 |
| Intangible assets - licenses and carrier appointments <sup>(1)</sup> | 478 |
| Intangible assets - customer relationship <sup>(1)</sup> | 203 |
| Intangible assets - non-compete agreement <sup>(1)</sup> | 49 |
| **Total Identifiable Net Assets**  | **736** |
| **Goodwill** <sup>(2)</sup> | $**2090** |

---

[**Table of Contents**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;(1) The intangible assets, including the licenses and carrier appointments, customer relationship and non-compete agreement. The licenses and carrier appointments and customer relationship were valued using the multi-period excess earning method under income approach, which represents the excessive earnings generated by the asset that remains after a deduction for a return on other contributory assets. The non-compete agreement was valued using discounted incremental cash flow method under income approach, which represents the difference between the value of the business with and without the intangible asset. The estimated life of licenses and carrier appointments, customer relationship and non-compete agreement are indefinite, seven and three years , respectively. The screen test was not met, as the fair value was distributed across multiple distinct intangible assets rather than concentrated in a single identifiable asset or group of similar identifiable assets. There are no deferred tax assets at acquisition as there is no difference between the tax and book basis of the intangibles assets.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Goodwill arose in the acquisition of TBI was attributable to the benefit of expected synergies, revenue growth, future market development and the assembled workforce as of the date of acquisition and assigned to the TP segment as a separate TPI reporting unit. These benefits are not recognized separately from goodwill because they do not meet the recognition criteria for identifiable intangible assets. Goodwill arising from the acquisition is not expected to be deductible for tax purposes.

The net revenue and net loss of TBI since the acquisition date and that were included in the Company's consolidated statements of operations for the six months ended June 30, 2025 are $21 and $465, respectively.

Pro forma results of operations for the TBI acquisition have not been presented as they are not material to the Company's consolidated results.

#### 5 . LONG-TERM INVESTMENTS
Long-term investments consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  | **As of December 31,** <br>**2024** | **As of June 30,** <br>**2025** |
| **Equity method investments:** |  |  |  |
| Fundrise, L.P. | (i) | $13129 | $13374 |
| Other | (ii) |  |  |
| Total equity method investments |  | $13129 | $13374 |
| **Equity investment with readily determinable fair values:** |  |  |  |
| Kaixin Auto Holdings |  | $57 | $36 |
| **Equity investment without readily determinable fair values:** |  |  |  |
| Suzhou Youge Interconnection Venture Capital Center | (iii) | $— | $— |
| Other |  | 100 | 100 |
| Total equity investments without readily determinable fair values |  | $100 | $100 |
| Total long-term investments |  | $13286 | $13510 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) In October 2014, the Company entered into an agreement to purchase limited partnership interest of Fundrise, L.P. for a total consideration of $10,000 . The Company held 98.04% equity interest as limited partner as of December 31, 2024 and June 30, 2025 and recognized its share of income of $193 and $147 for the three months ended June 30, 2024 and 2025, and share of income of $290 and $245 for the six months ended June 30, 2024 and 2025, respectively.

For the three and six months ended June 30, 2025, Fundrise, L.P. reported revenue of $161 and $324, and operating income of $150 and $303, respectively. The net income of Fundrise, L.P. for the six months ended June 30, 2024 and 2025 was $296 and $250, of which $290 and $245 were attributable to the Company, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) In May 2014, the Company entered into an agreement to purchase limited partnership interest of Beijing Fenghou Tianyuan Investment and Management Center L.P. for a total consideration of $1,385 (RMB 10 million). The Company held 12.38% partnership interest as of December 31, 2024 and June 30, 2025 and did no t recognize share of income for the three and six months ended June 30, 2024 and 2025, respectively. For the three and six months ended June 30, 2024, the Company recognized an impairment loss of nil and $588 , respectively, and no impairment loss for the same periods in fiscal year 2025.

[**Table of Contents**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;(iii) In June 2016, the Company entered into an agreement to purchase limited partnership interest of Suzhou Youge for a total consideration of $697 (RMB 5 million) and held 2.98 % equity interest. The Company acts as "General Partner" of Suzhou Youge, L.P. As of December 31, 2024, the Company recognized full impairment on this long-term investment.

**6.** **OPERATING LEASES**

The Company leases its facilities and offices under non-cancellable operating lease agreements. These leases are renewable upon negotiation.

For the three months ended June 30, 2024 and 2025, cash paid for amounts included in the measurement of lease liabilities was $122 and $217, respectively. For the six months ended June 30, 2024 and 2025, cash paid for amounts included in the measurement of lease liabilities was $245 and $423, respectively.

The operating lease cost and short-term lease cost for the three and six months ended June 30, 2024 and 2025 were as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| Selling expenses | $21 | $24 | $39 | $47 |
| Research and development expenses | 73 | 207 | 194 | 412 |
| General and administrative expenses | 14 | 22 | 34 | 42 |
| **Total operating lease cost** | **108** | **253** | **267** | **501** |
| Short-term lease cost | 76 | 21 | 85 | 24 |
| **Total lease cost** | $**184** | $**274** | $**352** | $**525** |

---

The weighted average remaining lease term as of December 31, 2024 and June 30, 2025 was 3.73 and 3.32 years, respectively, and the weighted average discount rate of the operating leases was 5.08% and 4.15%, respectively.

Maturities of lease liabilities as of June 30, 2025 were as follows (in thousands):

---

| | |
|:---|:---|
|  | **Operating Lease** |
| Remainder of 2025 | $322 |
| 2026 | 503 |
| 2027 | 304 |
| 2028 | 49 |
| 2029 | 42 |
| After | 136 |
| Total undiscounted lease payment | 1356 |
| Less: Imputed interest | (82) |
| **Present value of lease liabilities** | $**1274** |

---

**7.** ORDINARY SHARES

*Exercise of share options and restricted shares vesting*

During the three months ended June 30, 2024 and 2025, 5,207,580 and 251,370 Class A ordinary shares, respectively, were issued due to the exercise of share options or vesting of restricted share units under share-based compensation. During the six months ended June 30, 2024 and 2025, 101,311,920 and 507,915 Class A ordinary shares, respectively, were issued due to the exercise of share options or vesting of restricted share units under share - based compensation.

On March 5, 2025, the Company's board of directors declared a special cash dividend of US$0.01346 per ordinary share, or US$0.6057 per ADS, to all holders of ordinary shares (including those in the form of ADSs) of record as of 5:00 p.m. Eastern Time on March 17, 2025. The aggregate amount of the cash dividend was approximately $11 million. The special cash dividend was paid from the Company's current cash position on March 27, 2025.

[**Table of Contents**](#TOC)

*Stock Repurchase from public market*

On November 7, 2022, the Company's Board of Directors (the "Board") authorized the repurchase of up to an aggregate of $10.0 million of the Company's Class A ordinary shares, par value $0.001 per share, to be executed from time to time in open market transactions effected through a broker at prevailing market prices under ordinary principles of best execution within one year after commencement (the "Stock Repurchase Program"). The Stock Repurchase Program took effect on January 16, 2023. On October 13, 2023, the Board approved an extension and extra funding of the existing Stock Repurchase Program whereby the expiration date was extended to December 31, 2024 and the authorized repurchase amount was increased from $10.0 million to $15.0 million. On November 18, 2024, the Board approved an extension of the existing Stock Repurchase Program until December 31, 2026.

The Stock Repurchase Program does not obligate the Company to repurchase any amount of the Company's ordinary shares, and may be modified, extended, suspended, or discontinued at any time. The timing and amount of repurchases will be determined by the Company's management based on a variety of factors such as the market price of the Company's ordinary shares, the Company's corporate cash requirements, and overall market conditions. The Stock Repurchase Program is subject to applicable legal requirements, including federal and state securities laws.

For the three months ended June 30, 2024 and 2025, the Company repurchased 53,433 and 27,459 ADSs, representing 2,404,485 and 1,235,655 Class A ordinary shares (each ADS is equivalent to 45 Ordinary Shares) for $32 and $29 on the open market, at a weighted average price of $0.61 and $1.03 per ADS, respectively. For the six months ended June 30, 2024 and 2025, the Company repurchased 231,019 and 61,179 ADSs, representing 10,395,855 and 2,753,055 Class A ordinary shares (each ADS is equivalent to 45 Ordinary Shares) for $187 and $86 on the open market, at a weighted average price of $0.81 and $1.38 per ADS, respectively.

The following table sets forth repurchase activity under the Stock Repurchase Program for the six months ended June 30, 2025 (amount in thousands, except share and per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Total Number of**<br>**ADSs Purchased** | <br><br>**Average Price Paid**<br>**Per ADS** | **Approximate Dollar**<br>**Value of ADSs That**<br>**Purchased as**<br>**Part of Publicly**<br>**Announced**<br>**Programs** | &nbsp;&nbsp;&nbsp;&nbsp;<br>**Approximate Dollar**<br>**Value of ADSs That**<br>**May Yet Be**<br>**Purchased Under**<br>**the Programs** |
| **Periods** |  |  |  |  |
| **January 2025** |  |  |  |  |
| Open market purchases | 29667 | 1.71 | 50 | 3104 |
| **February 2025** |  |  |  |  |
| Open market purchases | 4053 | 1.76 | 7 | 3097 |
| **May 2025** |  |  |  |  |
| Open market purchases | 7066 | $1.02 | $7 | $3090 |
| **June 2025** |  |  |  |  |
| Open market purchases | 20393 | $1.06 | $22 | $3068 |
| **Total** | **61179** |  | $**86** |  |

---

*Change of Shares withheld for payroll taxes on Restricted Stock Units ("RSU") into treasury stock*

The Company entered into an employee stock option service agreement on January 1, 2021, (the "ESOP Agreement") with The Core Group ("Core"), pursuant to which Core withheld ADSs for the payroll tax liabilities from the employees. The Company used excess cash on hand to remit payroll tax liabilities on behalf of optionees. In fiscal year 2024,due to the Stock Repurchase Program, the Company decided to redesignate the ADSs withheld for the payroll taxes into treasury stock, which were 173,548 ADSs in the aggregate, representing 7,809,660 Class A ordinary shares (each ADS is equivalent to 45 Ordinary Shares) for $674, at a weighted average price of $3.89 per ADS. In March, 2025, the Company recorded ADSs withheld for the payroll taxes as treasury stock, which were 215 ADSs in the aggregate, representing 9,675 Class A ordinary shares (each ADS is equivalent to 45 Ordinary Shares) for $0.3, at a weighted average price of $1.53 per ADS. In June, 2025, the Company recorded ADSs withheld for the payroll taxes as treasury stock, which were 210 ADSs in the aggregate, representing 9,450 Class A ordinary shares (each ADS is equivalent to 45 Ordinary Shares) for $0.3, at a weighted average price of $1.46 per ADS.

[**Table of Contents**](#TOC)

*True-up adjustment of the Class A ordinary shares*

The number of Class A Ordinary shares issued and outstanding has been adjusted to reflect the true-up provisions based on the shares number recorded by the third-party transfer agent. The true-up adjustment resulted in an increase of 15,418,167 Class A ordinary shares, bringing the total number of Class A ordinary shares outstanding to 646,048,168 as of June 30, 2025. This adjustment is immaterial to the financial statement presentation of the Company's basic and diluted net (loss) income per share calculations.

#### 8 . SHARE-BASED COMPENSATION
***Moatable, Inc. Stock options***

The following table summarizes information with respect to share options outstanding as of June 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options exercisable** | **Options exercisable** | **Options exercisable** | **Options exercisable** |
| <br>**Range of exercise prices** | <br>**Number** <br>**outstanding** | **Weighted** <br>**average**<br>**remaining** <br>**contractual**<br>**life** | <br>**Weighted**<br> **average** <br>**exercise** <br>**price** | <br>**Weighted** <br>**average** <br>**intrinsic** <br>**value** | <br>**Number of**<br>**exercisable** | **Weighted**<br>**average** <br>**remaining** <br>**contractual** <br>**life** | <br>**Weighted**<br> **average** <br>**exercise** <br>**price** | <br>**Weighted**<br> **average** <br>**intrinsic** <br>**value** |
| $0.01 | 11250000 | 8.99 | $0.01 | $0.01 | 3046875 | 8.99 | $0.01 | $0.01 |
|  | 11250000 |  |  | $0.01 | 3046875 |  |  | $0.01 |

---

---

| | | |
|:---|:---|:---|
|  | <br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**exercise**<br>**price** |
| Balance, December 31, 2024 | 11250000 | $0.01 |
| Balance, June 30, 2025 | 11250000 | $0.01 |
| Exercisable, June 30, 2025 | 3046875 | $0.01 |
| Expected to vest, June 30, 2025 | 8203125 | $0.01 |

---

Share-based compensation is based on the fair value on the grant dates or the modification date over the requisite service period of award using the straight-line method.

For employee stock options, the Company recorded share-based compensation of nil and $10 for the three months ended June 30, 2024 and 2025, and nil and $20 for the six months ended June 30, 2024 and 2025, respectively, based on the fair value on the grant dates over the requisite service period of award using the straight-line method.

For the three and six months ended June 30, 2024 and 2025, there was no share-based compensation recorded for non-employee options.

As of June 30, 2025, there was $119 unrecognized share-based compensation expense relating to share options. This amount is expected to be recognized over a weighted - average vesting period of 2.92 years.

[**Table of Contents**](#TOC)

#### Moatable, Inc. Nonvested restricted shares
A summary of the nonvested restricted shares activity is as follows:

---

| | | |
|:---|:---|:---|
|  | <br>**Nonvested**<br>**restricted**<br>**shares** | **Weighted**<br>**average fair**<br>**value**<br>**per ordinary**<br>**share at the**<br>**grant dates** |
| Outstanding as of December 31, 2024 | 2493075 | $0.03 |
| Vested | (507915) | $0.03 |
| Forfeited | (30) | $0.10 |
| Outstanding as of June 30, 2025 | 1985130 | $0.03 |

---

The Company recorded compensation expenses based on the fair value of nonvested restricted shares on the grant dates over the requisite service period of award using the straight-line vesting attribution method. The fair value of the nonvested restricted shares on the grant date was the closing market price of the ordinary shares as of the date. The Company recorded compensation expenses related to nonvested restricted shares of $542 and $20 for the three months ended June 30, 2024 and 2025, and $1,097 and $38 for the six months ended June 30, 2024 and 2025, respectively.

Total unrecognized compensation expense amounting to $63 related to nonvested restricted shares granted as of June 30, 2025. The expense is expected to be recognized over a weighted-average period of 1.86 years.

#### Equity Incentive Plan of Lofty, Inc. and Trucker Path, Inc.
On July 13, 2020, Lofty, Inc. and Trucker Path, Inc. adopted equity incentive plans, whereby, after adjustment for a 1:200 reverse stock split, 150,000 ordinary shares of Lofty, Inc. ("2020 Lofty Plan") and 150,000 ordinary shares of Trucker Path, Inc. ("2020 Trucker Path Plan") are made available for future grant for employees or consultants of Lofty and Trucker Path, respectively, either in the form of incentive share options or restricted shares. On November 4, 2021, Lofty, Inc. and Trucker Path, Inc. approved the adoption of their 2021 equity incentive plans, whereby 25,000 ordinary shares of Lofty, Inc. ("2021 Lofty Plan") and 25,000 ordinary shares of Trucker Path, Inc. ("2021 Trucker Path Plan") are made available for future grant for employees or consultants of Lofty and Trucker Path, respectively, either in the form of incentive share options or restricted shares.

The term of the options may not exceed ten years from the date of the grant. The awards under the above plans are subject to vesting schedules ranging from immediately upon grant to four years subsequent to grant date.

For the three and six months ended June 30, 2024, Lofty granted an aggregate of 7,800 options under 2021 Lofty Plan to Joseph Chen, the chairman and the chief executive of the Company, and Grant Moon, a director of the Company, as compensation for their service. The weighted average grant-date fair value of the options granted during the period presented was $25.20 per option. 25% of these options will vest on the yearly anniversary of the vesting commencement date for a total of four years, subject to the option holder's continuous service as of each such date.

For the three and six months ended June 30, 2024, Trucker Path granted an aggregate of 7,800 options under 2021 Trucker Path Plan to Joseph Chen, the chairman and the chief executive of the Company, and Grant Moon, a director of the Company, as compensation for their service. The weighted average grant-date fair value of the options granted during the period presented was $14.77 per option. 25% of these options will vest on the yearly anniversary of the vesting commencement date for a total of four years, subject to the option holder's continuous service as of each such date.

[**Table of Contents**](#TOC)

For the three and six months ended June 30, 2025, no options were newly granted by Lofty and Trucker Path under 2020 Lofty Plan, 2020 Trucker Path Plan, 2021 Lofty Plan and 2021 Trucker Path Plan.

The Company recorded share-based compensation expense for Lofty and Trucker Path for the three and six months ended June 30, 2024 and 2025 as follows, based on the fair value on the grant dates over the requisite service period of award using the straight-line method (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| **Lofty** | $47 | $98 | $93 | $136 |
| **Trucker Path** | $64 | $117 | $135 | $180 |

---

As of June 30, 2025 there were $280 and $344 unrecognized share-based compensation expense relating to share options of Lofty Plan and Trucker Path Plan, respectively. This amount is expected to be recognized over a weighted-average vesting period of 2.48 and 2.14 years for Lofty Plan and Trucker Path Plan, respectively.

The following table summarizes information with respect to share options outstanding of Lofty as of June 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options exercisable** | **Options exercisable** | **Options exercisable** | **Options exercisable** |
| <br>**Range of**<br>**exercise prices** | <br>**Number**<br>**outstanding** | **Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**life** | <br>**Weighted**<br>**average**<br>**exercise**<br>**price** | <br>**Weighted**<br>**average**<br>**intrinsic**<br>**value** | <br>**Number of**<br>**exercisable** | **Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**life** | <br>**Weighted**<br>**average**<br>**exercise**<br>**price** | <br>**Weighted**<br>**average**<br>**intrinsic**<br>**value** |
| $6.00, 33.48 and 73.35 | 46554 | 6.59 | $30.61 | $35.11 | 37457 | 6.12 | $28.28 | $41.51 |
|  | 46554 |  |  | $35.11 | 37457 |  |  | $41.51 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**exercise**<br>**price** | **Weighted**<br>**average**<br>**grant date**<br>**fair value** |
| Balance, December 31, 2024 | 46748 | $30.79 | $18.21 |
| Forfeited | (194) | $73.35 | $33.48 |
| Balance, June 30, 2025 | 46554 | $30.61 | $18.15 |
| Exercisable, June 30, 2025 | 37457 | $28.28 |  |
| Expected to vest, June 30, 2025 | 9097 | $40.19 |  |

---

The following table summarizes information with respect to share options outstanding of Trucker Path as of June 30, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options outstanding** | **Options exercisable** | **Options exercisable** | **Options exercisable** | **Options exercisable** |
| <br>**Range of**<br>**exercise prices** | <br>**Number**<br>**outstanding** | **Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**life** | <br>**Weighted**<br>**average**<br>**exercise**<br>**price** | <br>**Weighted**<br>**average**<br>**intrinsic value** | <br>**Number of**<br>**exercisable** | **Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**life** | <br>**Weighted**<br>**average**<br>**exercise**<br>**price** | <br>**Weighted**<br>**average**<br>**intrinsic**<br>**value** |
| $4.00, 64.70 and 133.00 | 49015 | 6.66 | $57.96 | $34.50 | 39494 | 6.17 | $52.95 | $42.82 |
|  | 49015 |  |  | $34.50 | 39494 |  |  | $42.82 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Number of**<br>**shares** | **Weighted**<br>**average**<br>**exercise**<br>**price** | **Weighted**<br>**average**<br>**grant date**<br>**fair value** |
| Balance, December 31, 2024 | 49015 | $57.96 | $28.23 |
| Balance, June 30, 2025 | 49015 | $57.96 | $28.23 |
| Exercisable, June 30, 2025 | 39494 | $52.95 |  |
| Expected to vest, June 30, 2025 | 9521 | $78.55 |  |

---

[**Table of Contents**](#TOC)

The total amount of share-based compensation expense for options and nonvested restricted shares of the Company, Lofty and Trucker Path, attributable to selling and marketing, research and development, general and administrative expenses are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| Selling and marketing | $41 | $24 | $82 | $48 |
| Research and development | 206 | 18 | 412 | 39 |
| General and administrative | 406 | 203 | 831 | 287 |
| **Total share-based compensation expense** | $**653** | $**245** | $**1325** | $**374** |

---

There was no income tax benefit recognized in the statements of operations for share-based compensation for the three and six months ended June 30, 2024 and 2025.

**9. RELATED PARTY BALANCES AND TRANSACTIONS**

The table below sets forth the related party and their relationships with the Company:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Name** |  | **Relationship** |
| (a) |  | Infinities Technology (Cayman) Holding Limited ("Infinities") |  | Equity investment of the Company |
| (b) |  | Oak Pacific Investment ("OPI") and its subsidiaries  |  | An entity controlled together by chief executive officer and one of our independent board member, and its subsidiaries. |

---

**Amounts due from related party**

As of December 31, 2024 and June 30, 2025 amounts due from related party was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2024** | **As of June 30, 2025** |
| Infinities<br> (i) | 650 | 661 |
| OPI and its subsidiaries | 13 | 11 |
| **Total** | $**663** | $**672** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) The balance represents the receivable from Infinities in connection with the disposition of the SNS business. In November 2018, the Company's Board of Directors approved a proposal for the sale of its SNS Business to Beijing Infinities for a combined consideration of $20,000 in cash and $40,000 in the form of Beijing Infinities shares to be issued to the Company. The Company collected $6,866 in 2019, however, by December 31, 2019, Beijing Infinities failed to make payments under the agreed extended repayment plan. Based on assessment of the collectability, the Company provided an allowance of $12,408 for the receivable. Additionally, the shares receivable in the form of Infinites Technology (Cayman) Holding Limited, which is the holding company of Beijing Infinities, were received as of December 31, 2020 and were recorded as long-term investments in the consolidated balance sheets as of December 31, 2020.

**Amounts due to related party**

As of December 31, 2024 and June 30, 2025 amounts due to related party was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2024** | **As of June 30, 2025** |
| Infinities | $623 | $635 |
| **Total** | $**623** | $**635** |

---

[**Table of Contents**](#TOC)

#### 10 . SEGMENT INFORMATION and GEOGRAPHIC INFORMATION
The Company is engaged in providing SaaS platforms to customers primarily located in the United States. The Company's operations are conducted in two reportable segments: Lofty and Trucker Path. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources.

The Lofty segment includes the Company's all-in-one real estate sales acceleration and client lifecycle management platform. The Trucker Path segment includes the Company's driver-centric online transportation management platform. The Company's operating structure also includes Corporate, which is a center focusing on strategic initiatives, policy, governance and the scaling of global operations, and a platform services organization supporting operating units, global marketing category leadership teams and the center by providing efficient and scaled global services and capabilities, including, but not limited to, transactional work, data management, consumer analytics, digital commerce and social/digital hubs.

***Chief Operating Decision Maker and Method of Determining Segment Income or Loss***

The Company's CODM is Joseph Chen, the chairman and the chief executive of the Company. The CODM assesses the performance of operating segments primarily based on net operating revenues and operating income (loss). These metrics guide strategic operating decisions and resource allocation across the Company. Segment operating income is calculated consistently with the methodology used for consolidated operating income. Decisions made at this level encompass, but are not limited to, setting annual business plan targets and allocating capital expenditures, all of which are aligned with the Company's long-term growth objectives. Income taxes and certain treasury-related items, such as interest income and interest expense, are managed globally within Corporate. Information about total assets by segment is not disclosed because such information is not regularly provided to, or used by, the CODM.

[**Table of Contents**](#TOC)

The Company measures the results of its segments using, among other measures, each segment's revenue, cost of sales and operating expenses. Information for the Company's segments and Corporate, is provided in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Lofty** | **Trucker Path** | **The Corporate** | **Eliminations** | **Consolidated** |
| **For the three months ended June 30, 2025** |  |  |  |  |  |
| Revenues: |  |  |  |  |  |
| Subscription services | $8595 | $8823 | $— | $— | $17418 |
| Advertising services | 410 | 468 |  |  | 878 |
| Other Saas services | 890 | 51 |  |  | 941 |
| Other services |  |  | 154 | (115) | 39 |
| **Total revenues** | **9895** | **9342** | **154** | **(115)** | **19276** |
| Cost | 2132 | 2820 | 31 |  | 4983 |
| Gross profit | 7763 | 6522 | 123 | (115) | 14293 |
| Operating expenses: |  |  |  |  |  |
| Selling and marketing expense | 3130 | 1356 | 57 | (103) | 4440 |
| Research and development expense | 3205 | 2789 | 85 | (10) | 6069 |
| General and administrative expense | 1876 | 933 | 531 | (2) | 3338 |
| Total operating expenses | 8211 | 5078 | 673 | (115) | 13847 |
| **(Loss) Income from operations** | $**(448)** | $**1444** | $**(550)** | $**—** | $**446** |
| Other expense, net |  |  |  |  | (33) |
| Interest income |  |  |  |  | 171 |
| Income before provision of income tax and loss in equity method investments and non-controlling interest, net of tax |  |  |  |  | $584 |
| Other segment information: |  |  |  |  |  |
| Depreciation and amortization | $114 | $15 | $30 | $— | $159 |
| Goodwill | 4995 |  |  |  | 4995 |
| Intangible assets, net | 1492 | 1088 | 16 |  | 2596 |
| **For the three months ended June 30, 2024** |  |  |  |  |  |
| Revenues: |  |  |  |  |  |
| Subscription services | $8045 | $6234 | $— | $— | $14279 |
| Advertising services | 375 | 476 |  |  | 851 |
| Other Saas services | 71 | 48 |  |  | 119 |
| Other services |  |  | 155 | (115) | 40 |
| Total revenues | **8491** | **6758** | **155** | **(115)** | **15289** |
| Cost | 1382 | 2082 | 36 |  | 3500 |
| Gross profit | 7109 | 4676 | 119 | (115) | 11789 |
| Operating expenses: |  |  |  |  |  |
| Selling and marketing expense | 3879 | 1017 | 97 | (107) | 4886 |
| Research and development expense | 2260 | 2168 | 134 | (7) | 4555 |
| General and administrative expense | 1289 | 820 | 1028 | (1) | 3136 |
| Total operating expenses | **7428** | **4005** | **1259** | **(115)** | **12577** |
| (Loss) Income from operations | $**(319)** | $**671** | $**(1140)** | $**—** | $**(788)** |
| Other expense, net |  |  |  |  | (52) |
| Loss from fair value change of a long-term investment |  |  |  |  | (133) |
| Interest income |  |  |  |  | 409 |
| Loss before provision of income tax and loss in equity method investments and non-controlling interest, net of tax |  |  |  |  | $(564) |
| Other segment information: |  |  |  |  |  |
| Depreciation and amortization | $37 | $13 | $33 | $— | $83 |
| Intangible assets, net | 54 | 369 | 25 |  | 448 |

---

[**Table of Contents**](#TOC)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Lofty** | **Trucker Path** | **The Corporate** | **Eliminations** | **Consolidated** |
| **For the six months ended June 30, 2025** |  |  |  |  |  |
| Revenues: |  |  |  |  |  |
| Subscription services | $17156 | $16599 | $— | $— | $33755 |
| Advertising services | 805 | 796 |  |  | 1601 |
| Other Saas services | 1745 | 94 |  |  | 1839 |
| Other services |  |  | 311 | (230) | 81 |
| Total revenues | **19706** | **17489** | **311** | **(230)** | **37276** |
| Cost | 4195 | 5304 | 70 |  | 9569 |
| Gross profit | 15511 | 12185 | 241 | (230) | 27707 |
| Operating expenses: |  |  |  |  |  |
| Selling and marketing expense | 7715 | 2556 | 102 | (210) | 10163 |
| Research and development expense | 6121 | 5629 | 97 | (17) | 11830 |
| General and administrative expense | 3567 | 1614 | 1064 | (3) | 6242 |
| Total operating expenses | 17403 | 9799 | 1263 | (230) | 28235 |
| (Loss) Income from operations | $**(1892)** | $**2386** | $**(1022)** | $**—** | $**(528)** |
| Other income, net |  |  |  |  | 33 |
| Loss from fair value change of a long-term investment |  |  |  |  | (21) |
| Interest income |  |  |  |  | 453 |
| Income before provision of income tax and loss in equity method investments and non-controlling interest, net of tax |  |  |  |  | $(63) |
| Other segment information: |  |  |  |  |  |
| Depreciation and amortization | $256 | $28 | $61 | $— | $345 |
| Goodwill | 4995 |  |  |  | 4995 |
| Intangible assets, net | 1492 | 1088 | 16 |  | 2596 |
| **For the six months ended June 30, 2024** |  |  |  |  |  |
| Revenues: |  |  |  |  |  |
| Subscription services | $15559 | $11872 | $— | $— | $27431 |
| Advertising services | 734 | 881 |  |  | 1615 |
| Other Saas services | 147 | 38 |  |  | 185 |
| Other services |  |  | 311 | (230) | 81 |
| Total revenues | **16440** | **12791** | **311** | **(230)** | **29312** |
| Cost | 2769 | 3975 | 72 |  | 6816 |
| Gross profit | 13671 | 8816 | 239 | (230) | 22496 |
| Operating expenses: |  |  |  |  |  |
| Selling and marketing expense | 7045 | 1976 | 155 | (214) | 8962 |
| Research and development expense | 4371 | 4299 | 357 | (14) | 9013 |
| General and administrative expense | 2549 | 1510 | 2477 | (2) | 6534 |
| Impairment of intangible assets | 207 |  |  |  | 207 |
| Total operating expenses | **14172** | **7785** | **2989** | **(230)** | **24716** |
| (Loss) Income from operations | $**(501)** | $**1031** | $**(2750)** | $**—** | $**(2220)** |
| Other expense, net |  |  |  |  | (18) |
| Loss from fair value change of a long-term investment |  |  |  |  | (1621) |
| Interest income |  |  |  |  | 771 |
| Loss before provision of income tax and loss in equity method investments and non-controlling interest, net of tax |  |  |  |  | $(3088) |
| Other segment information: |  |  |  |  |  |
| Depreciation and amortization | $118 | $25 | $66 | $— | $209 |
| Intangible assets, net | 54 | 369 | 25 |  | 448 |

---

[**Table of Contents**](#TOC)

***Geographic Data***

The following table provides information related to the total revenues:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| United States | $14227 | $17162 | $27257 | $33182 |
| International | 1062 | 2114 | 2055 | 4094 |
| **Total operating revenues** | $**15289** | $**19276** | $**29312** | $**37276** |

---

The following table provides information related to the long-lived assets, net:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** <br>**2024** | **As of June 30,** <br>**2025** |
| United States | $7281 | $7793 |
| International | 2301 | 2417 |
| **Long-lived assets, net** | $**9582** | $**10210** |

---

#### 11 . STATUTORY RESERVE AND RESTRICTED NET ASSETS
In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, the Company's subsidiaries and VIE entities located in the PRC, being foreign invested enterprises established in the PRC, are required to provide for certain statutory reserves. These statutory reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund or discretionary reserve fund, and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires a minimum annual appropriation of 10% of after-tax profit (as determined under accounting principles generally accepted in China at each year-end); the other fund appropriations are at the subsidiaries' or the affiliated PRC entities' discretion. These statutory reserve funds can only be used for specific purposes of enterprise expansion, staff bonus and welfare, and are not distributable as cash dividends except in the event of liquidation of the Company's subsidiaries, the Company's affiliated PRC entities and their respective subsidiaries. The Company's subsidiaries and VIE entities are required to allocate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital.

Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of each of the Company's subsidiaries. The appropriation to these reserves by the Company's PRC subsidiaries was nil for the three and six months ended June 30, 2024 and 2025, respectively.

As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital and the statutory reserves of the Company's PRC subsidiaries and VIE entities. The aggregate amounts of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries and VIE entities in the Company not available for distribution was $8,455 and $8,271 as of December 31, 2024 and June 30, 2025, respectively.

[**Table of Contents**](#TOC)

**12. INCOME TAXES**

Utilization of the federal and state net operating losses may be subject to certain annual limitations under IRC Section 382 due to the "change in ownership" provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company has a full valuation allowance against U.S. federal and state net operating losses.

**13.** **COMMITMENTS AND CONTINGENCIES**

***Contingencies***

In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of June 30, 2025 and through the issuance date of these condensed consolidated financial statements.

**14.** **SUBSEQUENT EVENTS**

On July 18, 2025 the Company reduced the $5 million restricted cash to $1 million which corresponded to lowering its deductible/retention on its directors and officers' insurance coverage.

The Company has evaluated subsequent events through August 15, 2025, the date of issuance of the condensed consolidated financial statements, and noted that there are no other subsequent events that would require recognition or disclosure in the condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

Please read the following discussion and analysis of our financial condition and results of operations together with "Note About Forward-Looking Statements" and our consolidated financial statements and related notes included under Item 1 of this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including Part I, Item 1A "Risk Factors."

***Overview***

Our business model has been evolving continuously since our initial public offering in May 2011. At the time of our initial public offering, we were primarily a social networking service platform, and we had a number of ancillary businesses that were intended to monetize that platform. We gradually disposed of most of those ancillary businesses in the years that followed our initial public offering.

Currently, we operate two SaaS businesses, Lofty and Trucker Path, both of which are considered reportable segments. Lofty offers an all-in-one real estate sales acceleration and client lifecycle management platform that allows real estate professionals to obtain and nurture leads, close transactions, and retain their clients. Trucker Path is a driver-centric online transportation management platform whose mission is to make freight transportation fast, reliable, and efficient. Trucker Path provides trip planning, navigation, freight sourcing, a market place that offers goods and services truckers use to operate their businesses and helps connect qualified brokers and carriers to expand their reach and initiate and complete transactions easily and efficiently. The majority of our revenues are generated by our SaaS businesses. Our SaaS businesses currently generate the vast majority of their revenue from the U.S. market.

Our total revenues increased from $15.3 million for the three months ended June 30, 2024 to $19.3 million for the same period in 2025, and net loss of $0.5 million for the three months ended June 30, 2024 turned into net income of $0.4 million for the same period in 2025. For the six months ended June 30, 2024, our total revenues increased from $29.3 million to $37.3 million in the same period in 2025, and net loss for the six months ended June 30, 2024 was $3.6 million and $0.7 million for the same period in 2025. Net income for the three months ended June, 2025 was driven primarily by income from operations of $0.4 million and interest income of $0.2 million, partially offset by income tax expenses of $0.3 million.

Operating loss of $0.8 million for the three months ended June 30, 2024 turned into an operating income of $0.4 million for the three months ended June 30, 2025, respectively, and loss from operations improved from $2.2 million to $0.5 million for the six months ended June 30, 2024 and 2025, respectively.

***Components of Results of Operations***

**Revenue**

We derive substantially all of our revenues from SaaS subscription services, advertising services, and other related services. We recognize our revenues over the life of the SaaS subscriptions and net of business taxes or value added tax, as applicable. Timing of revenue recognition may differ from the timing of invoicing to customers. Deferred revenue mainly consists of payments received from customers related to unsatisfied performance obligations for SaaS subscription services and advertising services. Our total deferred revenue was $4.6 million and $4.8 million as of December 31, 2024 and June 30, 2025, respectively, most of which is expected to be recognized as revenue within one year.

[**Table of Contents**](#TOC)

The following table sets forth the principal components of our revenues (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
|  | **(In thousands of US$)** | **(In thousands of US$)** | **(In thousands of US$)** | **(In thousands of US$)** |
| **Lofty** |  |  |  |  |
| Subscription services | $8045 | $8595 | $15559 | $17156 |
| Advertising services | 375 | 410 | 734 | 805 |
| Other SaaS services | 71 | 890 | 147 | 1745 |
| **Subtotal** | $**8491** | $**9895** | $**16440** | $**19706** |
| **Trucker Path** |  |  |  |  |
| Subscription services | $6234 | $8823 | $11872 | $16599 |
| Advertising services | 476 | 468 | 881 | 796 |
| Other SaaS services | 48 | 51 | 38 | 94 |
| **Subtotal** | $**6758** | $**9342** | $**12791** | $**17489** |
| **Other Operations** |  |  |  |  |
| Other services | $40 | $39 | $81 | $81 |
| **Total revenues** | $**15289** | $**19276** | $**29312** | $**37276** |

---

**SaaS Revenue**

Our subscription revenues are derived primarily from platform services provided by Lofty and Trucker Path. Our revenues from advertising services are derived primarily from lead generation and print advertising services provided by Lofty and point-of-interest and banner advertising services provided by Trucker Path. Other SaaS revenue consists primarily of fuel program revenue from the Trucker Path segment and property management services from the Lofty segment.

**Other Services**

Our revenues from other services consist primarily of back-office services provided to Oak Pacific Investment.

**Cost of Revenues**

Cost of revenues consists primarily of Apple App Store and Google Play Store fees, cloud hosting services, merchant fees, and print services. The cost of revenues was $3.5 million and $5.0 million for the three months ended June 30, 2024 and 2025, respectively; and $6.8 million and $9.6 million for the six months ended June 30, 2024 and 2025, respectively.

**Operating Expenses**

Our operating expenses consist primarily of selling and marketing expenses, research and development expenses, and general and administrative expenses. The following table sets forth our operating expenses, both as dollar amounts and as percentages of our total revenues, for the periods indicated (in thousands).

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2024** | **2025** | **2025** | **2024** | **2024** | **2025** | **2025** |
|  | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** | **(in thousands of US$, except for percentages)** |
|  | **US$** | **%** | **US$** | **%** | **US$** | **%** | **US$** | **%** |
| **Operating expenses:** |  |  |  |  |  |  |  |  |
| Selling and marketing | $4886 | 32.0% | $4440 | 23.0% | $8962 | 30.6% | $10163 | 27.3% |
| Research and development | 4555 | 29.8% | 6069 | 31.5% | 9013 | 30.7% | 11830 | 31.7% |
| General and administrative | 3136 | 20.5% | 3338 | 17.3% | 6534 | 22.3% | 6242 | 16.7% |
| Impairment of intangible assets |  | —% |  | —% | 207 | 0.7% |  | —% |
| Total operating expenses | $12577 | 82.3% | $13847 | 71.8% | $24716 | 84.3% | $28235 | 75.7% |

---

Our selling and marketing expenses, research and development expenses, and general and administrative expenses include share-based compensation expenses of $0.7 million and $0.2 million for the three months ended June 30, 2024 and 2025, respectively; and $1.3 million and $0.4 million for the six months ended June 30, 2024 and 2025, respectively.

[**Table of Contents**](#TOC)

**Selling and Marketing Expenses**

Selling and marketing expenses consist primarily of salaries, benefits and commissions for our sales and marketing personnel, online advertising, and other advertising and promotion expenses. Our selling and marketing expenses may increase in the near term if we increase our headcount or promotion expenses for our SaaS businesses.

**Research and Development Expenses**

Research and development expenses consist primarily of salaries and benefits for research and development personnel. Our research and development expenses may increase in the near term on an absolute basis as we intend to hire additional research and development personnel to develop new features for our various SaaS services, invest in new SaaS products and services, improve the customer experience, and further improve our technology infrastructure.

**General and Administrative Expenses**

General and administrative expenses consist primarily of salaries and benefits for our general and administrative personnel, fees and expenses for third-party professional services. Our general and administrative expenses may increase in the future on an absolute basis as our SaaS businesses grow.

***Results of Operations***

**Comparison of the Three and Six months ended June 30, 2025 and 2024**

The following table sets forth a summary of our unaudited consolidated results of operations for the periods indicated (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,**  | **For the three months ended June 30,**  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** | **2024** | **2025** |
| Revenues | $15289 | $19276 | $29312 | $37276 |
| Cost of revenues | 3500 | 4983 | 6816 | 9569 |
| Operating expenses | 12577 | 13847 | 24716 | 28235 |
| (Loss) Income from operations | (788) | 446 | (2220) | (528) |
| Total other income (expenses), net | 224 | 138 | (868) | 465 |
| (Loss) Income before income taxes | (564) | 584 | (3088) | (63) |
| Income tax expenses | (121) | (296) | (236) | (841) |
| Impairment on and income (loss) in equity method investments, net of tax | 193 | 147 | (298) | 245 |
| Net (loss) income | $(492) | $435 | $(3622) | $(659) |

---

Our business has evolved rapidly in recent years. We believe that historical period-to-period comparisons of our results of operations may not be indicative of future performance.

**Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024**

**Revenues**

Our revenues increased by 26.1% from $15.3 million for the three months ended June 30, 2024 to $19.3 million for the same period in 2025. This increase was primarily due to the increase in revenue from our SaaS businesses.

● *Subscription Services*. **  Our revenue from subscription services increased by 21.7% from $14.3 million for the three months ended June 30, 2024 to $17.4 million for the same period in 2025. The increase was driven by expanded Trucker Path subscriber base and contnued growth in Lofty enterprise account base. The Company's paying subscriptions as of June 30, 2025 for Trucker Path increased to 144,800, by 30%, compared to June 30, 2024 paying subscriptions of 111,600. The Company's paying subscriptions as of June 30, 2025 for Lofty decreased to 3,900, by 5%, compared to June 30, 2024 paying subscriptions of 4,100. Purchased seats for Lofty, defined as eligible users on a paid subscription, increased to 85,600 as of June 30, 2025 from 78,500 as of June 30, 2024, an increase of 9%.

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● *Advertising Services.* Our revenue from advertising services stayed stable of $0.9 million for the three months ended June 30, 2024 and for the same period in 2025.

**Cost of revenues**

Our cost of revenues increased by 42.9% from $3.5 million for the three months ended June 30, 2024 to $5.0 million for the same period in 2025. This increase was primarily due to the increase of software expenses directly related to the cloud hosting services which provide a better user experience and the expansion of lower margin Lofty SaaS businesses.

**Gross Margins**

Our gross margin decreased 3.0% from 77.1% for the three months ended June 30, 2024 to 74.1% for the same period in 2025. The decrease was primarily due to increase in cost of service features provided within our real estate SaaS platform.

**Operating expenses**

Our operating expenses increased by 9.5% from $12.6 million for the three months ended June 30, 2024 to $13.8 million for the same period in 2025, primarily due to the increase of research and development expenses and general and administrative expenses.

● *Selling and marketing expenses.* Our selling and marketing expenses decreased by 10.2% from $4.9 million for the three months ended June 30, 2024 to $4.4 million for the same period in 2025. This decrease was primarily due to a lower sales tax expense since the company started charging sales tax to its clients in the second quarter of 2025.

● *Research and development expenses.* Our research and development expenses increased by 32.6% from $4.6 million for the three months ended June 30, 2024 to $6.1 million for the same period in 2025. This increase was primarily due to an increase in our research and development headcount for new projects, and partially offset by reduced share-based compensation expenses, which was substantially fully vested in fiscal year 2024.

● *General and administrative expenses.* Our general and administrative expenses increased by 6.5% from $3.1 million for the three months ended June 30, 2024 to $3.3 million for the same period in 2025. The increase was primarily due to an increase in headcount and higher professional service fees, partially offset by a decrease in share-based compensation and legal fees.

#### Loss from fair value change of a long-term investment
Loss from fair value change of a long-term investment was nil for the three months ended June 30, 2025, compared with $0.1 million for the same period in 2024. The loss from fair value change of a long-term investment represents the unrealized loss from reduction in quoted market price of ordinary shares of Kaixin, which is accounted for as an equity investment with readily determinable fair value.

**Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024**

**Revenues**

Our revenues increased by 27.3% from $29.3 million for the six months ended June 30, 2024 to $37.3 million for the same period in 2025. This increase was primarily due to the increase in revenue from our SaaS businesses.

● *Subscription Services.* Our revenue from subscription services increased by 23.4% from $27.4 million for the six months ended June 30, 2024 to $33.8 million for the same period in 2025. The increase was primarily due to the expansion of our SaaS businesses. The Company's paying account subscriptions as of June 30, 2025 for Trucker Path increased to 144,800, by 30%, compared to June 30, 2024 paying subscriptions of 111,600. The Company's paying account subscriptions as of June 30, 2025 for Lofty decreased to 3,900, by 5%, compared to June 30, 2024 paying subscriptions of 4,100. Purchased seats for Lofty, defined as eligible users on a paid subscription, increased to 85,600 as of June 30, 2025 from 78,500 as of June 30, 2024, an increase of 9%.

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● *Advertising Services.* Our revenue from advertising services stayed stable of 1.6 million for the six months ended June 30, 2024 and 2025, respectively.

**Cost of revenues**

Our cost of revenues increased by 41.2% from $6.8 million for the six months ended June 30, 2024 to $9.6 million for the same period in 2025. This increase was primarily due to the increase of software expenses directly related to the generation of revenue and cloud hosting services to provide a better user experience and grow our SaaS businesses.

**Gross Margins**

Our gross margin decreased by 2.4% from 76.7% for the six months ended June 30, 2024 to 74.3% for the same period in 2025. The decrease was primarily due to increase in cost of service features provided within our real estate SaaS platforms.

**Operating expenses**

Our operating expenses increased by 14.2% from $24.7 million for the six months ended June 30, 2024 to $28.2 million for the same period in 2025, primarily due to increase of research and development expenses and general and administrative expenses.

● *Selling and marketing expenses.* Our selling and marketing expenses increased by 13.3% from $9.0 million for the six months ended June 30, 2024 to $10.2 million for the same period in 2025. This increase was primarily due to increase in headcount.

● *Research and development expenses.* Our research and development expenses increased by 31.1% from $9.0 million for the six months ended June 30, 2024 to $11.8 million for the same period in 2025. This increase was primarily due to an increase in our research and development headcount for new projects, and partially offset by a decrease of software expense and reduced share-based compensation expenses, which was substantially fully vested in fiscal year 2024.

● *General and administrative expenses.* Our general and administrative expenses decreased by 4.6% from $6.5 million for the six months ended June 30, 2024 to $6.2 million for the same period in 2025. The decrease was primarily due to lower legal fees and share-based compensation expenses, and partially offset by higher payroll expenses due to increased headcount, as well as higher consulting and outside service fees.

● *Impairment of intangible asset.* Our impairment of intangible asset decreased from $0.2 million for the six months ended June 30, 2024 to nil for the same period in 2025. The impairment loss in 2024 was due to impairment of the technology platform of LoftyWorks.

**Loss from fair value change of a long-term investment**

Loss from fair value change of a long-term investment was $0.02 million for the six months ended June 30, 2025, compared to $1.6 million for the same period in 2024. The loss from fair value change of a long-term investment represents the unrealized loss from reduction in quoted market price of ordinary shares of Kaixin, which is accounted for as an equity investment with readily determinable fair value.

***Segment Operations***

We are engaged in providing SaaS platforms to customers primarily located in the United States. We operate in two reportable segments: Lofty and Trucker Path. We define our segments as those operations whose results the chief operating decision maker regularly reviews to analyze performance and allocate resources. We sell similar platform services in each of our segments, it is impracticable to segregate and identify revenues for each of these individual products and services.

The Lofty segment includes our all-in-one real estate sales acceleration and client lifecycle management platform. The Trucker Path segment includes our driver-centric online transportation management platform. Our operating structure also includes Corporate, which is a center focusing on strategic initiatives, policy, governance and the scaling of global operations, and a platform services organization supporting operating units, global marketing category leadership teams and the center by providing efficient and scaled global services

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and capabilities, including, but not limited to, transactional work, data management, consumer analytics, digital commerce and social/digital hubs.

We measure the results of our segments using revenue and cost of sales. Information for our segments and Corporate for the three and six months ended June 30, 2024 and 2025, is provided in the following table (in thousands).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Lofty** | **Trucker Path** | **The Corporate** | **Eliminations** | **Consolidated** |
| **For the three months ended June 30, 2025** |  |  |  |  |  |
| Revenue | $9895 | $9342 | $154 | $(115) | $19276 |
| Cost of sales | 2132 | 2820 | 31 |  | 4983 |
| Gross Margin | $7763 | $6522 | $123 | $(115) | $14293 |
| **For the three months ended June 30, 2024** |  |  |  |  |  |
| Revenue | $8491 | $6758 | $155 | $(115) | $15289 |
| Cost of sales | 1382 | 2082 | 36 |  | 3500 |
| Gross Margin | $7109 | $4676 | $119 | $(115) | $11789 |
| **For the six months ended June 30, 2025** |  |  |  |  |  |
| Revenue | $19706 | $17489 | $311 | $(230) | $37276 |
| Cost of sales | 4195 | 5304 | 70 |  | 9569 |
| Gross Margin | $15511 | $12185 | $241 | $(230) | $27707 |
| **For the six months ended June 30, 2024** |  |  |  |  |  |
| Revenue | $16440 | $12791 | $311 | $(230) | $29312 |
| Cost of sales | 2769 | 3975 | 72 |  | 6816 |
| Gross Margin | $13671 | $8816 | $239 | $(230) | $22496 |

---

For more details, please refer to Note 10 of Notes to Condensed Consolidated Financial Statements for additional information about our segment information.

***Liquidity and Capital Resources***

The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. As of June 30, 2025, we had net current assets (current assets less current liabilities) of $7.1 million. For the three months ended June 30, 2024 and 2025, we incurred loss from operations amounting to $0.8 million and income from operations to $0.4 million; for the six months ended June 30, 2024 and 2025, we incurred loss from operations amounting to $2.2 million and $0.5 million, and negative cash flows from operating activities of $0.3 million and $2.8 million, respectively.

Our ability to continue as a going concern is dependent on our ability to generate cash flows from operations, and to make adequate financing arrangements. We had cash and cash equivalents of $17.1 million, excluding restricted cash of $5.0 million as of June 30, 2025. The cash reserve is expected to meet our operating needs for at least the next twelve months from the date of this Quarterly Report on Form 10-Q.

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***Cash Flows and Working Capital***

The following table sets forth a summary of cash flows for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
|  | **2024** | **2025** |
|  | **(Unaudited, in thousands of US$)** | **(Unaudited, in thousands of US$)** |
| Net cash used in operating activities | $(289) | $(2836) |
| Net cash (used in) provided by investing activities | (136) | 3837 |
| Net cash provided by (used in) financing activities | 858 | (11192) |
| Net increase (decrease) in cash and cash equivalents and restricted cash | 433 | (10191) |
| Cash and cash equivalents and restricted cash at the beginning of the period | 38969 | 31922 |
| Effect of exchange rate changes | (165) | 390 |
| Cash and cash equivalents and restricted cash at end of period | $39237 | $22121 |

---

Net cash used in operating activities was $2.8 million for the six months ended June 30, 2025, compared to $0.3 million for the same period in 2024. The principal adjustments to reconcile our net loss to our net cash used in operating activities were $0.4 million of share-based compensation expense, $0.4 million of amortization of the right-of-use assets and $0.3 million of depreciation and amortization. The principal change in operating assets and liabilities accounting for the difference between our net loss and our net cash used in operating activities for the six months ended June 30, 2025 was an increase in accounts receivable of $1.0 million, a decrease in income tax payable of $0.7 million, a decrease in accounts payable of $0.6 million and a decrease in operating lease liabilities of $0.4 million.

Net cash used in operating activities was $0.3 million for the six months ended June 30, 2024. The principal adjustments to reconcile our net loss to our net cash used in operating activities were fair value change on long-term investment, share-based compensation expense and impairment on and (gain) loss in equity method investments. The principal change in operating assets and liabilities accounting for the difference between our net loss and our net cash used in operating activities for the six months ended June 30, 2024 was an increase in accounts receivable of $0.6 million and a decrease in accrued expenses and other current liabilities of $0.06 million, and partially offset by an increase in deferred revenue of $0.2 million.

Net cash provided by investing activities was $3.8 million for the six months ended June 30, 2025, compared to net cash used in $0.1 million for the same period in 2024. Net cash provided by investing activities for the six months ended June 30, 2025 was due to $5.0 million for redemption of short-term investments and partially offset by $1.0 million for the payment for acquisition of a subsidiary, net of cash acquired and $0.1 million to purchase computers and furniture. Net cash used in investing activities for the six months ended June 30, 2024 was due to $0.1 million for the purchase of computers.

Net cash used in financing activities was $11.2 million for the six months ended June 30, 2025, compared to net cash provided by $0.9 million for the same period in 2024. Net cash used in financing activities for the six months ended June 30, 2025 was primarily due to $11.1 million of special cash dividends to ordinary shares. Net cash provided by financing activities for the six months ended June 30, 2024 was primarily due to proceeds of $1.0 million from exercise of share options, partly offset by the repurchase of $0.2 million ordinary shares.

***Contractual Obligations***

The following table sets forth our contractual obligations including interest payment, if applicable, as of June 30, 2025 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | <br>**Total** | **Less than 1**<br>**year** | <br>**1-3 years** | <br>**4-5 years** | <br>**More than 5 years** |
| Operating lease obligations <sup>(1)</sup> | 1356 | 322 | 807 | 91 | 136 |
| Contingent earn-out consideration <sup>(2)</sup> | 2723 | 928 | 1795 |  |  |
| Total | **4079** | **322** | **3530** | **91** | **136** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) We lease facilities and offices under non-cancelable operating lease agreements.

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&nbsp;&nbsp;&nbsp;&nbsp;(2) Maximum amount of contingent earn-out consideration payable over the next two years associated with our acquisition of TBI on May 1, 2025. See Note 4 to the accompanying unaudited condensed consolidated financial statements for further details.

***Capital Expenditures***

We made capital expenditures of $0.1 million and $0.1 million for the six months ended June 30, 2024 and 2025, respectively. Our capital expenditures for the six months ended June 30, 2025 were primarily used for the purchase of computers and furniture. Capital expenditures for the six months ended June 30, 2024 were primarily used for the purchase of the computers.

***Research and Development, Patents, and Licenses, etc.***

***Research and Development***

Our research and development efforts focus on developing and improving the scalability, features and functions of our SaaS services, including the compilation and use of data to increase automation of our services and enhance the customer experience. We have a large team of approximately 380 engineers and developers as of June 30, 2025, accounting for approximately 58% of our employees as of that date. Most of our engineers and developers are based at our subsidiary offices in China.

Our research and development personnel support all areas of our business, mainly focusing on the improvement and enhancement of our SaaS businesses, Lofty and Trucker Path. Our research and development personnel also focus on enhancing the user experience through commonly used user interfaces, including mobile apps, and ensuring our products are fully compatible with the latest mobile operating systems such as iOS, Android, and Windows. In 2024, with the acquisition of LoftyWorks by Lofty, we expect to increasingly invest in developing Lofty products to serve property managers and landlords. We periodically shift the priorities of our research and development personnel to ensure we continually develop new products and services to extend our customer reach and meet the needs of our user base and customers.

Our research and development expenses primarily include salaries and benefits for our research and development personnel. We incurred US$9.0 million and US$11.8 million of research and development expenses for the six months ended June 30, 2024 and 2025, respectively.

***Intellectual Property***

Our intellectual property includes trademarks and trademark applications related to our brands and services, trade secrets, and other intellectual property rights and licenses. We seek to protect our intellectual property assets and brand through a combination of monitoring and enforcement of trademark and trade secret protection laws in the US, PRC, and other jurisdictions, as well as through confidentiality agreements and procedures.

We have 77 trademarks and one copyright as of June 30, 2025. Our employees sign confidentiality and non-compete agreements when hired.

***Trend Information***

Other than as disclosed elsewhere in this Quarterly Report on Form 10-Q, we are not aware of any trends, uncertainties, demands, commitments or events for the six months ended June 30, 2025 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

***Critical Accounting Policies and Estimates***

Refer to Part II, Item 7, "Critical Accounting Policies and Estimates" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no material changes to our Critical Accounting Policies and Estimates disclosed therein.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we are not required to provide the information specified under this item.

**ITEM 4. CONTROLS AND PROCEDURES**

***Evaluation of Disclosure Controls and Procedures***

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act of 1934, as of the end of the period covered by this Quarterly Report on Form 10-Q. Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in by the SEC's rules and forms, and that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of June 30, 2025, our disclosure controls and procedures were not effective, due to the three material weaknesses in our internal control over financial reporting as described below.

***Material Weaknesses in Internal Control over Financial Reporting***

During the year ended December 31, 2024, our management identified three material weaknesses in our internal control over financial reporting, which remain unremediated as of June 30, 2025, as follows:

● Lack of an integrated and systematic risk assessment and reporting process to identify and assess the financial reporting risks and to ensure significant transactions including investments and non-routine transactions including share-based transactions are accurately recorded and properly disclosed; and

● Lack of evaluation in the process of assessing applicability of sales tax to our SaaS revenue products which resulted in an understated sales tax accrual; and

● Lack of evaluations to ascertain whether the components of internal control are present and functioning.

***Management's Remediation Plans and Actions***

To remediate the material weaknesses described above in "Material Weaknesses in Internal Control over Financial Reporting," we are implementing the plan and measures described below. We will continue to evaluate and, may in the future, implement additional measures.

● We have recruited personnel with the requisite knowledge in accounting and disclosure requirements for complex transactions under U.S. GAAP and statutory compliance. Where needed, we have engaged external parties with the expertise to evaluate and advise the company on complex or evolving areas such as public company filings, taxation, and valuation services.

● We have designed a control environment, which allows management to monitor the effectiveness of internal controls over financial reporting and address gaps identified within the environment.

● We have implemented a consolidated general ledger within a single enterprise resource planning application for all legal entities, which includes consolidation and statutory reporting capabilities.

● We will design and implement evaluation policies and procedures to ensure internal control components are present and functioning.

● We will improve the internal approval processes and implement the proper level of management review for each new grant. We will enhance communication between the human resources department and accounting department to ensure proper information sharing about new grants.

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● We have engaged experts to review and ensure completeness and accuracy of sales tax accrual and will design and implement a sales tax compliance system to ensure timely and accurate sales tax reporting.

We believe that we are taking the steps necessary for remediation of the material weaknesses identified above, and we will continue to monitor the effectiveness of these steps and to make any changes that our management deems appropriate.

***Changes in Internal Control over Financial Reporting***

Other than as described above, there were no other changes in our internal control over financial reporting during the six months ended June 30, 2025 that have materially affected or are reasonable likely to materially affect our internal control over financial reporting.

***Limitations on the Effectiveness of Controls and Procedures***

Our management, including our chief executive officer and our chief financial officer, does not expect that our disclosure controls and procedures or internal control over financial reporting will prevent or detect all errors and all fraud. A control system cannot provide absolute assurance due to its inherent limitations; it is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. A control system also can be circumvented by collusion or improper management override. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of such limitations, disclosure controls and procedures and internal control over financial reporting cannot prevent or detect all misstatements, whether unintentional errors or fraud. However, these inherent limitations are known features of the financial reporting process, therefore, it is possible to design into the process safeguards, to reduce, though not eliminate, this risk.

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**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

From time to time, we may become party to litigation or other legal proceedings that we consider to be part of the ordinary course of business.

We are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceedings against us that could reasonably be expected to have a material adverse effect on our business, financial condition or results of operations.

**ITEM 1A. RISK FACTORS** 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which could materially affect our business, financial condition or future results. There have been no material changes to the risk factors disclosed in Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS** 

On November 7, 2022, the Company's Board of Directors (the "Board") authorized the repurchase of up to an aggregate of $10.0 million of the Company's Class A ordinary shares, par value $0.001 per share, to be executed from time to time in open market transactions effected through a broker at prevailing market prices under ordinary principles of best execution within one year after commencement (the "Stock Repurchase Program"). The Stock Repurchase Program took effect on January 16, 2023. On October 13, 2023, the Board approved an extension and extra funding of the existing Stock Repurchase Program whereby the expiration date was extended to December 31, 2024 and the authorized repurchase amount was increased from $10.0 million to $15.0 million. On November 1, 2024, the Board approved an extension of the existing Stock Repurchase Program until December 31, 2026.

The following table presents information with respect to the Company's repurchases of ADSs (each representing 45 of our Class A ordinary shares) during the quarter ended June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Total Number of**<br>**ADSs Purchased** | <br><br>**Average Price Paid**<br>**Per ADS** | **Approximate Dollar**<br>**Value of ADSs That**<br>**Purchased as**<br>**Part of Publicly**<br>**Announced**<br>**Programs** | <br>**Approximate Dollar**<br>**Value of ADSs That**<br>**May Yet Be**<br>**Purchased Under**<br>**the Programs** |
| **Periods** |  |  |  |  |
| **May 2025** |  |  |  |  |
| Open market purchases | 7066 | $1.02 | $7 | $3090 |
| **June 2025** |  |  |  |  |
| Open market purchases | 20393 | $1.06 | $22 | $3068 |
| **Total** | **27459** |  | $**29** |  |

---

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not Applicable.

**ITEM 5. OTHER INFORMATION**

During the six months ended June 30, 2025, none of our company's officers or directors adopted or terminated any "Rule 10b5-1 trading arrangement" or any "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

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**ITEM 6. EXHIBITS**

***EXHIBIT INDEX***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ('**Exhibit**<br>', '**Number**<br>', '<br><BORDER_TOP>') | ('Unnamed: 2_level_0', '**Exhibit Description**<br>', '<br><BORDER_TOP>') | ('**Incorporated by Reference**<br>', '**Form**<br>', '<br><BORDER_TOP>') | ('**Incorporated by Reference**<br>', '**File No.**<br>', '<br><BORDER_TOP>') | ('**Incorporated by Reference**<br>', '**Exhibit**<br>', '<br><BORDER_TOP>') | ('**Incorporated by Reference**<br>', '**Filing Date**<br>', '<br><BORDER_TOP>') | ('**Filed/ Furnished**<br>', '**Herewith**<br>', '<br><BORDER_TOP>') |
| 3.1 | [Amended and Restated Memorandum and Articles of Association of the Registrant](https://www.sec.gov/Archives/edgar/data/1509223/000141057823001916/mtbl-20230630xex3d1.htm) | 10-Q | 001-35147 | 3.1 | 8/14/2023 |  |
| 10.1# | [Membership Interest Purchase Agreement dated as of March 31, 2025, by and between Trucker Path Insurance, Inc. and Daniel Raykes](mtbl-20250630xex10d1.htm) |  |  |  |  | \* |
| 31.1 | [Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](mtbl-20250630xex31d1.htm) |  |  |  |  | \* |
| 31.2 | [Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](mtbl-20250630xex31d2.htm) |  |  |  |  | \* |
| 32.1 | [Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](mtbl-20250630xex32d1.htm) |  |  |  |  | \*\* |
| 101 | Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q |  |  |  |  | \* |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) |  |  |  |  | \* |

---

\* Filed herewith.

\*\* Furnished herewith and not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, the Exchange Act, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, irrespective of any general incorporation language contained in such filing.

# Certain schedules and exhibits to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the Securities and Exchange Commission upon request.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized**.**

---

| | | |
|:---|:---|:---|
|  | Moatable, Inc. | Moatable, Inc. |
| Dated: August 15, 2025 | By: | /s/ Joseph Chen |
|  |  | Joseph Chen |
|  |  | Chairman and Chief Executive Officer (Principal Executive Officer) |
| Dated: August 15, 2025 | By: | /s/ Scott Stone |
|  |  | Scott Stone |
|  |  | Chief Financial Officer (Principal Financial and Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**FINAL**

**MEMBERSHIP INTEREST PURCHASE AGREEMENT<br>DATED AS OF MARCH 31, 2025**

**BY AND BETWEEN**

**TRUCKER PATH INSURANCE, INC. <br>AND**

**DANIEL RAYKES**

------

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| **ARTICLE I.** | **DEFINED TERMS** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.01 | &nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS. AS USED HEREIN, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.02 | &nbsp;&nbsp;&nbsp;&nbsp;RULES OF CONSTRUCTION | 9 |
| **ARTICLE II.** | **PURCHASE AND SALE OF THE MEMBERSHIP INTERESTS** | **10** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.01 | &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE AND SALE OF THE MEMBERSHIP INTERESTS | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.02 | &nbsp;&nbsp;&nbsp;&nbsp;PURCHASE PRICE; MANNER AND PAYMENT OF PURCHASE PRICE; FRACTIONAL SHARES; KEY- PERSON INSURANCE | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.03 | &nbsp;&nbsp;&nbsp;&nbsp;ESTIMATE OF WORKING CAPITAL | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.04 | &nbsp;&nbsp;&nbsp;&nbsp;POST-CLOSING CONSIDERATION ADJUSTMENT | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.05 | &nbsp;&nbsp;&nbsp;&nbsp;CLOSING | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.06 | &nbsp;&nbsp;&nbsp;&nbsp;TERMINATION OF THE AGREEMENT | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.07 | &nbsp;&nbsp;&nbsp;&nbsp;METHOD OF CASH PAYMENTS | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.08 | &nbsp;&nbsp;&nbsp;&nbsp;INTERIM OPERATIONS OF THE COMPANY | 14 |
| **ARTICLE III.** | **REPRESENTATIONS AND WARRANTIES OF SELLER** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.01 | &nbsp;&nbsp;&nbsp;&nbsp;AUTHORITY OF SELLER | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.02 | &nbsp;&nbsp;&nbsp;&nbsp;OWNERSHIP | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.03 | &nbsp;&nbsp;&nbsp;&nbsp;INVESTMENT EXPERIENCE | 15 |
| **ARTICLE IV.** | **REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO THE COMPANY** | **16** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.01 | &nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION AND BUSINESS; POWER AND AUTHORITY | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.02 | &nbsp;&nbsp;&nbsp;&nbsp;CAPITALIZATION | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.03 | &nbsp;&nbsp;&nbsp;&nbsp;NO CONFLICTS; CONSENTS | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.04 | &nbsp;&nbsp;&nbsp;&nbsp;SUBSIDIARIES | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.05 | &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS; ABSENCE OF CERTAIN CHANGES; UNDISCLOSED LIABILITIES | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.06 | &nbsp;&nbsp;&nbsp;&nbsp;MATERIAL CONTRACTS | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.07 | &nbsp;&nbsp;&nbsp;&nbsp;CLIENTS AND SUPPLIERS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.08 | &nbsp;&nbsp;&nbsp;&nbsp;INDEBTEDNESS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.09 | &nbsp;&nbsp;&nbsp;&nbsp;TITLE AND SUFFICIENCY OF ASSETS; REAL PROPERTY | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.10 | &nbsp;&nbsp;&nbsp;&nbsp;COMPLIANCE WITH LAWS; PERMITS | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.11 | &nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS; GOVERNMENTAL ORDERS | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.12 | &nbsp;&nbsp;&nbsp;&nbsp;TAX MATTERS | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.13 | &nbsp;&nbsp;&nbsp;&nbsp;INTELLECTUAL PROPERTY | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.14 | &nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEE PLANS | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.15 | &nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEES; EMPLOYEE RELATIONS | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.16 | &nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTS RECEIVABLE | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.17 | &nbsp;&nbsp;&nbsp;&nbsp;INSURANCE | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.18 | &nbsp;&nbsp;&nbsp;&nbsp;NO ILLEGAL PAYMENTS, ETC | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.19 | &nbsp;&nbsp;&nbsp;&nbsp;BOOKS AND RECORDS | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.20 | &nbsp;&nbsp;&nbsp;&nbsp;BANK ACCOUNTS AND POWERS OF ATTORNEY | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.21 | &nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY TRANSACTIONS | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.22 | &nbsp;&nbsp;&nbsp;&nbsp;BROKER OR FINDER | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.23 | &nbsp;&nbsp;&nbsp;&nbsp;PRIVACY AND DATA SECURITY | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.24 | &nbsp;&nbsp;&nbsp;&nbsp;NO UNTRUE STATEMENTS | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.25 | &nbsp;&nbsp;&nbsp;&nbsp;EXCLUSIVITY OF REPRESENTATIONS | 28 |
| **ARTICLE V.** | **REPRESENTATIONS AND WARRANTIES OF PURCHASER** | **28** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.01 | &nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION AND BUSINESS; POWER AND AUTHORITY; NON-CONTRAVENTION | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.02 | &nbsp;&nbsp;&nbsp;&nbsp;NO CONFLICTS; CONSENTS | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.03 | &nbsp;&nbsp;&nbsp;&nbsp;BROKER OR FINDER | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.04 | &nbsp;&nbsp;&nbsp;&nbsp;LEGAL ACTIONS | 29 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.05 | &nbsp;&nbsp;&nbsp;&nbsp;MATERIAL CHANGES; UNDISCLOSED EVENTS; LIABILITIES OR DEVELOPMENTS | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.06 | &nbsp;&nbsp;&nbsp;&nbsp;COMPLIANCE | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.07 | &nbsp;&nbsp;&nbsp;&nbsp;SOLVENCY | 30 |
| **ARTICLE VI.** | **COVENANTS** | **30** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.01 | &nbsp;&nbsp;&nbsp;&nbsp;OPERATION AND MANAGEMENT OF BUSINESS | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.02 | &nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT TO COOPERATE | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.03 | &nbsp;&nbsp;&nbsp;&nbsp;TAX MATTERS | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.04 | &nbsp;&nbsp;&nbsp;&nbsp;PUBLIC ANNOUNCEMENTS | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.05 | &nbsp;&nbsp;&nbsp;&nbsp;CONFIDENTIALITY | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.06 | &nbsp;&nbsp;&nbsp;&nbsp;RESTRICTIVE COVENANTS | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.07 | &nbsp;&nbsp;&nbsp;&nbsp;FURTHER ASSURANCES | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.08 | &nbsp;&nbsp;&nbsp;&nbsp;D&O INDEMNIFICATIONS | 37 |
| **ARTICLE VII.** | **INDEMNIFICATION** | **37** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.01 | &nbsp;&nbsp;&nbsp;&nbsp;SURVIVAL PERIOD | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.02 | &nbsp;&nbsp;&nbsp;&nbsp;SELLER'S INDEMNIFICATION OBLIGATIONS | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.03 | &nbsp;&nbsp;&nbsp;&nbsp;PURCHASER'S INDEMNIFICATION OBLIGATIONS | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.04 | &nbsp;&nbsp;&nbsp;&nbsp;LIMITATION AND OTHER MATTERS RELATING TO INDEMNIFICATION | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.05 | &nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION PROCEDURES | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.06 | &nbsp;&nbsp;&nbsp;&nbsp;TIME FOR PAYMENT OF CLAIMS; INSURANCE; TREATMENT OF INDEMNIFICATION PAYMENTS | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.07 | &nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION EXCLUSIVE REMEDY | 42 |
| **ARTICLE VIII.** | **MISCELLANEOUS** | **42** |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.01 | &nbsp;&nbsp;&nbsp;&nbsp;FEES, EXPENSES AND OTHER PAYMENTS | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.02 | &nbsp;&nbsp;&nbsp;&nbsp;NOTICES | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.03 | &nbsp;&nbsp;&nbsp;&nbsp;WAIVERS; AMENDMENTS | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.04 | &nbsp;&nbsp;&nbsp;&nbsp;ENTIRE AGREEMENT | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.05 | &nbsp;&nbsp;&nbsp;&nbsp;ASSIGNMENT | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.06 | &nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.07 | &nbsp;&nbsp;&nbsp;&nbsp;JURISDICTION; FORUM | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.08 | &nbsp;&nbsp;&nbsp;&nbsp;WAIVER OF TRIAL BY JURY | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.09 | &nbsp;&nbsp;&nbsp;&nbsp;REMEDIES | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.10 | &nbsp;&nbsp;&nbsp;&nbsp;NO THIRD-PARTY BENEFICIARIES | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.11 | &nbsp;&nbsp;&nbsp;&nbsp;COUNTERPARTS | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.12 | &nbsp;&nbsp;&nbsp;&nbsp;HEADINGS | 45 |

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**MEMBERSHIP INTEREST PURCHASE AGREEMENT**

This **MEMBERSHIP INTEREST PURCHASE AGREEMENT** (this "<u>Agreement</u>") is entered into as of March 31, 2025 <u>("Signing Date</u>"), by and between Trucker Path Insurance, Inc., a Delaware corporation ("<u>Purchaser</u>") and Daniel Raykes ("<u>Seller</u>"). Purchaser and Seller are each hereinafter referred to as a "<u>Party</u>", and collectively as the "<u>Parties</u>".

**RECITALS**

**WHEREAS**, Seller owns all the issued and outstanding membership interests (the "<u>Membership Interests</u>"), of Truckers Best Insurance LLC, a South Carolina limited liability company (the "<u>Compan</u>y"), comprising 100% of the issued and outstanding Equity Interests in the Company;

**WHEREAS**, the Company provide truckers with insurance services; and

**WHEREAS**, Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, the Membership Interests in consideration for cash on the terms and subject to the conditions set forth in this Agreement.

**NOW, THEREFORE**, in consideration of the premises and the representations, warranties, covenants and agreements herein contained and other valuable consideration, the receipt and adequacy whereof are hereby acknowledged, the Parties hereby, intending to be legally bound, agree as follows:

**AGREEMENT**

**Article I.** **DEFINED TERMS**

<u>Section 1.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Definitions</u>. As used herein, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) " <u>2026 Earn-Out</u> " means the payment obligation, if any, owed pursuant to this Agreement and payable in 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) " <u>2026 Earn-Out End Date</u> " means at 12:59.59 p.m. on one calendar day prior to the twelve- month anniversary of the 2026 Earn-Out Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) " <u>2026 Earn-Out Start Date</u> " means at 12:00.01 a.m. on one calendar day after Second Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) " <u>2026 Earn-Out Period</u> " means a date range starting at 2026 Earn-Out Start Date and ending at 2026 Earn-Out End Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) " <u>2027 Earn-Out</u> " means the payment obligation, if any, owed pursuant to this Agreement and payable in 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) " <u>2027 Earn-Out End Date</u> " means at 12:59.59 p.m. on one calendar day prior to the twelve- month anniversary of the 2027 Earn-Out Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) " <u>2027 Earn-Out Start Date</u> " means at 12:00.01 a.m. on twelve-month anniversary of the 2026 Earn-Out Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) " <u>2027 Earn-Out Period</u> " means a date range starting at 2027 Earn-Out Start Date and ending at 2027 Earn-Out End Date."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Affiliate</u> " and " <u>Affiliated</u> " means, with respect to any specified Person: (a) any other Person at the time directly or indirectly controlling, controlled by or under direct or indirect common control with such Person, (b) any officer or director of such Person, (c) with respect to any partnership, joint venture, limited liability company or similar Person, or any general partner or manager thereof and (d) when used with respect to an individual, shall include any member of such individual's immediate family or a family trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) " <u>Authorit</u> y" means any governmental, regulatory, or administrative body, agency, commission, department, bureau, instrumentality, tribunal, board, arbitrator or authority, any court or judicial authority, any public, private or industry regulatory authority, whether international, national, federal, state, provincial or local, and any entity or official

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*Membership Interest Purchase Agreement*

exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) " <u>Books and Records</u> " means all minute books, corporate records, books of account and accounting records of the Company, and listings of (i) all bank accounts, investment accounts and lock boxes maintained by the Company that references the names and addresses of the financial institutions where they are maintained and (ii) the names of all Persons that are registered with such financial institutions as authorized signatories to operate such bank accounts, investment accounts and lock boxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) " <u>Business</u> " refers to the Company's business of providing truckers insurance services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) " <u>Business Da</u> y" means any day other than Saturday, Sunday or a day on which banking institutions in New York, New York are required or authorized by Law to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) " <u>Cash</u> " means all cash and cash equivalents of the Company (including marketable securities and short term investments) on hand or on deposit as of the applicable date (the amount of which shall be reduced by (i) all claims against such cash and cash equivalents represented by outstanding checks, drafts, wire transfers or similar instruments which have not been applied against such cash and cash equivalent balances and (ii) all escrowed cash or other restricted cash balances, including security deposits under leases).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) " <u>Cause</u> " shall have the meaning defined in the Offer Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) " <u>Closing Burden</u> " shall mean the condition precedent to the Second Closing when the Company is no longer recognized as an S corporation under the Internal Revenue Code and applicable state laws. This cessation may occur due to the revocation of the Company's S corporation election, the termination of its eligibility to qualify as an S corporation, or any other action or circumstance resulting in the Company being classified as a different type of entity for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) " <u>Closing Seller Cash Consideration</u> " means an amount of cash equal to $1,000,000.00, payable to Seller on the Second Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) " <u>Code</u> " means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) " <u>Contracts</u> " means all contracts, options, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and all other agreements, obligations, commitments and arrangements, whether written or oral, express or implied, in each case as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) " <u>Current Assets</u> " means the total of the Company's current assets, which current assets shall include only the line items set forth on <u>Exhibit C</u> under the heading "Current Assets" and no other assets, and which for the avoidance of doubt shall exclude Cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) " <u>Current Liabilities</u> " means the total of the Company's current liabilities, which current liabilities shall include only the line items set forth on <u>Exhibit C</u> under the heading "Current Liabilities" and no other liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) " <u>Data Privacy and Security Re</u> q <u>uirements</u> " means, collectively, all of the following to the extent relating to data treatment or otherwise relating to privacy, security, or security breach notification requirements and applicable to the Company, to the conduct of the Business, or to any of the Business systems or any Business data:

&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 Company's own rules, policies, and procedures;

&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) all applicable laws, rules and regulations relating to privacy, data protection, or data security, including with respect to the collection, storage, transmission, transfer (including cross-border transfers), disclosure, use and disposal of Personal Data;

&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) industry standards applicable to the industry in which the Business operates; 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;(iv) Contracts into which the Company has entered or by which it is otherwise bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) " <u>Disclosure Schedule</u> " means the Disclosure Schedule dated as of the First Closing Date and delivered by Seller or Purchaser, as applicable, concurrently with the execution and delivery of this Agreement.

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*Membership Interest Purchase Agreement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) " <u>Earn-Out Base Compensation Amount</u> " means $2,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) " <u>Earn-Out Payments</u> " means, collectively, the 2026 Earn-Out and the 2027 Earn-Out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) " <u>Earn-Out Period</u> " means the period commencing at 2026 Earn-Out Start Date and ending on 2027 Earn-Out End Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) " <u>Employee Plans</u> " means each written or oral: employee benefit plan, agreement, program, policy and commitment (including "employee benefit plans" within the meaning of Section 3(3) of ERISA), and each stock purchase, stock option, restricted stock or other equity- based arrangement, severance, employment, termination, retention, consulting, change-of- control, bonus, incentive, deferred compensation, vacation, paid time off, fringe benefit or other benefit plans, agreements, programs, policies or commitments, whether or not subject to ERISA,

&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) under which any current or former director, officer, employee or consultant of the Company has any right to benefits 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;(ii) which are maintained, sponsored or contributed to by the Company or to which any the Company makes or is required to make contributions or under which the Company has or could reasonably be expected to have any direct or indirect liability, contingent or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "<u>E</u>q<u>uity Interest</u>" of any Person means 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;(i) capital stock, membership or partnership interest, unit or other ownership interest of or in such Person,

&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) securities directly or indirectly convertible into or exchangeable for any for the foregoing,

&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) options, warrants or other rights directly or indirectly to purchase or subscribe for any of the foregoing or securities convertible into or exchangeable for any of the foregoing 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;(iv) contracts, commitments, and agreements relating to the issuance of any of the foregoing or giving any Person the right to participate in or receive any payment based on the profits or performance of such Person (including any equity appreciation, phantom equity or similar plan or right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) " <u>ERISA</u> " means the Employee Retirement Income Security Act of 1974 or any successor Law, and the rules and regulations thereunder or under any successor Law, all as from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) " <u>ERISA Affiliate</u> " means, with respect to any Person, any trade or business, whether or not incorporated, which, together with such Person, is, or was at the relevant time, treated as a single employer under Sections 3(5) or 40001(b)(1) of ERISA or Sections 414(b), (c), (m) or (o) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) " <u>ERISA Affiliate Liabilit</u> y" means any Liability of the Company under or in respect of any employee benefit plan pursuant to any statute or regulation that imposes Liability on a "controlled group" or similar basis, as a result of the Company being treated as a single employer under Sections 414(b), (c), (m) or (o) of the Code or Sections 3(5) or 4001(b)(1) of ERISA, or the regulations promulgated thereunder, with respect to any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) " <u>First Closing Date</u> " shall mean the Signing Date, which is the date the Parties entered into this Agreement, thereby deeming it final and binding, subject to the terms and condition hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) " <u>GAAP</u> " means United States generally accepted accounting principles as in effect on the date hereof consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "<u>Indebtedness</u>" means, with respect to any Person, without duplication

&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) indebtedness for borrowed money, whether current, short-term or long-term and whether secured or unsecured;

&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) indebtedness evidenced by any note, bond, debenture or other debt instrument;

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*Membership Interest Purchase 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations under any interest rate, currency or commodity swaps, collars, caps, hedges, futures contract, forward contract, option or other derivative instruments;

&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) customer deposits;

&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) any accrued interest, premiums, penalties, "breakage costs," redemption fees, requirement to pay early, or other termination fees with respect to any of the foregoing types of obligations;

&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;(vi) any performance bond, letter of credit or surety bond, in each case, solely to the extent drawn upon or payable and not continuing, or any bank overdrafts and similar charges; 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;(vii) guarantee or assumption of any such indebtedness described in clauses (i) through (vi) above or any debt securities of another Person.

&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;(viii) Notwithstanding the foregoing, for purposes of calculating Final Indebtedness, Closing Indebtedness and Estimated Indebtedness, "Indebtedness" shall not include any Current Liabilities to the extent included in Working Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>"Indemnifying Party"</u> means, with respect to a particular matter, a Person who is required to provide indemnification under Article VII below to another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) " <u>Independent Accountant</u> " means a nationally or regionally recognized accounting firm selected by mutual agreement of Purchaser and Seller that has not performed accounting, Tax or auditing services for Purchaser, Seller, the Company or any of their respective Affiliates during the past three years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) " <u>Intellectual Propert</u> y" means any of the following, as they exist anywhere in the world, whether registered or unregistered:

&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) all patents, patentable inventions and patent applications and all reissues, divisions, divisionals, provisionals, continuations and continuations-in-part, renewals, extensions, reexaminations, utility models, certificates of invention and design patents, registrations and applications thereof, and all documents and filings claiming priority to or serving as a basis for priority 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, corporate names, trade styles and other source or business identifiers, together with the goodwill associated with any of the foregoing, along with all applications, registrations, renewals and extensions thereof (and any embodiments thereof, e.g., graphics files or logo designs);

&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) all copyrights, works of authorship, copyrightable works, copyright registrations and applications therefor, and all other rights corresponding thereto;

&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) software;

&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) all trade secrets, research records, processes, procedures, sales plans, sales strategies, manufacturing formulae, know-how, blue prints, designs, plans, inventions and databases, confidential information and other proprietary information and rights (whether or not patentable or subject to copyright or trade secret protection);

&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;(vi) all Internet addresses, sites, social media accounts and identifiers, domain names and numbers;

&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;(vii) all moral and economic rights of authors and inventors, however denominated,

&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;(viii) any other intellectual property and proprietary rights of any kind, nature or description; 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;(ix) any copies of tangible embodiments thereof (in whatever form or medium).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) " <u>IRS</u> " means the Internal Revenue Service of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) " <u>Law</u> " means any administrative, judicial, or legislative code, finding, law, interpretation, ordinance, policy statement, proclamation, regulation, requirement, rule, statute, or writ of any Authority or the common law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) " <u>Legal Action</u> " means, with respect to any Person, any and all litigation or legal or other actions, arbitrations, claims, counterclaims, disputes, grievances, investigations, proceedings (including condemnation proceedings), subpoenas, requests for material information by or pursuant to the order of any Authority, at Law or in arbitration, equity or admiralty, whether or not purported to be brought on behalf of such Person, affecting such Person or any of such Person's business, property or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) " <u>Liabilit</u> y" means any and all Indebtedness (other than the Permitted Indebtedness), liabilities, commitments, loss, damage, penalties, Taxes, expenses (including attorney's fees and costs of investigation) or obligations, of any kind whatsoever, whether asserted or unasserted, accrued or fixed, known or unknown, absolute or contingent, matured or unmatured, liquidated or unliquidated, determined or determinable, on or off-balance sheet, and whether arising in the past, present or future, and including those arising under any Contract, Legal Action or Order, regardless of whether such debt, liability, commitment or obligation would be required to be reflected on a balance sheet prepared in accordance with GAAP or disclosed in the notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) " <u>Lien</u> " means any: mortgage; lien (statutory or other) or encumbrance; or other security agreement, arrangement or interest; hypothecation, pledge or other deposit arrangement; assignment; charge; levy; executory seizure; attachment; garnishment; encumbrance (including any unallocated title reservations or any other title matters which impairs marketability of title); conditional sale, title retention or other similar agreement, arrangement, device or restriction; preemptive or similar right; rights of first refusal or rights of first offer, any financing lease involving substantially the same economic effect as any of the foregoing; the filing of any financing statement under the Uniform Commercial Code or comparable Law of any jurisdiction; restriction on sale, transfer, assignment, disposition or other alienation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) " <u>Losses</u> " means losses, damages, Liabilities, deficiencies, Legal Actions, judgments, interest, awards, penalties, fines, lost profits, or diminution in value, costs or expenses of whatever kind, including attorneys' and accounting fees and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) " <u>Material Adverse Effect</u> " means, with respect to the Company or Purchaser, as applicable, any effect or change that is, or would reasonably be expected to be, materially adverse to the business, assets, liabilities, operations or conditions (financial or otherwise) of such Person, as context may require, taken as a whole, or on the ability of Seller to consummate the transactions contemplated herein; p <u>rovided</u>, <u>however</u>, that a Material Adverse Effect shall not include any such effects or changes to the extent 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;(i) changes to the U.S., or global economy, in each case, as a whole, or that affect the industry or markets in which such Person operates 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the announcement or disclosure of the transactions contemplated herein effected in accordance with the terms of 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any hurricane, earthquake or other natural disasters (including airport closures and/or delays as a result therefrom);

&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) any pandemic, including without limitation the COVID-19 pandemic;

&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) general economic, regulatory or political conditions in North America;

&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;(vi) changes in accounting rules;

&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;(vii) changes in the North American debt or securities markets;

&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;(viii) military action or any act or credible threat of terrorism;

&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;(ix) changes in currency exchange rates or commodities prices;

&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;(x) changes in Law, or accounting rules or the enforcement, implementation or interpretation 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;&nbsp;&nbsp;&nbsp;&nbsp;(xi) compliance with the terms of 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;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any act or omission of such Person taken with the prior consent of, or at the request of, the other Party; or

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&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;(xiii) any failure of such Person to meet any internal or published financial or non- financial projections, forecasts, revenue, earning predictions or estimates (it being understood that the underlying facts and circumstances giving rise to such failure that are not otherwise excluded from the definition of Material Adverse Effect may be taken into account in determining whether there has been or would reasonably be expected to have a Material Adverse Effect); provided, that in the cases of clauses (i) - (x) above, such occurrence shall be taken into account to the extent it has a disproportionate impact on the business, results of operations, financial condition or assets of such Person compared to other companies operating in the industries in which such Person operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) " <u>Multiemployer Plan</u> " means (i) any "multiemployer plan" (as defined in Section 4001(a)(3) of ERISA) or (ii) any "multiple employer plan" within the meaning of the Code or ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) " <u>Net Income</u> " for any fiscal year of the Company means the net income of the Company for such fiscal year determined in accordance with GAAP and the Company's regular accounting policies and procedures. Net Income shall be derived from the audited financial statements of the Company for the relevant fiscal year, or if audited financial statements have not been prepared for any such fiscal year as of May 31 of the next subsequent fiscal year, then from the unaudited profit and loss accounts of the Company for the relevant fiscal year, provided that in each case such net income shall be adjusted 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) minus extraordinary one-time gains, or plus extraordinary one-time losses, in each case that are unrelated to the Business as conducted in the ordinary course, including any consequences of purchase accounting amortization;

&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) plus any overhead expenses allocated to the Company for services provided by Purchaser or its Affiliates, to the extent these exceed the Company's historical cost of equivalent services, and plus any overhead expenses charged to the Company that are unrelated to its operations;

&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) minus revenue and plus expenses associated with any other business or operations acquired or established by the Company after the Second Closing Date, unless Seller has expressly consented in writing to acquiring or establishing such business or operations; 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;(iv) plus any taxes deducted from such net income that would not have been incurred but for the fact that the Company became affiliated with Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) " <u>Offer Letter</u> " means that certain offer letter of employment to be executed by and between Seller and Purchaser on or prior to the Second Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) " <u>Orders</u> " means any writ, order, judgment, injunction, decree, ruling or consent, whether temporary, preliminary or permanent, of or by an Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) " <u>Organizational Documents</u> " means, with respect to a Person that is a corporation, its charter, its by-laws and all shareholder agreements, voting trusts and similar arrangements applicable to any of its capital or equity interests, with respect to a Person that is a partnership, its agreement and certificate of partnership, any agreements among partners, and any management and similar agreements between the partnership and any general partners (or any Affiliate thereof) and with respect to a Person that is a limited liability company, its certificate of formation or articles of organization, its limited liability company operating agreement, any agreements among members of such Person and similar agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) " <u>Owned Intellectual Property</u> " means the Intellectual Property that is owned by, or exclusively licensed to, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) " <u>Permits</u> " means all permits, licenses, consents, franchises, approvals, privileges, immunities, authorizations, exemptions, registrations, certificates, variances and similar rights obtained or required to be obtained from any Authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<u>Permitted Liens</u>" means

&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) liens for Taxes not yet due and payable;

&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) mechanics, carriers', workmen's, repairmen's or other like liens arising or incurred in the ordinary course of business consistent with past practice or amounts that are not delinquent and which are not, individually or in the aggregate, material to the business of the Company;

&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) liens for Indebtedness reflected on the Latest Balance Sheet, which Liens will be discharged as of or prior to the Second 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business consistent with past practice which do not, individually or in the aggregate, have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) " <u>Person</u> " means any natural person, corporation, association, partnership, organization, business, limited liability company, firm, trust, joint venture, unincorporated organization or any other entity or organization, including an Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) " <u>Personal Data</u> " means information related to an identified or identifiable individual or device (such as name, street address, telephone number, e-mail address, financial account number, social security number, customer or account number, government-issued identifiers, online identifiers and any other data used or intended to be used to directly or indirectly identify, contact or precisely locate a person or device).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) " <u>Pre-Closing Tax Period</u> " means any taxable period ending on or before the Second Closing Date and the portion through the end of the Second Closing Date for any Straddle Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "<u>Pre-Closing Taxes</u>" means

&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 and all Taxes of, imposed on, or assessed against, the Company for any Pre- Closing Tax Period;

&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 and all income Taxes of the Seller in respect of its ownership interest in the Company (including, capital gains Taxes arising as a result of the transactions contemplated by this Agreement and any withholding Taxes imposed on any payment to Seller pursuant to this Agreement) for any Pre-Closing Tax Period;

&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 Taxes for which the Company or any of its Subsidiaries (or any predecessor for the foregoing) is held liable under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or non-U.S. Law) by reason of such entity being included in any consolidated, affiliated, combined or unitary group at any time on or before the Second Closing 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Taxes imposed on or payable by third parties with respect to which the Company or any of its Subsidiaries has an obligation to indemnify such third party pursuant to a transaction consummated on or prior to the Second 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Transfer Taxes for which the Seller is responsible for pursuant to Section 6.03(c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) " <u>Purchaser Indemnitees</u> " means Purchaser, its Affiliates and each of their respective directors, managers, officers, members, stockholders, partners, employees, agents, Representatives, lenders, successors and assigns, and the term " <u>Purchaser Indemnitee</u> " means any one of the foregoing Purchaser Indemnitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "<u>Registered Intellectual Propert</u>y" means all

&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) registered patents and pending patent applications;

&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) registered trademarks, tradenames, and service mark registrations and applications to register any trademarks therefor;

&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) copyright registrations; 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;(iv) internet domain name registrations, in each case to the extent used in connection with the Business and owned or purported to be owned by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) " <u>Related Party Transaction</u> " means any Contract, agreement, arrangement or understanding between or among the Company or Seller, on the one hand, and any Affiliates of Seller or the Company, on the other hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) " <u>Representatives</u> " means a Party's Affiliates, officers, managers, directors, employees, accountants, auditors, counsel, financial and other advisors, consultants and other representatives and agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) " <u>Second Closing Date</u> " shall mean the date on which the Company ceases to be subject to its S corporation election status under applicable law. Upon the Second Closing Date, the provisions of the Transition Services Agreement and this Agreement shall be subject to further terms as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "<u>Securities Act</u>" means the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) " <u>Seller Indemnitees</u> " means Seller, his Affiliates and their respective directors, managers, officers, members, stockholders, partners, employees, agents, Representatives, lenders, and their respective successors and assigns, and the term " <u>Seller Indemnitee</u> " means any one of the foregoing the Seller Indemnitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) " <u>Subsidiar</u> y" means, with respect to any Person, any partnership, limited liability company, corporation or other business entity of which

&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) if a corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; 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;(ii) if a partnership, limited liability company or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm)&nbsp;&nbsp;&nbsp;&nbsp; "<u>Target Working Capital</u>" means $5,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnn) " <u>Tax Return</u> " means all returns, consolidated or otherwise (including estimated returns, information returns, disclosures, elections, designations, reports, claims for refund, statements, declarations, withholding returns and any other forms or reports) or any other document required to be filed with or submitted to a taxing Authority relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ooo) " <u>Taxes</u> " means, with respect to any Person, all taxes (domestic or foreign), including any income (net, gross or other including recapture of any tax items such as investment tax credits), alternative or add-on minimum tax, gross income, gross receipts, gains, sales, use, leasing, lease, user, ad valorem, transfer, recording, franchise, profits, property (real or personal, tangible or intangible), escheat, fuel, license, withholding on amounts paid to or by such Person, payroll, employment, unemployment, social security, excise, severance, stamp, occupation, premium, environmental or windfall profit tax, custom, duty or other tax, or other like assessment or charge of any kind whatsoever, together with any interest, levies, assessments, charges, penalties, additions to tax or additional amount imposed by any Authority, whether disputed or not, and including any obligation to indemnify or otherwise assume or succeed to the Tax Liability of another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) " <u>Taxing Authorit</u> y" means, with respect to any Tax or Tax Return, the Authority that imposes such Tax or requires a person to file such Tax Return and the agency (if any) charged with the collection of such Tax or the administration of such Tax Return, in each case, for such Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqq) " <u>Transactions</u> " means the purchase and sale of the Membership Interests and the other transactions contemplated hereby and by the other Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrr) " <u>Transaction Documents</u> " means this Agreement, and any and all other agreements, instruments, documents and certificates described in this Agreement to be delivered hereunder from time to time or as closing documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(sss) " <u>Transaction Expenses</u> " means any fees, costs and expenses, whether accrued for or not, incurred by Seller, the Company or their Representatives, or subject to reimbursement by the Company, in each case in connection with the transactions contemplated hereby and by the other Transaction Documents (whether incurred prior to or after the date hereof) and not paid by the Company, Seller or otherwise prior to the First Closing Date, including:

&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 brokerage, finders' or other advisory fees, costs, expenses, commissions or similar payments;

&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 fees, costs and expenses of counsel, accountants or other advisors or service providers;

&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 fees, costs and expenses or payments of the Company or any of its Affiliates related to any transaction bonus, discretionary bonus, severance, change-of-control payment, phantom equity payout, "stay-put" or other compensatory payments made to any employee of the Company or any of its Affiliates as a result of the execution of any Transaction Document or in connection with the transactions contemplated hereby;

&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) the employer portion of any employment taxes (e.g., FICA) imposed on payments described in clause (iii);

&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) any other fees, costs, expenses or payments resulting from the change of control of the Company or otherwise payable in connection with receipt of any consent or approval in connection with the transactions contemplated hereby; 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;(vi) any financing termination or amendment fees or other amounts payable by the Company under the Closing Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttt) " <u>Working Capital</u> " means the Current Assets of the Company less the Current Liabilities of the Company, calculated in accordance with the Working Capital Calculation. For avoidance of doubt, Transaction Expenses paid on the Second Closing Date that are accounted for in the calculation of the Closing Seller Cash Consideration shall not be considered Current Liabilities of the Company for purposes of computing Working Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuu) " <u>Working Capital Calculation</u> " means the calculation of Estimated Working Capital set forth on <u>Exhibit B</u>.

<u>Section 1.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Rules of Construction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise explicitly specified to the contrary,

&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) each reference to a Section, Exhibit or Schedule means a Section of, or Schedule or Exhibit to this Agreement, unless another agreement is specified;

&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) the word "including" will be construed as "including without limitation;"

&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) references to a particular statute or regulation include all rules and regulations thereunder and any predecessor or successor statute, rules or regulation, in each case as amended or otherwise modified from time to time;

&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) words in the singular or plural form include the plural and singular form, respectively

&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) references to a particular Person include such Person's successors and assigns to the extent not prohibited by this Agreement 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;(vi) all pronouns and any variations thereof refer to the masculine, feminine or neuter singular or plural as the identity of the Person or Persons may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The terms "hereof", "herein", "hereunder", "hereto" and "herewith" and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement and not to any particular provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The word "or" shall not be exclusive. All references herein to "$" are to United States dollars.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any accounting term used in this Agreement shall have, unless otherwise specifically provided herein, the meaning customarily given such term in accordance with GAAP and all financial computations hereunder will be computed, unless otherwise specifically provided herein, in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All references herein to any period of days shall mean the relevant number of calendar days unless otherwise specified. Whenever any action must be taken hereunder on or by a day that is not a Business Day, then such action may be validly taken on or by the next day that is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The phrases "date of this Agreement," "date hereof" and terms of similar impart, unless the context otherwise requires, shall be deemed to refer to the date set forth in the preamble of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Whenever this Agreement provides that documents have been "delivered" or "made available" to Purchaser, such documents have been posted in a virtual data room for access by Purchaser or otherwise delivered to Purchaser or its Representatives.

**Article II.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PURCHASE AND SALE OF THE MEMBERSHIP INTERESTS**

<u>Section 2.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase and Sale of the Membership Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the terms and subject to the conditions of this Agreement, on the Second Closing Date, Purchaser shall purchase the Membership Interests from Seller, and Seller shall sell, assign, transfer, convey and deliver the Membership Interests to Purchaser, free and clear of all Liens, for the consideration specified in Section 2.02 below.

<u>Section 2.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Purchase Price</u>; <u>Manner and Payment of Purchase Price; Fractional Shares; Key-Person Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Price</u>. Subject to the adjustments set forth in this Article II above, the aggregate consideration for the Membership Interests shall comprise 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Closing Seller Cash Consideration paid to Seller at Second Closing by wire transfer of immediately available funds;

&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) Purchaser agrees to hire Seller as an at-will employee, with a title of Agency Principal and an annual salary of $150,000.

&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) Purchaser shall acquire Key-Person Insurance to be effective upon the Second Closing Date in an amount not less than the Purchase Price minus the Closing Cash Consideration, for the Earn-Out Period; 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;(iv) Earn-Out Payments, pursuant to <u>Exhibit A</u> of this Agreement of up to an additional $2,722,500, which will be paid in cash and any amount exceed such Earn-Out Base Compensation Amount will be paid in cash (such maximum amount being the " <u>Full Earn Out Amount</u> "), to be paid within 15 days of the completion of the audited financial statements of the Purchaser for the current Earn-Out period, but in no event later than 90 days after the close of such period, (collectively, the " <u>2026 Earn-Out</u>," the "2027 Earn-Out, together with the Closing Cash Consideration, the " <u>Purchase 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) Purchaser shall pay Seller any unpaid portion of the Full Earn-Out Amount within ten (10) days of the occurrence of any of the following during the Earn-Out Period:

&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;&nbsp;&nbsp;A) involuntary termination of Seller's employment with the Company;

&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;&nbsp;&nbsp;B) Company's termination of Seller's employment with the Company without Cause; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) failure of Purchaser to cure a breach by Purchaser of Section 6.01 below hereof within thirty (30) days of written notice of such

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breach from Seller; provided however that such advance notice and cure period shall not be required for any breach that is not capable of cure.

<u>Section 2.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Estimate of Working Capital</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Seller</u> has prepared and on the date hereof delivered to Purchaser a statement (the " <u>Estimated Closing Statement</u> ") setting forth

&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) Seller's reasonable, good faith estimate of the Working Capital as of the close of business on the Second Closing Date, calculated as set forth on the Working Capital Calculation (the " <u>Estimated Working Capital</u> "); 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;(ii) all Indebtedness of the Company as of the close of business on the Second Closing Date other than the Permitted Indebtedness, if any (the " <u>Estimated Indebtedness</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Estimated Closing Statement (including the Estimated Working Capital and the Estimated Indebtedness) have been prepared and calculated in accordance with the past practices of the Company) or as provided in the definitions of this Agreement.

<u>Section 2.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Post-Closing Consideration Ad</u>j<u>ustment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as practicable but in no event more than 120 days following the Second Closing Date, Purchaser shall prepare and deliver to Seller a statement (the " <u>Initial Closing Statement</u> ") setting forth

&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) Purchaser's determination of the Working Capital as of the close of business on the Second Closing Date, calculated in accordance with the Working Capital Calculation (the " <u>Closing Working Capital</u> "); 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;(ii) all Indebtedness of the Company as of the close of business on the Second Closing Date other than the Permitted Indebtedness (the " <u>Closing Indebtedness</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;(iii) The Initial Closing Statement (including the Closing Working Capital and the Closing Indebtedness) shall be prepared and calculated in accordance with GAAP (and, to the extent not inconsistent with GAAP, the past practices of the Company) or as provided in the definitions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller and its accountants shall complete their review of the Initial Closing Statement within 30 days after Purchaser's delivery thereof to Seller. During such review period, Purchaser shall cooperate with and provide Seller and his Representatives with reasonable access to all books and records reasonably requested by Seller to review the Initial Closing Statement (including the calculation and preparation of the Closing Working Capital and the Closing Indebtedness), any work papers prepared by Purchaser or its accountants in connection with such calculations, and Purchaser shall make reasonably available its Representatives responsible for the preparation of the Initial Closing Statement in order to respond to the inquiries of Seller and his Representatives. If Seller objects to the contents of the Initial Closing Statement for any reason, Seller shall, on or before the last day of such 30-day period, so inform Purchaser in writing (a " <u>Seller's Objection</u> "), setting forth a specific description of the basis of its determination and the adjustments to the Initial Closing Statement that Seller believes should be made. Seller shall be deemed to have agreed with all items and amounts of Closing Working Capital and Closing Indebtedness contained in the Initial Closing Statement and not specifically referenced in a timely delivered Seller's Objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Seller timely delivers a Seller's Objection to Purchaser, then, during the 30-day period following delivery of such Seller's Objection, the Parties shall in good faith seek to resolve in writing any differences that they may have with respect to the calculation of Closing Working Capital and Closing Indebtedness. Any disputed items resolved in writing between Purchaser and Seller within such 30-day period shall be final and binding with respect to such items, and if Seller and Purchaser agree in writing on the resolution of each

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disputed item specified by Seller in the Seller's Objection and the amount of the Closing Working Capital and Closing Indebtedness, the amounts so determined shall be final and binding on the Parties for all purposes hereunder. If Seller and Purchaser have not resolved all such differences by the end of such 30 day period, then they shall jointly retain the Independent Accountant, which, acting as an expert and not as an arbitrator, shall determine, on the basis set forth in and in accordance with this Section 2.04, and only with respect to those items specifically described in such Seller's Objection on which Purchaser and Seller have not agreed (the "<u>Disputed Items</u>"), the amount of such Disputed Items. Such determination shall be based solely on the materials submitted by the Parties and the definitions and provisions of this Agreement and not on independent review. Purchaser and Seller shall instruct the Independent Accountant to deliver its written determination to Purchaser and Seller no later than 30 days after submitting the Disputed Items to it for resolution. At the time of retention of the Independent Accountant, Purchaser shall specify in writing to the Independent Accountant and Seller the amount of Purchaser's computation of the Disputed Items ("<u>Purchaser's Position</u>"), and Seller shall specify in writing to the Independent Accountant and to Purchaser the amount of its computation of the Disputed Items ("<u>Seller's Position</u>"). The Independent Accountant's determination shall be conclusive and binding upon the Parties. In resolving each Disputed Item, the Independent Accountant may not assign a value to such Disputed Item that is greater than the greatest value claimed by Purchaser or Seller at the time the Independent Accountant is retained or less than the smallest value claimed for the item by Purchaser or Seller at such time. The scope of the dispute(s) to be resolved by the Independent Accountant is limited to determining the amount of the Disputed Items in a manner consistent with the provisions and definitions of this Agreement, and the Independent Accountant is not to make any other determination unless jointly requested in writing by Purchaser and Seller. The Parties shall cooperate with the Independent Accountant during its resolution of the disagreement and make readily available to the Independent Accountant all relevant personnel and Representatives, books and records and any work papers (including those of the parties' respective accountants, to the extent permitted by such accountants) relating to Disputed Items set forth in the Initial Closing Statement and the Seller's Objection and all other items reasonably requested by the Independent Accountant in connection therewith. The fees and disbursements of the Independent Accountant (collectively, the "<u>Independent Accountant Fees</u>") shall be borne by Purchaser and Seller equally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Initial Closing Statement, including the Closing Working Capital and the Closing Indebtedness, as agreed to or deemed to have been agreed to, in each case in accordance with Section 2.04(c) above between Purchaser and Seller or as determined by the Independent Accountant, as applicable, shall be conclusive and binding on all of the Parties and shall be deemed the " <u>Final Working Capital</u> " and " <u>Final Indebtedness</u> " respectively, for all purposes herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon determination of the Final Working Capital and the Final Indebtedness:

&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) If (a) Final Working Capital minus Estimated Working Capital, less (b) Final Indebtedness minus Estimated Indebtedness, is a positive amount, then Purchaser shall promptly (but in no event later than three Business Days after the final determination) pay such difference to Seller, in cash by wire transfer of immediately available funds to one or more accounts designated in writing by 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If (a) Final Working Capital minus Estimated Working Capital, less (b) Final Indebtedness minus Estimated Indebtedness, is a negative amount, then Purchaser shall have the right to set-off such difference against the amounts payable to Seller pursuant to Section 2.02(a)(v) above, on a pro rata, dollar-for-dollar basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any amounts payable pursuant to <u>Section 2.04(e) above</u> shall be treated by the Parties as adjustments to the Purchase Price for all federal, state, provincial, local and foreign Tax purposes, and the parties agree to file their Tax Returns accordingly, except as otherwise required by a change in applicable Law, or a final determination by the appropriate Taxing Authority or court, which causes such payment not to be treated as an adjustment to the Purchase Price for Tax purposes.

<u>Section 2.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Closin</u>g.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Closings</u>. The consummation of the transactions contemplated by this Agreement (the "Closing") shall occur in two stages: the First Closing and the Second Closing. A Closing shall take place on the First Closing Date (" <u>First Closing</u> "), simultaneously with the execution and delivery of this Agreement by electronic or remote signature. The final Closing shall take place on the Second Closing Date (" <u>Second Closing</u> ") by execution and delivery of the other Transaction Documents, by electronic or other remote exchange of all executed documents, and upon satisfaction of the other closing deliverables required by Section 2.05(b) below and Section 2.05(b) below, subject to the fulfillment or waiver of the applicable conditions precedent as set forth in this Agreement, including the Closing Burden. The transfers and deliveries described in this Article II shall be mutually interdependent and shall be regarded as occurring simultaneously within their respective Closings. Notwithstanding any other provision of this Agreement, no such transfer or delivery related to the First Closing shall become effective or be deemed to occur until all other transfers and deliveries required for the First Closing have occurred or been waived on the First Closing Date, and no such transfer or delivery related to the Second Closing shall become effective or be deemed to occur until all other transfers and deliveries required for the Second Closing have occurred or been waived on the Second Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Second Closing Deliveries of Seller</u>. At the Second Closing, Seller shall deliver to Purchaser:

&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) a receipt for the Closing Cash Consideration (once received from Purchaser);

&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) all minute books, written consents, records, ledgers and registers, and other similar organizational records of the Company to the extent they exist;

&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) the consents, approvals, authorizations or releases of third parties set forth on Section 2.05(b)(iii) of the Disclosure Schedule;

&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) A general release in the form of <u>Exhibit D</u>, duly executed and delivered by 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) a certificate in form and substance reasonably satisfactory to Purchaser certifying that Seller is not a foreign person for purposes of Code Section 1445 or that the purchase is otherwise exempt from withholding under Code Section 1445;

&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;(vi) copies of the final invoices with respect to all Transaction Expenses to be paid by the Company at the Second Closing;

&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;(vii) a certificate in form and substance reasonably satisfactory to Purchaser certifying that Company has fulfilled its Closing Burden;

&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;(viii) an assignment instrument of the Seller evidencing the transfer of ownership to the Purchaser of the Membership Interests;

&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;(ix) Assurances that Seller remains alive and reasonably able to perform hereunder; 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;(x) such other documents, certificates, instruments or writings reasonably requested by Purchaser or its counsel in order to effectuate the transactions contemplated hereby including the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Second Closing Deliveries o</u> f <u>Purchaser</u>. At the Second Closing, Purchaser shall:

&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) pay, or cause to be paid, on behalf of the Company and to the extent unpaid as of immediately prior to the Closing, an amount equal to the estimated Transaction Expenses to each Person who is owed a portion thereof;

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&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) pay or cause to be paid the Closing Cash Consideration to Seller, by wire transfer of immediately available funds to the account designated in writing by 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) deliver an Offer Letter containing employment terms and incentive equity that is agreeable to Seller in his sole discretion; 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;(iv) such other documents, certificates, instruments or writings reasonably requested by Seller or its counsel in order to effectuate the transactions contemplated hereby including the other Transaction Documents.

<u>Section 2.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Termination of the Agreement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the criteria for the Second Closing, including Closing Burden and other closing deliverables set forth in Section 2.05(b) above and Section 2.05(c) above, has not been met within sixty (60) calendar days after the First Closing Date, either Party may terminate this Agreement with respect to the Second Closing by providing written notice to the other Party, *provided, however*, that such terminating Party is not in breach of this Agreement, has made the closing deliverables required of it in Section 2.05 above, and has otherwise acted in good faith and with reasonably diligent efforts towards achieving the Second Closing. Upon such termination, neither Party shall have any further obligations or liabilities to the other Party under this Agreement, including with respect to the Second Closing, except in respect to the obligations contained in this Section 2.06, and any deposits or payments made in anticipation of the Second Closing shall be promptly refunded to the Party that made such deposits or payments, and any covenants and other terms elsewhere in this Agreement shall be immediately void and of no further force or effect. In addition, in the event of such termination of this Agreement, both Parties shall be prohibited from soliciting or hiring any employees of the other Party for a period of two (2) years following termination hereof, and shall hold all Confidential Information learned of the other Party strictly confidential, and return all Confidential Information in its possession.

<u>Section 2.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Method of Cash Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise stated herein, all cash payments made under this Agreement shall be made by wire transfer of immediately available funds to one or more accounts designated by the recipient in writing no fewer than two Business Days immediately preceding the scheduled payment date.

<u>Section 2.08</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim Operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Between the First Closing and the Second Closing, the Seller agrees to operate the Company in accordance with the following terms:

&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>Ordinary Course of Business</u>. The Company shall be operated in the ordinary course of business consistent with past practices, except as otherwise agreed upon in writing by the Parties or as required to comply with the terms of 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Material Decisions.</u> The Company shall not undertake any actions outside the ordinary course of business or make any material decisions, including but not limited to the incurrence of significant debt, the disposal of material assets, or the amendment of material agreements, without the prior written consent of the Purchaser.

&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>Access and Information.</u> The Seller shall ensure that all records, financial statements, and other documents relating to the operation of the Company are made accessible to Purchaser upon reasonable request, subject to Purchaser executing standard confidentiality and non-disclosure obligations to Seller's reasonable satisfaction.

&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>Compliance.</u> The Company shall comply with all applicable laws, regulations, and obligations, including maintaining its status as an S corporation (to the extent

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necessary) until such status ceases on or before the Second Closing Date in coordination with Purchaser.

&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>Coordination and Cooperation</u>. The Parties shall cooperate in good faith to facilitate the Company's operations and ensure the smooth transition and consummation of the Second Closing.

&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;(vi) <u>Modifications and Exceptions</u>. Any modifications or exceptions to the provisions of this Section 2.08 must be agreed upon in writing by the Seller and Purchaser.

&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;(vii) <u>Interim Employment</u>. In the event reasonably requested by Purchaser, Seller agrees to provide employment and/or consulting services to Purchaser related to the Business during the Interim Period. Any such services shall be compensated at an annual rate of One Hundred Fifty Thousand Dollars ($150,000.00) on a prorated daily basis, unless mutually agreed otherwise, paid in accordance with Purchaser's normal payroll schedule.

**Article III.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **REPRESENTATIONS AND WARRANTIES OF SELLER**

Seller hereby represents and warrants to Purchaser that the following statements are true and correct as of the First Closing Date and Second Closing Date:

<u>Section 3.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Authority of Seller</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller has the legal capacity and necessary right, power and authority to execute and deliver, and to perform his obligations under, this Agreement, each other Transaction Document to which Seller is a party, and the other agreements, documents and instruments required pursuant hereto and thereto to which Seller is a party. This Agreement and such other Transaction Documents have been duly executed and delivered by Seller and constitute a legal, valid and binding agreements of Seller, enforceable against Seller in accordance with their terms, and, upon the execution and delivery by Seller of each of the other agreements contemplated hereby to which Seller is a party, such agreements will constitute the valid and legally binding obligations of Seller, enforceable against Seller in accordance with the terms thereof, in each case.

<u>Section 3.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Ownership</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller owns the Membership Interests solely and directly, and Seller has all right, title and interest to the Membership Interests, free and clear of all Liens or any other restrictions on transfer (other than any restrictions on transfer under the Securities Act and any state securities Laws). There is no outstanding contract or other right (contingent or otherwise) with any Person to purchase, redeem, convert into, or otherwise acquire any shares of capital stock, or other Equity Interests in, of the Company, or have any rights to any proceeds from the sale of the Membership Interests. Immediately prior to Closing, there existed no declared or accrued unpaid dividends or distributions with respect to any Equity Interests in favor of Seller.

<u>Section 3.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Investment Experience</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller has such knowledge, skill and experience in business, financial and investment matters that he is capable of evaluating the merits and risks of an investment in Purchaser. Seller has made his own legal, tax, accounting and financial evaluation of the merits and risks of an investment in Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller has had access to the legal, financial, tax and accounting information concerning Purchaser as he deems necessary to enable him to make an informed investment decision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller has had an opportunity to ask questions and receive answers concerning Purchaser and has had full access to such other information concerning Purchaser as Seller has requested.

**Article IV.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **REPRESENTATIONS AND WARRANTIES OF SELLER WITH RESPECT TO THE COMPANY**

Seller hereby represents and warrants to Purchaser that the statements set forth in this Article IV are true and correct as of the First Closing Date and Second Closing Date.

<u>Section 4.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Organization and Business</u>; <u>Power and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a limited liability company duly formed, validly existing and in good standing under the Laws of the state of South Carolina, and possesses full limited liability company power and authority to own, lease and operate its properties and assets as now owned or leased and operated and to carry on its business as it is currently conducted by Seller. The Company is duly licensed or qualified to do business and is in good standing in each foreign jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted by Seller makes such licensing or qualification necessary, except to the extent that the failure to be so licensed or qualified and in good standing as a foreign corporation or other entity would not, individually or in the aggregate, have a Material Adverse Effect. Section 4.01(a) of the Disclosure Schedule contains a complete and accurate list of the jurisdictions in which the Company is qualified to do business. All limited liability company actions taken by the Company in connection with this Agreement and the other Transaction Documents are duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller has provided to Purchaser true, correct and complete copies of any Organizational Documents of the Company (each as amended to date) and (i) the Organizational Documents of the Company are in full force and effect and (ii) the Company is not in default under, or in violation of, any provision of any such Organizational Document. <u>Section 4.01(b)</u> of the Disclosure Schedule sets forth a correct and complete list of the officers and managers of the Company.

<u>Section 4.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The capitalization of the Company consists solely of the Membership Interests, which represent all of the limited liability company interests in the Company. All of the Membership Interests have been duly authorized and validly issued. All of the Membership Interests have been issued and granted in compliance with all applicable Law. None of the Membership Interests were issued in violation of any Contract or any preemptive or similar rights of any Person. The Membership Interests are owned of record and beneficially by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon consummation of the Closing, Purchaser will own all of the Membership Interests, free and clear of all Liens other than any Lien imposed by Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except for the Membership Interests, there are no other outstanding Equity Interests of the Company or any Equity Interests of the Company reserved for issuance. There are no outstanding or authorized options, warrants, convertible securities, subscriptions, call rights, redemption rights, repurchase rights or any other rights, agreements, arrangements or commitments of any kind relating to the issued or unissued limited liability company interests of the Company or obligating Seller or the Company to issue or sell any limited liability company interests of, or any other interest in, the Company. There are no outstanding or authorized equity appreciation rights, phantom equity, performance-based rights or profit participation or similar rights or obligations of the Company. There are no voting trusts, stockholder agreements, proxies or other agreements or understandings in

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effect with respect to the voting or sale or transfer of any of the Membership Interests or any other Equity Interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has not agreed, is not a party to any Contract and is not under any current or prospective obligation to form or participate in or make any capital contribution to or future investment in any Person.

<u>Section 4.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No Conflicts</u>; <u>Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise disclosed in Schedule 4.03, Neither the execution, delivery or performance by Seller of this Agreement or any other Transaction Document to which Seller is or will be a party, nor the consummation of the transactions contemplated hereby and thereby, will (with or without notice or lapse of time or both):

&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) conflict with or result in a violation or breach of, or default under, any provision of the Organizational Documents of the Company or any resolutions adopted by the board of directors of the Company;

&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) conflict with or result in a violation of, or give any Authority or other Person the right to challenge any of the transactions contemplated hereby or exercise any remedy or obtain any relief under, any Law or Order applicable to Seller or the Company or the assets, or operation of the business, of Seller or the Company, to the extent such would, individually or in the aggregate, have a Material Adverse Effect on the Company;

&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) (A) conflict with or result in a violation or breach of; (B) constitute a default or an event that (with or without notice or lapse of time or both) would constitute a default under; (C) result in the acceleration of or create in any party the right to accelerate, terminate, cancel or otherwise modify; or (D) require the consent of, or the giving of notice to, any other Person under, any Contract to which Seller or the Company is a party or is bound or to which any of the properties or assets of Seller or the Company are subject (including any Material Contract), or any Permit affecting the properties, assets or Business of the Company; 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;(iv) result in the creation or imposition of any Lien on any properties or assets of Seller or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No consent, permit, declaration or filing with, or notice to, any Authority is required by or with respect to Seller or the Company in connection with the execution and delivery of this Agreement or any other Transaction Document or the consummation of the transactions contemplated hereby and thereby.

<u>Section 4.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company does not control, directly or indirectly, or have any direct or indirect equity ownership (pursuant to any form of Equity Interests) or participation in any Person.

<u>Section 4.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial Statements</u>; <u>Absence of Certain Changes</u>; <u>Undisclosed Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.05 of the Disclosure Schedule contains true, correct and complete copies of the following financial statements (collectively, the " <u>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;&nbsp;&nbsp;&nbsp;&nbsp;(i) the reviewed balance sheet of the Company as of December 31, 2024, and the related statements of operations for the fiscal period then ended (the " <u>Annual Financial Statements</u> "); 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;(ii) the unaudited balance sheet (the " <u>Latest Balance Sheet</u> ") of the Company, dated as of February 28, 2025 (the " <u>Latest Balance Sheet Date</u> ") and the related unaudited statements of operations for the two-month period then ended (the " <u>Interim Financial Statements</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Financial Statements are (including in all cases the notes thereto, if any), accurate, correct and complete, and have been prepared in accordance with the historical accounting

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practices of the Company throughout the applicable periods involved, subject, in the case of the Interim Financial Statements, to normal and recurring year-end adjustments (which are not, individually or in the aggregate, material) and the absence of notes (that, if presented, would not differ materially from those presented in the Annual Financial Statements). The Financial Statements are based on the books and records of the Company (which books and records are in turn accurate, correct and complete in all material respects), and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the Latest Balance Sheet Date, there has been no Material Adverse Effect on the Company and, except as otherwise contemplated by this Agreement, the Business has been conducted only in the ordinary course of business 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;(i) the Company has not incurred any material Indebtedness;

&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) the Company has not subjected any portion of the assets of the Company to any Lien;

&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) the Company has not sold, assigned or transferred any portion of the tangible assets of the Company in a single transaction or series of related transactions in an amount in excess of $5,000, except in the ordinary course of business or as otherwise specified 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company has not suffered any damage, destruction or extraordinary losses (whether or not covered by insurance) of any material tangible assets or waived any rights of material value to the Company;

&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) the Company has not issued, sold or transferred any Equity Interests in the Company (including the Membership Interests) or other equity securities, securities convertible into any equity securities or warrants, options or other rights to any equity in the Company;

&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;(vi) the Company has not redeemed or purchased any Equity Interests of the Company;

&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;(vii) the Company has not made any capital expenditures or commitments therefor in excess of $10,000 individually or $25,000 in the aggregate;

&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;(viii) the Company has not acquired any Person or business (whether by the acquisition of Equity Interests, the acquisition of assets, merger or otherwise);

&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;(ix) the Company has not entered into any or modified any existing employment, compensation or deferred compensation agreement (or any amendment to any such existing agreement) with any officer, member or employee of the Company, other than minor, ordinary course adjustments (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;(x) the Company has not adopted, amended or terminated any Employee Plan or any Multiemployer Plan or increased any benefits under any Employee Plan or any Multiemployer Plan or granted or increased the amounts of any vacation pay, sick pay, bonus, severance, incentive, disability, profit sharing or other payments;

&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;(xi) the Company has not amended or modified or authorized any amendment or modification to the Organizational Documents of the Company;

&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;(xii) the Company has not introduced any significant change with respect to the operation of the Business, including the Company's method of accounting or principles or practices for financial accounting;

&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;(xiii) the Company has not terminated, or amended or modified in any material respect, any material Contract or instrument of the Company;

&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;(xiv) the Company has not made, changed or revoked any material Tax election, elected or changed any method of accounting for Tax purposes, settled any Legal Action in respect of Taxes or entered into any Contract in respect of Taxes with any Authority;

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&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;(xv) the Company has not increased the compensation payable or paid, whether conditionally or otherwise, to (i) any employee, consultant, independent contractor or agent other than in the ordinary course of business, (ii) any director or officer of the Company or (iii) any Affiliate of Seller or the Company;

&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;(xvi) no insurer (i) has questioned, denied or disputed (or otherwise reserved its rights with respect to) in writing the coverage of any claim pending under any liability policy or (ii) has provided any written notice of cancellation or any other indication that it plans to cancel any liability policy or raise the premiums in a non-ordinary course manner or materially alter the coverage under any liability policy;

&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;(xvii) the Company has not written off as uncollectible any accounts receivable, modified or cancelled any material third-party Indebtedness or written up or written down any of its material assets or revalued its inventory; 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;(xviii) the Company has not entered into any Contract with respect to any of the matters referred to in this Section 4.05(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has no material Liabilities except for (i) Liabilities reflected on and reserved against in the face of the Interim Financial Statements and (ii) that have been incurred in the ordinary course of business consistent with past practice since the Latest Balance Sheet Date and are not, individually or in the aggregate, material to the Company.

<u>Section 4.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Material Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.06 of the Disclosure Schedule sets forth a true, correct and complete list of the following Contracts (including descriptions thereof in the case of oral Contracts) to which the Company is currently party or by which any of the Company's assets or properties are bound (collectively, the " <u>Material Contracts</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;(i) each Contract of the Company involving annual consideration in excess of $25,000 and which, in each case, cannot be cancelled by the Company either without penalty or with less than 90 days' 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;(ii) all Contracts with third party vendors that require the Company to purchase its total requirements of any product or service from such third-party vendor;

&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) all Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax or environmental liability of any Person;

&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) all Contracts that relate to the acquisition or disposition of any Person, Equity Interests in any Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

&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) all broker, distributor, dealer, manufacturer's representative, franchise, or agency, sales promotion, market research, marketing consulting and advertising Contracts to which the Company is a party;

&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;(vi) all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which the Company is a party and which are not cancellable without material penalty or with less than 90 days' 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;(vii) except for Contracts relating to trade receivables, all Contracts relating to Indebtedness (including, without limitation, guarantees) of the Company, entered into in the ordinary course;

&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;(viii) all Contracts that by their terms limit the ability of the Company to compete in any line of business or with any Person or in any geographic area or during any period of time;

&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;(ix) any Contracts to which the Company is a party that provide for any joint venture, partnership or similar arrangement between the Company and a third party;

&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;(x) all Contracts between or among the Company on the one hand and Seller or any Affiliate of Seller (other than the Company) on the other hand;

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&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;(xi) any Contract concerning or consisting of a partnership, limited liability company or joint venture agreement or any other relationship involving the sharing of profits, losses or costs;

&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;(xii) any profit sharing, equity option, equity purchase, equity appreciation, deferred compensation, severance or other plan or arrangement for the benefit of the Company's current or former directors, shareholders, officers or employees, consultants or independent contractors;

&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;(xiii) any Contract (including an Employee Plan) providing for the employment or consultancy (including on an independent contractor basis) of an individual (or, in the case of a consultant or independent contractor, an entity) on a full-time, part- time, consulting or other basis or otherwise providing compensation or other benefits to any director, shareholder, officer, member, manager, employee or consultant; 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;(xiv) any other Contract that is material to the operation of the Business and not previously disclosed pursuant to this Section 4.06.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Material Contract is valid and binding on the Company in accordance with its terms and, to the Seller's knowledge, each other party thereto, and is in full force and effect. None of the Company or, to the Seller's knowledge, any other party thereto is in material breach of or material default under (or is alleged to be in material breach of or material default under), or has provided or received any notice of any intention to terminate, any Material Contract. To Seller's knowledge, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or permit the acceleration or other material changes of any material right or obligation or the loss of any benefit thereunder. Seller has made available to Purchaser complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder).

<u>Section 4.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Clients and Suppliers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.07 of the Disclosure Schedule sets forth a correct and complete list of the top 15 most significant clients (determined by dollar amount of revenue for the 12 months ended December 31, 2024 and 2 months ended February 28, 2025). Since February 28, 2025, no such client has canceled or otherwise terminated, or to the Seller's knowledge, threatened to cancel or otherwise terminate, its relationship with the Company. Since February 28, 2025, none of Seller or the Company has received any written notice that any such client may cancel or otherwise modify or limit its relationship with the Company, or its usage or purchase of the services of the Company either as a result of the transactions contemplated hereby or otherwise.

<u>Section 4.08</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Indebtedness</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.08 <u>(a)</u> of the Disclosure Schedule sets forth a true, correct and complete list of all Indebtedness of the Company and, with respect to Indebtedness for borrowed money, if any, sets forth the borrower, the original lender and the current holder (if different), the original principal balance, and the outstanding principal and accrued and unpaid interest as of the First Closing Date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 4.08(b) of the Disclosure Schedule set forth the items (if any) of Indebtedness that Purchaser and Seller agree are permitted and shall remain the responsibility of Company and Purchaser following Closing (the "Permitted Indebtedness").

<u>Section 4.09</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Title and Sufficiency of Assets</u>; <u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has sufficient title to all assets, or a valid leasehold interest in, easement or right to use, all of its properties and assets reflected in the Financial Statements and those acquired since the Latest Balance Sheet Date (except properties and assets disposed of in

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the ordinary course of business since the Latest Balance Sheet Date), and none of such properties and assets is subject to any Liens other than Permitted Liens. The properties and assets of the Company that are material to operate the Business as currently conducted by the Company are in good operating condition, normal wear and tear excepted. Since January 1, 204, there has not been any significant interruption of the operations of the Business due to inadequate maintenance of the properties and assets of the Company. The properties and assets of the Company are sufficient for Purchaser to carry on the Business from and after the Second Closing Date in the same manner as presently carried on by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company does not own any real property. Section 4.09 of the Disclosure Schedule sets forth a true, correct and complete list of all leases, subleases, licenses or other occupancy agreements under which the Company leases or otherwise occupies real property (each, as the same has been amended, a " <u>Real Property Lease</u> ") and the address of the real property subject to each Real Property Lease (each, a " <u>Leased Real Propert</u> y"). Prior to the date hereof, Seller has provided Purchaser access to a true, correct and complete copy of each Real Property Lease, if any, including all amendments, extensions, renewals, guaranties relating to each Real Property Lease, and each Real Property Lease constitutes the entire agreement between the Company, on the one hand, and each landlord, subtenant or sublandlord, on the other hand, with respect to the Leased Real Property. Assuming good title in the respective landlords, subtenants or sublandlords, each Real Property Lease is a valid and binding obligation of the Company, is in full force and effect, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other Laws affecting creditors' rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a Legal Action at Law or in equity) and neither the Company, nor to the Seller's knowledge, any counterparty to any Real Property Lease is in material breach, violation or default under any Real Property Lease in any respect and no event has occurred that, with notice or lapse of time or both, would constitute such a material breach, violation or default by the Company or, to the Seller's knowledge, any counterparty thereto. The Company has a valid leasehold interest in and to the Leased Real Property free and clear of Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company is not a sublessor or grantor under any sublease or other Contract granting to any other Person the right to possess, lease or occupy the Leased Real Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the Seller's knowledge, there is no pending or threatened, (i) appropriation, condemnation or like action materially affecting the Leased Real Property or (ii) sale or other disposition of the Leased Real Property or any part thereof in lieu of condemnation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All of the land, buildings, structures and other improvements leased, licensed or otherwise used or occupied by the Company in the conduct of the Business are included in the Leased Real Property.

<u>Section 4.10</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Compliance with Laws</u>; <u>Permits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) The Company is, and at all times has been, in compliance with all Laws applicable to the Company or the assets, or operation of the business, of the Company, except for any non-compliance that does not, and would not reasonably be expected to, with the passage of time, have a Material Adverse Effect; (ii) the Company has not at any time received any notice, whether written or oral, alleging any noncompliance by the Company with respect to any such Law; and (iii) no investigation by any Authority regarding a violation of any such Law is pending or, to the Seller's knowledge, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material Permits required for the Company to conduct its business as currently conducted have been obtained by the Company. All Permits of the Company are valid and in full force and effect, and the Company is, and at all times has been, in compliance with

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all such Permits. To Seller's knowledge, no event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension or limitation of any of such Permits. The sale of the Membership Interests to the Purchaser will not revoke, suspend or limit such Permits. All such Permits will continue in full force and effect after giving effect to the Closing and the transactions contemplated hereby and by the other Transaction Documents.

<u>Section 4.11</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Legal Proceedings; Governmental Orders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There is no Legal Action pending or, to the Seller's knowledge, threatened (i) against or by the Company affecting any of its properties or assets (or by or against Seller or any Affiliate thereof and relating to the Company or the Business), or (ii) against the Company, Seller or any Affiliate of Seller that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and, there are no presently existing facts or circumstances that would constitute a reasonable basis therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) <u>Section 4.11(b)</u> of the Disclosure Schedule sets forth a correct and complete list of all outstanding Orders applicable to the Company or the assets, or operation of the business, of the Company, and (ii) the Company is in compliance with the terms of each such outstanding Order.

<u>Section 4.12</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns required to be filed by, or on behalf of, the Company on or prior to the date hereof are true, correct and complete in all material respects, have been prepared in compliance with all applicable Laws, and have been duly and timely filed (taking into account any applicable extensions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has paid all Taxes that were due and payable by the Company on or prior to the date hereof, including all disputed Taxes for which the Company is seeking a refund, and the Seller has paid all income Taxes that were due and payable on or before the date hereof with respect to his allocable share of the Company's income, gains, deductions and credits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All Taxes which the Company is required by Law to withhold and/or collect at or prior to Closing have been withheld or collected and paid over, in each case, in a timely manner, to the proper Taxing Authorities, in each case in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has made available to Purchaser correct and complete copies of all recent Tax Returns filed with respect to the Company, and all examination reports and statements of deficiencies assessed against or agreed to by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Tax deficiency or proposed adjustment which has not been settled or otherwise resolved for any amount of Tax has been proposed, asserted or assessed by any Taxing Authority against the Company or against the Seller with respect to his allocable share of the Company's income, gains, deductions and credit. Neither the Company nor the Seller is the subject of any audit or other proceeding in respect of payment of Taxes for which the Company may be directly liable and to Seller's knowledge, no such proceeding has been threatened. No agreements, waivers, or other arrangements exist providing for an extension of time or statutory periods of limitations with respect to the filing of any Tax Return with respect to the Company or the payment by, or assessment against, the Company for any Tax for which the Company may be directly or indirectly liable and no written request for any such agreement, waiver or other arrangement has been made and is currently outstanding other than a valid application for extension of time for the Company to file its Tax Returns for the 2024 tax year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Legal Actions have been asserted or are threatened against the Company in respect of any Tax for which the Company may be liable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *[Omitted*.]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the assets of the Company are "tax-exempt use property" within the meaning of Section 168(h) of the Code; none of the assets of the Company directly or indirectly secures any Indebtedness the interest on which is tax-exempt under Section 103(a) of the Code; and there are no Liens for Taxes as of the Second Closing Date upon any of the assets of the Company, except for statutory Liens for Taxes not yet due or delinquent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has no Liability for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state, local or foreign Law), as transferee or successor, by contract or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) The Company is not a party to or bound by any Tax indemnity, Tax sharing or Tax allocation agreement, and (ii) the Company has no current or potential contractual obligation to indemnify any other Person with respect to Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company has not been a member of a group with which it has filed or been included in a combined, consolidated or unitary income Tax Return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No claim has ever been made by an Taxing Authority in writing against the Company in a jurisdiction where the Company does not pay Tax or file Tax Returns that the Company is or may be subject to Taxes assessed by such jurisdiction or such Taxing Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Section 4.12(m) of the Disclosure Schedule contains a list of states, territories and jurisdictions (whether foreign or domestic) in which the Company currently files Tax Returns relating to the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company is not and has not been a party to any "reportable transaction," as defined in Section 6707A(c)(1) of the Code and Treasury Regulations Section 1.6011-4(b) (or similar provision of state, local or foreign law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company has not been notified in writing of any Tax claims, audits, or examinations that are proposed or pending with respect to the Company or the Business. No closing agreement or similar binding agreement relating to Taxes has been entered into by the Company with respect to the Business. No written notice of any unpaid assessment relating to Taxes has been received by the Company with respect to the Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) There is no unclaimed property or escheat obligation with respect to property or other assets held or owned by the Company.

<u>Section 4.13</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.13 of the Disclosure Schedule contains a true, correct and complete list (showing in each case the applicable registered owners and registration or application number) as of the First Closing Date, of all Registered Intellectual Property. All Registered Intellectual Property that is material to the conduct of the Business is subsisting, valid and enforceable. The Company exclusively owns or licenses or otherwise has sufficient rights to use, the Intellectual Property that is used in the conduct of the Business as it is currently conducted as of the First Closing Date, free and clear of all Liens (other than Permitted Liens). To Seller's knowledge, no Person has infringed upon or misappropriated any Owned Intellectual Property, nor has the Company infringed upon or misappropriated any Intellectual Property of any other Person. The Company has not received written notice that it has infringed upon or misappropriated any Intellectual Property of any other Person or that any Owned Intellectual Property is invalid or unenforceable. The consummation of the transactions contemplated by this Agreement or any other Transaction Document will not result in the loss or impairment of any Intellectual Property right of the Company in or to any Owned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller and the Company have taken commercially reasonable steps to protect and maintain any trade secrets contained in the Owned Intellectual Property, to the extent that failure to protect or maintain such trade secrets would cause a Material Adverse Effect. All registration, renewal and maintenance fees in respect of the Registered Intellectual Property which were due prior to the First Closing Date, if any, have been duly paid.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All current employees, independent contractors, or service providers of the Company who contributed to the development of any Owned Intellectual Property used in connection with the Business (if any) have assigned all ownership of such Owned Intellectual Property to the Company or such Owned Intellectual Property is owned by the Company as a "work for hire".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has the rights to use all domain names currently used for the Business, each of which is listed on Section 4.13 of the Disclosure Schedule.

<u>Section 4.14</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Employee Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.14(a) of the Disclosure Schedule sets forth a list of all material Employee Plans. None of the Employee Plans has undergone within the last four years or is undergoing an audit or investigation (nor has notice been received of a potential audit or examination) by either the IRS, the United States Department of Labor or any other Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to each Employee Plan, complete and correct copies of the most recent plan documents or written agreements thereof, and all amendments thereto and all related trust or other funding vehicles with respect to each such Employee Plan and, in the case of any Employee Plan that is not in written form, a description of all material aspects of such plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to each Employee Plan: (i) each has been administered in all material respects in compliance with its terms and with all applicable Laws, including ERISA and the Code; (ii) no Legal Actions (other than routine claims for benefits) are pending, or to the Seller's knowledge threatened; (iii) all material premiums, contributions, or other payments required to have been made by Law or under the terms of any Employee Plan or any Contract or agreement relating thereto as of the First Closing Date have been made or properly accrued in accordance with GAAP; (iv) all material reports, returns and similar documents required to be filed with any Authority or distributed to any plan participant have been duly filed or distributed; and (v) no "prohibited transaction" or "reportable event" has occurred within the meaning of the applicable provisions of ERISA or the Code that could reasonably be expected to result in a material liability to the Company or Purchaser or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to each Employee Plan intended to qualify under Section 401(a) of the Code (if any), (i) the IRS has issued a favorable determination letter or opinion letter or advisory letter upon which the Company is entitled to rely under IRS pronouncements, and (ii) no such determination letter, opinion letter or advisory letter has been revoked nor has revocation been threatened and, no event has occurred since the date of such qualification or exemption that would reasonably be expected to adversely affect such qualification or exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Employee Plan is nor was within the past six years, nor do Seller, the Company or any of their ERISA Affiliates have or reasonably expect to have any liability or obligation under, (i) any employee benefit plan subject to Section 412 of the Code or Section 302 or Title IV of ERISA; or (ii) any Multiemployer Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement will not (either alone or in combination with another event) (i) entitle any current or former employee, consultant, officer or director of the Company to severance pay, (ii) result in any payment from the Company or any of the Company's Affiliates becoming due, or increase the amount of any compensation due, to any current or former employee, officer, director or consultant of the Company, (iii) increase any benefits otherwise payable under any Employee Plan, (iv) result in the acceleration of the time of payment or vesting of any compensation or benefits from the Company or any of the Company's Affiliates to any current or former employee, officer, director or consultant of the Company or (v) result in any forgiveness of indebtedness,

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trigger any funding obligation under any Employee Plan or impose any restrictions or limitations on the Company's right to administer, amend or terminate any Employee Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not (either alone or in combination with another event) result in any payment or deemed payment (whether in cash, property, the vesting of property or otherwise) to any "disqualified individual" (as such term is defined in Treasury Regulation Section 1.280G-1) that could reasonably be construed, individually or in combination with any other such payment, to constitute an "excess parachute payment" (as defined in Section 280G(b)(1) of the Code). No Person is entitled to receive any additional payment (including any tax gross-up or other payment) from the Company or its Affiliates as a result of the imposition of the excise Taxes required by Section 4999 of the Code or any Taxes required by Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Employee Plan provides health, medical, or death benefits to current or former employees of the Company beyond their retirement or other termination of service, other than coverage mandated by the Consolidated Omnibus Budget Reconciliation Act of 1985 or as required to avoid the excise Tax under Section 4980B of the Code, or coverage mandated by any similar state group health plan continuation Law, the cost of which is fully paid by such current or former employees or their dependents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and each Employee Plan that is a "group health plan" as defined in Section 733(a)(1) of ERISA (each, a " <u>Health Plan</u> ") (i) is currently in compliance, in all material respects, with the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 (" <u>ACA</u> "), the Health Care and Education Reconciliation Act of 2010, Pub. L. No.111-152 (" <u>HCERA</u> "), and all regulations and guidance issued thereunder (collectively, with ACA and HCERA, the " <u>Health Care Reform Laws</u> ") and (ii) has been in compliance in all material respects with all Health Care Reform Laws since March 23, 2010, in the case of each of clauses (i) and (ii), to the extent the Health Care Reform Laws are applicable thereto. No event has occurred, and no condition or circumstance exists, that could reasonably be expected to subject the Company, any ERISA Affiliate or any Health Plan to material penalties or excise taxes under Code Section 4980D or 4980H or any other provision of the Health Care Reform Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each Employee Plan subject to Section 409A of the Code is in compliance in all material respects in form and operation with Section 409A of the Code and the applicable guidance and regulations thereunder. No payment pursuant to any Employee Plan or other arrangement with any "service provider" (as such term is defined in Section 409A of the Code and the United States Treasury Regulations and IRS guidance thereunder), including the grant, vesting or exercise of any stock option or other equity award, would subject any person to Tax pursuant to Section 409A of the Code.

<u>Section 4.15</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Employees</u>; <u>Employee Relations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Seller has provided the Purchaser an accurate list of all persons who are directors, officers, employees, independent contractors or consultants of the Company as of the First Closing Date, including any employee who is on a leave of absence of any nature, paid or unpaid, authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title or position, if applicable (including whether full or part time); (iii) hire date; (iv) current annual base compensation rate; (v) commission, bonus or other incentive- based compensation; and (vi) a description of the fringe benefits provided to each such individual as of the First Closing Date. As of the First Closing Date, all compensation, including wages, commissions and bonuses, payable to all employees, independent contractors or consultants of the Company for services performed on or prior to the First Closing Date have been paid in full or accrued for on the applicable balance sheet of the Company or are payable pursuant to Article II hereof. No officer or key employee of the

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Company has given written notice to the Company or Seller that such person intends to terminate his or her employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no Legal Actions currently pending against the Company or, to the Seller's knowledge, threatened, arising out of any Laws pertaining to employment or employment practices as such Laws pertain to any current or former employee of the Company. Except as provided in Section 4.11 above of the Disclosure Schedule, the Company is not currently subject to any settlement or consent decree with any present or former employee, employee representative or any Authority relating to claims of discrimination or other claims in respect to employment practices and policies; and the Company is not currently subject to any Order with respect to the labor and employment practices (including practices relating to discrimination) of the Company specifically. The Company has not received written notice of the intent of any Authority responsible for the enforcement of labor or employment Laws to conduct an investigation of the Company with respect to or relating to such Laws and to the Seller's knowledge, no such investigation is in progress. The Company has not incurred in the three years prior to the First Closing Date, and will not incur as a result of Seller's execution of this Agreement, any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar applicable state laws.

<u>Section 4.16</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Accounts Receivable</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All accounts receivable and unbilled invoices (collectively, " <u>Receivables</u> ") reflected on the Latest Balance Sheet and in the records and books of account of the Company since the Latest Balance Sheet Date through the Second Closing Date as being due to the Company have arisen in the ordinary course of business, represent enforceable obligations to the Company arising from sales actually made or services actually performed by the Company in the ordinary course of business and, subject only to consistently recorded reserves for bad debts established as of a date prior to the Second Closing Date in a manner consistent with past practice, have been, or will be, to the Seller's knowledge, current and collected or are, or will be, to the Seller's knowledge, collectible in the aggregate recorded amounts thereof in accordance with their terms (and in no event later than the 90<sup>th</sup>day following the Second Closing Date) and to Seller's knowledge are not and will not be subject to any contests, claims, counterclaims or setoffs. There has been no material adverse change since the Last Balance Sheet Date in the amount or collectability of the Receivables due to the Company or the related provisions or reserves from that reflected in the Latest Balance Sheet. Section 4.16 of the Disclosure Schedule contains a complete and correct list of all Receivables as of the Last Balance Sheet Date, which list sets forth the aging of each Receivable. Except as set forth on Section 4.16 of the Disclosure Schedule, (i) No account debtor or note debtor is delinquent for payments in excess of $2,500 or for more than 90 days, (ii) no account debtor or note debtor has refused or threatened to refuse to pay its obligations to the Company for any reason, or has otherwise made a claim to set-off or similar claim, and (iii) to Seller's knowledge, no account debtor or note debtor is insolvent or bankrupt.

<u>Section 4.17</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.17 of the Disclosure Schedule sets forth a correct and complete list and description of all insurance policies and other forms of insurance related to the ownership and operation of the Business, together with a statement of the aggregate amount of claims paid out, and claims pending, under each such insurance policy or other arrangement from January 1, 2020 through the First Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All such insurance policies are in full force and effect; all premiums due thereon have been paid by the Company through the Second Closing Date; and the Company is otherwise in compliance with the terms and provisions of such policies. Furthermore: (i) the Company

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has not received any notice of cancellation or nonrenewal of any such policy or arrangement nor, to the Seller's knowledge, is the termination of any such policy or arrangement threatened; (ii) there is no claim pending under any of such policies or arrangements as to which coverage has been questioned, denied or disputed by the underwriters of such policies or arrangements; (iii) the Company has not received any notice from any of its insurance carriers that any insurance premiums will be increased in the future or that any insurance coverage presently provided for will not be available to the Company in the future on substantially the same terms as now in effect; and (iv) none of such policies or arrangements provides for experienced-based liability or loss sharing arrangement affecting the Company.

<u>Section 4.18</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No Illegal Payments, Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Company nor any of its directors, officers, managers, employees, agents or members has, to Seller's knowledge: (a) directly or indirectly given or agreed to give any illegal gift, contribution, payment or similar benefit to any supplier, client, governmental official or employee or other Person in order to obtain favorable treatment for the Company (or assist in connection with any actual or proposed transaction with the Company) or made or agreed to make any illegal contribution, or reimbursed any illegal political gift or contribution made by any other person, to any candidate for federal, state, local or foreign public office which might subject the Company to any damage or penalty in any Legal Action or (b) established or maintained any unrecorded fund or asset or made any false entries on any books or records for any purpose on behalf of the Company or as part of the duties of their employment with the Company.

<u>Section 4.19</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Books and Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Books and Records and other financial records of the Company (i) are complete and correct in all material respects and do not contain or reflect any material inaccuracies or discrepancies and (ii) have been maintained in all material respects in accordance with historical business and accounting practices. All transactions of the Company have been accurately and correctly recorded in the Books and Records of the Company in all material respects. At the Closing, all of the Books and Records of the Company will be in the possession or control of the Company.

<u>Section 4.20</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Bank Accounts and Powers of Attorney</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 4.20 of the Disclosure Schedule sets forth each bank, savings institution and other financial institution with which the Company has an account or safe deposit box and the names of all persons authorized to draw thereon or to have access thereto. Each person holding a power of attorney or similar grant of authority on behalf of the Company is identified on Section 4.20 of the Disclosure Schedule. Except as disclosed on Section 4.20 of the Disclosure Schedule, the Company has not given any revocable or irrevocable powers of attorney to any person, firm, corporation or organization relating to the Business for any purpose whatsoever.

<u>Section 4.21</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Related Party Transactions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as disclosed in Schedule 4.21, there are no Related Party Transactions currently in effect or that were entered into (whether or not still in effect) since January 1, 2020, other that payments or other consideration in connection with Seller's employment by the Company or under Employee Plans.

<u>Section 4.22</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Broker or Finder</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No agent, broker, investment banker or financial advisor will be entitled to any broker's or finder's fee or commission in connection with the transactions contemplated under this Agreement.

<u>Section 4.23</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Privacy and Data Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and the conduct of the Business are in material compliance with, and have been in material compliance with, all Data Privacy and Security Requirements. The Company generally has in all material respects, whether formal or informal, implemented and maintained a security plan which implements and monitors commercially reasonable administrative, technical, and physical safeguards reasonably designed to ensure that Personal Data within the Company's possession or control is protected against loss, damage, unauthorized access, unauthorized use, unauthorized modification, or other misuse (such plans, collectively, the " <u>Security Practices</u> "). The Company's Security Practices conform, and at all times have conformed, in all material respects with any public information security statements made by the Company. Except as set forth on Section 4.23 of the Disclosure Schedules, to Seller's knowledge there have not been any actual, alleged or suspected incidents of data security breaches, unauthorized access or use of any of the Company Software or Business Systems, or unauthorized access, acquisition, destruction, damage, disclosure, loss, corruption, alteration, or use of any Business Data. There have not been any claims, allegations, investigations, inquiries, or complaints (whether by a Governmental Authority or any other Person) relating to Data Privacy and Security Requirements. The Transactions will not result in any liabilities in connection with any Data Privacy and Security Requirements.

<u>Section 4.24</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No Untrue Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To Seller's knowledge, no representation or warranty or other statement made by Seller in this Agreement, the Disclosure Schedule, any other Transaction Document or any certificate or other document furnished or to be furnished to Purchaser pursuant to this Agreement or otherwise contains any untrue statement of material fact or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

<u>Section 4.25</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exclusivity of Representations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the representations and warranties contained in this Article IV (as modified by the Company Disclosure Schedule), in the Transaction Documents and any certificate delivered in accordance herewith, none of the Company, the Seller or any other Person has made, makes or shall be deemed to make any other representation or warranty of any kind whatsoever, express or implied, written or oral, at law or in equity, on behalf of the Company or the Seller, or any of their respective Affiliates, including with respect to the Membership Interests or their respective assets and liabilities, and Seller hereby disclaims all other representations and warranties of any kind whatsoever, express or implied, written or oral, at law or in equity, whether made by or on behalf of the Seller, the Company, or any other Person.

**Article V.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **REPRESENTATIONS AND WARRANTIES OF PURCHASER**

Purchaser hereby represents and warrants to Seller that the following statements are true and correct as of the First Closing Date and Second Closing Date:

<u>Section 5.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Organization and Business</u>; <u>Power and Authority; Non-Contravention</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser is a corporation duly organized, validly existing and in good standing under the Laws of the state of Delaware, and possesses full corporate right, power and authority to own, lease and operate its assets as now owned or leased and operated, and is duly qualified and in good standing in each other jurisdiction in which the character of the assets owned, leased or operated by Purchaser requires such qualification, except where the failure to be so qualified would not reasonably be expected to have a material adverse effect on Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchaser has full power and authority to enable it to execute and deliver, and to perform its obligations under, this Agreement and each other Transaction Document to which it is a party and to consummate the transactions contemplated hereby and thereby; and the execution, delivery and performance by Purchaser of this Agreement and each other Transaction Document to which it is a party have been duly authorized by all requisite corporate action on the part of Purchaser. This Agreement and such other Transaction Documents have been duly executed and delivered by Purchaser and constitute legal, valid and binding obligations of Purchaser, enforceable against Purchaser in accordance with their respective terms.

<u>Section 5.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No Conflicts</u>; <u>Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the execution, delivery or performance by Purchaser of this Agreement or any Transaction Document to which Purchaser will be a party, nor the consummation of the transactions contemplated hereby and thereby, will (with or without notice or lapse of time or both):

&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) conflict with or result in a violation or breach of, or default under, any provision of the Organizational Documents of Purchaser or any resolutions adopted by the board of directors of Purchaser;

&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) conflict with or result in a violation of, or give any Authority or other Person the right to challenge any of the transactions contemplated hereby or exercise any remedy or obtain any relief under, any Law or Order applicable to Purchaser or the assets, or operation of the business, of Purchaser;

&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) (A) conflict with or result in a violation or breach of, (B) constitute a default or an event that (with or without notice or lapse of time or both) would constitute a default under, (C) result in the acceleration of or create in any party the right to accelerate, terminate, cancel or otherwise modify, or (D) require the consent of, or the giving of notice to, any other Person under, any Contract to which Purchaser is a party or is bound or to which any of the properties or assets of Purchaser are subject, or any Permit affecting the properties, assets or business of Purchaser; 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;(iv) result in the creation or imposition of any Lien on any properties or assets of Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No consent, permit, declaration or filing with, or notice to, any Authority is required by or with respect to Purchaser in connection with the execution and delivery of this Agreement or any other Transaction Document or the consummation of the transactions contemplated hereby and thereby.

<u>Section 5.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Broker or Finder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No agent, broker, investment banker or financial advisor engaged by or on behalf of Purchaser or any of its Affiliates is or will be entitled to a broker's or finder's fee or commission in connection with the transactions contemplated hereby or the execution, delivery or performance of this Agreement.

<u>Section 5.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Legal Actions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no Legal Actions pending or, to Purchaser's knowledge, threatened against or by Purchaser that challenge or seek to prevent, enjoin or otherwise delay the Transactions.

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<u>Section 5.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Material Changes</u>; <u>Undisclosed Events</u>; <u>Liabilities or Developments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since the date of inception of Purchaser (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect; (ii) the Purchaser has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Purchaser's financial statements pursuant to GAAP ; (iii) the Purchaser has not altered its method of accounting; (iv) the Purchaser has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, (v) the Purchaser has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Purchaser equity compensation plans and (vi) no officer or director of the Purchaser has resigned from any position with the Purchaser.

<u>Section 5.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Purchaser nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Purchaser or any Subsidiary under), nor has the Purchaser or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect

<u>Section 5.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Solvency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser is financially solvent and has sufficient funds, and will maintain sufficient funds, to pay all Purchase Price obligations when due under this Agreement.

**Article VI.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **COVENANTS**

<u>Section 6.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Operation and Management of Business</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the Second Closing and through the end of the Earnout Period (or any earlier termination of Seller's employment with the Company), the Parties agree that the Business will be conducted in accordance with the provisions of this Section 6.01. Purchaser acknowledges and agrees that the covenants set forth in this Section are intended to enable Seller to manage the Business in such a manner as to have sufficient operational control during the Earnout Period to conduct the Business in a manner that in Seller's reasonable discretion is in the best interest of the Business and achieving certain metrics set forth in Exhibit A, receive payment of the Full Earnout Amount, and that Seller would not have entered into this Agreement or sold and transferred the Membership Interests to Purchaser in the absence of the covenants set forth in this Section 6.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Throughout the Earn-Out Period:

&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) Purchaser shall permit Seller to maintain his position as President and Chief Executive Officer of the Company and as the senior-most executive officer of the Company.

&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) Purchaser shall permit Seller to continue to manage all aspects of the Business, subject only to Purchaser's right to approve the matters set forth in Section 6.01(c)

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below, including without limitation all matters in relation to retention or termination of Company employees, selecting and managing new and existing customer engagements, marketing and promoting the Company's services, and managing the Company's office facilities and administrative operations.

&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) Purchaser shall not cause any asset of the Company to be assigned or transferred out of the Company, including by way of a distribution or dividend to Purchaser or its Affiliates, or any Company Assets to be pledged or otherwise become subject to any Lien (other than Permitted Liens); provided however that Purchaser may cause the Company to distribute Excess Cash to Purchaser not more than once per calendar quarter. "Excess Cash" means any Cash held by the Company that Seller and Purchaser, acting reasonably and in good faith, mutually agree is not required to support the Company's operations during the next two calendar quarters in accordance with the Approved Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller agrees not to cause the Company to undertake any of the following without the prior written approval of Purchaser, not to be unreasonably withheld, (which shall be deemed given if so stated in a written or electronic communication from Purchaser's Chief Executive Officer):

&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) Adopt a budget for the Company's ongoing or next subsequent fiscal year (any such budget, once approved by Purchaser, is referred to herein as the " <u>Approved Budget</u> ") or modify by more than $25,000 any line item included in the Approved Budget for any fiscal year;

&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) Incur any capital expenditure or other expense not contemplated in the Approved Budget in an amount exceeding $10,000 in any instance or $50,000 in the aggregate in any fiscal year;

&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) Hire, terminate or make compensation decisions for any officer or employee with base annual compensation in excess of $100,000;

&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) Enter into any new, or modify the existing, real property lease;

&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) Incur Indebtedness in an amount exceeding $25,000 in the aggregate in any fiscal year;

&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;(vi) Cause any Company Assets to be pledged or otherwise become subject to any Lien (other than Permitted Liens);

&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;(vii) Make any change to the Company's Organizational 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;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Issue any Equity Interest; 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;(ix) Enter into any Contract or commitment in respect of any of the matters set forth in the foregoing clauses (i)-(vii).

<u>Section 6.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Agreement to Cooperate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and for so long as Purchaser or the Company is actively contesting or defending against any Legal Action in connection with any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act or transaction involving the Company or the Business relating to periods prior to the Second Closing Date, Seller will cooperate in the contest or defense and provide such testimony as may be required by Purchaser in connection with the contest or defense at the cost and expense of Purchaser (unless and to the extent Purchaser is entitled to indemnification therefor hereunder, in which event such costs and expenses shall be borne by Seller).

<u>Section 6.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Responsibility for Filing Tax Returns for Periods through Second Closing Date</u>. Purchaser shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company that are filed after the Second Closing Date that relate to Pre-Closing Tax Periods (other than in respect to Tax Returns for the 2024 Tax Period, which shall be the sole

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responsibility and discretion of Seller, subject to reasonable advanced notice and review by Purchaser), and Purchaser shall permit Seller to review and comment on each such Tax Return with respect to a Pre-Closing Tax Period at least fifteen days prior to filing and shall make such revisions as are reasonably requested by Seller; provided, however, that notwithstanding the foregoing, (i) Seller shall prepare or cause to be prepared and file or cause to be filed all income Tax Returns for the Company that are filed after the Second Closing Date that relate to Tax periods ending on or before the Second Closing Date (a "PreClosing Period Tax Return"), which shall be prepared and filed in a manner that is consistent with the prior practice of the Company, except as required by applicable Law; and (ii) Seller shall permit Purchaser to review and comment on each such Tax Return at least fifteen days prior to filing If Purchaser disputes any item on such PreClosing Period Tax Return, it shall notify the Seller in writing prior to the expiration of said 15-day period of such disputed item (or items) and the basis for its objection. If Purchaser does not object by written notice within such period, the amount of Taxes shown to be due and payable on such Pre-Closing Period Tax Return shall be deemed to be accepted and agreed upon, and final and conclusive for purposes of this Section 6.03(a). Purchaser and the Seller shall act in good faith to resolve any dispute prior to the due date of any such Pre-Closing Period Tax Return. If Purchaser and the Seller cannot resolve any disputed item(s), the item in question shall be resolved by the Independent Accountant as promptly as practicable, whose determination shall be final and conclusive for purposes of this Section 6.03(a) The fees and expenses of the Independent Accountant shall be paid fifty percent (50%) by Purchaser and fifty percent (50%) by the Seller. The Seller shall timely fill all such Pre- Closing Period Tax Returns; provided, however, if any such Pre-Closing Period Tax Return is filed after the Second Closing Date and the Seller is not authorized to execute and file such Pre- Closing Period Tax Return by applicable Law, Purchaser shall execute and file (or cause to be filed) such PreClosing Period Tax Return (as finally determined pursuant to this Section 6.03(a)) with the applicable Taxing Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cooperation on Tax Matters</u>. Purchaser and Seller shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of Tax Returns by the Company pursuant to this Agreement and any audit, Legal Action or other proceeding with respect to any Taxes for which the Company or the Seller may be liable pursuant to this Agreement (including any liability of the Seller pursuant to Article VII of this Agreement). Such cooperation shall include the retention and (upon the other party's request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. To the extent such books and records are not transferred to Purchaser at or following Closing, Seller agrees to retain or cause to be retained all books and records with respect to Tax matters pertinent to the Company or its assets relating to any taxable period beginning before the Second Closing Date until the expiration of the statute of limitations (and, to the extent notified by Purchaser or the Company, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority. Purchaser and Seller further agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any Taxing Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, with respect to the transactions contemplated hereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certain Taxes</u>. Any transfer, documentary, sales, use, stamp, registration and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement (collectively, " <u>Transfer Taxes</u> ") shall be paid in equal amounts by Purchaser and Seller when they become due. The party legally responsible for filing any Tax Return

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with respect to each applicable Transfer Tax shall file all necessary Tax Returns and other documentation with respect to such Transfer Tax and, if required by applicable law, the other party will, and will cause its Affiliates to, join in the execution of any such Tax Returns and other documentation. The Parties shall cooperate in obtaining any available exemptions with respect to Transfer Taxes, and to otherwise minimize the amount of any Transfer Taxes due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Allocation o</u> f <u>Straddle Period Tax</u>. For purposes of determining the amount of Taxes that are attributable to the Pre-Closing Tax Period with respect to any taxable period that includes (but does not end on) the Second Closing Date (a " <u>Straddle Period</u> "), (i) in the case of any Taxes other than Taxes based upon or related to income or receipts, be deemed to be the amount of such Tax for the entire Tax period (excluding any increase in Taxes for the period as a result of the transfer of the Membership Interests pursuant to this Agreement) multiplied by a fraction the numerator of which is the number of days in the Tax period ending on the Second Closing Date and the denominator of which is the number of days in the entire Tax period, and (ii) in the case of any Tax based upon or related to income or receipts, but including the California minimum tax and LLC fee for the 2025 taxable year, be deemed equal to the amount which would by payable if the relevant Tax period ended on the Second Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Tax Contests</u>. Purchaser shall deliver a written notice to the Seller in writing promptly following any demand, claim, or notice of commencement of a claim, proposed adjustment, assessment, examination or other administrative or court proceeding with respect to Taxes of the Company for which the Seller may be liable (" <u>Tax Contest</u> ") and shall describe in reasonable detail (to the extent known by Purchaser or the Company) the facts constituting the basis for such Tax Contest, the nature of the relief sought, and the amount of the claimed Losses, if any (the " <u>Tax Claim Notice</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;(i) With respect to Tax Contests for Taxes of the Company for a taxable period ending on or before the Second Closing Date, the Seller may elect to assume and control the defense of such Tax Contest by written notice to Purchaser within sixty (60) days after delivery by Purchaser to the Seller of the Tax Claim Notice. If the Seller elects to assume and control the defense of such Tax Contest, he (A) shall bear her own costs and expenses, (B) shall be entitled to engage her own counsel and (C) may (1) pursue or forego any and all administrative appeals, proceedings, hearings and conferences with any Taxing Authority, (2) either pay the Tax claimed or sue for refund where applicable Law permits such refund suit, or (3) contest, settle or compromise the Tax Contest in any permissible manner, and Purchaser shall (and shall cause its Affiliates including the Company) to cooperate with the Seller in pursuing such Tax Contest (including by providing appropriate powers of attorney and executing any and all agreements, instruments and other documents that are necessary or appropriate in connection with the settlement or compromise of any Tax Contest). If the Seller elects to assume the defense of any Tax Contest, the Seller shall keep Purchaser reasonably informed of all material developments and events relating to such Tax Contest, and Purchaser shall have the right to participate in (but not control) the defense of such Tax Contest at its own cost and expense.

&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) In connection with any Tax Contest that relates to Taxes of the Company for a taxable period ending on or before the Second Closing Date that the Seller does not elect to control pursuant to Section 6.03(e)(i) above, such Tax Contest shall be controlled by Purchaser (at its own cost and expense) and the Seller agrees to cooperate with Purchaser in pursuing such Tax Contest, provided, however, that none of Purchaser or its Affiliates (including the Company) shall enter into any settlement or compromise with respect to any such Tax Contest that relates to Taxes of the Company for a taxable period ending on or before the Second Closing Date

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without the prior written consent of the Seller, which consent shall not be unreasonably withheld, conditioned or delayed. In connection with any Tax Contest that is described in this Section 6.03(e)(ii) and controlled by Purchaser, Purchaser shall keep the Seller reasonably informed of all material developments and events relating to such Tax Contest and, at its own cost and expense, the Seller shall have the right to participate in (but not control) the defense of such Tax Contest.

&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) Purchaser and the Seller shall jointly control (at each party's own cost and expense) all Tax Contests relating to Straddle Periods of the Company. The Parties agree to cooperate with each other in pursuing any such Tax Contest (including by Purchaser providing or causing to be provided powers of attorney) and neither Purchaser nor the Seller shall (or shall permit any of their Affiliates including the Company) to settle a Tax Contest relating to a Straddle Period of the Company without the other Party's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Exclusivity. Notwithstanding anything to the contrary contained in this Agreement, Section 6.03(e) shall be the exclusive means by which a Party to this Agreement may seek indemnification relating or attributable to Taxes or Tax Returns (except for any breach or inaccuracy of any representation relating to Taxes set forth in Section 6.03(e), which shall be governed exclusively by Section 7.05).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Limitation on Actions. Without the prior written consent of the Seller, Purchaser will not (and will not permit the Company or Affiliate of Purchaser, to), in respect of any Pre- Closing Tax Period of the Company:

&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) Make, revoke or amend any election relating to Taxes, including any election under Section 338(g) of the Code, or pursuant to Treasury Regulations Section 301.7701- 3 with an effective date earlier than two (2) days after the Second Closing 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) amend, modify or otherwise refile, or cause to be amended, modified or otherwise refiled, any Tax Returns;

&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) extend or waive, or cause to be extended or waived, any statute of limitations or other period for the assessment of any Tax or deficiency;

&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) settle or compromise any Tax Contest; 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;(v) initiate discussions or examinations with any Taxing Authority with respect to Taxes.

<u>Section 6.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Public Announcements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise required by applicable Law (based upon the reasonable advice of counsel) or any rules or requirements of any stock exchange or regulatory or other supervisory body or authority of competent jurisdiction, no Party to this Agreement shall make any public announcements in respect of this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby or otherwise communicate with any news media without the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed), and the Parties shall cooperate as to the timing and contents of any such announcement.

<u>Section 6.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller understands and acknowledges that for a period commencing on the Second Closing Date and ending on the fifth anniversary thereof (the " <u>Restricted Period</u> "), he will have access to and learn about Confidential Information, as defined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement, " <u>Confidential Information</u> " includes, but is not limited to, proprietary information about the Business not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business

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processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller understands and agrees that Confidential Information includes information developed by Seller in the course of her employment by the Company about the Business as if the Company furnished the same Confidential Information to Seller in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to Seller or thereafter becomes generally available to or known by the public thereafter (other than as a direct or indirect result of Seller's breach of her obligations hereunder), information in the Seller's possession free of any obligation of confidence at the time of disclosure thereof or information developed by Seller independently of and without reference to any Confidential Information, in each case, not otherwise related to her employment by the Company or the performance of her obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Company Creation and Use of Confidential Information</u>. Seller understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in respect of the Business. Seller understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information in respect of the Business. This Confidential Information provides the Company with a competitive advantage over others in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disclosure and Use Restrictions</u>. Seller agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the Business and, in any event, not to anyone outside of the direct employ of the Company, Purchaser and their affiliates except as required in the performance of Seller's authorized employment duties to the Company and its affiliates or with the prior consent of Purchaser in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and

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not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company and its affiliates, except as required in the performance of Seller's authorized employment duties to the Company and its affiliates or with the prior consent of the Purchaser in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, or to Seller's professional advisors who have a need to know and are bound by professional confidentially restrictions, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. Seller shall promptly provide written notice of any such order to Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Notice of Immunity Under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016</u>. Notwithstanding any other provision of this Agreement, Seller will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that: is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or is made in a complaint or other document filed under seal in a lawsuit or other proceeding. If Seller files a lawsuit for retaliation by the Company or any of its affiliates for reporting a suspected violation of law, Seller may disclose the Company's or its affiliates' trade secrets to Seller's attorney and use the trade secret information in the court proceeding if Seller files any document containing trade secrets under seal and does not disclose trade secrets, except pursuant to court order.

<u>Section 6.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Restrictive Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Acknowledgement</u>. Seller acknowledges (i) the covenants of the Seller set forth in this Section 6.06 and Section 6.05 above are an essential element of this Agreement and that, but for the agreement of the Seller to comply with these covenants, the Purchaser would not have entered into this Agreement, (ii) this Section 6.06 and Section 6.05 constitute independent covenants that shall not be affected by performance or nonperformance of any other provision of this Agreement by the Purchaser and (iii) the covenants set forth in this Section 6.06 and Section 6.05 are reasonable (with respect to scope, duration and otherwise) and are necessary to protect and preserve the Business. Moreover, the Seller agree that if the scope of any covenant set forth in this Section 6.06 and Section 6.05 shall be held to be too broad to be enforceable under Delaware law, then such covenant shall only be enforceable to the extent allowed under Delaware law and any unenforceable part of such covenant shall be deemed not to be contained in such covenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-Solicitation o</u> f <u>Employees</u>. During the Restricted Period, Seller agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any person who is an employee of the Company. Notwithstanding the foregoing, nothing shall prohibit Seller from general solicitation not otherwise targeted to any specific employee(s) of the Company, in a periodical of general circulation or on the internet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Solicitation o</u> f <u>Customers.</u> Seller understands and acknowledges that because of Seller's experience with and relationship to the Company, Seller will have access to and learn about much or all of the Company's Customer Information. " <u>Customer Information</u> " includes, but is not limited to, names, phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command, pricing information, and other information identifying facts and circumstances specific to the customer. Seller understands and

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acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable harm. Seller agrees and covenants, during the Restricted Period, not to directly or indirectly solicit the customers who are current customers or Prospective Customers of the Company for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or directly or indirectly induce the termination of the current customers or Prospective Customers of the Company as of the Termination Date to terminate their business with the Company. "<u>Prospective Customers</u>" shall mean any and all persons or entities with whom the Company has engaged in substantial discussions for the provision of services. Notwithstanding the foregoing, nothing shall prohibit Seller from publishing in a periodical of general circulation or on the internet.

<u>Section 6.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Further Assurances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Second Closing, each of the parties hereto shall, and shall cause its Affiliates to, from time to time at the reasonable request of another party, without any additional consideration, furnish such requesting party such further information or assurances, execute and deliver such additional documents, instruments and conveyances, and take such other actions and do such other things, as may be reasonably necessary or appropriate to carry out the provisions of this Agreement and the other Transaction Documents and give effect to the transactions contemplated hereby and thereby.

<u>Section 6.08</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>D&O Indemnifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Second Closing Date, Purchaser shall not, and shall cause the Company not to, take any steps that would reasonably be expected to affect adversely the rights of any individual who served as a director or officer of the Company at any time prior to the Second Closing Date (each, a " <u>D&O Indemnified Person</u> ") to be indemnified under any applicable Law, the organizational documents of the Company, or contractual indemnification agreements in place and disclosed to Purchaser, as applicable, as they existed as of the Second Closing Date, against any costs or expenses (including attorneys' fees and expenses of investigation, defense and ongoing monitoring) or Legal Actions, arising out of or pertaining to matters existing or occurring at or prior to the Second Closing Date and relating to the fact that the D&O Indemnified Person was a director or officer of the Company or any of the Company Subsidiaries prior to the Second Closing Date.

**Article VII.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **INDEMNIFICATION**

<u>Section 7.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Survival Period</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the other terms and conditions of this Article VII, each of the representations and warranties set forth in this Agreement, any other Transaction Document or any certificate or other instrument delivered by or on behalf of a Party pursuant to this Agreement, shall survive (together with any right to assert a claim under Section 7.02(a)(i) or Section 7.03(a)(i), as applicable) the Second Closing and the consummation of the transactions contemplated hereby and shall expire on the date that is twelve (12) months after the Second Closing Date; provided, however, that the representations and warranties set forth in (i) Section 3.01, Section 3.02, Section 4.01, Section 4.02, Section 4.04, Section 4.22 <u>, Section 5.01, Section 5.02, Section 5.03, Section 5.07 and Section 5.08</u> shall survive (together with any right to assert a claim under Section 7.02(a)(i)) and Section 7.03(a) indefinitely (the representations and warranties specified in this clause (i) the " <u>Fundamental Representations</u> ") and (ii) Section 4.12 and Section 4.13 shall survive

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(together with any right to assert a claim under Section 7.02(a)(i)) until 60 days after the expiration of the applicable statute of limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the covenants and other agreements contained in this Agreement, any other Transaction Document or any certificate or other instrument delivered by or on behalf of a Party pursuant to this Agreement shall survive (together with any right to assert a claim under Section 7.02(a)(ii) or Section 7.03(a)(ii), as applicable) the Second Closing and the consummation of the transactions contemplated hereby until the later of the expiration of (i) its term and (ii) the applicable statute of limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein, (i) any Claim asserted pursuant to this Article VII by delivery of a Claim Notice prior to the expiration of the applicable survival period set forth in Section 7.01(a) or Section 7.01(b) shall survive until such Claim is fully and finally resolved, and (ii) the delivery of such a Claim Notice shall extend the applicable survival period until such Claim is fully and finally resolved, irrespective of whether the Party delivering such Claim Notice has initiated any Legal Action or otherwise taken any further action in connection with the matters constituting the basis for such claim.

<u>Section 7.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Seller's Indemnification Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the other terms and conditions of this Article VII, from and after the Second Closing, Seller shall indemnify, defend, save and hold each Purchaser Indemnitee harmless against and from, and shall pay and reimburse each of the Purchaser Indemnitees for, any and all Losses incurred or sustained by, or imposed upon, the Purchaser Indemnitees based upon, resulting from or arising out of:

&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 and warranty made by Seller contained in this Agreement, any other Transaction Document or in any certificate or other instrument delivered by or on behalf of Seller pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the breach by Seller of, or failure of Seller to comply with or fulfill, any of the covenants or obligations under this Agreement (including Seller's obligations under this Article VII);

&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 Transaction Expenses not discharged at or prior to the Second Closing, to the extent such Transaction Expenses are not included in the computation of Final Working Capital;

&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) any Pre-Closing Taxes, to the extent such Pre-Closing Taxes are not included in the computation of Final Working Capital; 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;(v) any ERISA Affiliate Liability arising prior to Second Closing. <u>Section 7.03 Purchaser's Indemnification Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the other terms and conditions of this Article VII, from and after the Second Closing, Purchaser shall indemnify, defend, save and hold each Seller Indemnitee harmless against and from, and shall pay and reimburse each of the Seller Indemnitees for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, resulting from, arising out of or relating to:

&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 and warranty made by Purchaser in this Agreement, in any other Transaction Document or in any other certificate or instrument delivered by or on behalf of Purchaser pursuant to this Agreement; 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;(ii) any breach by Purchaser of, or failure by Purchaser to comply with or fulfill, any of the covenants or obligations under this Agreement (including Purchaser's obligations under this Article VII) or 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;(iii) operations of the Company, Purchaser or Business following Second Closing, provided such Losses were not directly caused by Seller's intentional misconduct or gross negligence.

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<u>Section 7.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Limitation and Other Matters Relating to Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall not be liable for any indemnification obligations pursuant to Section 7.02(a) above until the aggregate amount of Losses with respect to matters referred to in Section 7.02(a) above equals $30,000 (the " <u>Seller Basket</u> "), and once the Seller Basket is met, Seller shall be responsible for all Losses in excess of the Seller Basket, up to a maximum aggregate amount of Losses equal to $400,000 (the " <u>Liability Cap</u> "). Notwithstanding anything herein to the contrary, neither the Seller Basket nor the Liability Cap will apply (i) in the case of fraud, (ii) with respect to Seller's indemnification obligations pursuant to any other provision of Section 7.02 above other than Section 7.02(a) above, (iii) with respect to any breach of or inaccuracy in the representations set forth in Section 4.12 above or (iv) with respect to any breach of or inaccuracy in any Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchaser shall not be liable for any indemnification obligations pursuant to Section 7.03(a) above until the aggregate amount of Losses with respect to matters referred to in Section 7.03(a) above equals $25,000 (the " <u>Purchaser Basket</u> "), and once the Purchaser Basket is met, Purchaser shall be responsible for all Losses from the first dollar, including all Losses that comprised a portion of the Purchaser Basket, up to a maximum aggregate amount of Losses equal to the Liability Cap. Notwithstanding anything herein to the contrary, neither the Purchaser Basket nor the Liability Cap will apply in the case of fraud or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of calculating the amount of Losses related to a breach of, any representation or warranty for the purposes of Section 7.02(a) above, any qualification as to materiality (but, for avoidance of doubt, not for purposes of determining whether any such breach has occurred), "Material Adverse Effect" or any other similar qualification or standard contained in Article III above or Article IV above of this Agreement or in any certificate or other instrument delivered by or on behalf of Seller pursuant to this Agreement shall be disregarded (it being understood that the word "Material" in the defined term "Material Contracts" and the qualification as to "Material Adverse Effect" contained in Section 4.05(c) above shall not be disregarded for any of such purposes).

&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, the rights and remedies of the Indemnified Parties shall not be limited by the fact that any Indemnified Party had constructive knowledge (regardless of whether such knowledge was obtained through such Indemnified Party's own investigation or through disclosure by the other Party, its Representatives or any other Person) of any breach, event or circumstance, whether before or after the execution and delivery of this Agreement or the First Closing, but it shall be limited to the extent it can be demonstrated that such Indemnified Party had actual knowledge of such breach, event, or circumstance as of the First or Second Closing. For purposes of Purchaser's "actual knowledge", the actual knowledge of General Manager, Aaron Ealy shall be imputed to Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to the procedures and other limitations set forth herein, and only upon a mutually agreed upon or finally adjudicated indemnity Claim in Purchaser's favor pursuant to Section 7.05, then, upon written notice to Seller, Purchaser may set off any amount to which it may be entitled from Seller under this Agreement against the Closing Cash Consideration Adjustment or Earn Out Payments. Neither the exercise nor failure to exercise such right of setoff will constitute an election of remedies or limit Purchaser in any manner in the enforcement of any other remedies that may be available to it. Notwithstanding the foregoing, if Purchaser sets off an amount pursuant to this Section 7.04(e) and it is later finally mutually determined by the Parties or pursuant to Legal Action that such setoff amount was in excess of the amount which Seller owed to Purchaser hereunder, whether due to insurance coverage pursuant to Section 7.06 below or otherwise, then Purchaser shall pay such excess amount to Seller as promptly as practicable.

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<u>Section 7.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Indemnification Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All claims for indemnification pursuant to this Article VII above shall be made in accordance with the procedures set forth in this Section 7.05. A Person entitled to assert a claim for indemnification (a " <u>Claim</u> ") pursuant to this Article VII (an " <u>Indemnified Part</u> y") shall give the Indemnifying Party written notice of any such Claim (a " <u>Claim Notice</u> "), which notice shall include a description in reasonable detail of (i) the basis for, and nature of, such Claim, including the facts constituting the basis for such Claim, and (ii) the estimated amount of the Losses that have been or may be sustained by the Indemnified Party in connection with such Claim; p <u>rovided</u>, <u>however</u>, that any such Claim Notice need only specify such information to the knowledge of the Indemnified Party as of the date of such Claim Notice and shall not limit or prejudice any of the rights or remedies of any Indemnified Party on the basis of any limitations on the information included in such Claim Notice, including any such limitations made in good faith to preserve the attorney-client privilege, work product doctrine or any other privilege. Any Claim Notice shall be given by the Indemnified Party to the Indemnifying Party, (A) in the case of a Claim in connection with any Legal Action made or brought by any Person (other than a Purchaser Indemnitee or a Seller Indemnitee in connection with this Agreement) against such Indemnified Party (a " <u>Third-Party Claim</u> "), reasonably promptly following receipt of notice of the assertion or commencement of such Legal Action, and (B) in the case of a Claim other than a Third- Party Claim (a " <u>Direct Claim</u> "), reasonably promptly after the Indemnified Party determines that it intends to seek indemnification for such Direct Claim; p <u>rovided</u>, <u>however</u>, that (1) no failure to give such prompt written notice shall relieve the Indemnifying Party of any of its indemnification obligations hereunder except to the extent that the Indemnifying Party is materially and adversely prejudiced by such failure and (2) the right to indemnification of an Indemnified Party in connection with any Third-Party Claim shall not accrue until such Indemnified Party receives notice of the assertion or commencement of a Legal Action in connection with such Third-Party Claim. In respect to a Direct Claim, the Indemnifying Party shall have thirty (30) days after its receipt of such Claim Notice to respond in writing Claim. If the Indemnifying Party does not respond in writing within such thirty (30) day period to deny responsibility for all or some of the Losses in respect of such Claim, the Indemnifying Party shall be deemed to have accepted responsibility for such Claim. In the event the Indemnifying Party properly and timely disputes its responsibility for such Claim or some portion of the Losses thereof, then the Indemnifying Party and Indemnified Party will cooperate in good faith to resolve any such Direct Claim or portion thereof for a period of 30 Business Days before commencing any Legal Action in connection with such Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any Third-Party Claim, the Indemnifying Party shall have the right, by giving written notice to the Indemnified Party within 30 days after delivery of the Claim Notice with respect to such Third-Party Claim, to assume control of the defense of such Third-Party Claim at the Indemnifying Party's expense with counsel of its choosing that is reasonably satisfactory to the Indemnified Party, and the Indemnified Party shall cooperate in good faith in such defense; p <u>rovided</u>, <u>however</u>, that such Indemnifying Party shall not have the right to control the defense of any Third-Party Claim (i) that seeks any injunctive or other equitable relief against the Indemnified Party, (ii) that seeks monetary damages the amount of which would reasonably be expected to exceed any limitation on the amount of Losses for which the Indemnifying Party is responsible hereunder, or (iii) that relates to or arises in connection with any criminal Legal Action. The Indemnified Party or Indemnifying Party, as the case may be, that is not controlling such defense shall have the right, at its own cost and expense, to participate in the defense of any Third-Party Claim with counsel selected by it; p <u>rovided</u>, <u>however</u>, that if, in the reasonable opinion of counsel

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to the Indemnified Party, (A) there are legal defenses available to the Indemnified Party that are different from or additional to those available to the Indemnifying Party or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of separate counsel (including advancement thereof) to the Indemnified Party in each jurisdiction in which the Indemnified Party reasonably determines counsel is required. If the Indemnifying Party elects not to control the defense of such Third-Party Claim (including by failing to promptly notify the Indemnified Party in writing of its election to control such defense in accordance with this Section 7.05(b)), the Indemnified Party may control the defense of such Third-Party Claim with counsel of its choosing, and the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel (including advancement thereof) to the Indemnified Party in each jurisdiction in which the Indemnified Party reasonably determines counsel is required. Each of Purchaser and Seller shall reasonably cooperate with each other in connection with the defense of any Third- Party Claim, including by retaining and providing to the Party controlling such defense records and information that are reasonably relevant to such Third-Party Claim and making available employees on a mutually convenient basis for providing additional information and explanation of any material provided hereunder. The Indemnified Party or Indemnifying Party, as the case may be, that is controlling such defense shall keep the other Party reasonably advised of the status of such Legal Action and the defense thereof and shall consider in good faith any recommendations made by the other Party with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, (i) an Indemnifying Party shall not agree to any settlement of any Third-Party Claim without the prior written consent of the Indemnified Party, such consent not to be unreasonably withheld, conditioned or delayed, p <u>rovided</u>, <u>however</u>, that no such consent shall be required if such settlement would (A) include a complete and unconditional release of each Indemnified Party from all Liabilities or obligations with respect thereto, (B) not impose any Liability or obligation (including any equitable remedies) on the Indemnified Party and (C) not involve a finding or admission of any wrongdoing on the part of the Indemnified Party, and (ii) an Indemnified Party shall not agree to any settlement of a Third-Party Claim without the prior written consent of the Indemnifying Party, such consent not to be unreasonably withheld, conditioned or delayed.

&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 in this Agreement, the procedures for all Tax Contests shall be governed exclusively by Section 6.03(e) and not this Section 7.05. For the avoidance of doubt, Section 6.03(e) above shall be the exclusive process by which a Party to this Agreement may seek indemnification relating or attributable to Taxes or Tax Returns and the provisions of this Section 7.05 shall not apply to any such indemnification except as provided in Section 6.03(f).

<u>Section 7.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Time for Payment of Claims</u>; <u>Insurance</u>; <u>Treatment of Indemnification Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth in this Article VII, any amount owing by any Person pursuant to this Article VII shall be paid within ten (10) Business Days after determination of such amount. The amount which an Indemnifying Party is required to pay to an Indemnified Party pursuant to this Article VII above shall be reduced by any insurance proceeds actually received by the Indemnified Party that actually reduce the amount of the Loss (net of any costs, expenses, premiums or taxes incurred in connection therewith (including but not limited to any future increase in insurance premiums, retroactive premiums, costs associated with any loss of insurance and replacement thereof, and costs incurred in

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seeking such collection of proceeds)); p<u>rovided</u>, that the Indemnified Party shall not be required to recover under insurance policies or indemnity, contribution or other similar agreements for any Losses prior to seeking indemnification under this Agreement; p<u>rovided</u>, <u>further</u>, that the existence of a claim by an Indemnified Party for insurance or against a third party in respect of any Loss shall not delay any payment pursuant to the indemnification provisions contained in this Article VII above and otherwise determined to be due and owing by an Indemnifying Party. Notwithstanding the foregoing, if an Indemnifying Party pays an Indemnified Party an amount pursuant to this Article VII above which the Indemnified Party later actually recovers from insurance or another third party, the Indemnified Party shall promptly repay such amount to the Indemnifying Party, less the costs of recovery. All amounts paid by Purchaser or Seller pursuant to the indemnification provisions of this Agreement shall be treated as adjustments to the Purchase Price for all Tax purposes to the extent permitted by Law.

<u>Section 7.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Indemnification Exclusive Remedy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 7.07(b) below, and except as provided in Section 7.05(d) above, from and after the Second Closing, the Parties acknowledge and agree that this Article VII above shall be the sole and exclusive remedy of the Indemnified Parties, including Purchaser and Seller, with respect to any claims for Losses for which indemnification is provided hereunder; p <u>rovided</u>, <u>however</u>, that nothing in this Section 7.07(a) shall limit the rights or remedies of, or constitute a waiver of any rights or remedies by, any Person pursuant to (or shall otherwise operate to interfere with the operation of) Section 2.04 or Section 8.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, nothing in this Article VII above (including Section 7.04 and Section 7.07(a)) shall limit (i) the rights or remedies of any Person under this Agreement following the Second Closing Date based upon or in connection with fraud or intentional misconduct, (ii) any Party's right to bring claims based on fraud or intentional misrepresentation with respect to this Agreement at any time following the Second Closing Date (which such right shall survive indefinitely or until the latest time permitted by applicable Law), or (iii) any Party's right to obtain specific performance or other injunctive relief with respect to any such breach or alleged breach of any such covenant or agreement.

**Article VIII.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **MISCELLANEOUS**

<u>Section 8.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fees, Expenses and Other Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Transaction Expenses shall be borne solely and entirely by the Party that has incurred such costs and expenses.

<u>Section 8.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices and other communications which by any provision of this Agreement are required or permitted to be given shall be given in writing and shall be sent to such other person(s), address(es), email address(es) or facsimile number(s) as the Party to receive any such notice or communication may have designated by written notice to the other Party. Such notice shall be deemed given: (a) when received if given in person; (b) on the date of transmission if sent by facsimile, electronic mail or other wire transmission (receipt confirmed); (c) three days after being deposited in the U.S. mail, certified or registered mail, postage prepaid; (d) if sent domestically by a nationally recognized overnight delivery service, the first day following the date given to such overnight delivery service; and (e) if sent internationally by an internationally recognized overnight delivery service, the second day following the date given to such overnight delivery service.

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| &nbsp;&nbsp;If to Purchaser | &nbsp;&nbsp;Trucker Path Insurance, Inc.<br>45 W Buchanan Street<br>Phoenix, Arizona 85003<br>Attention: Trucker Path Insurance, General Manager<br><u>truckerpathinsurance@truckerpath.com</u><br>with copies:<br>Trucker Path<br>45 W Buchanan Street<br>Phoenix, Arizona 85003<br>Attention: Trucker Path Legal<br><u>truckerpathlegal@truckerpath.com</u> |
| &nbsp;&nbsp;If to Seller | &nbsp;&nbsp;Truckers Best Insurance LLC |

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<u>Section 8.03</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Waivers</u>; <u>Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, modified, supplemented, waived, discharged or terminated other than by a written instrument signed, in the case of a waiver, by the Party against whom the waiver is to be effective, and, in the case of an amendment, modification, supplement or discharge, by Seller and Purchaser. No delay on the part of any Party at any time or times in the exercise of any right or remedy shall operate as a waiver thereof. Any waiver or consent may be given subject to satisfaction of conditions stated therein. The failure to insist upon the strict provisions of any covenant, term, condition or other provision of this Agreement or any other Transaction Document or to exercise any right or remedy hereunder shall not constitute a waiver of any such covenant, term, condition or other provision hereof or default in connection therewith. The waiver of any covenant, term, condition or other provision hereof or default hereunder shall not affect or alter this Agreement or any other Transaction Document in any other respect, and each and every covenant, term, condition or other provision of this Agreement or any Transaction Document shall, in such event, continue in full force and effect, except as so waived, and shall be operative with respect to any other then existing or subsequent default in connection herewith, unless specifically stated so in writing.

<u>Section 8.04</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Entire Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement (together with the other Transaction Documents and any other documents delivered or to be delivered in connection herewith) constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements, arrangements, covenants, promises, conditions, undertakings, inducements, representations, warranties and negotiations, expressed or implied, oral or written, between the Parties, with respect to the subject matter hereof.

<u>Section 8.05</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned or delegated, in whole or in part, by either Party without the prior written consent of the other Party, and any purported assignment or delegation in contravention of this <u>Section 8.05</u> shall be null and void and of no force and effect. Notwithstanding the preceding sentence, following the expiration of the Earn Out Period, Purchaser may, without the prior written consent of Seller, assign its rights under this Agreement, in whole or in part, to one or more of its Affiliates; provided, however, that no such assignment shall relieve Purchaser of its obligations hereunder. Subject to the preceding sentences of this

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<u>Section 8.05</u>, this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the Parties and their respective successors and permitted assigns.

<u>Section 8.06</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Governing Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all matters, claims, controversies, disputes, suits, actions or proceedings arising out of or relating to this Agreement and the negotiation, execution or performance of this Agreement or any of the transactions contemplated hereby, including all rights of the Parties (whether sounding in contract, tort, common or statutory law, equity or otherwise) in connection therewith, shall be interpreted, construed and governed by and in accordance with, and enforced pursuant to, the internal Laws of the state of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the state of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the state of Delaware.

<u>Section 8.07</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Jurisdiction</u>; <u>Forum</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties agree that the appropriate and exclusive forum for any dispute between any of the Parties arising out of this Agreement shall be in any state or federal court in Charleston County, South Carolina, and the Parties further agree that the Parties will not (and will not permit their respective Affiliates to) bring suit with respect to any disputes arising out of this Agreement in any court or jurisdiction other than the above-specified courts; p <u>rovided</u>, <u>however</u>, that the foregoing shall not limit the rights of a Party to obtain execution of judgment in any other jurisdiction. The Parties waive any defense of inconvenient forum to the maintenance of any dispute so brought in the above-specified courts. The Parties further agree, to the extent permitted by applicable Law, that final and non-appealable judgment in any dispute contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the fact and amount of such judgment. The Parties irrevocably consent to the service of process in any dispute by the mailing of copies thereof by registered or certified mail, return receipt requested, first class postage prepaid to the addresses set forth in Section 8.02 above or such other address as specified by a Party in accordance with Section 8.02 above. Nothing in this Agreement will affect the right of any Party to serve process in any other manner permitted by applicable Law.

<u>Section 8.08</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Waiver of Trial by Jury</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) EACH OF THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, INCLUDING TO ENFORCE OR DEFEND ANY RIGHTS HEREUNDER, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

<u>Section 8.09</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this Agreement, including without limitation Section 7.07 above hereof, any and all remedies herein expressly conferred upon a Party will be deemed cumulative with and not exclusive of any other remedy expressly conferred hereby, and the exercise by a Party of any one such remedy will not preclude the exercise of any other such remedy. The Parties agree that irreparable damage and harm would occur in the event that the restrictive covenants set forth in Article 6 were not performed in accordance with its terms and that monetary damages would be an inadequate remedy therefor. Accordingly, each of the Parties agrees that, in the event of any such breach or threatened breach of any

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the restrictive covenants by such Party, the other Party shall be entitled to seek an injunction or injunctions, specific performance and other equitable relief to prevent or restrain breaches or threatened breaches hereof and to specifically enforce the terms and provisions thereof. A Party seeking an order or injunction to prevent breaches of Article 6 of this Agreement or to enforce specifically the terms and provisions hereof shall not be required to provide, furnish or post any bond or other security in connection with or as a condition to obtaining any such order or injunction, and each Party hereby irrevocably waives any right it may have to require the provision, furnishing or posting of any such bond or other security. In the event that any Legal Action should be brought in equity to enforce the provisions of this Agreement, each Party agrees that it shall not allege, and each Party hereby waives the defense, that there is an adequate remedy available at law.

<u>Section 8.10</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>No Third-Party Beneficiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except to the extent provided in Article VII above and Section 6.06 above (the provisions of which shall inure to the benefit of the Persons referenced therein as third-party beneficiaries of such provisions, including all Purchaser Indemnitees and Seller Indemnitees), 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 be construed to confer upon any other Person any legal or equitable rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

<u>Section 8.11</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Counterparts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, binding upon all of the Parties. In pleading or proving any provision of this Agreement, it shall not be necessary to produce more than one set of such counterparts. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

<u>Section 8.12</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Headings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

[Signature Page Follows]

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|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;**Page 45 of 45** |

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed as of the Signing Date.

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| | | | |
|:---|:---|:---|:---|
| **TRUCKER PATH INSURANCE, INC.** | **TRUCKER PATH INSURANCE, INC.** | **TRUCKERS BEST INSURANCE LLC.** | **TRUCKERS BEST INSURANCE LLC.** |
| **By:** | **/s/ Aaron Ealy** | **By:** | **/s/ Daniel Raykes** |
| Name:  | Aaron Ealy | Name:  | Daniel Raykes |
| Title:  | General Manager | Title:  | President |

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| | |
|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 1 of 1 |

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**EXHIBIT A**

**EARN OUT 2026 SCHEDULE**

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| | |
|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 1 of 2 |

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*Membership Interest Purchase Agreement*

**EXHIBIT A**

**EARN OUT 2027 SCHEDULE**

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| | |
|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 2 of 2 |

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**EXHIBIT B**

**WORKING CAPITAL CALCULATION**

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| | |
|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 1 of 1 |

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**EXHIBIT C**

**CURRENT ASSETS AND CURRENT LIABILITIES**

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|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 1 of 1 |

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**EXHIBIT D**

**GENERAL RELEASE AGREEMENT**

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| | |
|:---|:---|
| **CONFIDENTIAL** | &nbsp;&nbsp;Page 1 of 1 |

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Joseph Chen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Moatable, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in exchange act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 15, 2025 |  |
|  | /s/ Joseph Chen |
|  | Joseph Chen |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Scott Stone, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Moatable, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 15, 2025 |  |
|  | /s/ Scott Stone |
|  | Scott Stone |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

**Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350),** Joseph Chen, Chief Executive Officer of Moatable, Inc. (the "Company"), and Scott Stone, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's Quarterly Report on Form 10-Q for the period ended June 30, 2025, to which this Certification is attached as Exhibit 32.1 (the "Periodic Report"), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | |
|:---|:---|
| Date: August 15, 2025 |  |
| /s/ Joseph Chen | /s/ Scott Stone |
| Joseph Chen | Scott Stone |
| Chief Executive Officer | Chief Financial Officer |

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This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Moatable, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

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