# EDGAR Filing Document

**Accession Number:** 0000889971
**File Stem:** 0001437749-26-001904
**Filing Date:** 2026-1
**Character Count:** 277783
**Document Hash:** caf5b9a50d3435c065934fe40bb477fe
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-001904.hdr.sgml**: 20260123

**ACCESSION NUMBER**: 0001437749-26-001904

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260120

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

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

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

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

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260123

**DATE AS OF CHANGE**: 20260123

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LIGHTPATH TECHNOLOGIES INC
- **CENTRAL INDEX KEY:** 0000889971
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 860708398
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-27548
- **FILM NUMBER:** 26556462

**BUSINESS ADDRESS:**
- **STREET 1:** 2603 CHALLENGER TECH CT
- **STREET 2:** STE 100
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32826-2716
- **BUSINESS PHONE:** 4073824003

**MAIL ADDRESS:**
- **STREET 1:** 2603 CHALLENGER TECH CT
- **STREET 2:** STE 100
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32826-2716

?xml version='1.0' encoding='ASCII'? lpth20260123_8k.htm

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**January 20, 2026**

**Date of Report (Date of earliest event reported)**

---

| |
|:---|
| **LIGHTPATH TECHNOLOGIES, INC.** |
| **(Exact name of registrant as specified in its charter)** |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **000-27548** | **86-0708398** |
| **(State or other jurisdiction of** <br> **incorporation or organization)** | **(Commission** <br> **File Number)** | **(I.R.S. Employer** <br> **Identification Number)** |

---

**2603 Challenger Tech Court, Suite 100**

**Orlando, Florida 32826**

**(Address of principal executive office, including zip code)**

**(407) 382-4003**

**(Registrant**'**s telephone number, including area code)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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

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

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

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

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A Common Stock, par value $0.01 | LPTH | The Nasdaq Stock Market, LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).

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 providing pursuant to Section 13(a) of the Exchange Act. ☐

------

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

*Asset Purchase Agreement*

On January 20, 2026, LightPath Technologies, Inc. (the "Company") entered into an Asset Purchase Agreement (the "Asset Purchase Agreement"), by and among the Company, Amorphous Materials, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company ("Buyer"), Amorphous Materials, Inc., a Texas corporation ("Seller") and other parties thereto, pursuant to which, subject to the terms and conditions set forth in the Asset Purchase Agreement, Buyer has agreed to acquire substantially all of the assets (collectively, the "Assets") and assume and acquire certain of the rights and liabilities of Seller (collectively, the "Liabilities" and such acquisition of Assets and assumption of the Liabilities together, the "Transaction") relating to Seller's business of compounding and melting a broad range of Chalcogenide glasses for third-party manufacturers.

The aggregate consideration payable by the Company to Seller under the Asset Purchase Agreement in connection with the Transaction will not exceed $10.0 million and will consist of (i) a closing cash payment of $7.0 million (the "Cash Consideration") and (ii) contingent consideration that will not exceed $3.0 million (the "Contingent Consideration"). The Contingent Consideration, if earned, is payable in shares of the Company's Class A Common Stock, par value $0.01 per share ("Common Stock"), to be issued in up to six tranches of $500,000 each divided by the LPTH Stock Price (as calculated pursuant to the Asset Purchase Agreement) upon the achievement of certain milestones set forth in the Asset Purchase Agreement. As of January 20, 2026, Seller has satisfied the first milestone contemplated by the Contingent Consideration Payments and received an aggregate of 39,897 shares of Common Stock as of the Closing Date (as defined below).

The Asset Purchase Agreement contains customary representations, warranties, conditions and indemnification obligations of the parties. The closing of the Asset Purchase Agreement was subject to the satisfaction or waiver of customary closing conditions set forth in the Asset Purchase Agreement. The Transaction closed (the "Closing") on January 21, 2026 (the "Closing Date"). Other than in respect of the Transaction, there are no material relationships between the Company, Buyer or its affiliates, on the one hand, and Seller, on the other hand.

The foregoing description of the Asset Purchase Agreement is not complete and is subject to and qualified in its entirety by reference to the Asset Purchase Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

*Lock-Up Agreements* 

At Closing, the Company entered into lock-up agreements with Seller and certain shareholders of Seller, whereby such shareholders have agreed to not sell or transfer any of the Company's securities that they hold, subject to certain exceptions, for a period of six (6) months following the Closing (the "Lock-Up Period"). In addition, such holders are subject to certain leak-out restrictions beginning immediately upon the end of the Lock-Up Period and ending six (6) months from such date.

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

The information included in Item 1.01 above is incorporated by reference into this Item 2.01.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

The information included in Item 1.01 above is incorporated by reference into this Item 2.03.

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

The information included in Item 1.01 above is incorporated by reference into this Item 3.02. The securities described in this Current Report on Form 8-K were offered and will be issued in reliance upon exemptions from registration provided by Section 4(a)(2) under the Securities Act and Regulation D promulgated thereunder and corresponding provisions of state securities laws. Accordingly, none of the securities to be issued in the Transaction will have been registered under the Securities Act of 1933, as amended, as of the Closing Date, and until registered, these securities may not be offered or sold in the United States absent registration or availability of an applicable exemption from registration.

------

**Item 7.01 Regulation FD Disclosure.**

On January 20, 2026, the Company issued a press release announcing the entry into the Asset Purchase Agreement. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

*Forward Looking Statements*

*This Current Report on Form 8-K contains* "*forward-looking statements*" *within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding: the payment of the Contingent Consideration Payments, if at all, and other statements containing the words* "*anticipate,*" "*believe,*" "*continue,*" "*could,*" "*estimate,*" "*expect,*" "*intend,*" "*may,*" "*plan,*" "*potential,*" "*predict,*" "*project,*" "*should,*" "*target,*" "*would,*" "*will,*" "*working*" *and similar expressions. Any forward-looking statements are based on management*'*s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in, or implied by, such forward-looking statements. These risks and uncertainties include, but are not limited to, important risks and uncertainties associated with: the Company*'*s obligations with respect to the Contingent Consideration Payments. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company*'*s actual results to differ materially from those contained in the forward-looking statements, see the* "*Risk Factors*" *section, as well as discussions of potential risks, uncertainties and other important factors, in the Company*'*s most recent filings with the SEC. In addition, the forward looking statements included in this Current Report on Form 8-K represent the Company*'*s views as of the date hereof and should not be relied upon as representing the Company*'*s views as of any date subsequent to the date hereof. The Company anticipates that subsequent events and developments will cause the Company*'*s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.*

**Item 9.01 Financial Statements and Exhibits.**

(d) ---

| | |
|:---|:---|
| **Exhibit** <br> **No.** | **Description** |
| 10.1\* | [Asset Purchase Agreement, dated January 20, 2026, by and among LightPath Technologies, Inc., Amorphous Materials, LLC, a Delaware limited liability company, Amorphous Materials, Inc., a Texas corporation and other parties thereto.](ex_911153.htm) |
| 99.1 | [Press Release of LightPath Technologies, Inc., dated January 20, 2026.](ex_911154.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

\* Schedules and certain exhibits have been omitted pursuant to Items 601(a)(5) and/or 601(b)(10)(iv) of Regulation S-K. The issuer hereby undertakes to furnish supplementally a copy of any omitted schedule or exhibit to such agreement to the U.S. Securities and Exchange Commission upon request.

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **LIGHTPATH TECHNOLOGIES, INC.** | **LIGHTPATH TECHNOLOGIES, INC.** |
| Dated: January 23, 2026 | By: | /s/ Albert Miranda |
|  |  | *Albert Miranda, Chief Financial Officer* |

---

## Exhibit 10.1

**Exhibit 10.1**

***<u>EXECUTION VERSION</u>***

------

**ASSET PURCHASE AGREEMENT**

**BY AND AMONG**

**LIGHTPATH TECHNOLOGIES, INC., AMORPHOUS MATERIALS, LLC, AMORPHOUS MATERIALS, INC., THE UNDERSIGNED SHAREHOLDERS OF SELLER, AND**

**MARK F. HILTON, AS SELLER REPRESENTATIVE**

**DATED AS OF JANUARY 20, 2026**

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| **ARTICLE I DEFINITIONS** | **ARTICLE I DEFINITIONS** | **1** |
| 1.1 | **Certain Definitions** | 1 |
| 1.2 | **Table of Defined Terms** | 9 |
| **ARTICLE II SALE AND PURCHASE** | **ARTICLE II SALE AND PURCHASE** | **12** |
| 2.1 | **Acquired Assets** | 12 |
| 2.2 | **Excluded Assets.** | 13 |
| 2.3 | **Assumed Liabilities; Retained Liabilities** | 13 |
| 2.4 | **Non-Assignment of Certain Acquired Assets** | 14 |
| 2.5 | **Payment of Purchase Price.** | 14 |
| 2.6 | **Post-Closing Adjustment** | 16 |
| 2.7 | **Closing** | 18 |
| 2.8 | **Deliveries by Seller and the Owners** | 18 |
| 2.9 | **Deliveries by LPTH and Buyer** | 19 |
| 2.10 | **Purchase Price Allocation** | 20 |
| 2.11 | **Withholding** | 20 |
| **ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER AND OWNERS** | **ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER AND OWNERS** | **20** |
| 3.1 | **Organization and Qualification** | 20 |
| 3.2 | **Organizational Documents** | 21 |
| 3.3 | **Capitalization** | 21 |
| 3.4 | **Authority; Enforceability** | 21 |
| 3.5 | **No Conflict; Required Filings and Consents** | 22 |
| 3.6 | **Company Contracts** | 22 |
| 3.7 | **Government Contracts** | 24 |
| 3.8 | **Compliance** | 25 |
| 3.9 | **Financial Statements** | 26 |
| 3.10 | **Absence of Certain Changes or Events** | 27 |
| 3.11 | **Absence of Litigation, Claims and Orders** | 28 |
| 3.12 | **Employee Benefit Plans** | 28 |
| 3.13 | **Labor Matters** | 30 |
| 3.14 | **Real Property and Assets** | 32 |
| 3.15 | **Taxes** | 32 |
| 3.16 | **Intellectual Property** | 35 |
| 3.17 | **Data Privacy, Security and Information Technology** | 36 |
| 3.18 | **Insurance** | 38 |
| 3.19 | **Environmental Matters** | 38 |
| 3.20 | **Brokers** | 39 |
| 3.21 | **Customers and Vendors** | 39 |
| 3.22 | **Accounts Receivable and Accounts Payable** | 39 |
| 3.23 | **Affiliate Transactions; Related Businesses** | 40 |
| 3.24 | **Books of Account; Records** | 40 |
| 3.25 | **Pandemic Matters** | 40 |
| 3.26 | **Inventories** | 40 |
| 3.27 | **Full Disclosure** | 40 |
| 3.28 | **Exclusive Representations; Disclaimer of Other Warranties** | 41 |
| **ARTICLE IV REPRESENTATIONS AND WARRANTIES OF LPTH AND BUYER** | **ARTICLE IV REPRESENTATIONS AND WARRANTIES OF LPTH AND BUYER** | **41** |
| 4.1 | **Organization and Qualification** | 41 |
| 4.2 | **Authority; Enforceability** | 41 |

---

-i-

------

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
|  |  | Page |
| 4.3 | **No Conflict; Required Filings and Consents** | 42 |
| 4.4 | **SEC Documents** | 42 |
| 4.5 | **LPTH Stock** | 42 |
| 4.6 | **Absence of Litigation, Claims and Orders** | 42 |
| 4.7 | **Brokers** | 42 |
| **ARTICLE V ADDITIONAL AGREEMENTS** | **ARTICLE V ADDITIONAL AGREEMENTS** | **43** |
| 5.1 | **Further Assurances; Closing Efforts** | 43 |
| 5.2 | **Confidential Information** | 43 |
| 5.3 | **Restrictive Covenants** | 44 |
| 5.4 | **Employees and Employee Benefits Matters** | 46 |
| 5.5 | **Retained Liabilities** | 46 |
| 5.6 | **Forwarding of Funds** | 47 |
| 5.7 | **Conduct of Business** | 47 |
| 5.8 | **No Solicitation of Other Bids.** | 47 |
| 5.9 | **Financing Matters** | 48 |
| 5.10 | **Access to Information; Environmental Inspections** | 48 |
| 5.11 | **Maintain Existence; Change of Name** | 49 |
| 5.12 | **Interim Financial Statements** | 49 |
| **ARTICLE VI TAX MATTERS** | **ARTICLE VI TAX MATTERS** | **49** |
| 6.1 | **Filing of Tax Returns** | 49 |
| 6.2 | **Straddle Periods** | 50 |
| 6.3 | **Cooperation on Tax Matters** | 50 |
| 6.4 | **Transfer Taxes** | 50 |
| **ARTICLE VII CONDITIONS TO CLOSING** | **ARTICLE VII CONDITIONS TO CLOSING** | **51** |
| 7.1 | **Mutual Conditions** | 51 |
| 7.2 | **Conditions to Obligations of Seller and the Owners** | 51 |
| 7.3 | **Conditions to Obligations of LPTH and Buyer** | 51 |
| 7.4 | **Frustration of Closing Conditions** | 52 |
| **ARTICLE VIII SURVIVAL AND INDEMNIFICATION** | **ARTICLE VIII SURVIVAL AND INDEMNIFICATION** | **52** |
| 8.1 | **Survival of Representations and Warranties and Covenants** | 52 |
| 8.2 | **Indemnification** | 53 |
| 8.3 | **Calculation of Losses; Other Indemnification Matters** | 54 |
| 8.4 | **Additional Limitations on Indemnification Obligations** | 55 |
| 8.5 | **Indemnification Procedures** | 55 |
| 8.6 | **Adjustment to Purchase Price** | 56 |
| 8.7 | **Priority of Recourse** | 56 |
| 8.8 | **Release of Escrow Account** | 56 |
| **ARTICLE IX TERMINATION** | **ARTICLE IX TERMINATION** | **57** |
| 9.1 | **Termination** | 57 |
| 9.2 | **Effect of Termination** | 58 |
| 9.3 | **Notice of Termination** | 58 |
| **ARTICLE X MISCELLANEOUS** | **ARTICLE X MISCELLANEOUS** | **58** |
| 10.1 | **Amendment** | 58 |
| 10.2 | **Waiver** | 58 |

---

-ii-

------

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
|  |  | Page |
| 10.3 | **Notices** | 59 |
| 10.4 | **Specific Performance** | 59 |
| 10.5 | **Interpretation** | 60 |
| 10.6 | **Severability** | 60 |
| 10.7 | **Entire Agreement** | 60 |
| 10.8 | **Assignment** | 60 |
| 10.9 | **No Third Party Beneficiaries** | 60 |
| 10.10 | **Failure or Indulgence Not Waiver; Remedies Cumulative** | 61 |
| 10.11 | **Governing Law; Venue** | 61 |
| 10.12 | **Waiver of Jury Trial** | 61 |
| 10.13 | **Conflict Between Transaction Documents** | 61 |
| 10.14 | **Time For Performance** | 61 |
| 10.15 | **Counterparts** | 61 |
| 10.16 | **Public Announcements** | 61 |
| 10.17 | **Seller Representative** | 62 |

---

<u>Exhibits</u>

Exhibit A - Owner Allocation Exhibit

Exhibit B - Escrow Agreement

Exhibit C - Bill of Sale

Exhibit D - Assignment and Assumption Agreement

Exhibit E - Lock-Up Agreement

Exhibit F - IP Assignment Agreement

Exhibit G - Post-Closing Occupancy Agreement

Exhibit H - Employment Agreement

-iii-

------

**ASSET PURCHASE AGREEMENT**

**THIS ASSET PURCHASE AGREEMENT** (this "<u>Agreement</u>"), dated as of January 20, 2026 (the "<u>Signing Date</u>"), is by and among LightPath Technologies, Inc., a Delaware corporation ("<u>LPTH</u>" or "<u>Parent</u>"), Amorphous Materials, LLC, a Delaware limited liability company and wholly-owned subsidiary of Parent ("<u>Buyer</u>"), Amorphous Materials, Inc., a Texas corporation ("<u>Seller</u>"), the undersigned shareholders of Seller (each, an "<u>Owner</u>" and, collectively, the "<u>Owners</u>"), and Mark F. Hilton, solely in his capacity as Seller Representative (as hereinafter defined) (LPTH, Buyer, Seller, the Owners and Seller Representative being, collectively, the "<u>Parties</u>" and, individually, a "<u>Party</u>").

**WHEREAS**, LPTH owns all of the limited liability company interests in Buyer and will receive a substantial benefit from the transactions contemplated by this Agreement;

**WHEREAS**, the Owners own all of the issued and outstanding capital stock of Seller and will receive a substantial benefit from the transactions contemplated by this Agreement;

**WHEREAS**, Seller is engaged in the business of compounding and melting a broad range of Chalcogenide glasses for third-party manufacturers, (together with all of the businesses conducted by Seller at the Closing or at any time during the twelve months prior to the Closing (the "<u>Business</u>"); and

**WHEREAS,** effective as of the Closing Date, upon the terms and subject to the conditions set forth herein, Seller shall transfer to Buyer, and Buyer shall acquire from Seller, substantially all of the assets of Seller used in the Business.

**NOW, THEREFORE**, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, and intending to be legally bound hereby, the Parties hereby agree as follows:

**ARTICLE I**<br> **DEFINITIONS**

**<u>Certain Definitions</u>**. For purposes of this Agreement, the following terms shall have the following meanings:

"**<u>Adjustment Amount</u>**" means an amount, whether positive or negative, equal to (i) the Closing Date Cash on Hand, if any, <u>minus</u> (iii) the Adjustment Indebtedness, <u>minus</u> (iv) the Adjustment Selling Expenses, <u>plus</u> (v) if the Closing Date Net Working Capital is greater than the Target Closing Date Net Working Capital, the amount by which the Closing Date Net Working Capital exceeds the Target Closing Date Net Working Capital, and <u>minus</u> (vi) if the Closing Date Net Working Capital is less than the Target Closing Date Net Working Capital, the amount by which the Target Closing Date Net Working Capital exceeds the Closing Date Net Working Capital.

"**<u>Adjustment Time</u>**" means 11:59 p.m. (Orlando, Florida) on the day immediately preceding the Closing Date.

"**<u>Affiliate</u>**" means any Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such Person.

"**<u>Anti-Corruption Laws</u>**" means the U.S. Foreign Corrupt Practices Act of 1977, the U.S. Foreign Extortion Prevention Act of 2023, the U.K. Bribery Act of 2010, and other applicable Laws addressing prohibitions against improper payments and bribery of officers, directors, employees, agents and affiliates of Governmental Authority, business partners, or other commercial parties and to which Seller or any Owner is subject, in effect in each jurisdiction in which Seller or any Owner operates.

------

"**<u>ARP</u>**" means the American Rescue Plan Act of 2021 (Pub. L 117-2), as amended, and the guidance, rules and regulations promulgated thereunder.

"**<u>Base Closing Date Purchase Price</u>**" means Seven Million Dollars ($7,000,000.00).

"**<u>Business Day</u>**" means any day other than a Saturday, Sunday, or day on which banks are permitted to close in the State of Florida.

"**<u>Buyer Affiliated Company</u>**" means LPTH, Buyer and all Affiliates of Buyer.

"**<u>Buyer Fundamental Representations</u>**" means the representations and warranties set forth in <u>Section 4.1</u> (Organization and Qualification), <u>Section 4.2</u> (Authority; Enforceability), <u>Section 4.5</u> (LPTH Stock), and <u>Section 4.7</u> (Brokers).

"**<u>CAA</u>**" means the Consolidated Appropriations Act, 2021 (Pub. L. 116-260), as amended, and the guidance, rules and regulations promulgated thereunder.

"**<u>CARES Act</u>**" means the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. 116-136) as amended and any administrative or other guidance published with respect thereto by any Governmental Authority (including IRS Notices 2020-22 and 2020-65), or any other Law or executive order or executive memorandum (including the Payroll Tax Executive Order) intended to address the consequences of COVID-19 (in each case, including any comparable provisions of state, local or non-U.S. Law and including any related or similar orders or declarations from any Governmental Authority).

"**<u>Cash on Hand</u>**" means all cash and cash equivalents, in each case, determined in accordance with GAAP, and held in any account of Seller, (i) excluding the amount of any issued but uncleared checks, wires, or drafts and any cash overdrafts and Restricted Cash, and (ii) including checks and drafts deposited for the account of Seller or on hand at Seller or available for deposit for the account of Seller.

"**<u>Claim</u>**" means any claim, suit, action, arbitration, cause of action, complaint, criminal prosecution, demand letter, charge, audit, assessment, or Proceeding, whether at law or in equity, before or by any Governmental Authority.

"**<u>Closing Date Cash on Hand</u>**" means the Cash on Hand as of the Adjustment Time.

"**<u>Closing Date Indebtedness</u>**" means the Indebtedness as of immediately prior to the Closing.

"**<u>Closing Date Net Working Capital</u>**" means the Net Working Capital as of the Adjustment Time.

"**<u>Code</u>**" means the U.S. Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder.

"**<u>Company IT Systems</u>**" means all Software, computer hardware, servers, networks, platforms, peripherals, and similar or related items of automated, computerized, or other information technology (IT) networks and systems (including telecommunications networks and systems for voice, data and video) that are owned, leased, licensed, or used (including through cloud-based or other third-party service providers) by Seller.

"**<u>Confidential Information</u>**" means non-public data and information, know-how, ideas, research and development, methods, processes, techniques, vendor lists, client lists, pricing and cost information, marketing information and plans, sales and promotional materials, business plans, formulas, designs, devices, technology, compositions and other trade secrets, whether or not patentable.

------

"**<u>Contract</u>**" means any written or oral contracts, leases, bonds, notes, mortgages, indentures, subcontracts, leases, licenses, purchase orders, or other legally binding agreements or commitments.

"**<u>COVID-19</u>**" means SARS-CoV-2 or COVID-19, and any evolutions thereof or related or associate epidemics, pandemic or disease outbreaks.

"**<u>COVID-19 Measures</u>**" means any quarantine, "shelter in place", "stay at home", workforce reduction, social distancing, shut down, closure, sequester, safety or similar Law, directive, guidelines or recommendations promulgated by any industry group or any Governmental Authority, including the Centers for Disease Control and Prevention and the World Health Organization, in each case, in connection with or response to the COVID-19 pandemic, including the CARES Act, the FFCRA, the ARP, the CAA, any Payroll Tax Executive Order, and any reasonable actions taken or planned to be taken in response thereto.

"**<u>Data Agreements</u>**" means all agreements containing provisions involving data privacy, data security, or data breach notification to which Seller is bound.

"**<u>Data Laws</u>**" means any applicable Law or industry self-regulatory principles, including but not limited to the following data protection and privacy laws: (i) the California Consumer Privacy Act of 2018, as amended, including any regulations promulgated thereunder; (ii) the General Data Protection Regulation 2016/679; and (iii) HIPAA.

"**<u>Data Policies</u>**" means all internal and external written policies, notices and procedures of Seller regarding privacy, data security, and the storage, collection, transfer (including cross-border transfers), disclosure, use or processing of Personal Information.

"**<u>Data Requirements</u>**" means, collectively, all Data Laws, Data Agreements, and Data Policies.

"**<u>Data Room</u>**" means the online data room hosted by Seller entitled "AMTRAK Data Room."

"**<u>Environmental Reports</u>**" means, collectively, the (i) the Limited Environmental Compliance Review performed by Haley Aldrich, Inc., dated as of December 2, 2025, with respect to the Company Leased Real Property, and (ii) Report on ASTM Phase I Environmental Site Assessment, dated as of January 12, 2026, with respect to the Company Leased Real Property.

"**<u>Escrow Agent</u>**" means U.S. Bank National Association, or its successor or replacement.

"**<u>Escrow Agreement</u>**" means the escrow agreement to be entered into by Buyer, Seller Representative and Escrow Agent, substantially in the form attached hereto as **<u>Exhibit B</u>**.

"**<u>Exchange Act</u>**" means the Securities Exchange Act of 1934.

"**<u>Filing</u>**" means any registration, petition, statement, application, schedule, form, declaration, notice, notification, report, submission, or other filing.

"**<u>Fraud</u>**" means the actual and intentional (as opposed to negligent) fraud by a Party with respect to the making of a representation or warranty by such Party set forth in this Agreement.

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

"**<u>Government Bid</u>**" means any quotation, bid or proposal by Seller that, if accepted or awarded, would result in a Government Contract.

------

"**<u>Government Contract</u>**" means (i) any prime contract, cooperative agreement, grant, or similar agreement with a Governmental Authority, or (ii) any subcontract, teaming agreement, or subaward with a prime contractor or subcontractor, in each case performed by or performed for Seller under a prime contract, cooperative agreement, grant, or similar agreement with a Governmental Authority.

"**<u>Governmental Approval</u>**" means any consent, approval, Order, or authorization of, or registration, declaration, or filing with, any Governmental Authority.

"**<u>Governmental Authority</u>**" means any (i) supernational, federal, national, regional, state, provincial, municipal, local, or other government, (ii) governmental or quasi-governmental entity of any nature (including any court, branch, department, official, entity, or political subdivision or agency thereof, including any administrative agency or commission), or (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, including any public arbitral tribunal, arbitrator or mediator.

"**<u>HIPAA</u>**" means the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act, and their implementing regulations set forth at 45 CFR Parts 160-164.

"**<u>Indebtedness</u>**" means, without duplication, all obligations of Seller consisting of (i) indebtedness for borrowed money and all obligations represented by bonds, notes, debentures, or similar instruments, in each case, including the outstanding principal amount and accrued and unpaid interest related thereto, and any fees, expenses, and other payment obligations related thereto (including any prepayment penalties, premiums, costs, breakage, or other amounts payable as a result of the consummation of the Sale), (ii) obligations with respect to leases required to be accounted for as capital leases under GAAP, (iii) obligations for the deferred purchase price of property, assets, or services, including "earnouts" and "seller notes" (but excluding any trade payables or accrued expenses arising in the ordinary course of business), (iv) all reimbursement and other obligations with respect to letters of credit, bank guarantees, bankers' acceptances, performance bonds, or other similar instruments, in each case, solely to the extent drawn, (v) all obligations, including any costs or fees, with respect to any interest rate, currency swap, cap, forward, or other similar arrangements designed to provide protection against fluctuations in any price or rate, (vi) all (A) unpaid Tax Liabilities (which shall not be an amount less than zero and which shall not include any offsets or reductions with respect to Tax refunds or overpayments of Tax), (B) amounts deferred pursuant to Section 2302 of the CARES Act, and (C) payroll Tax obligations (including those imposed by Sections 3101(a) and 3201 of the Code) deferred (including by a failure to timely withhold, deposit, or remit such amounts in accordance with the applicable provisions of the Code and the Treasury Regulations) pursuant to the Payroll Tax Executive Order, (vii) any unpaid incentive compensation or similar payments payable under Seller's bonus plans or programs, (viii) any unpaid employer 401(k) contributions or any other any unfunded or underfunded pension or retirement plan Liabilities, (ix) the aggregate amount of any declared but unpaid distributions or dividends to equityholders, including, without limitation, any mandatory tax distributions under Seller's Organizational Documents, (x) guarantees by Seller (to the extent of the amount of such guarantees) of any obligations of the type described in the foregoing <u>clauses (i)</u> through <u>(ix)</u>. Notwithstanding the foregoing, "Indebtedness" shall not include any (A) obligations with respect to operating leases not otherwise required to be capitalized under GAAP or (B) obligations with respect to letters of credit, bank guarantees, bankers' acceptances, performance bonds, or similar instruments, in each case, to the extent undrawn.

"**<u>Information</u>**" means any data or information (whether in electronic or non-electronic form) in the care, possession, custody or control of Seller (or a third party on Seller's behalf), including without limitation Personal Information and Cardholder Data or Sensitive Authentication Data (as both are defined in the PCI Glossary published by the PCI Security Council).

------

"**<u>Intellectual Property</u>**" means all intellectual property of any type or nature, however denominated, anywhere in the world, including (i) all trademarks, trade names, service marks, service names, logos, product names, corporate names, assumed names, trade dress, and all other indicia of source and origin, whether registered or unregistered, and all applications for the registration thereof, together with all of the goodwill associated therewith ("<u>Trademarks</u>"), (ii) Internet domain names, websites, and social media accounts, (iii) all works of authorship (whether or not copyrightable) and all copyrights (whether registered or unregistered) and applications for registration thereof, (iv) proprietary data, database rights, and proprietary rights in Software, (v) all classes and types of patents, including originals, reissues, divisions, renewals, extensions, provisionals, continuations, and continuations-in-part, patent applications and patent disclosures, (vi) trade secrets, inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, proprietary information, ideas, methods, procedures, processes, specifications, plans, proposals, improvements, inventions, applications, tools, supplier lists, and all related information, (vii) any and all registrations, applications for registration, renewals, extensions, revisions, or restorations, recordings, common-law rights, statutory rights, and related rights relating to any of the foregoing, and (viii) all claims or causes of action arising out of or related to past, present, or future infringement or misappropriation of the foregoing.

"**<u>Law</u>**" means all laws (including common law), statutes, ordinances, directives, Regulations, codes, promulgations, treaties, resolutions, decrees, and similar mandates of any Governmental Authority, including all Orders having the effect of law in any jurisdiction (domestic and foreign).

"**<u>Liability</u>**" means any debt, liability, or obligation of any nature or kind whatsoever (whether direct or indirect, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, known or unknown, asserted or unasserted, determined, determinable or otherwise, directly incurred or consequential, due or to become due, and whether or not required to be accrued on financial statements prepared in accordance with GAAP), including Taxes.

"**<u>Lien</u>**" means any lien (statutory or otherwise), charge, pledge, claim, encumbrance, security interest, mortgage, deed of trust, hypothecation, encumbrance, community property interest, limitation on voting rights, right of first refusal or first offer, option, buy/sell agreement, servitude, or any other lien of any nature or kind whatsoever (other than, in the case of a security, any restriction on transfer of such security arising solely under federal or state securities Laws).

"**<u>LPTH Stock Price</u>**" means the higher of (1) the average closing price of LPTH Stock, as reported by Bloomberg for the ten (10) trading days prior to the date any Contingent Consideration Payment is made pursuant <u>Section 2.5(b)</u>, as equitably adjusted from time to time after its determination for any stock dividend, stock split, reverse stock split, stock combination or similar event occurring during either of such ten (10) day periods, and (2) the "Minimum Price" pursuant to Nasdaq Listing Rule 5635 applicable to each of such dates.

"**<u>Malicious Code</u>**" means any malicious software, program, code, script or computer instruction that may, or is designed or intended to, interfere with, infect, harm, prevent the use of, perform an unauthorized function on, or permit the unauthorized access of, any computer hardware, Software, system, network or data, as applicable (including but not limited to any computer virus, Trojan Horse, worm, time or logic bomb, bot, keystroke logger, malware, adware, and self-destruction or termination mechanism).

------

"**<u>Material Adverse Effect</u>**" means any result, fact, event, change, development, effect, condition, circumstance or occurrence, or related series thereof, that results in, or could reasonably be expected to result in, a material and adverse effect on: (a) the business, operations, condition (financial or otherwise), properties, assets, Liabilities, capitalization or results of operations of the Business; and/or (b) the ability of Seller or any Owner to consummate the Transactions on a timely basis, whether individually or taken as a whole; other than any result, fact, event, change, development, effect, condition, circumstance or occurrence, or related series thereof, to the extent arising out of or resulting from: (i) changes in general legal, tax, regulatory, political (including policies and tariffs) or business conditions, including changes in GAAP or applicable Law (so long as the foregoing do not have a materially disproportionate effect on Seller as compared to other participants in the industries or markets in which Seller operates), (ii) acts of war, armed hostilities, sabotage or terrorism, or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism threatened or underway as of the Signing Date or epidemics or pandemics (including the Pandemic), earthquakes, hurricanes, floods, or other natural disasters and other force majeure events (so long as the foregoing do not have a materially disproportionate effect on Seller as compared to other participants in the industries or markets in which Seller operates), (iii) any action taken by Seller or any Owner or any of their respective Affiliates at the written direction of Buyer or any of its Affiliates, or (iv) the availability or cost of equity, debt or other financing to Buyer prior to the Closing.

"**<u>Order</u>**" means any binding judgment, order, writ, injunction, ruling, decree, determination, or award of, or any settlement under the jurisdiction of, any Governmental Authority.

"**<u>Organizational Documents</u>**" means the legal document(s) by which any Person (other than an individual) establishes its legal existence or which govern its internal affairs.

"**<u>Pandemic</u>**" means the outbreak of SARS-CoV-2 or COVID-19, and any evolutions or mutations thereof or related or associated epidemics, pandemic or disease outbreaks.

"**<u>Pandemic-Relief Debt</u>**" means any Indebtedness incurred in connection with any Law or program involving any Governmental Authority providing or expanding any loan, guaranty, investment, participation, grant, program or other assistance in response to or to provide relief for the Pandemic, including any loan incurred under the PPP, any U.S. Small Business Administration Economic Injury Disaster Loan, any loan under the Main Street Lending Program announced by the U.S. Department of Treasury and Board of Governors of the Federal Reserve, or any other similar federal, state or local Governmental Authority program.

"**<u>Pass-Through Tax Return</u>**" means any Tax Return (such as an IRS Form 1065 ‎and ‎associated IRS Schedules K-1 and corresponding state and local Tax Returns) of Seller (1) with respect ‎to ‎which (i) Seller is treated as a flow-through entity ‎for ‎purposes of such Tax Return, and (ii) any of the income, gain, losses, deductions or ‎other Tax ‎items of Seller reflected on such Tax ‎Returns are allocated ‎to, and reflected on the Tax Returns of, any Owner (or, in the event that an Owner ‎is classified as a ‎disregarded entity for U.S. federal income Tax purposes, the direct or ‎indirect owner of such ‎Owner that is treated as the owner of such Owner's interests in Seller for U.S. federal income Tax purposes) or (2) which is a "composite" or similar Tax Return. By way of ‎example ‎and without limitation, Tax Returns primarily concerning property Taxes, sales ‎and use Taxes, ‎payroll Taxes, and withholding Taxes (other than any such withholding Taxes associated with a "composite" or similar Tax Return) are not Pass-Through Tax ‎Returns.

"**<u>Payroll Tax Executive Order</u>**" means the Presidential Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, as issued on August 8, 2020, any similar U.S. presidential memorandum, executive order or similar publication permitting or requiring the deferral of any payroll Taxes (including those imposed by Sections 3101(a) and 3201 of the Code) and including any administrative or other guidance published with respect thereto by any Governmental Authority (including IRS Notice 2020-65 and IRS Notice 2021-11).

"**<u>Permits</u>**" mean all franchises, authorizations, consents, approvals, licenses, registrations, certificates, Orders, permits, or other rights and privileges issued by any Governmental Authority.

"**<u>Person</u>**" means an individual, corporation, partnership, association, trust, unincorporated organization, limited liability company, or other entity or group (as defined in Section 13(d)(3) of the U.S. Securities Exchange Act of 1934, as amended).

------

"**<u>Personal Information</u>**" means any information that (i) relates to an identified or identifiable natural person, including any employee, contractor, or other individual persons who have provided information to Seller, (ii) Protected Health Information, as that term is defined by HIPAA; or (iii) that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular individual or household, including without limitation: addresses, telephone numbers, health information, drivers' license numbers, government issued identification numbers, and any nonpublic personally identifiable financial information.

"**<u>PPP</u>**" means the Paycheck Protection Program.

"**<u>Pre-Closing Tax Period</u>**" means any taxable period ending on or before the Closing Date and, for any Straddle Period, the portion through the end of the Closing Date calculated in accordance with <u>Section 6.2</u>.

"**<u>Proceeding</u>**" means any legal, administrative, arbitral, or other proceeding, suit, litigation, action, governmental, or regulatory investigation, mediation, audit, examination, or inquiry by or before any Governmental Authority.

"**<u>Regulation</u>**" means any rule, regulation, policy, or binding interpretation (regarding such rule, regulation, or policy) of any Governmental Authority.

"**<u>Representative</u>**" means, with respect to any Person, its owners, officers, directors, employees, investment bankers, attorneys, accountants, financial, or other advisors or other agents.

"**<u>Restricted Cash</u>**" means cash and cash equivalents of Seller credit and any other cash that is not freely usable because it is subject to restrictions or limitations on use or distribution by Law, Contract or otherwise.

"**<u>Sale</u>**" means, collectively, the transactions contemplated by this Agreement and the other Transaction Documents.

"**<u>Sanctioned Country</u>**" means any country or region that is, or has been in the past ten (10) years, the subject or target of a comprehensive embargo under applicable sanctions and export control Laws (including Cuba, Iran, North Korea, Sudan, Syria and the Crimea or Donetsk and Luhansk regions of Ukraine).

"**<u>Sanctioned Person</u>**" means any Person that is the subject or target of sanctions or restrictions under trade Laws, including: (i) any Person listed on any applicable U.S. or non-U.S. sanctions- or export-related restricted party list, including but not limited to OFAC's Specially Designated Nationals and Blocked Persons List, the EU Consolidated List and HM Treasury's Consolidated List of Persons Subject to Financial Sanctions; (ii) any Person that is, in the aggregate, fifty percent (50%) or greater owned, directly or indirectly, or otherwise controlled by a Person or Persons described in <u>clause (i)</u> so as to subject the Person to sanctions; (iii) any Person acting on behalf of or at the direction of any Person described in <u>clause (i)</u> or <u>(ii)</u>; or (iv) any Person that is organized, resident, or located in a Sanctioned Country.

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

"**<u>Securities Act</u>**" means the Securities Act of 1933.

"**<u>Security Breach</u>**" means:

(i) unauthorized use of, or unauthorized access to, any Company IT Systems;

------

(ii) inability to access Information or Company IT Systems due to a malicious use, attack or exploit of such Information or systems;

(iii) unauthorized access to or theft of Information;

(iv) unauthorized use of Information by a person with authorized access to such Information for purposes of actual or reasonably suspected theft, fraud or identity theft;

(v) unauthorized disclosure or alteration of Information;

(vi) transmission, injection or installation of any Malicious Code resulting (in whole or part) from the foregoing described in (i) – (v); or

(vii) loss of Information, including without limitation, any of the foregoing described in subsections (i) – (vi) above caused by or resulting from a failure, breach of, lack of or inadequacy of Seller's technological, physical, administrative and procedural safeguards, including but not limited to policies, procedures, guidelines, practices, standards, controls, hardware, Software, firmware and physical security measures, the function or purpose of which is, in whole or part, to: (A) protect the confidentiality, integrity or availability of Information and Company IT Systems; (B) prevent the unauthorized use of or unauthorized access to Company IT Systems; or (C) prevent a security breach or Malicious Code infection of Company IT Systems, physical intrusion of facilities, theft or loss of documents, laptops or storage media, or employee or contractor malfeasance.

"**<u>Seller Disclosure Schedule</u>**" means Seller Disclosure Schedule delivered by Seller and the Owners to Buyer prior to or contemporaneously with the execution of this Agreement.

"**<u>Seller Fundamental Representations</u>**" means the representations and warranties set forth in <u>Section 3.1</u> (Organization and Qualification), <u>Section 3.2</u> (Organizational Documents), <u>Section 3.3</u> (Capitalization), <u>Section</u><u> </u><u>3.4</u> (Authority; Enforceability), <u>Section 3.14(b)</u> (Title to Assets), <u>Section 3.15</u> (Taxes), the second and third sentences of <u>Section 3.16(a)</u> (Title to Intellectual Property), <u>Section 3.19</u> (Environmental Matters), and <u>Section 3.20</u> (Brokers).

"**<u>Selling Expenses</u>**" means, in each case solely to the extent not paid prior to Seller, (a) all out-of-pocket fees, costs, and expenses incurred by or on behalf of Seller, any Owner, or their respective Affiliates (whether or not invoiced) as a result of the Sale, including (i) the fees and expenses payable by Seller, any Owner and their Affiliates to any attorneys engaged by Seller or any Owner in connection with this Agreement and the transactions and other agreements contemplated by this Agreement, and (ii) any fees and expenses payable by Seller or any Owner to any brokers, investment bankers, financial advisors, accountants, or other advisors engaged by Seller or any Owner and incurred in connection with this Agreement and the transactions and other agreements contemplated by this Agreement, (b) any change-in-control, retention, success, stock appreciation, phantom stock, profit sharing or participation or similar transaction-related payments or bonuses payable, whether payable at or following Closing and whether alone or in connection with any other event, including the additional passage of the time, to any current or former employees, agents and consultants of and to Seller, including the employer portion of any payroll, social security, unemployment or similar Taxes with respect to any of the foregoing, and (c) any severance obligations owed by Seller to shareholders, employees, agents and consultants of or to Seller triggered prior to or as a result of the Sale, including the employer portion of any payroll, social security, unemployment or similar Taxes with respect to any of the foregoing. For the avoidance of doubt, "Selling Expenses" shall not include any obligations owed by LPTH or Buyer pursuant to agreements or arrangements entered into by LPTH or Buyer with any shareholders, employees, agents and consultants of or to Seller.

------

"**<u>Software</u>**" means computer software and databases, together with object code, source code, firmware, and embedded versions thereof and documentation related thereto.

"**<u>Straddle Period</u>**" means any taxable period beginning before and ending after the Closing Date.

"**<u>Target Closing Date Net Working Capital</u>**" means Six Hundred One Thousand Dollars ($601,000.00).

"**<u>Tax</u>**" or "**<u>Taxes</u>**" means and includes (a) all U.S. or non-U.S. federal, provincial, state or local taxes, charges, fees, imposts, levies or other assessments, including all income, receipts, gross receipts, capital, share, surplus, sales, use, ad valorem, value added, transfer, franchise, profits, windfall or excess profits, capital stock, license, withholding, payroll, employment, social security, unemployment, excise, goods and services, severance, stamp, conveyance, mortgage, registration, documentary, recording, premium, environmental, natural resources, intangibles, rent, occupancy, disability, workers' compensation, health care, occupation, alternative minimum, add-on minimum, accumulated earnings, personal holding company, net worth, property and estimated taxes, customs duties, fees, assessments and similar charges (including the obligation to escheat or otherwise turn over abandoned, presumed abandoned or unclaimed property or assets, whether or not currently escheatable or reportable), or other tax of any kind whatsoever and denominated by any name whatsoever imposed by any Governmental Authority, including all interest, penalties, fines, assessments, deficiencies and additions to Tax imposed in connection with any such item whether civil or criminal and whether or not disputed, (b) any liability in respect of any items described in clause (a) above by reason of (i) being a transferee or successor or by having been a member of a combined, consolidated, unitary or other affiliated group (including pursuant to Treasury Regulations Section 1.1502-6 or any analogous or similar state, local or non-U.S. Law or regulation) or (ii) Contract or otherwise, and (c) any Tax amounts (including interest and penalties) payable as a result of Section 965 of the Code with respect to any election made under Section 965(h) of the Code.

"**<u>Tax Returns</u>**" means and includes all returns, statements, declarations, estimates, forms, reports, information returns and any other documents (including all consolidated, affiliated, combined or unitary versions of the same), including all related and supporting information, filed or required to be filed with any Governmental Entity in connection with the determination, assessment, reporting, payment, collection or administration of any Taxes, including any schedule, election, declaration or attachment thereto, and including any amendment or supplement thereof.

"**<u>Tech NDA</u>**" means that certain Non-Disclosure Agreement, dated as of November 3, 2025, by and between LPTH and Seller, regarding proprietary glass compositions.

"**<u>Transaction Documents</u>**" means this Agreement, the Escrow Agreement and all other instruments, documents, or agreements executed and delivered in connection with the consummation of the transactions contemplated herein or therein.

**<u>Table of Defined Terms</u>**. Terms that are not defined in <u>Section 1.1</u> have the meanings set forth in the following Sections:

---

| | |
|:---|:---|
| **Defined Term** | **Section** <br> **No.** |
| Accountant | 2.6(c) |
| Acquired Assets | 2.1 |
| Acquired Contracts | 2.1(f) |
| Acquired Receivables | 2.1(c) |
| Acquisition Proposal | 5.8(a) |
| Adjustment Indebtedness | 2.6(b) |
| Adjustment Selling Expenses | 2.6(b) |
| Adjustment Statement | 2.6(b) |
| Affordable Care Act | 3.12(g) |
| Annual Financial Statements | 3.9(a) |
| Assignment and Assumption Agreement | 2.8(c) |
| Assumed Liabilities | 2.3 |
| Balance Sheet Date | 3.9(a) |
| BD6 First Payment | 2.5(b)(iii) |
| BD6 Glass Composition | 2.5(b)(iii) |

---

------

---

| | |
|:---|:---|
| BD6 Second Payment | 2.5(b)(iv) |
| BDNL-4 First Payment | 2.5(b)(i) |
| BDNL-4 Glass Composition | 2.5(b)(i) |
| BDNL-4 Second Payment | 2.5(b)(ii) |
| BDNL-8 First Payment | 2.5(b)(v) |
| BDNL-8 Glass Composition | 2.5(b)(v) |
| BDNL-8 Second Payment | 2.5(b)(vi) |
| Business | Recitals |
| Buyer | Preamble |
| Buyer Approvals | 4.3 |
| Buyer Indemnified Persons | 8.2(a) |
| Buyer Pre-Closing Tax Returns | 6.1(b) |
| Closing | 2.7 |
| Closing Date | 2.7 |
| Closing Selling Expenses | 2.5(a) |
| Company | Preamble |
| Company Contracts | 3.6(a) |
| Company Intellectual Property | 3.16(a) |
| Company Leased Real Property | 3.14(a) |
| Company Permits | 3.8(b) |
| Consent Target | 5.1(a) |
| Contingent Consideration Payments | 2.5(b) |
| Current Assets | 2.6(a) |
| Current Liabilities | 2.6(a) |
| De Minimis Amount | 8.4 |
| Determination Date | 2.6(b) |
| Disclosed Conditions | 3.19 |
| Employee Plan | 3.12(a) |
| Employment Agreements | 2.8(f) |
| ERISA | 3.12(a) |
| Escrow Account | 2.5(a) |
| Excess | 2.6(d) |
| Excluded Assets | 2.2 |
| Expert | 2.5(c) |
| Final Adjustment Amount | 2.6(d) |
| Final Disbursement Date | 8.8(b) |
| Financial Statements | 3.9(a) |
| Financing | 7.3(h) |
| First Disbursement Date | 8.8(a) |
| Indemnification Claim | 8.5(a) |
| Indemnified Party | 8.5(b) |
| Indemnifying Party | 8.5(b) |
| Interim Financial Statements | 3.9(a) |
| Inventory | 2.1(b) |
| IP Assignment Agreement | 2.8(e) |
| IP License | 3.6(a)(vi) |
| "knowledge of Seller" | 10.5 |
| Labor Union | 3.13(a) |
| Lease | 3.14(a) |
| Lease Consent | 2.5(j) |

---

------

---

| | |
|:---|:---|
| Lock-Up Agreement | 2.8(d) |
| Losses | 8.2(a) |
| LPTH | Preamble |
| LPTH Stock | 2.5 |
| Material Customers | 3.21(a) |
| Material Vendors | 3.21(a) |
| Multiemployer Plan | 3.12(e) |
| Net Working Capital | 2.6(a) |
| Notice Target | 5.1(a) |
| OSHA | 3.13(g) |
| Outside Date | 9.1(g) |
| Owner or Owners | Preamble |
| Owner Allocation Exhibit | 2.5 |
| Owner Shares | 3.3(a) |
| Party or Parties | Preamble |
| Pay-Off Indebtedness | 2.5(a) |
| Personal Property | 2.1(a) |
| Phantom Stock Plan | 2.5(m) |
| Policies | 3.18 |
| Purchase Price | 2.5 |
| Pre-Closing Financial Statements | 5.12 |
| Pre-Closing Income Tax Return | 6.1(a) |
| Prepaid Amounts | 2.1(j) |
| Protest Notice | 2.6(c) |
| Registered Company Intellectual Property | 3.16(a) |
| Response Period | 8.5(b) |
| Restricted Business | 5.3(a)(i) |
| Restricted Period | 5.3(a) |
| Restricted Territory | 5.3(a)(i) |
| Restrictive Covenants | 5.3(c) |
| Retained Liabilities | 2.3 |
| Review Period | 2.9(b) |
| RMS | 2.5(b)(i) |
| Scheduled Company Intellectual Property | 3.16(a) |
| Second Disbursement Date | 8.8(b) |
| Seller | Preamble |
| Seller Indemnified Persons | 8.2(b) |
| Seller Representative | 10.18 |
| Shortfall | 2.6(e) |
| Signing Date | Preamble |
| Target Conversations | 5.1(b) |
| Third Party Claim | 8.5(b) |
| Threshold | 8.4 |
| Trade Control Laws | 3.8(c) |
| Transferring Employees | 5.4(b) |
| Unlawful Payment | 3.7(m) |
| WARN Act | 3.13(d) |

---

------

**ARTICLE II**<br> **SALE AND PURCHASE**

**<u>Acquired Assets</u>**. Upon the terms and subject to the conditions set forth in this Agreement, effective as of the Closing Date, and in reliance upon the representations, warranties, and covenants set forth herein, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller, free and clear of any Liens, all right, title and interest of Seller in and to the business, assets, properties, goodwill and rights owned, held or used by Seller of every nature, kind and description, tangible and intangible, wheresoever located and whether or not carried or reflected on its books and records (the "<u>Acquired Assets</u>"), including the following (except to the extent any item of the following is part of the Excluded Assets):

(a) all equipment, furniture, fixtures, supplies, computer hardware and other tangible personal property of Seller used in the Business (the "<u>Personal Property</u>"), including the Personal Property described on <u>Schedule 2.1(a)</u>;

(b) all inventory, finished goods, raw materials, work in progress, packaging, supplies, parts and other inventories, including any right or interest that Seller may have to any of the foregoing held on a consignment basis or otherwise on behalf of another party (including warehouse liens thereon) ("<u>Inventory</u>");

(c) all trade and other accounts receivable and other rights to receive payment of all revenue, fees and commissions for the provision of products or services rendered with respect to the Business, earned or received by Seller as of the Closing Date, whether billed or unbilled (the "<u>Acquired Receivables</u>");

(d) all Permits owned or held by Seller that are required for Seller to conduct its business as it is currently conducted, to the extent transferrable to Buyer;

(e) all Intellectual Property owned by Seller or which Seller has the right to use, including the Intellectual Property described on <u>Schedule 2.1(e)</u>;

(f) other than the Excluded Contracts, any and all claims, rights and benefits resulting or arising from any Contract to which Seller is a party set forth on <u>Schedule 2.1(f)</u> (the "<u>Acquired Contracts</u>");

(g) all Proceedings, causes of action, judgments and Claims or demands of Seller against others of whatever kind or description;

(h) all books of account, records, client and prospect lists, vendor lists, files, papers, records, data, promotional, marketing and advertising materials, catalogs, brochures, forms, plans, manuals and handbooks, in whatever media retained or stored, including on servers, computers and other electronic or magnetic storage devices;

(i) other than as set forth on <u>Schedule 2.2(f)</u>, all of Seller's bank accounts, including the bank accounts set forth on <u>Schedule 2.1(i)</u>, provided that Seller shall be entitled to all cash in such accounts at the Effective Time per <u>Section 2.2(g)</u> below;

(j) all retainers, prepaid expenses, credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of recoupment, deposits, charges, sums, prepaid Taxes, and fees (the "<u>Prepaid Amounts</u>"), including the Prepaid Amounts set forth on <u>Schedule 2.1(j)</u>; and

------

(k) all goodwill and going concern value of the Business.

2.2 **<u>Excluded Assets</u>**. Notwithstanding any other provision of this Agreement to the contrary, the following items shall be excluded from the Acquired Assets (the "<u>Excluded Assets</u>"):

(a) all minute books, stock or stockholder records, seals and Tax Returns and supporting schedules of Seller (all of which shall be subject to Buyer's right to inspect and copy);

(b) all ownership or other rights with respect to any Employee Plan;

(c) the rights that accrue to Seller or any Owner under this Agreement;

(d) any equity or other ownership interests in any subsidiary or other Person;

(e) any Contract of Seller not listed on <u>Schedule 2.1(f)</u>, including those Contracts listed on <u>Schedule 2.2(e)</u> (the "<u>Excluded Contracts</u>");

(f) the bank accounts of Seller set forth on <u>Schedule 2.2(f)</u>;

(g) all Cash on Hand as of the Effective Time;

(h) any license issued by a regulatory agency or similar license issued to Seller or any employee of Seller and any other Permits of Seller that are not transferrable to Buyer; and

(i) all assets listed on <u>Scheduled 2.2(i)</u>.

**<u>Assumed Liabilities; Retained Liabilities</u>**. From and after the Closing Date, Buyer shall assume only Current Liabilities, but only to the extent such Liabilities relate to Seller and the conduct of the Business and are taken into account in the Final Adjustment Amount, and (b) the Liabilities of Seller under the Acquired Contracts, but, in each case, only to the extent such Liabilities arise and are first required to be performed on or after the Closing Date (excluding any Liabilities for breach of such Contracts by Seller prior to the Closing Date) (collectively, the "<u>Assumed Liabilities</u>"). With the exception of the Assumed Liabilities, neither LPTH nor Buyer shall by the execution, delivery or performance of this Agreement, or otherwise, assume or otherwise be responsible for any Liability of Seller that is based upon, related to, or arises out of any event, occurrence, state of facts or development occurring or existing at or prior to the Closing, regardless of whether such Liability is disclosed in the Seller Disclosure Schedule, including any Liability relating to, resulting from or arising out of: (A) Seller's operation or ownership of the Business or any other business, including any claim for fraud, recklessness, negligence, malpractice, breach of duty or other tortious act arising from any products sold or services provided by Seller which is not fully covered by insurance; (B) any violation of Law or of the rights of any third Person by Seller or any Owner, including requirements relating to the reporting or payment (or both) of federal, state, local or foreign income, property or other Taxes; (C) any Employee Plan of Seller or any contributions, benefits or liabilities therefor or any liability for withdrawal or partial withdrawal from, or termination of, any Employee Plan of Seller; (D) any claim of any current or former shareholder, officer, director or employee of Seller, including any accrued payroll, bonuses, severance, retirement, stock appreciation rights (including under any Phantom Stock Plan), and other compensation and paid time off liabilities; (E) any Liabilities arising out of, in respect of or in connection with the Disclosed Conditions; and (F) any claims with respect to any distributions, dividends or redemption payments on any securities of Seller (collectively, the "<u>Retained Liabilities</u>"). Seller shall pay or otherwise satisfy or cause to be paid or otherwise satisfied in full, promptly when due, all Retained Liabilities.

------

2.5 **<u>Non-Assignment of Certain Acquired Assets</u>**. Notwithstanding anything to the contrary in this Agreement, to the extent that the assignment hereunder of any Contract, Permit or other right shall require the consent of any other Person, and such consent is not obtained prior to the Closing, or in the event that any such Contract, Permit or other right shall be non-assignable, neither this Agreement nor any action taken pursuant to its provisions shall constitute an assignment or an agreement to assign if such assignment or attempted assignment would constitute a breach thereof or result in the loss or diminution thereof; provided, however, that in each case, Seller and the Owners, upon request of Buyer, shall use commercially reasonable efforts to obtain the consent of such other Person to an assignment to Buyer. If such consent is not obtained, Seller shall take such actions as Buyer reasonably deems necessary, desirable or appropriate such that Buyer will receive the benefits of such Contract, Permit or other right including enforcement, for the account and benefit of Buyer of any and all rights of Seller against any other Person with respect thereto.

2.5 **<u>Payment of Purchase Price</u>**. The aggregate consideration to be paid for the Acquired Assets shall be the Base Closing Date Purchase Price, plus the Contingent Consideration Payments (collectively, the "<u>Purchase Price</u>") and shall be paid by Buyer using a combination of cash and LPTH's Class A common stock ("<u>LPTH Stock</u>"). The payment and determination of the form of the Purchase Price shall be made as set forth in this <u>Section 2.5</u> (subject, however, to adjustment pursuant to <u>Section 2.6</u>). Seller and the Owners agree that any distributions of the Purchase Price by Seller to the Owners will be allocated among the Owners as set forth on **<u>Exhibit A</u>** (the "<u>Owner Allocation Exhibit</u>"). Each Owner has been provided with and agrees to the allocation which is applicable to such Owner as set forth in the Owner Allocation Exhibit, and Seller and the Owners agree that neither the Buyer nor any Buyer Affiliated Company shall be responsible for or have any liability with respect to (including the issuance of LPTH Stock in accordance with), the allocations or the determinations regarding such allocations set forth in the Owner Allocation Exhibit. The payment and determination of the form of the Purchase Price shall be made as set forth in this <u>Section 2.5</u>.

(a) <u>Closing Date Payments</u>. At the Closing, Buyer shall pay or cause to be paid the Base Closing Date Purchase Price as follows: (i) Buyer shall pay (or cause to be paid), on behalf of Seller, (A) all Closing Date Indebtedness (the "<u>Pay-off Indebtedness</u>") to the lender(s) and payee(s) thereof, by wire transfer of immediately available funds in accordance with the pay-off letters delivered pursuant to <u>Section 2.5(a)</u>, and (B) all unsatisfied Selling Expenses existing as of Closing (the "<u>Closing Selling Expenses</u>") to the payee(s) thereof, by wire transfer of immediately available funds in accordance with the invoices or other documentation to be delivered pursuant to <u>Section 2.5(f)</u>; (ii) Buyer shall deposit $1,000,000 with the Escrow Agent, which shall hold and maintain such amount in an interest bearing escrow account pursuant to the Escrow Agreement (the "<u>Escrow Account</u>"), for the purpose of providing a non-exclusive fund for the payment of certain payment and indemnification obligations of Seller and the Owners pursuant to this Agreement, if any, and will be released to Buyer, Seller or both in accordance with the terms and conditions of this Agreement and the Escrow Agreement; and (iv) Buyer shall pay the remainder of the Base Closing Date Purchase Price to Seller, by wire transfer of immediately available funds to accounts designated by Seller Representative at least two (2) Business Days before the Closing Date.

(b) <u>Contingent Consideration Payments</u>. The payment and determination of the remainder of the Purchase Price, not to exceed $3,000,000, shall be made as follows (collectively, the "<u>Contingent Consideration Payments</u>" and each, a "<u>Contingent Consideration Payment</u>"):

(i) <u>BDNL-4 First Payment</u>. The "<u>BDNL-4 First Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that Seller has produced six (6) two-inch areas of glass composition designated and described as "BDNL-4" pursuant to the Tech NDA (the "<u>BDNL-4 Glass Composition</u>") with a homogeneity equal to or less than 36 ppm Root Mean Square ("<u>RMS</u>"), and that such BDNL-4 Glass Composition can be satisfactorily melted, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(i) and pursuant to the Tech NDA;

------

(ii) <u>BDNL-4 Second Payment</u>. The "<u>BDNL-4 Second Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that the BDNL-4 Glass Composition produced pursuant to <u>Section 2.5(b)(i)</u> can be recycled for commercial re-use by producing a secondary melt of such material that results in six (6) two-inch areas with a homogeneity equal to or less than 36 ppm RMS, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(ii) and pursuant to the Tech NDA;

(iii) <u>BD6 First Payment</u>. The "<u>BD6 First Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that Seller has produced six (6) two-inch areas of the glass composition designated and described as "BD6" pursuant to the Tech NDA (the "<u>BD6 Glass Composition</u>") with a homogeneity equal to or less than 36 ppm RMS, and that such BD6 Glass Composition can be satisfactorily melted, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(iii) and pursuant to the Tech NDA;

(iv) <u>BD6 Second Payment</u>. The "<u>BD6 Second Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that the BD6 Glass Composition produced pursuant to <u>Section 2.5(b)(iii)</u> can be recycled for commercial re-use by producing a secondary melt of such material that results in six (6) two-inch areas with a homogeneity equal to or less than 36 ppm RMS, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(iv) and pursuant to the Tech NDA;

(v) <u>BDNL-8 First Payment</u>. The "<u>BDNL-8 First Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that Seller has produced six (6) two-inch areas of the glass composition designated and described as "BDNL-8" pursuant to the Tech NDA (the "<u>BDNL-8 Glass Composition</u>") and that such BDNL-8 Glass Composition can be satisfactorily melted, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(v) and pursuant to the Tech NDA; and

(vi) <u>BDNL-8 Second Payment</u>. The "<u>BDNL-8 Second Payment</u>" shall consist of shares of LPTH Stock equal to $500,000 divided by the LPTH Stock Price, and such shares shall be issued upon the later of (A) the Closing Date, or within five (5) Business Days after the date Seller has demonstrated to Buyer, to Buyer's reasonable satisfaction, that the BDNL-8 Glass Composition produced pursuant to <u>Section 2.5(b)(v)</u> can be recycled for commercial re-use by producing a secondary melt of such material that results in six (6) two-inch areas with a homogeneity equal to or less than 36 ppm RMS, in each case within the parameters and specifications provided to Seller by Buyer in this Section 2.5(b)(vi) and pursuant to the Tech NDA.

------

The Parties acknowledge and agree that the Contingent Consideration Payments provided for in this <u>Section 2.5(b)</u> can only be earned prior to the second anniversary of the Closing Date (and only paid to the extent earned prior to such date). For the avoidance of doubt, no Contingent Consideration Payment will be owed to the extent it is not earned prior to the second anniversary of the Closing Date.

(c) In the event of any dispute regarding whether a glass composition meets the required homogeneity or melting parameters, such dispute shall be promptly referred by the Parties to an independent third-party technical expert selected by an agreement between Seller Representative and Buyer (the "<u>Expert</u>"), who, acting as an arbitrator, shall be engaged to provide a final and conclusive resolution of such dispute within thirty (30) days after such engagement. The fees and expenses of the Expert shall be borne equally by Seller and the Owners, on the one hand, and LPTH and Buyer, on the other hand. The Expert shall be directed to render a written report on the dispute as promptly as practicable, but in no event later than thirty (30) days after such submission to the Expert. If such dispute is submitted to the Expert, Buyer and Seller Representative shall each furnish to the Expert such documents and information relating to such dispute as the Expert may reasonably request. The resolution of all disputes by the Expert shall be final and binding on the Parties.

**<u>Post-Closing Adjustment</u>**.

(a) "<u>Net Working Capital</u>" means the amount of Current Assets minus Current Liabilities. "<u>Current Assets</u>" means, without duplication, the sum of (i) the Acquired Receivables, (ii) Prepaid Amounts, (iii) Inventory, and (iv) other current assets; provided, that deferred Tax assets shall be excluded from this definition. "<u>Current Liabilities</u>" means, without duplication, the sum of (1) trade and other accounts payable, (2) accrued payroll and related expenses, (3) other current accruals, (4) customer deposits, and (5) other current liabilities; provided, that deferred Tax liabilities shall be excluded from this definition.

(b) As promptly as practicable (but in no event later than sixty (60) days after the Closing Date) (the "<u>Determination Date</u>"), Seller Representative shall deliver to Buyer a balance sheet of Seller as of the Closing Date, with reasonable supporting detail. As soon as reasonably practicable after the Determination Date, but not later than sixty (60) days thereafter, Buyer shall prepare and deliver to Seller Representative a reasonably detailed statement (the "<u>Adjustment Statement</u>") setting forth Buyer's calculations of the Closing Date Cash on Hand, the Closing Date Net Working Capital, the Closing Date Indebtedness not satisfied at Closing (the "<u>Adjustment Indebtedness</u>"), any unpaid Selling Expenses existing after the Closing (the "<u>Adjustment Selling Expenses</u>"), and the Adjustment Amount based on the foregoing. Upon receipt of the Adjustment Statement, Buyer shall provide Seller Representative and its advisors with commercially reasonable access, during normal business hours, to Seller's books and records (including working papers, schedules and calculations) reasonably relating to the preparation of the Adjustment Statement. Seller Representative and its advisors may make inquiries of the personnel of Buyer and LPTH that were involved in the preparation of the Adjustment Statement regarding questions concerning or disagreements with the Adjustment Statement arising in the course of their review thereof, and Buyer shall cooperate, in good faith with Seller Representative and its advisors with respect to such inquiries.

------

(c) Within sixty (60) days after delivery of the Adjustment Statement, Seller Representative may deliver written notice (a "<u>Protest Notice</u>") to Buyer of any objections that Seller Representative may have with respect to the Adjustment Statement, setting forth in reasonable detail the basis of such objection(s) together with the amount(s) in dispute. Any amount not specifically disputed in the Protest Notice shall be final, conclusive, and binding on the Parties. If Seller Representative does not timely deliver a Protest Notice within such sixty (60) day period, the Adjustment Statement shall be final, conclusive, and binding on the Parties. Upon receipt of a Protest Notice, Buyer and Seller Representative shall attempt in good faith to resolve any dispute regarding the Adjustment Statement (and all such discussions related thereto shall, unless otherwise agreed by Buyer and Seller Representative, be governed by Rule 408 of the Federal Rules of Evidence (and any applicable similar state rule)). If Buyer and Seller Representative are unable to resolve any disagreement with respect to the Adjustment Statement within sixty (60) days following Buyer's receipt of the Protest Notice, then all unresolved disputed items (but only such unresolved disputed items) shall be promptly referred by the Parties to Marcum LLP or such other independent accounting firm selected by an agreement between Seller Representative and Buyer (the "<u>Accountant</u>"), who, acting as an arbitrator, shall be engaged to provide a final and conclusive resolution of all unresolved disputes that are the subject of the Protest Notice, and the resulting calculation of the Adjustment Amount, within thirty (30) days after such engagement. The fees and expenses of the Accountant shall be borne equally by Seller and the Owners, on the one hand, and LPTH and Buyer, on the other hand. The Accountant shall be directed to render a written report on the unresolved disputed items with respect to the calculation of the Adjustment Amount as promptly as practicable, but in no event later than thirty (30) days after such submission to the Accountant, and to resolve only those unresolved disputed items set forth in the Earnout Calculation Objection Notice. If unresolved disputed items are submitted to the Accountant, Buyer and Seller Representative shall each furnish to the Accountant such work papers, schedules and other documents and information relating to the unresolved disputed items as the Accountant may reasonably request. The Accountant shall resolve the disputed items based solely on the applicable definitions and other terms in this Agreement and the presentations by Buyer and Seller Representative, and not by independent review. The resolution of all disputes that are the subject of the Protest Notice by the Accountant shall be final and binding on the Parties. Each of Seller' Representative and Buyer shall allow the other party and its Representatives full and commercially reasonable access to the other parties' books and records relating to Seller and appropriate personnel for purposes of preparing and reviewing the working papers, trial balances and similar materials relating to preparation and review of the Adjustment Statement.

(d) If the Adjustment Amount, as finally determined pursuant to <u>Section 2.6(c)</u> above (the "<u>Final Adjustment Amount</u>"), is greater than zero (an "<u>Excess</u>"), then within five (5) Business Days after the date on which the Final Adjustment Amount is finally determined, Buyer shall pay, or cause to be paid, to Seller by wire transfer of immediately available funds to the account(s) designated in writing by Seller Representative at least two (2) Business Days prior to the due date, an aggregate amount equal to the Excess, which aggregate amount shall be allocated among the Owners in the proportions set forth on the Owner Allocation Exhibit.

(e) If the Final Adjustment Amount is less than zero (a "<u>Shortfall</u>"), then within five (5) Business Days after the date on which the Final Adjustment Amount is finally determined, Buyer and Seller Representative shall instruct the Escrow Agent to release to Buyer from the Escrow Account an amount equal to the Shortfall, and if the funds in the Escrow Account are insufficient to fund the entire Shortfall payable to Buyer, the Seller and the Owners, shall pay to Buyer their pro rata share (based on the proportions set forth on the Owner Allocation Exhibit) of the remaining portion of the Shortfall by wire transfer of immediately available funds within five (5) Business Days after the date on which the Final Adjustment Amount is finally determined to the account designated in writing by Buyer at least two (2) Business Days prior to the due date.

(f) Any payments made by Buyer, Seller or the Owners pursuant to this <u>Section 2.6</u> (other than fees paid to the Accountant) shall be treated by the Parties as an adjustment to the purchase price of the Acquired Assets for U.S. income tax purposes, unless otherwise required by applicable Law.

------

**<u>Closing</u>**. The closing of the Sale (the "<u>Closing</u>") shall take place at the offices of Baker & Hostetler LLP, 200 South Orange Avenue, Suite 2300, Orlando, Florida 32801 (or at such other location as the Parties may agree or via the electronic exchange of execution versions of this Agreement and the Transaction Documents and the signature pages thereto via email or .pdf) on a date and time to be mutually agreed upon by the Parties, not later than five (5) Business Days following the satisfaction (or written waiver) of the conditions to the Closing set forth in <u>Article VII</u> (other than conditions which, by their nature are to be satisfied on the Closing Date). The date on which the Closing occurs is referred to herein as the "<u>Closing Date</u>." Notwithstanding anything to the contrary, the Closing shall be effective for all purposes at 12:01 a.m. (Orlando, Florida) on the Closing Date.

**<u>Deliveries by Seller and the Owners</u>**. At the Closing, Seller and the Owners shall deliver, or cause to be delivered, to LPTH and Buyer, as applicable, the following:

(a) all files of or relating to the Business, in whatever medium, in Seller's or any Owner's possession;

(b) a Bill of Sale, in form attached hereto as **<u>Exhibit C</u>**, transferring to Buyer all of Seller's right, title and interest in and to the Acquired Assets, duly executed by Seller and dated the Closing Date;

(c) an Assignment and Assumption Agreement, in form attached hereto as **<u>Exhibit D</u>**, pursuant to which Seller assigns all of its right, title and interest in and to the Acquired Contracts, and Buyer assumes the Assumed Liabilities (the "<u>Assignment and Assumption Agreement</u>"), duly executed by Seller and dated the Closing Date;

(d) an Investor Representation and Lock-Up Agreement, in form attached hereto as **<u>Exhibit E</u>**, duly executed by Seller and each Owner (the "<u>Lock-Up Agreement</u>");

(e) an Intellectual Property Assignment, in form attached hereto as **<u>Exhibit F</u>**, pursuant to which Seller assigns all of its right, title and interest in and to certain Intellectual Property as set forth therein (the "<u>IP Assignment Agreement</u>"), duly executed by Seller and dated the Closing Date;

(f) employment and restrictive covenant agreements between Buyer (or another Buyer Affiliated Company) and each of Ray Hilton, Jr., Mark Hilton and Greg Whaley, in form attached hereto as **<u>Exhibit H</u>** (each, an "<u>Employment Agreement</u>"), duly executed by each such Person;

(g) (i) a copy of the articles of incorporation (or equivalent organizational document) of Seller certified by the secretary of state (or equivalent Governmental Authority) of the jurisdiction of organization of Seller, (ii) a copy of the bylaws of Seller, (iii) a copy of all shareholder agreements, buy-sell agreements or similar agreements with respect to Seller, and (iv) a copy of the resolutions of the governing body of Seller authorizing the Sale, to the extent required by Seller's Organizational Documents, each certified by an officer of Seller;

(h) a certificate of the Texas Secretary of State as to the good standing of Seller in such jurisdiction, dated no earlier than thirty (30) days prior to the Closing Date;

(i) pay-off letter(s) and Lien release documentation and/or authorization from the lender(s) or other payee(s) of the Pay-Off Indebtedness, in form and substance reasonably acceptable to Buyer, setting forth the full amount due and owing as of the Closing Date necessary for the satisfaction and discharge of all such indebtedness;

------

(j) invoices or other documentation from the payee(s) of the Closing Selling Expenses, in form and substance reasonably acceptable to Buyer, setting forth the full amount due and owing as of the Closing Date necessary for the satisfaction and discharge of all such expenses;

(k) a duly completed and properly executed IRS Form W-9 from Seller (or if the applicable Seller is disregarded as separate from its owner for U.S. federal income Tax purposes, the applicable direct or indirect parent of such Seller) and Seller Representative, in each case dated as of the Closing Date;

(l) all approvals, consents, estoppels and waivers set forth on <u>Schedule 2.8</u>, duly executed by the applicable party or parties;

(m) evidence reasonably satisfactory to Buyer that (i) any and all shareholder agreements, buy-sell agreements or similar agreements with respect to Seller, and (ii) any and all Contracts with any Affiliates of Seller or any Owner have been terminated without liability to Buyer or any Buyer Affiliated Company;

(n) the Escrow Agreement duly executed by Seller Representative and the Escrow Agent;

(o) the Post-Closing Occupancy Agreement, in respect to Seller's operating facility, in form attached hereto as **<u>Exhibit G</u>**, duly executed by Mark F. Hilton, Albert R. Hilton III, Pam E. Hilton and Gail L. Hanna, collectively, as owner; and

(p) such other deliverables requested by Buyer as may be necessary or appropriate to effect the Sale.

**<u>Deliveries by LPTH and Buyer</u>**. At the Closing, LPTH and Buyer shall pay the Base Closing Date Purchase Price in accordance with <u>Section 2.5(a)</u> and deliver, or cause to be delivered, to the Seller, the Owners and Seller Representative, as applicable:

(a) the Assignment and Assumption Agreement, duly executed by Buyer;

(b) the Lock-up Agreement, duly executed by LPTH;

(c) the IP Assignment Agreement, duly executed by Buyer;

(d) the Escrow Agreement, duly executed by Buyer;

(e) the Employment Agreements, duly executed by Buyer (or another Buyer Affiliated Company); and

(f) such other deliverables requested by Seller Representative as may be necessary or appropriate to effect the Sale.

------

**<u>Purchase Price Allocation</u>**. Within sixty (60) days following the determination of the Final Adjustment Amount, Buyer shall deliver to Seller Representative an allocation statement with its allocation of the Purchase Price (and any other amounts required by Law to be included in such allocation) in accordance with Section 1060 of the Code and the Treasury Regulations promulgated thereunder (and any similar provisions of state, local, or non-U.S. Law, as appropriate) consistent with the methodology set forth on <u>Schedule 2.10</u>; provided, however, that the Parties acknowledge and agree that this limitation shall not in any way limit any available recoveries of Buyer Indemnified Persons for any violations or breaches of any restrictive covenants set forth in <u>Section 5.3</u> of this Agreement. If Seller Representative does not notify Buyer in writing within thirty (30) calendar days following Seller Representative's receipt of the allocation that Seller Representative objects to the allocation, the allocation as delivered by Buyer shall be final and binding upon the Parties. If within such 30-calendar day period Seller Representative so notifies Buyer in writing (along with a reasonable explanation of the basis of any such disputed item), Buyer and Seller Representative shall negotiate in good faith to resolve the disputed matters. If Buyer and Seller Representative are unable to resolve all of the disputed matters within thirty (30) calendar days following Buyer's receipt of Seller Representative's written notice of objection, Buyer and Seller Representative shall promptly refer the dispute to the Accountant, and the Accountant shall make a determination (in the manner described in, and pursuant to the terms and conditions of, <u>Section 2.6(c)</u> as though such section applied to resolved disputes over the allocation as well) as to the disputed matters and shall revise the allocation as necessary (and consistent with the allocation methodology set forth on <u>Schedule 2.10</u> to reflect such determination. The Accountant's determination with respect to such disputed matters and the revised Allocation Schedule it prepares shall be final and binding upon the parties; provided that the Accountant shall only decide the specific items under dispute by the Parties and their decision for each disputed matter must be within the range of values assigned to each item by the Parties. The Parties agree, for all Tax purposes, to be bound by any final and binding allocation established in accordance with this <u>Section 2.10</u>. Neither the Parties nor any of their respective Affiliates shall take any position on any Tax Return or in any Tax Proceeding which is inconsistent with the allocation unless otherwise required by a final determination within the meaning of Section 1313(a) of the Code (or any similar provision of state, local or non-U.S. Tax Law); *provided*, that if there are any subsequent adjustments to the Purchase Price pursuant to the terms of this Agreement, the Parties agree to update the allocation on a basis consistent with the original allocation, prepare and file all Tax Returns (including amended Tax Returns and claims for refund) in a manner consistent with the updated allocation, and neither the Parties nor any of their respective Affiliates shall take any position on any Tax Return or in any Tax contest, proceeding, audit, appeals or litigation which is inconsistent with such updated allocation unless otherwise required by a final determination within the meaning of Section 1313(a) of the Code (or any similar provision of state, local or non-U.S. Tax Law).

**<u>Withholding</u>**. Notwithstanding any other provision of this Agreement to the contrary, or any other provision of any other Transaction Document to the contrary, any Person that may be required by Law to deduct and withhold from any amounts payable to any Person pursuant to this Agreement, any other Transaction Document, or any other agreement as a result of the Sale, shall be entitled to deduct and withhold all such amounts as it is required to deduct and withhold in connection with the foregoing under or in respect of any provision of Law. Any amounts so deducted and withheld shall be treated for all purposes of this Agreement, and each other applicable agreement, as having been paid to the Person in respect of which such amount was payable to prior to any such deduction or withholding. The payor shall consider any applicable and fully and properly completed documentation or certifications to reduce or eliminate the amount of withholding to the extent permitted under applicable Law provided to the payor in advance of any payment date.

**ARTICLE III**<br> **REPRESENTATIONS AND WARRANTIES OF SELLER AND OWNERS**

Except as set forth in Seller Disclosure Schedule, Seller and the Owners hereby jointly and severally represent and warrant to LPTH and Buyer as follows:

**<u>Organization and Qualification</u>**. Seller is a corporation duly incorporated, validly existing, and subsisting under the Laws of Texas and has all the requisite corporate power and authority to own, lease, and operate its properties and assets and to carry on its business as it is now being conducted. <u>Schedule 3.1</u> sets forth each jurisdiction in which Seller is duly licensed or qualified to do business, and Seller is duly licensed or qualified to do business in each jurisdiction in which the Laws of such jurisdiction, the ownership, operation, or leasing of its properties or assets, or the conduct of its business require it to be so qualified. Seller does not own or have any interest in any shares or otherwise have an ownership interest in any other Person.

------

**<u>Organizational Documents</u>**. Seller has made available to Buyer true and complete copies of the Organizational Documents of Seller as presently in effect. There are no other Organizational Documents in effect other than those set forth on <u>Schedule 3.2</u>. Seller is not in violation of any of its respective Organizational Documents.

**<u>Capitalization</u>**.

(a) The authorized, issued and outstanding shares of capital stock of Seller are set forth on <u>Schedule 3.3(a)</u>, all of which are owned beneficially and of record by the Owners as set forth on <u>Schedule 3.3(a)</u>, in all cases free and clear of all Liens (collectively, the "<u>Owner Shares</u>"). The Owner Shares represent one hundred percent (100%) of the outstanding equity interests of Seller. All of the equity interests of Seller are validly issued, fully paid, and nonassessable. The Owner Shares were issued in compliance with applicable Laws, and were not issued in violation of the Organizational Documents of Seller or any other agreement, arrangement, or commitment to which Seller or any Owner is a party and are not subject to or in violation of any preemptive or similar rights of any Person. As of the Closing, the Sale will have been effected in compliance with all applicable Laws and will not have been in violation the Organizational Documents of Seller or any other agreement, arrangement, or commitment to which Seller or any Owner is a party and will not be subject to or in violation of any preemptive or similar rights of any Person.

(b) None of the Owner Shares are subject to any purchase option, call option, right of first refusal, first offer, co-sale or participation, preemptive right, subscription right, or any similar right, except as expressly set forth in the Organizational Documents of Seller.

(c) Except as set forth on <u>Schedule 3.3(c)</u>, (i) there are no outstanding securities, options, warrants, calls, rights, convertible, or exchangeable securities or obligations of any kind (contingent or otherwise) to which Seller or any Owner is a party or by which it is bound obligating Seller or any Owner to issue, deliver, or sell any equity securities or securities convertible into or exchangeable for equity securities of Seller or obligating Seller to issue, grant, extend, or enter into any such security, option, warrant, call, right, or obligation; (ii) there are no outstanding obligations of Seller to repurchase, redeem, or otherwise acquire, directly or indirectly, any securities (or options or warrants to acquire any such securities) of Seller; (iii) Seller is not a party to or bound by any Contract granting any equity, option, equity appreciation, phantom equity, profit participation, or similar right or any participation right in the revenue or profits of Seller; and (iv) there are no Contracts with respect to the (A) voting of any membership interest of Seller (including any proxy or manager nomination rights) or (B) transfer of, or transfer restrictions on, any shares of capital stock of Seller.

(d) Except as set forth on <u>Schedule 3.3(d)</u>, Seller does not have any Indebtedness.

**<u>Authority; Enforceability</u>**. Seller and each Owner has the requisite power, capacity and authority to execute and deliver this Agreement, each other Transaction Document to which it is a party, and each instrument required to be executed and delivered by it prior to or at the Closing and to perform its obligations hereunder and thereunder and to consummate the Sale. The execution and delivery by Seller and each Owner of this Agreement, each other Transaction Document, and each instrument required to be executed and delivered by it prior to or at the Closing, the performance of its obligations hereunder and thereunder, and the consummation of the Sale have been duly and validly authorized. No other actions on the part of Seller or any Owner are necessary to authorize this Agreement, any Transaction Document to which it is a party, or any instrument required to be executed and delivered by it prior to or at the Closing or the consummation of the Sale. This Agreement, each other Transaction Document to which it is a party, and each instrument required to be executed and delivered by it has been duly and validly executed and delivered by Seller and each Owner and, assuming the due authorization, execution, and delivery thereof by the other parties thereto, constitutes a legal, valid, and binding obligation of Seller and each Owner, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, and other similar laws relating to or affecting creditors' rights generally and general equitable principles (whether considered in a proceeding in equity or at law).

------

**<u>No Conflict; Required Filings and Consents</u>**. Except as set forth in <u>Schedule 3.5</u>, the execution and delivery by Seller and each Owner of this Agreement, the other Transaction Documents to which they are a party, or any instrument required by this Agreement to be executed and delivered by Seller and each Owner on or prior to the Closing do not, and the performance of this Agreement, the other Transaction Documents to which it is a party, and any instrument required by this Agreement to be executed and delivered by it on or prior to the Closing shall not, with or without the passage of time, the giving of notice or both, (i) conflict with, require a consent or notice under, or violate the Organizational Documents of Seller or, if applicable, each Owner, (ii) conflict with, require a consent or notice under, or violate any Law or any Order applicable to Seller or any Owner or by which any of its properties, rights, or assets is bound or affected, or (iii) result in any breach or violation of, require a consent or notice under, constitute a default under, impair the rights or alter the rights or obligations of any party under, give to others any rights of termination, amendment, acceleration, or cancellation of any Contract to which Seller is a party or by which Seller or its properties, rights, or assets is bound; or (iv) result in the creation or imposition of any Lien on any of the properties, rights or assets of Seller. Except as set forth in <u>Schedule 3.5</u>, no Governmental Approval of, or Filing to, any Governmental Authority or other Person is required to be obtained or made by Seller or any Owner in connection with the execution, delivery, and performance by Seller or any Owner of this Agreement or the Transaction Documents to which Seller or any Owner is a party or the consummation of the Sale.

**<u>Company Contracts</u>**.

(a) <u>Schedule 3.6(a)</u> sets forth a true and complete list of all Contracts to which Seller is a party or is otherwise bound as of the Signing Date ("<u>Company Contracts</u>"), which list shall be separated by the following categories:

(i) any agreement for the employment of any officer, employee, or other individual on a full-time or consulting basis;

(ii) Contracts, including those with customers, involving (A) revenues or receipts in excess of $20,000 or (B) expenditures or payables in excess of $20,000, in the aggregate during the twelve (12) months ended on the Balance Sheet Date, in each case, that are not cancelable by Seller without liability for penalty upon sixty (60) days' notice or less;

(iii) Contracts relating to Indebtedness (other than Indebtedness of the type described in clauses (vi) through (ix) of the definition thereof or involving less than $10,000), including each material agreement guaranteeing, or providing security for, Indebtedness;

(iv) Contracts containing covenants limiting the freedom of Seller to (A) compete with any Person or in any line of business or in any geographic area or (B) use, develop, distribute, or exploit any Company Intellectual Property owned or exclusively licensed by Seller (including exclusive license grants thereof to any Person);

------

(v) Contracts involving a joint venture, partnership, or similar arrangement;

(vi) leases, subleases, licenses, sublicenses, or similar Contracts (A) representing an interest in or in respect of (1) any real property or (2) any other tangible rights, assets, or properties or (B) pursuant to which Seller (1) has been granted a license, covenant-not-to-sue, co-existence agreement, settlement agreement, or other right, title, or interest with respect to any Company Intellectual Property from any third Person, or (2) has granted a license, covenant-not-to-sue, co-existence agreement, settlement agreement, or other right, title, or interest with respect to any Company Intellectual Property owned or exclusively licensed by Seller to any third Person, other than non-exclusive licenses granted by Seller to its customers in the ordinary course of business (each Contract contemplated by this clause (B), an "<u>IP License</u>");

(vii) Contracts pursuant to which Seller has agreed to settle or compromise any pending or threatened Proceeding, other than settlement agreements entered into prior to the Signing Date under which Seller does not have any continuing obligations, liabilities, or rights (excluding immaterial releases);

(viii) collective bargaining agreements, labor Contracts, or other Contracts with any labor union, any employee organization, or any other employee representative body;

(ix) Contracts relating to the future disposition or acquisition of a business by Seller, any merger or business combination with respect to Seller, any completed business acquisition or disposition by Seller within the last year, or pursuant to which Seller has continuing obligations;

(x) Contracts granting any customer a right to "most favored nation" or any other similar preferred pricing terms;

(xi) Contracts with a Material Vendor;

(xii) Contracts the primary purpose of which are to obligate Seller to defend, indemnify, hold harmless, advance attorneys' fees or expenses to, or exculpate, any other Person;

(xiii) any agency, dealer, distributor, sales representative, marketing, or other similar Contracts;

(xiv) Contracts that provide for the indemnification by Seller of any Person or the assumption of any Tax, environmental or other Liability of any Person;

(xv) Contracts to enter into any of the foregoing; and

(xvi) any other Contract not previously disclosed pursuant to the foregoing.

(b) True and complete copies of all Company Contracts as of the Signing Date have been made available to Buyer by Seller. Except for Company Contracts which expire by or are terminated pursuant to their terms after the Signing Date, each Company Contract is in full force and effect, is a valid, legal, and binding obligation of Seller and each other party thereto, and is enforceable in accordance with its terms against Seller and each other party thereto, subject in each case to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, and other similar laws relating to or affecting creditors' rights generally and general equitable principles (whether considered in a proceeding in equity or at law). Neither Seller nor, to the knowledge of Seller, any other party to any Company Contract, is in default, material breach, or violation of any Company Contract, nor has any event occurred that with the lapse of time, or the giving of notice, or both, would constitute a default, material breach or violation under any Company Contract. During the last twelve (12) months, Seller has not given to, or received from, any other party to any Company Contract, any notice regarding any default, breach, or violation under any Company Contract. Except as set forth on <u>Schedule 3.6(b)</u>, Seller has not given to, or received from, any other party to any Company Contract, any notice regarding any intention to terminate or not renew any Company Contract.

------

**<u>Government Contracts</u>**. Except as set forth on <u>Schedule 3.7</u>:

(a) During the past five (5) years, Seller has not breached or violated any Law, certification, representation, clause, provision or requirement pertaining to any Government Contract nor received notice that Seller (i) has breached or violated any Law, certification, representation, clause or provision, (ii) is in breach of any Government Contract or Government Bid or (iii) is subject to any cost disallowance, withhold, offset, overpayment or credit requested by or on behalf of a Governmental Authority. No Government Bid submitted by Seller has been found to be non-responsive.

(b) No notice of termination, cure notice, show cause notice or other indication of termination is currently, or during the past five (5) years has been, in effect pertaining to any Government Contract.

(c) Neither Seller nor any of its officers, directors or shareholders, (i) has been or is currently suspended, excluded, or debarred from contracting with the federal or any state government, or (ii) has been or is subject to an investigation or proceeding by any Governmental Authority that could result in such suspension, exclusion, or debarment.

(d) With respect to each Government Contract and Government Bid: (i) all pricing discounts have been properly reported to and credited to the customer; (ii) Seller has not received any notice of any interruption or decrease in the purchasing of products or services or reasonably expects such an interruption or decrease to result from this transaction; (iii) Seller fully expects and intends to perform all obligations thereunder and Seller has or will obtain all Governmental Authority authorizations and all third-party certifications and approvals required for such performance; (iv) neither Seller nor any of its officers, directors or employees have had access to confidential or non-public information to which they were not lawfully entitled; (v) Seller has not violated any requirements associated with offers of employment or the employment of current or former officials or employees of a Governmental Authority; (vi) there are no applicable overhead rate ceilings; and (vii) there are no assignment of revenues or anticipated revenues.

(e) Except as listed on <u>Schedule 3.7(e)</u>, Seller has not submitted certified cost or pricing data to any Governmental Authority or otherwise with respect to any Government Contract during the past ten (10) years.

(f) All invoices and claims submitted for payment, reimbursement or adjustment submitted by Seller were current, accurate and complete in all material respects as of their respective submission dates.

(g) Neither Seller nor any of its officers, directors or employees is or during the past five (5) years has been under or subject to any administrative, civil or criminal investigation, indictment, information lawsuit, subpoena, document request, administrative proceeding or audit pertaining to an alleged or potential violation of any requirement, regulation or Law applicable to any Government Contract or Government Bid.

------

(h) During the past ten (10) years, other than in the ordinary course of business consistent with past practice, Seller has not conducted or initiated any internal investigation, made a voluntary disclosure or been under any obligation to disclose to any Governmental Authority, or any other Person with respect to any alleged or potential irregularity, misstatement or omission arising under or relating to a Government Contract or Government Bid.

(i) Seller maintains adequate systems of internal controls appropriate for its operations including cost accounting systems, estimating systems, purchasing systems, proposal systems and billing systems that are in compliance with all relevant and applicable requirements of Seller's Government Contracts.

(j) There are no outstanding or unsettled allegations of fraud, false claims or overpayments nor any investigations or audits by any Governmental Authority with regard to Seller's Government Contracts.

(k) All representations, certifications and statements executed, acknowledged or submitted by or on behalf of Seller to a Governmental Authority or any other Person in connection with any Government Contract during the past ten (10) years were current, accurate and complete in all respects as of their respective effective dates and Seller has provided any reasonably required updates to such representations, certifications and statements.

(l) Except as set forth on <u>Schedule 3.7(l)</u>, as to each Government Contract related to Seller, no such Government Contract has been awarded to Seller based on Seller 's having small business status, small disadvantaged business status, protégé status, or other preferential status afforded by applicable Law.

(m) Neither Seller nor any of its officers, directors or employees have (i) used any funds of Seller to offer or provide any kickback, bribe, or unlawful gift or gratuity or (ii) made any unlawful expenditures relating to political activity (the foregoing clauses (i) or (ii), collectively, an "<u>Unlawful Payment</u>"). Seller has not received notice of any Unlawful Payment and Seller has controls to detect and prevent, where possible, any such Unlawful Payments.

(n) There are no outstanding claims, disputes or other Claims with Seller arising under or relating to any Government Contract or Government Bid.

**<u>Compliance</u>**.

(a) Seller is, and since January 1, 2019 has been, in compliance, in all material respects, with all applicable Laws. Since January 1, 2019, Seller has not (i) received written notice alleging any non-compliance with any Law, or (ii) been investigated by any Governmental Authority with regard to actual or alleged non-compliance with any Law. Seller has made available to Buyer substantially all materials within Seller's possession or control relevant to compliance with such Laws, and has identified to Buyer all risks and Liabilities that Seller deems material with respect thereto.

(b) <u>Schedule 3.8(b)</u> contains a list of all Permits owned or held by Seller or its employees that are required for Seller or such employee to conduct its business as it is currently conducted (the "<u>Company Permits</u>"). The Company Permits are valid and in full force and effect. Seller and its employees comply in all material respects with the Company Permits. No Governmental Authority has given written notice to Permits owned or held by Seller or its employees that are required for Seller or such employee to conduct its business as it is currently conducted that it has commenced or intends to commence a Proceeding to revoke, cancel, terminate, suspend, restrict, or modify any Company Permit, or given written notice that it intends not to renew any Company Permit.

------

(c) Neither Seller nor any of its Representatives is currently, or has been in the last ten (10) years: (i) a Sanctioned Person; (ii) organized, resident or located in a Sanctioned Country; (iii) engaging in any dealings or transactions with or for the benefit of any Sanctioned Person or in any Sanctioned Country; or (iv) otherwise in violation of applicable Sanctions Laws, United States import and export laws and regulations, including, but not limited to, those specified in (a) the International Traffic in Arms Regulations (ITAR), 22 CFR Part 120 et seq., (b) the Export Administration Regulations (EAR), 15 CFR Part 730 et seq., and (c) the regulations of the United States Treasury Office of Foreign Assets Control (OFAC), 31 Part 500 et seq., and (d) the anti-boycott Laws administered by the U.S. Department of Commerce and the U.S. Department of Treasury's Internal Revenue Service (collectively, "<u>Trade Control Laws</u>"). Seller has not violated any U.S. or foreign Trade Control Laws, or been the subject of an investigation or other inquiry concerning any violation of any Trade Control Laws or subject to civil or criminal penalties imposed by a Governmental Authority, or made a voluntary disclosure with respect to violations or alleged violations of those laws or regulations.

(d) Neither Seller nor any of its Representatives has at any time made any unlawful payment or given, offered, promised, or authorized or agreed to give, any money or thing of value, directly or indirectly, to any Government Official or other Person in violation of any Anti-Corruption Laws.

(e) Seller has not, in connection with or relating to the business of Seller and in the last five (5) years, received from any Governmental Authority or any other Person any notice, inquiry, or internal or external allegation, made any voluntary or involuntary disclosure to a Governmental Authority, or conducted any internal investigation or audit concerning any actual or potential violation or wrongdoing related to Trade Control Laws or Anti-Corruption Laws.

(f) Without limiting the generality of the foregoing, no allegation of sexual harassment has been made against any Representative of Seller at any time during the last five (5) years.

**<u>Financial Statements</u>**.

(a) <u>Schedule 3.9(a)</u> contains true and complete copies of the (i) unaudited balance sheet of Seller as of December 31, 2022, December 31, 2023 and December 31, 2024 and the related unaudited statements of income[, cash flows and changes in equityholders' equity (deficiency)] for the fiscal year then ended (the "<u>Annual Financial Statements</u>") and (ii) the unaudited balance sheet of Seller as of September 30, 2025 and the related statements of income[ and cash flows] for the nine-month period then ended (the "<u>Interim Financial Statements</u>" and, collectively with the Annual Financial Statements, the "<u>Financial Statements</u>"). As used herein, "<u>Balance Sheet Date</u>" means the date of the latest balance sheet included in the Financial Statements. The Financial Statements were prepared from and in accordance and compliance with GAAP and the books and records of Seller and present fairly the consolidated financial position and results of operations of Seller as of the dates and for the periods indicated in such Financial Statements in conformity with GAAP and sound accounting practices applied on a consistent basis. When delivered pursuant to <u>Section 5.12</u>, the Pre-Closing Financial Statements will be prepared from and in accordance and compliance with GAAP and the books and records of Seller and present fairly the consolidated financial position and results of operations Seller as of the dates and for the periods indicated in such Pre-Closing Financial Statements in conformity with GAAP and sound accounting practices applied on a consistent basis.

------

(b) Except as set forth on <u>Schedule 3.9(b)</u>, Seller does not have any Liabilities, except for Liabilities, (i) reflected or reserved for on the face of the Interim Financial Statements, (ii) that have arisen since the Balance Sheet Date in the ordinary course of the operation of business of Seller and that do not arise from any breach of Contract or violation of Law, or (iii) incurred directly pursuant to the Sale. <u>Schedule 3.9(b)</u> lists all Liabilities of Seller that by the terms thereof require payment or performance in an aggregate amount in excess of $5,000 and that are not included in the Interim Financial Statements.

(c) The systems of internal controls over financial reporting with respect to Seller are sufficient in all material respects to provide reasonable assurance that (i) as of the date the Financial Statements shall be delivered to Buyer, transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and to maintain accountability for the assets of the Business, and (ii) the Financial Statements accurately and fairly reflect in reasonable detail the transactions and dispositions of the assets of Seller in all materials respects. No financial statements of any Person other than Seller are required by GAAP to be included or reflected in any of the foregoing Financial Statements.

**<u>Absence of Certain Changes or Events</u>**. Except as set forth on <u>Schedule 3.10</u>, since December 31, 2024, Seller has conducted its business in the ordinary course of business substantially consistent with past practice and there has not been, with respect to Seller, any:

(a) change in the assets, liabilities, business, results of operations or financial condition of Seller or any Owner that has or could be reasonably expected to have a Material Adverse Effect;

(b) declaration, setting aside or payment of any distribution (in cash or in kind) by Seller to the Owners), or any direct or indirect redemption, purchase or other acquisition by Seller or any Owner of any equity interests of Seller, or any options, rights or agreements to purchase or acquire any equity interests of Seller;

(c) increase in amounts payable by Seller to or for the benefit of, or committed to be paid by Seller to or for the benefit of, any Owner or any officer, director or other consultant, agent or employee of Seller whose total annual compensation exceeds $125,000, or any relatives of such Person, or any increase in any benefits granted under any bonus, stock option, profit-sharing, pension, retirement, severance, deferred compensation, insurance, or other direct or indirect benefit plan, payment or arrangement made to, with or for the benefit of any current or former employee of Seller;

(d) transaction entered into or carried out by Seller other than in the ordinary course of business;

(e) borrowing or agreement to borrow funds by Seller; any incurring by Seller of any other Liability, except Liabilities incurred in the ordinary course of business, or any endorsement, assumption or guarantee of payment or performance of any loan or obligation of any other Person by Seller;

(f) material change in Seller's method of doing business or any change in Seller's accounting principles or practices or Seller's method of application of such principles or practices;

(g) Lien imposed or agreed to be imposed on or with respect to the property or assets of Seller;

(h) sale, lease or other disposition of, or any agreement to sell, lease or otherwise dispose of any of the properties or assets of Seller;

(i) purchase of or any agreement to purchase assets for an amount in excess of $25,000 for any one or more purchases made by Seller or any lease or any agreement to lease, as lessee, any capital assets with payments over the term thereof to be made by Seller exceeding an aggregate amount of $25,000;

------

(j) loan, advance or capital contribution made by Seller to any Person;

(k) modification, waiver, change, amendment, release, rescission or termination of, or accord and satisfaction with respect to, any term, condition or provision of any Contract to which Seller is a party, other than any satisfaction by performance in accordance with the terms thereof in the ordinary course of business;

(l) labor dispute or disturbance adversely affecting the business, operations or condition (financial or otherwise) of Seller, including, without limitation, the filing of any petition or charge of unfair or discriminatory labor practice with any governmental or regulatory authority, efforts to effect a union representation election, actual or threatened employee strike, work stoppage or slowdown;

(m) filing, change, or revocation of any Tax election, change of any annual accounting period in respect of Taxes, adoption or change of any accounting method in respect of Taxes, entrance into any closing agreement (or similar agreement with a Governmental Authority) relating to any Tax, or settlement or compromise of any Tax claim, audit, procedure, assessment or Tax liability, filing of any Tax Return in a manner inconsistent with past practice or inconsistent with applicable Law, filing of any amended Tax Return, entry into any Tax allocation, sharing or indemnity agreement, surrender of a right to claim a Tax refund, consent to an extension or waiver of the statute of limitations period applicable to any Tax claim or assessment, making of any voluntary Tax disclosure or Tax amnesty filing or any entrance into any closing agreement with respect to Taxes, other similar action or omission relating to the filing of any Tax Return or the payment of any Tax, if any such action or omission would have the effect of increasing the Tax liability of any of Seller or for which Buyer or any of its Affiliates would be responsible or would otherwise acquire pursuant to this Agreement, or deferring the withholding, deposit or payment of any payroll Tax obligations pursuant to any COVID-19 Measures; or

(n) Contract entered into by Seller, other than any Contract that (i) is set forth on <u>Section 3.6(a)</u> of the Seller Disclosure Schedule or (ii) has been terminated prior to the Signing Date with no further Liability of Seller thereunder or relating thereto.

**<u>Absence of Litigation, Claims and Orders</u>**. Except as set forth on <u>Schedule 3.11</u>, there are no, and since December 31, 2024, there have been no (a) Claims or Proceedings pending or, to the knowledge of Seller, threatened against Seller or Seller's properties, rights or assets which resulted or would reasonably be expected to result in more than $10,000 in liability to Seller, or (b) Orders outstanding to which Seller or any of Seller's properties, rights or assets is subject. There are no Claims or Proceedings pending or, to the knowledge of Seller, threatened on behalf of or against Seller or any Owner that challenge (i) the validity of this Agreement or any other Transaction Document to which Seller or any Owner is a party or (ii) any action taken or to be taken by it pursuant to this Agreement or any other Transaction Documents to which Seller or any Owner is a party or in connection with the Sale.

**<u>Employee Benefit Plans</u>**.

(a) <u>Employee Benefit Plans</u>. <u>Schedule</u><u> </u><u>3.12(a)</u> sets forth a true and complete list of all plans, policies, programs, agreements or arrangements that are (i) "employee benefit plans" (as that term is defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("<u>ERISA</u>"), whether or not subject to ERISA), (ii) employment agreements, agreements with individual consultants or contractors, stock options, equity compensation, or other equity-based plans or arrangements, phantom interest, bonus, incentive, nonqualified or deferred compensation, retirement, pension, profit sharing severance, termination pay, salary continuation, retention or stay-on, change in control, vacation, welfare-benefit, health, retiree health or welfare, life, disability, accident, reimbursement, fringe-benefit, or similar agreement, practice, policy, plan, fund, program, or arrangement of any kind (whether or not reduced to writing) and all other employee benefit plans, contracts, policies, programs, funds agreements or arrangements, in each case, that (A) Seller sponsors or maintains, or to which Seller contributes or is obligated to contribute, or under which Seller has any present or future obligations or liability (contingent or otherwise) with respect to current or former employees, directors, officers or stockholders of Seller (or their dependents or beneficiaries) or (B) with respect to which Seller is party or has or would reasonably be expected to have any liability or obligation) (each of the foregoing being referred to in this Agreement as an "<u>Employee Plan</u>").

------

(b) <u>Compliance</u>. Each Employee Plan is in compliance with ERISA, the Code, and all other laws applicable to such Employee Plan, and each Employee Plan has been established, maintained, administered and operated in accordance with its terms, any related documents or agreements, and applicable Law. There is no pending or, to the knowledge of Seller, threatened Proceeding (other than routine claims for benefits) relating to any Employee Plan and, since January 1, 2019, none of the Employee Plans have been under audit or investigation by the Internal Revenue Service, the Department of Labor, the Pension Benefit Guaranty Corporation or any other Governmental Authority. All benefits, contributions and premiums required by and due under the terms of each Employee Plan or applicable Law have been timely paid.

(c) <u>Benefit Plan Documents</u>. With respect to each Employee Plan, Seller has made available to Buyer, as applicable, true, correct, and complete copies of, as applicable, (i) all plan documents, including all amendments thereto, (ii) all summary plan descriptions description (and any summaries of modifications with respect thereto), (iii) the most recent annual report (including any reports on Form 5500, with schedules and attachments) filed with the IRS, and (iv) the most recent determination, opinion, or other qualification letter from the IRS with respect to any Employee Plan intended to be qualified under Section 401(a) of the Code; (v) the most recent actuarial reports; (vi) nondiscrimination testing for the most recently completed three plan years; (vii) copies of any notices to or from the IRS or any office or representative of the U.S. Department of Labor or any other Governmental Authority dated within the past three years (or such longer period if the matter contained in such notice is currently unresolved) relating to any compliance issues; (viii) all current trust agreements, insurance contracts and administrative services agreements relating to the funding or payment of benefits; and (ix) all Forms 1094-C and 1095-C filed by any Employee Plan that is subject to Section 4980H of the Code since 2020.

(d) <u>Plan Qualification</u>. Each Employee Plan that is intended to qualify under Section 401(a) of the Code does so qualify and either is a prototype plan covered by an IRS opinion letter, or has received a favorable determination letter from the IRS, and the IRS has not taken and does not have grounds to take action to revoke any such letter.

(e) <u>Multiemployer Plans</u>. Seller does not participate in, contribute to, or have any liability (contingent or otherwise) with respect to any "defined benefit plan" as defined in Section 3(35) of ERISA, a pension plan subject to the funding standards of Section 302 of ERISA or Section 412 of the Code, a "multiemployer plan" as defined in Section 3(37) of ERISA or Section 414(f) of the Code ("<u>Multiemployer Plan</u>"), a "multiple employer welfare arrangement" as defined in Section 3(40) of ERISA, or a "multiple employer plan" within the meaning of Section 413(c) of the Code.

(f) <u>Section 4980B</u>. With respect to each Employee Plan that is a group health plan benefiting any current or former employee of Seller that is subject to Section 4980B of the Code, Seller has complied with the continuation coverage requirements of Section 4980B of the Code and Part 6 of Subtitle B of Title I of ERISA. Seller has no obligation to contribute to any funded or unfunded employee welfare plan, Multiemployer Plan or other plan which provides post-retirement health, accident or life insurance benefits to current or former employees, current or former independent contractors, current or future retirees, their spouses, dependents or beneficiaries, other than health benefits required to be provided to former employees, their spouses and other dependents under Code Section 4980B or similar laws.

------

(g) <u>Affordable Care Act</u>. Seller is, and has been, in compliance with the applicable provisions of the Patient Protection and Affordable Care Act (the "<u>Affordable Care Act</u>"), and no event has occurred, and, to the knowledge of Seller, no condition or circumstance exists, that would reasonably be expected to subject Seller to any liability, penalties, or Taxes under Sections 4980D, 4980H, 6721 or 6722 of the Code or any other provision of the Affordable Care Act. Seller has not been assessed and Seller has no knowledge of any proposed assessment of any Taxes under Sections 4980D, 4980H, 6721 or 6722 of the Code.

(h) Each Employee Plan subject to Section 409A of the Code (if any) is in compliance therewith, such that no Taxes or interest will be due and owing in respect of such Employee Plan failing to be in compliance therewith. Seller has no obligation to "gross-up" or otherwise indemnify any individual for any Tax, including under Sections 409A and 4999 of the Code.

(i) There have not been any non-exempt prohibited transactions (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breaches of any of the duties imposed on "fiduciaries" (within the meaning of Section 3(21) of ERISA) by ERISA with respect to the Employee Plans that could result in any liability or excise tax under ERISA or the Code being imposed on Seller.

(j) The execution of this Agreement and the consummation of the Sale do not constitute a triggering event under any Employee Plan, whether or not legally enforceable, that (either alone or upon the occurrence of any additional or subsequent event) will or may result in any payment (of severance pay or otherwise), acceleration, increase in vesting, or increase in benefits to any current or former participant, employee, member, shareholder, officer, director or manager of Seller.

**<u>Labor Matters</u>**.

(a) Seller is not a party to, or bound by or otherwise subject to, any collective bargaining agreement, Contract, or other agreement or understanding with a labor union, labor organization, employee association, or other employee representative body (each, a "<u>Labor Union</u>"), and no such Contract is being negotiated by Seller. No employee of Seller is represented by a Labor Union and Seller has no duty to bargain with any Labor Union. There are no organizational efforts with respect to the formation of a collective bargaining unit presently being made or, to the knowledge of Seller, threatened involving employees of Seller, and there have been no such efforts since January 1, 2019. Since January 1, 2019, no petition or demand for recognition of a bargaining representative has been made or filed, or, to the knowledge of Seller, threatened to be made or filed, with any labor relations board or other Governmental Authority, by or on behalf of any Labor Union involving employees of Seller. There has never been, nor has there been any threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work, or other similar labor disruption affecting Seller or any employees of Seller.

(b) Except as set forth on <u>Schedule 3.13(b)</u>, there are no pending or, to the knowledge of Seller, threatened Claims or Proceedings, charges, complaints, audits, or investigations under federal, state, or local law against Seller before any Governmental Authority regarding employment discrimination, disability rights or reasonable accommodation, medical leave, pay equity, the Pandemic, safety, or other employment-related charges or complaints, unfair labor practice, grievance, background checks, drug testing, salary history inquiries, leaves of absence, paid sick leave, whistleblowing, wage and hour claims, including, without limitation, related to minimum wage, meal and rest breaks, overtime, or misclassification, WARN Act claims, immigration, unemployment compensation claims, workers' compensation claims, or any other claims brought by any current or former job applicant of Seller or arising from or relating to the employment, including, without limitation, the hiring or firing, of any of the employees of Seller or relationship of Seller, including, without limitation, engagement or termination, with any independent contractor.

------

(c) Seller is, and since January 1, 2019 has been, in compliance with all applicable foreign, federal, state, and local Laws respecting employment and employment practices and terms and conditions of employment, as they relate to employees, interns, consultants, and independent contractors of Seller, including, without limitation, all Laws relating to labor relations, unfair labor practices, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, employee classification, pay equity, child labor, hiring, background checks, drug testing, salary history inquiries, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers' compensation, leaves of absence, paid sick or family leave, including emergency leave under the Families First Coronavirus Response Act or applicable state law, whistleblowing, and unemployment insurance. All individuals characterized and treated by Seller as consultants or independent contractors are properly treated as independent contractors under all applicable Laws. All employees of Seller classified as exempt under the Fair Labor Standards Act and state and local wage and hour Laws are properly classified as exempt. Any individual performing services for the Business who has been classified as an independent contractor, as an employee of some other entity whose services are leased to Seller or as any other non-employee category, has been correctly so classified and is, or was, in fact, not a common law employee.

(d) Seller has not effectuated any "plant closing" (as defined in the Worker Adjustment and Retraining Notification Act (the "<u>Warn Act</u>") or any similar state or local Law) or a "mass layoff" (as defined in the Warn Act, or any similar state or local Law) since January 1, 2019, and it has no plans to undertake any action in the future that would trigger the Warn Act or any similar state or local Law.

(e) <u>Schedule 3.13(e)</u> sets forth a true and complete list of all employees, consultants and independent contractors of Seller, together with their name, current title and total salary, bonus, fringe benefits and perquisites received in the year ended December 31, 2024, and any changes to the foregoing since December 31, 2024.

(f) All compensation, including wages, commissions, bonuses, fees, or other compensation payable to all employees, independent contractors, or consultants of Seller for services performed on or before the Signing Date have been paid in full as of the Signing Date, and all compensation, including wages, commissions, bonuses, fees, or other compensation payable to all employees, independent contractors, or consultants of Seller for services performed prior to the Closing Date will be paid in full on or before the Closing Date. There are no outstanding agreements, understandings, or commitments of Seller or any Owner regarding any compensation, wages, commissions, bonuses, severance, or fees, except as set forth on <u>Schedule 3.13(f)</u>.

(g) Seller has provided to Buyer all inspection reports issued under the Federal Occupational Safety and Health Act of 1970, as amended from time to time ("<u>OSHA</u>") or any other occupational health and safety legislation. There are no outstanding inspection orders or any pending or, to the knowledge of Seller, threatened charges under OSHA or any other applicable occupational health and safety legislation. There have been no fatal or OSHA reportable accidents that could lead to charges under OSHA or any other applicable occupational health and safety legislation. Seller has complied with any Orders issued to Seller under OSHA or any other applicable occupational health and safety legislation and there are no appeals of any Orders that are currently outstanding.

------

(h) Except as set forth on <u>Schedule 3.13(h)</u>, there is not pending against Seller any workers' compensation claims, and there are no facts that would give rise to such a claim or complaint. Seller has not received any notice of a citation, penalty, or assessment from any Governmental Authority with responsibility for workers' compensation or occupational safety and health. Seller is in compliance with all Laws respecting worker's compensation.

**<u>Real Property and Assets</u>**. Seller does not own, nor has it ever owned, any real property.

(a) <u>Schedule 3.14(a)</u> lists (i) all real property with respect to which Seller holds a leasehold interest or otherwise has a license to use (the "<u>Company Leased Real Property</u>"), including for each such Company Leased Real Property, the common name and physical address for such Company Leased Real Property and (ii) each Contract, together with all amendments thereto and guarantees thereof, under which Seller leases or otherwise has the right to use any Company Leased Real Property (such agreements collectively for each Company Leased Real Property, a "<u>Lease</u>"). Except as set forth on <u>Schedule 3.14(a)</u>, Seller has not entered into any subleases, arrangements, licenses, or other agreements relating to the use or occupancy of all or any portion of the Company Leased Real Property by any Person other than Seller. Except as set forth in <u>Schedule 3.14(a)</u>, Seller has not agreed to (A) purchase or lease, nor is Seller obligated to purchase or lease, any real property or (B) dispose of any interest in any of the Leased Real Property or any Lease. True and complete copies of the Lease documents for each of the Company Leased Real Properties have been made available by Seller to Buyer. Except as set forth in <u>Schedule 3.14(a)</u>, (i) each Lease is in full force and effect and Seller has a valid and enforceable leasehold estate in, and enjoys peaceful and undisturbed possession of, all Company Leased Real Property and (ii) there are no existing defaults or conditions, matters, or events that, with or without the passage of time, the giving of notice, or both, would constitute an event of default under a Lease by Seller or any other party to a Lease.

(b) Seller owns good title to, or holds pursuant to valid and enforceable leases, all of the personal property shown to be owned by it on the latest balance sheet included in the Financial Statements (except for such personal property sold or disposed of subsequent to the Balance Sheet Date in the ordinary course of business) or otherwise necessary for the conduct of its business as currently conducted, free and clear of all Liens.

(c) Except as set forth on <u>Schedule 3.14(c)</u>, Seller has good, valid and marketable title to all of the Acquired Assets and all of the Acquired Assets are held free and clear of all Liens. Except as set forth on <u>Schedule 3.14(c)</u>, no financing statement under the Uniform Commercial Code or similar Law naming Seller as a debtor has been filed in any jurisdiction, and Seller is not a party to or bound under any agreement or legal obligation authorizing any party to file any such financing statement. Seller owns, licenses or otherwise has adequate rights to use the Acquired Assets in the manner in which they are presently being used. None of the Acquired Assets or Seller's rights thereto is subject to any actual or, to the knowledge of Seller, threatened proceeding which could reasonably be expected to result in the revocation, termination, supervision, cancellation or adverse modification of any such property or rights thereto. The Acquired Assets constitute all of the assets used in the conduct of the Business as currently conducted and are sufficient for the continued conduct of the Business after the Closing in substantially the same manner as conducted prior to the Closing. The Acquired Assets that consist of buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property of Seller are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such Acquired Assets is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost.

**<u>Taxes</u>**. Except as set forth on <u>Schedule 3.15</u>:

(a) Seller has timely filed (after giving effect to applicable extensions) with the appropriate Governmental Authority all Tax Returns required by Law to be filed by or with respect to it. All such Tax Returns were true, correct, and complete and prepared in compliance with applicable Law, and do not contain a disclosure statement under Section 6662 of the Code or any predecessor provision or comparable provision of state, local or non-U.S. Law.

------

(b) All Taxes owed by Seller (whether or not shown on any Tax Return) have been timely paid in full. The unpaid Taxes of Seller attributable to Pre-Closing Tax Periods shall not, as of the close of business on the Closing Date, exceed, in the aggregate, the amount of Tax Liabilities expressly taken into account in the final determination of Closing Date Indebtedness and Closing Date Net Working Capital. Since the Balance Sheet Date, Seller has not incurred any material liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP.

(c) Seller has (i) duly and timely withheld all Taxes required to be withheld by it and such withheld Taxes have been either duly and timely paid to the proper Governmental Authority or properly set aside in accounts for such purpose and will be duly and timely paid to the proper Governmental Authority; (ii) paid all employer contributions and premiums; (iii) collected and paid all Taxes required to be collected and paid, including sales, use, ad valorem, value added, and excise Taxes; and (iv) filed all federal, state, local and foreign returns and reports with respect to employee income Tax withholding, social security Taxes and premiums, and unemployment Taxes and premiums, all in compliance with the Code (and other applicable Laws) as in effect for the applicable year. Seller has classified in accordance with applicable Law and solely for Tax purposes those individuals performing services for Seller as common law employees, leased employees, independent contractors or agents of Seller. Neither Buyer nor Seller is required to withhold any amounts on payments provided for under this Agreement or any other Transaction Document.

(d) There are no outstanding Liens for Taxes upon any of the Acquired Assets.

(e) Seller has not executed or entered into a closing agreement pursuant to Section 7121 of the Code or any similar or analogous provision of state, local or non-U.S. Law, and Seller does not have a request for a private letter ruling, a request for technical advice, a request for a change of any method of accounting, or any other similar or analogous request that is in progress or pending with any Governmental Authority with respect to Taxes. No Proceedings are presently pending or, to the knowledge of Seller, threatened with regard to any Tax Returns filed by or with respect to Seller or otherwise with respect to Taxes. No power of attorney granted by or with respect to Seller with respect to Taxes related to Seller is currently in force. No claim has ever been made by any Governmental Authority in a jurisdiction where Seller does not file Tax Returns that it is or could be subject to taxation by that jurisdiction.

(f) Neither Seller nor any Owner (with respect to Seller) has made, changed, or revoked any Tax election; elected or changed any method of accounting for Tax purposes or Tax accounting period; amended any Tax Return; filed any Tax Return in a manner inconsistent with past practice (except as otherwise required by Law); surrendered any right to, or filed any claim for, a Tax refund; settled any Proceeding in respect of Taxes; or entered into any contractual obligation in respect of Taxes with any Governmental Authority.

(g) There are no outstanding requests, agreements, consents or waivers to extend the statutory period of limitations applicable to the assessment, reassessment or collection of any Taxes or deficiencies against Seller, and no written request for any such waiver or extension is currently pending.

------

(h) Seller has never been a member of an affiliated, consolidated, unitary, or similar group for federal or applicable state income Tax purposes. Seller is not a party to any agreement relating to Tax sharing, Tax indemnification, or Tax allocation (other than any such agreement entered into in the ordinary course of business and not primarily related to Taxes). Seller does not have any Liability for the Taxes of any Person (including any Owner) by operation of law, as a transferee or successor, by Contract, or otherwise.

(i) <u>Schedule 3.15(i)</u> sets forth the taxable periods of Seller (i) which have been audited or examined by the relevant Governmental Authority within the past six (6) years or (ii) which are currently under audit or examination by any relevant Governmental Authority with respect to Taxes.

(j) Seller has have provided to Buyer (i) true, correct and complete copies of all Tax Returns relating to income Taxes and other material Tax Returns filed by Seller or any predecessor entity filed within the past five (5) years and (ii) true, correct and complete copies of all notices of deficiencies, notices of proposed adjustments, notices of assessments, revenue agent reports, closing agreements, settlement agreements, information document requests, protests, and any other similar document, notice or correspondence received within the past five (5) years, in each case, that Seller (or its representative) has received from, sent to, or entered with the IRS or other Governmental Authority with respect to Taxes or that relates to any Taxes or Tax Return which is not closed by the applicable statute of limitations. Seller has not commenced a voluntary disclosure proceeding in any state or local or non-U.S. jurisdiction that has not been fully resolved or settled.

(k) Seller has not participated in a "reportable transaction" within the meaning of Section 1.6011-4(b) of the United States Treasury Regulations. Seller and each Owner have disclosed on its federal income Tax Returns (and corresponding state, local and non-U.S. income Tax Returns) all positions taken therein that could give rise to "substantial understatement" of federal (state, local and non-U.S.) income Tax within the meaning of Section 6662 of the Code.

(l) Any and all transactions between or among Seller and Affiliates of Seller have occurred on arm's length terms, and such entities have complied with any and all Tax-related requirements and Laws that the arm's-length nature of the terms of such transactions be documented.

(m) Seller has collected, and has on file, and will have on file as of the Closing Date, blanket certificates of resale (or other applicable exemption certificates) for all customers from which Seller does not collect sales Taxes or excise Taxes.

(n) Seller is in compliance in all material respects with all federal, state and non-U.S. Laws applicable to abandoned or unclaimed property or escheat and have paid, remitted or delivered to each jurisdiction all unclaimed or abandoned property required by any applicable Laws to be paid, remitted or delivered to that jurisdiction. Seller does not hold any property or owe any amount that is presumed abandoned under the Laws of any state or other jurisdiction.

(o) No amount that could be received (whether in cash or property or vesting of property) as a result of any of the transactions contemplated by this Agreement or any of the Transaction Documents by any director, manager, officer, or employee of Seller or any Affiliate of Seller who is a "disqualified individual" (as such term is defined in Section 1.280G-1 of the Treasury Regulations) under any employment, severance, or termination agreement, other compensation arrangement or Employee Plan currently in effect would be characterized as an "excess parachute payment" (as such term is defined in Section 280G(b)(1) of the Code).

(p) Seller (i) has no permanent establishment (within the meaning of any applicable Tax treaty), an office or fixed place of business, or other form of taxable nexus in a country other than in which it is organized and (ii) has not been subject to Tax in a country other than in which it is organized.

------

(q) Neither Seller nor any Owner is a foreign person within the meaning of Code Section 1445.

(r) Seller has not applied for or obtained (directly or through another source) any Pandemic-Relief Debt. Seller has (i) complied in all material respects with all provisions of any COVID-19 Measure pursuant to which it reduced its obligation to pay any Tax, deferred its obligation to pay any Tax, or delayed its obligation to file any Tax Return, (ii) not deferred the withholding, deposit or payment of any Taxes under any COVID-19 Measure, and (iii) not sought (nor have any of their Affiliates sought) a covered loan under paragraph (36) of Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by Section 1102 of the CARES Act. Seller has not deferred any payroll Tax obligations pursuant to the CARES Act. Seller has not claimed, received or filed for any employee retention credit.

(s) Seller has not deferred the inclusion of any amounts in gross income pursuant to IRS Revenue Procedure 2004-34, Sections 451(c), 455 or 456 of the Code or any corresponding or similar provision of applicable Law (irrespective of whether or not such deferral is elective). Seller uses the accrual method of accounting for income tax purposes.

(t) Seller was, at all times since December 1, 1998, and remains validly classified as an "S corporation" within the meaning of Sections 1361 and 1362 of the Code (and any applicable similar or analogous state or local income Tax Law), and (ii) neither has nor had any liability for any Tax under Section 1374 of the Code (and any applicable, similar, or analogous state or local Law). Prior to December 1, 1998, since the date of its incorporation, Seller was validly classified as a "C corporation" for federal (and applicable similar or analogous state or local income Tax Law).

All references to Seller shall include any predecessor of Seller.

**<u>Intellectual Property</u>**.

(a) <u>Schedule 3.16(a)</u> contains a true and complete list of all (i) Company Intellectual Property owned by Seller and registered or applied for before a Governmental Authority or domain name registrar ("<u>Registered Company Intellectual Property</u>"), (ii) unregistered Trademarks owned or purported to be owned by Seller and (iii) Software owned by Seller (<u>clauses (i)</u> through <u>(iii)</u>, collectively, "<u>Scheduled Company Intellectual Property</u>"). Seller is the owner of all rights, title, and interests in, to, and under the Scheduled Company Intellectual Property, free and clear of all Liens. In addition to the Scheduled Company Intellectual Property, Seller owns and possesses good title to, or has a valid license or right to use, all other Intellectual Property used by Seller (together with the Scheduled Company Intellectual Property, the "<u>Company Intellectual Property</u>"). Each item of Registered Company Intellectual Property is not subject to any taxes or fees, other than periodic filing and maintenance fees, and no periodic filing or maintenance fees are due within 30 days of the Signing Date. Except as described in <u>Schedule 3.16(a)</u>, no Company Intellectual property is subject to any Lien. The execution and delivery of this Agreement and the consummation of the Sale will not result in the loss or reduction in scope of Seller's rights to or in connection with Company Intellectual Property, whether by termination or expiration of any license, the performance of such license pursuant to its terms, or other means. b has taken commercially reasonable actions required to protect and preserve, and maintain the validity and effectiveness of, all Company Intellectual Property, including paying all applicable fees related to the registration, maintenance and renewal of such Company Intellectual Property.

(b) Except as set forth on <u>Schedule 3.16(b)</u>, to the knowledge of Seller, no third Person is infringing upon, misappropriating, or otherwise violating any Company Intellectual Property that is owned by or exclusively licensed to Seller and Seller has not made a claim of an alleged violation or infringement by any third Person of its rights to or in connection with any Company Intellectual Property.

------

(c) Except as set forth on <u>Schedule 3.16(c)</u>, none of the Registered Company Intellectual Property (i) has lapsed, expired, or been abandoned or (ii) is the subject of any opposition, interference, cancellation, or other proceeding (other than routine office actions) before any Governmental Authority.

(d) <u>Schedule 3.16(d)</u> contains a true and complete list of all IP Licenses in effect as of the Signing Date. Seller has made available to the Buyer true and correct copies of all IP Licenses. Seller has performed all of its obligations under each IP License and, accordingly, each IP License is currently in full force and effect with respect to Seller, subject, in each case, to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, and other similar Laws relating to or affecting creditors' rights generally and general equitable principles (whether considered in a proceeding in equity or at law). Except as set forth in <u>Schedule 3.5</u> or <u>Schedule 3.16(d)</u>, no third Person is in default of any IP License. Except as set forth in <u>Schedule 3.5</u> or <u>Schedule 3.16(d)</u>, the Sale shall not result in a breach or right to terminate any IP License. Except for the IP Licenses, Seller has not assigned, licensed, sublicensed, or otherwise transferred any right under any Company Intellectual Property owned or exclusively licensed by Seller to any third Person other than non-exclusive rights granted in the ordinary course of business. Except for the Contracts set forth in <u>Schedule 3.6(a)(iv)</u> or <u>(vi)</u>, neither Seller nor any Company Intellectual Property that is owned by or exclusively licensed to Seller is subject to any Contract containing any covenant or other provision that limits or restricts the ability of Seller to use, assert, enforce, or otherwise exploit any Company Intellectual Property or any Intellectual Property used by Seller, other than confidentiality requirements and non-exclusive licenses granted by Seller entered into in the ordinary course of business.

(e) Except as set forth in <u>Schedule 3.16(e)</u>, there has been no charge, complaint, claim, demand, notice, or threat made to Seller (i) alleging any interference, infringement, misappropriation, or violation of the Intellectual Property rights of any third Person by Seller or in connection with Seller's conduct of its business (including any claim that Seller must license or refrain from using any Intellectual Property rights of any third Person) or (ii) concerning Seller's use or ownership of any Company Intellectual Property or challenging or questioning the validity or enforceability of any Company Intellectual Property owned or exclusively licensed by Seller. Seller is not interfering with, infringing, misappropriating, or violating the Intellectual Property rights of any Person.

**<u>Data Privacy, Security and Information Technology</u>**.

(a) <u>IT Systems</u>. All Company IT Systems are in good working condition and are sufficient for the operation of the Business as currently conducted, including as to capacity, scalability and ability to process current and anticipated peak volumes in a timely manner. No part of the Company IT Systems is in need of replacement or upgrade to avoid any diminution of the business. No action (including the payment of any increased sum) will be necessary in order to enable the Company IT Systems to continue to be used in the business of Seller immediately after Closing Date to the same extent and in the same manner as they have been used as of immediately prior to the Closing Date. Seller has, at all times, maintained sufficient licenses in respect of its use of Software for the Company IT Systems (including, without limitation, with regard to user numbers, user type, and territorial restrictions).

(i) The Company IT Systems have been regularly maintained and there has been no known malfunction, failure, intrusion, viruses, continued substandard performance, denial-of-service, or other cyber incident, including any cyberattack or other impairment of the Company IT Systems that has caused or could reasonably be expected to cause any: (i) substantial disruption of or interruption in or to the use of such Company IT Systems or the conduct of the business; (ii) material loss, destruction, damage or harm of or to the business or its operations, personnel, property or other assets; or (iii) Liability of any kind to Seller. Further, there is no known ongoing matter or issue in respect of the Company IT Systems which would reasonably be expected to have a Material Adverse Effect.

------

(ii) Seller has taken all commercially reasonable steps, consistent with applicable industry best practices, to preserve, maintain, protect and safeguard the confidentiality, availability, security, and integrity of the Company IT Systems, which includes measures that are designed to prevent and avoid (i) any material loss, failure, and corruption, (ii) any unauthorized access to or use of Personal Information, and (iii) the injection or installation of any Malicious Code.

(iii) Seller has implemented and maintains appropriate backups, data recovery, disaster recovery and business continuity plans, and commercially reasonable firewall and anti-virus protection hardware and/or Software. Seller acts in compliance with such plans and procedures and tests such plans and procedures on a regular basis, and such plans and procedures have been proven effective upon such testing.

(b) <u>Data Security</u>. Seller has commercially reasonable administrative, technical, and physical safeguards in place and has at all times collected, handled, transferred, used, imported, exported, protected and otherwise processed all Personal Information, and other information of or relating to individuals protected by Law, in accordance with the Data Requirements. There has been no Security Breach or any other act or omission that has compromised, in any material respect, the security, confidentiality or integrity of Information.

(c) <u>Data Privacy</u>. Seller has in place Data Policies that are commercially reasonable and comply with all applicable Data Laws and Data Agreements concerning the collection, use, processing, storage, transfer, and security of Personal Information. Seller has, during the past (6) six years, complied with and is presently in compliance with all Data Requirements, and the Closing will not violate any Data Requirements. In respect of any Personal Information processed by Seller, such processing is performed in a manner that is compliant with the Data Laws. Seller is not in violation of any restrictions on the transfer of data in any contracts or agreements to which Seller, or any of its contractors that processes Personal Information on its behalf, is bound. All communications with third parties in the conduct of the business have complied with applicable Law. No materials published or distributed by Seller constitute obscene material, contain defamatory statements or material, constitute false advertising, are in violation of the right of publicity, or otherwise violate applicable Law.

(d) <u>Security Incidents or Investigations</u>. No Claims have been asserted or threatened in writing against Seller relating to data security, privacy, or the storage, transfer, use or processing of data (including Personal Information) or in relation to the processing of Personal Information under any Data Agreements and there are no circumstances that are reasonably likely to lead to a Claim relating to data security, privacy, or the storage, transfer, use or processing of data (including Personal Information). Similarly, Seller has not (i) been the subject of any audits, notices, investigations or other inquiries or actions relating to data security, privacy, or the storage, transfer, use or processing of data (including Personal Information) from any Governmental Body; or (ii) received any written Claims or complaints regarding the collection, dissemination, storage, distribution, transfer or other use or disposition of any sensitive information or processing of any Personal Information or any rights requests of any data subject, or the actual or alleged violation of any Data Laws.

------

**<u>Insurance</u>**. <u>Schedule 3.18</u> sets forth a true and complete list of all insurance policies covering the assets, business, equipment, properties, operations, employees, consultants, managers, officers, and directors of Seller (collectively, the "<u>Policies</u>"), and such list correctly states the name of the insurer, the name of each insured party, the type and amount of coverage, the expiration date and the premium amount of each such Policy. Seller has made available to Buyer complete and accurate copies of all Policies. Except as set forth on <u>Schedule 3.18</u>, (i) there is no claim by Seller currently pending, and Seller has not made a claim since January 1, 2020, under any Policy as to which coverage has been questioned, denied, or disputed by the insurers of such Policy and (ii) no insurer has threatened in writing to cancel any Policy. All Policies are in full force and effect, all premiums covering all periods up to and including the Closing Date under all Policies have been paid or shall have been paid as of the Closing, and Seller is otherwise in compliance with the terms of the Policies. No notice of cancellation, termination or premium increase has been received by Seller with respect to any Policy, and Seller has not done or omitted to do anything that might render any Policy void or unenforceable or otherwise limit, prejudice or reduce recovery under any Policy. The Policies do not provide for any retrospective premium adjustment or other experience-based liability on the part of Seller. No Policy has been subject to any lapse in coverage. There are no claims related to the business of Seller pending under any such Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. Neither Seller nor any of Affiliate of Seller or any Owner is in default under, or has otherwise failed to comply with any provision contained in any such Policy. The Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to Seller and are sufficient for compliance with all applicable Laws and Contracts to which Seller is a party or by which it is bound. No Seller is a co-insurer under any term of any insurance policy.

**<u>Environmental Matters</u>**. Except as set forth in the Environmental Reports or on <u>Schedule 3.19</u> (the "<u>Disclosed Conditions</u>"):

(a) Seller is, and has been, in compliance with all Environmental Laws.

(b) Seller has obtained and is in compliance with all required Environmental Permits and has been in the past in compliance with such permits. <u>Schedule 3.19(b)</u> sets forth a list of each Environmental Permit obtained by Seller.

(c) There are no actions, Orders, written claims, or written notices pending or issued to or, to the knowledge of Seller, threatened against Seller alleging violations of or liability under any Environmental Law or otherwise concerning the Release or management of Hazardous Substances.

(d) For as long as owned or operated by Seller and, to the knowledge of Seller, prior thereto, there has been no Release of any Hazardous Substances at, on, or from the Company Leased Real Property or any other real property now or formerly owned or operated by Seller, in each case, in a manner that could reasonably be expected to result in any Liability for Seller under Environmental Laws. No real property currently or formerly owned, operated or leased by Seller is listed on, or has been proposed for listing on, the National Priorities List (or CERCLIS) under CERCLA, or any similar state list. There are no active or, to the knowledge of Seller, abandoned aboveground or underground storage tanks located owned or operated by Seller or located at the Company Leased Real Property or any other real property now or formerly owned or operated by Seller. Neither Seller nor any Owner has received any Environmental Notice regarding potential liabilities with respect to such off-site Hazardous Substances treatment, storage, or disposal facilities or locations used by Seller or any Owner. There are no environmental reports, studies, audits, records, sampling data, site assessments, risk assessments, economic models and other similar documents with respect to the business or assets of Seller or any currently or formerly owned, operated or leased real property which are in the possession or control of Seller or any Owner related to compliance with Environmental Laws or the Release of Hazardous Materials.

(e) Except as set forth on <u>Schedule 3.19(e)</u>, Seller is not subject to any contractual obligation to indemnify a third party against any Liabilities arising under Environmental Laws.

------

(f) For purposes of this Agreement:

"<u>Environmental Laws</u>" means any Laws relating to (A) Releases or threatened Releases of Hazardous Substances or materials containing Hazardous Substances, (B) the manufacture, handling, transport, use, treatment, storage, emission, discharge, or disposal of Hazardous Substances or materials containing Hazardous Substances, or (C) pollution or protection of the environment or of human health and safety as such is affected by Hazardous Substances or materials containing Hazardous Substances.

"<u>Environmental Permits</u>" means any Permit pursuant to Environmental Laws.

"<u>Hazardous Substances</u>" means (A) those substances, materials, or wastes defined as toxic, hazardous, acutely hazardous, pollutants, or contaminants, in, or regulated under, any Environmental Law, and all Regulations thereunder and any analogous foreign or state statutes, (B) petroleum and petroleum products, including crude oil and any fractions thereof, (C) natural gas, synthetic gas, and any mixtures thereof, and (D) polychlorinated biphenyls, asbestos, or molds that would reasonably be expected to have an adverse effect on human health, per- and poly-fluoroalkyl substances, and urea formaldehyde foam insulation.

"<u>Release</u>" means any release, spilling, leaking, pumping, pouring, discharging, emitting, emptying, escaping, leaching, injecting, dumping, disposing, or migrating into or through the indoor or outdoor environment.

**<u>Brokers</u>**. No broker, financial advisor, finder, or investment banker or other Person is entitled to any broker's, financial advisor's, finder's, or other fee or commission in connection with the Sale based upon arrangements made by or on behalf of Seller, any Owner or any of their Affiliates for which Buyer, Seller or any Owner may become liable, except as set forth on <u>Schedule 3.20</u>.

**<u>Customers and Vendors</u>**.

(a) <u>Schedule 3.21(a)(i)</u> sets forth a true, correct and complete list of the twenty (20) largest customers of Seller (the "<u>Material Customers</u>") (measured by aggregate sales of Seller) for the twelve (12) months ended on the Balance Sheet Date. <u>Schedule 3.21(a)(ii)</u> sets forth a true, correct and complete list of the twenty (20) largest vendors of Seller (the "<u>Material Vendors</u>") (measured by aggregate spend of Seller) for the twelve (12) months ended on the Balance Sheet Date.

(b) Except as set forth on <u>Schedule 3.21(b)</u>, since the Balance Sheet Date, Seller has not received any written notice that (i) any Material Customer or Material Vendor plans to terminate its relationship with or materially decrease the amount of business done with Seller, (ii) any Material Customer has requested or received a decrease in the prices paid to Seller, or (iii) any Material Vendor has requested or received an increase in the prices charged to Seller other than in the ordinary course of business.

(c) Except as set forth on <u>Schedule 3.21(c)</u>, since the Balance Sheet Date, Seller has not been involved in any dispute with any Material Customer or Material Vendor that would have the effect of adversely affecting the commercial relationship between Seller, on the one hand, and the Customer or Material Vendor, as applicable, on the other hand.

**<u>Accounts Receivable and Accounts Payable</u>**. Except as set forth on <u>Schedule 3.22</u>, all accounts receivable reflected in the Financial Statements (net of allowances for doubtful accounts as reflected thereon and as determined in accordance with sound accounting principles as historically practiced) are (a) valid, genuine, and existing, (b) not subject to any material defenses, setoffs, or counterclaims except as may be reflected on the Interim Balance Sheet, and (c) current (not more than one hundred twenty (120) days past due). No accounts payable of Seller have been outstanding for more than six (6) months, except for amounts payable that are being contested in good faith. None of the accounts receivable are from any Affiliate of Seller or from any Owner or any of their respective Representatives, family members or Affiliates (as applicable).

------

**<u>Affiliate Transactions; Related Businesses</u>**.

(a) Except as set forth on <u>Schedule 3.23</u>, as of the date immediately following the Closing, no Affiliate of Seller, any Owner or any of their respective Representatives, family members or Affiliates (as applicable) (i) will be a party to any Contract or transaction (A) with Seller or (B) that pertains to the Business or operation of Seller or (ii) will own, lease or have any direct or indirect economic or other interest in any asset, tangible or intangible, that is used by Seller in carrying out its Business or operations.

(b) Neither Seller nor any Owner owns, directly or indirectly, any equity or other ownership interest in any Person (i) who is knowingly engaged in any business of any Buyer Affiliated Company, or (ii) who, to the knowledge of Seller, is a customer of Seller, other than such Person's ownership of five percent (5%) or less of the combined voting power of all issued and outstanding voting securities of any publicly held corporation whose stock is traded on a major stock exchange or quoted on NASDAQ.

**<u>Books of Account; Records</u>**. The general ledgers, ownership record books, minute books and other records relating to the assets, properties, Contracts and outstanding legal obligations of Seller are complete and correct in all material respects, have been maintained in accordance with commercially reasonable business practices, and, to the extent required by GAAP, the matters contained therein are appropriate and accurately reflected in the Financial Statements in all material respects. Seller has made available to Buyer all books and records of Seller relating to the Business that are material to a commercially reasonable evaluation of the Business or as reasonably requested by Buyer in connection with its due diligence.

**<u>Pandemic Matters</u>**. Seller has not applied for or obtained (directly or through another source) any Pandemic-Relief Debt.

**<u>Inventories</u>**. All items included in Seller's Inventory consist of a quality and quantity usable and, with respect to finished goods, saleable, in the ordinary course of business, in all material respects, except for obsolete items and items of below-standard quality, none of which are material in the aggregate, and all of which have been written off or written down in accordance with GAAP in the Financial Statements or on the accounting records of Seller as of the Closing Date, as the case may be. Seller is not in possession of any inventory not owned by Seller, including goods already sold. The quantities of each item in the Inventory are reasonable in the present circumstances of Seller and consistent with Seller's historical practices. All items of Inventory are now valued, and will be valued on the Closing Date, according to GAAP.

**<u>Full Disclosure</u>**. The representations and warranties contained in this <u>Article III</u>, and the Schedules thereto, do not contain any untrue statement of a material fact or omit to state any known material fact necessary in order to make the factual statements contained herein, in light of the circumstances under which they were made, not misleading. To the knowledge of Seller, there are no material adverse facts that have not been disclosed to Buyer in writing or on schedules attached hereto relating to the assets of Seller and operation of the Business. The performance of due diligence shall not, by itself, limit the indemnification obligations of any Party hereunder.

------

3.28 **<u>Exclusive Representations; Disclaimer of Other Warranties</u>**. Except for the representations and warranties expressly set forth in this Agreement and the other Transaction Documents, Seller and the Owners make no other representations or warranties, express or implied, at law or in equity, with respect to Seller, the Business, or the Acquired Assets, including any implied warranties of merchantability, fitness for a particular purposes, or arising from course of dealings or usage of trade. Buyer acknowledges that it and its Representatives have conducted such investigation of Seller, the Business, and the Acquired Assets as Buyer deemed appropriate and that Buyer is acquiring the Acquired Assets in reliance solely on its own investigation and the representations and warranties expressly set forth in this Agreement and the other Transaction Documents. Nothing in this Agreement shall limit or restrict any claim for Fraud as expressly provided herein.

**ARTICLE IV**<br> **REPRESENTATIONS AND WARRANTIES OF LPTH AND BUYER** 

LPTH and Buyer hereby, jointly and severally, represent and warrant to Seller and the Owners as follows:

**<u>Organization and Qualification</u>**. LPTH is a corporation and Buyer is a limited liability company, in each case, duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and has all the requisite power and authority to own, lease, and operate its properties and assets and to carry on its business as it is now being conducted. Each of LPTH and Buyer is duly qualified to do business and is in good standing in each of the jurisdictions in which the Laws of such jurisdiction; the ownership, operation, or leasing of its properties or assets; or the conduct of its business require it to be so qualified, except where the failure to be so qualified would not materially and adversely affect LPTH's or Buyer's ability to consummate the Sale.

**<u>Authority; Enforceability</u>**. Each of LPTH and Buyer has all necessary power and authority to execute and deliver this Agreement, each other Transaction Document to which it is a party, and each instrument required to be executed and delivered by it prior to or at the Closing, to perform its obligations hereunder and thereunder, and to consummate the Sale. The execution and delivery by each of LPTH and Buyer of this Agreement, each other Transaction Document, and each instrument required to be executed and delivered by it prior to or at the Closing, the performance of its obligations hereunder and thereunder, and the consummation of the Sale have been duly and validly authorized by all necessary action on the part of each of LPTH and Buyer. Other than the Buyer Approvals, no other approval or similar proceedings on the part of Buyer are necessary to authorize this Agreement, any Transaction Document to which it is a party, or any instrument required to be executed and delivered by it prior to or at the Closing or the consummation of the Sale. This Agreement, each other Transaction Document to which it is a party, and each instrument required to be executed and delivered by it prior to or at the Closing has been duly and validly executed and delivered by each of LPTH and Buyer and, assuming the due authorization, execution, and delivery thereof by the other parties thereto, constitutes a legal, valid, and binding obligation of each of LPTH and Buyer, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, and other similar laws relating to or affecting creditors' rights generally and general equitable principles (whether considered in a proceeding in equity or at law).

------

**<u>No Conflict; Required Filings and Consents</u>**. Except for (a) the filing of such reports under Section 13(a) of the Exchange Act, and such other compliance with the Exchange Act and the rules and regulations thereunder, as may be required in connection with this Agreement and the Transactions; (b) filings with the NASDAQ; and (c) such filings and approvals as may be required by any applicable state securities or "blue sky" Laws (collectively, the "<u>Buyer Approvals</u>"), the execution and delivery by Buyer or any other Buyer Affiliated Company of this Agreement, the other Transaction Documents to which Buyer or any other Buyer Affiliated Company is a party, or any instrument required by this Agreement to be executed and delivered by Buyer or any other Buyer Affiliated Company on or prior to the Closing do not, and the performance of this Agreement, the other Transaction Documents to which Buyer or any other Buyer Affiliated Company is a party, and any instrument required by this Agreement to be executed and delivered by Buyer or any other Buyer Affiliated Company on or prior to the Closing shall not, with or without the passage of time, the giving of notice, or both, (i) conflict with, require a consent or notice under, or violate the Organizational Documents of Buyer or any other Buyer Affiliated Company, (ii) conflict with, require a consent or notice under, or violate any Law or Order applicable to Buyer or such Affiliates or by which any of its properties, rights, or assets is bound or affected, except any such conflict or violation that would not adversely affect the ability of Buyer or any other Buyer Affiliated Company to consummate the Sale, or (iii) result in any breach or violation of, require a consent or notice under, constitute a default under, impair the rights or alter the rights or obligations of any party under, give to others any rights of termination, amendment, acceleration, or cancellation of, or result in the creation of a Lien on any of the properties, rights, or assets of Buyer or any other Buyer Affiliated Company pursuant to, any Contract to which Buyer or any other Buyer Affiliated Company is a party or by which Buyer or any other Buyer Affiliated Company or their respective properties, rights, or assets is bound, except any such breach, violation, default, or other event that would not adversely affect the ability of Buyer or any other Buyer Affiliated Company to consummate the Sale. Other than the Buyer Approvals, no Governmental Approval of, or Filing to, any Governmental Authority or other Person is required to be obtained or made by Buyer in connection with the execution, delivery, and performance by Buyer or any other Buyer Affiliated Company of this Agreement or the Transaction Documents to which Buyer or any other Buyer Affiliated Company is a party or the consummation of the Sale, except for Governmental Approvals that, if not obtained or made, would not adversely affect the ability of Buyer or any other Buyer Affiliated Company to consummate the Sale.

**<u>SEC Documents</u>**. LPTH's Annual Report on Form 10-K for the year ended June 30, 2025, its Quarterly Report of Form 10-Q for the quarter ended September 30, 2025, and its Current Reports on Form 8-K filed since June 30, 2025 are available through www.sec.gov/edgar.

**<u>LPTH Stock</u>**. The shares of LPTH Stock to be issued as the Contingent Consideration Payments, when issued and delivered in accordance with this Agreement, will be duly authorized, validly issued, fully paid and non-assessable.

**<u>Absence of Litigation, Claims and Orders</u>**. There are no Claims or Proceedings pending or, to the knowledge of LPTH or Buyer, threatened on behalf of or against Buyer or any other Buyer Affiliated Company that (i) challenge (A) the validity of this Agreement or any other Transaction Document to which it is a party or (B) any action taken or to be taken by it pursuant to this Agreement or any other Transaction Documents to which it is a party or in connection with the Sale, (ii) would reasonably be expected to impair or delay the Sale or the ability of Buyer or any other Buyer Affiliated Company to consummate the Sale or (iii) would reasonably be expected to adversely affect performance of Buyer or any other Buyer Affiliated Company under this Agreement or the consummation of the Sale.

**<u>Brokers</u>**. No broker, financial advisor, finder, or investment banker or other Person is entitled to any broker's, financial advisor's, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or the other Transaction Documents based upon arrangements made by or on behalf of Buyer or any other Buyer Affiliated Company for which Buyer, Seller or any Owner may become liable.

------

**ARTICLE V**<br> **ADDITIONAL AGREEMENTS**

**<u>Further Assurances; Closing Efforts</u>**.

(a) Each Party will cooperate with the other Parties and execute and deliver to the other Parties such other instruments and documents and take such other actions as may be reasonably requested from time to time by the other parties as necessary to carry out, evidence and confirm the intended purposes of this Agreement. Without limiting the generality of the foregoing, during the period from the Signing Date to the Closing, each Party shall use commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other Parties in doing, all things necessary, proper or advisable to consummate and make effective, as promptly as practicable, the Sale, including using commercially reasonable efforts to (i) cause the closing conditions set forth in <u>Article VII</u> for which it is responsible to be satisfied (but not waived) and the Closing to occur, in each case as promptly as practicable, (ii) not take any action intended to, or that would reasonably be expected to, prevent the Closing, and (iii) in the case of Seller and the Owners, (A) make all required notices to the Persons identified on <u>Schedule 5.1(a)</u> or such other third parties as may be reasonably requested by Buyer (each, a "<u>Notice Target</u>") and obtaining all necessary authorizations, consents, approvals, exemptions or other actions from such Persons identified on <u>Schedule 5.1(a)</u> or such other third parties as reasonably requested by Buyer (each, a "<u>Consent Target</u>"), and making all filings and taking all other steps as may be necessary to obtain such authorizations, consents, approvals, exemptions or other actions, and (B) defending and settling any Proceedings or other action, whether judicial or administrative, challenging this Agreement or the consummation of the Sale, including seeking to have any stay or temporary restraining order entered by any Governmental Authority (including any customer) vacated or reversed.

(b) In furtherance of the <u>Section 5.1(a)(i)</u> above, the Parties agree to jointly contact the Notice Targets and Consent Targets prior to Closing as follows: (i) Seller shall arrange for individual conversations through an appropriate medium with an appropriately authorized representative of each Notice Target whereby Seller's and Buyer's designated staff will jointly inform such Notice Target of the proposed Sale; and (ii) Seller shall arrange for individual conversations through an appropriate medium with an appropriately authorized representative of each Consent Target whereby Seller's and Buyer's designated staff will jointly inform such Consent Target of the proposed Sale and also seek reasonable assurances (whether oral or in writing) that such Consent Target consents to the proposed Sale and will not exercise any right of termination, amendment, cancellation, acceleration or other right available under the applicable Contract that may be available as a result of the proposed Sale (the conversations referred to in clause (i) and (ii) above, collectively, the "<u>Target Conversations</u>").

(c) In addition, after the Closing, Seller and each Owner, at Buyer's request, shall prepare, execute and deliver such further instruments of conveyance, sale, assignment or transfer, and shall take or cause to be taken such other or further action as Buyer shall reasonably request at any time or from time to time in order to perfect, confirm or evidence in Buyer title to all or any part of the Acquired Assets.

**<u>Confidential Information</u>**. At all times after the Closing, neither Seller nor any Owner shall directly or indirectly copy, disclose, disseminate or use, for personal benefit or the benefit of any third party, any Confidential Information of or relating to Seller or the Business, except for the disclosure of such Confidential Information as may be required by law or by court or administrative order (but only to the extent so required). Each Party acknowledges that, from and after the Closing, all such Confidential Information is and shall continue to be the exclusive proprietary property of Seller and Buyer. Seller and each Owner further agrees that from and after the Closing Date, it shall forward to Buyer any such Confidential Information that at any time comes into its possession or the possession of any of its Affiliates.

------

**<u>Restrictive Covenants</u>**.

(a) For a period of five (5) years commencing on the Closing Date (the "<u>Restricted Period</u>"), Seller and each Owner shall not, directly or indirectly (whether individually, through an Affiliate or in conjunction with, or as a member, owner, investor, partner, manager, shareholder, director, officer, employee, consultant, creditor, lender or agent or representative of any Person, other than acting in such capacity on behalf of Buyer or any Buyer Affiliated Company):

(i) undertake, participate in, carry on, engage in or assist others in engaging in, or have any financial or other interest in, or in any other manner advise or assist any other Person in connection with the operation of, a business qualitatively similar to the Business (a "<u>Restricted Business</u>") anywhere in the United States of America, the United Kingdom or the European Union (collectively, the "<u>Restricted Territory</u>");

(ii) have an interest in any Person that engages directly or indirectly in a Restricted Business anywhere in the Restricted Territory in any capacity, including as a partner, shareholder, member, manager, employee, principal, agent, trustee or consultant;

(iii) solicit, entice, encourage or influence, or attempt to solicit, entice, encourage or influence, any current employee, consultant, or independent contractor of Buyer or any Buyer Affiliated Company to resign or leave the employ of Buyer or any Buyer Affiliated Company, or otherwise hire, employ, engage or contract any such employee, consultant, or independent contractor to perform services other than for the benefit of Buyer or any Buyer Affiliated Company;

(iv) solicit, entice, encourage or influence, or attempt to solicit, entice, encourage or influence, any customer, client, vendor, or supplier of Buyer or any Buyer Affiliated Company to adversely alter, reduce or terminate its business relationship with Buyer or any Buyer Affiliated Company;

(v) otherwise take any action which may reasonably be anticipated to interfere with or disrupt any business relationship, contractual or otherwise, between Buyer or any Buyer Affiliated Company and any client, customer, vendor, or agent of Buyer or any Buyer Affiliated Company; or

(vi) directly or indirectly engage in any conduct, oral or otherwise, that is intended to disparage or damage or would reasonably be expected to disparage or damage the reputation, goodwill, or standing in the community of Buyer or any Buyer Affiliated Company (*provided*, *however*, that this subsection shall not prohibit any party hereto from making any statement or otherwise engaging in any conduct (A) in connection with enforcing such party's rights or defending any claim under this Agreement or any Transaction Document, or (B) that is required by Law or by any governmental authority or by interrogatory, subpoena, civil investigative demand, or similar process).

(b) None of the following activities shall constitute a violation of <u>Section 5.3(a)</u>: (i) advertising job openings by the use of newspapers, magazines, the internet and other media not specifically directed at individual employees, consultants or independent contractors of Buyer or any Buyer Affiliated Company, (ii) owning, directly or indirectly, solely as a passive investment, securities of any Person traded on any national securities exchange if such Seller is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own 2% or more of any class of securities of such Person and (iii) any actions taken in furtherance of the Sale.

------

(c) Notwithstanding anything to the contrary set forth herein, in the event of a breach of any of the provisions of <u>Section 5.3(a)</u> (the "<u>Restrictive Covenants</u>"):

(i) Buyer or any Buyer Affiliated Company shall have the right and remedy, without regard to any other available remedy, to (A) seek to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, and (B) seek to have issued a temporary restraining order or an injunction restraining any such breach without posting of a bond; it being understood that any breach or threatened breach of any of the Restrictive Covenants would cause irreparable and material damages to Buyer or any Buyer Affiliated Company, the amount of which cannot be readily determined and as to which neither Buyer nor any Buyer Affiliated Company will have any adequate remedy at law or in damages.

(ii) The Parties acknowledge and agree that, due to the unique and competitive nature of Seller's Business, the Restrictive Covenants are reasonable and necessary for the protection and preservation of the value and the goodwill of Buyer's businesses, constitute a material inducement to Buyer to enter into this Agreement and consummate the Sale, and are reasonable and valid in geographical and temporal scope and in all other respects. Further, Seller and each Owner acknowledges and agrees that none of the Restrictive Covenants will prevent Seller or such Owner from obtaining other suitable employment during the period in which Seller or such Owner is bound by the Restrictive Covenants and Seller or such Owner has sufficient assets and skills to provide a livelihood while such Restrictive Covenants remain in force. In the event that any Restrictive Covenant should ever be finally adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable Law in any jurisdiction or to be otherwise invalid or unenforceable, the Parties agree that such Restrictive Covenant shall be deemed amended in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable Law to the extent necessary in order that such provision be valid and enforceable, it being the desire and intent of the Parties that the Restrictive Covenants be enforced to the fullest extent permissible under the Laws and public policies applied in each jurisdiction in which enforcement is sought. Seller and each Owner further covenant that Seller or such Owner will not challenge the reasonableness or enforceability of any of the covenants set forth in this <u>Section</u>**<u> </u>**<u>5.3</u>.

(d) In the event of any breach or violation by Seller or an Owner or any Affiliate of Seller or such Owner of any of the Restrictive Covenants, the time period of such covenant shall be tolled as to Seller or such Owner until such breach or violation is resolved.

(e) The Restrictive Covenants and each provision contained in this <u>Section 5.3</u> are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction. Further, Seller and each Owner acknowledge and agree that the Restrictive Covenants set forth in <u>Section 5.3</u> are independent covenants and shall be in addition to, and shall not supersede or be deemed to be in lieu of, any restrictive covenants set forth in any other agreement between Seller or any Owner and Buyer or any Buyer Affiliated Company.

------

**<u>Employees and Employee Benefits Matters</u>**.

(a) Upon the Closing and effective as of the day immediately preceding the Closing Date, Seller will terminate the employment of all of its employees at Seller's cost, and Seller shall be responsible for making all severance payments to such employees in respect of such terminations. Seller shall be solely responsible for compliance with the WARN Act and similar state and local laws relating to layoff or termination notifications to employees as it relates to any employment loss prior to and on the Closing Date. Buyer shall not assume or have any obligations or liabilities with respect to such employees or terminations. For the avoidance of doubt, neither Seller nor the Owners shall be responsible for any obligations owed by LPTH or Buyer pursuant to agreements or arrangements entered into by LPTH or Buyer with any employees of Seller.

(b) Buyer (or a Buyer Affiliated Company) may offer employment on an at-will basis, effective as of 12:01 a.m. on the Closing Date, to such employees of Seller as Buyer deems advisable, including conditioning any such continued employment on such employees entering into confidentiality/non-solicitation/non-acceptance agreements that are consistent with Buyer's standards. To the extent permitted by applicable Law, Seller shall promptly furnish to Buyer all information relating to each such employee as Buyer may reasonably require in connection with its (or any Buyer Affiliated Company's) potential employment or employment of such persons. Buyer and Seller agree to utilize, or cause their respective Affiliates to utilize, the alternate procedure set forth in Revenue Procedure 2004-53 with respect to wage reporting if requested by Buyer. In no event shall Buyer (or such Buyer Affiliated Company) be considered a successor employer. Employees of Seller who accept such offers and commence employment with Buyer are referred to herein as the "<u>Transferred Employees</u>," provided that Buyer (or the applicable Buyer Affiliated Company) shall not assume responsibility for any such employee until such employee commences employment with such Buyer Affiliated Company. Seller hereby consents to the hiring of the Transferred Employees by Buyer and waives, with respect to the employment of such Transferred Employees, any claims or rights Seller may have against Buyer or any such Transferred Employees under any noncompetition, confidentiality or employment agreement or otherwise as a result of such employment or engagement.

(c) Seller and the Owners shall cause all Employee Plans and Benefit Arrangements of Seller to be terminated and provide Buyer with evidence of such termination at or prior to the Closing.

(d) Seller shall, and the Owners shall cause Seller to, pay on or prior to the Closing Date, (i) all salaries, wages, benefits, bonuses, commissions, overtime, sick and personal days, accrued vacations, severance pay, pension or profit sharing benefits, and all other amounts owing to any Owner and the other current and former members, officers, managers, directors, employees and consultants through the day immediately preceding the Closing Date, together with all amounts due for payroll, employment, social security and other Taxes in respect thereto, (ii) all accrued and earned bonuses that it owes or will owe to its current or former employees as of the day immediately preceding the Closing Date, and (iii) all amounts and other benefits (including pursuant to the Employee Plans) that have accrued on behalf of and are payable to any current or former employee of Seller (or is attributable to expenses properly incurred by such employee or former employee) as of the day immediately preceding the Closing Date, and neither Buyer nor any Buyer Affiliated Company shall assume any liability for any of the foregoing. From and after the Closing, as between the Buyer Affiliated Companies, on the one hand, and Seller and the Owners, on the other hand, Seller and the Owners and not the Buyer Affiliated Companies shall be liable for all claims by employees or former employees for medical, dental, life insurance, health, accident or disability, reimbursement or any other benefits payable by reason of any event that occurs prior to the Closing Date.

(e) No provision of this <u>Section 5.4</u> shall (i) create any third party beneficiary or other rights in any employee or former employee (including any beneficiary or dependent thereof) of Seller or any other Person, (ii) constitute or create an employment agreement or (iii) constitute or be deemed to constitute an amendment to any Employee Plan or any employee benefit plan, policy or arrangement sponsored or maintained by Buyer or any Buyer Affiliated Company.

**<u>Retained Liabilities</u>**. Seller and the Owners shall, on behalf of Seller, pay or otherwise satisfy or cause to be paid or otherwise satisfied in full, promptly when due, all Retained Liabilities.

------

**<u>Forwarding of Funds</u>**. After the Closing, if any payment is received by Seller or any Owner on or with respect to any Acquired Asset, or any payment is received by Seller or any Owner attributable to the Acquired Assets or any Buyer Affiliated Company from and after the Closing Date, Seller or such Owner shall immediately account for and pay over such payment to Buyer. The Parties agree to reasonably cooperate and work in good faith with respect to identification and remission of any such funds.

**<u>Conduct of Business</u>**. During the period from the Signing Date to the Closing, except as otherwise expressly contemplated by this Agreement or consented to in writing by Buyer, Seller shall, and the Owners shall cause Seller to: (a) conduct its operations only in the ordinary course of business; and (b) use all reasonable efforts to maintain and preserve its business organization and its material rights, retain the services of its members, directors, officers and employees, maintain relationships with its customers and suppliers and other relationships, and maintain all of its operating assets in their current condition (normal wear and tear excepted), in each case for the purpose of maintaining, and avoiding any material impairment of, the goodwill and ongoing business of Seller. Without limiting the generality of the foregoing, during the period from the Signing Date to the Closing, except as consented to in writing by Buyer, each Owner shall not, and Seller shall not (and the Owners shall cause Seller not to): (x) take any action that would cause any of the changes, events or conditions described in <u>Section 3.10</u> to occur; or (y) (i) issue, sell or dispose of any shares of capital stock of Seller or grant options, warrants, calls or other rights to purchase or otherwise acquire any equity securities or other securities of Seller; (ii) effect any recapitalization, reclassification or like change in the capitalization of Seller; (iii) except as otherwise provided under <u>Section 5.4</u>, establish, amend, modify, or terminate any Employee Plan; or (iv) amend any Organizational Documents. Prior to the Closing, Seller and the Owners shall promptly notify Buyer of any event, circumstance or other instance that results or may reasonably be expected to result in a Material Adverse Effect.

5.8 **<u>No Solicitation of Other Bids</u>**.

(a) Seller and the Owners shall not, and shall not authorize or permit any of their Affiliates or any of their or its respective Representatives to, directly or indirectly, (i) encourage, solicit, initiate, facilitate, or continue inquiries regarding an Acquisition Proposal (as defined below); (ii) enter into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal; or (iii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal. Seller and the Owners shall immediately cease and cause to be terminated, and shall cause its Affiliates and all of its and their respective Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect to, or that could lead to, an Acquisition Proposal. For the purpose hereof, "<u>Acquisition Proposal</u>" shall mean any inquiry, proposal, or offer from any Person (other than Buyer or any of its Affiliates) concerning: (i) a merger, consolidation, liquidation, recapitalization, share exchange, or other business combination transaction involving Seller; (ii) the issuance or acquisition of equity securities of Seller; or (iii) the sale, lease, exchange, or other disposition of any significant portion of Seller's properties or assets.

(b) In addition to the other obligations under this <u>Section 5.8</u>, Seller and the Owners shall promptly (and in any event within three (3) Business Days after receipt thereof by Seller or any Owner or their Representatives) advise Buyer orally and in writing of any Acquisition Proposal, any request for information with respect to any Acquisition Proposal, or any inquiry with respect to or which could reasonably be expected to result in an Acquisition Proposal, the material terms and conditions of such request, Acquisition Proposal or inquiry, and the identity of the Person making the same.

(c) Seller and the Owners agree that the rights and remedies for noncompliance with this <u>Section 5.8</u> shall include having such provision specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to Buyer and that money damages would not provide an adequate remedy to Buyer.

------

**<u>Financing Matters</u>**.

(a) Buyer shall use its good faith efforts to obtain the Financing. In order to assist with Buyer obtaining the Financing, Seller and the Owners, at the sole cost and expense of Buyer, provide such reasonable assistance and cooperation as Buyer and its Affiliates and Representatives may reasonably request, including, but not limited to, assistance in providing information necessary or advisable for the preparation of any offering memorandum or similar document, assisting with underwriters, initial purchasers or placement agents, making senior management of Seller reasonably available for customary "roadshow" presentations and cooperation with underwriters, initial purchasers, placement agents or prospective lenders in performing their due diligence, entering into customary agreements with underwriters, initial purchasers or placement agents, and entering into other requested certificates or documents, including a customary certificate of the chief financial officer of Seller with respect to solvency matters, comfort letters of accountants, legal opinions and title documentation. In no event shall Seller or any Owner be required to become obligated, as borrower, guarantor or otherwise, with respect to any Buyer indebtedness.

(b) Buyer shall promptly (i) furnish to Seller Representative copies of all written commitment letters, letters of intent, or other agreements in principle with respect to all debt or equity financing reasonably expected to be obtained in connection with the Financing, and (ii) advise Seller Representative orally and, if requested by Seller Representative, in writing of (A) any significant change in the status of any such financing arrangements, or (B) to the knowledge of Buyer, any other event which could reasonably be expected to materially delay or prevent the consummation of the Financing. Buyer shall promptly provide Seller Representative with copies of any written changes or termination of the commitments described in clause (i) and any written commitments for alternate financing.

**<u>Access to Information; Environmental Inspections</u>**. During the period from the Signing Date to the Closing, Seller shall, and the Owners shall cause Seller to: (a) afford Buyer and its Representatives commercially reasonable access to and the right to inspect all of the real property, properties, assets, premises, books and records, Contracts and other documents and data related to Seller; (b) furnish Buyer and its Representatives with such financial, operating and other data and information related to Seller as Buyer or any of its Representatives may reasonably request; and (c) instruct the Representatives of Seller and the Owners to reasonably cooperate with Buyer and its Representatives in its investigation of Seller. Any investigation pursuant to this <u>Section 5.10</u> shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of Seller. No investigation by Buyer or other information received by Buyer shall operate as a waiver or otherwise affect any representation, warranty, or agreement given or made by Seller or any Owner in this Agreement or otherwise. Without limiting the foregoing, between the Signing Date and the Closing, Buyer, at its cost and expense, may have one or more independent consultants perform reasonable environmental inspections, reviews and audits of Seller's facilities and the machinery and equipment located at the facilities, including, but not limited to, tests of air, soil (including surface and subsurface materials), surface water and ground water, or any equipment located at the facilities. Seller and each Owner shall cooperate with Buyer in such testing activities, including, but not limited to, making Seller's employees available to Buyer and its consultants for reasonable times upon reasonable prior notice.

------

**<u>Maintain Existence; Change of Name</u>**. Until the date that is one year after the date on which the last payment obligation under <u>Article 2</u> has been paid, Seller shall maintain, and the Owners shall cause Seller to maintain, its existence as a corporation in good standing under the Laws of the State of Texas. Within five (5) Business Days after the Closing, Seller shall (a) change its company name to one acceptable to Buyer and which is not the same as or similar to its present company name or any other trademark or trade style or name now used by Seller, and (b) have delivered to Buyer, in form suitable for filing, such certificates, consents and other documents as are necessary or desirable to effect the transfer of the registration of any name conveyed to Buyer pursuant to this Agreement in the State of Texas and in each other state where Seller is qualified to do business or has registered any such name under a "trade name" or "fictitious name" statute or similar Law or has taken any other action in order to obtain or protect rights in such name. Seller and each Owner shall grant any consents and take any other and future action, all at its own expense, requested by Buyer, to enable Buyer to use, reserve or register any such name for the exclusive use of Buyer. From and after the Closing Date, Seller shall discontinue all use of the name "Amorphous Materials" and any similar names.

**<u>Interim Financial Statements</u>**. No later than fifteen (15) days after the last day of each calendar month ending prior to the Closing, beginning with December, 2025, Seller shall, and the Owners shall cause Seller to, deliver to Buyer an unaudited balance sheet of Seller as of the last day of such calendar month and the related unaudited statements of income, cash flows and changes in equityholders' equity (deficiency) for such calendar month (the "<u>Pre-Closing Financial Statements</u>"), prepared on a basis consistent with the Interim Financial Statements.

**ARTICLE VI**<br> **TAX MATTERS**

The following provisions shall govern the allocation of responsibility as between Buyer, on the one hand, and Seller and the Owners, on the other, for certain Tax matters following the Closing Date:

**<u>Filing of Tax Returns</u>**.

(a) Seller Representative shall prepare and file, or cause to be prepared and filed, at its sole cost, all Tax Returns of Seller for all taxable periods ending on or before the Closing Date (excluding, for the avoidance of doubt, any Tax Return of Seller for any Straddle Period which shall be prepared in accordance with <u>Section 6.1(b)</u>), (each such Tax Return, a "<u>Pre-Closing Income Tax Return</u>"). The Pre-Closing Income Tax Returns shall include any Tax Returns (including any Pass-Through Tax Returns) which are required by (or otherwise the obligation under) applicable Law to be filed by or with respect to any Owner. All such Pre-Closing Income Tax Returns shall be prepared in accordance with past practice (but only to the extent such past practice is supportable at least at a "more likely than not" level of comfort), except as otherwise required by Law. Not later than thirty (30) days prior to the due date for filing thereof, Seller Representative shall provide Buyer with drafts of all such Pre-Closing Income Tax Returns (and all supporting workpapers). Buyer shall have the right to review and approve any such Pre-Closing Income Tax Returns during the twenty-five (25) day period following the receipt of such Pre-Closing Income Tax Returns (and all supporting workpapers), which approval shall not be unreasonably withheld, conditioned or delayed.

(b) Buyer shall prepare and file, or cause to be prepared and filed, all Tax Returns of Seller that have a due date (including extensions) after Closing and include Pre-Closing Tax Periods (including, for the avoidance of doubt, any Straddle Periods) ("<u>Buyer Pre-Closing Tax Returns</u>"). All such Buyer Pre-Closing Tax Returns shall be prepared in accordance with past practice (but only to the extent such past practice is supportable at least at a "more likely than not" level of comfort), except as otherwise required by Law. No later than thirty (30) days prior to the due date for filing thereof (or such shorter time as is commercially reasonable in the case of a Tax Return other than an income Tax Return), Buyer shall provide Seller Representative with drafts of all such Buyer Pre-Closing Tax Returns that include items outside the ordinary course of business (other than the Sale). Seller Representative shall have the right to review and comment on any such Buyer Pre-Closing Tax Returns during the twenty-five (25) day period (or such shorter time as is commercially reasonable in the case of a Tax Return other than an income Tax Return) following the receipt of such Buyer Pre-Closing Tax Returns. Buyer shall consider in good faith all reasonable comments provided by Seller Representative to Buyer in writing during such review period. At least two (2) Business Days prior to the due date of the payment of Taxes shown as due and payable by Seller on any Buyer Pre-Closing Tax Returns, Seller and the Owners shall pay any such Taxes to Buyer to the extent such Taxes were not included in the calculation of Closing Date Indebtedness or Closing Date Net Working Capital.

------

**<u>Straddle Periods</u>**. For purposes of this Agreement, whenever it is necessary to determine the liability for Taxes of Seller for any Straddle Period, the determination of the Taxes for the portion of the Straddle Period ending on and including, and the portion of the Straddle Period beginning after, the Closing Date shall be determined by assuming that the Straddle Period consisted of two (2) taxable years or periods, one which ended at the close of business on the Closing Date and the other which began at the beginning of the day following the Closing Date, and items of income, gain, deduction, loss, or credit for the Straddle Period shall be allocated between such two (2) taxable years or periods on a "closing of the books basis" by assuming that the books of Seller, as applicable, were closed at the close of the Closing Date; provided, however, that (a) exemptions, allowances, or deductions that are calculated on an annual basis, such as the deduction for depreciation, and (b) periodic taxes (other than income, franchise/capital, sales, use, or withholding Taxes) such as real and personal property taxes, shall be apportioned ratably between such periods based on the number of days for the portion of the Straddle Period ending on and including the Closing Date, on the one hand, and the number of days for the portion of the Straddle Period beginning after the Closing Date, on the other hand.

**<u>Cooperation on Tax Matters</u>**. The Parties shall cooperate, and shall cause their respective representatives to cooperate, including by agreeing to furnish or cause to be furnished to the other, upon request, as promptly as practicable, such information and assistance relating to Taxes of Seller for Pre-Closing Tax Periods, including, without limitation, access to employees and books and records, as is reasonably necessary in preparing and filing all Tax Returns (including amended Tax Returns and claims for refund), in making any election relating to Taxes, in handling audits, examinations, investigations and administrative, court or other Proceedings relating to Taxes, in resolving all disputes, audits and refund claims with respect to such Tax Returns and Taxes, and in all other appropriate Tax matters. Any information obtained by any party hereto or its Affiliates or representatives from another Party or its Affiliates or representatives in connection with any Tax matters to which this Agreement relates shall be kept confidential, except: (i) as may be otherwise necessary (A) in connection with the filing of Tax Returns or claims for refund or in conducting an audit or other Proceeding relating to Taxes or as may be otherwise required by applicable Law, (B) to enforce rights under this Agreement or (C) to pursue any claim for refund or contest any proposed Tax assessment; or (ii) for any external disclosure in audited financial statements or regulatory filings which a party hereto reasonably believes is required by applicable Law or stock exchange or similar applicable rules. Any Tax refunds or overpayments of Tax attributable to a Pre-Closing Tax Period shall be for the account of Seller and the Owners, and to the extent any such refund or overpayment is received by Buyer or any of its Affiliates after the Closing Date, Buyer shall promptly remit such amount to Seller (net of any reasonable out-of-pocket costs incurred in obtaining such refund), except to the extent such refund or overpayment has been taken into account in the calculation of Closing Date Indebtedness or Closing Date Net Working Capital.

**<u>Transfer Taxes</u>**. Any transfer, documentary, sales, use, stamp, registration, and other similar Taxes and fees (including any penalties and interest) incurred in connection with this Agreement or the Sale shall be borne and paid fifty percent (50%) by Buyer and fifty percent (50%) by Seller and the Owners when due. Buyer and Seller agree to cooperate in the execution and delivery of all instruments and certificates necessary to enable Buyer to comply with any pre-Closing filing requirements. The Parties hereby waive compliance with the provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Acquired Assets to Buyer. Any liabilities arising out of the failure of Seller to comply with the requirements and provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction which would not otherwise constitute Assumed Liabilities shall be treated as Retained Liabilities.

------

**ARTICLE VII**<br> **CONDITIONS TO CLOSING**

**<u>Mutual Conditions</u>**. The obligations of each of the Parties to consummate the Sale shall be subject to fulfillment of all of the following conditions:

(a) No Governmental Authority shall have initiated any Proceedings or otherwise taken any action to enjoin, condition, object, or otherwise restrain consummation of the Sale;

(b) No temporary restraining order, preliminary or permanent injunction or other order or decree which prevents the consummation of the Sale shall have been issued and remain in effect, and no statute, rule or regulation shall have been enacted by any Governmental Authority that would prevent the Sale.

(c) Any Governmental Approval of this Agreement or the Sale required under any applicable Laws, Orders, Regulations, or any guidelines promulgated thereunder, shall have been received.

**<u>Conditions to Obligations of Seller and the Owners</u>**. The obligations of Seller and the Owners to consummate the Sale shall be subject to the fulfillment of all of the following conditions unless waived by Seller Representative in writing:

(a) Each representation and warranty of LPTH and Buyer set forth in <u>Article IV</u> of this Agreement shall be true and correct in all material respects as of the Signing Date and as of the Closing Date, except that (i) representations and warranties made as of a specified date need be true and correct only as of the specified date, and (ii) representations and warranties qualified by concepts of materiality shall be true and correct in all respects.

(b) LPTH and Buyer shall have performed and observed in all material respects all obligations and conditions to be performed or observed by it under this Agreement at or prior to the Closing, including, without limitation, the delivery of the items set forth in <u>Section 2.9</u>.

(c) Each of LPTH and Buyer shall have furnished Seller Representative with a certificate dated as of the Closing Date signed on its behalf by an authorized officer to the effect that the conditions set forth in <u>Sections 7.2(a)</u> and <u>(b)</u> have been satisfied.

(d) LPTH and Buyer shall have taken the actions required to be taken by LPTH and Buyer pursuant to <u>Section 2.9</u>.

**<u>Conditions to Obligations of LPTH and Buyer</u>**. The obligations of LPTH and Buyer to consummate the Sale shall be subject to the fulfillment of all of the following conditions unless waived by Buyer in writing:

(a) Each representation and warranty of Seller and the Owners set forth in <u>Article III</u> of this Agreement shall be true and correct in all material respects as of the Signing Date and as of the Closing Date, except that (i) representations and warranties made as of a specified date need be true and correct only as of the specified date, and (ii) representations and warranties qualified by concepts of materiality shall be true and correct in all respects.

------

(b) Seller and each Owner shall have performed and observed in all material respects all obligations and conditions to be performed or observed by them under this Agreement at or prior to the Closing, including, without limitation, the delivery of the items set forth in <u>Section 2.8</u>.

(c) Since the Signing Date, there shall not have been any change in the assets, liabilities, business, prospects, results of operations or financial condition of Seller or any Owner that has or could be reasonably expected to have a Material Adverse Effect.

(d) Seller shall have furnished Buyer with a certificate dated as of the Closing Date, executed by Seller, to the effect that the conditions set forth in <u>Sections 7.3(a)</u>, <u>(b)</u> and <u>(c)</u> have been satisfied.

(e) Seller and the Owners shall have taken the actions required to be taken by Seller and the Owners pursuant to <u>Section 2.8</u>.

(f) Seller shall have obtained and delivered to Buyer all consents, approvals or waivers Buyer deems necessary or desirable in order to consummate the Sale, including, without limitation, consents under all Contracts set forth on <u>Schedule 7.3(f)</u>.

(g) Seller shall have, effective as of immediately before the Closing, (i) terminated all employment contracts between Seller and each of its employees, (ii) terminated all employees continuing who are in the employ of Seller on an at-will basis, and (iii) delivered to Buyer evidence reasonably satisfactory to Buyer of such terminations.

(h) Prior to the Closing, LPTH and/or Buyer shall have obtained on commercially reasonable terms and conditions acceptable to LPTH and/or Buyer, all of the financing (equity and/or debt) Buyer needs in order to purchase the Acquired Assets and to otherwise consummate the Sale (the "<u>Financing</u>").

(i) Seller shall have taken the actions required to be taken by Seller pursuant to the compliance requirements set forth in the Environmental Reports.

**<u>Frustration of Closing Conditions</u>**. Neither Seller or any Owner nor LPHT or Buyer may rely on the failure of any condition set forth in <u>Section 7.1</u>, <u>Section 7.2</u>, or <u>Section 7.3</u>, as the case may be (but specifically excluding <u>Section 7.3(h)</u>), to be satisfied if such failure was caused by such Party's (or any of its Affiliates') breach of this Agreement or failure to act in good faith or use its reasonable efforts to consummate the Sale.

**ARTICLE VIII**<br> **SURVIVAL AND INDEMNIFICATION**

**<u>Survival of Representations and Warranties and Covenants</u>**. All representations, warranties, covenants and agreements made by the Parties in this Agreement or any certificate delivered pursuant hereto shall survive the execution, delivery and performance of this Agreement. The representations and warranties contained in <u>Articles III</u> and <u>IV</u> shall survive until the date that is eighteen (18) months after the Closing Date, except that (a) any claims of Fraud shall survive indefinitely, and (b) Seller Fundamental Representations, Buyer Fundamental Representations and the representations and warranties in <u>Section 3.12</u> (Employee Benefit Plans), <u>Section 3.15</u> (Taxes) and <u>Section 3.19</u> (Environmental Matters) and shall survive until their applicable statute of limitations periods (giving effect to any waiver, mitigation or extension thereof) plus sixty (60) days; *provided, however*, that any claim for indemnification asserted in good faith with reasonable specificity (to the extent known at such time) that is brought on or prior to the expiration date of the applicable survival period shall survive until fully and finally resolved in accordance with the terms, conditions and procedures set forth herein. All covenants of the Parties contained herein shall survive for the earlier to occur of the period explicitly specified therein or until fully performed. The Parties intend that the applicable statute of limitations shall be modified as set forth above.

------

**<u>Indemnification</u>**.

(a) Subject to the limitations, procedures and priorities set forth in this <u>Article VIII</u>, from and after the Closing, Seller and the Owners shall, jointly and severally, indemnify and hold harmless LPTH, Buyer, their Affiliates and their respective Representatives (the "<u>Buyer Indemnified Persons</u>") from and against any costs, fees, or expenses (including reasonable fees of attorneys, accountants, and other experts, costs of investigation, costs of enforcing this Agreement and the other Transaction Documents, and any and all expenses incurred in preparing for or defending against any litigation, commenced or threatened, or any claim whatsoever), judgments, fines, claims, damages, assessments, losses, liabilities, offsets, interest, awards, fines, penalties, payments, settlements, deficiencies, interest, disgorgements, suits, actions, and Taxes (collectively, "<u>Losses</u>") incurred by them resulting from, based upon, attributable to, or arising out of, any of the following:

(i) any breach of or inaccuracy (or alleged inaccuracy or breach) in any of the representations and warranties contained in <u>Article III,</u> as though such representations and warranties were made as of the Signing Date and as of the Closing, or in any certificates delivered by Seller or any Owner pursuant hereto;

(ii) any nonfulfillment or breach (or alleged nonfulfillment or breach) by Seller or any Owner of any of their covenants or agreements contained in this Agreement or in any other Transaction Document;

(iii) any Closing Date Indebtedness or Selling Expenses to the extent not included in the determination of the Final Adjustment Amount;

(iv) failure to obtain the consent of a party whose consent is required in connection with the Sale or the other transactions contemplated by this Agreement;

(v) without duplication of any right to recovery herein and only to the extent not taken into account in determining the Final Adjustment Amount, (A) any Taxes (or the non-payment thereof) of or with respect to Seller for any Pre-Closing Tax Period (or any portion thereof), including any costs and expenses of preparing, filing or defending any Tax Return for a taxable period ending on or before the Closing Date, (B) any Taxes of any Person imposed on Seller as a transferee or successor, by Contract (other than any Contract that is entered into in the ordinary course of business and the principal purpose of which is not related to Taxes) or otherwise pursuant to Law, in each case relating to an event or transaction occurring before the Closing Date, (C) all Taxes of any member of an affiliated, consolidated, combined or unitary group of which Seller (or any predecessor of Seller) is or was a member on or prior to the Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6 or any comparable provisions of foreign, state or local applicable Law, (D) any Transfer Taxes that are the responsibility of Seller and the Owners pursuant to <u>Section 6.6</u>, (E) any Taxes of any Owner for any taxable period (or portion thereof), and (F) the employer's share of any payroll, employment or similar Taxes required to be made with respect any compensatory payments made in connection with this Agreement or Sale;

------

(vi) any Retained Liability or Excluded Asset;

(vii) any actual or reasonably suspected pre-Closing Security Breach;

(viii) the allocation of the Purchase Price, and distributions thereof, among Seller and the Owners;

(ix) any Liabilities described on or otherwise related to the matters set forth on <u>Schedule 8.2(a)</u>; or

(x) Fraud by Seller or any Owner.

Buyer shall be deemed to have suffered Losses with respect to an indemnifiable claim if the same shall be suffered by any Buyer Affiliated Company after the Closing.

(b) Subject to the limitations, procedures and priorities set forth in this <u>Article VIII</u>, from and after the Closing, the Buyer Parties shall, jointly and severally, indemnify and hold harmless Seller, the Owners and their respective Representatives (the "<u>Seller Indemnified Persons</u>") from and against any Losses actually incurred by them resulting from, or arising out of (i) the breach of any representation or warranty of LPTH or Buyer contained in this Agreement, as though such representations and warranties were made as of the Signing Date and as of the Closing, or in any certificate delivered by LPTH or Buyer pursuant hereto, (ii) any nonfulfillment or breach (or alleged nonfulfillment or breach) by LPTH or Buyer of any of its covenants or agreements contained in this Agreement or in any other Transaction Document, or (iii) any Assumed Liability.

**<u>Calculation of Losses; Other Indemnification Matters</u>**.

(a) For the purposes of calculating Losses to which the Buyer Indemnified Persons and the Seller Indemnified Persons are entitled under this <u>Article VIII</u>, (a) such Losses shall not include any punitive or exemplary damages, except to the extent payable to a third party, (b) such Losses shall not include Losses related to any matter that was taken into account in the Final Adjustment Amount, and (c) such Losses shall be reduced by the amount of any actual recovery received from a third party insurance company, net of any reasonable costs of recovery or premium increases incurred in connection therewith.

(b) Notwithstanding anything to the contrary, in the event that a claim for indemnification may be brought by a Buyer Indemnified Person pursuant to more than one sub-clause of <u>Section 8.2(a)</u>, such Buyer Indemnified Person may select under which sub-clauses such claim is being made.

(c) For purposes of this <u>Article VII</u>, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or other similar qualification contained in or otherwise applicable to such representation or warranty or the Losses arising therefrom.

(d) The representations, warranties and covenants of Seller and the Owners, and the Buyer Indemnified Persons' right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of the Buyer Indemnified Person (including by any of its Representatives) or by reason of the fact that the Buyer Indemnified Person or any of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate.

------

(e) The Parties acknowledge and agree that the indemnification provisions of this <u>Article XIII</u> are intended to provide the sole and exclusive remedy following the Closing with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or other obligation herein. Notwithstanding the foregoing, nothing in this <u>Article VIII</u> shall limit any Party's right to seek and obtain (i) any equitable relief, including specific performance, temporary restraining order or temporary or permanent injunction, or (ii) any remedy on account of fraud or criminal conduct in connection with the execution and delivery of this Agreement or the performance of a Party's obligations hereunder.

**<u>Additional Limitations on Indemnification Obligations</u>**. Seller and the Owners shall not have any liability to any Buyer Indemnified Person (a) with respect to claims under <u>Section 8.2(a)(i)</u> (other than those based on a breach of any Seller Fundamental Representation) unless and until the total of all Losses with respect to such claims exceeds $100,000 (the "<u>Threshold</u>"), in which case Seller and the Owners shall be liable to the Buyer Indemnified Persons with respect to the amount that exceeds such Threshold in connection with such Losses (subject to clause (b) below); and (b) with respect to claims under <u>Section 8.2(a)(i)</u> for any item or related set of items where the Losses relating thereto are less than $5,000 (the "<u>De Minimis Amount</u>") (it being understood that such items will not be aggregated for purposes of the immediately preceding clause (a)). Notwithstanding anything herein to the contrary, the aggregate liability of Seller and the Owners (w) with respect to indemnification obligations for claims under <u>Section 8.2(a)(i)</u> (other than those based on a breach of any Seller Fundamental Representation and any claims of Fraud), shall not exceed fifteen percent (15%) of the Base Closing Date Purchase Price, (x) with respect to all indemnification obligations hereunder other than claims under <u>Section 8.2(a)(ix)</u> and the Seller Fundamental Representations, shall be limited to the Base Closing Date Purchase Price, (y) with respect to all indemnification obligations under <u>Section 8.2(a)(ix)</u> and the Seller Fundamental Representations, shall not exceed the aggregate Purchase Price actually paid to Seller and the Owners pursuant to this Agreement, and (z) with respect to all claims of Fraud, shall not be limited in any respect.

**<u>Indemnification Procedures</u>**. The following procedures shall govern claims for indemnification under this <u>Article VIII</u>:

(a) All claims for indemnification under this <u>Article VIII</u> (each, an "<u>Indemnification Claim</u>") shall be asserted and resolved in accordance with this <u>Section 8.5</u>.

(b) If a Buyer Indemnified Person or Seller Indemnified Person (an "<u>Indemnified Party</u>") determines to seek indemnification under this <u>Article VIII</u> with respect to Indemnifiable Claims resulting from the assertion of liability by third parties (a "<u>Third Party Claim</u>"), it shall give notice to the indemnifying Party hereunder (the "<u>Indemnifying Party</u>") within forty-five (45) days of such Indemnified Party becoming aware of any such Indemnifiable Claim, which notice shall set forth such material information with respect to such Indemnifiable Claim as is then reasonably available to such Indemnified Party. If any such liability is asserted against an Indemnified Party and such Indemnified Party notifies the Indemnifying Party of such liability, the Indemnifying Party shall be entitled, if it so elects by written notice delivered to such Indemnified Party within fifteen (15) Business Days after receiving such Indemnified Party's notice (the "<u>Response Period</u>"), to assume the defense of such asserted liability with counsel satisfactory to such Indemnified Party; provided, however, that if the Indemnifying Party assumes such defense, the Indemnifying Party shall be deemed to have accepted such claim as a valid Indemnifiable Claim. Notwithstanding the foregoing: (i) such Indemnified Party shall have the right to employ its own counsel in any such case, but the fees and expenses of such counsel shall be payable by such Indemnified Party; (ii) such Indemnified Party shall not have any obligation to give any notice of any assertion of liability by a third party unless such assertion is in writing; and (iii) the rights of such Indemnified Party to be indemnified in respect of indemnifiable claims resulting from the assertion of liability by third parties shall not be adversely affected by its failure to give notice pursuant to the foregoing provisions unless, and, if so, only to the extent that, the Indemnifying Party is materially prejudiced by such failure. With respect to any assertion of liability by a third party that results in an Indemnifiable Claim, the Parties shall make available to each other all relevant information in their possession that is material to any such assertion.

------

(c) In the event that the Indemnifying Party fails to assume the defense of an Indemnified Party against any such Indemnifiable Claim within the Response Period, the Indemnified Party shall have the right to defend, compromise or settle such Indemnifiable Claim on behalf, for the account, and at the risk of the Indemnifying Party.

(d) Notwithstanding anything in this <u>Section 8.5</u> to the contrary, the Indemnifying Party will not be entitled to assume control of the defense of an Indemnifiable Claim, and will pay the reasonable fees and expenses of legal counsel retained by the Indemnified Party, if: (i) the Indemnified Party reasonably believes that an adverse determination of such proceeding could be detrimental to or injure the Indemnified Party's reputation or future business prospects; (ii) the Indemnified Party reasonably believes that there exists or could arise a conflict of interest that, under applicable principles of legal ethics, could prohibit a single legal counsel from representing both the Indemnified Party and the Indemnifying Party in such proceeding or (iii) a court of competent jurisdiction rules that the Indemnifying Party has failed or is failing to prosecute or defend diligently such claim.

(e) The Indemnifying Party shall not, without such Indemnified Party's prior written consent, settle or compromise any Indemnifiable Claim or consent to entry of any judgment in respect of any Indemnifiable Claim unless such settlement, compromise or consent involves only the payment of money and includes, as an unconditional term, the giving by the claimant or the plaintiff to such Indemnified Party (and its subsidiaries and Affiliates) an unconditional release from all liability in respect of such Indemnifiable Claim.

(f) In the event any Indemnified Party should have an Indemnifiable Claim against any Indemnifying Party that does not involve a Third Party Claim, the Indemnified Party shall deliver written notice of such claim with reasonable promptness to the Indemnifying Party specifying in reasonable detail the nature of the Indemnifiable Claim and the basis thereof. The failure by any Indemnified Party so to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability that it may have to such Indemnified Party with respect to any claim made pursuant to this <u>Section 8.5</u>, it being understood that written notices for claims in respect of a breach of a representation or warranty must be delivered prior to the expiration of the survival period for such representation or warranty under <u>Section 8.1</u>; provided that, the party entitled to receive such notice was not, as a result of such failure to give prompt written notice, (a) deprived of its right to recover any payment under its applicable insurance coverage, (b) otherwise damaged or prejudiced or (c) deprived of its rights and remedies under this Agreement. If the Indemnifying Party does not notify the Indemnified Party within thirty (30) days following its receipt of such written notice that the Indemnifying Party disputes its liability to the Indemnified Party under this <u>Article VIII</u>, or the amount thereof, the claim specified by the Indemnified Party in such written notice shall be conclusively deemed a liability of the Indemnifying Party under this <u>Article VIII</u>, and the Indemnifying Party shall pay the amount of such Losses to the Indemnified Party on demand or, in the case of any written notice in which the amount of the claim (or any portion of the claim) is estimated, on such later date when the amount of such claim (or such portion of such claim) is determined.

**<u>Adjustment to Purchase Price</u>**. The Parties agree that any indemnification payments made pursuant to this Agreement shall be treated for U.S. federal income tax purposes as an adjustment to the purchase price of the Acquired Assets, unless otherwise required by applicable Law.

**<u>Priority of Recourse</u>**. Notwithstanding anything else contained herein to the contrary but subject to the Threshold and the De Minimis Amount, the Buyer Indemnified Persons shall seek to recover for any and all Losses recoverable as permitted under this Agreement in the following priority: (a) first, from the Escrow Account; and (b) second, to the extent the Escrow Account has been reduced to zero, directly against Seller and the Owners or against amounts that Buyer may owe to Seller or any Owner pursuant to this Agreement or otherwise.

------

**<u>Release of Escrow Account</u>**.

(a) In the event the funds in the Escrow Account have not been fully disbursed in accordance with this Agreement by the first anniversary of the Closing Date (the "<u>First Disbursement Date</u>"), Buyer and Seller Representative shall instruct the Escrow Agent to disburse to the account(s) designated in writing by Seller Representative at least two (2) Business Days prior to the First Disbursement Date an amount equal to (i) $500,000.00, less (ii) the aggregate amount of funds in the Escrow Account that have been disbursed in accordance with this Agreement, less (iii) the aggregate amount of Indemnifiable Claims that have not been resolved as of the First Disbursement Date, which aggregate amount shall be allocated among the Owners in the proportions set forth on the Owner Allocation Exhibit.

(b) In the event the funds in the Escrow Account have not been fully disbursed in accordance with this Agreement by eighteen months after the Closing Date (the "<u>Second Disbursement Date</u>"), Buyer and Seller Representative shall instruct the Escrow Agent to disburse to the account(s) designated in writing by Seller Representative at least two (2) Business Days prior to the Second Disbursement Date an amount equal to (i) the funds remaining in the Escrow Account on the Second Disbursement Date, less (ii) the aggregate amount of Indemnifiable Claims that have not been resolved as of the Final Disbursement Date, which aggregate amount shall be allocated among the Owners in the proportions set forth on the Owner Allocation Exhibit. Once all Indemnifiable Claims have been finally resolved pursuant to this Agreement (the "<u>Final Disbursement Date</u>"), within ten (10) days thereafter, Buyer and Seller Representative shall instruct the Escrow Agent to disburse to the account(s) designated in writing by Seller Representative at least two (2) Business Days prior to the Final Disbursement Date an amount equal to the funds remaining in the Escrow Account on the Final Disbursement Date.

**ARTICLE IX**<br> **TERMINATION**

**<u>Termination</u>**. This Agreement may be terminated at any time prior to the Closing:

(a) by mutual consent of Buyer and Seller Representative;

(b) by either Buyer or Seller Representative, if any permanent injunction or other Order of any Governmental Authority preventing the consummation of the Sale shall have become final and non-appealable;

(c) by Buyer if Seller or any Owner remains in breach of any representation or warranty contained herein for ten (10) days after the date on which Buyer has notified Seller Representative in writing of such breach;

(d) by Seller Representative if Buyer remains in breach of any representation or warranty contained herein for ten (10) days after the date on which the Seller Representative has notified Buyer in writing of such breach;

(e) by Buyer if any obligation, term or condition to be performed, kept or observed by Seller or any Owner has not been performed, kept or observed in any material respect at or prior to the time specified in this Agreement and such failure continues for ten (10) days after the date on which Buyer has notified Seller Representative in writing of such failure;

------

(f) by Seller Representative if any obligation, term or condition to be performed, kept or observed by Buyer has not been performed, kept or observed in any material respect at or prior to the time specified in this Agreement and such failure continues for ten (10) days after the date on which Seller Representative has notified Buyer in writing of such failure;

(g) by either Buyer or Seller Representative, if the Closing shall not have occurred on or before August 31, 2026 (the "<u>Outside Date</u>"), provided that the right to terminate this Agreement under this <u>Section 9.1(g)</u> shall not be available to any Party whose failure (or whose Affiliate's failure) to perform any material covenant or obligation under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such date;

(h) by either Buyer or Seller Representative, if the Closing shall not have occurred on or before the Outside Date due to the failure of the condition set forth in <u>Section 7.3(h)</u> to have been satisfied; or

(i) by Buyer, if, after the Signing Date, there shall have been any change in the assets, liabilities, business, prospects, results of operations or financial condition of Seller or any Owner that has or could be reasonably expected to have a Material Adverse Effect.

**<u>Effect of Termination</u>**. In the event of the termination of this Agreement pursuant to <u>Section 9.1</u>, this Agreement, except for the provisions of this <u>Article IX</u>, <u>Section 10.11</u> (Governing Law; Venue), <u>Section</u><u> </u><u>10.12</u> (Waiver of Jury Trial) and <u>Section 10.16</u> (Public Announcements), shall become void and have no effect, without any liability on the part of any Party or its Affiliates or their respective directors, officers or stockholders. Notwithstanding the foregoing, nothing in this <u>Section 9.2</u> shall relieve any Party of any liability for a breach of any provision of this Agreement prior to the date of such termination.

**<u>Notice of Termination</u>**. In the event of termination by Seller Representative or by Buyer pursuant to <u>Section 9.1</u>, written notice of such termination shall be given by the terminating Party to the other Party, and such written notice shall specify the specific subsection(s) of <u>Section 9.1</u> pursuant to which such terminating Party is terminating this Agreement.

**ARTICLE X**<br> **MISCELLANEOUS**

**<u>Amendment</u>**. This Agreement may not be amended other than in an instrument in writing signed by all of the Parties; *provided*, that after the Closing, this Agreement may be amended in writing dated as of a subsequent date hereto by LPTH and Seller Representative.

**<u>Waiver</u>**. A Party may extend the time for the performance of any of the obligations or other acts required to be performed by another Party, waive any inaccuracies in the representations and warranties of another Party contained herein or in any document delivered pursuant hereto and waive compliance with any of such Party's agreements or conditions contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the Party or Parties to be bound thereby.

------

**<u>Notices</u>**. All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by nationally recognized overnight courier for next Business Day delivery or by registered or certified mail (postage prepaid, return receipt requested) or by email (followed by nationally recognized overnight courier) as follows:

(a) If to LPTH or Buyer:

LightPath Technologies, Inc.

2603 Challenger Tech Court, Suite 100

Orlando, Florida 32826

Phone: [\*]

Attn: Chief Financial Officer

Email: [\*]

With a copy (which shall not constitute notice) to:

Baker & Hostetler LLP

200 South Orange Avenue, Suite 2300

Orlando, Florida 32801

Phone: [\*]

Attn: [\*]

Email: [\*]

(b) If to Seller, any Owner or Seller Representative:

Mark F. Hilton

[\*]

Phone: [\*]

Email: [\*]

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

Gibson Herod Law

15400 Knoll Trail, Suite 300

Dallas, Texas 72548

Attn: [\*]

Phone: [\*]

Email: [\*]

or to such other address as the Party to whom notice is to be given may have furnished to the other Parties in writing in accordance with this <u>Section 10.3</u>. All such notices or communications shall be deemed to be received (i) in the case of personal delivery, upon delivery, (ii) in the case of nationally recognized overnight courier, on the Business Day immediately following the date of deposit with such courier, (iii) in the case of registered or certified mail, on the third (3rd) Business Day following the date of deposit in the mail and (iv) in the case of email, upon delivery if delivered prior to 5 p.m. Orlando, Florida time on a Business Day (or otherwise on the next Business Day), confirmation of receipt received (it being understood that any notice delivered by email must also be delivered in the manner described in <u>clause (ii)</u>).

**<u>Specific Performance</u>**. Seller and the Owners acknowledge that Seller's business is unique and recognize and affirm that in the event of a breach of this Agreement by Seller or any Owner, money damages may be inadequate and Buyer may have no adequate remedy at Law. Accordingly, Seller and the Owners agree that Buyer shall have the right, in addition to any other rights and remedies existing in their favor, to enforce its rights and the obligations of Seller and the Owners hereunder not only by an action or actions for damages, but also by an action or actions for specific performance, injunctive or other equitable relief.

------

**<u>Interpretation</u>**. The term "this Agreement" means this Asset Purchase Agreement together with all Schedules (including the Seller Disclosure Schedule) and Exhibits hereto, as the same may from time to time be amended, modified, supplemented, or restated in accordance with the terms hereof. When a reference is made in this Agreement to Sections, subsections, or exhibits, such reference shall be to a Section, subsection, or exhibit to this Agreement unless otherwise indicated. The words "include," "includes," "including," and similar references, denote a partial definition, by way of illustration and not by way of limitation, and shall be deemed in each case to be followed by the words "without limitation" or "but not limited to." The word "herein" and similar references mean, except where a specific Section or Article reference is expressly indicated, the entire Agreement rather than any specific Section or Article. Except as otherwise specifically provided herein, the word "material," when used in reference to any Party's representations, warranties, covenants or agreements, shall mean material in relation to such Party. The table of contents and the headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any document or item shall be deemed "delivered," "provided," or "made available" (or words of similar import) within the meaning of this Agreement if a true and correct copy of such document or item (together, if applicable, with all amendments, supplements, or other modifications thereto) has been (i) included in the Data Room, (ii) actually (including electronically) delivered or provided to a Party or (iii) made available upon request, including at Seller's offices, in each case, at least five (5) Business Days prior to the Signing Date. All calculations of a number of dollars shall be rounded to the nearest whole number of cents, as applicable, with 0.5 rounded up to the next whole cent, as applicable (aggregating all payments to be made to any Person prior to such rounding). The phrase "<u>knowledge of Seller</u>" means the actual or constructive knowledge of any Owner, after reasonable inquiry.

**<u>Severability</u>**. If any term or provision of this Agreement is invalid, illegal, or incapable of being enforced by any rule of Law or public policy, all other terms and provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance of the Sale is not affected in any manner adverse to the Parties. Upon such determination that any term or provision is invalid, illegal, or incapable of being enforced, the Parties shall negotiate in good faith to amend or otherwise modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner such that the transactions contemplated by this Agreement are fulfilled to the extent possible.

**<u>Entire Agreement</u>**. This Agreement, the other Transaction Documents (including all exhibits and schedules hereto and thereto), and other documents and instruments delivered in connection herewith or therewith constitute the entire agreement and supersede all prior representations, agreements, understandings, and undertakings, whether written or oral, among the Parties, or any of them, with respect to the subject matter hereof and thereof, and no Party is relying on any other prior oral or written representations, agreements, understandings, or undertakings with respect to the subject matter hereof and thereof.

**<u>Assignment</u>**. This Agreement and the rights and obligations hereunder may not be assigned without the prior written consent of each of the Parties, or after Closing without the prior written consent of Buyer and Seller Representative. Notwithstanding the foregoing, Buyer shall have the right to assign any of its rights, interests or obligations under this Agreement, in whole or in part, to any Buyer Affiliated Company. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

**<u>No Third Party Beneficiaries</u>**. Except as set forth in <u>Article VIII</u>, nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the Parties any right, benefit or remedy under or by reason of this Agreement.

------

**<u>Failure or Indulgence Not Waiver; Remedies Cumulative</u>**. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement herein, nor shall any single or partial exercise of any such right preclude any other (or further) exercise thereof or of any other right. Any and all remedies herein expressly conferred upon a Party shall be deemed cumulative with and not exclusive of any other remedy expressly conferred hereby, and the exercise by a Party of any one remedy shall not preclude the exercise of any other remedy.

**<u>Governing Law; Venue</u>**. This Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware, without regard to principles of conflicts of law. The Parties hereby irrevocably submit to the jurisdiction of the courts in the State of Florida (state or federal), with venue in Orange County, Florida, over any dispute arising out of this Agreement and agree that all claims in respect of such dispute or proceeding shall be heard and determined in any such court. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection which they may have to the venue of any such dispute brought in any such court or any defense of inconvenient forum for the maintenance of such dispute. The Parties consent to process being served by them in any suit, action or proceeding by delivering it in the manner specified by <u>Section 10.3</u>. All rights and remedies of each Party under this Agreement shall be cumulative and in addition to all other rights and remedies which may be available to the party from time to time, whether under this Agreement or otherwise.

**<u>Waiver of Jury Trial</u>**. EACH OF THE PARTIES HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY PROCEEDING RELATED TO OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

**<u>Conflict Between Transaction Documents</u>**. To the extent any terms and provisions of this Agreement are in any way inconsistent with or in conflict with any term, condition, or provision of any other agreement, document, or instrument contemplated hereby, this Agreement shall govern and control.

**<u>Time For Performance</u>**. If the date specified for giving any notice or taking any action is not a Business Day (or if the period during which any notice is required to be given or any action taken expires on a date which is not a Business Day), then the date for giving such notice or taking such action (and the expiration date of such period during which notice is required to be given or action taken) shall be the next date which is a Business Day.

**<u>Counterparts</u>**. This Agreement may be executed in one or more counterparts (including by facsimile transmission or electronic transmission in portable document format (.pdf)), which when taken together shall constitute one and the same agreement.

**<u>Public Announcements</u>**. Neither Seller nor any Owner shall, without the prior written consent of Buyer, make any public announcement or statement with respect to the transactions contemplated in this Agreement. Seller and each Owner shall keep in strict confidence and shall not, without the prior written consent of Buyer, directly or indirectly disclose, furnish, disseminate, publish or make available this Agreement or the terms of the transactions contemplated hereby (including the Purchase Price).

------

**<u>Seller Representative</u>**.

(a) By the execution and delivery of this Agreement, Seller and each Owner hereby irrevocably constitutes and appoints Mark F. Hilton as its representative ("<u>Seller Representative</u>"), with full power of substitution to act in the name, place, stead and on behalf of Seller and such Owner with respect to the terms and provisions of this Agreement and the Transaction Documents as the same may be from time to time amended, and to do or refrain from doing all such further acts and things, and to execute all such documents, as Seller Representative shall deem necessary, appropriate or advisable, in such Person's sole discretion, in connection with any of the Sale, including the power:

(i) to execute and deliver all Transaction Documents, certificates, and other documents that Seller Representative deems necessary, appropriate or advisable in connection with the consummation of the Sale;

(ii) to receive and give receipt for all payments made by Buyer to Seller or any Owner under this Agreement, including any adjustments thereto, or from the Escrow Account;

(iii) to employ, at the expense of Seller and the Owners, and obtain the advice of legal counsel, accountants and other professional advisors as Seller Representative, in such Person's sole discretion, deems necessary or advisable in the performance of such Person's duties as Seller Representative and to rely on their advice and counsel;

(iv) to amend or waive any provision of this Agreement or any Transaction Document, provided that any such amendment or waiver, if material to the rights and obligations of Seller and Owners in the reasonable judgment of Seller Representative, shall be taken in the same manner with respect to Seller and all Owners unless otherwise agreed by Seller and each Owner who is subject to any disparate treatment of a potentially adverse nature;

(v) to agree with Buyer with respect to any matter or thing Seller Representative deems necessary, appropriate or advisable in connection with the provisions of this Agreement calling for the agreement of Seller or any Owner, give and receive notices on behalf of Seller and all Owners and act on behalf of Seller and all Owners in connection with any matter as to which Seller or the Owners are or may be obligated to indemnify Buyer under this Agreement, all in the absolute discretion of Seller Representative;

(vi) to dispute or fail to dispute any liability claim hereunder and to negotiate and compromise any dispute that may arise under <u>Sections 2.5</u>, or <u>2.6</u> and to sign any releases or other documents with respect to any such dispute, including the interpretation of, disputing or failing to dispute the composition or amount of the Closing Date Cash on Hand, Closing Date Net Working Capital, Adjustment Indebtedness, Adjustment Selling Expenses, any Contingent Consideration Payment or any other item on the Adjustment Statement and negotiating and signing any release in respect of any such dispute;

(vii) to settle all other disputes and claims that arise under this Agreement or any Transaction Document and any other Contract, certificate or instrument delivered in connection with this Agreement; and

(viii) to do or refrain from doing any further act or deed on behalf of Seller or any Owner that Seller Representative deems necessary, appropriate or advisable in such Person's sole discretion relating to the subject matter of this Agreement as fully and completely as Seller or any Owner could do if personally present and acting.

------

(b) The appointment of Seller Representative in this <u>Section 10.17</u> shall be deemed coupled with an interest and shall be irrevocable, and shall be binding and enforceable on and against Seller and each Owner and his, her or its successors, assigns and Affiliates, and LPTH, Buyer and any other Person may conclusively and absolutely rely, without inquiry, upon any action of Seller Representative as the act of Seller or each Owner in all matters referred to in this Agreement or the Transaction Documents. Seller or each Owner hereby ratifies and confirms all that Seller Representative shall do or cause to be done by virtue of the Seller Representative's appointment as Seller Representative of Seller or of such Owner. Seller Representative shall act for Seller and all Owners on all of the matters set forth in this Agreement in the manner Seller Representative believes to be in the best interest of Seller and all Owners and consistent with Seller Representative's obligations under this Agreement, but Seller Representative shall not be responsible to Seller or any Owner for any liability Seller or any Owner may suffer by reason of the performance by Seller Representative of Seller Representative's duties under this Agreement, including any liability resulting from any error of judgment, mistake of fact or Law, or any act done or omitted to be done in good faith, other than liability arising from willful violation of Law or gross negligence in the performance of Seller Representative's duties under this Agreement.

(c) Seller and each Owner hereby expressly acknowledge and agree that Seller Representative is authorized to act on behalf of Seller or such Owner notwithstanding any dispute or disagreement among Seller and the Owners, and that the Buyer Affiliated Companies shall be entitled to rely on any and all action taken by Seller Representative under this Agreement or the Transaction Documents without liability to, or obligation to inquire of, Seller or any Owner. Seller and each Owner hereby further expressly acknowledge that the Selling Expenses will be allocated by Seller Representative among the Owners pursuant to the percentages set forth on the Owner Allocation Exhibit and that such Selling Expenses do and will include (i) reimbursement of amounts previously paid by Seller or the Owners in connection with the negotiation of this Agreement and the Sale, and (ii) payment of accrued and unpaid Selling Expenses from amounts due and payable to Seller or the Owners after the Closing. Seller and the Owners hereby jointly and severally agree to indemnify, defend and hold Seller Representative harmless from and against any and all liability (including fees and expenses of legal counsel) reasonably incurred or suffered as a result of the performance of Seller Representative's duties under this Agreement except for actions by Seller Representative constituting gross negligence or willful misconduct.

(d) In the event Mark F. Hilton (and/or any subsequent Seller Representative appointed pursuant to this <u>Section 10.17(d)</u>) resigns, or otherwise becomes unable to serve, Seller and the Owners shall, within thirty (30) days after notice thereof, determine and designate a successor Seller Representative who shall have all of the rights, powers and authority conferred on Seller Representative in this Agreement, and if Seller and the Owners fail to designate such successor within such period, any Owner or Buyer may petition a court of appropriate jurisdiction for appointment of a successor Seller Representative.

*[Remainder of this page intentionally left blank]*

------

**IN WITNESS WHEREOF**, the undersigned have caused this Agreement to be executed as of the date first written above.

---

| | |
|:---|:---|
| **<u>PARENT</u>:** | **<u>PARENT</u>:** |
| **LIGHTPATH TECHNOLOGIES, INC.** | **LIGHTPATH TECHNOLOGIES, INC.** |
| By: | */s/ Shmuel Rubin* |
| Name: Shmuel Rubin | Name: Shmuel Rubin |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| **<u>BUYER</u>:** | **<u>BUYER</u>:** |
| **AMORPHOUS MATERIALS, LLC** | **AMORPHOUS MATERIALS, LLC** |
| By: | */s/ Shmuel Rubin* |
| Name: Shmuel Rubin<br> Title: Chief Executive Officer | Name: Shmuel Rubin<br> Title: Chief Executive Officer |
| **<u>SELLER</u>:** | **<u>SELLER</u>:** |
| **AMORPHOUS MATERIALS, INC.** | **AMORPHOUS MATERIALS, INC.** |
| By: | */s/ Ray Hilton* |
| Name: Ray Hilton<br> Title: President CEO | Name: Ray Hilton<br> Title: President CEO |
| **<u>SELLER REPRESENTATIVE</u>:** | **<u>SELLER REPRESENTATIVE</u>:** |
| */s/ Mark F. Hilton* | */s/ Mark F. Hilton* |
| **MARK F. HILTON** | **MARK F. HILTON** |

---

[Signature Page – Asset Purchase Agreement]

------

---

| |
|:---|
| **<u>OWNERS</u>:** |
| */s/ Albert R. Hilton III* |
| **ALBERT R. HILTON III** |
| */s/ Terri Hilton* |
| **TERRI HILTON** |
| */s/ Mark F. Hilton* |
| **MARK F. HILTON** |
| */s/ Pam E. Klein* |
| **PAM E. KLEIN** |
| */s/ Gail L. Hanna* |
| **GAIL L. HANNA** |
| */s/ Greg Whaley* |
| **GREG WHALEY** |
| */s/ Kristi Whaley* |
| **KRISTI WHALEY** |
| */s/ Todd Haney* |
| **TODD HANEY** |

---

[Signature Page – Asset Purchase Agreement]

------

EXHIBIT A

**<u>OWNER ALLOCATION EXHIBIT</u>**

**[\*]**

## Exhibit 99.1

**Exhibit 99.1**

**LightPath Technologies Acquires Amorphous Materials, Inc.**

*Strategic Purchase to Add Proprietary Large Diameter Glass Melting Technology of Chalcogenide Glass*

**ORLANDO, FL** – **January 20, 2026** – <u>LightPath Technologies, Inc.</u> (NASDAQ: LPTH) ("LightPath," the "Company," "we," or "our"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced it has acquired the assets of Amorphous Materials, Inc., ("AMI") an industrial manufacturer with complementary Chalcogenide glass melting technologies, in particular for large diameter optics, purchased for aggregate consideration of $7.0 million in cash, with the potential for up to $3 million of additional technical milestone-based equity consideration.

**Key Transaction Highlights**

● Acquisition accelerates execution of strategic vision to become a leading vertically integrated infrared imaging ("IR") solutions provider in the $9B infrared imaging market

● AMI is a 50+ year-old company with a strong reputation, founded by Dr. Ray Hilton Sr., who was considered one of the pioneers in commercializing Chalcogenide glass

● Adds incremental AMI glass melting technology, which melts high-grade glass as large diameter plates, critical for large optics, and in particular for space programs

● Adds glass melting capacity and a second, NDAA compliant manufacturing location for BlackDiamond glass, acting as a backup for Orlando manufacturing

● Adds a portfolio of complementary Chalcogenide glasses to BlackDiamond™ Chalcogenide-based glass materials portfolio

● Accretive asset acquisition that is expected to add approximately $3.0 million in annual revenue following the acquisition

● A majority of AMI's revenue is generated from one tier-1 defense customer and derived from major programs of record that are expected to continue over the long term

**Acquisition Summary and Strategic Rationale**

Founded in 1977 to serve as a source of IR glass to be used as optical materials for forward looking night vision (FLIR) systems, AMI has developed the technology and built a facility capable of compounding and casting up to 10,000 lbs. of glass per year. AMI manufactures glass in support of multiple programs of record including the Joint Strike Fighter Electro-Optical Targeting System program and the Arrowhead sensor suite program for the Apache helicopter.

This acquisition strengthens LightPath's capabilities for large diameter optics, adding not only additional glass capacity, but the capability of making BlackDiamond™ up to 17" diameter, compared to 5" diameter today, significantly enhancing LightPath's ability to supply large, high-value optics. These capabilities are expected to enable the use of BlackDiamond glass in long range, satellite sensors for the Golden Dome program. Operationally, AMI will add capacity and a redundant NDAA compliant manufacturing site in Plant, Texas at the facility form which LightPath's Visimid subsidiary operates, with all incremental glass melting capabilities to be duplicated between Florida and Texas.

------

Further market expansion is possible for AMI's advanced IR optical glass by offering optics and coatings through LightPath and marketing its products more widely. Combining LightPath's growing camera portfolio with AMI's highly complementary large-diameter glass capabilities will create one of the largest offerings of IR materials and optics in the industry today, all of which will be compliant with the latest NDAA requirement for US produced glass and optics.

**Acquisition Terms**

The aggregate consideration payable to AMI members is $7.0 million in cash, with the potential for up to $3 million in additional technical milestone-based equity consideration.

**Management Commentary**

"This accretive acquisition strengthens our industry position, glass supply chain – and with the addition of large diameter glass plate capabilities – further solidifies our transition from a pure component provider to a truly vertically integrated provider of subsystems and solutions for IR imaging," said Sam Rubin, President and Chief Executive Officer of LightPath. "AMI's best-in-class processes for chalcogenide glass manufacturing will upgrade our own capabilities, expand capacity and enable us to accelerate new glass readiness. Its technology will allow us to melt glass in larger sizes, opening the door to self-producing glass for high-value long-range imaging applications. Melting in large diameter plates is critical for large optics, an area we did not previously support and that has been a limitation of adoption of the BlackDiamond™ materials for select applications.

"AMI brings established programs with a tier-1 defense customer, and we believe combining our technologies will provide us with robust near-term revenue growth with a trusted partner. The acquisition fits our broader M&A strategy to expand our capabilities and market reach with AMI's family of materials, as we seek to build a comprehensive IR imaging platform. We look forward to working with the AMI team to accelerate both growth and new product innovation and deliver value for our shareholders," concluded Rubin.

Ray Hilton III, Chief Executive Officer of AMI, added: "We are privileged to join the LightPath family to help enhance its position in the market as a leader in IR imaging. Combining our complementary glass technologies with LightPath's robust glass and imaging product suite will enable new possibilities for large optics and exciting new products. I look forward to working closely with Sam and the LightPath team in the months ahead."

**About LightPath Technologies**

LightPath Technologies, Inc. (NASDAQ: LPTH) is a leading provider of next-generation optics and imaging systems for both defense and commercial applications. As a vertically integrated solutions provider with in-house engineering design support, LightPath's family of custom solutions range from proprietary BlackDiamond™ chalcogenide-based glass materials - sold under exclusive license from the U.S. Naval Research Laboratory - to complete infrared optical systems and thermal imaging assemblies. The Company's primary manufacturing footprint is located in Orlando, Florida with additional facilities in Texas, New Hampshire, Latvia and China. To learn more, please visit <u>www.lightpath.com</u>.

------

**Forward-Looking Statements**

This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "guidance," "plan," "estimate," "will," "would," "project," "maintain," "intend," "expect," "anticipate," "prospect," "strategy," "future," "likely," "may," "should," "believe," "continue," "opportunity," "potential," and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, without limitation, statements regarding expectations, beliefs, hopes, intentions or strategies regarding, among other things, the anticipated benefits and potential synergies of the acquisition, the Company's ability to generate and accelerate additional revenue, possible market expansion, as well as the reception in the industry, the Company's ability to pursue additional opportunities, such as the U.S. Golden Dome, as well as other statements that are other than historical fact. These forward-looking statements are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the likelihood that the impact of varying demand for the Company products; the inability of the Company to sustain profitable sales growth, convert inventory to cash, or reduce its costs to maintain competitive prices for its products; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; the Company's reliance on a few key customers; the ability of the Company to obtain needed raw materials and components from its suppliers; the impact that international tariffs may have on our business and results of operations; the impact of political and other risks as a result of our sales to internal customers and/or our sourcing of materials from international suppliers; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; geopolitical tensions, the Russian-Ukraine conflict, and the Hamas/ Israel war; the effects of steps that the Company could take to reduce operating costs; and those factors detailed by the Company in its public filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K and other filings with the SEC. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

**Investor Relations Contact**

Lucas A. Zimmerman

MZ Group – MZ North America

<u>LPTH@mzgroup.us</u>

949-259-4987