Document:

NextPlay Technologies, Inc. 8-K

 

Exhibit 10.1

 

 

INTELLECTUAL
PROPERTY PURCHASE AGREEMENT

by
and between 

NextPlay
Technologies Inc.,

(as
Buyer) 

And

Fighter
Base Publishing Inc. (The entity) 

(as
Seller) 

Dated
as of August 19, 2021

 

 

This
INTELLECTUAL PROPERTY PURCHASE AGREEMENT (this “Agreement”) is entered into as of August ___, 2021 by and between
NextPlay Technologies, Inc., a Nevada corporation (“Buyer”) and Fighter Base Publishing Inc., a Delaware Corporation
(“Seller,” each of Buyer and Seller a “Party” and together, the “Parties”);
and with respect to the following facts:

 

		A.	Buyer
                                            is engaged in the business of developing technology for the Games, FinTech, and Travel market;

 

		B.	Buyer
                                            is a company whose shares of common stock are registered with the Securities and Exchange
                                            Commission (“SEC”) and are traded on the NASDAQ Capital Market (“NASDAQ”);

 

		C.	Seller
                                            has developed and owns certain proprietary technology for the Games Industry;

 

		D.	Seller
                                            desires to sell, and Buyer desires to purchase, such technology upon the terms and subject
                                            to the conditions set forth in this Agreement; and

 

		E.	Buyer
                                            desires to issue shares of its common stock to Seller in consideration for the acquisition
                                            of such technology.

 

NOW,
THEREFORE, in consideration of the foregoing and the respective covenants, representations and promises set forth herein, the Parties
agree as follows:

 

		1.	ARTICLE
                                            1
	 	 	DEFINITIONS

 

1.1.       Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:

 

“Acquired
Assets” has the meaning set forth in Section 2.1.

 

    	 	1	 

    	 

    

“Acquired
Assets Value” means $5,000,000.

 

“Acquired
Intellectual Property” has the meaning set forth in Section 4.5(a) and includes the information set forth on Schedule 1.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person.

 

“Agreement”
has the meaning set forth in the introductory paragraph hereto.

 

“Buyer”
has the meaning set forth in the introductory paragraph hereto.

 

“Buyer
Common Stock” means the common stock par value $0.00001 of Buyer.

 

“Buyer
Disclosure Schedule” has the meaning set forth in the introductory paragraph of Article 3.

 

“Buyer
Entities” means Buyer and any Affiliate of Buyer.

 

“Closing”
has the meaning set forth in Section 2.4.

 

“Closing
Date” has the meaning set forth in Section 2.4.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Information”
has the meaning set forth in Section 5.2.

 

“Intellectual
Property Assignment Agreement” has the meaning set forth in Section 2.4(b).

 

“Intellectual
Property Licenses” has the meaning set forth in Section 4.5(a).

 

“Lien”
means any lien, charge, claim, security interest, encumbrance, right of first refusal or other restriction.

 

“Losses”
means any and all losses, claims, damages, liabilities, settlement costs and expenses, including, without limitation, reasonable attorneys’
fees.

 

“Material
Adverse Effect” with respect to a Party shall means (i) a material adverse effect on the results of operations, assets, business,
prospects or financial condition of the Party or (ii) material and adverse impairment of the Party’s ability to perform its obligations
under this Agreement.

 

“Material
Permits” has the meaning set forth in Section 3.18.

 

“NASDAQ”
shall mean the NASDAQ Stock Market, Inc.

 

    	 	2	 

    	 

    

“Open
Source Materials” has the meaning set forth in Section 4.5(i).

 

“Party”
or “Parties” has the meaning set forth in the introductory paragraph hereto.

 

“Permitted
Liens” means: (i) statutory liens for Taxes, assessments and governmental charges or levies not yet due and payable or that
are being contested in good faith by appropriate proceedings; (ii) mechanics’, materialmen’s, carriers’, warehousemen’s
or similar statutory liens for amounts not yet due or being diligently contested in good faith in appropriate proceedings; and (iii)
pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory
obligations.

 

“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
a government or any department or agency thereof and any other legal entity.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, a partial proceeding, such as a deposition),
whether commenced or threatened in writing.

 

“SEC”
shall mean the Securities and Exchange Commission.

 

“SEC
Reports” has the meaning set forth in Section 3.6.

 

“Securities
Act” has the meaning set forth in Section 2.3(b).

 

“Seller”
has the meaning set forth in the introductory paragraph hereto.

 

“Seller
Entities” means the Seller and any Affiliate of Seller.

 

“Seller
Disclosure Schedule” has the meaning set forth in the introductory paragraph of Article 4.

 

“Share
Price” means $3.00.

 

“Software”
has the meaning set forth in Section 4.5(c)(ii).

 

“Stock
Consideration” means 1,666,667 shares of restricted Buyer Common Stock that is calculated by dividing the Acquired Assets Value
by the Share Price.

 

“Tax”
or “Taxes” has the meaning set forth in Section 3.24.

 

“Trading
Market” means whichever of the New York Stock Exchange, the NYSE Amex Equities, the NASDAQ Global Select Market, the NASDAQ
Global Market, the NASDAQ Capital Market, OTC Bulletin Board, or OTC Markets’ OTCQB, on which Buyer Common Stock is listed or quoted
for trading on the date in question.

 

    	 	3	 

    	 

    

“Transactions”
has the meaning set forth in Section 3.2.

 

 

“U.S.
GAAP” means Generally Accepted Accounting Principles in the United States as promulgated by the Financial Accounting Standards
Board.

 

 

Article
2

PURCHASE AND SALE OF ASSETS

2.1

Agreement
to Purchase and Sell. On and subject to the terms and conditions of this Agreement, at the Closing, Seller shall sell, assign, transfer,
convey, deliver and relinquish exclusively to Buyer, and Buyer shall purchase and acquire from Seller, free and clear of all Liens (other
than Permitted Liens), all of Seller’s right, title and interest, both the tangible and the intangible, as of the Closing, in and
to the following assets, properties and rights (collectively, the “Acquired Assets”):

(a)       the
Acquired Intellectual Property; and

(b)       all
goodwill associated with the foregoing.

2.2

Excluded
Liabilities. Buyer will not assume any liability or obligation of Seller in connection with Buyer’s purchase of the Acquired
Assets pursuant to this Agreement.

2.3

Stock
Consideration. 

(a)       Delivery.
In consideration for the sale by Seller of the Acquired Assets to Buyer, at the Closing, Buyer shall direct Colonial Stock Transfer &
Trust Company, LLC, as registrar and transfer agent to the Buyer, to register the Stock Consideration in book-entry form in the name
of and for the benefit of the Seller in order to effectively vest in Seller its right, title and interest in and to the Stock Consideration.

(b)       
Purchase via issuance of Restricted Securities. Stock Consideration shall be issued pursuant to exemptions from the registration
requirements of the Securities Act of 1933, as amended (“Securities Act”), and shall accordingly bear a restrictive
legend subject to existing law, as more fully described in Section 7.8(a) hereof.

(c)       Registration
Rights.  Any Stock Consideration that are still restricted six months after the closing of this transaction will be included in any
registration statement filed by Buyer for the resale of Company securities, other than registration statements on Form S-4 or Form S-8.

 

2.4

Closing
Transactions.

 

(a)       Closing.
Subject to the satisfaction or, if permissible, waiver of the conditions set forth in Articles 7 and 8, the closing of the Transactions
(the “Closing”) will take place following Shareholder Approval (as defined in Section 7.3(c) and at such time and
place as Seller and Buyer shall mutually agree, orally or in writing (which time is designated as the “Closing Date”).

    	 	4	 

    	 

    

 

(b)       Intellectual
Property Assignment. At the Closing, the Parties shall execute and deliver, or cause to be executed and delivered, an Intellectual
Property Assignment Agreement in a form set forth on Exhibit A (the “Intellectual Property Assignment Agreement”) pursuant
to which the Acquired Intellectual Property will be transferred and assigned to Buyer. The Intellectual Property Assignment Agreement
shall include a perpetual, non-exclusive, non-transferable, non-assignable, non-sub-licensable, royalty-free right and grant-back license
in favor of Seller to use the Acquired Intellectual Property. Except as specified in such grant-back license, Seller shall retain no
other rights of any kind in the Acquired Intellectual Property. After the Closing, Seller shall not make, use, sell, offer to sell, reproduce,
execute, perform, distribute, exploit, or otherwise commercialize the Acquired Intellectual Property except as expressly permitted in
the grant-back license.

(c)       Other
Deliverables. Seller will execute and deliver all such other bills of sale, assignments, endorsements, intellectual property right
assignments, trade name assignments, certificates of title, consents and other good and sufficient instruments and documents of conveyance
and transfer in a form reasonably satisfactory to Buyer, as Buyer reasonably shall deem necessary or appropriate to vest in or confirm
to Buyer full and complete right, title and interest in and to all of the Acquired Assets.

(d)       Actions
and Deliveries by Seller. At the Closing, Seller shall deliver to Buyer the certificates and documents required to be delivered by
Seller pursuant to Sections 7.1 and 7.2.

(e)       Actions
and Deliveries by Buyer. At the Closing, Buyer shall deliver to Seller:

(i)       the
certificates and documents required to be delivered by Buyer pursuant to Sections 7.1 and 7.3; and

(ii)       the
Stock Consideration.

(f)
Parties agree the effective closing date will be September 1st to align with NextPlay Technologies financial
reporting period.

 

 

Article
3

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer
hereby represents and warrants to Seller that the statements contained in this Article 3 are true and correct, except as
disclosed in Buyer disclosure schedule attached hereto (the “Buyer Disclosure Schedule”), which is divided into
sections that correspond to the sections of this Article 3 (with the disclosures in any such section of Buyer Disclosure Schedule
qualifying both the corresponding
representations and warranties of this Article 3 and any other representations and warranties of this Article 3 to which such disclosure
would reasonably relate).

 

    	 	5	 

    	 

    

 

3.1

Corporate
Organization; Subsidiaries. Buyer is a corporation duly organized, validly existing and in good standing under the laws of
Nevada with the requisite corporate power and authority to carry on its business as it is now being conducted and to own, operate and
lease its properties and assets, and is duly qualified or licensed to do business as a foreign corporation in good standing in every
other jurisdiction in which the character or location of the properties and assets owned, leased or operated by it or the conduct of
its business requires such qualification or licensing, except in such jurisdictions in which the failure to be so qualified or licensed
and in good standing would not, individually or in the aggregate, have a Material Adverse Effect on Buyer taken as whole. Buyer has several
subsidiaries.

3.2

Authorization;
Enforceability.

(a)
Buyer has the requisite corporate authority to enter into this Agreement and to consummate the transactions contemplated hereby and the
Exhibits hereto (the “Transactions”) and otherwise to carry out its obligations hereunder and thereunder. Subject
to obtaining the approval of Buyer’s board of directors as provided in Section 8.8 and the required Stockholder Approval,
the execution and delivery of Agreement by Buyer and the consummation by it of the Transactions have been duly authorized by all necessary
corporate action on the part of Buyer and no further consent or action is required by Buyer, its board of directors or its shareholders.

(b)
Other than the submission to and approval by NASDAQ of a listing of additional shares form as more fully described in Section 8.10,
and the notice on Form D to be filed with the SEC, in each case covering the Stock Consideration, and the required Stockholder Approval,
the Buyer is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery
and performance by Buyer of this Agreement or the consummation of the Transactions, other than those whose failure to be obtained could
not reasonably be expected to have a Material Adverse Effect.

(c)
This Agreement has been (or upon delivery will be) duly executed by Buyer and is, or when delivered in accordance with the terms hereof,
will constitute, the valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms, except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

3.3

No
Conflicts. The execution, delivery and performance of the Agreement by Buyer and the consummation by Buyer of the Transactions and
thereby do not, and will not, (i) conflict with or violate any provision of Buyer’s articles of incorporation, bylaws or other
organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Buyer debt or otherwise)
or other understanding to which Buyer is a party or by which any property or asset of Buyer is bound, or affected, except in the cases
of clauses (i) and (ii) above to the extent that such conflict, default, termination, amendment, acceleration or cancellation right would
not reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which Buyer is subject, or by which any properties
or assets of Buyer are bound or affected, except to the extent that such violation would not reasonably be expected to have a Material
Adverse Effect.

    	 	6	 

    	 

    

3.4

Stock
Consideration Duly Authorized. The Stock Consideration is duly authorized and, when issued and paid for in accordance with the Agreement,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and will not be subject to preemptive or similar
rights of shareholders.

3.5

Capitalization.
All outstanding shares of Buyer’s capital stock are duly authorized, validly issued, fully paid and nonassessable and have been
issued in compliance in all material respects with all applicable securities laws. Except as set forth in the Buyer Disclosure Schedule
or otherwise set forth in the SEC Reports (as defined below), and except for customary adjustments as a result of stock dividends, stock
splits, combinations of shares, reorganizations, recapitalizations, reclassifications or other similar events, there are no anti-dilution
or price adjustment provisions contained in any security issued by Buyer (or in any agreement providing rights to security holders) and
the issuance and sale of the Stock Consideration will not obligate Buyer to issue additional shares of Buyer Common Stock or other securities
to any Person and will not result in a right of any holder of securities to adjust the exercise, conversion, exchange or reset price
under such securities.

3.6

SEC
Filings; Financial Statements. Other than as set forth on Schedule 3.6 of the Buyer Disclosure Schedule, all statements, reports,
schedules, forms and other documents required to have been filed by Buyer with the SEC (“SEC Reports”) have been so
filed and on a timely basis for at least the prior two years. As of the time it was filed with the SEC (or, if amended or superseded
by a filing prior to the date of this Agreement, then on the date of such filing), each of the SEC Reports complied in all material respects
with the applicable requirements of the Exchange Act. Buyer has a class of securities registered under the Exchange Act. Buyer’s
fiscal year-end is February 28 and such fiscal year has been determined and approved by Buyer’s board of directors. The SEC Reports
contain a correct and complete copy of the audited financial statements (including, in each case, any related notes thereto), on a consolidated
basis, for the period from March 1, 2019 to fiscal year ended February 28, 2021 prepared in accordance with the published rules and regulations
of any applicable governmental entity and with U.S. GAAP applied on a consistent basis throughout the periods involved (except as may
be indicated in the notes thereto) and audited in accordance with the auditing standards of the Public Company Accounting Oversight Board
(“PCAOB”) by an independent accountant registered with PCAOB. Such financial statements fairly present in all material
respects the financial position of Buyer, on a consolidated basis, at the respective dates thereof and the results of its operations
and cash flows for the periods indicated.

    	 	7	 

    	 

    

3.7

Material
Changes; Undisclosed Events, Liabilities or Developments; Solvency. Since the date of the latest audited financial statements included
within its Form 10-K filed with the SEC, and except as set forth in the SEC Reports, (i) there has been no event, occurrence or development
that, individually or in the aggregate, has had or that would result in a Material Adverse Effect, (ii) Buyer has not incurred any material
liabilities other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in Buyer’s financial statements pursuant to U.S. GAAP or required to be disclosed
in filings made with the SEC.

3.8

Absence
of Litigation. There is no action, suit, claim, or Proceeding, or, to Buyer’s knowledge, inquiry or investigation, before or
by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of Buyer, threatened
against or affecting Buyer that could, individually or in the aggregate, have a Material Adverse Effect.

3.9

Compliance.
Except as would not, individually or in the aggregate, reasonably be expected to have or result in a Material Adverse Effect, (i) Buyer
is not in violation of any order of any court, arbitrator or governmental body, and (ii) Buyer is not or has not been in violation of
any statute, rule or regulation of any governmental authority.

3.10

Title
to Assets. Buyer does not own any real property.

3.11

Listing
and Maintenance Requirements. Buyer’s Common Stock is quoted on NASDAQ under the symbol “NXTP” and is “DTC
eligible.” Other than as set forth on Schedule 3.11 of the Buyer Disclosure Schedule, Buyer has not, in the twelve months preceding
the date hereof, received notice (written or oral) from any Trading Market on which Buyer Common Stock is or has been listed or quoted
to the effect that Buyer is not in compliance with the listing or maintenance requirements of such Trading Market. Other than as set
forth on Schedule 3.11 of the Buyer Disclosure Schedule, Buyer is, and is making all commercially reasonable efforts to remain, in compliance
with all such listing and maintenance requirements.

3.12

No
Disqualifying Event. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a
“Disqualification Event”) is applicable to Buyer or, to Buyer’s knowledge, any Buyer Covered Person, except
for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3) is applicable. For purposes of this Agreement “Buyer
Covered Person” means, with respect to Buyer as an “issuer” for purposes of Rule 506 promulgated under the
Securities Act, any person listed in the first paragraph of Rule 506(d)(1).

3.13

Registration
Rights. Buyer has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights)
to have any securities of Buyer registered with the SEC or any other governmental authority that have not expired or been satisfied or
waived, except as set forth in the SEC Reports.

3.14

Trademarks.
Buyer owns the content of its websites, its registered domain names, registered and unregistered trademarks, and has contracts with third
party property managers and distributors.

    	 	8	 

    	 

    

3.15

Regulatory
Permits. Buyer possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign
regulatory authorities necessary to conduct its respective business as presently conducted (“Material Permits”), except
where the failure to possess such permits does not, individually or in the aggregate, have or reasonably be expected to result in a Material
Adverse Effect, and Buyer has not received any written notice of proceedings relating to the revocation or modification of any Material
Permit.

3.16

Transactions
With Affiliates and Employees. Buyer has numerous transactions with related parties and entities, including officers and directors
of Buyer, as set forth in Buyer’s SEC Reports, including its most recent Form 10-K and Form 8-K filings.

3.17

Internal
Accounting Controls. Buyer maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with U.S. GAAP and to maintain asset accountability, (iii) access
to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability
for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

3.18

Omitted
Intentionally.

3.19

Indebtedness.
Except as disclosed in the SEC Reports, Buyer (i) does not have any outstanding indebtedness, (ii) is not in violation o f any term of
or is in default under any contract, agreement or instrument relating to any Indebtedness.

3.20

Employee
Relations. Buyer is not a party to any collective bargaining agreement. Buyer believes that its relations with its employees are
as disclosed in its SEC Reports.

3.21

Tax
Status. For purposes of this Agreement, “Tax” or “Taxes” refers to any and all applicable central,
federal, provincial, state, local, municipal and foreign taxes, together with all interest, penalties and additions imposed with respect
to any such amounts and any obligations under any agreements or arrangements with any other person with respect to any such amounts.

To
the knowledge of Buyer:

(i)       Buyer
has timely filed and paid all Taxes required for the fiscal year ended February 28, 2020.

(ii)       Buyer
has timely filed all the returns, estimates, information statements and reports relating to Taxes required to be filed with any Tax Authority
prior to the date hereof. All such filings are true, correct and complete in all material respects. Buyer has paid all Taxes shown to
be due on such filings.

(iii)       All
Taxes that Buyer is required by law to withhold or collect have been duly withheld or collected, and has been timely paid over to the
proper Authority to the extent due and payable.

    	 	9	 

    	 

    

(iv)       No
audit or other examination of any Tax return filed by Buyer by any Tax Authority is presently in progress, nor has Buyer been notified
of any request for such an audit or other examination.

(v)       Buyer
has no liability for any unpaid Taxes which have not been accrued for or reserved on Buyer’ balance sheets included in the U.S.
GAAP financial statements described for the most recent fiscal year.

3.22

No
Brokers or Finders. Any broker, finder or investment banker fee or commission in connection with the Transaction will be solely the
responsibility of the Seller.

Article
4

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller
represents and warrants to Buyer, that the statements contained in this Article 4 are true and correct to the knowledge of Seller, except
as disclosed in the disclosure schedule attached hereto (the “Seller Disclosure Schedule”), which is divided into
sections that correspond to the sections of this Article 4 (with the disclosures in any such section of the Seller Disclosure Schedule
qualifying both the corresponding representations and warranties of this Article 4 and any other representations and warranties of this
Article 4 to which such disclosure would reasonably relate).

 

4.1

Corporate
Organization; Subsidiaries; Properties. Seller is a corporation duly organized, validly existing and in good standing under the laws
of Delaware with the requisite corporate power and authority to carry on its business as it is now being conducted and to own, operate
and lease its properties and assets, and is duly qualified or licensed to do business as a foreign corporation in good standing in every
other jurisdiction in which the character or location of the properties and assets owned, leased or operated by it or the conduct of
its business requires such qualification or licensing, except in such jurisdictions in which the failure to be so qualified or licensed
and in good standing would not, individually or in the aggregate, have a Material Adverse Effect on Seller taken as whole. Seller has
no subsidiaries. Seller does not own or lease any real property material to the Acquired Assets, and no interests in real property are
incorporated in the Acquired Assets.

4.2

Authorization;
Enforceability. Seller has the requisite corporate authority to enter into this Agreement and to consummate the Transactions and
otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by Seller and the consummation
by it of the Transactions have been duly authorized by all necessary corporate action on the part of Seller and no further consent or
action is required by Seller, its board of directors or its shareholders. The Agreement has been (or upon delivery will be) duly executed
by Seller and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation of Seller
enforceable against Seller in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

    	 	10	 

    	 

    

4.3

No
Conflicts.The execution, delivery and performance of the Agreement by Seller and the consummation by Seller of the Transactions
and thereby do not, and will not, (i) conflict with or violate any provision of Seller’s articles of incorporation, bylaws or other
organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Seller debt or otherwise) or
other understanding to which Seller is a party or by which any property or asset of Seller is bound, or affected, except in the cases
of clauses (ii) and (iii) above to the extent that such conflict, default, termination, amendment, acceleration or cancellation right
would not reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which Seller is subject, or by which any
properties or assets of Seller are bound or affected, except to the extent that such violation would not reasonably be expected to have
a Material Adverse Effect.

4.4

Absence
of Litigation. Seller is not a party to or the subject of any pending litigation, claims, decrees, orders, stipulations or governmental
investigation relating to the Acquired Intellectual Property, and there are no lawsuits, claims, demands, assessments, investigations,
or similar matters, against or affecting Seller, its management or its properties with respect to the Acquired Intellectual Property.
Seller has complied in all material respects with all laws, statutes, ordinances, regulations, rules, decrees or orders applicable to
the Acquired Intellectual Property, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect.

4.5

Intellectual
Property and Software.

(a)       Set
forth in the Seller Disclosure Schedule is a true and complete list of all: (i) patents, patent applications, provisional patents and
utility models and applications therefor and equivalent or similar rights anywhere in the world in inventions and discoveries including
invention disclosures; (ii) trademarks, service marks, trade dress, trade names, logos and corporate names (in each case, whether registered
or unregistered) and registrations and applications for registration thereof; (iii) registered copyrights and registrations and applications
for registration thereof; (iv) rights in data, databases or other compilations of fact; (v) trade secrets and other confidential or proprietary
information (including ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice),
know-how, manufacturing and production processes and techniques, marketing and other business systems, research and development information,
drawings, specifications, designs, plans, proposals, financial and marketing plans and customer and supplier lists and information);
(vi) uniform resource locator and World Wide Web addresses and domain names and applications and registrations therefor; (vii) works
of authorship including computer programs, source code and executable code, whether embodied in software, firmware or otherwise, including,
software compilations, software implementations of engines, algorithms, software tool sets, compilers, and software models and methodologies
(regardless of the stage of development or completion), documentation, designs, files, records, data and mask works; and (viii) goodwill
associated with any of the foregoing of any kind now used by Seller in connection with the operation or commercial exploitation of the
Gaming Platform (collectively, the “Acquired Intellectual Property”), other than any off-the shelf, shrink-wrapped
or “click to accept” software licenses or other
licenses to generally commercially available software obtained in the ordinary course of business. Set forth in the Seller Disclosure
Schedule is a complete list of all licenses or agreements, to which Seller is a party granting third-parties rights in the Acquired Intellectual
Property or pursuant to which the Seller has acquired rights incorporated in the Acquired Intellectual Property respect to any of the
Acquired Intellectual Property (the “Intellectual Property Licenses”).

    	 	11	 

    	 

    

(b)       Except
as set forth in the Seller Disclosure Schedule, neither the Acquired Intellectual Property nor any Intellectual Property License violates,
misappropriates or infringes upon any validly issued trademark, trade name, service mark, copyright or, any validly issued patent or
patent application or other right of any other Person, nor does Seller have knowledge of any basis for such a claim or demand. To the
knowledge of Seller, no Person is misappropriating, infringing, violating or making unlawful use of any Acquired Intellectual Property,
nor does Seller have knowledge of any basis for such a claim or demand. Except as set forth in the Disclosure Schedules, Seller has not
received any demand, notice or communication from any Person claiming any violation, misappropriation or infringement by Seller of another
Person’s rights in connection with the Acquired Intellectual Property or any Intellectual Property License nor does Seller have
knowledge of any basis for any such notice, communication, claim or demand.

(c)       Except
as set forth in the Seller Disclosure Schedule, Seller is the sole and exclusive owner or licensee of:

(i)       the
Acquired Intellectual Property and the technology, know-how and processes used by Seller in connection with the operation or commercial
exploitation of the Gaming Platform; and

 

(ii)
all rights, title and interest in and to the computer software incorporated in the Acquired Intellectual Property (“Software”),
with all modifications, enhancements and additions thereto, including, without limitation, all rights in and to all versions thereof
and all source code, object code, manuals and other documentation and related materials thereof, copyright in and to each and all works
derivative therefrom (including the registrations of copyright incorporated in the Acquired Intellectual Property), all current, enhanced
and developmental versions of the source and object code and any variations thereof, all user and programmer documentation, all design
specifications, all system documentation (including all flow charts, systems procedures and program component descriptions), all procedures
for modification and preparation for the release of enhanced versions and all test data available (excluding all proprietary information
of third parties) with respect to the Software.

 

(d)       Each
of the Intellectual Property Licenses is valid, binding and enforceable in accordance with its terms against the parties thereto (subject,
as to enforceability, to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws of general applicability
affecting the rights of creditors and to general principles of equity), Seller has performed all obligations imposed upon it thereunder,
and Seller is not in default thereunder, nor is there any event which with notice or lapse of time, or both, would constitute a default
thereunder. Except as set forth in the Seller Disclosure Schedule, Seller has not received notice that any party to any of the Intellectual
Property Licenses intends to cancel, terminate or refuse to renew the same or to exercise or decline to exercise any option or other
right thereunder. No licenses, sublicenses, covenants
or agreements have been granted or entered into by Seller in respect of any of the Acquired Intellectual Property except the Intellectual
Property Licenses.

    	 	12	 

    	 

    

 

(e)       Seller
has the right to use all trade secrets, customer lists, graphics, logos, illustrations, programming processes, software and other information
incorporated in the Acquired Intellectual Property; to the knowledge of Seller, all trade secrets and other confidential information
of Seller incorporated in the Acquired Intellectual Property are not part of the public domain or publicly known, nor, to the knowledge
of Seller, have they been misappropriated by any Person; and, to the knowledge of Seller, no employee or consultant of Seller has used
or disclosed any trade secrets or other confidential information of any other Person in the course of their work for Seller except under
an obligation to maintain such trade secrets or other confidential information in confidence.

(f)       No
Acquired Intellectual Property or product, technology or service of Seller incorporated therein is subject to any proceeding or outstanding
decree, order, judgment, settlement agreement or stipulation that restricts in any manner the use, transfer or licensing thereof by Seller.
To the knowledge of Seller, no (i) product, technology, service or publication of Seller, or (ii) material published or distributed by
Seller or any statement of Seller, in each case incorporated in the Acquired Intellectual Property, constitutes obscenity, defames any
Person, constitutes false advertising or otherwise violates any applicable law or regulation.

(g)       The
Seller Disclosure Schedule sets forth all Internet domain names used by Seller in connection with the operation or commercial exploitation
of the Gaming Platform. Seller has no knowledge of any third party disputing ownership of any such domain names or alleging infringement
of any rights of any such parties by Seller with respect thereto.

(h)       Each
item of registered Acquired Intellectual Property is valid and subsisting and all necessary registration, maintenance and renewal fees
in connection with such Acquired Intellectual Property have been paid to the extent applicable, and all necessary documents and certificates
in connection with such Acquired Intellectual Property have been filed with the relevant authorities in the United States or foreign
jurisdictions, as the case may be, for the purposes of maintaining such Acquired Intellectual Property. There is no threatened or reasonably
foreseeable loss or expiration of any Acquired Intellectual Property, and the Transactions do not and will not (with notice, the happening
of any event and/or the passage of time or notice) result in the loss or expiration of any license or of any Acquired Intellectual Property
rights of Seller.

(i)       Except
as set forth on the Disclosure Schedules, none of the Acquired Intellectual Property incorporates, includes, uses, is distributed or
otherwise made available or accessible together with, was developed with or is compiled with, linked with or otherwise dependent on any
open source, free software, community source, shareware, freeware or other code licensed under any similar licensing arrangement (“Open
Source Materials”) and there are no current plans to include any Open Source Materials in any of the Acquired Intellectual
Property. The Disclosure Schedules describe the manner in which these Open Source Materials were used in the Acquired Intellectual Property,
including the license under which each of the Open Source Materials is licensed to Seller; whether and how the Open Source Materials
were modified or distributed or otherwise made available or accessible by Seller; and with which Seller Product(s) the
Open Source Materials were used, distributed or otherwise made available or accessible. Seller has complied with all of the requirements
of each license applicable to any Open Source Materials used by it. Except as set forth on the Disclosure Schedules, Seller has not provided
(nor is it obligated to provide, nor will the closing of the transactions under this Agreement obligate it to provide) the source code
for any Acquired Intellectual Property to any other Person. Except as set forth on the Disclosure Schedules, Seller has not, by license,
transfer, escrow or otherwise, permitted any other Person to reverse engineer, disassemble or decompile any Acquired Intellectual Property
to create such source code, except as may be required by law. All copies of any Acquired Intellectual Property consisting of Software
code distributed in connection with Seller’s business have been distributed solely in object code form. There has been no disclosure
of any Acquired Intellectual Property consisting of source code or confidential Software documentation (e.g., functional, system, and
development specifications) by Seller or any of its Affiliates, or to the knowledge of Seller, by any other Person to any third party.
Customers of Seller permitted to use the Acquired Intellectual Property consisting of Software code have done so only through execution
of object code versions. Each Person so permitted by Seller is party to a valid, existing and written license or services agreement enforceable
against such Person with regards thereto.

    	 	13	 

    	 

    

(j)       Seller
has taken all steps that are reasonably required to protect its rights in, and the confidentiality of, the Acquired Intellectual Property
(including trade secret rights) developed by or on behalf of, and all other confidential or proprietary information belonging to, Seller
or provided by any other Person to Seller and incorporated in the Acquired Intellectual Property. Without limiting the foregoing, Seller
has, and enforces, a policy requiring each of its employees, consultants and contractors to execute enforceable proprietary information,
assignment of inventions and confidentiality agreements assigning all rights in any Acquired Intellectual Property to Seller, and all
current and former employees, consultants and contractors of Seller have executed such an agreement. Seller has recorded each such assignment
of any registered Acquired Intellectual Property assigned to Seller with the relevant Governmental Authority in accordance with applicable
laws and regulations in each jurisdiction in which such assignment is required to be recorded. To the knowledge of Seller, no employee
of Seller is obligated under any agreement or commitment, or subject to any judgment, decree or order of any court or administrative
agency, that could interfere with such employee’s duties to Seller with respect to the Acquired Intellectual Property, or that
could conflict with the conduct of Buyer’s use of the Acquired Intellectual Property.

(k)       No
person employed by or affiliated with Seller has used or proposes to use any trade secret or any information or documentation in connection
with the Acquired Intellectual Property that is confidential or proprietary to any other Person. Seller has been and is in compliance
with each confidentiality obligation, use restriction and legal requirement, if any relating to the confidential or proprietary information
of any other Person, including, without limitation, any customers and their vendors, solely in connection with the Acquired Intellectual
Property.

(l)       Seller
has the right to use, pursuant to valid licenses, all software development tools, library functions, compilers and all other third-party
software and hosted services that are used or necessary to create, modify, compile, operate or support the Acquired Intellectual Property
or is incorporated into or otherwise used in the performance of the Acquired Intellectual
Property. Seller owns or has valid licenses for, and possesses, all of the source code for the Acquired Intellectual Property owned,
licensed, distributed, made available or accessible, performed or presently supported by Seller. Seller has taken all actions customary
in the software industry to document the software that is Seller Intellectual Property and its operation, such that such software, including
the source code and documentation, has been written in a clear and professional manner so that it may be understood, modified and maintained
in an efficient manner by reasonably competent programmers certified in the applicable programming languages. For the avoidance of doubt,
the software referred to in the preceding sentence shall include any and all bug tracking, source code management and other information
technology systems that have been programmed, designed or otherwise developed in any way by Seller.

    	 	14	 

    	 

    

(m)       No
government, military or quasi-governmental funding, facilities of a university, college, other educational institution or research center
was used in the development of the Acquired Intellectual Property. To the knowledge of Seller, no current or former employee, consultant
or independent contractor of Seller, who was involved in, or who contributed to, the creation or development of any Acquired Intellectual
Property, has (i) performed services for a Governmental Entity, university, college or other educational institution or research center,
or any other entity or person during a period of time during which such employee, consultant or independent contractor was also performing
services for Seller; or (ii) entered into a contract granting such an entity an exclusive license to any owned Acquired Intellectual
Property.

(n)       Seller’s
rights in and to its Acquired Intellectual Property are free and clear of all liens (other than Permitted Liens). Seller owns all of
the source code for all Acquired Intellectual Property .

(o)       To
the knowledge of Seller, the Software is free from material defects and errors, was coded in well-defined, professional, and workmanlike
manner, and conforms in all material respects to the functional, system, and development specifications for the Travel Search engine.

4.6

No
Brokers or Finders. Any broker, finder or investment banker entitled to any brokerage, finder’s or other fee or commission
in connection with the Transactions will solely be the responsibility of the Seller.

4.7

Investment
and Related Representations.

(a)       No
Registration. Seller is aware that the offer or sale of the Stock Consideration has not been registered under the Securities Act,
or under any state securities law. Seller understands that the Stock Consideration will be characterized as “restricted securities”
under US federal securities laws and that under such laws and applicable regulations such securities may be resold without registration
under the Securities Act only in certain limited circumstances. Seller agrees that he, she or it will not sell all or any portion of
the Stock Consideration, except pursuant to registration under the Securities Act or pursuant to an available exemption from registration
under the Securities Act. Seller understands that each certificate for the shares of Buyer Common Stock issued to Seller or to any subsequent
transferee shall be stamped or otherwise imprinted with the legends set forth below summarizing the restrictions set forth
below and that Buyer shall refuse to transfer the Buyer Common Stock except in accordance with such restrictions:

    	 	15	 

    	 

    

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”).
THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A
CURRENT AND EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT TO SUCH SHARES, OR AN OPINION OF THE ISSUER’S
COUNSEL TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT.

 

(b)       Investment
Representation. This Agreement is made with Buyer in reliance upon Seller’s representation, that the Stock Consideration to
be received by Seller is being acquired pursuant to this Agreement for investment and not with a view to the public resale or distribution
thereof, except pursuant to an effective registration statement or exemption under the Securities Act.

(c)       No
Public Solicitation. Seller is acquiring the Stock Consideration after private negotiation and has not been attracted to the acquisition
of the shares of Buyer Common Stock by any press release, advertising or publication.

(d)       Access
to Information. Seller acknowledges having received and reviewed the reports filed by Buyer with the SEC and acknowledges that any
information contained therein is deemed disclosed by Buyer for purposes of the Buyer Disclosure Schedule as well as any other disclosures
required hereunder.

(e)       Investment
Intent; Ability to Bear Risk to Loss. Seller has not been organized for the purpose of acquiring the Stock Consideration and is acquiring
the Stock Consideration for its own account. Seller acknowledges that it is able to protect its interests in connection with the acquisition
of the Stock Consideration and can bear the economic risk of investment in such securities without producing a material adverse change
in Seller’s financial condition. Seller otherwise has such knowledge and experience in financial or business matters that Seller
is capable of evaluating the merits and risks of the investment in the common stock.

(f)       Investor
Status. Seller is an “accredited investor”, as that term is defined in Regulation D promulgated under the Securities
Act.

 

Article
5

COVENANTS
OF THE PARTIES

5.1

Full
Access. Through the period prior to the Closing, each Party will afford to the other and its directors, officers, managers, members,
employees, counsel, accountants, investment advisors and other authorized representatives and agents, reasonable access to the facilities,
properties, books and records of the Party in order that the other may have full opportunity to make such
investigations as it will desire to make of the affairs of the disclosing Party. Each Party will furnish such additional financial and
operating data and other information as the other will, from time to time, reasonably request, including without limitation access to
the working papers of its independent certified public accountants; provided, however, that any such investigation will
not affect or otherwise diminish or obviate in any respect any of the representations and warranties of the disclosing Party.

    	 	16	 

    	 

    

5.2

Confidentiality.
Each of the Parties hereto agrees that it will not use, or permit the use of, any of the information relating to any other Party hereto
furnished to it in connection with the Transactions (“Information”) in a manner or for a purpose detrimental to such
other Party or otherwise than in connection with the Transactions, and that they will not disclose, divulge, provide or make accessible,
or permit the disclosure of, any of the Information to any person or entity, other than their respective directors, officers, employees,
investment advisors, accountants, counsel and other authorized representatives and agents, except as may be required by judicial or administrative
process or, in the opinion of such Party’s counsel, by other requirements of Law; provided, however, that prior to
any disclosure of any Information permitted hereunder, the disclosing Party will first seek to obtain the recipients’ undertaking
to comply with the provisions of this Section with respect to such information. The term “Information” as used herein
will not include any information relating to a Party that the Party disclosing such information can show: (i) to have been in its possession
prior to its receipt from the other Party hereto without breach of any other confidentiality agreement; (ii) to be generally available
to the public through no fault of the disclosing Party; (iii) to have been available to the public at the time of its receipt by the
disclosing Party without breach of any confidentiality agreement; (iv) to have been received separately by the disclosing Party in an
unrestricted manner from a person entitled to disclose such information; or (v) to have been developed independently by the disclosing
Party without regard to any information received in connection with this transaction. Each Party hereto also agrees to promptly return
to the Party from whom it originally received such information all original and duplicate copies of written materials containing Information
should the Transactions not occur. A Party hereto will be deemed to have satisfied its obligations to hold the Information confidential
if it exercises the same care as it takes with respect to its own similar information.

5.3

Further
Assurances; Cooperation; Notification. At any time after the Closing, at the reasonable request of either Party and without further
consideration, the Party that is the subject of the request will execute and deliver such instruments of sale, transfer, conveyance,
assignment and confirmation and take such action as the requesting Party may reasonably deem necessary or desirable in order to more
effectively consummate the Transactions.

5.4

Satisfaction
of Conditions Precedent. Each Party will use commercially reasonable efforts to satisfy or cause to be satisfied all the conditions
precedent that are applicable to them, and to cause the Transactions to be consummated, and, without limiting the generality of the foregoing,
to obtain all material consents and authorizations of third parties and to make filings with, and give all notices to, third parties
that may be necessary or reasonably required on its part in order to effect the Transactions.

 

    	 	17	 

    	 

    

Article
6

INDEMNIFICATION

 

6.1

Seller
Indemnification. Seller shall, for a period of one year after the Closing, defend, indemnify and hold harmless all Buyer Entities,
their successors and assigns, and the respective directors, officers, shareholders, employees, and agents of all Buyer Entities and their
successors and assigns, from and against any and all claims, losses, liabilities, obligations, damages, expenses, demands, suits, judgments,
penalties, and costs of any kind whatsoever, including reasonable attorneys’ fees and expenses, arising from or attributable to
(i) Seller’s breach of any representation, warranty or agreement of Seller set forth in this Agreement, or in any agreement or
instrument executed and delivered by Seller in connection with this Agreement; (ii) any third-party claim arising from the Acquired Assets
or the Transactions (relating to periods and events occurring prior to the Closing Date but regardless of when such claim is made); (iii)
any court, administrative or bankruptcy proceeding involving Seller or otherwise relating to this Agreement; or (iv) fraud or willful
misconduct of Seller or its directors, officers, Affiliates, representatives or employees in connection with the Transactions. In no
event shall the total value of all aggregate claims against Seller exceed the Purchase Price.

 

6.2

Buyer
Indemnification. Buyer shall, for a period of one year after the Closing, defend, indemnify and hold harmless all Seller Entities,
their successors and assigns, and the respective directors, officers, shareholders, employees, and agents of all Seller Entities and
their successors and assigns, from and against any and all claims, losses, liabilities, obligations, damages, expenses, demands, suits,
judgments, penalties, and costs of any kind whatsoever, including reasonable attorneys’ fees and expenses, arising from or attributable
to (i) Buyer’s breach of any representation, warranty or agreement of Buyer set forth in this Agreement, or in any agreement or
instrument executed and delivered by Buyer in connection with this Agreement; (ii) any third-party claim arising from the Acquired Assets
or the Transactions (relating to periods and events occurring prior to the Closing Date but regardless of when such claim is made); (iii)
any court, administrative or bankruptcy proceeding involving Buyer or otherwise relating to this Agreement; or (vi) fraud or willful
misconduct of Buyer or its directors, officers, Affiliates, representatives and employees in connection with the Transactions.

6.3

Third
Party Claims. If either Party becomes aware of any claim or assertion by a third party that may give rise to a claim for indemnification
under Section 6.1 or 6.2, such Party shall promptly notify the other Party, provided, however, that no delay on the part
of any Party seeking indemnification (i.e., the indemnified Party) in providing such notice shall relieve the indemnifying Party from
any obligation hereunder unless (and then solely to the extent) the indemnifying Party is thereby actually prejudiced.

 

6.4

Settlement.
The indemnifying Party shall not have the right, as part of any settlement to adversely affect any of the indemnified Party’s rights
under this Agreement, to limit in any way the indemnified Party’s course of doing business (including in each case where the indemnified
Party is Buyer the right of Buyer to use and exploit any of Seller Intellectual Property in any way deemed desirable by Buyer) or to
bind the indemnified Party in any way without the express written consent of the indemnified Party. An indemnified Party shall cooperate
at the indemnifying Party’s expense in the defense of a third-party claim.

 

    	 	18	 

    	 

    

6.5

Survival.
All rights of the parties under this Section 6 shall survive the expiration or termination of this Agreement.

 

Article
7

CONDITIONS TO THE OBLIGATIONS OF BUYER

Notwithstanding
any other provision of this Agreement to the contrary, the obligation of Buyer to effect the Transactions will be subject to the satisfaction
at the Closing, or waiver by Buyer, of each of the following conditions:

 

7.1

Representations
and Warranties True. The representations and warranties of Seller contained in this Agreement, including without limitation in the
Seller Disclosure Schedule delivered to Buyer, will be true, complete and accurate in all material respects as of the Closing Date.

7.2

Performance.
Seller will have performed and complied in all material respects with all agreements, covenants, obligations and conditions required
by this Agreement to be performed or complied with by Seller on or prior to the Closing.

7.3

Required
Approvals and Consents.

(a)       All
action required by law and otherwise to be taken by Seller to authorize the execution, delivery and performance of this Agreement and
the consummation of the Transactions will have been duly and validly taken.

(b)       All
Consents of or from all Authorities required hereunder to consummate the Transactions, will have been delivered, made or obtained, and
Buyer will have received copies thereof.

(c)       The
Company’s stockholders shall have approved the terms of this Agreement and the issuance of the Stock Consideration in accordance
with all applicable rules of NASDAQ (“Stockholder Approval”).

 

7.4

No
Proceeding or Litigation. No suit, action, investigation, inquiry or other proceeding by any Authority or other person or entity
will have been instituted or threatened which delays or questions the validity or legality of the Transactions or which, if successfully
asserted, would, in the reasonable judgment of Buyer, individually or in the aggregate, otherwise have a Material Adverse Effect on the
Acquired Assets or prevent or delay the consummation of the Transactions.

7.5

Legislation.
No Law will have been enacted that prohibits, restricts or delays the consummation of the Transactions or any of the conditions to the
consummation thereof.

7.6

Appropriate
Documentation. Buyer will have received, in a form and substance reasonably satisfactory to Buyer, dated the Closing Date, all certificates
and other documents, instruments and writings to evidence the fulfillment of the conditions set forth in this Article 7 as Buyer
may reasonably request.

    	 	19	 

    	 

    

 

Article
8

CONDITIONS TO THE OBLIGATIONS OF SELLER

Notwithstanding
anything in this Agreement to the contrary, the obligations of Seller to effect the Transactions will be subject to the satisfaction
at or prior to the Closing, or waiver by Seller, of each of the following conditions:

 

8.1

Representations
and Warranties True. The representations and warranties of Buyer contained in this Agreement, including without limitation in the
Seller Disclosure Schedule delivered to Seller, will be true, complete and accurate in all material respects as of the Closing Date.

8.2

Performance.
Buyer will have performed and complied in all material respects with all agreements, covenants, obligations and conditions required by
this Agreement to be performed or complied with by Buyer at or prior to the Closing.

8.3

Required
Approvals and Consents.

(a)       All
action required by law and otherwise to be taken by the Buyer to authorize the execution, delivery and performance of this Agreement
and the consummation of the Transactions will have been duly and validly taken.

(b)       All
Consents of or from all Authorities required hereunder to consummate the Transactions, will have been delivered, made or obtained, and
Seller will have received copies thereof.

8.4

Agreements
and Documents. Seller will have received the following agreements and documents delivered by Buyer contemporaneously with the execution
and delivery of this Agreement, each of which will be in full force and effect:

a
certificate of active status of Buyer from the State of Nevada and any other states where Buyer is qualified to do business, as of the
most recent practicable date.

8.5

No
Proceeding or Litigation. No suit, action, investigation, inquiry or other proceeding by any Authority or other person or entity
will have been instituted or threatened which delays or questions the validity or legality of the Transactions or which, if successfully
asserted, would, in the reasonable judgment of Seller, individually or in the aggregate, otherwise have a Material Adverse Effect on
Buyer’s business, financial condition, prospects, assets or operations or prevent or delay the consummation of the Transactions.

8.6

Legislation.
No Law will have been enacted which prohibits, restricts or delays the consummation of the Transactions or any of the conditions to the
consummation thereof.

8.7

Appropriate
Documentation. Seller will have received, in a form and substance reasonably satisfactory to Seller, dated the Closing Date, all
certificates and other documents, instruments and writings to evidence the fulfillment of the conditions set forth in this Article
8 as Seller may reasonably request.

    	 	20	 

    	 

    

8.8

Buyer
Board Approval. Seller acknowledges and agrees that Buyer’s obligations under this Agreement and the consummation of the
Transactions shall be subject to Buyer’s obtaining the approval of Buyer’s board of directors. Buyer shall provide written
notice to Seller promptly upon obtaining approval of Buyer’s board of directors. If Buyer does not provide notice of approval of
Buyer’s board of directors to Seller within two (2) business days after the date hereof, Buyer shall be deemed not to have obtained
the approval of its board of directors, and Buyer and Seller each shall have the right to terminate this Agreement by providing written
notice to the other Party, in which case the Parties shall have no further rights or obligations under this Agreement, except those which
expressly survive such termination. Notwithstanding the foregoing, if Buyer provides notice of approval of Buyer’s board of directors
to Seller after the expiration of such two (2) business day period and prior to the termination of this Agreement by Seller pursuant
to this Section 8.8, then neither Buyer nor Seller thereafter shall have the right to terminate this Agreement pursuant to this
Section 8.8.

NASDAQ
Notice of Additional Shares. Buyer shall have submitted to NASDAQ a listing of additional shares form covering the Stock Consideration
and Buyer shall use commercially reasonable efforts to facilitate the approval by NASDAQ of such filing.

8.10

Delivery
of Stock Consideration. Buyer shall have transferred the Stock Consideration to a book entry account with Colonial Stock Transfer
& Trust Company, LLC in the name of and for the benefit of the Seller in order to effectively vest in Seller its right, title and
interest in and to the Stock Consideration.

 

Article
9

MISCELLANEOUS
PROVISIONS

 

9.1

Survival
of Representations, Warranties and Covenants. All of the representations, warranties and covenants in this Agreement shall survive
the Closing.

9.2

Expenses.
Except as set forth in the following sentence, Buyer and Seller will each bear their own costs and expenses relating to the Transactions,
including without limitation, fees and expenses of legal counsel, accountants, investment bankers, brokers or finders, printers, copiers,
consultants or other representatives for the services used, hired or connected with the Transactions.

9.3

Amendment
and Modification. This Agreement may be amended or modified only by mutual agreement of Buyer and Seller. All such amendments and
modifications to this Agreement must be in writing duly executed by all of the Parties hereto.

9.4

Waiver
of Compliance; Consents. Any failure of a Party to comply with any obligation, covenant, agreement or condition herein may be expressly
waived in writing by Buyer, on the one hand, and Seller, on the other, but such waiver or failure to insist upon strict compliance with
such obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other
failure. No single or partial exercise of a right or remedy will preclude any other or further exercise thereof or of any other right
or remedy hereunder.

    	 	21	 

    	 

    

Whenever
this Agreement requires or permits the consent by or on behalf of a Party, such consent will be given in writing in the same manner as
for waivers of compliance.

9.5

Third
Party Beneficiaries. Nothing in this Agreement will entitle any person or entity other than a Party hereto and his, her or its respective
successors and assigns permitted hereby to rely upon any of the representations or warranties contained herein or to any claim, cause
of action, remedy or right of any kind.

9.6

Notices.
All notices, requests, demands and other communications required or permitted hereunder will be made in writing and will be deemed to
have been duly given and effective: (i) on the date of delivery, if delivered personally; or (ii) on the date of transmission, if sent
by facsimile, telecopy, telegraph, telex or other similar telegraphic communications equipment, or to such other person or address as
a Party will furnish to the other Party hereto in writing in accordance with this subsection.

 

(a)       If
to Buyer:

NextPlay
Technologies Inc.

1560
Sawgrass Corporate Parkway -Suite 130

Sunrise,
Florida 33323

Attention:
Bill Kerby

Phone:
888-777-3333

Email:
bill.kerby@nextplaytechnologies.com

 

or
to such other person or address as Buyer will furnish to the other Parties hereto in writing in accordance with this subsection.

 

(b)       
if to Seller:

 

Fighter
Base Publishing Inc.

10315
E Shangri La Rd, Scottsdale AZ 85260

Attention:
Mark Vange

Phone:
480-270-4646

Email:
mvange@fighterbase.net

 

or
to such other person or address as Seller will furnish to the other Parties hereto in writing in accordance with this subsection.

 

9.7

Assignment.
This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the Parties hereto and their respective
successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder will be assigned
(whether voluntarily, involuntarily, by operation of law or otherwise) by any Party hereto without the prior written consent of the other
Party.

9.8

Counterparts.
This Agreement may be executed simultaneously in one or more counterparts, including facsimile transmissions, each of which will be deemed
an original, but all of which together will constitute one and the same instrument.

    	 	22	 

    	 

    

9.9 

Headings.
The headings of the sections and subsections of this Agreement are inserted for convenience only and will not constitute a part hereof.

9.10

Entire
Agreement. This Agreement, the schedules, the Disclosure Schedules and the exhibits and other writings referred to in this Agreement
or in the Disclosure Schedules or any such exhibit or other writing are part of this Agreement, together they embody the entire Agreement
and understanding of the Parties hereto in respect of the Transactions and together they are referred to as this “Agreement”
or the “Agreement.” There are no restrictions, promises, warranties, agreements, covenants or undertakings, other
than those expressly set forth or referred to in this Agreement. This Agreement supersedes all prior agreements and understandings between
the Parties with respect to the Transactions. Provisions of this Agreement will be interpreted to be valid and enforceable under applicable
Law to the extent that such interpretation does not materially alter this Agreement, provided, however, that if any such provision becomes
invalid or unenforceable under applicable Law such provision will be stricken to the extent necessary and the remainder of such provisions
and the remainder of this Agreement will continue in full force and effect.

9.11

Remedies
and Injunctive Relief. It is expressly agreed among the Parties hereto that monetary damages would be inadequate to compensate a
Party hereto for any breach by any other Party of the confidentiality obligations in Section 5.2 hereof. Accordingly, the Parties
agree and acknowledge that any such violation or threatened violation will cause irreparable injury to the other and that, in addition
to any other remedies which may be available, such Party will be entitled to injunctive relief against the threatened breach of Section
5.2 hereof or the continuation of any such breach without the necessity of proving actual damages and may seek to specifically enforce
the terms thereof.

9.12

Governing
Law. This Agreement and the rights and obligations of the Parties hereto shall be governed by and construed under the laws of the
State of Florida, without respect to its conflict of law principles.  The Parties hereto agree that, in any suit, action, or
proceeding based in tort or in contract brought by any of the parties hereto in connection with any matters whatsoever arising out of,
under, or in connection with the terms of this Agreement, each of the parties hereto shall and do hereby waive trial by jury to the fullest
extent permitted by law, and that the prevailing party in any such action shall recover from the other party all reasonable attorneys’
fees, costs and expenses incurred through trial and all levels of appeal. In addition, the parties hereto irrevocably: (a) agree that
venue for any suit, action, or proceeding of any nature whatsoever arising out of, or in any way connected with, this Agreement shall
lie exclusively in the federal courts whose districts encompass any part of Southern District of Florida (Fort Lauderdale Division) or
the state courts of the State of Florida sitting in Broward County and the City of Ft. Lauderdale in connection with any dispute arising
under this Agreement, (b) waive, to the fullest extent permitted by law, any objection which they may have to the laying of venue in
the above-described courts, and (c) waive any claim, defense, or objection that any suit, action or proceeding brought in any of the
above-described has been brought in an inconvenient forum. Each of the parties hereto hereby accepts and irrevocably consents to the
personal and subject matter jurisdiction of the state and federal courts described in clause (a) above in any suit, action or proceeding
arising out of, or in any way connected with this Agreement. 

 

[Balance
of Page Intentionally Left Blank]

 

    	 	23	 

    	 

    

       IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	 	 	 
	 	NextPlay Technologies Inc., as Buyer
	 	 	 
	 	By:	 	/s/
    Bill Kerby

	 	Name:	 	Bill Kerby 
	 	Title:	 	Chief
    Executive Officer

     

 

	 	 

     

    Mark
    Vange On behalf Fighter Base Publishing Inc as Seller 

	 	 	 
	 	By:	 	/s/
    Mark Vange

	 	Name:	 	Mark Vange
	 	Title:	 	Chief Executive Officer

 

 

 

 

 

    	 	24acy_ex101.htm

EXHIBIT 10.1
  
 THIS PLAN SPONSOR AGREEMENT IS NOT AN OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF VOTES WITH RESPECT TO A CHAPTER 11 PLAN OF REORGANIZATION. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE. ACCEPTANCES OR REJECTIONS WITH RESPECT TO A CHAPTER 11 PLAN OF REORGANIZATION MAY NOT BE SOLICITED UNTIL A DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT.
  
 PLAN SPONSOR AGREEMENT
  
 This PLAN SPONSOR AGREEMENT (as amended, supplemented, or otherwise modified from time to time together with all exhibits attached hereto and incorporated herein, this “Agreement”), dated as of August 16, 2021, is entered into by and among AeroCentury Corp. (“AeroCentury”), JetFleet Holding Corp. (“JHC)”, and JetFleet Management Corp. (“JMC,” and collectively with AeroCentury and JHC, the “Debtors”) and Yucheng Hu, Hao Yang, Jing Li, Yeh Ching, Yu Wang, TongTong Ma, Qiang Zhang, Yanhua Li, and Yiyi Huang (collectively, the “Plan Sponsor”). The Debtors and the Plan Sponsor are referred to herein as the “Parties” and individually as a Party. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Plan (as defined below).
  
 RECITALS
  
 WHEREAS, on March 29, 2021, the Debtors commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (the “Bankruptcy Code”), which are being jointly administered under the caption In re AeroCentury Corp., et al., Case No. 21-10636 (JTD) (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”);
  
 WHEREAS, the Debtors filed a Combined Disclosure Statement and Joint Chapter 11 Plan of AeroCentury Corp., and its Affiliated Debtors dated July 14, 2021 (the “Plan,” as it may be altered, amended, modified or supplemented from time to time including in accordance with any documents submitted in support thereof and the Bankruptcy Code or the Bankruptcy Rules) [Docket No. 225];
  
 WHEREAS, the Bankruptcy Court approved the Plan on an interim basis for solicitation purposes only pursuant to the Solicitation Procedures Order [Docket No. 222];
  
 WHEREAS, the Plan consists of a toggle between (i) the Sponsored Plan, which, pursuant to the terms of the Plan Sponsor Agreement, the Debtors, and the Plan Sponsor will agree to a restructuring of the Debtors’ businesses that will be implemented through the Sponsored Plan (collectively, the “Restructuring Transactions”) and (ii) the Stand-Alone Plan, whereby the Debtors’ remaining Assets will vest in the Post-Effective Date Debtors and be monetized by the Plan Administrator;
  
 	 
	1
	

	 

  
 WHEREAS, in connection with the Chapter 11 Cases and the Plan, AeroCentury and Plan Sponsor have engaged in good faith, arm’s length negotiations regarding the terms of the proposed Restructuring Transactions;
  
 WHEREAS, the Debtors filed a Notice of Selection of Plan Sponsor on August 9, 2021 [Docket No. 254], which included as Exhibit A an Investment Term Sheet between AeroCentury and Plan Sponsor dated as of August 9, 2021 (the “Term Sheet”), setting forth the principal terms of an investment by Plan Sponsor into AeroCentury to be implemented pursuant to the Plan; and
  
 WHEREAS, the Parties desire to express to each other their mutual support and commitment in respect of the matters discussed in the Term Sheet, this Agreement, and the Plan.
  
 AGREEMENT
  
 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Party, intending to be legally bound hereby, agrees as follows: 
  
 1. Exhibits Incorporated by Reference. Each of the exhibits attached hereto is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include the exhibits hereto. In the event of any inconsistency between this Agreement and the exhibits attached hereto, this Agreement (without reference to such exhibits) shall govern.
  
 2. Definitive Documents. The definitive documents governing the Restructuring Transactions shall consist of the following and any other material document contemplated by the Parties needed or utilized to implement, govern, or consummate the Restructuring Transactions (collectively, the “Definitive Documents”):
  
 (a) the disclosure statement (and all exhibits and other documents and instruments related thereto) with respect to the Plan (the “Disclosure Statement”);
  
 (b) the Securities Purchase Agreement attached as Exhibit A hereto (as may be further amended, supplemented, or otherwise modified in accordance with its terms, the “SPA”) and all schedules, annexes, and exhibits thereto, the Common Stock Purchase Agreement attached as Exhibit B hereto (as may be further amended, supplemented, or otherwise modified in accordance with its terms, the “CSPA”) and all schedules, annexes, and exhibits thereto, Series A Preferred Stock Purchase Agreement attached as Exhibit C hereto (as may be further amended, supplemented, or otherwise modified in accordance with its terms, the “SAPSPA”) and all schedules, annexes, and exhibits thereto, and Series B Preferred Stock Purchase Agreement attached as Exhibit D hereto (as may be further amended, supplemented, or otherwise modified in accordance with its terms, the “SBPSPA”) and all schedules, annexes, and exhibits thereto (collectively, the “Commitment Documents”);
  
 	 
	2
	

	 

  
 (c) the order approving on an interim basis the Disclosure Statement, including the form of ballots and other solicitation materials in respect of the Plan (the “Solicitation Procedures Order” and, such solicitation materials, the “Solicitation Materials”);
  
 (d) the Plan, Plan Supplement, and all documents, annexes, schedules, exhibits, amendments, modifications, or supplements thereto, or other documents contained therein, including any schedules of assumed or rejected contracts;
  
 (e) the order confirming the Plan (the “Confirmation Order”) and any pleadings filed by the Debtors in support of the Bankruptcy Court’s entry of the Confirmation Order;
  
 (f) the new organizational or other governance documents of the Reorganized Debtors; and
  
 (g) any employment agreements relating to any executive officer of the Reorganized Debtors.
  
 The Definitive Documents not executed or not in a form attached to this Agreement as of the Effective Date remain subject to negotiation and, upon completion, all Definitive Documents shall (a) reflect and contain the terms and conditions consistent with this Agreement and (b) otherwise be in form and substance acceptable to the Debtors and the Plan Sponsor.
  
 3. Milestones. The following milestones (the “Milestones”) shall apply to this Agreement, which in each case can be extended in writing by the Parties (with confirmation of any extension by electronic mail among counsel being sufficient for such purposes):
  
 (a) by no later than September 10, 2021, the Bankruptcy Court shall have entered the Confirmation Order; and
  
 (b) by no later than September 30, 2021, the Effective Date of the Plan shall have occurred (the “Effective Date Deadline”).
  
 4. Term Sheet. The Term Sheet is incorporated herein by reference and to the extent of any obligations of the Parties set forth therein, such obligations shall be binding obligations of the Parties subject to the terms thereof. 
  
 5. Commitments of the Parties.
  
 (a) The Debtors agree that they shall:
  
 (i) (A)(1) support and work diligently towards the completion of the Restructuring Transactions set forth in this Agreement, (2) negotiate in good faith all Definitive Documentation that is subject to negotiation as of the effective date of this Agreement and take any and all reasonable actions in furtherance of the Plan and this Agreement, (3) take all commercially reasonable actions necessary to complete the Restructuring Transactions set forth in the Plan, (4) make commercially reasonable efforts to obtain any and all required regulatory and third-party approvals necessary to consummate the Restructuring Transactions, if any, and (5) support and take such actions as are necessary or appropriate or reasonably requested by Plan Sponsor in furtherance of the Restructuring Transactions in accordance with, and within the time frames contemplated by, this Agreement; and (B) shall not undertake any action materially inconsistent with the adoption and implementation of the Plan and the confirmation thereof, including, without limitation, filing any motion to reject this Agreement.
  
 	 
	3
	

	 

  
 (ii) afford Plan Sponsor and its respective attorneys, consultants, accountants, and other authorized representatives access, upon reasonable notice during normal business hours, and at other reasonable times, to the properties, books, contracts, commitments, records, management personnel, and advisors of the Debtors that are reasonably requested to consummate the Restructuring Transactions (but in no event, shall the Debtors be required to provide access to any materials that are protected by the attorney-client, work-product or other protective privilege). In addition, the Debtors shall promptly notify Plan Sponsor of any material developments with respect to the Debtors’ business, the Chapter 11 Cases, or otherwise.
  
 (iii) as to themselves and their subsidiaries, after the date of entry into this Agreement and prior to the Plan Effective Date, and except as required by applicable law:
  
 (A) Provide the Plan Sponsor with two (2) business days’ notice prior to entering into any proposed new contracts and agreements involving individual commitments of more than $25,000;
  
 (B) Provide the Plan Sponsor with two (2) business days’ notice prior to entering into any agreement for the sale or encumbrance of any assets between the date of this Agreement and the Plan Effective Date in excess of $25,000 for any single transaction or $50,000 for any series of related transactions (it being understood that the Plan Sponsor has already been provided notice of and information regarding the sales pending in and/or executed during the Chapter 11 Cases); 
  
 (C) Use commercially reasonable efforts to maintain all of the assets and properties in their current condition, ordinary wear and tear excepted;
  
 (D) Maintain insurance upon all of the assets and properties of the Debtors in such amounts and of such kinds comparable to that in effect on the date of this Agreement; 
  
 (E) (1) Use commercially reasonable efforts to maintain the books, accounts and records of the Debtors in the ordinary course of business, (2) continue to collect accounts receivable and pay accounts payable utilizing reasonable procedures and without discounting or accelerating payment of such accounts, and (3) use commercially reasonable efforts to comply with all contractual and other obligations applicable to the operation of the Debtors; 
  
 (F) Comply in all material respects with applicable laws; 
  
 	 
	4
	

	 

  
 (G) The Debtors shall only submit tax returns and otherwise conduct their affairs with respect to tax matters in consultation with the Plan Sponsor; and the Debtors shall not (without Plan Sponsor’s prior written consent) make or rescind any election relating to taxes, settle or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit, or controversy relating to taxes, or, except as may be required by applicable law or GAAP, make any material change to any of the Debtors’ methods of accounting or methods of reporting income or deductions for tax or accounting practice or policy from those employed in the preparation of its most recent tax returns; 
  
 (H) The Debtors shall not, without the prior written consent of Plan Sponsor, (1) materially increase the annual level of compensation of any employee of the Debtors, (2) increase the annual level of compensation payable or to become payable by the Debtors to any of the Debtors’ executive officers, (3) grant any unusual or extraordinary bonus, benefit, or other direct or indirect compensation to any employee, director, or consultant, (4) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus, or other incentive compensation, insurance, pension, or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, employees, agents, or representatives of the Debtors or otherwise modify or amend or terminate any such plan or arrangement or (v) enter into any employment, deferred compensation, severance, consulting, non-competition, or similar agreement (or amend any such agreement) to which the Debtors are a party or involving a director, officer, or employee of the Debtors in his or her capacity as a director, officer or employee of the Debtors, provided, however, for the sake of clarity nothing in this Agreement shall restrict the Debtors’ ability to honor its existing employment practices and policies, including, but not limited to, payment of ordinary course salary and benefits, and, upon termination of employment, severance and other end-of-employment benefits, all of which have been disclosed to the Plan Sponsor; and 
  
 (I) The Debtors shall not cancel or compromise any debt or claim or waive or release any material right of the Debtors except in the ordinary course of business. For the avoidance of doubt, the foregoing shall not limit the Debtors’ ability to resolve, fix, settle, compromise, object to, or allow any claim in the Chapter 11 Cases with the approval of the Bankruptcy Court or in accordance with the Plan.
  
 (b) The Plan Sponsor agrees that they shall: 
  
 (i) (A)(1) support and work diligently towards the completion of the Restructuring Transactions set forth in this Agreement, (2) negotiate in good faith all Definitive Documentation that is subject to negotiation as of the effective date of this Agreement and take any and all reasonable actions in furtherance of the Plan and this Agreement, (3) take all commercially reasonable actions necessary to complete the Restructuring Transactions set forth in the Plan, (4) make commercially reasonable efforts to obtain any and all required regulatory and third-party approvals necessary to consummate the Restructuring Transactions, if any, and (5) support and take such actions as are necessary or appropriate or reasonably requested by the Debtors in furtherance of the Restructuring Transactions in accordance with, and within the time frames contemplated by, this Agreement; and (B) shall not undertake any action materially inconsistent with the adoption and implementation of the Plan and the confirmation thereof, including, without limitation, filing any motion to reject this Agreement.
  
 	 
	5
	

	 

  
 (ii) provide the Debtors with information satisfactory to the Debtors, in their reasonable discretion, that the Plan Sponsor shall have adequate financial means to consummate the Restructuring Transactions, including, but not limited to, providing proof of funds to consummate the Restructuring Transactions.
  
 6. Mutual Representations and Warranties. Each Party, severally and not jointly, represents and warrants to the other Parties that the following statements are true and correct as of the Effective Date, subject in the case of the Debtors to any required approval by the Bankruptcy Court:
  
 (a) Existence; Power and Authority; and Authorization. If such Party is an entity, (i) such Party is validly existing and in good standing under the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to enter into this Agreement and perform such Party’s obligations under this Agreement and (ii) the execution and delivery of this Agreement and the performance of such Party’s obligations under this Agreement have been duly authorized by all necessary corporate action on such Party’s part;
  
 (b) No Conflict. The execution, delivery, and performance by such Party of this Agreement does not and will not (i) violate any provision of law, rule, or regulation applicable to it or, if such Party is an entity, any of its subsidiaries or its charter or bylaws (or other similar governing documents) or those of any of its subsidiaries or (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it or, if such Party is an entity, any of its subsidiaries is a party;
  
 (c) No Consent or Approval. The execution, delivery, and performance by such Party of this Agreement does not and will not require any registration or filing with, consent or approval of, or notice to, or other action, with or by, any federal, state, or other governmental authority or regulatory body, except such filings (i) as may be necessary or required by the U.S. Securities and Exchange Commission or (ii) with respect to the Plan Sponsor, that are set forth in SPA; and
  
 (d) Enforceability. This Agreement is the legally valid and binding obligation of such Party, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability or a ruling of the Bankruptcy Court.
  
 	 
	6
	

	 

  
 7. Termination Events. 
  
 (a) This Agreement shall automatically terminate three (3) business days after delivery of written notice to the other Party (in accordance with Section 21) from (i) the Debtors at any time after the occurrence and during the continuance of any Debtors Termination Event or (ii) Plan Sponsor at any time after the occurrence and during the continuance of any Plan Sponsor Termination Event. In addition, this Agreement shall terminate automatically on the Plan Effective Date without any further required action or notice.
  
 (i) “Plan Sponsor Termination Event” shall mean any of the following:
  
 (A) the breach in any material respect by the Debtors of any of the undertakings, representations, warranties, or covenants of the Debtors set forth herein that would prevent and result in a material adverse effect on the consummation of the Plan in accordance with this Agreement that remains uncured for a period of five (5) business days after the receipt of written notice of such breach to the Debtors;
  
 (B) the Debtors file Definitive Documentation in a form not reasonably acceptable to Plan Sponsor, or make any amendments, modifications, exhibits, or supplements thereto, in a manner that adversely affects Plan Sponsor without the consent of Plan Sponsor or except as otherwise permitted by this Agreement;
  
 (C) the Debtors withdraw the Plan or publicly announce the Debtors’ intention to not support the Plan, or propound, or otherwise support any chapter 11 plan other than the Plan;
  
 (D) the Confirmation Order is not entered in form and substance reasonably satisfactory to Plan Sponsor, it being understood and agreed that Plan Sponsor will act reasonably and commercially in considering any modifications to the Confirmation Order requested or required by the Bankruptcy Court and other parties in interest;
  
 (E) the Debtors seek, pursue, support, or do not oppose an order to be entered by the Bankruptcy Court or a court of competent jurisdiction either converting the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code or dismissing the Chapter 11 Cases;
  
 (F) the Debtors seek, pursue, support, or do not oppose an order of the Bankruptcy Court seeking appointment, in respect of the Debtors, a trustee, a responsible officer, or an examiner with enlarged powers (i.e., powers beyond those set forth in subclauses (3) and (4) of section 1106(a)) under section 1106(b) of the Bankruptcy Code);
  
 (G) this Agreement is waived, modified, amended, or supplemented in any way, except by mutual agreement of, and in a writing signed by, the Debtors and the Plan Sponsor; or
  
 	 
	7
	

	 

  
 (H) the Bankruptcy Court grants relief that is inconsistent with this Agreement or the Plan in any material respect, except if such relief is granted pursuant to a motion by the Plan Sponsor (or with the consent of the Plan Sponsor); provided, however, that the failure to obtain confirmation of the Plan and/or the occurrence of the Effective Date shall not constitute a Plan Sponsor Termination Event pursuant to this Section 7(a)(viii) unless such failure is the result of any Plan Sponsor Termination Event identified in Section 7(a)(i)-(vii).
  
 (ii) “Debtors Termination Event” shall mean any of the following: 
  
 (A) the breach in any material respect by Plan Sponsor of any of the undertakings, representations, warranties, or covenants of Plan Sponsor set forth herein that would result in a material adverse effect on the consummation of a Plan in accordance with this Agreement that remains uncured for a period of five (5) business days after the receipt of written notice of such breach; 
  
 (B) the Plan Sponsor shall have failed to provide the Debtors with information required by Section 5(b)(ii);
  
 (C) the Plan Sponsor makes any amendments, modifications, exhibits, or supplements to the Definitive Documentation, in a manner that adversely affects the Debtors without the consent of the Debtors or except as otherwise permitted by this Agreement;
  
 (D) the Plan Sponsor advises the Debtors or publicly announces its intention to not support the Plan;
  
 (E) this Agreement is waived, modified, amended, or supplemented in any way, except by mutual agreement of, and in a writing signed by, the Debtors and the Plan Sponsor; 
  
 (F) the Bankruptcy Court denies confirmation of the Plan; or
  
 (G) any governmental authority or regulatory body having authority blocks the purchase of the New ACY Shares or does not otherwise grant any approval required in connection with the purchase of the New ACY Shares.
  
 (b) Mutual Termination. This Agreement may be terminated by mutual agreement of the Parties.
  
 	 
	8
	

	 

  
 (c) Effect of Termination. Subject to the last sentence of this Section 7(c) and Section 9, upon the termination of this Agreement in accordance with this Section, this Agreement shall become void and of no further force or effect and each Party shall be immediately released from its respective liabilities, obligations, commitments, undertakings, and agreements under or related to this Agreement, shall have no further rights, benefits, or privileges hereunder, and shall have all the rights and remedies that it would have had and shall be entitled to take all actions, whether with respect to the Restructuring Transactions or otherwise, that it would have been entitled to take had it not entered into this Agreement and no such rights or remedies shall be deemed waived pursuant to a claim of laches or estoppel; provided that in no event shall any such termination relieve a Party from liability for its breach or non-performance of its obligations hereunder before the date of such termination. Except as set forth herein, if the transactions contemplated hereby are not consummated, or if this Agreement is terminated for any reason, the Parties fully reserve any and all of their rights. In the event this Agreement as a result of any Debtors Termination Event specified in Section 7(a)(ii)(A), (B), (C), or (D), the Deposit shall be retained by the Debtors as liquidated damages and irrevocably forfeited by the Plan Sponsor. In the event of a termination pursuant to any other subpart of Section 7, the Deposit shall be returned to the Plan Sponsor.
  
 (d) Automatic Stay. The Debtors acknowledge that the giving of notice of termination by any Party pursuant to this Agreement shall not be a violation of the automatic stay of section 362 of the Bankruptcy Code; provided that nothing herein shall prejudice any Party’s rights to argue that the giving of notice of termination was not proper under the terms of this Agreement.
  
 8. Amendments and Waivers. Except as otherwise expressly set forth herein, this Agreement may not be waived, modified, amended, or supplemented except in a writing signed by each Party.
  
 9. Break-Up Fee. If after the Effective Date the Bankruptcy Court approves an exit financing transaction for AeroCentury with a party other than the Plan Sponsor (an “Alternative Transaction”) then AeroCentury shall pay Plan Sponsor, upon the closing of such Alternative Transaction, in addition to the return of the Deposit, a breakup fee equal to USD$1,000,000. 
  
 10. Effectiveness. Subject to approval by the Bankruptcy Court, this Agreement shall become effective and binding upon each Party upon the execution and delivery by such Party of an executed signature page hereto.
  
 11. Governing Law; Jurisdiction; Wavier of Jury Trial.
  
 (a) This Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the laws of the State of Delaware, without giving effect to the conflict of laws principles thereof. The Parties irrevocably agree that any legal action, suit, or proceeding (each, a “Proceeding”) arising out of or relating to this Agreement brought by any Party or its successors or assigns shall be brought and determined in the Bankruptcy Court or, if the Bankruptcy Court shall not then have jurisdiction, in any federal or state court in New Castle County, Delaware (the “Delaware Courts”), and the Parties hereby irrevocably and generally submit to the exclusive jurisdiction of the Delaware Courts and any court to which appeals from the Delaware Courts may be adjudicated for themselves and with respect to their property, and unconditionally with respect to any Proceeding arising out of or relating to this Agreement and the Restructuring. The Parties agree not to commence any Proceeding relating hereto or thereto except in the Delaware Courts, other than Proceedings in any court of competent jurisdiction to enforce any judgment, decree, or award rendered by any Delaware Court. The Parties further agree that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument that such service is insufficient. The Parties hereby irrevocably and unconditionally waive and agree not to assert that a Proceeding in any Delaware Court is brought in an inconvenient forum or the venue of such Proceeding is improper. Notwithstanding the foregoing, during the pendency of the Chapter 11 Case, all Proceedings contemplated by this Section 11 shall exclusively be brought in the Bankruptcy Court and no other forum.
  
 	 
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 (b) The Parties hereby waive, to the fullest extent permitted by applicable law, any right they may have to a trial by jury in any Proceeding directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby (whether based on contract, tort or any other theory).
  
 12. Good Faith Cooperation; Further Assurances. Each Party hereby covenants and agrees to cooperate with each other in good faith in connection with, and shall exercise commercially reasonable efforts with respect to, the pursuit, approval, implementation, and consummation of the Restructuring Transactions, as well as the negotiation, drafting, execution, and delivery of the Definitive Documentation. Subject to the terms hereof, the Parties shall take such action as may be reasonably necessary or reasonably requested by any Party to carry out the purposes and intent of this Agreement, and shall refrain from taking any action that would frustrate the purposes and intent of this Agreement.
  
 13. Independent Analysis. Each Party hereby confirms that its decision to execute this Agreement has been based upon its independent assessment of documents and information available to it, as it has deemed appropriate.
  
 14. Debtors’ Fiduciary Obligations. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement, the Plan, or anything included in any Definitive Document shall require any Debtor or any board of directors, board of managers, or similar governing body of any Debtor, after consulting with counsel, to take any action or to refrain from taking any action with respect to this Agreement, the Plan, or the Restructuring Transactions to the extent taking or failing to take such action would be inconsistent with applicable law or its fiduciary obligations under applicable law, and any such action or inaction pursuant to such exercise of fiduciary duties shall not be deemed to constitute a breach of this Agreement; provided that the Debtors shall give prompt written notice to counsel to the Plan Sponsor (electronic mail among counsel being sufficient) of any determination made under this Section.
  
 15. Survival. Notwithstanding the termination of this Agreement pursuant to Section 7, [Section[s] *] shall survive such termination and shall continue in full force and effect in accordance with the terms hereof; provided that any liability of a Party for failure to comply with the terms of this Agreement shall survive such termination.
  
 16. Headings. The headings of the sections, paragraphs, and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof or, for any purpose, be deemed a part of this Agreement.
  
 	 
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 17. Successors and Assigns; Severability. This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors, permitted assigns, heirs, executors, administrators, and representatives. If any provision of this Agreement, or the application of any such provision to any person or entity or circumstance, shall be held invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of such provision hereof and this Agreement shall continue in full force and effect. Upon any such determination of invalidity, the Parties shall negotiate in good faith to modify this Agreement so as to effectuate the original intent of the Parties as closely as possible in a reasonably acceptable manner so that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. No assignment of this Agreement or of any rights or obligations hereunder may be made by any Party (by operation of law or otherwise) without the prior written consent of the other parties hereto and any attempted assignment without the required consents shall be void. 
  
 18. Relationship Among Parties. Unless expressly stated herein, this Agreement shall be solely for the benefit of the Parties and no other person or entity shall be a third-party beneficiary hereof. No Party shall have any responsibility for the transfer, sale, purchase, or other disposition of securities by any other entity by virtue of this Agreement. No prior history, pattern, or practice of sharing confidences among the Parties shall in any way affect or negate this understanding and agreement. The Parties have no agreement, arrangement, or understanding with respect to acting together for the purpose of acquiring, holding, voting, or disposing of any securities of the Company and do not constitute a “group” within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, as amended.
  
 19. Prior Negotiations; Entire Agreement. This Agreement, including the exhibits and schedules hereto (including the Term Sheet), constitutes the entire agreement of the Parties, and supersedes all other prior negotiations regarding the subject matters hereof and thereof.
  
 20. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same agreement. Execution copies of this Agreement delivered by facsimile or PDF shall be deemed to be an original for the purposes of this paragraph.
  
 21. Notices. All notices hereunder shall be deemed given if in writing and delivered, if contemporaneously sent by electronic mail, facsimile, courier, or by registered or certified mail (return receipt requested) to the following addresses and facsimile numbers or such other addresses of which notice is given pursuant hereto:
  
 (a) if to the Plan Sponsor to be delivered in care of the Investor Representative (as defined in the SPA) to:
  
 Yucheng Hu
 Floor 7 Suite AB, Yuanyang Guangha
 International Chaoyang District
 Beijing, China
 Email: huyucheng@me.com
  
 	 
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 or at such other address as the Investor Representative shall have furnished to the Debtors with a copy to (which copy shall not constitute notice):
  
 Lewis Brisbois Bisgaard & Smith LLP
 2020 West El Camino Avenue, Suite 700
 Sacramento, CA 95833 
 Attn: John P. Yung
 Facsimile: 916.564.5444
 Email: John.yung@lewisbrisbois.com
  
 (c) if to the Debtors, to:
  
 AeroCentury Corp., et al.
 1440 Chapin Avenue, Suite 310
 Burlingame, California 92618
 Attention: Harold M. Lyons
 Email: hal.lyons@aerocentury.com
  
 or at such other address as the Debtors shall have furnished to the Investor Representative (as defined in the SPA) with a copy to (which copy shall not constitute notice):
  
 Young Conaway Stargatt & Taylor, LLP 
 Rodney Square 
 1000 N. King Street 
 Wilmington, DE 19801 
 Attention: Joseph Barry, Craig D. Grear, and Joseph Mulvihill 
 Facsimile: (302)576-3296 
 Email: jbarry@ycst.com
            cgrear@ycst.com
            jmulvihill@ycst.com
  
 22. No Solicitation; Adequate Information. This Agreement is not and shall not be deemed to be a solicitation for consents to the Plan. The votes of the holders of claims against the Company will not be solicited until such holders who are entitled to vote on the Plan have received the Plan, Disclosure Statement, related ballots, and other required Solicitation Materials. In addition, this Agreement does not constitute an offer to issue or sell securities to any person or entity, or the solicitation of an offer to acquire or buy securities, in any jurisdiction where such offer or solicitation would be unlawful.
  
 23. Business Day Convention. Any reference to “business day” means any day, other than a Saturday, Sunday or a legal holiday (as that term is defined in Bankruptcy Rule 9006(a)).
  
 24. Interpretation; Rules of Construction; Representation by Counsel. When a reference is made in this Agreement to a Section, Exhibit, or Schedule, such reference shall be to a Section, Exhibit, or Schedule, respectively, of or attached to this Agreement unless otherwise indicated. Unless the context of this Agreement otherwise requires, (a) words using the singular or plural number also include the plural or singular number, respectively, (b) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (c) the words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation,” and (d) the word “or” shall not be exclusive and shall be read to mean “and/or.” The Parties agree that they have been represented by legal counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding, or rule of construction providing that ambiguities in an agreement or other document shall be construed against the party drafting such agreement or document.
  
 [Remainder of Page Intentionally Left Blank]
  
 	 
	12
	

	 

  
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their respective duly authorized officers, solely in their respective capacity as officers of the undersigned and not in any other capacity, as of the date first set forth above.
  
 	 	 DEBTORS
	
	  
	  
	  

	  
	 AeroCentury Corp. 
	  

	 	 	 	 
		By:	/s/ Harold M. Lyons	
	  
	 Name: 
	Harold M. Lyons	 
	 	Title:	Sr. V.P. Finance	 
	 	 	 	 
	  
	 JetFleet Holding Corp. 
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Harold M. Lyons
	  

	  
	 Name: 
	 Harold M. Lyons
	  

	  
	 Title:
	 Sr. V.P. Finance
	  

	  
	  
	  
	  

	  
	 JetFleet Management Corp. 
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Harold M. Lyons
	  

	  
	 Name: 
	 Harold M. Lyons
	  

	  
	 Title:
	 Sr. V.P. Finance
	  

   
 [SIGNATURE PAGE TO PLAN SPONSOR AGREEMENT]
  
 	 
	
	

	 

  
 	 	 PLAN SPONSORS
	
	 	 	 	 
		By:	/s/ Yucheng Hu	
	  
	  
	 Yucheng Hu 
	 
	 	 		 
	 	By:	/s/ Hao Yang	 
	  
	  
	 Hao Yang 
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Jing Li
	  

	  
	  
	 Jing Li
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Yeh Ching
	  

	  
	  
	 Yeh Ching 
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ You Wang
	  

	  
	  
	 Yu Wang 
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ TongTong Ma
	  

	  
	  
	 TongTong Ma
	  

	  
	  
	  
	  

	  
	 By:
	 Oiang Zhang
	  

	  
	  
	 Qiang Zhang 
	  

	  
	  
	  
	  

	  
	 By:
	 Yanhua Li
	  

	  
	  
	 Yanhua Li 
	  

	  
	  
	  
	  

	  
	 By:
	 Yiyi Huang 
	  

	  
	  
	 Yiyi Huang
	  

  
 [SIGNATURE PAGE TO PLAN SPONSOR AGREEMENT]

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