Document:

Australis Capital Inc. - Exhibit 10.1 - Filed by newsfilecorp.com

THIS INVESTMENT AGREEMENT made
as of the 31st day of January, 2019. 

AMONG: 

AUSTRALIS CAPITAL INC., a
corporation formed under the laws of Alberta, Canada 
(“Australis”)

– and – 

BODY AND MIND INC., a
corporation formed under the laws of Nevada, USA 
(“BaM”) 

WHEREAS

	A. 	
      Australis wishes to subscribe for and purchase from BaM,
      and BaM has agreed to issue and sell to Australis, 1,768,545 Common Shares
      (as defined herein) of BaM at a price of $0.585 per Common
  Share.

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the respective promises, covenants, representations,
warranties, indemnities and agreements herein contained and for other good and
valuable consideration (the receipt and sufficiency of which are expressly
acknowledged), the Parties (as defined herein) covenant and agree as follows:

ARTICLE 1 
INTERPRETATION 

Definitions 

1.1                   
In this Agreement, including the recitals hereto, unless the context otherwise
requires, the following words and phrases will have the meanings specified
below:

	 	(a) 	
      “Applicable Laws” means, in relation to any
      person, property, transaction or event, all applicable provisions of (i)
      any federal, provincial, state or local laws, statutes, rules and
      regulations, and (ii) orders, judgments, decisions and official directives
      of Governmental Authorities to which the person is a party or by which it
      is bound or having application to the property, transaction or event, as
      the case may be;

	 	 	 
	 	(b) 	
      “Applicable Securities Laws” means, collectively,
      and as the context may require, the securities legislation having
      application and the rules, policies, notices and orders issued by
      securities regulatory authorities having application in the
      circumstances;

	 	 	 
	 	(c) 	
      “Australis” means Australis Capital
Inc.;

	 	 	 
	 	(d) 	
      “BaM” means Body and Mind Inc.;

	 	 	 
	 	(e) 	
      “Board” means the board of directors of
  BaM;

	 	 	 
	 	(f) 	
      “Business Day” means any day, other than a
      Saturday, Sunday or statutory holiday in Vancouver, British
    Columbia;

- 2 - 

	 	(g) 	
      “Closing” means the completion of the issue and
      sale of the Purchased Securities as provided herein;

	 	 	 
	 	(h) 	
      “Closing Date” means the date of the Closing, to
      be on or about January 31, 2019, or such other date as may be agreed to
      between BaM and Australis;

	 	 	 
	 	(i) 	
      “Commissions” has the meaning given to it in
      Section 4.2;

	 	 	 
	 	(j) 	
      “Common Share” means one common share in the share
      capital of BaM;

	 	 	 
	 	(k) 	
      “CSE” means the Canadian Securities
    Exchange;

	 	 	 
	 	(l) 	
      “Financing” means the non-brokered private
      placement of the Purchased Securities under the terms of this
      Agreement;

	 	 	 
	 	(m) 	
      “Governmental Authority” means: (i) any federal,
      provincial, state, county, municipal or local government or governmental
      body, including any department, agency, commission, board or other
      authority thereof, exercising any statutory, regulatory, expropriation or
      taxing authority; (ii) any quasi-governmental body acting under the valid
      authority of any of the foregoing; and (iii) any domestic, foreign or
      international judicial, quasi-judicial or administrative court, tribunal,
      commission, board, panel or arbitrator having competent jurisdiction over
      BaM;

	 	 	 
	 	(n) 	
      “Hazardous Substances” has the meaning given to it
      in Section 3.1(r);

	 	 	 
	 	(o) 	
      “Material Adverse Effect” means a fact,
      circumstance, change or event that (individually or in the aggregate with
      all such other facts, circumstances, changes or events) is materially
      adverse to the business, operations, results of operations, cash flow,
      revenue, assets, liabilities, obligations (whether absolute, accrued,
      conditional or otherwise) or condition (financial or otherwise) of BaM and
      its subsidiaries on a consolidated basis, other than a change, event,
      violation, inaccuracy or circumstance:

	 	(i) 	
      relating to the global economy or securities markets in
      general;

	 	 	 
	 	(ii) 	
      resulting from conditions affecting the cannabis industry
      as a whole;

	 	 	 
	 	(iii) 	
      resulting from general economic, financial, currency
      exchange, securities or commodity market conditions in Canada;
or

	 	 	 
	 	(iv) 	
      resulting from the rate at which Canadian dollars or
      United States dollars can be exchanged for any foreign
  currency;

	 	(p) 	
      “Parties” means BaM and Australis,
      collectively;

	 	 	 
	 	(q) 	
      “PCMLTFA” has the meaning given to it in Section
      4.1(t);

	 	 	 
	 	(r) 	
      “Permits” has the meaning given to it in Section
      3.1(t);

	 	 	 
	 	(s) 	
      “Public Record” means information which has been
      publicly filed at www.sedar.com by BaM under Applicable Securities
      Laws;

	 	 	 
	 	(t) 	
      “Purchase Price” has the meaning given to it in
      Section 2.1;

- 3 - 

	 	(u) 	
      “Purchased Securities” means the Common Shares
      purchased by Australis pursuant to this
Agreement;

	 	(v) 	
      “Subscriptions Funds” means the funds representing
      the Purchase Price;

	 	 	 
	 	(w) 	
      “Transfer Agent” means New Horizon Transfer
      Agency, the transfer agent for BaM;

	 	 	 
	 	(x) 	
      “U.S. Person” has the meaning ascribed to such
      term in Rule 902(k) of Regulation S under the U.S. Securities Act;
    and

	 	 	 
	 	(y) 	
      “U.S. Securities Act” means the United States
      Securities Act of 1933, as amended.

Interpretation 

1.2                   
Unless the context otherwise requires, the following provisions will govern the
interpretation of this Agreement: 

	 	(a) 	
      the terms “in writing” or “written” include printed or
      typewritten communications or any electronic means of communication by
      which words are capable of being visually reproduced at a distant point of
      reception, including by facsimile;

	 	 	 
	 	(b) 	
      “this Agreement”, “hereto”, “herein”, “hereby”,
      “hereunder”, “hereof” and similar expressions refer to this Agreement as a
      whole, and not to any particular Article, Section or other subdivision
      hereof, and includes each and every instrument varying, amending,
      modifying or supplementing this Agreement;

	 	 	 
	 	(c) 	
      the division of this Agreement into Articles, Sections
      and other subdivisions and the insertion of headings are for convenience
      of reference only and will not affect the construction or interpretation
      of this Agreement; and

	 	 	 
	 	(d) 	
      unless otherwise specified all dollar amounts referred to
      in this Agreement are in lawful money of Canada.

ARTICLE 2 
PURCHASE PRICE 

Purchase Price 

2.                  
1 Subject to the terms and conditions set forth herein, Australis hereby
subscribes for and agrees to purchase from BaM, and BaM hereby accepts the
subscription and agrees to issue and sell to Australis, 1,768,545 Common Shares
at a price of $0.585 per Common Share for an aggregate purchase price of
$1,034,598.82 (the “Purchase Price”). 

- 4 - 

ARTICLE 3 
REPRESENTATIONS, WARRANTIES

AND COVENANTS OF BAM 

Representations and Warranties of BaM 

3.1                   
BaM represents and warrants to Australis, as at the Closing Date, and
acknowledges that Australis is relying upon such representations and warranties
in entering into this Agreement, as follows: 

	 	(a) 	
      BaM is a valid and subsisting corporation under the laws
      of the state of Nevada and is qualified or registered to transact business
      in each jurisdiction in which failure to be so qualified or registered
      would reasonably be expected to constitute a Material Adverse
    Effect;

	 	 	 
	 	(b) 	
      BaM has the corporate power and capacity to enter into
      this Agreement and to perform all of its obligations hereunder. The
      execution and delivery of this Agreement, and the consummation by BaM of
      the transactions hereunder, has been duly authorized by all necessary
      corporate action on the part of BaM (including the approval of the Board)
      and no other proceedings on the part of BaM are or will be necessary to
      authorize this Agreement or the transactions contemplated
  hereunder;

	 	 	 
	 	(c) 	
      this Agreement has been duly executed and delivered by
      BaM and is a legal, valid and binding obligation of BaM, enforceable
      against BaM in accordance with its terms, subject to applicable bankruptcy
      or similar laws affecting enforcement of creditors’ rights generally and
      to the extent that equitable remedies such as specific performance and
      injunction are in the discretion of the court from which they are
      sought;

	 	 	 
	 	(d) 	
      BaM has the power and authority to issue and deliver the
      Common Shares;

	 	 	 
	 	(e) 	
      each of the execution and delivery of this Agreement and
      all documents contemplated hereunder, the performance by BaM of its
      obligations hereunder or thereunder, the issue and sale of the Purchased
      Securities hereunder and the consummation of the transactions contemplated
      hereby do not and will not conflict with or result in a breach or
      violation of any of the terms or provisions of, or constitute a default
      under (whether after notice or lapse of time or both), (i) any statute,
      rule or regulation applicable to BaM, including Applicable Securities
      Laws; (ii) the constating documents or resolutions of BaM which are in
      effect at the date hereof; (iii) any debt instrument, material agreement,
      mortgage, indenture, contract, agreement, instrument, lease or other
      document to which BaM is a party or by which it is bound; or (iv) any
      judgment, decree or order binding BaM or the property or assets of
    BaM;

	 	 	 
	 	(f) 	
      the Purchased Securities issued at Closing, when paid for
      in accordance with the provisions of this Agreement will be duly and
      validly issued as fully paid and non-assessable Common Shares in the
      capital of BaM;

	 	 	 
	 	(g) 	
      to BaM’s knowledge, (i) there is no civil,
      administrative, regulatory, criminal or investigative action or
      proceeding, or arbitration or other dispute settlement procedure, pending
      or threatened against BaM by or before any Governmental Authority; and
      (ii) no event has occurred that would reasonably be expected to give rise
      to any such action, proceeding or procedure where the same would in each
      case reasonably be expected to constitute a Material Adverse
  Effect;

- 5 - 

	 	(h) 	
      there is no judgment, decree, award or order of any
      Governmental Authority outstanding against (and binding upon) BaM that has
      or is reasonably expected to constitute a Material Adverse Effect or which
      prohibits or materially impairs the conduct of BaM’s business as currently
      conducted;

	 	 	 
	 	(i) 	
      to the best of the knowledge of BaM, no person, firm or
      corporation acting or purporting to act at the request of BaM is entitled
      to any brokerage, agency or finder’s fee in connection with the
      transactions described herein;

	 	 	 
	 	(j) 	
      BaM is a “reporting issuer” in the provinces of British
      Columbia and Ontario and the Common Shares are listed on the CSE under the
      symbol “BAMM”;

	 	 	 
	 	(k) 	
      as of the date hereof, the authorized capital of BaM
      consists of 900,000,000 Common Shares with a par value of $0.0001, of
      which 68,479,141 Common Shares are issued and outstanding as fully paid
      and non-assessable. Additionally, the Company has a commitment to issue an
      aggregate of 282,000 Common Shares and an aggregate of 2,909,091
      convertible debentures, 22,900,660 share purchase warrants and 6,075,000
      stock options outstanding, as previously disclosed to Australis and,
      except as disclosed in the Public Record, no person has any right,
      agreement or option, present or future, contingent or absolute, or any
      right capable of becoming such a right, agreement or option, pre-emptive,
      contractual or otherwise, for the issue or allotment of any unissued
      shares in the capital of BaM or any other security convertible into or
      exchangeable for any such shares, or to require BaM to purchase, redeem or
      otherwise acquire any of the issued and outstanding shares in its capital
      other;

	 	 	 
	 	(l) 	
      the Public Record complies in all material respects with
      the requirements of Applicable Securities Laws;

	 	 	 
	 	(m) 	
      the Public Record and all financial, marketing, sales and
      operational information provided to Australis are true and correct in all
      material respects and do not contain any misrepresentations (as such term
      is defined in the Applicable Securities Laws);

	 	 	 
	 	(n) 	
      the financial statements filed with the Commissions or
      supplied by BaM have been prepared in accordance with Canadian generally
      accepted accounting principles, international financial reporting
      standards or in conformity with accounting principles generally accepted
      in the United States of America, as applicable; contain no
      misrepresentations; present fairly, fully and correctly, in all material
      respects, the financial position and all material liabilities (accrued,
      absolute, contingent or otherwise) of BaM, as of the date thereof; and
      there have been no adverse material changes (as defined in Applicable
      Securities Laws) in the financial position of BaM since the date thereof
      and the business of BaM has been carried on in the usual and ordinary
      course consistent with past practice since the date thereof;

	 	 	 
	 	(o) 	
      the auditors of BaM who audited the financial statements
      of BaM for the most recent financial year-end and who provided their audit
      report thereon are independent public accountants as required under
      Applicable Securities Laws and there has never been a reportable event
      (within the meaning of National Instrument 51-102) with the present
      auditors of BaM;

	 	 	 
	 	(p) 	
      BaM has complied and will comply fully with the
      requirements of all applicable corporate and securities laws and
      administrative policies and directions, including, without
    limitation, the Applicable Securities Laws in relation to the issue
      and trading of its securities and in all matters relating to the
  Financing;

- 6 - 

	 	(q) 	
      other than in respect of certain United States federal
      laws relating to the cultivation, distribution or possession of marijuana
      in the United States as disclosed in the continuous disclosure documents
      of BaM, BaM is in compliance in all material respects with all applicable
      laws in the jurisdictions in which it carries on business and which may
      materially affect BaM, has not received a notice of non-compliance, nor
      knows of, nor has reasonable grounds to know of, any facts that could give
      rise to a notice of non-compliance with any such laws, regulations and
      statutes, and is not aware of any pending change or contemplated change to
      any applicable law or regulation or governmental position that would
      materially affect the business of BaM or the business or legal environment
      under which BaM operates;

	 	 	 
	 	(r) 	
      BaM has not caused or permitted the release, in any
      manner whatsoever, of any pollutants, contaminants, chemicals or
      industrial toxic or hazardous waste or substances (collectively, the
      “Hazardous Substances”) on or from any of its properties or assets
      nor has it received any notice that it is potentially responsible for a
      clean-up site or corrective action under any applicable laws, statutes,
      ordinances, by-laws, regulations, or any orders, directions or decisions
      rendered by any government, ministry, department or administrative
      regulatory agency relating to the protection of the environment,
      occupational health and safety or otherwise relating to dealing with
      Hazardous Substances;

	 	 	 
	 	(s) 	
      all operations conducted by BaM on the properties of BaM
      have been conducted and are currently conducted in all material respects
      in accordance with good engineering practices and any applicable material
      workers’ compensation, and health, safety and workplace laws, regulations
      and policies;

	 	 	 
	 	(t) 	
      BaM has all licences, permits, approvals, consents,
      certificates, registrations and other authorizations (collectively the
      “Permits”) under all applicable laws and regulations, other than in
      respect of certain United States federal laws relating to the cultivation,
      distribution or possession of marijuana in the United States as disclosed
      in the continuous disclosure documents of BaM, necessary for the operation
      of the businesses carried on or proposed to be commenced by BaM and each
      Permit is valid, subsisting and in good standing and BaM is not in default
      or breach in any material respect of any Permit, and to the best of the
      knowledge of BaM, no proceeding is pending or threatened to revoke or
      limit any Permit;

	 	 	 
	 	(u) 	
      to BaM’s knowledge, information and belief, none of the
      directors or officers of BaM is or has been ever been subject to prior
      regulatory, criminal or bankruptcy proceedings in Canada or
    elsewhere;

	 	 	 
	 	(v) 	
      there is not presently, and will not be until the
      Closing, any material change or change in any material fact relating to
      BaM which has not been disclosed to the public;

	 	 	 
	 	(w) 	
      to the best of BaM’s knowledge, BaM is not in default in
      the observance of performance of any terms, covenant, obligation to be
      performed by BaM, under any material instrument, document, agreement, or
      arrangement (including memorandums of understanding or joint venture
      agreements) to which BaM or its subsidiaries is a party or otherwise bound
      and all such material instruments, contracts, agreements, or arrangements
      (including memorandums of understanding or joint venture agreements) are
      in good standing and no event has occurred which with notice or lapse of time or
      both would constitute such a default by BaM or, to the best of BaM’s
      knowledge, any other party;

- 7 - 

	 	(x) 	
      BaM is not a party to any actions, suits or proceedings
      which could materially affect its business or financial condition, and to
      the best of BaM’s knowledge no such actions, suits or proceedings are
      contemplated or have been threatened;

	 	 	 
	 	(y) 	
      there are no judgments against BaM which are unsatisfied,
      nor are there any consent decrees or injunctions to which BaM is
      subject;

	 	 	 
	 	(z) 	
      no order ceasing, halting or suspending trading in
      securities of BaM nor prohibiting the sale of such securities has been
      issued to and is outstanding against BaM or, to the knowledge of BaM, any
      of its directors, officers or promoters or against any other companies
      that have common directors, officers or promoters and to the knowledge of
      BaM no investigations or proceedings for such purposes are pending or
      threatened;

	 	 	 
	 	(aa) 	
      BaM has filed, or is in the process of filing, all
      federal, provincial, local and foreign tax returns which are required to
      be filed, or have requested extensions thereof, and has or intends to pay
      all taxes required to be paid by BaM, including its subsidiaries and any
      other assessment, fine or penalty levied against BaM and/or its
      subsidiaries, or any amounts due and payable to any governmental
      authority, to the extent that any of the foregoing is due and
    payable;

	 	 	 
	 	(bb) 	
      BaM has established on its books and records reserves
      which are adequate for the payment of all taxes not yet due and payable
      and there are no liens for taxes on the assets of BaM, except for taxes
      not yet due, and there are no audits of any of the tax returns of which
      are known by BaM’s management to be pending, and there are no claims which
      have been or may be asserted relating to any such tax returns which, if
      determined adversely, would result in the assertion by any governmental
      agency of any deficiency which would have a material adverse effect on the
      properties, business or assets of BaM;

	 	 	 
	 	(cc) 	
      BaM owns or possesses adequate rights to use all material
      patents, trademarks, service marks, trade names, copyrights, trade
      secrets, information, proprietary rights and other intellectual property
      necessary for the business of BaM now conducted to the knowledge of BaM,
      without any conflict with or infringement of the rights of others. BaM has
      received no communication alleging that BaM has violated or, by conducting
      its business as proposed, would violate any of the patents, trademarks,
      service marks, trade names, copyrights or trade secrets or other
      proprietary rights of any other person or entity;

	 	 	 
	 	(dd) 	
      BaM does not have any loans or other indebtedness
      outstanding which has been made to any of its shareholders, officers,
      directors or employees, past or present, or any person not dealing at
      “arm’s length” (as such term is used in the Income Tax Act
      (Canada));

	 	 	 
	 	(ee) 	
      BaM will not take any action which would be reasonably
      expected to result in the delisting or suspension of its common shares on
      or from the CSE or on or from any stock exchange, market or trading or
      quotation facility on which its common shares are listed or quoted and BaM
      will comply, in all material respects, with the rules and regulations
      thereof; and

	 	 	 
	 	(ff) 	
      BaM has and will have filed all documents that are
      required to be filed under the continuous disclosure provisions of the
      Applicable Securities Laws, including annual
and interim financial information and
annual reports, press releases disclosing material changes and material change
reports. 

- 8 - 

ARTICLE 4 
REPRESENTATIONS, WARRANTIES

AND COVENANTS OF AUSTRALIS 

Representations, Warranties and Covenants of Australis

4.1                   
Australis represents and warrants to BaM, as at the Closing Date, and covenants
with BaM, and acknowledges that BaM is relying upon such representations,
warranties and covenants in entering into this Agreement, as follows. 

	 	(a) 	
      Australis is a valid and subsisting corporation under the
      laws of Alberta, Canada;

	 	 	 
	 	(b) 	
      Australis is neither a U.S. Person nor subscribing for
      the Purchased Securities for the account of a U.S. Person or for resale in
      the United States and Australis confirms that the Common Shares have not
      been offered to Australis and that this Agreement has not been signed in
      the United States;

	 	 	 
	 	(c) 	
      the Common Shares have not been and will not be
      registered under the U.S. Securities Act and may not be offered or sold in
      the United States or to any U.S. Person, except pursuant to applicable
      exemptions from United States federal and state registration
      requirements;

	 	 	 
	 	(d) 	
      Australis has the corporate power and capacity to enter
      into this Agreement and to perform all of its obligations hereunder. The
      execution and delivery of this Agreement and the consummation by Australis
      of the transactions hereunder have been duly authorized by all necessary
      corporate action on the part of Australis;

	 	 	 
	 	(e) 	
      this Agreement has been duly executed and delivered by
      Australis and is a legal, valid and binding obligation of Australis,
      enforceable against Australis in accordance with its terms, subject to
      applicable bankruptcy or similar laws affecting enforcement of creditors’
      rights generally and to the extent that equitable remedies such as
      specific performance and injunction are in the discretion of the court
      from which they are sought;

	 	 	 
	 	(f) 	
      each of the execution and delivery of this Agreement and
      all documents contemplated hereunder, the performance by Australis of its
      obligations hereunder or thereunder and the consummation of the
      transactions contemplated hereby, do not and will not conflict with or
      result in a breach or violation of any of the terms or provisions of, or
      constitute a default under (whether after notice or lapse of time or
      both), (i) any statute, rule or regulation applicable to Australis; (ii)
      the constating documents or resolutions of Australis which are in effect
      at the date hereof; (iii) any debt instrument, material agreement,
      mortgage, indenture, contract, agreement, instrument, lease or other
      document to which Australis is a party or by which it is bound; or (iv)
      any judgment, decree or order binding Australis or the property or assets
      thereof;

	 	 	 
	 	(g) 	
      Australis is purchasing the Purchased Securities as
      principal within the meaning of Applicable Securities Laws, for its own
      account and not for the benefit of any other
person, for investment only and not with a view to the resale or
  distribution of all or any of the Purchased Securities;

- 9 - 

	 	(h) 	
      Australis is resident in the Province of British Columbia
      and the Purchased Securities have an acquisition cost to Australis of not
      less than C$150,000, payable in cash at Closing, and Australis was not
      created and is not being used solely to purchase or hold securities in
      reliance on the prospectus exemptions provided under Section 2.10 of NI
      45-106, it pre- existed the Financing and has a bona fide purpose other
      than investment in the Purchased Securities;

	 	 	 
	 	(i) 	
      Australis acknowledges that no securities commission,
      agency, Governmental Authority, stock exchange or other regulatory body
      has reviewed or passed on the merits of the Purchased Securities and there
      are risks associated with the purchase of the Purchased
  Securities;

	 	 	 
	 	(j) 	
      Australis acknowledges that the certificates representing
      the Purchased Securities will bear the following
legends:

“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “U.S. SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS.
THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES
ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION
OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR
OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE U.S. SECURITIES ACT AND SUCH LAWS. THE SECURITIES
REPRESENTED BY THE CERTIFICATEHEREBY CANNOT BE THE SUBJECT OF HEDGING
TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S.
SECURITIES ACT. 

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
[FOUR MONTHS PLUS ONE DAY FROM THE CLOSING DATE]” 

	 	(k) 	
      Other than 20,311,243 Common Shares, Australis does not
      currently hold, directly or indirectly, any other securities of
  BaM;

	 	 	 
	 	(l) 	
      Australis is able to bear economic risk of loss of its
      investments in the Financing;

	 	 	 
	 	(m) 	
      Australis is not in possession of any material
      information concerning BaM that has not generally been
disclosed;

	 	 	 
	 	(n) 	
      Australis understands the political, economic and other
      business risks of its investment, including the fact that cannabis is
      currently registered as a Schedule 1 drug under the Controlled Substances
      Act in the United States of America;

	 	 	 
	 	(o) 	
      Australis is not acting jointly or in concert with any
      other person in connection with its purchase of securities of BaM, and is
      not a party to any agreement, commitment or understanding with any other person for the acquisition
      or holding of securities of BaM, whether by BaM, such other person, or
  other third party;

- 10 - 

	 	(p) 	
      Australis acknowledges that there are restrictions under
      Applicable Securities Laws on Australis’s ability to resell the Common
      Shares and that it has been advised to consult its own legal advisors with
      respect to the particulars of such resale restrictions, and that it is
      Australis’s sole responsibility to find out what those restrictions are
      and to comply with them;

	 	 	 
	 	(q) 	
      Australis has not taken any action which will or may
      result in BaM, or any its directors, officers, employees or agents
      breaching any regulatory or legal requirements of any jurisdiction in
      connection with the purchase and sale of the Purchased Securities
      hereunder;

	 	 	 
	 	(r) 	
      Australis acknowledges that there may be material tax
      consequences to Australis from the purchase of the Purchased Securities
      under Canadian federal, provincial or local laws or foreign laws, and BaM
      makes no representations regarding the tax consequences to
    Australis;

	 	 	 
	 	(s) 	
      to the best of the knowledge of Australis, this
      subscription for Purchased Securities has not been made through or as a
      result of, and the distribution of Purchased Securities is not being
      accompanied by, any form of advertisement, including, without limitation,
      in printed public media, radio, television, internet or
      telecommunications, including electronic display, or as part of a general
      solicitation;

	 	 	 
	 	(t) 	
      none of the funds Australis is using to purchase the
      Purchased Securities are, to the knowledge of Australis, proceeds obtained
      or derived, directly or indirectly, as a result of illegal activities. The
      funds being used to purchase the Purchased Securities which will be
      advanced by Australis to BaM hereunder will not represent proceeds of
      crime for the purposes of the Proceeds of Crime (Money Laundering) and
      Terrorist Financing Act (Canada) (the “PCMLTFA”) and Australis
      acknowledges that BaM may in the future be required by law to disclose
      Australis's name and other information relating to this Agreement and
      Australis’s subscription hereunder, on a confidential basis, pursuant to
      the PCMLTFA. To the best of Australis's knowledge (i) none of the funds to
      be provided by Australis are being tendered on behalf of a person who has
      not been identified to Australis, and (ii) Australis will promptly notify
      BaM if Australis discovers that any of such representations cease to be
      true, and to provide BaM with appropriate information in connection
      therewith;

	 	 	 
	 	(u) 	
      to the best of the knowledge of Australis, no person,
      firm or corporation is entitled to any brokerage, agency or finder’s fee
      in connection with the transactions described herein, except as disclosed
      to BaM; and

	 	 	 
	 	(v) 	
      Australis acknowledges that no prospectus has been filed
      by BaM with any securities commission or similar authority, in connection
      with the issuance of the Purchased Securities, and the issuance and the
      sale of the Purchased Securities is subject to such sale being exempt from
      the prospectus requirements under Applicable Securities Laws and
      accordingly:

	 	(i) 	
      Australis is restricted from using certain civil remedies
      available under such legislation;

	 	(ii) 	
      Australis may not receive information that might
      otherwise be required to be provided to it under such legislation;
    and

	 	 	 
	 	(iii) 	
      BaM is relieved from certain obligations that would
      otherwise apply under such legislation.

- 11 - 

Privacy 

4.2                   
Australis provides its consent to the disclosure of personal information by BaM
to the CSE, to the British Columbia Securities Commission and to any other
applicable securities regulatory authorities (the “Commissions”), BaM’s
registrar and transfer agent, legal counsel and any other party involved in the
purchase and sale of the Purchased Securities for the following purposes; 

	 	(a) 	
      internal use with respect to managing the relationships
      between and contractual obligations of BaM and Australis;

	 	 	 
	 	(b) 	
      indirect collection of personal information and queries
      by the Commissions;

	 	 	 
	 	(c) 	
      use and disclosure to BaM’s transfer agent and
      registrar;

	 	 	 
	 	(d) 	
      use and disclosure for income tax related purposes,
      including without limitation, where required by law, disclosure to Canada
      Revenue Agency or United States Internal Revenue Services;

	 	 	 
	 	(e) 	
      disclosure to securities regulatory authorities and other
      regulatory bodies with jurisdiction with respect to reports of trade and
      similar regulatory filings;

	 	 	 
	 	(f) 	
      disclosure to a governmental or other authority to which
      the disclosure is required by court order or subpoena compelling such
      disclosure and where there is no reasonable alternative to such
      disclosure;

	 	 	 
	 	(g) 	
      disclosure to professional advisers of BaM in connection
      with the performance of their professional services;

	 	 	 
	 	(h) 	
      disclosure to any person where such disclosure is
      necessary for legitimate business reasons and is made with the Australis’
      prior written consent;

	 	 	 
	 	(i) 	
      disclosure to a court determining the rights of the
      parties under this Agreement; or

	 	 	 
	 	(j) 	
      for use and disclosure as otherwise required or permitted
      by law.

4.3                   
In addition, Australis acknowledges that BaM will file with the Commissions
Forms 45-106F1 and 45-106F6, which will be publicly available, and which will
include Australis’ name and the amount of their subscription. 

ARTICLE 5 
CONDITIONS PRECEDENT 

Mutual Conditions 

5.1                   
The respective obligations of BaM and Australis under this Agreement are subject
to the fulfillment of the following conditions being satisfied at or before the
Closing: 

- 12 - 

	 	(a) 	
      receipt of all required regulatory, shareholder and third
      party approvals, and compliance with all applicable regulatory
      requirements and conditions necessary to complete the Financing;

	 	 	 
	 	(b) 	
      this Agreement will not have been terminated pursuant to
      Article 7;

	 	 	 
	 	(c) 	
      there being no prohibition at law against the completion
      of the subscription and issuance of the Purchased Securities;
and

	 	 	 
	 	(d) 	
      the Purchased Securities issued in connection with the
      Financing being issued in a manner that is exempt from applicable
      prospectus requirements of Applicable Securities
Law.

Conditions of Closing in Favour of BaM 

5.2                   
The completion of the sale of the Purchased Securities by BaM is conditional
upon the following conditions in favour of BaM being satisfied at or before the
Closing: 

	 	(a) 	
      Australis complying with all the terms, covenants and
      conditions of this Agreement on its part to be complied with up to the
      Closing;

	 	 	 
	 	(b) 	
      the representations and warranties of Australis contained
      in this Agreement being true and correct in all material respects as of
      the Closing; and

	 	 	 
	 	(c) 	
      Australis having delivered the requisite deliverables
      contemplated by Section 6.1 of this Agreement.

Conditions of Closing in Favour of Australis 

5.3                   
The completion of the purchase of the Purchased Securities by Australis is
conditional upon the following conditions in favour of Australis being satisfied
at or before the Closing: 

	 	(a) 	
      BaM complying with all the terms, covenants and
      conditions of this Agreement on its part to be complied with up to the
      Closing;

	 	 	 
	 	(b) 	
      there being no material change or change in a material
      fact or a new material fact or an undisclosed material fact or change in
      respect of BaM which might be reasonably be expected to have a Material
      Adverse Effect and Australis will be satisfied that BaM will not have
      taken any act, entered into or become a party to or subject to any
      agreement or transaction or incurred or become liable for any obligation
      except in the ordinary course of business.

	 	 	 
	 	(c) 	
      the representations and warranties of BaM contained in
      this Agreement being true and correct in all material respects as of the
      Closing;

	 	 	 
	 	(d) 	
      BaM having made all requisite filings with the CSE in
      connection with the Financing in accordance with the policies of the CSE;
      and

	 	 	 
	 	(e) 	
      BaM having delivered the requisite certificate
      contemplated by Section 6.2 of this Agreement.

- 13 - 

ARTICLE 6 
CLOSING MATTERS 

Closing Deliveries 

6.1                   
BaM’s obligation to sell the Purchased Securities at Closing will be conditional
upon the satisfactory receipt by BaM at or before or at Closing of the
following:

	 	(a) 	
      payment of the Subscription Funds made by certified
      cheque delivered by Australis to BaM or electronic funds transfer to such
      account as may be directed by BaM; and

	 	 	 
	 	(b) 	
      a certified copy of the resolutions of the Board of
      Directors of Australis authorizing this Agreement and the transactions
      contemplated hereby.

6.2                   
Australis’s obligation to purchase the Purchased Securities at the Closing will
be conditional upon the satisfactory receipt by Australis at or before the
Closing of the following: 

	 	(a) 	
      a certificate dated as of the Closing Date in
      substantially the form as Appendix I, signed by the appropriate officers
      of BaM addressed to Australis; and

	 	 	 
	 	(b) 	
      a share certificate representing the Common
  Shares.

ARTICLE 7 
TERM AND TERMINATION 

Termination 

7.1                   
This Agreement may be terminated at any time prior to the Closing Date: 

	 	(a) 	
      by mutual written agreement of the Parties;

	 	 	 
	 	(b) 	
      by Australis if a breach of any representation or
      warranty or failure to perform any obligation on the part of BaM as set
      forth in this Agreement will have occurred that would cause the conditions
      set forth in Section 5.1 and Section 5.3 not to be satisfied or such
      conditions are incapable of being satisfied by the Closing Date, as
      reasonably determined by BaM, provided however that BaM is not then in
      breach of this Agreement so as to cause any condition in Section 5.1 or
      Section 5.3 not to be satisfied; or

	 	 	 
	 	(c) 	
      by BaM if a breach of any representation or warranty or
      failure to perform any obligation on the part of Australis as set forth in
      this Agreement will have occurred that would cause the conditions set
      forth in Section 5.1 or Section 5.2 not to be satisfied, or such
      conditions are incapable of being satisfied by the Closing Date as
      reasonably determined by Australis, provided however, that Australis is
      not then in breach of this Agreement so as to cause any condition in
      Section 5.1 or Section 5.2 not to be
satisfied.

- 14 - 

ARTICLE 8 
MISCELLANEOUS 

Confidentiality 

8.1                   
Except as required by Applicable Laws, Applicable Securities Laws or applicable
stock exchange requirements, neither BaM nor Australis will make any public
announcement or statement with respect to the transactions contemplated by and
in this Agreement without the approval of the other party, acting reasonably.
Moreover, in any event, each party agrees to give 24 hours prior notice to the
other of any public announcement relating to the transactions contemplated by
and in this Agreement and agrees to consult with the other prior to issuing each
such public announcement.

Expenses 

8.2                   
Each party will bear its own expenses in connection with this Agreement and the
transactions contemplated herein. 

Further Assurances 

8.3                   
Each party will from time to time hereafter, at the reasonable request of the
other party and without further consideration, do such further acts and execute
and deliver such further instruments and documents as may be reasonably required
in order to fully perform and carry out the terms of this Agreement. 

Successor and Assigns 

8.4                   
This Agreement will enure to the benefit of and will be binding upon the parties
hereto and their respective successors and permitted assigns. Neither this
Agreement nor any rights or obligations hereunder may be assigned by any of the
parties hereto without the express written consent of the other party. 

Time of Essence 

8.5                   
Time is of the essence of this Agreement. 

Governing Law 

8.6                   
This Agreement will be governed by and construed in accordance with the laws of
the Province of British Columbia and the federal laws of Canada applicable
therein, excluding reference to conflicts of laws principles that, if applied,
would require the application of the laws of another jurisdiction. Each of the
parties hereby irrevocably submits to and attorns to the exclusive jurisdiction
of the courts of the Province of British Columbia with respect to any actions,
claims, disputes or proceedings arising out of this Agreement or the transaction
contemplated hereby. 

Survival 

8.7                   
The representations, warranties, covenants and agreements made herein will
survive the Closing and the completion of the transactions hereunder for a
period of two years following the date of the Closing. 

- 15 - 

Notice 

8.8                   
Unless otherwise expressly provided in this Agreement, any notice or other
communication to be given under this Agreement (a “notice”) shall be in writing
addressed as follows: 

	 	(a) 	
      If to BaM, to:

	 	Body and Mind Inc. 
	 	750 – 1095 West Pender Street 
	 	Vancouver, BC 	  
	 	V6E 2M6 	  
	 	  	  
	 	Attention: 	Leonard Clough 
	 	Email: 	len@altuscapital.ca
      
	 	  	  
	 	with a copy (for informational purposes only and
      not constituting notice) to: 
	 	  	  
	 	DLA Piper (Canada) LLP 
	 	Suite 6000, 1 First Canadian Place 
	 	PO Box 367, 100 King St W 
	 	Toronto ON 	  
	 	M5X 1E2 	  
	 	  	  
	 	Attention: 	Derek Sigel 
	 	Email: 	derek.sigel@dlapiper.com

	 	(b) 	
      If to Australis, to:

	 	Australis Capital Inc. 
	 	Address: Suite 900, 510 Seymour Street 
	 	Vancouver, BC 	  
	 	V6B 1V5 	  
	 	 	 
	 	Attention: 	Scott Dowty 
	 	Email: 	scott@ausacap.com 
	 	 	 
	 	with a copy (for informational purposes only and
      not constituting notice) to: 
	 	 
	 	McMillan LLP 	  
	 	1500 – 1550 West Georgia Street 
	 	Vancouver, BC V6E 4N7 
	 	 
	 	Attention: 	Mark Neighbor 
	 	Email: 	mark.neighbor@mcmillan.ca 

or to such other address as any of the parties may designate by
notice given to the others. 

Each notice shall be personally delivered to the addressee or
sent by means of electronic transmission to the addressee and: (i) a notice
which is personally delivered shall, if delivered on a Business Day, be deemed
to be given and received on that day and, in any other case, be deemed to be
given and received on the first Business Day following the day on which it is
delivered; and (ii) a notice which is sent by means of electronic transmission shall be deemed to be given
and received on the first Business Day following the day on which it is sent.

- 16 - 

Amendments and Waivers 

8.9                   
Any term of this Agreement may be amended or waived if, and only if, such
amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Agreement, or in the case of a waiver, by the party against
whom the waiver is to be effective.

Severability 

8.10                  The
invalidity or unenforceability of any particular provision of this Agreement
will not affect or impair the validity or enforceability of the remaining
provisions of this Agreement, and the provision determined to be invalid or
unenforceable will be severable from the remaining provisions hereof. 

Entire Agreement 

8.11                 
This Agreement constitutes the entire agreement between the parties with respect
to the subject matter hereof and will supersede any and all prior negotiations,
understandings and agreements between the parties. 

Counterparts 

8.12                  This
Agreement may be executed and delivered (including by facsimile or other
electronic transmission) by the parties hereto in separate counterparts, each of
which will when executed be deemed an original and all of which taken together
will constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile or electronic transmission will
constitute effective execution and delivery of this Agreement as between the
parties and may be used in lieu of the original agreement for all purposes.
Signatures of the authorized signatories of the parties transmitted by facsimile
or electronic transmission will be deemed to be their original signatures for
all purposes. 

[Balance of Page Left Blank] 

- 17 - 

IN WITNESS WHEREOF the parties have executed this
Agreement as of the day and year first above written. 

 

AUSTRALIS CAPITAL INC. 

 

	Per: 	“Scott Dowty” 	 
	  	Authorized Signatory 	 

 

BODY AND MIND INC. 

 

	Per: 	“Leonard Clough” 	 
	  	Authorized Signatory 	 

- 18 - 

APPENDIX I 
Form of Officer’s Certificate

This certificate is provided pursuant to the Investment
Agreement dated for reference January 31, 2019 (the “Investment
Agreement”) between Body and Mind Inc. (the “Company”) and Australis
Capital Inc. (the “Subscriber”) in relation to an offering of common
shares of the Company. 

I, Leonard Clough, signing in my capacity as the Chief
Executive Officer of the Company, and I, Darren Tindale, signing in my capacity
as the Chief Financial Officer of the Company and not in our personal
capacities, hereby certify to the best of our knowledge, information and belief,
after having made due inquiry, that: 

	1. 	
      the representations and warranties made by the Company in
      the Investment Agreement remain true and correct in all material respects
      as of the date hereof and the Company has complied with all the covenants
      and satisfied all of the conditions contained therein;

	 	 
	2. 	
      no transaction out of the ordinary course of business,
      which is of a nature material to the Company, has been entered into by the
      Company;

	 	 
	3. 	
      there are no actions, suits, proceedings or inquiries
      pending or threatened against or affecting the Company at law or in equity
      or before or by any federal, provincial, municipal or other governmental
      department, commission, board, bureau or agency, domestic or foreign,
      which may in any way materially and adversely affect the
Company;

	 	 
	4. 	
      no order ceasing or suspending trading in securities of
      the Company nor prohibiting the sale of such securities has been issued to
      the Company or its directors, officers or promoters or to any reporting
      companies that have common directors, officers or promoters and no
      proceedings for such purposes are pending or threatened;

	 	 
	5. 	
      the offering and the sale of its securities by the
      Company does not and will not conflict with or result in a breach of or
      constitute a default under or result in a violation of, whether after
      notice or lapse of time or both, any of the terms, conditions or
      provisions of the constating documents, by-laws or resolutions of the
      Company or any indenture or other agreement or instrument to which the
      Company is a party or by which it is bound or any order, decree, statute,
      by-law, regulation, covenant or restriction applicable to the Company or
      any of its assets;

	 	 
	6. 	
      the Company is not presently in default in the
      performance of any covenant or obligation contained in any indenture or
      other agreement which creates, evidences or secures the indebtedness of
      the Company;

	 	 
	7. 	
      there are no persons, firms or corporations having any
      agreement or option or any right or privilege capable of becoming an
      agreement for the purchase, subscription or issuance of any securities of
      the Company;

	 	 
	8. 	
      the Company’s directors and officers have been duly
      elected or appointed; and

	 	 
	9. 	
      the Company is not in default with respect to any
      material filings it is required to make with the Canadian Securities
      Exchange or the applicable securities regulatory
  authorities.

- 19 - 

	DATED • 	 	  
	  	 	  
	  	 	  
	Leonard Clough 	 	Darren Tindale 
	Chief Executive Officer 	 	Chief Financial OfficerBlueprint

Exhibit 10.1

 

ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of
February 1, 2019, is by and between Lingo Management, LLC, a
Georgia limited liability company (“Buyer”), and Fusion Cloud
Services, LLC (f/k/a Birch Communications, LLC), a Georgia limited
liability company (“Seller”). Capitalized
terms used herein have the meanings set forth in Section 1.1.

 

RECITALS

 

WHEREAS, Seller and
its Subsidiaries are engaged in the business of, providing, among
other things, telecommunications services, information services,
and interconnected Voice over Internet Protocol
(“VoIP”) services to end-user customers;
and

 

WHEREAS, Buyer
desires to purchase from Seller and the Applicable Seller
Subsidiary (as defined herein), and Seller and the Applicable
Seller Subsidiaries desire to sell, assign, transfer, convey and
deliver to Buyer or the Applicable Buyer Subsidiary, free and clear
of any Encumbrances, the Acquired Assets (each as defined
herein).

 

NOW,
THEREFORE, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations,
warranties and covenants herein contained, the Parties agree as
follows:

 

 

ARTICLE I

 

DEFINITIONS 

 

1.1 Defined Terms. In addition to
terms that are used and otherwise defined in this Agreement, the
terms below shall have the following meanings:

 

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

 

“Acquired Customers” means
the Active Customers together with the CABS Revenue associated with
those Active Customers.

 

“Active Customers” has the
meaning set forth in Section 2.1(a).

 

“Acquired Customer Historical Valuation
Report” means the report delivered by Seller’s
counsel to Buyer’s counsel via email in connection with the
execution of this Agreement containing customers of Seller and/or
the Applicable Seller Subsidiaries.

 

 “Affiliate”
means, with respect to any Person, any other Person that directly
or indirectly through one or more intermediaries, controls, is
controlled by or is under common control with, such Person. For
purposes of this definition, “control” (including, with
correlative meaning, the terms “controlled” and
“common
control”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through ownership
of voting securities, by contract or otherwise.

 

1

 

 

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

 

“Applicable Buyer
Subsidiary” means any Subsidiary of the Buyer that
will provide Services to the Acquired Customers following their
date of transfer hereunder.

 

“Applicable Seller
Subsidiary” means any Subsidiary of the Seller that
provides Services to the Acquired Customers.

 

“Assumed Liabilities” has
the meaning set forth in Section 2.3.

 

“Bill of Sale” means a
bill of sale pursuant to which Seller shall sell, convey, transfer,
assign and deliver to Buyer (or a nominee of Buyer) the Acquired
Assets, in substantially the form attached hereto as Exhibit A.

 

“Books and Records” means
all files, documents, instruments, papers, books, reports, records,
correspondence, supplier lists, tapes, microfilms, photographs,
letters, ledgers, journals, technical documentation (design
specifications, functional requirements, operating instructions,
logic manuals, flow charts, etc.), user documentation (installation
guides, user manuals, training materials, release notes, working
papers, etc.), marketing and promotional materials, and other
similar materials in each case to the extent related to the
Acquired Customers or otherwise associated with the Acquired
Assets.

 

“BSS” has the meaning set
forth in Section
2.1(f).

 

“Business Day” means any
day on which national banking institutions in New York, New York
are open to the public for conducting business and are not required
or authorized to close.

 

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

 

“CABS” means carrier
access billing services.

 

“CABS Revenue” has the
meaning set forth in Section 2.1(b).

 

“Closing” has the meaning
set forth in Section
3.1(a).

 

“Closing Date” has the
meaning set forth in Section 3.1(a).

 

“Closing Statement” has
the meaning set forth in Section 2.6(a).

 

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

                                                            

2

 

  

“Customer Paperwork” means
all service order forms, master services agreements, terms and
conditions, letters of authorization, and any associated paperwork
signed by an Active Customer with the Seller and/or one of the
Applicable Seller Subsidiaries and associated with the provision of
the Services to the Active Customers.

 

“Customer Prepayments and
Deposits” means the sum of, without duplication, (a)
any customer payments received by Seller or any Applicable Seller
Subsidiary in respect of Services to be provided by Buyer or any
Applicable Buyer Subsidiary from and after the date hereof; (b)
customer deposits held by Seller or an Applicable Seller Subsidiary
in respect of Active Customers as of the date hereof; and (c)
credit balances of the Active Customers as of the date
hereof.

 

“Delayed Closing” has the
meaning set forth in Section 3.1(b).

 

“Elite Customer” means
customers of Seller and/or Applicable Seller Subsidiaries that
purchases Services and either (a) have multiple locations that
collectively were billed $5,000 or more in December 2018 or (b)
were originated as a customer of Seller by a master agent or other
agent where it was agreed between Seller or the Applicable Seller
Subsidiary and the agent to treat agent’s customers as
“Elite.”

 

“Excluded Customers” means
all customers of Seller and/or any Applicable Seller Subsidiary
that, as of the date hereof (a) are 60 days or more past due from
the invoice date or (b) have credit balances.

 

“Encumbrance” shall mean
any interest, pledge, lien, mortgage, security interest, lease,
sublease, hypothecation, deed of trust, right of use or possession,
right of first offer or first refusal, easement, servitude,
restrictive covenant, encroachment, encumbrances, restriction,
judgment, demand, successor liability claim, charge of any kind or
nature, claim, obligation, option or right, whether imposed by
agreement, understanding, law, equity or otherwise (whether legal
or equitable, secured or unsecured, matured or unmatured,
contingent or non-contingent, liquidated or unliquidated, senior or
subordinated).

 

“Excluded Assets” has the
meaning set forth in Section 2.2.

 

“Excluded Liabilities” has
the meaning set forth in Section 2.4.

 

“FCC” shall mean the
Federal Communications Commission.

 

“FCC Approval” has the
meaning set forth in Section 7.4.

  

“Final Order” means an
action taken or order issued by the applicable Governmental
Authority as to which: (a) no request for stay of the action or
order is pending, no such stay is in effect, and, if any deadline
for filing any such request is designated by statute or regulation,
it is passed, including any extensions thereof; (b) no petition for
rehearing or reconsideration of the action or order, or protest of
any kind, is pending before the Governmental Authority and the time
for filing any such petition or protest is passed; (c) the
Governmental Authority does not have the action or order under
reconsideration or review on its own motion and the time for such
reconsideration or review has passed; and (d) the action or order
is not then under judicial review, there is no notice of appeal or
other application for judicial review pending, and the deadline for
filing such notice of appeal or other application for judicial
review has passed, including any extensions thereof, or if an
appeal has been commenced, no stay is in effect.

 

“Governmental Authority”
means any government, quasi-governmental entity or other
governmental or regulatory body or agency, whether foreign,
federal, state or local, or any agency, instrumentality, court or
authority thereof.

 

“Law” means any federal,
state, provincial, territorial, local, municipal, foreign or other
law, statute, constitution, principle of common law, resolution,
ordinance, code, order, writ, edict, decree, rule, regulation,
judgment, ruling, policy, guideline or requirement issued, enacted,
adopted, promulgated, implemented or otherwise put into effect by
or under the authority of any Governmental Authority.

 

“Legal Requirements” means
any federal, state, local, municipal, foreign, international,
multinational, or other administrative Order, constitution, Law,
ordinance, principle of common law, regulation, statue or
treaty.

 

 

3

 

 

“Management Services
Agreement” means a management services agreement
substantially in the form of Exhibit B attached hereto
pursuant to which Buyer would provide management services to Seller
and the Applicable Seller Subsidiaries with respect to the Acquired
Customers prior to the Closing or the Delayed Closing, as
applicable.

 

“Non-Active Customers”
means a customer listed on the Non-Active Customers
List.

 

“Non-Active Customers
List” has the meaning set forth in Section 2.1(c).

 

“Order” means any award,
writ, injunction, judgment, order or decree issued, made or
rendered by any Governmental Authority.

 

“OSS” has the meaning set
forth in Section
2.1(f).

 

“Parties” and
“Party”
means Buyer and Seller.

 

“Pass-Through Charges”
means all charges collected for the purposes of being remitted to a
Governmental Authority, including federal universal service fund
charges remitted to USAC and state universal service fund charges
remitted to state authorities.

 

 “Person”
means any individual, corporation, partnership, limited liability
company, trust, association, joint venture or other entity of any
kind whatsoever.

 

“Post-Closing Period”
means, with respect to the applicable Acquired Assets sold as of a
certain date, any taxable period beginning on such date or, in the
case of any tax period which includes, but does not begin on or
after such date, the portion of such period beginning on such
date.

 

“Pre-Closing Period”
means, with respect to the applicable Acquired Assets sold as of a
certain date, any taxable period ending on or before the day
immediately preceding such date, or in the case of any taxable
period which includes, but does not end on or before such date, the
portion of such period up to and including the day immediately
preceding such date.

 

“Proceedings” means any
action, arbitration, audit, hearing, investigation, litigation, or
suit (whether civil, criminal, administrative or investigative, and
whether one or more) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Authority or
arbitral body.

 

“Purchase Price” has the
meaning set forth in Section 2.5.

 

“Redesignation Vendors”
has the meaning set forth in Section 6.13.

 

“Regulatory Approval”
means any consent, waiver, approval, order, communications license,
or authorization of the FCC, any State PUCs or any other
Governmental Authority required in connection with the execution of
this Agreement or the consummation of the transactions contemplated
hereby.

 

“Regulatory Payments”
shall mean the amounts necessary to satisfy any asserted regulatory
fees, assessments, fines, penalties or other payments assessed by
the FCC, any State PUC, USAC, or any similar state universal
service fund administrator, based upon Seller’s revenues or
Seller providing Services to Acquired Customers prior to the
Closing Date.

 

 “Representative”
means, with respect to a particular Person, any director, officer,
employee, agent, consultant, advisor or other representative of
such Person, including legal counsel, accountants and financial
advisors.

 

“Revenue” means the actual
revenue derived from the Acquired Customers, but excluding any
Pass-Through Charges.

 

 

4

 

 

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

 

“Services” means
telecommunications services, information services, and
interconnected VoIP services as defined in 47 U.S.C. §§
153(24), (25), (53).

 

“State PUC” shall mean the
agencies or commissions or other Governmental Authorities with
jurisdiction over Seller, including, but not limited to, any public
utility commission, state regulatory agency or
municipality.

 

“Subsidiary” means, with
respect to any Person, any entity in which such Person (a) owns,
directly or indirectly, at least a majority of the outstanding
voting securities, equity interests, profits interest or capital
interest, (b) is entitled to elect at least one-half of the board
of directors or similar governing body or (c) in the case of a
limited partnership or limited liability company, is a general
partner or managing member and has the power to direct the
policies, management and affairs of such entity.

 

“Tax” or
“Taxes”
(and with correlative meaning, “Taxable” and
“Taxing”) means (a) any
federal, state, provincial, local, foreign or other income,
alternative, minimum, add-on minimum, accumulated earnings,
personal holding company, franchise, capital stock, net worth,
capital, profits, intangibles, windfall profits, gross receipts,
value added, sales, use, goods and services, excise, escheat,
customs duties, transfer, conveyance, mortgage, registration,
stamp, documentary, recording, premium, severance, environmental,
natural resources, real property, personal property, ad valorem,
intangibles, rent, occupancy, license, occupational, employment,
unemployment insurance, social security, disability, workers’
compensation, payroll, health care, withholding, estimated or other
similar tax, duty, levy or other governmental charge or assessment
or deficiency thereof (including all interest and penalties thereon
and additions thereto whether disputed or not) and (b) any
transferee liability in respect of any items described in clause
(a) above.

 

“Transaction Documents”
means this Agreement, each Bill of Sale, the Management Services
Agreement and any other agreements, instruments or documents
entered into pursuant to this Agreement.

 

“Transfer Taxes” has the
meaning set forth in Section 6.12.

 

“USAC” means the Universal
Service Administrative Company.

 

1.2 Other Definitions and Interpretive
Matter. Unless otherwise expressly provided, for purposes of
this Agreement the following rules of interpretation shall
apply:

 

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

 

(b) Dollars. Any reference in this
Agreement to $ means U.S. dollars.

 

(c) Exhibits and Schedules. All
Exhibits and Schedules attached or annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement
as if set forth in full herein. Any capitalized terms used in any
Exhibit or Schedule but not otherwise defined therein shall be
defined as set forth in this Agreement.

 

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

 

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

 

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

 

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

  

 

5

 

 

ARTICLE
II 

 

PURCHASE AND SALE; PURCHASE PRICE

 

2.1 Purchase and Sale of Assets.
Upon the terms and subject to the conditions and provisions
contained herein, on the Closing Date or Delayed Closing, as
applicable, the Seller (or, if applicable, the Applicable Seller
Subsidiary) will sell, convey, transfer, assign and deliver to
Buyer or an Applicable Buyer Subsidiary, and Buyer or an Applicable
Buyer Subsidiary shall purchase from Seller (or, if applicable, an
Applicable Seller Subsidiary), free and clear of any and all
Encumbrances, all right, title and interest in and to the following
assets of Seller or the Applicable Seller Subsidiary (collectively
the “Acquired
Assets”):

 

(a) the customers
specifically identified in the Acquired Customer Historical
Valuation Report (which does not include any Excluded Customers)
that currently purchase one or more Services from Seller and/or an
Applicable Seller Subsidiary that collectively have monthly
recurring billed revenue (excluding any Pass-Through Charges) for
the month of January 2019 of $520,843 (resulting in annualized
billed revenue of $6,250,116) (the “Active
Customers”);

 

(b) all CABS revenue
associated with the Active Customers as of the Closing
(“CABS
Revenue”);

 

(c) a list of all
cancelled and non-active customers of Seller and the Applicable
Seller Subsidiaries that had, at any point during 12 months prior
to the date hereof, monthly recurring revenue (excluding any former
Elite Customers) of less than or equal to $190 (the
“Non-Active
Customers List”);

 

(d) all Customer
Paperwork associated with the Active Customers;

 

(e) customer service
telephone numbers (toll free and local numbers) and blocks of
telephone numbers assigned to Seller or any Applicable Seller
Subsidiary, that are solely used or maintained to support the
Active Customers;

 

(f) all historical
billing records, trouble ticket information and similar information
relating to the Acquired Customers contained in billing support
systems (“BSS”) or operations
support systems (“OSS”) used by Seller
and/or any Applicable Seller Subsidiary, along with associated data
definition and migration assistance, including digital copies of
invoices for each Acquired Customer for up to six months prior to
the date hereof, which shall be provided to Buyer within 30 days
following the execution date of this Agreement;

 

(g) any customer
deposits and credit balances related solely to the Acquired
Customers; and

  

(h) all Books and
Records related to the Acquired Customers.

 

2.2  Excluded Assets.
Notwithstanding anything to the contrary contained in this
Agreement, neither Buyer nor any Applicable Buyer Subsidiary shall
acquire any assets of Seller or any Applicable Seller Subsidiary,
other than the Acquired Assets (the “Excluded
Assets”).

 

2.3 Assumption of Liabilities. Upon
the terms and subject to the conditions and provisions contained
herein, at the Closing, or, if applicable, the Delayed Closing,
Buyer shall assume all of the liabilities and obligations of Seller
and/or the Applicable Seller Subsidiary, as the case may be, under
the Customer Paperwork relating to the Active Customers arising
from and after the date of this Agreement, other than any such
liabilities and obligations arising out of or related to a breach
or default thereunder by Seller or the Applicable Seller Subsidiary
(the “Assumed
Liabilities”).

 

2.4 Liabilities Not Assumed. Except
for the Assumed Liabilities, neither Buyer nor any Applicable Buyer
Subsidiary will assume any liability or obligation of Seller or any
Applicable Seller Subsidiary whatsoever, whether known or unknown,
disclosed or undisclosed, accrued or hereafter arising, absolute or
contingent, and Seller and the Applicable Seller Subsidiary will
retain responsibility for, and will timely discharge and satisfy,
all such liabilities and obligations (collectively the
“Excluded
Liabilities”).

 

2.5 Purchase Price.

 

(a) Subject to
adjustment pursuant to Section 2.6, the aggregate cash
amount to be paid by Buyer to Seller for the Acquired Assets is
$10,000,000 (the “Purchase
Price”).

 

(b) The Purchase Price
shall be paid as follows:

 

(i) no later than one
business day following the date of this Agreement, Buyer will pay
or cause to be paid to Seller by wire transfer of immediately
available funds $9,250,000 (the “Initial Payment”);
and

 

(ii) on
the Closing Date, Buyer will pay or cause to be paid to Seller by
wire transfer of immediately available funds an amount equal to the
Purchase Price (as adjusted pursuant to Section 2.6) minus the Initial Payment (such
amount, the “Closing
Payment”).

  

 

6

 

 

2.6 Closing Statement.

 

(a) No later than five
(5) Business Days prior to the Closing Date, Seller shall deliver
to Buyer a written statement (the “Closing Statement”)
setting forth Seller’s good faith estimate of the Customer
Prepayments and Deposits. Should Buyer object to any of the amounts
or calculations in the Closing Statement, Buyer and Seller shall
cooperate in a diligent and good faith manner to resolve such
objections prior to the Closing, and the Closing Statement shall be
adjusted prior to the Closing to reflect any changes agreed to by
Buyer and Seller prior to the Closing.

 

(b) The Closing Payment
shall be decreased by the Customer Prepayments and Deposits set
forth in the Closing Statement.

 

2.7 Failure to Fund the Full Amount of the
Closing Payment. In the event that Buyer fails to fund the
full amount of the Closing Payment on the Closing Date, (a) the
Closing shall never the less proceed, but the value of the Acquired
Assets sold on such date and at any Delayed Closing, if applicable,
shall be adjusted pro rata to give effect to the Purchase Price
being reduced by the amount of the Closing Payment that is not paid
by Buyer at the Closing, (b) the value of the Acquired Assets
transferred shall be further adjusted downward by a factor of
fifteen percent (15%) to take into account Buyer’s failure to
meet its obligations under this Agreement, and (c) Buyer shall
refund to Seller an amount equal to (i) the Net Amount (as defined
in the Management Services Agreement) actually received by Buyer
under the Management Services Agreement from the date hereof until
the Closing multiplied by (ii) the quotient obtained by dividing
(A) the amount of the Closing Payment that is not paid by Buyer at
the Closing by (B) the Purchase Price.

 

ARTICLE
III

 

THE CLOSING

 

3.1 Closing.

 

(a) The consummation of
the transactions contemplated in this Agreement (the
“Closing”) shall take
place at the offices of Jones Day, 1420 Peachtree Street, NE, Suite
800, Atlanta, Georgia 30309, or at another location mutually agreed
to by the Parties, on the earlier of (i) subject to Section 3.1(b), April 1, 2019
(provided that all the conditions to Closing set forth in
Article VII and
Article VIII ,
other than the conditions set forth in Section 7.5 and Section 8.5, have been
satisfied or waived) and (ii) such time as all of the conditions to
Closing set forth in Article VII and Article VIII have been
satisfied or waived. The date on which the Closing occurs is
referred to herein as the “Closing
Date”.

 

(b) If the Closing
occurs pursuant to clause (i) of Section 3.1(a), Acquired Assets
subject to any Regulatory Approvals that have not been obtained at
such time will not be transferred to Buyer at such Closing and will
remain subject to the terms of the Management Services Agreement
until such time as they are conveyed to Buyer. Upon the receipt of
any such Regulatory Approvals, the Acquired Assets subject thereto
will be transferred to Buyer within five (5) Business Days of
receipt of the associated Regulatory Approvals(s) (each such
transfer, a “Delayed
Closing”).

 

3.2 Closing Deliveries. At the
Closing, and, as applicable, at each Delayed Closing:

 

(a) Seller shall sell,
and Buyer shall purchase, the portion of the Acquired Assets sold
on such date, free and clear of all Encumbrances;

 

(b) Buyer shall assume
the Assumed Liabilities associated with the Acquired Assets sold on
such date;

 

(c) at the Closing,
Buyer shall fund the Closing Payment in accordance with
Section 2.5(b)(ii)
and/or, only in the event of any short-fall in the amount of such
required payment, an adjustment in the value of the Acquire Assets
shall be made in accordance with Section 2.7 above and Buyer
shall pay the amount contemplated by clause (c) of Section 2.7.

 

(d) Seller shall
deliver an executed Bill of Sale with respect to the portion of the
Acquired Assets sold on such date;

 

(e) Seller shall
deliver such other instruments as shall be reasonably requested by
Buyer to vest in Buyer title in and to the Acquired Assets sold on
such date; and

 

(f) Seller shall
deliver payoff letters and releases of all Encumbrances on the
Acquired Assets sold on such date, in form and substance reasonably
satisfactory to Buyer.

 

 

7

 

ARTICLE
IV 

 

REPRESENTATIONS AND WARRANTIES OF SELLER

 

As an
inducement to Buyer to enter into this Agreement, Seller hereby
makes the following representations and warranties to Buyer as of
the date hereof and as of the Closing Date (and, if applicable, on
the date of each Delayed Closing with respect to the Acquired
Assets sold on such date):

 

4.1 Organization and Good Standing.
Seller is a limited liability company validly existing and in good
standing under the Laws of the state of Georgia.

 

4.2 Authority; Validity. Seller has
the requisite power and authority necessary to enter into and
perform its obligations under this Agreement and the other
Transaction Documents to which it is a party and to consummate the
transactions contemplated hereby and thereby. The execution,
delivery and performance of this Agreement by Seller and the
consummation by Seller and the Applicable Seller Subsidiaries of
the transactions contemplated herein have been duly and validly
authorized by all necessary limited liability, corporate,
partnership or similar action on the part of Seller and each
Applicable Seller Subsidiary and no further action is required on
the part of Seller or Applicable Seller Subsidiary to authorize
this Agreement or any Transaction Document to which it is a party
or the performance of its obligations hereunder or thereunder. This
Agreement has been duly and validly executed and delivered by
Seller and each other Transaction Document to which Seller or any
Applicable Seller Subsidiary is a party will be duly and validly
executed and delivered by Seller or the Applicable Seller
Subsidiary at the Closing. This Agreement and the other Transaction
Documents to which Seller or an Applicable Seller Subsidiary is a
party constitutes the legal, valid and binding obligation of Seller
or such Applicable Seller Subsidiary enforceable against Seller or
such Applicable Seller Subsidiary in accordance with their
respective terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar Laws
now or hereafter in effect relating to creditors’ rights
generally or general principles of equity.

 

4.3 Litigation. There are no
Proceedings pending or, to the knowledge of Seller, threatened
against Seller or any Applicable Seller Subsidiary with respect to
the Acquired Assets or that would adversely affect Seller’s
or any Applicable Seller Subsidiary’s ability to perform its
obligations under this Agreement or any other Transaction Documents
to which it is a party or to consummate the transactions
contemplated hereby or thereby. There is no Order to which any of
the Acquired Assets is subject that would prevent the transfer of
such Acquired Assets according to the terms and conditions of this
Agreement.

 

4.4 Compliance with Legal
Requirements. Since May 4, 2018 neither Seller nor any
Applicable Seller Subsidiary has received any written notice of or
been charged with any violation of any Legal
Requirements.

 

4.5 Consents and Approvals. Except
as set forth on Schedule
4.5:

 

(a) No notices, reports
or other filings are required to be made by Seller or any
Applicable Seller Subsidiary with, nor are any consents,
registrations, approvals, permits or authorizations required to be
obtained by the Seller and/or any of the Applicable Seller
Subsidiaries from, any Governmental Authority in connection with
the execution, delivery and performance of this Agreement by Seller
and/or any Applicable Seller Subsidiary and the consummation of the
transactions contemplated hereby.

 

(b) Neither the
execution, delivery or performance by Seller of this Agreement or
any of the Transaction Documents, nor the consummation of the
transactions contemplated by this Agreement or any of the
Transaction Documents, will directly or indirectly (with or without
the giving of notice or the lapse of time or both): (i) conflict
with or result in a violation of any provision of the certificate
of formation or operating agreement (or similar governing
documents) of Seller or any Applicable Seller Subsidiary; (ii)
assuming that all filings, permits, authorizations, consents and
approvals in Schedule
4.5 are made and obtained, conflict with or result in a
violation of any Legal Requirements to which the Seller or any
Applicable Seller Subsidiary or any of the Acquired Assets is
subject; (iii) contravene, conflict with or result in a violation
or breach of, or result in a default under, any provision of any
contract to which the Seller or any Applicable Seller Subsidiary is
a party, or give any Person the right to (x) declare a default
or exercise any remedy under any such contract or (y) modify,
terminate, or accelerate any right, liability or obligation of the
Seller or any Applicable Seller Subsidiary under any such contract,
or charge any fee, penalty or similar payment to the Seller or any
Applicable Seller Subsidiary under any such contract; or (v) result
in the imposition or creation of any Encumbrance upon or with
respect to any Acquired Asset.

 

4.6 Revenue. The total monthly
recurring billed revenue from the Acquired Customers for January
2019 was $520,843, as validated by the Acquired Customer Historical
Valuation Report. The Acquired Customer Historical Valuation Report
does not include any Excluded Customers.

 

4.7 Brokers or Finders. Neither
Seller, nor any Person acting on behalf of Seller or any Applicable
Seller Subsidiary, has paid or become obligated to pay, or will
become obligated to pay upon the Closing, any fee or commission to
any broker, finder, investment banker, agent or intermediary for or
on account of the transactions contemplated by this Agreement, and
Seller shall hold harmless and indemnify Buyer from any claims with
respect to any such fees or commissions.

 

4.8 No other Representations or
Warranties. Except for the representations and warranties
expressly made by Seller in this Article IV, Seller makes no
representation or warranty, express or implied, at Law or in
equity, with respect to Seller, any Applicable Seller Subsidiary,
or the Acquired Assets. Buyer hereby acknowledges and agrees that,
except to the extent specifically set forth in this Agreement,
Buyer and or the Applicable Buyer Subsidiary is purchasing the
Acquired Assets on an “as-is, where is”
basis.

                                                             

 

8

 

                               

ARTICLE V 

 

REPRESENTATIONS AND WARRANTIES OF BUYER

 

As an
inducement to Seller to enter into this Agreement, Buyer hereby
makes the following representations and warranties to Seller as of
the date hereof and as of the Closing Date (and, if applicable, on
the date of each Delayed Closing):

 

5.1 Organization and Good Standing.
Buyer is a limited liability company validly existing and in good
standing under the Laws of the State of Georgia. Buyer is not in
violation of its governing documents in any material
respect.

 

5.2 Authority; Validity. Buyer has
the requisite limited liability company power and authority
necessary to enter into and perform its obligations under this
Agreement and the other Transaction Documents to which it is a
party and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance of this Agreement
by Buyer and the consummation by Buyer and/or the Applicable Buyer
Subsidiaries of the transactions contemplated herein have been duly
and validly authorized by all requisite limited liability company
or corporate authority on the part of Buyer and each Applicable
Buyer Subsidiary in respect thereof. This Agreement has been duly
and validly executed and delivered by Buyer and each other
Transaction Document to which Buyer or any Applicable Buyer
Subsidiary is a party will be duly and validly executed and
delivered by Buyer or the Applicable Buyer Subsidiary, as
applicable, at the Closing. This Agreement and the other
Transaction Documents to which Buyer or such Applicable Buyer
Subsidiary is a party constitute the legal, valid and binding
obligation of Buyer or such Applicable Buyer Subsidiary,
enforceable against Buyer or such Applicable Buyer Subsidiary in
accordance with their respective terms, except as such
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar Laws now or hereafter in
effect relating to creditors’ rights generally or general
principles of equity.

 

5.3 Litigation. There are no
Proceedings pending or, to the knowledge of Buyer, threatened
against Buyer or any Applicable Buyer Subsidiary, that would
adversely affect Buyer’s or any Applicable Buyer
Subsidiary’s ability to perform its obligations under this
Agreement or any other Transaction Documents to which it is a party
or to consummate the transactions contemplated hereby or
thereby.

 

5.4 Consents and Approvals. Except
as set forth on Schedule
5.4:

 

(a) No notices, reports
or other filings are required to be made by Buyer or any Applicable
Buyer Subsidiary with, nor are any consents, registrations,
approvals, permits or authorizations required to be obtained by
Buyer and/or any Applicable Buyer Subsidiary from, any Governmental
Authority in connection with the execution, delivery and
performance of this Agreement by Buyer and/or any Applicable Buyer
Subsidiary and the consummation of the transactions contemplated
hereby.

 

(b)           Neither
the execution, delivery or performance by Buyer of this Agreement
or any of the Transaction Documents to which it is a party, nor the
consummation of the transactions contemplated by this Agreement or
any of the Transaction Documents to which it is a party, will
directly or indirectly (with or without the giving of notice or the
lapse of time or both): (i) conflict with or result in a violation
of any provision of the certificate of formation or operating
agreement (or similar governing documents) of Buyer or any
Applicable Buyer Subsidiary; (ii) assuming that all filings,
permits, authorizations, consents and approvals in Schedule 5.4 are made and
obtained, conflict with or result in a violation of any Legal
Requirements to which the Buyer or any Applicable Buyer Subsidiary
or any of the Acquired Assets is subject; (iii) contravene,
conflict with or result in a violation or breach of, or result in a
default under, any provision of any contract to which the Buyer or
any Applicable Buyer Subsidiary is a party, or give any Person the
right to (x) declare a default or exercise any remedy under
any such contract or (y) modify, terminate, or accelerate any
right, liability or obligation of the Buyer or any Applicable Buyer
Subsidiary under any such contract, or charge any fee, penalty or
similar payment to the Buyer or any Applicable Buyer Subsidiary
under any such contract; or (iv) result in the imposition or
creation of any Encumbrance upon or with respect to any Acquired
Asset.

 

5.5 Brokers or Finders. Except for
payments that may be payable to Macquarie Capital (USA) Inc. by
Buyer or its direct or indirect equityholders, neither Buyer or any
Applicable Buyer Subsidiary, nor any Person acting on behalf of
Buyer or any Applicable Buyer Subsidiary, has paid or become
obligated to pay, or will become obligated to pay upon the Closing,
any fee or commission to any broker, finder, investment banker,
agent or intermediary for or on account of the transactions
contemplated by this Agreement, and Buyer and the Applicable Buyer
Subsidiaries shall hold harmless and indemnify Seller and each
Applicable Seller Subsidiary from any claims with respect to any
such fees or commissions.

 

5.6 Financial Capability. At the
Closing, Buyer will have sufficient unrestricted funds on hand
(through existing credit facilities or otherwise) to pay the
Closing Payment.

 

5.7 No other Representations or
Warranties. Except for the representations and warranties
expressly made by Buyer in this Article V, Buyer makes no
representation or warranty, express or implied, at Law or in
equity, with respect to Buyer, any Applicable Buyer Subsidiary, or
the transactions contemplated hereby.

  

 

9

 

  

   
           
           
ARTICLE VI
                              

 

COVENANTS

 

6.1 Reasonable Efforts. Subject to
the terms and conditions set forth in this Agreement, each Party
will cooperate with the other and use commercially reasonable
efforts to take or cause to be taken all actions, and to do or
cause to be done all things, reasonably necessary, proper or
advisable under this Agreement and applicable Legal Requirements to
consummate and make effective, as soon as reasonably practicable,
the transactions contemplated by this Agreement, including
preparing and filing, as soon as reasonably practicable, all
documentation to effect notices, reports and other filings
necessary, proper or advisable to be filed with, and obtaining, as
soon as reasonably practicable, all consents, registrations,
approvals, permits and authorizations necessary, proper or
advisable to be obtained from, any third party or Governmental
Authority.

 

6.2 Further Assurances. In addition
to the provisions of this Agreement, from time to time after the
Closing Date, Seller and Buyer will use all commercially reasonable
efforts to execute and deliver such other instruments of
conveyance, transfer or assumption, as the case may be, and take
such other actions as may be reasonably requested to implement more
effectively the transactions contemplated hereby, and the
conveyance and transfer of the Acquired Assets. In connection
therewith, Seller shall promptly forward to Buyer (a) all mail that
it receives after the Closing Date relating to the Acquired Assets,
and (b) all payments that it receives after the Closing Date
relating to Services performed by Buyer from and after such date
(properly endorsed for the benefit of Buyer if
necessary).

 

6.3 Conduct of Seller’s
Business. Prior to the Closing Date, Seller will carry on
its business with respect to the Acquired Assets in the usual and
ordinary course and in substantially the same manner as conducted
on the date of this Agreement. Without limiting the generality of
the foregoing, Seller shall use all commercially reasonable efforts
to maintain in accordance with good business practice existing
relationships with its vendors and customers necessary to preserve
Acquired Customer relationships for Buyer. Seller shall not change
recurring or non-recurring rates, credit policies or collections
procedures for the Acquired Customers without the prior written
consent of Buyer, which consent shall not be unreasonably withheld,
conditioned or delayed, or sell, transfer, swap any of the Acquired
Assets.

 

6.4 Access. From the date hereof
until the Closing Date, or the last Delayed Closing if applicable,
Seller shall make available to Buyer during normal business hours
Seller’s personnel and any and all Books and Records and
other data that is reasonably related to the Acquired Assets,
including billing data, pricing data, product descriptions, payment
data, customer service data, regulatory data, network data and
repair records data.

 

6.5 Migration of Data. Seller shall
cooperate with Buyer to migrate all data related to the Acquired
Assets from the BSS and the OSS into Buyer’s (or its
designees) systems. The migration with respect to the Acquired
Assets shall be completed with respect to the Acquired Assets
within thirty (30) days following the date of this Agreement. Prior
to Closing, Buyer will handle any data classified as Customer
Proprietary Network Information, pursuant to FCC rules, in
accordance with the provisions of the Management Services
Agreement.

 

6.6 Regulatory Authorizations. The
Parties will use their respective reasonable best efforts to (i)
take, or cause to be taken, all appropriate action and do, or cause
to be done, all things necessary, proper or advisable under
applicable Law, to consummate and make effective the transactions
contemplated by this Agreement as promptly as practicable following
receipt of applicable Regulatory Approvals, (ii) jointly obtain
from all Regulatory Approvals, required to be obtained by a Party,
or any of their respective Subsidiaries, or to avoid any Order by
any Governmental Authority, in connection with the authorization,
execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby, (iii) (A) as promptly as
reasonably practicable, and in any event within five (5) Business
Days after the date hereof, make all necessary filings, and
thereafter make any other required submissions, with respect to
this Agreement required in order to obtain FCC Approval, (B) as
promptly as reasonably practicable, and in any event within ten
(10) Business Days after the date hereof, make all necessary
filings, and thereafter make any other required submissions, with
respect to this Agreement required in order to obtain all other
Regulatory Approvals, and (C) as promptly as reasonably practicable
after the date hereof, make all necessary filings, and thereafter
make any other required submissions, with respect to this Agreement
required under any other applicable Law. Seller and Buyer will
furnish to each other all information required for any application
or other filing under the rules and regulations of any applicable
Law in connection with the transactions contemplated by this
Agreement. Nothing in this Agreement will be deemed to require the
Seller, Buyer or any of their respective Subsidiaries (i) to divest
or hold separate any assets or agree to limit its future
activities, method or place of doing business, (ii) to commence any
litigation against any Person in order to facilitate the
consummation of the transactions contemplated by this Agreement, or
(iii) to defend against any litigation filed with or brought by any
Governmental Authority seeking to prevent the consummation of, or
impose limitations on, any of the transactions contemplated
hereby.

 

6.7 Regulatory Payments. With
effect from the date of this Agreement, Buyer shall be responsible
for managing the payment of any Regulatory Payments with respect to
the Acquired Assets, as provided in the Management Services
Agreement.

                          

 

10

 

 

6.8 Notification of Customers.
Buyer shall prepare a required joint letter to the Active Customers
in form and substance reasonably satisfactory to both Parties.
Seller shall provide Buyer with the necessary contact information
for the Active Customers as part of the Acquired Customer
Historical Valuation Report or in a separate file provide within
five (5) Business Days from the date of this Agreement. Buyer shall
issue the joint notice to the Active Customers as soon as
reasonably practicable following the date of this Agreement, and
shall bear the costs and expenses of preparing the joint notice and
mailing.

 

6.9 Access to Information; Maintenance of
Records.

 

(a) For a period of
three years after the Closing Date each Party and its
Representatives shall have reasonable access to all of the Books
and Records compiled with respect to the period prior to the
Closing Date, in the possession of the other Party to the extent
that such access may reasonably be required by such Party, or other
matters relating to or affected by the operation of the Acquired
Assets.

 

(b) Such access shall
be afforded by the Party in possession of such Books and Records
upon receipt of reasonable advance notice and during normal
business hours; provided, however, that: (i) any such access shall
be conducted in such a manner as not to interfere unreasonably with
the operation of the business of that Party; (ii) no Party shall be
required to take any action which would constitute a waiver of the
attorney-client privilege or contravene any fiduciary duty or
binding agreement entered into prior to the date of this Agreement;
(iii) no Party shall be required to take any action which would
reveal confidential or proprietary information or trade secrets;
(iv) no Party shall be required to supply the other Party with any
information which such Party is under a legal obligation not to
supply; and (v) no Party shall be required to take any action that
would contravene any applicable Law. The applicable Party
exercising this right of access shall be solely responsible for any
costs or expenses incurred by it hereunder.

 

(c) If the Party in
possession of such Books and Records shall desire to dispose of any
such Books and Records prior to the expiration of such period, such
Party shall, prior to such disposition, give the other Party a
reasonable opportunity at such other Party’s expense, to
segregate and remove such Books and Records as such other Party may
select.

 

6.10 Solicitation.
Seller hereby agrees that for a period of one year from and after
the Closing Date, it shall not, and shall cause its Representatives
not to, directly or indirectly, solicit the Active Customers for
the purpose of providing the form of Services provided to the
Active Customers on the Closing Date. Seller agrees and
acknowledges that in order to assure Buyer that the Acquired Assets
will retain their value, the foregoing restrictions on Seller are
necessary.

 

6.11 Taxes.
Any sales Tax, use Tax, personal property Tax or similar Tax
attributable to the sale or transfer of the Acquired Assets
(“Transfer
Taxes”) shall be borne by Seller. Seller shall be
responsible for and shall pay any Taxes arising or resulting from
or in connection with the ownership of the Acquired Assets
attributable to the Pre-Closing Period. Buyer shall be responsible
for and shall pay any Taxes arising or resulting from or in
connection with the ownership of the Acquired Assets attributable
to the Post-Closing Period. All Taxes (not including income Taxes)
levied with respect to the Acquired Assets for a Taxable period
which includes (but does not end on) the day immediately preceding
the date on which such Acquired Assets were sold by Seller
hereunder shall be apportioned between Buyer and Seller based on
the number of days included in such period through and including
the day immediately preceding the date on which such Acquired
Assets were sold by Seller hereunder and the number of days
included in such period from and after the such date.

 

6.12 Redesignation
Charges. Seller or the Applicable Seller Subsidiary, shall
execute any transfer agreements or other documentation in the form
required by all incumbent local exchange carriers and any other
vendors to enable the expedited transfer of the Acquired Customers
and any underlying services to Buyer (“Redesignation Vendors”).
Seller and the Applicable Seller Subsidiary, as applicable, shall
take all such other actions (but Buyer shall pay all costs, fees
and expenses imposed by any Redesignation Vendor) required to cause
any Redesignation Vendor to redesignate the Acquired Customers and
the underlying services to Buyer or any Applicable Buyer Subsidiary
under the applicable contracts between Buyer or any Applicable
Buyer Subsidiary and such Redesignation Vendors.

  

 ARTICLE
VII

 

 CONDITIONS
PRECEDENT TO OBLIGATIONS OF BUYER TO CLOSE

 

The
obligations of Buyer to consummate the transactions contemplated by
this Agreement are subject to the satisfaction or waiver, at or
prior to the Closing (and any Delayed Closing, if applicable), of
each of the following conditions:

 

7.1 Accuracy of Representations.
The representations and warranties of Seller set forth in this
Agreement shall be true and correct in all material respects
(except that those representations and warranties that are
qualified as to materiality shall be true and correct in all
respects) as of the Closing Date (or the date of a Delayed Closing,
as applicable) with the same effect as though such representations
and warranties had been made on and as of the Closing Date (or the
date of a Delayed Closing, as applicable) (provided that
representations and warranties that are confined to a specified
date shall speak only as of such date). Buyer shall have received a
certificate signed by Seller to such effect.

  

 

11

 

 

7.2 Seller’s Performance.
Each covenant and agreement that Seller is required to perform or
to comply with pursuant to this Agreement at or prior to the
Closing Date (or the date of a Delayed Closing, as applicable)
shall have been duly performed and complied with in all material
respects and Buyer shall have received a certificate signed by
Seller to such effect.

 

7.3 No Order. No Governmental
Authority shall have enacted, issued, promulgated or entered any
Order that is in effect and has the effect of making illegal or
otherwise prohibiting the consummation of the transactions
contemplated by this Agreement or could cause any of such
transactions to be rescinded following the Closing Date (or the
date of a Delayed Closing, as applicable).

 

7.4 FCC Approval. Buyer or the
Applicable Buyer Subsidiary shall have received all approvals
required from the FCC (the “FCC Approval”) to acquire
the Acquired Assets.

 

7.5 Other Regulatory Approvals.
Buyer or the Applicable Buyer Subsidiary shall have received all
Regulatory Approvals, other than the FCC Approval, required or
necessary to acquire the Acquired Assets.

 

7.6 Seller’s Deliveries. Each
of the deliveries required to be made to Buyer pursuant to
Section 3.2 shall
have been so delivered.

 

7.7 Migration of Data. Seller shall
have provided Buyer with a copy of the information contained in its
BSS and the OSS relating to the Acquired Customers sufficient for
input into Buyer’s BSS and OSS within 30 days from the date
of this Agreement.

 

7.8 Closing Statement. Buyer shall
have agreed to the Closing Statement, or Seller shall have agreed
to any adjustments thereto requested by Buyer.

 

 

ARTICLE VIII 

 

CONDITIONS PRECEDENT TO THE OBLIGATION OF SELLER TO
CLOSE

 

Seller’s
obligation to consummate the transactions contemplated by this
Agreement is subject to the satisfaction or waiver, at or prior to
the Closing, of each of the following conditions:

 

8.1 Accuracy of Representations.
The representations and warranties of Buyer set forth in this
Agreement shall be true and correct in all material respects
(except that those representations and warranties that are
qualified as to materiality or similar expressions shall be true
and correct in all respects) as of the Closing Date (or the date of
a Delayed Closing, as applicable) with the same effect as though
such representations and warranties had been made on and as of the
Closing Date (or the date of a Delayed Closing, as applicable)
(provided that representations and warranties that are confined to
a specified date shall speak only as of such date). Seller shall
have received a certificate of Buyer to such effect.

  

8.2 Buyer’s Performance. The
covenants and agreements that Buyer is required to perform or to
comply with pursuant to this Agreement at or prior to the Closing
(or the date of a Delayed Closing, as applicable) shall have been
performed and complied with in all material respects (except that
those covenants and agreements that are qualified as to materiality
or similar expressions shall have been duly performed and complied
with in all respects) and Seller shall have received a certificate
of Buyer to such effect.

 

8.3 No Order. No Governmental
Authority shall have enacted, issued, promulgated or entered any
Order that is in effect and that has the effect of making illegal
or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement or could cause any of such
transactions to be rescinded following the Closing Date(or the date
of a Delayed Closing, as applicable).

 

8.4 FCC Approval. Buyer or the
Applicable Buyer Subsidiary shall have received the FCC
Approval.

 

8.5 Other Regulatory Approvals.
Buyer or the Applicable Buyer Subsidiary shall have received all
Regulatory Approvals, other than the FCC Approval, required or
necessary to acquire the Acquired Assets.

 

8.6 Buyer’s Deliveries. Each
of the deliveries required to be made to Seller pursuant to
Section 3.2 shall
have been so delivered.

 

ARTICLE
IX

 

TERMINATION

 

9.1 Termination Events.
Notwithstanding anything contained in this Agreement to the
contrary, this Agreement may only be terminated by either Seller or
Buyer if a Governmental Authority issues a Final Order prohibiting
the transactions contemplated hereby and, in any such case, such
termination shall only be effective with respect to any Acquired
Assets the subject of such Final Order. For avoidance of doubt, in
no event shall Buyer have a right to terminate this Agreement if it
fails to secure the funds necessary to fund the Closing
Payment.

  

 

12

 

 

9.2 Effect of Termination. In the
event of termination of this Agreement pursuant to Section 9.1, all rights and
obligations of the Parties under this Agreement shall terminate
without any liability of any Party to any other Party; provided
that, (a) nothing herein shall relieve any Party from any liability
for (i) breach of any provision of this Agreement or (ii) fraud or
willful misconduct and (b) Buyer shall remain obligated to make the
Closing Payment and the Acquired Assets subject to any Final Order
shall remain subject to the terms and conditions of the Management
Services Agreement. The provisions of this Section 9.2 (and, to the extent
applicable to the interpretation or enforcement of such provisions,
Article XI), shall
expressly survive the termination of this Agreement.

                            

ARTICLE X 

 

GENERAL PROVISIONS

 

10.1 Confidentiality.
For a period of two years after the Closing Date, none of Seller
nor any of its Representatives, shall, directly or indirectly,
without the prior written consent of Buyer, disclose to any Person
(other than each other and their respective Representatives) any
confidential or proprietary information included in the Acquired
Assets; provided that the foregoing restriction shall not (a) apply
to any information generally available to, or known by, the public
(other than as a result of disclosure in violation of this
Section 10.1),
or (b) prohibit any disclosure (i) required by applicable Legal
Requirements so long as, to the extent legally permissible and
feasible, Seller provides Buyer with reasonable prior notice of
such disclosure and a reasonable opportunity to contest such
disclosure or (ii) made in connection with the enforcement of any
right or remedy relating to any of the Transaction Documents or the
transactions contemplated thereby.

 

10.2 Transaction
Expenses. Except as expressly provided in this Agreement,
each Party shall bear its own costs and expenses, including
attorney, accountant and other consultant fees, in connection with
the execution and negotiation of this Agreement and the
consummation of the transactions contemplated hereby, including in
connection with obtaining the Regulatory Approvals.

 

10.3 Public
Announcements. Unless otherwise required by applicable Legal
Requirement, Buyer, on the one hand, and Seller, on the other hand,
shall consult with each other before issuing any press release or
otherwise making any public statement with respect to the execution
of this Agreement, the terms and conditions hereof, the
consummation transactions contemplated hereby, or the activities
and operations of the other and shall not issue any such release or
make any such statement without the prior written consent of the
other (such consent not to be unreasonably withheld, conditioned or
delayed).

 

10.4 Notices.
All notices, consents, waivers and other communications under this
Agreement must be in writing and shall be deemed to have been duly
given when (a) delivered by hand (with written confirmation of
delivery), (b) delivered to the addressee, if sent by an overnight
delivery service (prepaid, receipt requested), or (c) received or
rejected by the addressee, if sent by registered or certified mail
(postage prepaid, return receipt requested), in each case to the
appropriate addresses and representatives (if applicable) set forth
below (or to such other addresses and representatives as a Party
may designate by notice to the other Parties):

 

(i) 

If to Seller, then
to:

 

Fusion
Cloud Services, LLC

c/o
Fusion Connect, Inc.

420
Lexington Avenue, Suite 1718

New
York, New York 10170

Attn:
General Counsel

 

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

 

Kelley
Drye & Warren LLP

101
Park Avenue

New
York, New York 10178

Attn:
Jack Miles, Esq.

 

(ii) 

If to
Buyer:

 

Lingo
Management, LLC

3060
Peachtree Road NW, Suite 1065

Atlanta, GA
30305

Attn:
Michelle Ansley, President

 

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

 

Jones
Day

1420
Peachtree Street, N.E.

Suite
800

Atlanta, Georgia
30309-3053

Attention: William
B. Rowland

 

 

13

 

 

10.5 Waiver.
Neither the failure nor any delay by any Party in exercising any
right, power, or privilege under this Agreement or the documents
referred to in this Agreement shall operate as a waiver of such
right, power or privilege, and no single or partial exercise of any
such right, power, or privilege shall preclude any other or further
exercise of such right, power, or privilege or the exercise of any
other right, power, or privilege. To the maximum extent permitted
by applicable Law, (a) no waiver that may be given by a Party shall
be applicable except in the specific instance for which it is
given, and (b) no notice to or demand on one Party shall be deemed
to be a waiver of any right of the Party giving such notice or
demand to take further action without notice or
demand.

 

10.6 No
Survival of Representations and Warranties. The
representations and warranties of the Parties contained herein and
in any certificate or other writing delivered pursuant hereto shall
not survive the Closing Date; provided, that if there are one or
more Delayed Closings, the representations and warranties shall
survive until the last Delayed Closing.

 

10.7 Entire
Agreement; Amendment. This Agreement (including the
Exhibits) and the other Transaction Documents supersede all prior
agreements between Buyer and any Applicable Buyer Subsidiary, on
the one hand, and Seller and/or the Applicable Seller Subsidiaries,
on the other hand, with respect to its subject matter and
constitute a complete and exclusive statement of the terms of the
agreements between Buyer and the Applicable Buyer Subsidiary, on
the one hand, and Seller and each of the Applicable Seller
Subsidiaries, on the other hand, with respect to their subject
matter. For the avoidance of doubt, this Section 10.7 does not supersede
(i) the Agreement and Plan of Merger by and among Fusion
Telecommunications International, Inc., Fusion BCHI Acquisition
LLC, and Birch Communications Holdings, Inc. dated August 26, 2017,
as amended, (ii) the Transition Services Agreement by and among
Fusion Connect, Inc. and Lingo Management, LLC, dated May 4, 2018
or (iii) the Carrier Solutions Wholesale Master Services Agreement
by and between Fusion Connect, Inc. and Lingo Management, LLC,
dated May 4, 2018. This Agreement may not be amended except by a
written agreement executed by all of the Parties.

 

10.8 Assignment.
This Agreement, and the rights, interests and obligations
hereunder, shall not be assigned by either Party by operation of
Law or otherwise without the express written consent of the other
Party (which consent may be granted or withheld in the sole
discretion of such other Party); provided, however, that Buyer shall be
permitted, upon prior notice to Seller, to assign all or part of
its rights or obligations hereunder, including the rights to
acquire some or all of the Acquired Assets, to the Applicable Buyer
Subsidiaries.

 

10.9 Severability.
The provisions of this Agreement shall be deemed severable, and the
invalidity or unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof. If
any provision of this Agreement, or the application thereof to any
Person or any circumstance, is invalid or unenforceable, (a) a
suitable and equitable provision shall be substituted therefor in
order to carry out, so far as may be valid and enforceable, the
intent and purpose of such invalid or unenforceable provision and
(b) the remainder of this Agreement and the application of such
provision to other Persons or circumstances shall not be affected
by such invalidity or unenforceability.

 

10.10 Governing
Law; Consent to Jurisdiction and Venue; Jury Trial
Waiver.

 

(a) This Agreement
shall be governed by, and construed in accordance with, the Laws of
the State of Delaware applicable to contracts made to be performed
entirely in such state without regard to principles of conflicts or
choice of laws or any other Law that would make the Laws of any
other jurisdiction other than the State of Delaware applicable
hereto.

 

(b) The Parties consent
to service of process by mail (in accordance with Section 10.4) or any other
manner permitted by Law.

 

(c) TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY
HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN
ANY FORUM IN RESPECT OF ANY ISSUE, ACTION, CLAIM, CAUSE OF ACTION,
SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE
SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY ACKNOWLEDGES
THAT IT HAS BEEN INFORMED BY THE OTHER PARTY THAT THIS SECTION 10.10(c) CONSTITUTES A
MATERIAL INDUCEMENT UPON WHICH THE PARTIES ARE RELYING AND WILL
RELY ON IN ENTERING INTO THIS AGREEMENT AND ANY OTHER AGREEMENTS
RELATING HERETO OR CONTEMPLATED HEREBY. ANY PARTY HERETO MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 10.10(c) WITH ANY COURT
AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER
OF ITS RIGHT TO TRIAL BY JURY.

                                                                  

 

14

 

 

10.11 Counterparts.
This Agreement and any amendment hereto may be executed in one or
more counterparts, each of which shall be deemed to be an original
of this Agreement or such amendment and all of which, when taken
together, shall be deemed to constitute one and the same
instrument. Notwithstanding anything to the contrary in
Section 10.4,
delivery of an executed counterpart of a signature page to this
Agreement or any amendment hereto by email attachment shall be
effective as delivery of a manually executed counterpart of this
Agreement or such amendment, as applicable.

 

10.12 Parties
in Interest; No Third Party Beneficiaries. This Agreement
shall inure to the benefit of and be binding upon the Parties and
their respective successors and permitted assigns. This Agreement
is for the sole benefit of the Parties and their permitted assigns,
and nothing herein, express or implied, is intended to or shall
confer upon any other Person any legal or equitable benefit, claim,
cause of action, remedy or right of any kind.

 

10.13 Cumulative
Remedies. All rights and remedies of either Party are
cumulative of each other and of every other right or remedy such
Party may otherwise have at Law or in equity, and the exercise of
one or more rights or remedies shall not prejudice or impair the
concurrent or subsequent exercise of other rights or remedies,
including the right to specific performance of the terms
hereof

 

10.14 Non-Recourse.
Any claim or cause of action based upon, arising out of, or related
to this Agreement may only be brought against Persons that are
expressly named as Parties, and then only with respect to the
specific obligations set forth herein. No former, current or future
direct or indirect equityholders, controlling Persons,
stockholders, directors, officers, employees, members, managers,
agents, trustees, Affiliates, general or limited partners or
assignees of the Parties or of any former, current or future direct
or indirect equityholder, controlling Person, stockholder,
director, officer, employee, member, manager, agent, trustee,
Affiliate, general or limited partner or assignee of any of the
foregoing (collectively, but for the avoidance of doubt excluding
the Parties) will have any liability or obligation for any of the
representations, warranties, covenants, agreements, obligations or
liabilities of any Party under this Agreement or for any action
based on, in respect of, or by reason of, the transactions
contemplated hereby (including the breach, termination or failure
to consummate any of the transactions), in each case whether based
on contract, tort or strict liability, by the enforcement of any
assessment, by any legal or equitable action, by virtue of any
statute, regulation or applicable Law or otherwise and whether by
or through attempted piercing of the corporate, limited liability
company or partnership veil, by or through a claim by or on behalf
of a Party hereto or another Person or otherwise.

 

10.15  Effective
Time. The transactions contemplated by this Agreement shall
be deemed to be effective as of 12:01 a.m. (Eastern Time) on the
date hereof.

 

 

 [Signature page follows.]

 

 

15

 

 

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

 

 

 

FUSION
CLOUD SERVICES, LLC

 

By:
/s/ James P. Prenetta,
Jr.

Name:
James P. Prenetta, Jr.

Title:
Executive Vice President and General Counsel

 

 

LINGO
MANAGEMENT, LLC

 

By:
/s/ Michelle
Ansley

   
Name: Michelle Ansley

Title:
President

 

  

 

 

Exhibit A – Bill of Sale

 

BILL OF SALE

 

Pursuant to the
Asset Purchase Agreement (the “Agreement”), dated as the
1ST day of
February 2019, by and between Fusion Cloud Services, LLC (f/k/a
Birch Communications, LLC), a limited liability company formed
under the laws of the State of Georgia (“Seller”), and Lingo
Management, LLC, a limited liability company formed under the laws
of the State of Georgia (“Buyer”), and for good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller on behalf of itself and the Applicable
Seller Subsidiaries, does hereby unconditionally and irrevocably
sell, assign, transfer, convey and deliver unto Buyer and the
Applicable Buyer Subsidiaries, and their successors and assigns,
the Acquired Assets (as defined in the Agreement) identified in
Annex
A hereto, intending hereby to convey good, valid and
marketable title to all of the Acquired Assets listed in
Annex
A to Buyer free and clear of all Encumbrances (as defined in
the Agreement) to have and to hold those Acquired Assets from and
after the date hereof.

 

Seller
hereby covenants to and agrees with Buyer, its successors and
assigns, to execute, acknowledge and deliver to, or to cause to be
executed, acknowledged and delivered to Buyer, its successors and
assigns, all such further deeds, assignments, transfers,
conveyances, powers of attorney and assurances that may be
reasonably requested by Buyer for the selling, assigning,
transferring, conveying, delivering, assuring and confirming to
Buyer, its successors or assigns, or for aiding and assisting in
collecting or reducing to Buyer’s possession, the Acquired
Assets listed in Annex
A.

 

To the
extent of any conflict between the terms of this Bill of Sale and
the Agreement, the terms of the Agreement shall govern and
control.

 

This
Bill of Sale shall be binding upon the successors and assigns of
Seller and the Applicable Seller Subsidiaries and shall inure to
the benefit of the successors and assigns of Buyer and the
Applicable Buyer Subsidiaries.

 

The
provisions of Sections 10.2 (Transaction Expenses), 10.4 (Notices)
and 10.10 (Governing Law; Consent to Jurisdiction and Venue; Jury
Trial Waiver) of the Agreement shall apply to this Bill of Sale and
are hereby incorporated herein by this reference.

 

IN WITNESS WHEREOF, Seller has caused
this Bill of Sale to be duly executed and delivered as of this day
of , 2019.

 

 

	

FUSION CLOUD SERVICES, LLC

	
 

	

By:
__________________________

	

Name:
James P. Prenetta, Jr.

	

Title:
EVP and General Counsel

	
 

 

16

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