Document:

Exhibit 10.1

 

[Certain identified information has been excluded
from the exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.]

 

ASSET
PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this “Agreement”) is made and entered into as of October 4, 2021 by and among Precision Optics Corporation, Inc. a
Massachusetts corporation (the “Purchaser”), and Lighthouse Imaging, LLC a Maine limited liability company (the “Seller”),
and Anania & Associates Investment Company, LLC, the holder of a majority interest in Seller (the “Majority Member”).
The Purchaser, the Seller and the Majority Member are each referred to herein as a “Party” and collectively as the
“Parties.” Capitalized terms used but not otherwise defined in this Agreement shall have the meanings ascribed to them
in the Glossary attached as Exhibit A.

 

RECITALS

 

WHEREAS, the Seller is in
the business of owning and operating a medical optics and digital imaging manufacturing business “Lighthouse Imaging” located
at 765 Roosevelt Trail, Suite 9, Windham, ME 04062 (the “Business”); and

 

WHEREAS, upon the terms and
subject to the conditions set forth in this Agreement, the Seller desires to sell to the Purchaser and the Purchaser desires to purchase
from the Seller substantially all of the assets, properties and contractual rights of the Seller as more fully set forth herein.

 

NOW, THEREFORE, in consideration
of the respective representations, warranties and covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

SALE AND PURCHASE OF THE ASSETS

 

1.1                Business
Assets. Subject to the terms and conditions set forth herein, effective as of the Closing Date, the Seller hereby sells, transfers,
assigns and delivers to the Purchaser, and the Purchaser hereby purchases from the Seller, all right, title, ownership and interest in
the Business Assets, free and clear of all Encumbrances. The “Business Assets” means all of the assets, properties,
rights, privileges, claims and contractual rights of the Seller of every kind and nature, real and personal, tangible and intangible,
absolute or contingent, wherever located to the extent such Business Assets are in any way associated with or related to the Business,
including without limitation the assets set forth in Exhibit B (the “Asset Schedule”), but expressly excluding
the Excluded Assets. The Business Assets shall include, without limitation, the following assets of the Seller, but expressly excluding
the Excluded Assets:

 

(a)                 all
logos, trademarks, telephone numbers, fax numbers, websites, email addresses, customer lists, customer information, business information,
and the name and trade name “Lighthouse Imaging,” and all related names and derivations thereof (the “Name and Trade
Name”); 

 

(b)               
all Intellectual Property;

 

(c)               
all Business Tangible Property;

 

(d)               
all Accounts Receivable and all deposits and advance payments for services to be performed on or
after the Effective Time; 

 

(e)               
all of the Seller’s rights under the Contracts identified in Section 1.1(e) of the
Disclosure Schedule (the “Assumed Contracts”); 

 

 

 

    	 	1	 

     

    

 

(f)                
the Real Property Leases, including those security deposits held by landlords pursuant to the Real
Property Leases;

 

(g)               
to the extent transferable under applicable Law, all Business Permits used or held for use by the
Seller;

 

(h)               
originals or copies of all books and records;

 

(i)                
all Inventory; 

 

(j)                
to the extent transferable, all claims, demands, deposits, pre-payments, refunds, rebates, causes
of action, choses in action, rights of recovery, rights of set-off and rights of recoupment, including (i) rights under or pursuant to
all warranties, representations and guarantees made by suppliers or service providers, (ii) proceeds from insurance policies, and (iii) for
the breach, infringement or misappropriation, as the case may be, of any of the Intellectual Property;

 

(k)               
all of the Seller’s rights, if any, under employment, consulting, noncompetition, non-solicitation,
assignment of Intellectual Property, and similar agreements between the Seller and its current or former owners, employees, or contractors;

 

(l)                
all service contracts, license agreements, and contracts with customers and suppliers to the extent
such contracts are assignable and the Purchaser elects to be assigned such contracts and agreements; and

 

(m)             
all of the goodwill associated with the Business.

 

1.2                Excluded
Assets. The Seller shall retain all right, title and interest in and to the following assets (collectively, the “Excluded
Assets”):

 

(a)               
all cash and cash equivalents, including bank accounts, certificates of deposit and treasury bills;

 

(b)               
any assets of the Seller listed on Exhibit C (the “Excluded Asset Schedule);

 

(c)               
any equity interests in the Seller;

 

(d)               
the Seller’s corporate seal, Charter Documents, and any equity interest records;

 

(e)               
the Purchase Price to be paid by the Purchaser;

 

(f)                
all rights of the Seller under this Agreement and the Related Agreements;

 

(g)               
all claims, demands, refunds, rebates, causes of action, choses in action, rights of recovery, rights
of set-off and rights of recoupment to the extent relating to any Excluded Assets or Retained Liabilities; and

 

(h)               
all Contracts which are not identified as Assumed Contracts.

 

 

 

    	 	2	 

     

    

 

1.3                Purchase Price.

 

(a)               
Purchase Price. The Purchaser agrees, subject to the terms hereof:

 

(i)                    
In consideration for the purchase of the Business Assets from Seller, the Purchaser shall pay, or
cause to be paid, an amount equal to the Closing Payment, plus the Earn-Out Amount actually earned, plus the Issued Shares
(all as defined below) (collectively, the “Purchase Price”) as the same may be adjusted pursuant to this Agreement;
and

 

(ii)                   
to discharge when lawfully due the Assumed Liabilities.

 

(b)               
Payment of Purchase Price. The Purchaser shall pay to the Seller the Purchase Price as follows:

 

(i)                   
Subject to the various adjustments as of the Closing Date set forth in this Agreement, at the Closing,
three million two hundred fifty thousand Dollars ($3,250,000.00) (the “Closing Payment”); 

 

(ii)                 
Subject to Section 1.3(d) and Section 5.5, to the extent earned and at the time set forth in Section
1.3(d), up to one million five hundred thousand Dollars ($1,500,000.00) (the “Earn-Out Amount”); and

 

(iii)            
     At Closing the Purchaser shall issue (in book-entry form) to Seller, or its designees as set forth in Exhibit D, two million
five hundred thousand (2,500,000.00) unregistered shares of common stock in Purchaser (the “Issued Shares”). Seller
acknowledges and agrees that the Issued Shares shall be restricted from sale for a period of at least six (6) months following Closing
in accordance with Rule 144 promulgated under the Securities Act. 

 

(c)               
Proration Adjustment. No fewer than three (3) Business Days prior to the Closing, the Parties
shall prorate and apportion, on a per diem basis, as of the close of business the day before the Effective Time, the real and personal
property taxes and assessments for the Business Assets, based upon the last available tax statement, amounts owing for utilities and similar
expenses, and amounts owed under any capital leases that are Assumed Contracts (collectively, the “Proration Amount”).
The Purchase Price and the Closing Payment shall be increased or decreased, as the case may be, by the Proration Amount, and such adjustments
shall be reflected on the Settlement Statement. 

 

(d)               
Earn-Out Amount.

 

(i)                     Earn-Out.
With respect to each Earn-Out Year (as defined below), in the event that the Gross Profits Threshold (as defined below) for such Earn-Out
Year is achieved or exceeded, then the Seller shall be entitled to an earn-out payment equal to seven-hundred fifty thousand Dollars
($750,000.00) (the “Annual Earn-Out Amount”), as further illustrated in the chart below:

 

	Earn-Out Year	Gross Profit Threshold 	Earn-Out Amount
	10/1/2021-9/30/2022	$[____]	$750,000.00
	10/1/2022-9/30/2023	$[____]	$750,000.00

 

For purposes of
this Agreement, “Earn-Out Year” means that period of time commencing on October 1 of such year and concluding on September
30 of the following calendar year.

 

For purposes of
this Agreement, “Gross Profits Threshold” means the amount of Gross Profits set forth in the chart in Section 1.3(d)(i)
that must be achieved or exceeded in order for the Seller to earn the Annual Earn-Out Amount for such Earn-Out Year.

 

 

 

    	 	3	 

     

    

 

For purposes of
this Agreement, “Gross Profits” means gross sales to the customers of the Business (as identified on Schedule 1.3(d))
less all cost of goods sold, credits and rebates calculated in accordance with GAAP consistent with the past practices of the Seller.

 

(ii)             Partial Earn-Out. If Seller does not earn the Annual Earn-Out Amount in either Earn-Out Year
pursuant to Section 1.3(d)(i), Seller shall be entitled to a partial payment of such Annual Earn-Out Amount as follows:

 

(1)    
 If Seller achieves [____] percent ([____]%) of the Gross Profit Threshold (the “First Year Gross Profit Floor”)
for the first Earn-Out Year, Seller shall be entitled to an earn out payment equal to [____] percent ([____]%) of the Annual Earn-Out
Amount. In addition, each [____] percent ([____]%) of Gross Profit Threshold greater than the First Year Gross Profit Floor, Seller shall
be entitled to an additional earn out payment equal to [____] percent ([____]%) of the Annual Earn-Out Amount for the first Earn-Out Year.
For example, if the Gross Profits for the first Earn-Out Year equals [____] Dollars ($[____]), the Earn-Out Amount for the first Earn-Out
Year shall be [____] Dollars ($[____]). No Earn-Out Amount shall be earned or paid unless the Gross Profits for the first Earn-Out Year
equals or exceeds the First Year Gross Profit Floor.

 

(2)    
 If Seller achieves [____] percent ([____]%) of the Gross Profit Threshold (the “Second Year Gross Profit Floor”)
for the second Earn-Out Year, Seller shall be entitled to an earn out payment equal to [____] percent ([____]%) of the Annual Earn-Out
Amount. In addition, each [____] percent ([____]%) of Gross Profit Threshold greater than the Second Year Gross Profit Floor, Seller shall
be entitled to an additional earn out payment equal to [____] percent ([____]%) of the Annual Earn-Out Amount for the second Earn-Out
Year. For example, if the Gross Profits for the second Earn-Out Year equals [_____] Dollars ($[____]), the Earn-Out Amount for the second
Earn-Out Year shall be [____] Dollars ($[____]). No Earn-Out Amount shall be earned or paid unless the Gross Profits for the second Earn-Out
Year equals or exceeds the Second Year Gross Profit Floor.

 

(iii)           Earn-Out Statement. Within sixty (60) days after the end of each Earn-Out Year, Purchaser
shall prepare and deliver to the Seller a statement setting forth, in reasonable detail, Purchaser’s good faith calculation of the
Gross Profits for such Earn-Out Year (the “Earn-Out Statement”). Seller shall have a period of thirty (30) days to
review such Earn-Out Statement (the “Review Period”).  During such Review Period, the Purchaser shall provide
the Seller and its representatives with prompt access to such books, records, materials, information and personnel as the Seller may reasonably
request to confirm the accuracy of the Earn-Out Statement. If the Gross Profits set forth in such Earn-Out Statement equal or exceed the
Gross Profits Threshold for such Earn-Out Year, then Purchaser shall pay to Seller the Annual Earn-Out Amount for such Earn-Out Year via
wire transfer of immediately available funds within fifteen (15) days of the delivery of the Earn-Out Statement; provided, however,
such Earn-Out Amount shall not be deemed accepted by Seller until the conclusion of the Review Period, subject to any dispute per Section
1.3(d)(iv) below. If the Gross Profits set forth in such Earn-Out Statement do not equal or exceed the Gross Profits Threshold
for such Earn-Out Year, Purchaser shall not pay to Seller any Annual Earn-Out, but the Seller shall have the Review Period to evaluate
the calculation and shall have the right to proceed pursuant to Section 1.3(d)(iv) below.

 

(iv)           Earn-Out Statement Dispute. If the Seller disputes the calculation of Gross Profits in an
Earn-Out Statement, then the Seller shall provide to Purchaser, no later than the expiration of the Review Period, a written notice (the
“Dispute Notice”) setting forth, in reasonable detail, each such disputed item, along with (to the extent practicable
given the information made available by the Purchaser to the Seller) the Seller’s calculation of Gross Profits. If the Seller
delivers a Dispute Notice prior to the expiration of the Review Period, Purchaser and the Seller will, for a period of thirty (30) days
thereafter, attempt in good faith to resolve any disputed items identified in such Dispute Notice.  Failing resolution pursuant
to the foregoing, either Purchaser or Seller may refer the unresolved disputed items (each, a “Disputed Item”) for
final binding resolution to a neutral accounting firm to be mutually selected by the Parties (the “Accounting Firm”)
in the event a Dispute Notice is provided to Purchaser.  The Accounting Firm shall be required to resolve the disagreements with
or relating to the calculation of Gross Profits in accordance with the terms and provisions of this Agreement.  The Accounting Firm
shall act as an expert (and not an arbitrator) to resolve each Disputed Item.  In submitting a dispute to the Accounting Firm, each
of Purchaser and the Seller shall concurrently furnish, at its own respective expense, to the Accounting Firm and the other Party such
documents and information as the Accounting Firm may reasonably request.  Each of Purchaser and the Seller may also furnish to the
Accounting Firm such other information and documents as it deems relevant, with copies of such submission and all such documents and
information being concurrently given to the other Party.  The fees and expenses of such Accounting Firm shall be borne by the losing
party in such proceeding (as finally determined by the Accounting Firm).  In the event that, after resolution of all Disputed Items
in accordance with this Section 1.3(d)(iii), the finally determined Earn-Out Amount exceeds the Earn-Out Amount paid by the Purchaser
concurrently with the delivery of the Earn-Out Statement, then the Purchaser shall pay, or cause to be paid, to the Seller such excess
amount no later than fifteen days (15) after the date of such final determination under this 1.3(d)(iv).

 

 

 

    	 	4	 

     

    

 

(v)            Conduct
of Business. During the Earn-Out Period, Purchaser shall have the right and power to control all aspects of the business and operations
of the Business and shall be entitled to take such actions, or refrain from taking any actions, as Purchaser deems appropriate in its
sole discretion. 

 

(e)               
Working Capital Adjustment.

 

(i)             Preliminary Statement. No fewer than three (3) Business Days prior to the Closing, the Seller
shall prepare and deliver to the Purchaser a statement, certified by an executive officer of the Seller (the “Preliminary Statement”),
containing (i) an estimated balance sheet of the Company as of the Effective Time, prepared in good faith and in accordance with GAAP
(the “Estimated Balance Sheet”), and (ii) based thereon, a good faith estimate of the Working Capital that will be
delivered to the Purchaser at the Closing (the “Estimated Working Capital”), in each case, together with work papers
or other supporting documentation showing in reasonable detail the preparation or calculation thereof. The Estimated Balance Sheet, including
the Estimated Working Capital, shall be subject to the Purchaser’s review and approval.

 

(ii)             Estimated Adjustments. The Closing Payment shall be adjusted, plus or minus, dollar
for dollar, by the amount by which the Estimated Working Capital set forth in the Preliminary Statement exceeds or is less than the Target
Working Capital. Any such adjustment shall be reflected on the Settlement Statement. 

 

(iii)           Post-Closing Adjustments. Within ninety (90) calendar days after the Closing Date, the Purchaser
will prepare and deliver to the Seller a statement (the “Closing Statement”) setting forth the actual Working Capital
delivered to the Purchaser at the Closing (the “Final Working Capital”), together with work papers or other supporting
documentation showing in reasonable detail the preparation or calculation thereof. 

 

(1)            If the Final Working Capital is greater than the Estimated Working Capital, then the Purchaser shall pay to the Seller an amount
equal to the amount by which the Final Working Capital exceeds the Estimated Working Capital.

 

(2)            If the Final Working Capital is less than the Estimated Working Capital, then the Seller shall pay to the Purchaser an amount equal
to the amount by which the Estimated Working Capital exceeds the Final Working Capital.

 

(3)            Any payment to be made pursuant to this Section 1.3(e)(iii) shall be paid within five (5) Business Days after the final
determination of the Final Working Capital pursuant to Section 1.3(e)(iv).

 

(iv)           Objection
to Closing Statement. Seller shall have a period of thirty (30) days to review the Closing Statement (the “Closing Review
Period”). During such Closing Review Period, the Purchaser shall provide the Seller and its representatives with prompt
access to such books, records, materials, information and personnel as the Seller may reasonably request to confirm the accuracy of the
Closing Statement. If the Seller disputes the calculation of Closing Statement, the parties shall handle that dispute pursuant to the
process set forth in Section 1.3(d)(iv); provided, however, that all references to “Gross Profits” and
“Earn-Out Amounts” shall instead refer to the “Final Working Capital” and all references to an “Earn-Out
Statement” shall instead refer to the “Closing Statement.”

 

1.4                Assumption of Liabilities.

 

(a)               
Assumed Liabilities. As of the Closing Date, the Purchaser will assume only the following
liabilities, commitments and other obligations of the Seller (collectively, the “Assumed Liabilities”): all Liabilities,
commitments and other obligations arising after the Effective Time pursuant to the Assumed Contracts, but only to the extent such liabilities
and obligations (i) arise after the Effective Time, (ii) do not arise from or relate to any breach by the Seller of any provision of any
of such Assumed Contracts, and (iii) do not arise from or relate to any event, circumstance or condition occurring or existing on or prior
to the Effective Time that, with notice or lapse of time, would constitute or result in a breach of any of such Assumed Contracts.

 

 

 

    	 	5	 

     

    

 

(b)               
Retained Liabilities. Anything to the contrary in this Section 1.4 notwithstanding,
the Parties expressly agree that, except with respect to the Assumed Liabilities, the Purchaser will not assume or otherwise become liable
for any Liabilities of the Seller of any nature whatsoever, all of which shall be retained by the Seller (collectively, the “Retained
Liabilities”), whether or not any of the same have been disclosed to the Purchaser and whether or not any of the same relate
to the Business Assets. The Seller will discharge when lawfully due the Retained Liabilities. 

 

1.5               Closing. The sale and purchase of the Business Assets shall occur (the “Closing”) on the date
of this Agreement. Closing shall take place remotely by exchange of documents and signatures (or their electronic counterparts) simultaneously
with the execution of this Agreement, or at such other time or place or in such other manner as Seller and Purchaser may mutually agree
upon in writing. The date on which Closing occurs is referred to as the “Closing Date”. The consummation of the transactions
contemplated by this Agreement shall be deemed to have occurred at 12:01 a.m. on the Closing Date; provided, however, that the consummation
of the transactions contemplated by this Agreement, solely for tax and accounting purposes, shall be deemed to have occurred at 12:01
a.m. on October 1, 2021 (the “Effective Time”).

 

1.6               Deliveries by the Seller. In addition to any other documents to be delivered under other provisions of this Agreement,
at the Closing, the Seller shall deliver or cause to be delivered to the Purchaser each of the following:

 

(a)               
a Bill of Sale, in substantially the form attached hereto as Exhibit E (the “Bill
of Sale”) for the Business Tangible Property, executed by an authorized officer of the Seller;

 

(b)               
all consents, waivers or approvals required in order to properly effectuate the assignment of the
Assumed Contracts to the Purchaser, or the consummation of the transactions pursuant to this Agreement, all in a form or forms reasonably
acceptable to the Purchaser;

 

(c)               
an Assignment and Assumption Agreement, in substantially the form attached hereto as Exhibit F
(the “Assumption Agreement”) executed by the Seller;

 

(d)               
an Assignment and Assumption of Lease, in substantially the form attached hereto as Exhibit G
(the “Lease Assignment”) executed by the Seller and the landlord;

 

(e)               
the Restrictive Covenants Agreements, in substantially the form attached hereto as Exhibit H
(the “Restrictive Covenants Agreement”) executed by [____];

 

(f)                 a
Settlement Statement, in substantially the form attached hereto as Exhibit I (the “Settlement Statement”)
setting forth the various adjustments to the Closing Payment;

 

(g)               
an Assignment of Intellectual Property, in substantially the form attached hereto as Exhibit J
(the “IP Assignment”) executed by the Seller;

 

(h)               
the 8-K Financial Information; 

 

(i)                
the Lighthouse Director Side Letter executed by the Seller and the Majority Member;

 

(j)                
a certificate, signed by an authorized [manager/officer] of the Seller, dated as of the Closing Date,
certifying (i) the accuracy, completeness and full force and effect of the Charter Documents of the Seller attached thereto as an exhibit;
(ii) (A) the resolutions duly adopted by the managers and the members of the Seller authorizing and approving the execution, delivery
and performance of this Agreement and the Related Agreements and the consummation of the transactions contemplated hereby and thereby
and (B) that such resolutions have not been rescinded or modified and remain in full force and effect as of the Closing Date; and (iii)
the incumbency of the [manager/officer(s)] of the Seller executing this Agreement and the other Related Agreements, including specimen
signatures;

 

 

 

    	 	6	 

     

    

 

(k)               
a good standing certificate for the Seller issued by the appropriate Governmental Authority of the
state of the Seller’s organization, dated as of a recent date; 

 

(l)                
evidence reasonably satisfactory to the Purchaser of a full release of all security interests held
by third parties in any of the Business Assets; 

 

(m)               evidence reasonably satisfactory to the Purchaser of full repayment and satisfaction of Closing Indebtedness;

 

(n)               
Uniform Commercial Code lien searches and such other searches as may be reasonably requested by the
Purchaser to confirm that there are no financing statements, judgments, taxes or other Liens outstanding against the Seller or any of
the Business Assets as of the Closing; 

 

(o)               
tax clearance certificates from the taxing authorities in the jurisdictions that impose Taxes on
the Seller or where the Seller has a duty to file Tax returns in connection with the transactions contemplated by this Agreement and evidence
of the payment in full or other satisfaction of any Taxes owed by the Seller in those jurisdictions;

 

(p)               
An affidavit of non-foreign status of the Seller and the Majority Member, dated as of the Closing
Date, in form and substance required under Section 1445 of the Code such that the Purchaser is exempt from withholding any portion of
the Purchase Price; and

 

(q)                such
other separate documents or instruments of sale, assignment or transfer as the Purchaser shall reasonably request, including registration
transfers for Domain Names used or held for use by the Seller for the Business, to evidence the consummation of the transactions set
forth herein.

 

1.7                Deliveries by the Purchaser. In addition to any other documents to be delivered under other provisions of this Agreement,
at the Closing, the Purchaser shall deliver or cause to be delivered to the Seller each of the following:

 

(a)               
the Closing Payment;

 

(b)               
the Issued Shares delivered to the Seller or its designees;

 

(c)               
the Assumption Agreement executed by the Purchaser;

 

(d)               
the Lease Assignment executed by the Purchaser; 

 

(e)               
the Restrictive Covenants Agreements executed by the Purchaser;

 

(f)                
the IP Assignment executed by the Purchaser;

 

(g)               
the Lighthouse Director Side Letter executed by the Purchaser;

 

(h)               
the Settlement Statement executed by the Purchaser; and

 

(i)                
a certificate, signed by an authorized officer of the Purchaser, dated as of the Closing Date, certifying
(i) (A) the resolutions duly adopted by the Board of Directors of the Purchaser or its parent authorizing and approving the execution,
delivery and performance of this Agreement and the Related Agreements and the consummation of the transactions contemplated hereby and
thereby and (B) that such resolutions have not been rescinded or modified and remain in full force and effect as of the Closing Date;
and (ii) the incumbency of the officer(s) of the Purchaser executing this Agreement and the other Related Agreements, including specimen
signatures.

 

 

 

    	 	7	 

     

    

 

1.8               Allocation
of Purchase Price. The Purchase Price shall be allocated among the Business Assets in accordance with the methodology set forth
on Section 1.8 of the Disclosure Schedule. The Parties shall make consistent use of this allocation for all purposes (including
Tax and financial accounting) and in any and all filings, declarations and reports with the Internal Revenue Service in respect thereof.

 

1.9               Withholding
Tax. The Purchaser shall be entitled to deduct and withhold from the Purchase Price all taxes that the Purchaser may be required
to deduct and withhold under any applicable Tax law. All such withheld amounts shall be treated as delivered to the Seller hereunder.

 

1.10      
      Transfer Restrictions; Share Certificates; Book Entry Shares. 

 

(a)                Any shares comprising the Issued Shares shall not be sold, pledged, or otherwise transferred, and
the Seller and any of its designees shall not , directly or indirectly, unless otherwise provided herein, (a) offer, sell, agree to offer
or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, assign, transfer, borrow
or otherwise dispose of any Issued Shares or otherwise publicly disclose the intention to do so, except where such transfer complies with
the applicable securities laws. Seller and the designees agree that Purchaser shall instruct Purchaser’s transfer agent to issue
stop-transfer instructions with respect to the Issued Shares and any such sale, pledge, or transfer, except upon the conditions specified
in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. The Seller and any designee
will cause any proposed purchaser, pledgee, or transferee of such shares to agree to take and hold such securities subject to the provisions
and upon the conditions specified in this Agreement and all applicable federal and state laws, including the Securities Act.

 

(b)               The
holder of any shares comprising the Issued Shares, by acceptance of ownership thereof, agrees to comply in all respects with the provisions
of this Section 1.10. Before any proposed sale, pledge, or transfer of any such shares, unless there is in effect a registration statement
under the Securities Act covering the proposed transaction, the holder thereof shall give notice to the Purchaser of such holder’s
intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances of the proposed sale,
pledge, or transfer in sufficient detail and, if reasonably requested by the Purchaser, shall be accompanied at such holder’s expense
by obtaining a written opinion of corporate counsel for Purchaser, to the effect that the proposed transaction may be effected without
registration under the Securities Act. The Purchaser agrees to use reasonable efforts to effectuate a registration statement in connection
with the Issued Shares within a reasonable period of time after the Closing Date. 

 

(c)                All
certificates representing the Issued Shares or any other securities issued in respect of such shares upon stock split, stock dividend,
recapitalization, merger, consolidation or similar event, shall bear the following legend (in addition to any legend required by applicable
state securities laws):

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT AND SUCH REGISTRATION STATEMENT
REMAINS EFFECTIVE, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) COMPANY COUNSEL HAS OPINED THAT SUCH TRANSFER MAY LAWFULLY
BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT.”

 

In addition, with respect
to any Issued Shares or any other securities issued in respect of such shares that are issued in book-entry form, a notation comparable
to the foregoing legend shall be reflected on the books and records of the Purchaser’s transfer agent.

 

 

 

 

    	 	8	 

     

    

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLER AND THE MAJORITY MEMBERS

 

Except as specifically set
forth in the Disclosure Schedule attached hereto as Exhibit K (the “Disclosure Schedules”), the Seller and the
Majority Member, jointly and severally, hereby make the representations and warranties set forth in this ARTICLE II to the Purchaser as
of the date hereof; provided, however, the Seller shall only make the representations and warranties set forth in. Section 2.31 in the
event that the Seller is actually issued some or all of the Issued Shares in connection with the Closing.

 

2.1             
Organization and Qualification. The Seller is a limited liability company duly organized, validly existing and in
good standing under the laws of the state of its organization. The Seller’s members identified in Section 2.1 of the Disclosure
Schedules own in the aggregate all of the issued and outstanding equity interest of the Seller. The Seller has the company power to
own the Business Assets and to carry on the Business as now being conducted, and is duly qualified to do business and is in good standing
in each jurisdiction in which the failure to be so qualified and in good standing would be material. The Seller has provided to the Purchaser
a true and correct copy of its operating agreement and articles of organization, in each case as amended to date, and as in full force
and effect on the date hereof (collectively, the “Charter Documents”).

 

2.2             
Authority. (a) The Seller has all requisite power and authority to enter into this Agreement and any Related Agreements
to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement
and any Related Agreements to which the Seller is a party and the consummation of the transactions contemplated hereby and thereby have
been duly authorized by all necessary company action on the part of the Seller, and no further action is required on the part of the Seller
to authorize the Agreement and any Related Agreements to which the Seller is a party and the transactions contemplated hereby and thereby.
This Agreement and each of the Related Agreements to which the Seller is a party have been duly executed and delivered by the Seller and
assuming the due authorization, execution and delivery by the other parties hereto and thereto, constitute the valid and binding obligations
of the Seller, enforceable against it in accordance with their respective terms, except to the extent that such enforceability may be
limited by the effect, if any, of (i) any applicable bankruptcy, reorganization, insolvency, moratorium or other Law affecting the enforcement
of creditors’ rights generally, and (ii) general principles of equity, regardless of whether such enforceability is considered in
a proceeding at law or in equity.

 

(b)               The
Majority Member has full power, authority and legal right and capacity to enter into and perform its obligations under this Agreement
and each other Related Agreement to which the Majority Member is or will be a party and to consummate the transactions contemplated hereby
and thereby. This Agreement and the other Related Agreements to which the Majority Member is a party have been duly executed and delivered
by the Majority Member and are legal, valid and binding obligations of the Majority Member, enforceable against the Majority Member in
accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights in general and general principles of equity.

 

2.3             
Consents and Approvals; No Violation. Except as set forth in Section 2.3 of the Disclosure Schedules, no filing
or registration with, and no permit, authorization, consent or approval of, any Party, including any Governmental Authority, is necessary,
and the Seller is not required to give any notice to any Person, for the consummation of the transactions contemplated by this Agreement.
Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the compliance by
the Seller with any of the provisions hereof do, (i) conflict with or result in any breach of any provision of the Charter Documents,
(ii)  result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give
rise to any right of termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any Business Permit,
note, Contract, commitment, bond, mortgage, indenture, license, lease, pledge agreement or other instrument or obligation to which the
Seller is a party or by which the Seller, the Business or any of its assets may be bound (including any Assumed Contract), (iii) give
rise to any lien, charge or other Encumbrance on any of the Business Assets, or (iv) violate any Law.

 

 

 

 

    	 	9	 

     

    

 

2.4             
Financial Statements.

 

(a)                The
Seller has provided the Purchaser true, correct and complete copies of (i) the Seller’s audited financial statements, prepared
by an independent accounting firm for the two most recent fiscal years and (ii) the Seller’s internal interim financial statements
as of July 31, 2021 (the “Balance Sheet Date”) (collectively, the “Financial Statements”). The
Financial Statements are accurate and complete, have been prepared in accordance with GAAP applied on a consistent basis throughout the
periods covered and present fairly in all material respects the financial position of the Seller as of the date thereof and the results
of operations and cash flows of the Seller for the periods covered thereby. The Financial Statements reflect all revenues earned through
the Balance Sheet Date, regardless whether such revenues have been billed or collected. As of the respective dates of the Financial Statements,
there are no Liabilities, contingent or definite, of the Seller that are not taken into account or otherwise disclosed in the Financial
Statements. 

 

(b)                The Seller 
has established and maintains a system of “internal controls over financial reporting” (as defined in Rules 13a-15(f) and
15d-15(f) of the Exchange Act) that is sufficient to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with GAAP including policies and procedures that: (i) require
the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of
the Seller ; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP and that receipts and expenditures of the Seller are being made only in accordance with
appropriate authorizations of the Seller’s management and the Seller’s board of directors; and (iii) provide assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the assets of the Seller.

 

2.5             
Undisclosed Liabilities. The Seller does not have any Liabilities of any nature with respect to the Business (whether
accrued, absolute, matured or unmatured, fixed or contingent, known or unknown, or otherwise) other than (i) those set forth or adequately
provided for in the Financial Statements (and the related notes thereto) as of the Balance Sheet Date, and (ii) those incurred in
the ordinary course of business consistent with past practice since the Balance Sheet Date and which are not individually or in the aggregate,
material in amount.

 

2.6             
Absence of Changes. Since the Balance Sheet Date, (i) the Seller has in all material respects conducted its Business
in the ordinary course consistent with past practice; (ii) there has not occurred any change, event or condition that is a Material
Adverse Effect or could reasonably be expected to result in a Material Adverse Effect; (iii) there has not been any material destruction,
damage or loss suffered by the Seller (whether or not covered by insurance) adversely affecting the Seller; and (iv) there has not been
any material change in cash management practices and policies, practices and procedures with respect to collection of Accounts Receivable,
establishment of reserves for uncollectible Accounts Receivable, accrual of Accounts Receivable, inventory control, prepayment of expenses,
payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer deposits.

 

2.7             
Customers and Vendors. 

 

(a)   
          The Seller has not received any notice indicating that, nor to the Knowledge of the Seller is there
a material likelihood that, any customer may cease dealing with the Seller or may otherwise materially reduce the volume of business transacted
by such Person with the Seller below historical levels. Section 2.7(a) of the Disclosure Schedules sets forth a true, correct and
complete list of the Seller’s top ten (10) customers (based upon the dollar amount of payments to Seller) for calendar years 2019,
2020 and the month period ending June 30, 2021.

 

(b)              
The Seller has not received any notice indicating that, nor to the Knowledge of the Seller is there
a material likelihood that, any vendor may cease dealing with the Seller or may otherwise materially reduce the volume of business transacted
by such Person with the Seller below historical levels. Section 2.7(b) of the Disclosure Schedules sets forth a true, correct and
complete list of the Seller’s top ten (10) vendors (based upon the dollar amount of payments by Seller) for calendar years 2019,
2020 and the month period ending June 30, 2021.

 

 

 

 

    	 	10	 

     

    

 

2.8               Title
to Business Assets; Encumbrances. The Seller has good and marketable title to all of the Business Assets, free and clear of all
Encumbrances, except for Permitted Encumbrances. No Affiliate of the Seller or any other Person holds any interest in any of the Business
Assets. The Business Assets collectively constitute all of the properties, rights, interests and other tangible and intangible assets
necessary to enable the Purchaser to conduct the Business following the Closing Date in the manner in which the Business is currently
being conducted and planned to be conducted. All of the items of Business Tangible Property owned or leased by the Seller: (a) have been
maintained in accordance with normal industry practice; (b) in good operating condition and repair, subject only to ordinary wear and
tear; and (c) are useable and fit for their purpose in which they are presently used. The Seller has sole and exclusive ownership, free
and clear of any Liens, of all Customer Information, and no person other than the Seller possesses any claims or rights with respect
to use of the Customer Information.

 

2.9             
Material Contracts. Section 2.9 of the Disclosure Schedules sets forth a true, complete and correct list of
each of the following material written or oral Contracts (the “Material Contracts”):

 

(a) any employment agreement,
independent contractor agreement, consulting agreement, severance agreement, change in control agreement, bonus agreement, offer letter
or other Contract relating to the employment or engagement of any employee, independent contractor, consultant or agent;

 

(b) any Contract relating
to the purchase, license or lease of supplies, equipment, assets, property or products from, or the performance of services by, a third-party
involving payment in excess of $35,000;

 

(c) any Contract relating
to the sale, license or lease of supplies, products, assets or property to any third party, or the performance of services by Seller,
involving payment in excess of $35,000; (d) any Contract relating to any license, franchise, software or Intellectual Property, or any
ideas, technical assistance or other know-how (other than “off the shelf” shrink-wrap software licenses);

 

(e) any Contracts relating
to capital expenditures involving payment in excess of $25,000 individually or in the aggregate;

 

(f) any Contracts relating
to the grant to any third party of a Lien and Encumbrance on any assets;

 

(g) any Contracts relating
to any joint venture or partnership or other Contract providing for the sharing of profits;

 

(h) any Contract restricting
or limiting the freedom of Seller to compete or participate in any manner, business or territory;

 

(i) any collective
bargaining agreement;

 

(j) any management, management
services, services, administrative services or other Contracts relating to the provision or receipt of any management, business, marketing,
payroll, human resources, administrative or other support services;

 

(k) any other Contract that
requires performance for a period of more than ninety (90) days or that involves payments in excess of $25,000;

 

(l) any supplier agreements,
master services agreements, or developer agreements;

 

(m) any other Contract
material to Seller.

 

 

 

 

    	 	11	 

     

    

 

Seller has delivered or made
available to Purchaser true, correct and complete copies of each of the written Material Contracts and a description of the material terms
of any material oral Material Contract. Except as set forth in Section 2.9 of the Disclosure Schedules each of the Material Contracts
is with an unrelated third party, was entered into on an arm’s length basis in the ordinary course of business, and is in full force
and effect in accordance with the terms thereof. There is no pending or, to the Knowledge of Seller, threatened cancellation or termination
of any of the Material Contracts, and there are no outstanding disputes under any of the Material Contracts. The Material Contracts are
enforceable by or against the Seller thereto and, against each other party thereto. There is no existing or claimed default or breach
under any of the Assumed Contracts, or any existing event that to the Knowledge of Seller, with notice or lapse of time or both, would
constitute a default or breach by the Seller or any other party to such Material Contracts, including the transactions contemplated hereunder.
Following the Closing Date, the Purchaser will be permitted to exercise all of its rights under the Assumed Contracts without the payment
of any additional amounts or consideration other than ongoing fees, royalties or payments which the Seller would otherwise be required
to pay pursuant to the terms of such Assumed Contracts had the transactions contemplated by this Agreement not occurred.

 

2.10         
   Litigation.

 

(a)               
There are no pending Proceedings, nor has the Seller received any threats by any Person to commence
any Proceeding:

 

(i)                    
that involves the Seller or that otherwise relates to or might affect the Seller, the Business or
any of the Business Assets (whether or not the Seller is named as a party thereto); or

 

(ii)                  
that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise
interfering with, any of the transactions contemplated by this Agreement or the Related Agreements.

 

(b)               
To the Knowledge of the Seller, no event has occurred, and no claim, dispute or other condition or
circumstance exists, that might directly or indirectly give rise to or serve as a basis for the commencement of any such Proceeding.

 

(c)               
There is no Order to which any of the Business Assets is subject. There is no Order to which the
Seller is subject.

 

(d)               
There is no proposed Order that, if issued or otherwise put into effect, (i) may have a Material
Adverse Effect on the ability of the Seller to comply with or perform any covenant or obligation under this Agreement or any of the Related
Agreements, or (ii) may have the effect of preventing, delaying, making illegal or otherwise materially interfering with any of the
transactions contemplated by this Agreement or the Related Agreements. 

 

2.11             Taxes.

 

(a)               
All Tax Returns required to be filed by the Seller for any period prior to the Effective Time have
been, or will be, timely filed. Such Tax Returns are, or will be, true, complete and correct in all respects. All Taxes due and owing
by the Seller (whether or not shown on any Tax Return) have been, or will be, timely paid.

 

(b)               
The Seller has withheld and paid each Tax required to have been withheld and paid in connection with
amounts paid or owing to any Business Employee, independent contractor, creditor, customer, shareholder or other party, and complied with
all information reporting and backup withholding provisions of applicable Law.

 

(c)               
No extensions or waivers of statutes of limitations have been given or requested with respect to
any Taxes of the Seller.

 

(d)               
All deficiencies asserted, or assessments made, against the Seller as a result of any examinations
by any taxing authority have been fully paid.

 

 

 

 

    	 	12	 

     

    

 

(e)               
The Seller is not a party to any Proceeding by any taxing authority. There are no pending or threatened
Proceedings by any taxing authority.

 

(f)                
There are no Encumbrances for Taxes upon any of the Business Assets nor is any taxing authority in
the process of imposing any Encumbrances for Taxes on any of the Business Assets (other than for current Taxes not yet due and payable).

 

(g)               
The Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

 

2.12             Employees.

 

(a)                Section
2.12(a) of the Disclosure Schedules contains a true, correct and complete list of (i) the employees currently employed by the Seller
(the “Business Employees”), including any agreement with any such Employee, job title (if any), full or part-time status,
date of hire, citizenship status, and a description of the rate and nature of all current salary or wages payable by the Seller to each
Employee, including all accrued sick, personal and vacation days as of the date of this Agreement, all fringe benefits and all other items
owed to such Employees, (ii) each consultant or independent contractor who currently provides services to the Seller, and (iii) all personnel
policies, manuals, employee handbooks, summary plan descriptions and similar materials pertaining to the Business. Except as specifically
described in Section 2.12(a) of the Disclosure Schedules, there are no other forms of compensation paid to any Employee. Except
as specifically described in Section 2.12(a) of the Disclosure Schedules, all Employees currently employed by the Seller are actively
at work (or on vacation) and no Employee is currently on a leave of absence, layoff, suspension, sick leave, workers’ compensation,
short or long-term disability, family leave, military leave, or otherwise not actively performing his or her work during all normally
scheduled business hours (other than vacation). The Seller is not subject to any collective bargaining agreement. There is no labor strike,
dispute, slowdown or work stoppage or lockout pending or, to the Knowledge of the Seller, threatened against or affecting the Business
and during the three (3) years preceding the Closing Date there has been no such action. No union organization campaign is in progress
with respect to any of the Employees, and no question concerning representation exists respecting such Employees. Each person classified
by the Seller as an independent contractor satisfies and has satisfied the requirements of any applicable Law to be so classified, and
the Seller has fully and accurately reported such independent contractors’ compensation on IRS Forms 1099 when required to do so.

 

(b)               The
Seller has been and is in compliance with all Laws respecting employment and employment practices, terms and conditions of employment
and wages and hours, including without limitation any such Laws respecting employment discrimination, workers’ compensation, family
and medical leave, the Immigration Reform and Control Act, the Americans with Disabilities Act, human rights, employment standards, safety
and health, tax reporting and withholding with respect to wages and other compensation, and labor relations. There is not now, nor within
the three (3) years preceding the Closing Date has there been, any unfair labor practice complaint against the Seller pending or, to the
Knowledge of the Seller, threatened before any labor relations board or any other comparable authority. The Seller has not incurred and
does not reasonably expect to incur any Liability under the WARN Act and the regulations promulgated thereunder or any similar state or
local law.

 

2.13             Employee
Benefits.

 

(a)               Except
as disclosed on Section 2.13(a) of the Disclosure Schedules, neither the Seller, nor any of its ERISA Affiliates, maintains or
sponsors, or has any Liability, contingent or otherwise, with respect to, any Benefit Arrangement. The Seller has delivered to the Purchaser
true and complete copies of: (i) each written Benefit Arrangement document and a description of each unwritten Benefit Arrangement, (ii)
each summary plan description relating to any Benefit Arrangement, (iii) each trust, insurance or other funding contract or agreement
relating to any Benefit Arrangement, (iv) each administrative services contract or agreement relating to any Benefit Arrangement, (v)
the three (3) most recent annual reports for each Benefit Arrangement (including all related schedules), if applicable, (vi) all correspondence
with or from the IRS, the U.S. Department of Labor or any other Governmental Authority relating to any Benefit Arrangement relating to
any controversy or audit, (vii) the most recent IRS determination letter, opinion, notification or advisory letter (as the case may be)
for each Benefit Arrangement which is intended to constitute a qualified plan under Section 401 of the Code and (viii) any others documents
in respect of any Benefit Arrangement reasonably requested by Purchaser. Neither the Seller nor any ERISA Affiliate has any obligation
or commitment to establish, maintain, operate or administer any new Benefit Arrangement or to amend any Benefit Arrangement so as to
increase benefits thereunder or otherwise. The Seller may amend or terminate any Benefit Arrangement (other than an employment agreement
or similar agreement that cannot be terminated without the consent of the other party) at any time without incurring any Liability thereunder,
other than in respect of accrued and vested obligations and medical or welfare claims incurred prior to such amendment or termination.
No Benefit Arrangement has terms requiring assumption by the Purchaser.

 

 

 

    	 	13	 

     

    

 

(b)                Neither the Seller,
nor any ERISA Affiliate, has or has ever had any Liability with respect to any Benefit Arrangement that is subject to Title IV of ERISA,
including a “multiemployer plan”, as defined in Section 3(37) of ERISA or a “single employer plan” within the
meaning of Section 4001(a)(15) of ERISA. Neither the Seller nor any ERISA Affiliate has terminated a Benefit Arrangement with respect
to which any Liability remains outstanding.

 

(c)               No
Benefit Arrangement provides or has ever provided post-retirement medical, health or other welfare benefits, except to the extent required
by Part 6 of Title I of ERISA. No Benefit Arrangement is or has ever been a “welfare benefit fund,” as defined in Section
419(e) of the Code, or an organization described in Sections 501(c)(9) or 501(c)(20) of the Code.

 

(d)               Each
Benefit Arrangement conforms to, and has been operated and administered in compliance with, its terms and all applicable Laws. Each Benefit
Arrangement intended to be qualified under Section 401(a) of the Code is so qualified and is the subject of a currently effective favorable
determination, opinion, notification or advisory letter issued by the IRS to the effect that such Benefit Arrangement is so qualified
and that the trust thereunder is exempt from federal income Tax under Section 501(a) of the Code. No event has occurred, and no condition
exists, which could adversely affect the Tax-qualified status of any such Benefit Arrangement. Neither the Seller nor any ERISA Affiliate
has incurred or is subject to a Tax under Section 4979 of the Code.

 

(e)               There
are no pending or, to the Knowledge of the Seller, threatened liens, actions, suits, claims, trials, arbitrations, investigations or other
proceedings by any Person, including any present or former participant or beneficiary under any Benefit Arrangement (or any beneficiary
of any such participant or beneficiary) or any Governmental Authority involving any Benefit Arrangement or any rights or benefits under
any Benefit Arrangement other than ordinary and usual claims for benefits by participants or beneficiaries thereunder. No event has occurred
and no condition exists that could subject the Seller or the fund of any Benefit Arrangement to the imposition of any Tax or penalty with
respect to any Benefit Arrangement, whether by way of indemnity or otherwise. All contributions required to have been made or remitted
and all expenses required to have been paid by the Seller and/or any ERISA Affiliate to or under any Benefit Arrangement under the terms
of any such plan, any agreement or any applicable Law have been paid within the time prescribed by any such plan, agreement or Law. All
contributions to or under any Benefit Arrangement have been and are currently deductible under the Code when made. No “prohibited
transaction” (as defined in ERISA Section 406) or breach of fiduciary responsibility has occurred with respect to any Benefit Arrangement
for which a Tax, penalty or other Liability of whatever nature could be incurred by the Seller or any ERISA Affiliate, directly or indirectly.

 

2.14              Real
Property.

 

(a)                Section
2.14(a) of the Disclosure Schedules contains a complete and accurate list of all real property, structures and buildings used by or
in connection with the Business (the “Real Property”). Except as set forth in Section 2.14(a) of the Disclosure
Schedules, all presently existing improvements included in the Real Property are in reasonably good operating condition and repair
(subject to normal wear and tear) and sufficient for the operation of the Business as presently conducted by the Seller. To the Knowledge
of Seller, there are no structural deficiencies or latent defects affecting any of the improvements and there are no facts or conditions
affecting any of the improvements that would interfere with the use or occupancy of the improvements or any portion thereof in the operation
of the Business as presently conducted by the Seller.

 

(b)               To
the Knowledge of the Seller, (i) there is no pending or threatened condemnation, expropriation or other Proceeding in eminent domain
affecting any parcel of the Real Property or any portion thereof or interest therein, and (ii) there is no pending or threatened
injunction, decree, order, writ or judgment outstanding, nor any claim, litigation, administrative action or similar proceeding relating
to the ownership, lease, use or occupancy of the Real Property or any portion thereof.

 

(c)               To
the Knowledge of the Seller, the Real Property is in compliance in all material respects with all applicable building, zoning, subdivision,
health and safety and other land use Laws, including the Americans with Disabilities Act of1990, as amended (collectively, the “Real
Property Laws”), and all insurance requirements affecting the Real Property, and the current use and occupancy of the Real Property
and operation of the Business do not violate any Real Property Laws in any material respect. The Seller has not received any notice of
violation of any Real Property Laws and to the Knowledge of the Seller, there is no basis for the issuance of any such notice or the taking
of any action for such violation. To the Knowledge of the Seller, there is no pending or anticipated change in any Real Property Law that
will materially impair the ownership, lease, use or occupancy of the Real Property or any portion thereof in the operation of the Business
as presently conducted by the Seller.

 

 

 

    	 	14	 

     

    

 

(d)          To
the Knowledge of the Seller, the classification of each parcel of the Real Property under applicable zoning laws permits the use and occupancy
of such parcel and the operation of the Business as presently conducted and as proposed to be conducted, and permits the improvements
located thereon as currently constructed, used and occupied. To the Knowledge of the Seller, there are sufficient parking spaces and other
facilities at the Real Property to comply with such zoning Laws and to permit the operation of the Business as presently conducted by
the Seller. To the Knowledge of the Seller, none of the improvements encroach on any land that is not included in the Real Property or
on any easement affecting such Real Property, or violate any building lines or set back lines, and there are not encroachments onto any
of the Real Property, or any portion thereof, which encroachment would interfere with the use or occupancy of such Real Property or the
continued operation of the Business as presently conducted and as proposed to be conducted.

 

(e)          Section
2.14(e) of the Disclosure Schedules lists all leases, subleases, licenses, concession agreements or other use or occupancy agreements
that relate to the Business and pursuant to which the Seller leases to or from any other party any Real Property (the “Real Property
Leases”). All of the Real Property Leases, including all renewals, extensions, modifications or supplements to any of the foregoing
or substitutions for any of the foregoing, (i) are valid and in full force and effect, without default (or event which with notice
or passage of time or both would constitute a default) on the part of any party to such Real Property Leases and (ii) have not been assigned,
modified, supplemented or amended. The Real Property Leases and the Seller’s interests thereunder are and will be free of all Encumbrances
in favor of any creditors of the Seller. Except as set forth on Section 2.14(e) of the Disclosure Schedules, the Seller is not
required to obtain any approvals in order to transfer the Real Property Leases to the Purchaser.

 

2.15       Condition
and Sufficiency of Assets. The buildings, plants, structures, furniture, fixtures,
machinery, equipment, vehicles and other items of tangible personal property included in the Business Assets are in good operating condition
and repair, and are adequate for the uses to which they are being put, and, to the Knowledge of Seller, none of such buildings, plants,
structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property is in need of maintenance
or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost. The Business Assets are sufficient
for the continued conduct of the Business after the Closing in substantially the same manner as conducted prior to the Closing and constitute
all of the rights, property and assets necessary to conduct the Business as currently conducted. None of the Excluded Assets are material
to the Business.

 

2.16       Inventory.
All Inventory, is (a) free of any material defect or other deficiency; (b) of a quality, quantity, and condition useable and saleable
in the ordinary course of the Business (subject to obsolescence reserves); and (c) properly stated on the Financial Statements and books
and records of the Seller at the lesser of cost or fair market value on a moving average price (MAP) basis, with adequate obsolescence
reserves reflected in the Financial Statements in accordance with GAAP. None of the Inventory is obsolete (except for the obsolescence
reserve) and no write-down of such Inventory has been made or should have been made in the period since [July 1, 2021]. All Inventory
is owned by Seller free and clear of all Encumbrances, and no Inventory is held on a consignment basis. The quantities of each item of
Inventory (whether raw materials, work-in-process or finished goods) are not excessive but are reasonable in the present circumstances
of Seller. All Inventory is located at the Business, except for such Inventory that may be located at a customer’s location pursuant
to an Assumed Contract.

 

2.17       Product
Warranty. The Seller does not have any Liability for replacement or repair of products sold or delivered by the Seller, or other
damages in connection therewith, except as required by Applicable Laws or pursuant to contractual commitments. No product sold, leased,
distributed, delivered, or packaged by the Seller, in connection with the Assumed Contracts, is subject to any guaranty, warranty, or
other indemnity other than the applicable guaranty, warranty or other indemnity set forth in the applicable Assumed Contract. Each product
manufactured, sold, leased, distributed or delivered by Seller is and has been at all times (a) in conformity with all applicable contractual
commitments (including applicable specifications) and all express and implied warranties, (b) merchantable, (c) free from defects in workmanship,
materials, packaging, construction and design, (d) fit and sufficient for the purpose for which it is intended and/or which is stated
on any packaging, labeling or advertising, and (e) produced, packaged, labeled, packed, shipped, and invoiced in compliance with Applicable
Laws. The Inventory is guaranteed under all Applicable Laws not to be (x) adulterated or misbranded, or (y) articles which may not be
introduced into interstate commerce. Seller has no Liability (and there is no basis for any present or future Proceeding against Seller
giving rise to any Liability) for replacement or repair or any products or other damages in connection with the Business, subject only
to reserves for product warranty claims set forth on the face of the Balance Sheet and explicitly designated as a Liability of the Business,
as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of Seller. No product manufactured,
sold, leased, distributed, delivered or packaged by Seller is subject to any guaranty, warranty or other indemnity beyond the applicable
standard terms and conditions of sale or lease as set forth on Section 2.17 of the Disclosure Schedules.

 

 

 

    	 	15	 

     

    

 

2.18       Insurance.
The Seller has maintained insurance with respect to the Business Assets, Assumed Liabilities and the operation of the Business under such
coverage policies and in such amounts that would be in accordance with good industry practice (collectively, the “Insurance Policies”)
.. There are no claims related to the Business, the Business Assets or the Assumed Liabilities pending under any such Insurance Policies
as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. Neither
Seller nor any of its Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration of
coverage under, any of such Insurance Policies. All premiums due on such Insurance Policies have either been paid or, if not yet due,
accrued. All such Insurance Policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided
by carriers who are financially solvent; and (c) have not been subject to any lapse in coverage. None of Seller or any of its Affiliates
is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any such Insurance Policy.

 

2.19        Environmental
Matters. Seller is currently and has been in compliance with all Environmental Laws and has not received from any Person any:
(i) Environmental Notice or Environmental Claim; or (ii) written request for information pursuant to Environmental Law, which, in each
case, either remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Closing Date, and there
are no facts or circumstances that would reasonably be expected to give rise to any such violation of or Liability under Environmental
Law. To the Knowledge of the Seller, no real property or facility now or formerly leased or used by the Seller is contaminated with any
substance or material that requires investigation, remediation or clean-up under any law, regulation, order, directive or other requirement,
contains asbestos or has located on, at or under it any fuel, oil or gasoline storage tanks. To the Knowledge of the Seller, the Real
Property has not been used for hazardous waste disposal and the Real Property is not in violation of any Federal, state or local law,
ordinance or regulation relating to environmental conditions on, under or about the Real Property, including, but not limited to soil,
ground water, toxic waste or biological conditions. The Seller has not used, generated, manufactured, stored or disposed of on, under
or about the Real Property or transported to or from the Real Property any Hazardous Materials in violation of any Federal, state or local
law, ordinance or regulation relating to environmental conditions. For the purposes of this paragraph, the term “Hazardous Materials”
shall include but not be limited to flammable explosives, radioactive materials, hazardous wastes, toxic substances, biological materials,
and any other materials encompassed in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Hazardous
Materials Transportation Act, the Resource Conservation and Recovery Act, and all applicable state and local laws, regulations and publications.

 

2.20       Governmental
Authorizations; Licenses; Etc. The Seller has at all times operated in compliance with all applicable Laws, rules,
regulations, codes, ordinances, orders, policies and guidelines of all Governmental Authorities and no written claims have been
filed against, and no notices have been received by, the Seller alleging a violation of any such Laws, rules, regulations, codes,
ordinances, orders, policies or guidelines. The Seller has all Business Permits relating to the Business and Business Assets,
necessary or advisable for the operation of the Business and/or use of the Business Assets as currently conducted by the Seller.
There is no action, case or proceeding pending or, to the Knowledge of the Seller, threatened by any Governmental Authority with
respect to (i) any alleged violation by the Seller (or an employee or agent of the Seller) or their Affiliates of any Law or
(ii) any alleged failure by the Seller (or an employee or agent of the Seller) or their Affiliates to have any required in
connection with the operation of the Business or use of the Business Assets. No notice of any violation of such laws has been
received by the Seller or any Affiliate of the Seller and neither the Seller, any such Affiliate nor has any member of Seller
received any notice that the services furnished by the Business are not in compliance with, or do not meet the standards of, all
applicable Laws. Section 2.20 of the Disclosure Schedules sets forth a true and complete list of all Business Permits.
Such Business Permits are in full force and effect and the Seller has not received any notification of the suspension or
cancellation of any thereof. All reports and returns required by Law to be filed by the Seller in connection with the Business or
Assets with any Governmental Authority on or before the date hereof have been timely filed and were, when filed, and currently are
true, accurate and complete. Section 2.20 of the Disclosure Schedules lists all of the Business Permits possessed by the
Seller which, in accordance with applicable Law, the Purchaser is required to notify, obtain the consent of or otherwise amend the
Seller’s filings, application or other paperwork with the issuing Governmental Authority prior to the consummation of the
transactions contemplated hereby.

 

 

 

 

    	 	16	 

     

    

 

2.21       Intellectual
Property. Section 2.21 of the Disclosure Schedules contains a complete and accurate list of all Intellectual Property.
No Intellectual Property is subject to any claim, proceeding or outstanding decree, order, judgment, or stipulation or Contract restricting,
in any material manner, the use, transfer, or licensing thereof, or which may materially affect the validity, use or enforceability of
such Intellectual Property. The Seller owns, and has good and exclusive title to, each item of Intellectual Property free and clear of
any lien or encumbrance. To the Knowledge of the Seller, no person has infringed or misappropriated, or is infringing or misappropriating,
any Intellectual Property. There are and have been no claims or Actions pending or, to the Knowledge of the Sellers, threatened against
Seller contesting the validity, use, ownership or enforceability of any of the Intellectual Property owned by Seller or used in the operations
of the Business, and no notices have been received by Seller that the operations of the Business are infringing, misappropriating or otherwise
violating the Intellectual Property of any other Person. Section 2.21 of the Disclosure Schedules sets forth a true, correct and
complete list, all Intellectual Property: (A) owned or developed by Seller; or (B) licensed to Seller or otherwise owned by any third
party Person and used in the Business (other than “off the shelf” shrink-wrap software licenses). With respect to the registered
Intellectual Property listed on Section 2.21 of the Disclosure Schedules as owned or developed by Seller, all such Intellectual
Property is valid, subsisting and in full force and effect and Seller has paid all maintenance fees and made all filings required to maintain
its ownership thereof. For all such registered Intellectual Property owned or developed Seller, Section 2.21 of the Disclosure Schedules
also includes a true, correct and complete list of (A) the jurisdiction where the application or registration is located, (B) the application
or registration number, and (C) the application or registration date.

 

2.22       Customary
Business Practices. The Seller has not, directly or indirectly:

 

(a)       
 made or authorized the making of any offer, payment or promise to give anything of value to (i) any official or employee of a
Governmental Authority, (ii) any political party or official thereof or any candidate for political office or (iii) except
for de minimis business entertainment, any customer, supplier or competitor of the Seller (or any employee, officer or
director of any such customer, supplier or competitor); or

 

(b)       engaged
in any practice in violation of Law which would subject the Seller to any harm, or which could be used as the basis for the termination
or modification of any Assumed Contract or Business Permit.

 

2.23       Brokers/Finders.
The Seller has not agreed or become obligated to pay, or taken any action that might result in any Person claiming to be entitled
to receive, any brokerage commission, finder’s fee or any other commission or similar fee in connection with this Agreement or any
of the transactions contemplated hereby for which the Purchaser will become liable.

 

2.24       Seller’s
Information. The representations and warranties made by the Seller and the Majority Member herein and in any schedule hereto,
and in any certificate furnished by the Seller and the Majority Member pursuant to this Agreement, and the information furnished by the
Seller and the Majority Member in connection with this Agreement and the transactions contemplated hereunder, do not contain any untrue
statement of a material fact, or omit to state any material fact necessary in order to make the statements contained herein or therein,
in the light of the circumstances under which made, not misleading.

 

2.25       Solvency.
Immediately prior to the Closing and, after giving effect to the transactions described in and contemplated by this Agreement and
the Related Agreements and the incurrence of all obligations incurred in connection herewith and therewith, subsequent to the Closing,
the Seller shall be Solvent. “Solvent” means that (a) the fair value of the assets and properties of such Person exceeds
its total liabilities (including probable liability in respect of contingent liabilities), (b) the present fair saleable value of the
assets and properties of such Person will not be less than the amount that will be required to pay its probable liability on its debts
and other liabilities, including contingent liabilities, as they become absolute and matured, (c) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature, and (d) such
Person is not engaged, and is not about to engage, in businesses or transactions for which its assets and properties would constitute
an unreasonably small capital.

 

 

 

 

    	 	17	 

     

    

 

2.26       Related
Party Transactions. Except as set forth in Section 2.26 of the Disclosure Schedules, no current or former partner, director,
officer, employee, shareholder or other equity holder of the Seller or any associate or Affiliate thereof, or any relative with a relationship
of not more remote than first cousin of any of the foregoing, is presently, or during the twelve (12)-month period ending on the date
hereof has been, (i) a party to any transaction with the Seller, including any contract, agreement or other arrangement providing for
the furnishing of services by, or the sale, purchase or rental of real or personal property from, or otherwise requiring payments to,
any such partner, director, officer, employee, shareholder or other equity holder, or (ii) to the Knowledge of the Seller, the direct
or indirect owner of an interest in any Person which is a present or potential competitor, supplier or customer of the Seller or the Business,
nor does any such partner, director, officer, employee, shareholder or other equity holder of the Seller receive income from any source
other than the Seller which relates to the Business or should properly accrue to the Seller.

 

2.27       COVID
Related Matters. Section 2.27 of the Disclosure Schedules sets forth a true, correct and complete list of all COVID Relief
Programs in which Seller is participating or has participated, including the amount of funds requested, applied for and/or received under
each such program.

 

(a) With respect to each such
COVID Relief Program, (i) Seller has made all attestations, certifications or other submissions or filings required to be made in connection
therewith, (ii) all attestations, certifications or other submissions or filings made by or on behalf of Seller in connection therewith
(whether required or otherwise) are and have been true, complete and accurate and in compliance with applicable Law, and Seller was eligible
to participate in such COVID Relief Program, (iii) Seller is and has been in compliance with all Laws, covenants and other requirements
in connection therewith, including the use of related funds, (iv) Seller has not been made the subject of or received any notice of any
audit or review by any Governmental Authority in connection therewith, and (v) Seller has maintained books and records (including with
respect to use of funds or proceeds) sufficient to qualify or satisfy the terms and conditions for relief (including forgiveness under
the Paycheck Protection Program) thereunder. Seller has used or applied all proceeds from any PPP Loan only as permitted under the Paycheck
Protection Program, the CARES Act and Small Business Act. Seller has submitted true, accurate and complete forgiveness applications for
each PPP Loan received to the applicable PPP Lender, in its capacity as lender in connection therewith.

 

(b) Seller is not currently
experiencing any material business interruptions or incurring any material Liabilities arising out of, resulting from or related to COVID
or any related quarantine, “shelter in place”, “stay at home”, “safer at home”, social distancing,
shut down or similar Law, Order, directive, guideline, pronouncement or recommendation issued by any industry group or Governmental Authority,
whether directly or indirectly, including shutdowns or closures, layoffs, furloughs or workforce reductions, disruptions to supply chains,
failure of service providers to timely perform services, personal protective equipment shortages or labor shortages.

 

2.28       Issued
Shares. The Seller and the Seller’s Members have been advised that the Issued Shares
are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities
laws, but are being offered and sold pursuant to exemptions from such laws. The Seller and the Seller’s Members acknowledge that
the Purchaser is relying upon the representations and warranties contained herein for the purpose of qualifying the offer and sale of
the Issued Shares for applicable exemptions from registration or qualification pursuant to federal or state securities laws, rules and
regulations. The Seller and the Seller’s Members each individually, are acquiring the Issued Shares for their own account
and not with a view towards their distribution within the meaning of Section 2.5(a)(11) of the Securities Act of 1933, as amended.

 

2.29       Accounts
Receivable. The Accounts Receivable (a) have arisen from bona fide transactions entered into by the Seller involving the sale
of goods or the rendering of services in the ordinary course of business consistent with past practice; (b) constitute only valid, undisputed
claims of the Seller not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the
ordinary course of business consistent with past practice; and are collectible in full within 90 days after billing. The reserve for bad
debts shown on the Balance Sheet or, with respect to Accounts Receivable arising after the Balance Sheet Date, on the accounting records
of the Business have been determined in accordance with GAAP, consistently applied, subject to normal year-end adjustments and the absence
of disclosures normally made in footnotes.

 

 

 

 

    	 	18	 

     

    

 

2.30       Accounts Payable.
All accounts payable of Seller (i) are reflected properly on the books and records of Seller in accordance with GAAP; (ii) arose from
bona fide, arms-length transactions in the ordinary course of business for services performed for, or goods sold to, Seller, for which
Seller obtained substantially equivalent value; and (iii) have been incurred in accordance with applicable payment or credit terms imposed
by the vendors of such services or goods. None of the accounts payable of Seller has been due and payable by Seller for a period in excess
of thirty (30) days from the due date of any invoice giving rise thereto.

 

2.31       Securities
Laws Matters.

 

(a) Seller or the respective
designee understands that (i) the Issued Shares are speculative investments, (ii) the Issued Shares are “restricted securities”
inasmuch as they are being acquired from Purchaser in a transaction not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under Rule 144 promulgated under the Securities Act only in certain limited
circumstances, (iii) there are restrictions on the transferability of the Issued Shares under the Securities Act and similar state securities
laws, (iv) it may not be possible to liquidate an investment in the Issued Shares immediately, (v) Seller or the respective designee is
responsible for the costs of removing any such transfer restrictions, including expenses for legal opinions, (vi) Seller or the respective
designee is able to bear the economic risk of this investment, to hold the Issued Shares indefinitely, and presently to afford a complete
loss of this investment, and (vii) Seller or the respective designee has such knowledge and experience in financial and business matters
that he is capable of evaluating the merits and risks of an investment in the Issued Shares and of making an informed investment decision.

 

(b) Seller or the respective
designee consents to the placement of a legend as outlined in Section 1.10(c) on any stock certificate evidencing the Issued Shares being
delivered to Seller or the respective designee, or on the books of the Purchaser’s transfer agent evidencing the Issued Shares.
If required by the authorities of any state in connection with the issuance or sale of the Issued Shares, the legend required by such
state authority.

 

(c) Seller or the respective
designee acknowledges and agrees that, as of the date of issuance thereof, the Issued Shares will not be registered under the Securities
Act or the securities Laws of any state and that such shares may be sold or otherwise disposed of only in one or more transactions registered
under the Securities Act and, where applicable, such Laws, or as to which an exemption from the registration requirements of the Securities
Act and, where applicable, such Laws, is available.

 

(d) Seller or the respective
designee is acquiring the shares of Purchaser solely for the purpose of investment and not with a view to, or for resale in connection
with, any distribution thereof in violation of the Securities Act. The Issued Shares to be received by Seller or the respective designee
hereunder will be acquired for Seller’s or the respective designee’s own account, not as nominee or agent, and not with a
view to the resale or distribution of any part thereof in violation of the Securities Act, and Seller or the respective designee has no
present intention of selling, granting any participation in, or otherwise distributing the same, and has no arrangement or understanding
with any other persons regarding the distribution of such Issued Shares in violation of the Securities Act or any applicable state securities
law without prejudice, however, to Seller’s or the respective designee’s right at all times to sell or otherwise dispose of
all or any part of such Issued Shares in compliance with applicable federal and state securities Laws. Nothing contained herein shall
be deemed a representation or warranty by Seller or the respective designee to hold the Issued Shares for any period of time. Seller or
the respective designee is not a broker-dealer registered with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or an entity engaged in a business that would require him to be so registered.

 

(e) Seller or the respective
designee is an accredited investor (as defined in Rule 501(a) of Regulation D promulgated under the Securities Act), and has such knowledge
and experience in business and financial matters so as to enable it to understand and evaluate the risks of and form an investment decision
with respect to its investment in the Issued Shares and to protect its own interest in connection with such investment.

 

 

 

    	 	19	 

     

    

 

(f) Purchaser has made available
the annual report on Form 10-K for the year ended June 30, 2021, and Seller has had the opportunity to review such report. Seller or the
respective designee has had an opportunity to receive all information related to Purchaser requested by him and to ask questions of and
receive answers from Purchaser regarding the Purchaser, its business and the terms and conditions of the offering of the Issued Shares.
Seller or the respective designee acknowledges receipt of copies of the all other reports filed by Purchaser with the Commission pursuant
to Sections 13(a), 13(e), 14 and 15(d) of the Exchange Act since the filing of the Form 10-K and during the twelve (12) months preceding
the date hereof. Neither such inquiries nor any other due diligence investigation conducted by Seller or the respective designee shall
modify, limit or otherwise affect Seller’s or the respective designee’s right to rely on Purchaser’s representations
and warranties contained in this Agreement or to exercise any remedy available to Seller or the respective designee under applicable Law
or in equity. Investor is aware that COVID-19 and/or the economic disruptions resulting from COVID-19 may impact the Purchaser’s
operations, financial results and condition to an extent currently unforeseeable by the Purchaser.

 

(g) Seller or the respective
designee did not learn of the investment in the Issued Shares as a result of any general solicitation or general advertising.

 

(h)
Since such time as Seller was first contacted by Purchaser or any other person acting on behalf of Purchaser
regarding the transactions contemplated hereby, neither Seller nor the respective designee nor any Affiliate of Seller which (a) had knowledge
of the transactions contemplated hereby, (b) has or shares discretion relating to Seller’s investments or trading or information
concerning Seller’s or the respective designee’s investments, including in respect of the Issued Shares, or (c) is subject
to Seller’s or the respective designee’s review or input concerning such Affiliate’s investments or trading has, directly
or indirectly, effected or agreed to effect, or will directly or indirectly effect, any short sale, whether or not against the box, established
any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act with respect to the Issued Shares, granted
any other right (including, without limitation, any put or call option) with respect to the Issued Shares or with respect to any security
that includes, relates to or derived any significant part of its value from the Issued Shares or otherwise sought to hedge its position
in the Issued Shares (each, a “Prohibited Transaction”). Seller or the respective designee acknowledges that the representations,
warranties and covenants contained in this Section 2.31(h) are being made for the benefit of the Seller or the respective designee as
well as the Purchaser.

 

(i) Seller or the respective
designee acknowledges that as a result of the transaction contemplated by this Agreement, Seller or the respective designee may be obligated
to comply with Section 16 of the Exchange Act, including making filings with the Commission, such as Schedule 13 or Form 3, 4 or 5.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby makes
the representations and warranties set forth in this ARTICLE III to the Seller as of the date hereof and as of the Closing Date.

 

3.1         Organization and Qualification. The Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the state of its incorporation and has the corporate power to own its properties and carry on its business as it is
now being conducted, and to perform all its obligations under the agreements and instruments to which it is a party or by which it is
bound.

 

3.2         Authority. The Purchaser has full power and authority to execute and deliver this Agreement and any Related Agreements
and to consummate the transactions contemplated hereby. The execution and delivery by the Purchaser of this Agreement and any Related
Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by
all necessary corporate action on the part of the Purchaser. This Agreement and any Related Agreements to which the Purchaser is a party
have been duly executed and delivered by the Purchaser and constitute the valid and binding obligations of the Purchaser, enforceable
against the Purchaser in accordance with their terms, except to the extent that such enforceability may be limited by the effect, if any,
of (i) any applicable bankruptcy, reorganization, insolvency, moratorium or other Law affecting the enforcement of creditors’ rights
generally, and (ii) general principles of equity, regardless of whether such enforceability is considered in a proceeding at law or in
equity.

 

 

 

    	 	20	 

     

    

 

3.3         Consents
and Approvals; No Violation. Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated
hereby, nor the compliance by the Purchaser with any of the provisions hereof do, as of the date hereof, or will, as of the Closing Date,
(i) conflict with or result in any breach of any provision of the organizational documents of the Purchaser, (ii) result in
a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of
termination, cancellation or acceleration) under, any of the terms, conditions or provisions of any note, contract, agreement, commitment,
bond, mortgage, indenture, license, lease, pledge agreement or other instrument or obligation to which the Purchaser is a party or by
which the Purchaser or any of its properties or assets may be bound, or (iii) violate any Law applicable to the Purchaser; except
in the case of clauses (ii) or (iii), for breaches, violations or defaults as do not and could not reasonably be expected to result in
a Material Adverse Effect on the ability of Purchaser to consummate the transactions contemplated herein.

 

3.4          Brokers/Finders.
The Purchaser has not agreed or become obligated to pay, or taken any action that might result in any Person claiming to be entitled
to receive, any brokerage commission, finder’s fee or any other commission or similar fee in connection with this Agreement or
any of the transactions contemplated hereby for which the Seller will become liable.

 

3.5          Sufficiency
of Funds. Purchaser has sufficient cash on hand or other sources of immediately available funds to enable it to make payment
of the Purchase Price and consummate the transactions contemplated by this Agreement.

 

3.6         Solvency. Immediately after giving effect to the transactions contemplated hereby, Purchaser shall be solvent and
shall: (a) be able to pay its debts as they become due; (b) own property that has a fair saleable value greater than the amounts required
to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to carry
on its business. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated
hereby with the intent to hinder, delay or defraud either present or future creditors of Purchaser or Seller. In connection with the transactions
contemplated hereby, Purchaser has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

 

3.7          Legal
Proceedings. There are no actions, suits, claims, investigations or other legal proceedings pending or, to Purchaser’s
knowledge, threatened against or by Purchaser or any Affiliate of Purchaser that challenge or seek to prevent, enjoin or otherwise delay
the transactions contemplated by this Agreement.

 

3.8          Independent
Investigation. Purchaser has conducted its own independent investigation, review and analysis of the Business and the Business
Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records,
and other documents and data of Seller for such purpose. Purchaser acknowledges and agrees that: (a) in making its decision to enter
into this Agreement and to consummate the transactions contemplated hereby, Purchaser has relied solely upon its own investigation and
the express representations and warranties of Seller set forth in Article II of this Agreement (including related portions of the Disclosure
Schedules); and (b) neither Seller nor any other Person has made any representation or warranty as to Seller, the Business, the Business
Assets or this Agreement, except as expressly set forth in Article II of this Agreement (including the related portions of the Disclosure
Schedules).

 

ARTICLE IV

ADDITIONAL AGREEMENTS

 

4.1         Confidentiality.
From and after the Closing, the Seller and the Majority Member shall, and shall cause their respective Affiliates to, keep confidential
and not use in any manner any information, whether written or oral, concerning the Business, the Business Assets, the Assumed Liabilities,
this Agreement and the Related Agreements, and the transactions contemplated hereby or thereby. If the Seller or the Majority Member
are compelled to disclose any information by judicial or administrative process or by other requirements of Law, the Seller and the Majority
Member shall promptly notify Purchaser in writing and shall disclose only that portion of such information which the Seller or the Majority
Member are advised by its counsel in writing is legally required to be disclosed.

 

 

 

    	 	21	 

     

    

 

4.2         Public
Disclosure. The initial press release with respect to this Agreement and
the transactions contemplated hereby shall be a release mutually agreed to by the Purchaser and the Seller.
Thereafter, each of the of the Seller and Purchaser agrees that no
public release, statement, announcement, or other disclosure concerning
the Agreement and the other transactions contemplated hereby shall
be issued by any party without the prior written consent of the other party (which consent shall not be unreasonably withheld, conditioned,
or delayed), except as may be required by: (a) applicable Law, (b) court process, (c) the rules or regulations of any applicable United
States securities exchange, or (d) any Governmental Authority to which the relevant party is subject or submits, provided, in each such
case, the party making the release, statement, announcement, or other disclosure shall use its reasonable best efforts to allow the other
party reasonable time to comment on such release or announcement in advance of such issuance.

 

4.3         Expenses
and Fees. All fees and expenses incurred in connection with the transactions contemplated hereby, including all legal, accounting,
financial advisory, consulting and all other fees and expenses of third parties incurred by a Party in connection with the negotiation
and effectuation of the terms and conditions of this Agreement, shall be the obligation of the respective Party incurring such fees and
expenses. Notwithstanding the foregoing, Purchaser, in connection with Seller’s 2019 and 2020 audits (the “Recent Audits”),
agrees to (a) reimburse Seller for one hundred percent (100%) of all fees incurred in relation to the Recent Audits in the event
the Parties do not close on the transaction described herein, and (b) to reimburse Seller for fifty percent (50%) of all fees incurred
in relation to the Recent Audit upon Closing.

 

4.4         Further
Assurances. The Seller and the Majority Member, on the one hand, and the Purchaser, on the other, shall execute and deliver to
the other any instrument not otherwise inconsistent with this Agreement that may be requested by the other and that is reasonably appropriate
to perfect or evidence any of the sales, assignments, transfers or conveyances contemplated by this Agreement or to transfer any Business
Assets or to obtain any consents or licenses necessary for the Purchaser to operate the Business and the Business Assets in the manner
operated prior to the Closing Date. The Seller and the Majority Member agree to cooperate with the Purchaser in furnishing to the Purchaser
information, evidence, testimony, and other assistance in connection with obtaining all necessary licenses, permits and approvals and
in connection with any actions, proceedings, arrangements or disputes of any nature with respect to matters pertaining to all periods
after the Closing Date, including but not limited to audited and pro forma financial statements as may be required by a Governmental
Authority with respect to the Issued Shares. The Parties shall cooperate in good faith with each other following the Closing Date with
respect to all official Tax inquiries, the preparation of Tax returns and all other legitimate Tax matters relating to the Business Assets
or Business. Such cooperation shall include making available, as reasonably requested and at the requesting Party’s expense, knowledgeable
tax personnel and books, records and files relating to the Business Assets or the Business.

 

4.5          Tax
Matters and Indemnification. The following provisions shall govern the allocation of responsibility as between the Seller and
the Purchaser for certain tax matters following the Closing Date:

 

(a)          Notwithstanding
anything in this Agreement to the contrary, including any limitation on indemnification otherwise provided for in ARTICLE V, the Seller
and the Majority Member shall, jointly and severally, indemnify the Purchaser Indemnified Parties and hold them harmless from and against
any loss, claim, liability, expense, or other damage attributable to (i) any and all Taxes (or the non-payment thereof) of the Seller
and its Affiliates, (ii) any and all Taxes of any member of an affiliated, consolidated, combined, or unitary group of which the Seller
or its Affiliates (or any predecessor of any of the foregoing) is or was a member, including pursuant to Treasury Regulation §1.1502-6
or any analogous or similar state, local, or foreign law or regulation, (iii) any and all Taxes of any person (other than the Seller)
imposed on the Seller or its Affiliates as a transferee or successor, by Contract or pursuant to any law, rule or regulation, or (iv)
any breach of any tax representation made by the Seller in Section 2.11. The Seller and the Majority Member shall reimburse the
Purchaser for any Taxes of the Seller or its Affiliates that are the responsibility of the Seller pursuant to this Section 4.5
within fourteen (14) days after Purchaser’s written notice to Seller of payment of such Taxes by the Purchaser. 

 

 

 

    	 	22	 

     

    

 

(b)         Notwithstanding
anything in this Agreement to the contrary, including any limitation on indemnification otherwise provided for in ARTICLE V, the Purchaser
shall indemnify the Seller Indemnified Parties and hold them harmless from and against any loss, claim, liability, expense, or other
damage attributable to (i) any and all Taxes (or the non-payment thereof) of the Purchaser and its Affiliates, (ii) any and all Taxes
of any member of an affiliated, consolidated, combined, or unitary group of which the Purchaser, its Affiliates or any of their Subsidiaries
(or any predecessor of any of the foregoing) is or was a member, including pursuant to Treasury Regulation §1.1502-6 or any analogous
or similar state, local, or foreign law or regulation, or (iii) any and all Taxes of any person (other than the Seller) imposed on the
Purchaser or its Affiliates or any of their Subsidiaries as a transferee or successor, by Contract or pursuant to any law, rule or regulation.
The Purchaser shall reimburse the Seller for any Taxes of the Purchaser or its Affiliates or any of their Subsidiaries that are the responsibility
of the Purchaser pursuant to this Section 4.5 within fourteen (14) days after Seller’s written notice to Purchaser of payment
of such Taxes by the Seller.

 

(c)          Bulk
Sales Tax. To the extent compliance with any bulk sales, bulk transfer or similar laws of any jurisdiction that may otherwise be
applicable with respect to the sale of any or all of the Business Assets to the Purchaser (“Bulk Sales Laws”), the
parties do hereby waive compliance therewith on the condition that (i) the Seller shall be responsible for payment of any taxes, fees
or amounts pursuant to such Bulk Sales Laws, and that such amounts shall be reflected on the Settlement Statement; and (ii) any
Liabilities or Damages arising out of the failure of the Seller to comply with the requirements and provisions of any Bulk Sales Laws
shall be treated as Retained Liabilities.

 

(d)          Transfer
Taxes. In addition to the Seller’s obligations in Section 4.5(c), the Seller shall also pay any stamp, sales, purchase,
use or similar Tax under the laws of any Governmental Authority arising out of or resulting from the sale of the Assets. The Seller shall
prepare and file the required Tax Returns and other required documents with respect to Taxes required to be paid by it pursuant to the
preceding sentence and shall promptly provide the Purchaser with the payment of such Taxes.

 

4.6         Third-Party
Consents. To the extent that the Seller’s rights under any Contract or Business Permit constituting a Business Asset, or
any other Business Asset, may not be assigned to the Purchaser without the consent of another Person which has not been obtained, this
Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful,
and the Seller, at its sole costs and expense, shall use its best efforts to obtain any such required consent(s) as promptly as possible.
If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair the Purchaser’s rights
under the Business Asset in question so that the Purchaser would not in effect acquire the benefit of all such rights, the Seller shall
act after the Closing at the Purchaser’s direction in order to obtain for the Purchaser the benefits thereunder and shall cooperate
with the Purchaser in any other reasonable arrangement designed to provide such benefits to the Purchaser.

 

4.7         Business
Employees. On the Closing Date, the Seller shall terminate all the Business Employees and the Purchaser shall offer
employment, on an “at will” basis, to all of such Business Employees. The Seller shall be solely responsible, and the
Purchaser shall have no Liability whatsoever, for any compensation or other amounts payable to any Business Employee, including
hourly pay, commission, bonus, salary, accrued vacation, fringe, pension or profit sharing benefits or severance pay for any period
relating to the service with the Seller at any time on or prior to the Effective Time, and the Seller shall pay all such amounts to
all entitled Persons on or prior to the Effective Time. The Seller shall remain solely responsible for the satisfaction of all
Liabilities for medical, dental, life insurance, health accident or disability benefits brought by or in respect of the Business
Employees or the spouses, dependents or beneficiaries thereof, which Liabilities relate to events occurring on or prior to the
Effective Time. The Seller also shall remain solely responsible for all workers’ compensation Liabilities of the Business
Employees that relate to events occurring on or prior to the Effective Time. The Seller shall pay, or cause to be paid, all such
amounts contemplated by this Section 4.7 to the appropriate Persons as and when due.

 

 

 

 

    	 	23	 

     

    

 

4.8           Restrictive
Covenants.

 

(a)          Non-Solicitation of Customers. For a period of five (5) years after the Closing Date (which period shall be computed
by excluding from such computation any time during which the Seller or the Majority Member are in violation of any provision of this Section
4.8, the “Restricted Period”), neither the Seller nor the Majority Member shall cause their respective Affiliates
not to, directly or indirectly, whether independently or in association with any other Person, (a) solicit, encourage or induce, or attempt
to solicit, encourage or induce, or otherwise take any action that could reasonably be expected to cause, any Covered Customer to terminate
or diminish its relationship with the Purchaser; (b) seek to persuade any such Covered Customer to conduct with anyone else any business
or activity that such Covered Customer conducts or could conduct with the Purchaser; or (c) interfere with or disrupt, or attempt to interfere
with or disrupt, the contractual relationship between any such Covered Customer and the Purchaser. As used in this Agreement, “Covered
Customer” means any Person who is or was an actual or prospective customer of the Seller or the Purchaser.

 

(b)         Non-Solicitation
of Employees. During the Restricted Period, neither the Seller nor the Majority Member shall, and shall cause their respective Affiliates
not to, directly or indirectly, whether independently or in association with any other Person, (a) hire or engage as an employee,
independent contractor, consultant or otherwise any Covered Employee; (b) solicit, encourage, induce or persuade, or attempt to solicit,
encourage, induce or persuade, any Covered Employee to discontinue or leave the service (whether as an employee, independent contractor,
consultant or otherwise) of the Purchaser or otherwise terminate or diminish its relationship with the Purchaser; (c) in any way interfere
with the relationship between any Covered Employee and the Purchaser; or (d) disclose names or other information about any Covered Employee
to any Person under circumstances which could reasonably be expected to lead to the use of that information for purposes of recruiting
or hiring. As used in this Agreement, “Covered Employee” means any Person who is or was an employee, consultant or
independent contractor of the Purchaser at any time during the six (6) month period immediately prior to the engagement or solicitation
at issue.

 

(c)          Non-Competition.
During the Restricted Period, neither the Seller nor the Majority Member shall, and shall cause their respective Affiliates not to, directly
or indirectly, whether independently or in association with any other Person, (i) own any equity interests in, or provide any capital
or financing to, a Competitive Business or (ii) engage in, own, manage, operate, control, provide services to or participate in
the ownership, management, operation, financing or control of any such Competitive Business. As used in this Agreement, “Competitive
Business” means any Person or business that provides products or services that are similar to or competitive with the products
or services of the Purchaser or the Business anywhere within the United States of America.

 

(d)         Non-Disparagement.
The Seller and the Majority Member shall not, directly or indirectly, engage in any conduct that involves the making or publishing of
written or oral statements or remarks (including the repetition or distribution of derogatory rumors, allegations, negative reports or
comments) that are disparaging, deleterious or damaging to the integrity, reputation or goodwill of the Business or the Purchaser or
its management, directors, officers, agents, representatives, consultants, independent contractors, equity holders or Affiliates. The
Purchaser shall not, directly or indirectly, engage in any conduct that involves the making or publishing of written or oral statements
or remarks (including the repetition or distribution of derogatory rumors, allegations, negative reports or comments) that are disparaging,
deleterious or damaging to the integrity, reputation or goodwill of the Seller or the Majority Member.

 

4.9         Remedies
and Severability of Restrictive Covenants.

 

(a)          Remedies.
It is recognized and acknowledged by the Seller and the Majority Member that (a) the Purchase Price is adequate consideration for
the covenants contained in Section 4.8 and (b) a breach of the covenants contained in Section 4.8 will cause irreparable
damage to the Purchaser, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any
such breach will be inadequate. Accordingly, the Seller and the Majority Member agree that, notwithstanding any other provision of this
Agreement to the contrary, in the event of a breach or threatened breach of any of the covenants contained in Section 4.8, in addition
to any other remedy which may be available at law or in equity, the Purchaser will be entitled to specific performance, injunctive relief
and other equitable relief to restrain any breach or threatened breach of Section 4.8 (without the need to post bond or other security).
If a final judgment of a court of competent jurisdiction determines that any term or provision contained in Section 4.8 is invalid
or unenforceable, then the Parties agree that the court shall have the power to reduce the scope, duration or geographic area of the term
or provision, to delete specific words or phrases or to replace any invalid or unenforceable term or provision with a term or provision
that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. The
Parties acknowledge and agree that Section 4.8 is reasonable and necessary to protect and preserve the Purchaser’s legitimate
business interests and to prevent any unfair advantage from being conferred on the Seller or the Majority Member.

 

 

 

 

    	 	24	 

     

    

 

(b)         Severability.
Each of the covenants in Section 4.8 is to be construed as independent of any other covenants or other provisions of this Agreement.
If any court of competent jurisdiction at any time deems any of the covenants set forth in Section 4.8 not fully enforceable, the
other provisions of Section 4.8 will nevertheless stand and to the full extent consistent with applicable Law continue in full
force and effect, and it is the intention and desire of the Parties that the court treat any provisions of Section 4.8 which are
not fully enforceable as having been modified to the extent deemed necessary by the court to render them reasonable and enforceable and
that the court enforce them to such extent.

 

4.10       Name
Change. Within sixty (60) days immediately following the Closing, the Seller shall (i) cease using the Name and Trade Name in
any way, (ii) change its name to a name wholly dissimilar from the Name and Trade Name, and(iii) execute any consents or authorizations
that may be required for the Purchaser to change its name to, or register itself to do business under, any name involving all or any portion
of the Name and Trade Name if the Purchaser so desires and register such names(s) in any jurisdiction.

 

4.11       Accounts
Receivables. From and after the Closing, if the Seller or any of its Affiliates receives or collects any Accounts Receivable,
the Seller or its Affiliates shall remit such funds to the Purchaser within fifteen (15) Business Days after its receipt thereof.

 

ARTICLE V

SURVIVAL; SURVIVAL; INDEMNIFICATION

 

5.1         Survival; Indemnity Period.

 

(a)          The
representations and warranties of the Parties set forth in this Agreement, or in any certificate or other instrument required to be delivered
pursuant to this Agreement, and the representations and warranties of the Purchaser shall survive the Closing Date until the date that
is eighteen (18) months after the Closing Date; provided, however, (i) that the representations and warranties of the Seller and the
Majority Member contained in Sections 2.1 (Organization and Qualifications), 2.2 (Authority), 2.8 (Title to Business Assets; Encumbrances),
Section 2.19 (Environmental Matters) and Section 2.23 (Brokers/Finders), and the representations and warranties of the Purchaser in 3.1
(Organization and Qualifications), 3.2 (Authority) shall survive the Closing Date indefinitely and (ii) the representations and
warranties of the Seller and the Majority Member contained in Sections 2.11 (Tax Matters), 2.12 (Employees), 2.13 (Employee Benefits)
and 2.27 (COVID Related Matters) (the representations and warranties listed in clauses (i) and (ii) above are collectively referred to
herein as the “Specified Representations”) shall survive until the date that is the expiration of the applicable statute
of limitations; provided, however, that the foregoing limitation on survival of representations and warranties shall not apply with respect
to breaches of representations and warranties arising, directly or indirectly, from or in connection with any fraud or willful or intentional
misrepresentation. 

 

(b)          The
agreements, covenants and other obligations of the Parties hereto (other than the representations and warranties discussed in Section
5.1(a) above) shall survive the Closing Date until they have been performed or in accordance with their respective terms.

 

5.2         
Indemnification by the Seller the Majority Member.

 

(a)          The
Seller agrees that it will defend, indemnify, and hold harmless the Purchaser and its Affiliates (the “Purchaser Indemnified
Parties”) from and against all Proceedings brought by, or claims or threats made by, a Third Party after the Closing Date,
and all Damages arising out of, incurred as a result of or in any way related to:

 

(i)    
a breach of the representations and warranties of the Seller or the Majority Member set forth in
ARTICLE II or in any Related Agreement;

 

(ii)   
a breach or non-fulfillment of any agreement or covenant on the part of the Seller or the Majority
Member made in this Agreement or in any Related Agreement;

 

(iii)    the
Excluded Assets; 

 

 

 

    	 	25	 

     

    

 

(iv)  
the Retained Liabilities;

 

(v)   
any act of fraud or willful or intentional misrepresentation by the Seller or the Majority Member
or any of their Affiliates related to this Agreement or any Related Agreement; or

 

(vi)  
the non-compliance by the Seller with any Bulk Sales Laws; or

 

(vii)  the business, operations, properties, assets or obligations of the Seller or the Majority Member
conducted, existing or arising on or prior to the Closing Date.

 

(b)         The
Majority Member agrees that it will defend, indemnify, and hold harmless the Purchaser Indemnified Parties from and against all Proceedings
brought by, or claims or threats made by, a Third Party after the Closing Date, and all Damages arising out of, incurred as a result
of or in any way related to: 

 

(i)    
a breach of the representations and warranties of the Seller or the Majority Member set forth Sections
2.1 (Organization and Qualifications), 2.2 (Authority), 2.8 (Title to Business Assets; Encumbrances); 2.11 (Taxes Matters); and 2.19 (Environmental
Matters); 

 

(ii)  
a breach or non-fulfillment of any agreement or covenant on the part of the Majority Member made
in this Agreement or in any Related Agreement;

 

(iii)   the
Retained Liabilities; or

 

(iv) 
any act of fraud or willful or intentional misrepresentation by the Seller or the Majority Member
or any of their Affiliates related to this Agreement or any Related Agreement.

 

(c)          Except with respect to (i) Seller’s or the Majority Member’s fraud or willful misconduct,
or (ii) Damages arising out of any breach of a Specified Representation, for which the following limitation shall not apply, neither Seller
nor the Majority Member shall have any liability for any indemnification under Section 5.2(a)(i) or Section 5.2(b)(i) unless
and until the aggregate Third Party Claims or Damages exceed [____]Dollars ($[____]) (the “Deductible”), and then only
to the extent such Third Party Claims or Damages exceed the Deductible. Except with respect to (i) Seller’s or the Majority Member’s
fraud or willful misconduct, or (ii) Damages arising out of any breach of a Specified Representation, for which the following limitation
shall not apply, neither Seller nor the Majority Member shall be required to indemnify Purchaser Indemnified Parties under Section
5.2(a)(i) or Section 5.2(b)(i) for aggregate Third Party Claims or Damages in excess of [____] Dollars ($[____]). 

 

5.3          Indemnification by the Purchaser. The Purchaser (an “Indemnifying Party” with respect to matters
covered by this Section 5.3) agrees that it will defend, indemnify, and hold harmless the Seller and its Affiliates (the “Seller
Indemnified Parties”) from and against all Proceedings brought by, or claims or threats made by, a Third Party after the Closing
Date, and all Damages arising out of, incurred as a result of or in any way related to:

 

(a)          a breach of the representations and warranties of the Purchaser set forth in ARTICLE III or in any
Related Agreement;

 

(b)         a breach or non-fulfillment of any agreement or covenant on the part of the Purchaser made in this
Agreement or any Related Agreement;

 

(c)          any Assumed Liability; or

 

 

 

    	 	26	 

     

    

 

(d)          any act of fraud or willful or intentional misrepresentation by the Purchaser or any of its Affiliates
related to this Agreement or any Related Agreement.

 

5.4          Procedure for Indemnification with Respect to Third Party Claims. 

 

(a)          If any Third Party shall notify an Indemnified Party with respect to any matter (a “Third
Party Claim”) that may give rise to a claim for indemnification against an Indemnifying Party or if any Party who may make a
claim for indemnification under this Agreement otherwise becomes aware of any matter that may give rise to such a claim or wishes to make
such a claim (whether or not related to a Third Party Claim), then the Indemnified Party shall promptly notify the Seller and/or the Majority
Member, as applicable (collectively, the “Indemnifying Party”) thereof in writing; provided, that no delay on the part
of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless
(and then solely to the extent) the Indemnifying Party is thereby materially prejudiced. Such notice shall describe in reasonable detail
the circumstances giving rise to the claim and specify the amount of the claim (or an estimate thereof).

 

(b)         The Indemnifying Party will assume the defense of the relevant Proceeding, provided that (i) the
counsel for the Indemnifying Party who shall conduct the defense of such claim or litigation shall be reasonably satisfactory to the Indemnified
Party and (ii) the Indemnified Party may participate in such defense at such Indemnified Party’s expense; provided, further,
that, if the named persons to a lawsuit or other legal action include both the Indemnifying Party and the Indemnified Party and the Indemnified
Party has been advised by counsel that there may be one or more legal defenses available to such Indemnified Party that are different
from or additional to those available to the Indemnifying Party, the Indemnified Party shall be entitled, at the Indemnifying Party’s
cost, risk and expense, to retain one firm of separate counsel of its own choosing. Except with the prior written consent of the Indemnified
Party, no Indemnifying Party, in the defense of any such claim or litigation, shall consent to entry of any judgment or Order, interim
or otherwise, or enter into any settlement that provides for injunctive or other nonmonetary relief affecting the Indemnified Party or
that does not include as an unconditional term thereof the giving by each claimant or plaintiff to such Indemnified Party of a release
from all liability with respect to such claim or litigation. In the event that the Indemnifying Party does not accept the defense of any
matter as above provided within thirty (30) days of notice thereof or fails to diligently prosecute the defense of such matter, the Indemnified
Party shall have the full right to defend against any such claim or demand, at the Indemnifying Party’s cost, risk and expense,
and shall be entitled to settle such claim or demand with the prior written consent of the Indemnifying Party, not to be unreasonably
withheld. In any event, the Indemnifying Party and the Indemnified Party shall cooperate in the defense of any Proceeding subject to this
ARTICLE V and the records of each shall be available to the other with respect to such defense (subject to their preservation of attorney-client
privilege).

 

5.5         Right
of Offset. Notwithstanding anything to the contrary contained in this Agreement or otherwise, in the event that the Seller or
the Majority Member are obligated to indemnify any Purchaser Indemnified Party in accordance with this Agreement, the Purchaser shall
have the right, exercisable in the Purchaser’s sole and absolute discretion, subject to the limitations set forth in Section
5.2(c) above, to offset the amount of any Damages on account thereof against any portion of the Purchase Price owed to the Seller
or any other amount owed by the Purchaser to the Seller or the Majority Member. This Section 5.5 shall survive through June 30,
2024.

 

ARTICLE VI 

MISCELLANEOUS

 

6.1         
Notices. All notices and other communications required or permitted hereunder shall be in writing and delivered in
person, by facsimile, by an overnight express delivery service of recognized standing (e.g., Federal Express) or by registered or certified
mail (postage prepaid, return receipt requested) to the Party at the address or facsimile number listed below (or at such other address
or facsimile number for the Party as shall be specified by like notice; provided that notices of a change of address shall be effective
only upon receipt thereof). All such notices and communications will be deemed effectively given the earliest of (i) when actually received,
(ii) when delivered personally, (iii) on the first Business Day after transmission if by facsimile or electronic mail, (iv) one (1) Business
Day after being deposited with an overnight express delivery service of recognized standing, or (v) two (2) days after having been sent
by registered or certified mail, return receipt requested, with postage prepaid.

 

 

 

    	 	27	 

     

    

 

(a)          if to the Seller, to:

 

Lighthouse Imaging, LLC

c/o Anania & Associates Investment Company, LLC

2 Portland Fish Pier, Suite 214

Portland, Maine 04101

Attn: Peter Anania

 

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

 

PretiFlaherty LLP

One City Center

Portland, Maine 04010

Attn: John M. Sullivan, Esquire

 

(b)         
if to the Purchaser, to:

 

Precision Optics Corporation

22 East Broadway

Gardner, MA 01440

Attention: General Counsel

 

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

 

Miles & Stockbridge P.C.

100 Light Street

Baltimore, Maryland 21202

Attn: Christopher R. Johnson, Esquire

 

6.2          Amendment.
Except as provided otherwise in this Agreement or in this specific Section, this Agreement may be amended, modified or supplemented
only by written agreement of each of the Parties hereto.

 

6.3          Assignment.
This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective
successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned
by the Seller nor the Majority Member on the one hand or the Buyer on the other hand without the prior written consent of the counterparty.

 

6.4          Governing
Law; Venue. This Agreement shall be construed and enforced in accordance with, and shall be governed by the laws of, the Commonwealth
of Massachusetts, without regard to conflicts of law principles that would apply the laws of another jurisdiction. The Parties agree
that the exclusive venue for any dispute related to this Agreement shall be the federal or state courts in the Commonwealth of Massachusetts.
Without in any way affecting the indemnification obligations or rights set forth in this Agreement, if a Party initiates a proceeding
to enforce its rights under this Agreement, the Party substantially prevailing in such proceeding (as determined by the court) shall
be entitled to recover from the other Party its reasonable attorneys’ fees and costs incurred in carrying out such proceeding.

 

 

 

    	 	28	 

     

    

 

6.5          Waiver of Jury Trial. All of the Parties do hereby agree to waive a jury trial in connection with any proceedings
arising out of or reasonably related to this Agreement or to any Related Agreement. Each of the Parties understands and acknowledges that
they are waiving a valuable right.

 

6.6          Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement were
not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof,
in addition to any other remedy to which they are entitled at law or in equity.

 

6.7          Counterparts. This Agreement and any of the Related Agreements may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement and
any of the Related Agreements may be delivered by facsimile transmission or by e-mail delivery of a “.pdf” data file.

 

6.8          Entire Agreement. This Agreement, the Related Agreements, the exhibits and schedules hereto, and the instruments
and schedules referred to herein and therein, embody the entire agreement and understanding of the Parties hereto in respect of the subject
matter contained herein. There are no restrictions, promises, representations, warranties, covenants, or undertakings with respect to
such subject matter, other than those expressly set forth or referred to herein. This Agreement supersedes all prior agreements, letters
of intent and understandings between the Parties with respect to such subject matter.

 

6.9         No Third Party Beneficiaries. This Agreement, the exhibits and schedules hereto, the Related Agreements, and the
documents and instruments and other agreements among the Parties hereto referenced herein are not intended to, and shall not, confer upon
any other Person not a Party hereto any rights or remedies hereunder, other than the Indemnified Parties.

 

6.10       Time of Essence. With regard to all time periods set forth or referred to in this Agreement, time is of the essence.

 

6.11       Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable Law. If any provision of this Agreement shall be invalid, illegal or unenforceable in any respect under any
applicable Law, the validity, legality and enforceability of the remaining provisions hereof shall not be affected or impaired thereby.

 

6.12        Interpretation. The article and section headings contained in this Agreement are solely for the purpose of reference,
are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement.

 

6.13        Construction. The word “including” means including, without limitation. All references herein to Articles,
Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement
unless the context shall otherwise require.

 

[Signatures appear on the following page]

 

 

    	 	29	 

     

    

 

SIGNTURE PAGE TO

ASSET PURCHASE AGREEMENT

 

IN WITNESS WHEREOF, each of
the Parties hereto has caused this Agreement to be executed on its behalf as of the date first above written.

 

 

	THE PURCHASER:	PRECISION OPTICS CORPORATION, INC.
	 	 
	 	By: /s/ Joseph N. Forkey                 
	 	Name: Joseph N. Forkey
	 	Title: CEO
	 	 
	 	 
	THE SELLER:	LIGHTHOUSE IMAGING, LLC
	 	 
	 	By: /s/ Peter V. Anania                  
	 	Name: Peter V. Anania
	 	Title: President
	 	 
	 	 
	THE MAJORITY MEMBER:	ANANIA & ASSOCIATES INVESTMENT COMPANY LLC
	 	 
	 	By:  /s/ Peter V. Anania                  
	 	Name: Peter V. Anania
	 	Title: President
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

 

 

 

 

    	 	30	 

     

    

 

EXHIBIT A

 

GLOSSARY

 

(a) For the purposes of this
Agreement, the following terms shall have the meanings specified or referred to below when capitalized (or if not capitalized, unless
the context clearly requires otherwise) when used in this Agreement.

 

“8-K
Financial Information” means historical consolidated financial statements for the Seller for the fiscal years ended December
31, 2019 and 2020, and for the relevant quarterly periods of 2020 and 2021 ended or ending, as the case may be, in a form that complies
with the requirements of Item 9.01 of Form 8-K and Rule 3-05 of Regulation S-X of the SEC for
a business acquisition required to be described in answer to Item 2.01 of Form 8-K, including information required for
the Seller to prepare the pro forma financial information required by Item 9.01 of Form 8-K, and (b) an
unqualified report from the Seller’s independent accounting firm stating that such historical consolidated financial statements
for the Seller for the fiscal years ended December 31, 2019 and 2020 present fairly, in all material respects, the consolidated financial
position, as well as the consolidated results of operations and cash flows, of the Seller for the periods covered by the such financial
statements, in conformity with GAAP (collectively, the “8-K Financial Information”)

 

“Accounts Receivable”
means all accounts receivable and other rights to payment from customers of the Seller, and the full benefit of all security for such
accounts or rights to payment, and all Claims, remedies or other rights related to any of the foregoing.

 

“Affiliate”
means, with respect to a specified Person, (a) any other Person directly or indirectly controlling, controlled by or under common control
with such Person; or (b) if such specified Person is an Entity, any director, executive officer, partner, trustee or other fiduciary of
such Entity. For purposes of this definition, “control” (including “controlling”, “controlled
by” and “under common control with”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
When used without reference to a particular Person, “Affiliate” means an Affiliate of the Seller.

 

“Benefit
Arrangement” means each (i) employee benefit plan, as defined in Section 3(3) of ERISA; (ii) employment contract and (iii)
bonus, deferred compensation, incentive compensation, performance compensation, stock purchase, stock option, stock appreciation,
restricted stock, phantom stock, saving and profit sharing, severance or termination pay (other than statutory or the common law
requirements for reasonable notice), health or other medical, salary continuation, cafeteria, dependent care, vacation, sick leave,
holiday pay, fringe benefit, reimbursement program, life insurance, disability or other (whether insured or self-insured) insurance,
a supplementary unemployment benefit, pension retirement, supplementary retirement, welfare or other employee plan, program, policy
or arrangement, whether written or unwritten, formal or informal, which any current or former employee, officer or manager of the
Seller or any ERISA Affiliate participated or participates in or was or is covered under, or was or is otherwise a party, and with
respect to which the Seller or any ERISA Affiliate is or ever was a sponsor or participating employer, or had or has an obligation
to make contributions, or was or is otherwise a party.

 

“Business Day”
means each day that is not a Saturday, Sunday or other day on which the Purchaser is closed for business or banking institutions located
in Boston, Massachusetts are authorized or obligated by law or executive order to close.

 

“Business Employee”
means any current or former employee, consultant, independent contractor, advisor or director of the Seller.

 

 

 

 

    	 	31	 

     

    

 

“Business Permits”
means all permits, licenses, franchises, approvals, consents, authorizations, registrations, certificates, variances and similar rights
obtained, or required to be obtained, from any Governmental Authority.

 

“Business Tangible
Property” means all inventory, equipment, computers, computer hardware (including computer servers), computer software, tools,
machinery and other tangible property of every kind (wherever located, whether or not reflected in the books of account of the Seller
and whether or not leased), together with any express or implied warranty by the manufacturers, sellers or lessors of any item or component
part thereof and all maintenance records and other documents relating thereto, in each case that relate to the Seller, the Business, the
Business Assets, the Assumed Contracts or the Assumed Liabilities or that, prior to the Closing Date, were used by Business Employees
in the ordinary course of business of the Seller, and that are not otherwise listed as Excluded Assets.

 

“CARES Act”
means the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), the Paycheck Protection Program and Health Care Enhancement Act,
the Paycheck Protection Program Flexibility Act of 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, applicable
rules and regulations, any similar or successor legislation, any presidential memoranda, executive orders or funding bills or appropriation
act provisions relating to COVID, as well as any applicable guidance issued thereunder or relating thereto, in each case, as amended.

 

“Claim”
means any claim, action, cause of action, arbitration, audit, notice of violation, litigation, citation, summons, inquiry, proceeding
(arbitral, administrative, legal or otherwise), suit, settlement, stipulation, hearing, charge, complaint, demand or similar matter, or
subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or at equity.

 

“Closing Indebtedness”
means all Indebtedness of or guaranteed by Seller as of immediately prior to the Closing.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and the Treasury Regulations (the “Treasury Regulations”) promulgated
thereunder.

 

“Contract”
means any mortgage, indenture, lease, contract, covenant, plan, insurance policy or other agreement, instrument, arrangement, understanding
or commitment, permit, concession, franchise or license, whether written, oral or otherwise.

 

“COVID”
means the severe acute respiratory syndrome coronavirus (SARS-CoV-2 and all related strains and sequences), the novel coronavirus or any
mutation (or antigenic shift or drift) or evolution thereof, the disease caused thereby, and associated disease outbreaks, epidemics or
pandemics.

 

“COVID Relief Programs”
means the Paycheck Protection Program, the Main Street Loan Program, Economic Injury Disaster Loans, or other federal, state and local
Governmental Authority relief or funding programs established in response to COVID.

 

“Current Assets”
means the inventory, accounts receivable and prepaid expenses, as determined in accordance with GAAP, of the Seller, but only to the extent
acquired pursuant to the terms of this Agreement.

 

“Current Liabilities”
means the trade accounts payable and accrued payroll expenses, as determined in accordance with GAAP, of the Seller, but only to the extent
assumed pursuant to the terms of this Agreement.

 

“Customer Information”
means all customer lists, customer contact information, customer correspondence and customer licensing and purchasing histories relating
to current and former customers of the Seller.

 

 

 

    	 	32	 

     

    

 

“Damages”
means damages, losses, Liabilities, fines, penalties and expenses (including reasonable fees, disbursements and expenses of attorneys,
accountants and other professional advisors and of expert witnesses and reasonable costs of investigation, testing and preparation), including,
without limitation, direct, indirect and consequential damages.

 

“Employee Retention
Tax Credit” means the employee retention credit under the CARES Act, as amended by the Taxpayer Certainty and Disaster Relief
Act of 2020.

 

“Encumbrance”
means any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, claim, option, right of first refusal or imperfection
of title with respect to any Business Asset.

 

“Entity”
means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability company, joint
venture, joint stock association, estate, trust, cooperative, foundation, union, syndicate, league, consortium, coalition, committee,
society, firm, company or other enterprise, association, organization or entity of any nature, other than a Governmental Authority.

 

“Environmental Claim”
means any Claim, Order by Governmental Authority, lien, fine, penalty, or, as to each, any settlement or judgment arising therefrom, by
or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the costs of enforcement proceedings,
investigations, cleanup, governmental response, removal or remediation, natural resources damages, property damages, personal injuries,
medical monitoring, penalties, contribution, indemnification and injunctive relief) arising out of, based on or resulting from: (a) the
presence, Environmental Release of, or exposure to, any Hazardous Materials; or (b) any actual or alleged non-compliance with any Environmental
Law.

 

“Environmental Law”
means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a) relating to pollution (or
the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the environment
(including ambient air (indoor or outdoor), soil, sediment, surface water or groundwater, or subsurface strata); or (b) concerning the
presence of, exposure to, or the management, manufacture, use, control, containment, storage, handling, recycling, reclamation, reuse,
treatment, generation, discharge, release, transportation, processing, production, disposal, removal or remediation of any Hazardous Materials.
The term “Environmental Law” includes, without limitation, the following (including their implementing regulations adopted
thereunder and any state, provincial and local analogs, including Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq., the Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments
of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977,
33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean
Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C.
§§ 651 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §§ 5101 et seq.; the Federal Insecticide, Fungicide,
and Rodenticide Act, 7 U.S.C. §§ 136 et seq.); and the Canadian Environmental Protection Act, 1999, as amended.

 

“Environmental Notice”
means any written directive, notice of violation or infraction, request for information or notice respecting any Environmental Claim relating
to actual or alleged non-compliance with any Environmental Law.

 

“Environmental Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without limitation, ambient
air (indoor or outdoor), soil, sediment, surface water or groundwater or subsurface strata or within any building, structure, facility
or fixture).

 

 

 

    	 	33	 

     

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate”
means any Person under common control with the Seller within the meaning of Code §§414(b), (c), (m) or (o) and the regulations
issued thereunder.

 

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

 

“GAAP”
means generally accepted accounting principles as in effect in the United States.

 

“Governmental Authority”
means any foreign governmental authority, the United States of America, any State of the United States, any local authority and any political
subdivision of any of the foregoing, any multi-national organization or body, any agency, department, commission, board, bureau, court
or other authority of any of the foregoing, or any quasi-governmental or private body exercising, or purporting to exercise, any executive,
legislative, judicial, administrative, police, regulatory or taxing authority or power of any nature, including but not limited any contractors
of a Governmental Authority as authorized by law and acting pursuant to the terms and conditions of any such contract.

 

“Governmental Authorization”
means any consent, approval, license, registration, security clearance, authorization, certificate or permit issued, granted, given or
otherwise made available by or under the authority of any Governmental Authority or pursuant to any Law.

 

“Indebtedness”
means any or all of the following: (i) all indebtedness of such Person for borrowed
money; (ii) all obligations of such Person evidenced by notes, bonds, debentures, or other similar instruments; (iii) all indebtedness created
or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person (even though
the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such
Property; (iv) all obligations of such Person to purchase, redeem, retire, defease, or otherwise make any payment in respect of any equity
interest of Such Person in such Person or any other Person or any warrants, rights, or options to acquire such equity interests, valued,
in the case of redeemable preferred interests, at the greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; (v) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter
of credit or similar facilities in respect of obligations of the kind referred to in subsections (i) through (v) of this definition.

 

“Intellectual Property”
means any or all of the following and all worldwide common law and statutory rights in, arising out of, or associated therewith: (i) inventions
and discoveries (whether patentable or unpatentable and whether or not reduced to practice); (ii) United States and foreign patents
and utility models and applications and disclosures therefor and all reissues, divisions, revisions, reexaminations, renewals, extensions,
provisionals, continuations and continuations-in-part thereof (“Patents”); (iii) rights in inventions (whether
patentable or not), improvements, trade secrets, formulas, recipes, proprietary information, know how, and any rights in technology, invention
disclosures, technical data and customer lists, and all documentation relating to any of the foregoing; (iv) rights in works of authorship,
including copyrights, copyrights registrations and applications therefor, and all other rights corresponding thereto throughout the world
(“Copyrights”); (v) domain names, uniform resource locators (“URLs”), other names and locators
associated with the Internet, and applications or registrations therefor (“Domain Names”); (vi) industrial designs
and any registrations and applications therefor; (vii) trade names, logos, common law and registered trademarks and service marks, trademark
and service mark registrations, related goodwill and applications therefor throughout the world (“Trademarks”); (viii)
all rights in computer software, including all source code, object code, firmware, development tools, files, records and data; (ix) all
rights in databases and data collections; (x) all moral and economic rights of authors and inventors, however denominated; and (xi) any
similar or equivalent rights to any of the foregoing.

 

“Inventory”
means all inventory, finished goods, raw materials, work in progress, packaging, supplies, parts and other inventories

 

“Knowledge”
means, when applicable to the Seller, the actual knowledge after due inquiry of the Seller’s management team, including, [____],
and Anania & Associates Investment Company, LLC.

 

 

 

    	 	34	 

     

    

 

“Law” means
any constitutional provision, statute or other law, ordinance, rule, regulation or interpretation thereof and any Order of any Governmental
Authority.

 

“Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured or determined
or determinable, including those arising under any Law, Proceeding or Order and those arising under any Contract, arrangement, commitment
or undertaking.

 

“Lien”
means any mortgage, pledge, charge, security interest, claim or encumbrance of any kind.

 

“Lighthouse Director
Side Letter” means that certain side letter to this Agreement among Purchaser, Seller, and the Majority Member.

 

“Material Adverse
Effect” means any condition, change, circumstance or event that has had or could reasonably be expected to have a material adverse
effect on (a) the assets, properties, business, prospects, results of operations or financial condition of the Seller or the Business,
or (b) on the ability of the Seller to perform in all material respects its obligations under this Agreement.

 

“Order”
means any order, judgment, injunction, edict, decree, ruling, pronouncement, determination, decision, opinion, sentence, subpoena, writ
or award issued, made, entered or rendered by any court, administrative agency or other Governmental Authority or by any arbitrator.

 

“PPP Loan”
means each loan received by Seller under the Paycheck Protection Program.

 

“Paycheck Protection
Program” means the Paycheck Protection Program established under the CARES Act, as modified or extended by the Paycheck Protection
Program and Health Care Enhancement Act, the Paycheck Protection Program Flexibility Act of 2020, the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act or other legislation or applicable rules and regulations.

 

“Permitted Encumbrances”
means: (a) liens for Taxes and other governmental charges and assessments which are not yet due and payable; (b) liens of landlords
and liens of carriers, warehousemen, mechanics and materialmen, construction and other like liens arising in the ordinary course of business
for sums not yet due and payable; and (c) liens relating to deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security or to secure the performance of leases, trade contracts or other
similar agreements.

 

“Person”
means any individual, Entity or Governmental Authority.

 

“Proceeding”
means any action, suit, litigation, arbitration, lawsuit, claim, proceeding (including any civil, criminal, administrative, investigative
or appellate proceeding and any informal proceeding), prosecution, contests, hearing, inquiry, inquest, audit, examination, investigation,
challenge, controversy or dispute commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Authority
or any arbitrator.

 

“Related Agreements”
means the Bill of Sale, the Assumption Agreement, the Lease Assignment, the Restrictive Covenants Agreement, the IP Assignment, the Settlement
Statement and any other exhibits or schedules to this Agreement.

 

“SEC” means
the United States Securities and Exchange Commission.

 

“Subsidiary”
means, with respect to any Person, any and all corporations, partnerships, limited liability companies, joint ventures, associations and
other entities controlled, directly or indirectly, by such Person.

 

“Target Working Capital”
means [____] Dollars ($[____]).

 

 

 

 

    	 	35	 

     

    

 

“Tax” or
“Taxes” means any federal, state, local, or non-U.S. income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A), customs duties, capital
stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not.

 

“Tax Return”
means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule
or attachment thereto, and including any amendment thereof.

 

“Third Party”
means any Person or group other than the Purchaser or the Seller.

 

“Working Capital”
means an amount equal to (a) the Current Assets, minus (b) cash and cash equivalents and any Employee Retention Tax Credit, minus
(c) the Current Liabilities, determined as of the Effective Time.

 

(b) In addition to the terms
defined above, the following terms shall have the meanings ascribed to such terms in the Sections set forth below:

 

	Term	Section/ Article/ Exhibit
	 	 
	Agreement	Preamble
	Asset Schedule	1.1
	Assumed Contracts	1.1(e)
	Assumed Liabilities	1.4(a)
	Assumption Agreement	1.6(c)
	Balance Sheet Date	2.4
	Bill of Sale	1.6(a)
	Bulk Sales Laws 	4.5(c)
	Business	Recitals
	Business Assets	1.1
	Charter Documents	2.1
	Closing	1.5
	Closing Date	1.5
	Closing Payment	1.3(b)(i)
	Closing Statement	1.3(d)(iii)
	Competitive Business	4.8(c)
	Copyrights 	Exhibit A (“Intellectual Property”) 
	Covered Customer	4.8(a)
	Covered Employee	4.8(b)
	Disclosure Schedule	Article II
	Domain Names 	Exhibit A (“Intellectual Property”)
	Effective Time	1.5
	Employees	2.12(a)
	Estimated Balance Sheet	1.3(e)(i)
	Estimated Shortfall	1.3(e)(ii)
	Estimated Working Capital	1.3(e)(i)

 

 

 

 

    	 	36	 

     

    

 

	Excluded Assets	1.2
	Excluded Assets Schedule	1.2(b)
	Final Working Capital	1.3(e)(iii)
	Financial Statements	2.4
	Hazardous Materials	2.19
	Indemnifying Party	5.2(a) or 5.3(a)
	Inventory	2.16
	IP Assignment	1.6(h)
	Lease Assignment	1.6(d)
	Majority Member	Preamble
	Material Contracts	2.9
	Name and Trade Name	1.1(a)
	Party/Parties	Preamble
	Patents 	Exhibit A (“Intellectual Property”)
	Preliminary Statement	1.3(e)(i)
	Purchase Price	1.3(a)
	Purchaser	Preamble
	Purchaser Indemnified Party	5.2
	Real Property	2.14(a)
	Real Property Laws	2.14(c)
	Real Property Leases	2.14(e)
	Restricted Period	4.8(a)
	Restrictive Covenants Agreement	1.6(e)
	Retained Liabilities	1.4(b)
	Seller Indemnified Party	5.3
	Settlement Statement	1.6(g)
	Solvent	2.25
	Specified Representations	5.1(a)
	Seller	Preamble
	Trademarks 	Exhibit A (“Intellectual Property”)
	Treasury Regulations 	Exhibit A (“Code”)
	Third-Party Claim	5.4(a)
	URLs 	Exhibit A (“Intellectual Property”)
	Working Capital Surplus	1.3(d)(iii)(3)

 

 

 

    	 	37Exhibit 10.2

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT
(“Agreement”) is made as of the 4th day of October, 2021 by and among Precision Optics Corporation, Inc., a Massachusetts
corporation (the “Company”), and the Investors set forth on the signature pages affixed hereto (each, an “Investor”
and collectively, the “Investors”).

 

RECITALS

 

A.       The
Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Rule 506 of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended;

 

B.       The
Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and conditions
stated in this Agreement, up to an aggregate of 937,500 shares (the “Shares”) of the Company’s common stock, $0.01 par
value (“Common Stock”) at a purchase price of $1.60 per Share, or an aggregate of up to $1,500,000 (collectively, the
“Transaction”); and

 

C.       Contemporaneous
with the sale of the Shares, the parties hereto will execute and deliver a Registration Rights Agreement, in the form attached hereto
as Exhibit A (the “Registration Rights Agreement”), pursuant to which the Company will agree to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, and applicable
state securities laws.

 

In consideration of the mutual
promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1.             Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is controlled
by, or is under common control with, such Person.

 

“Business Day”
means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

 

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

 

“Company’s Knowledge”
means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company, after due inquiry.

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership
of voting securities, by contract or otherwise.

 

 

 

 

    	 	1	 

     

    

 

“Intellectual Property”
means all of the following: (a) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether
or not reduced to practice); (b) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and Internet domain
names, together with all goodwill associated with each of the foregoing; (c) copyrights and copyrightable works; (d) registrations, applications
and renewals for any of the foregoing; and (e) proprietary computer software (including but not limited to data, data bases and documentation).

 

“Material Adverse Effect”
means a material adverse effect on (a) the assets, liabilities, results of operations, condition (financial or otherwise), business or
prospects of the Company and its Subsidiaries, taken as a whole, or (b) the ability of the Company to perform its obligations under the
Transaction Documents.

 

“Material Contract”
means any contract, instrument or other agreement to which the Company is a party or by which it is bound which has been filed as an exhibit
to the SEC Filings pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint
venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed
herein.

 

“Purchase Price”
means an aggregate of up to $1,500,000 at $1.60 per share.

 

“Registration Statement”
has the meaning set forth in the Registration Rights Agreement.

 

“SEC Filings”
means the Company’s most recent Annual Report on Form 10-K for the fiscal year ended June 30, 2021 (the “10-K”),
and all other reports filed by the Company pursuant to Sections 13(a), 13(e), 14 and 15(d) of the 1934 Act since the filing of the 10-K
and during the twelve (12) months preceding the date hereof.

 

“Securities”
means the Shares.

 

“Shares”
means the shares of Common Stock to be purchased by the Investors hereunder.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1, and shall, where applicable, also include any direct or
indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Transaction Documents”
means this Agreement and the Registration Rights Agreement and documents referenced herein and therein, and the exhibits, appendices,
and schedules hereto and thereto.

 

“1933 Act”
means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

2.             Closing.

 

2.1       Closing
Date. The date and time of the closing of the purchase of the Securities (the “Closing”) by the Investors shall
be 12 noon, New York City time, on such date as shall be mutually agreed to by the Company and the Investors, which in no event shall
be prior to, or more than three (3) Business Days after, the date of this Agreement (such date on which the Closing actually occurs, the
“Closing Date”), at the offices of Trombly Business Law, PC, 1314 Main St., Suite 102, Louisville, CO 80027.

 

 

 

 

    	 	2	 

     

    

 

2.2       Closing
Actions. On the Closing Date, (i) each Investor shall pay the pro rata portion of the Purchase Price as set forth on the signature
pages to this Agreement to the Company, by wire transfer of immediately available funds in accordance with the Company’s written
wire instructions, and (ii) the Company shall irrevocably instruct the Company’s transfer agent to deliver to each Investor who
has so paid the pro rata Purchase Price one or more stock certificates, evidencing the Shares duly executed on behalf of the Company and
registered in the name of the Investor, within three (3) Business Days after the Closing.

 

3.              Representations
and Warranties of the Company. The Company hereby represents and warrants to each Investor that:

 

3.1       Organization,
Good Standing and Qualification. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1 hereto.
Each of the Company and its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now conducted and to
own or lease its properties, in each case as described in the SEC Filings. Each of the Company and its Subsidiaries is duly qualified
to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of its business or its ownership
or leasing of property makes such qualification or leasing necessary unless the failure to so qualify has not had and could not reasonably
be expected to have a Material Adverse Effect.

 

3.2       Authorization.
The Company has the corporate power and authority to enter into this Agreement and has taken all requisite action on its part, its officers,
directors and shareholders necessary for (a) the authorization, execution and delivery of the Transaction Documents, (b) the authorization
of the performance of all obligations of the Company hereunder or thereunder, and (c) the authorization, issuance (or reservation for
issuance) and delivery of the Securities The Transaction Documents constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally and to general equitable
principles.

 

3.3       Capitalization.
The Company has duly and validly authorized capital stock as set forth in the SEC Filings and in the Articles of Incorporation of the
Company, as amended and as in effect as of the Closing Date (the “Certificate of Incorporation”). All of the issued
and outstanding shares of the Company’s capital stock have been duly authorized and validly issued and are fully paid, nonassessable
and free of pre-emptive rights and were issued in full compliance with applicable state and federal securities law and any rights of third
parties. Except as set forth in Schedule 3.3, no Person is entitled to pre-emptive or similar statutory or contractual rights
with respect to any securities of the Company. Except as set forth in Schedule 3.3, there are no outstanding warrants, options,
convertible securities or other rights, agreements or arrangements of any character under which the Company or any of its Subsidiaries
is or may be obligated to issue any equity securities of any kind and except as contemplated by this Agreement, neither the Company nor
any of its Subsidiaries is in negotiations for the issuance of any equity securities of any kind as of the date of this Agreement, other
than to employees. There are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements
of any kind among the Company and any of the securityholders of the Company relating to the securities of the Company held by them. Except
as set forth in Schedule 3.3, no Person has the right to require the Company to register any securities of the Company under
the 1933 Act, whether on a demand basis or in connection with the registration of securities of the Company for its own account or for
the account of any other Person.

 

Except as set forth on Schedule
3.3, the issuance and sale of the Securities hereunder will not obligate the Company to issue shares of Common Stock or other securities
to any other Person (other than the Investors) and will not result in the adjustment of the exercise, conversion, exchange or reset price
of any outstanding security.

 

3.4       Valid
Issuance. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be validly
issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions, except for restrictions on transfer
set forth in the Transaction Documents or imposed by applicable securities laws.

 

 

 

 

    	 	3	 

     

    

 

3.5       Consents.
The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and sale of the Securities
require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency, or official other than filings
that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities
laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy of the representations and warranties
of each Investor set forth in Section 4 hereof, the Company has taken all action necessary to exempt (a) the issuance
and sale of the Securities, and (b) any provision of the Articles of Incorporation or the Company’s Bylaws, as in effect as of the
Closing Date (the “Bylaws”), that is or could reasonably be expected to become applicable to the Investors as a result
of the transactions contemplated hereby, including, without limitation, the issuance of the Securities and the ownership, disposition
or voting of the Securities by the Investors or the exercise of any right granted to the Investors pursuant to this Agreement or the other
Transaction Documents.

 

3.6       Delivery
of SEC Filings; Business. The Company has made available to the Investors through the EDGAR system, true and complete copies of the
Company’s SEC Filings. The SEC Filings are the only filings required of the Company pursuant to the 1934 Act for such period. The
Company and its Subsidiaries are engaged in all material respects only in the business described in the SEC Filings and the SEC Filings
contain a complete and accurate description in all material respects of the business of the Company and its Subsidiaries, taken as a whole.

 

3.7       Use
of Proceeds. The net proceeds of the sale of the Securities hereunder shall be used by the Company for general working capital needs
and corporate growth initiatives.

 

3.8       No
Material Adverse Change. Since the date of the latest audited financial statements included within the SEC Filings, there has not
been:

 

(a)                any
change in the consolidated assets, liabilities, financial condition or operating results of the Company from that reflected in the financial
statements included in the Company’s 10-K, except for changes in the ordinary course of business which have not had and could not
reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; provided that any effects as a result of the
COVID-19 pandemic and the economic slowdown, to the extent that they also affect a business of similar operations shall not constitute
a Material Adverse Change;

 

(b)                any
declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of the Company,
or any redemption or repurchase of any securities of the Company;

 

(c)                any
material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries;

 

(d)                any
waiver, not in the ordinary course of business, by the Company or any Subsidiary of a material right or of a material debt owed to it;

 

(e)                any
satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Company or a Subsidiary, except in the
ordinary course of business and which is not material to the assets, properties, financial condition, operating results or business of
the Company and its Subsidiaries, taken as a whole (as such business is presently conducted and as it is proposed to be conducted);

 

(f)                 any
change or amendment to the Articles of Incorporation or Bylaws, or material change to any material contract or arrangement by which the
Company or any Subsidiary is bound or to which any of their respective assets or properties is subject;

 

(g)                any
material labor difficulties or labor union organizing activities with respect to employees of the Company or any Subsidiary;

 

 

 

 

    	 	4	 

     

    

 

(h)                any
material transaction entered into by the Company or any Subsidiary other than in the ordinary course of business;

 

(i)                 the
loss of the services of any key employee, or material change in the composition or duties of the senior management of the Company or any
Subsidiary;

 

(j)                 the
loss or, to the Company’s Knowledge, threatened loss of any customer which has had or could reasonably be expected to have a Material
Adverse Effect; or

 

(k)                any
other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.

 

3.9       SEC
Filings. At the time of filing thereof, the SEC Filings complied as to form in all material respects with the requirements of the
1934 Act and did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

 

3.10     No
Conflict, Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the Company and the
issuance and sale of the Securities will not (a) conflict with or result in a breach or violation of (i) any of the terms and provisions
of, or constitute a default under the Certificate of Incorporation or the Bylaws (true and complete copies of which have been made available
to the Investors through the EDGAR system), or (ii) any statute, rule, regulation or order of any governmental agency or body or any court,
domestic or foreign, having jurisdiction over the Company or any of its assets or properties, or (b) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien, encumbrance
or other adverse claim upon any of the properties or assets of the Company or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any Material Contract, except in the case of clauses (a)(ii) and (b) above,
such as could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

 

3.11     Tax
Matters. The Company has prepared and filed (or filed applicable extensions therefore) all tax returns required to have been filed
by the Company with all appropriate governmental agencies and paid all taxes shown thereon or otherwise owed by it, other than any such
taxes which the Company is contesting in good faith and for which adequate reserves have been provided and reflected in the Company’s
financial statements included in the SEC Filings. The charges, accruals and reserves on the books of the Company in respect of taxes for
all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against the Company nor, to the
Company’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits
by any federal, state or local taxing authority except for any assessment which is not material to the Company. All taxes and other assessments
and levies that the Company is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper
governmental entity or third party when due, other than any such taxes which the Company is contesting in good faith and for which adequate
reserves have been provided and reflected in the Company’s financial statements included in the SEC Filings. There are no tax liens
or claims pending or, to the Company’s Knowledge, threatened in writing against the Company or any of its assets or property. There
are no outstanding tax sharing agreements or other such arrangements between the Company and any other corporation or entity.

 

3.12     Title
to Properties. The Company has good and marketable title to all real properties and all other properties and assets (excluding Intellectual
Property assets which are the subject of Section 3.15 hereof) owned by it, in each case, free from liens, encumbrances
and defects that would materially affect the value thereof or materially interfere with the use made or planned as of the date of this
agreement to be made thereof by them unless failure to do so has not had and could not reasonably be expected to have a Material Adverse
Effect; and the Company holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially
interfere with the use made or planned as of the date of this agreement to be made thereof by them.

 

 

 

 

    	 	5	 

     

    

 

3.13     Certificates,
Authorities and Permits. The Company possesses adequate certificates, authorities or permits issued by appropriate governmental agencies
or bodies necessary to conduct the business now operated by it, except to the extent failure to possess such certificates, authorities
or permits could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate, and the Company has not
received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined
adversely to the Company, could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

 

3.14     Labor
Matters.

 

(a)                The
Company is not a party to or bound by any collective bargaining agreements or other agreements with labor organizations. The Company has
not violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees,
labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’
health, safety, welfare, wages and hours.

 

(b)                (i)
There are no labor disputes existing, or to the Company’s Knowledge, threatened, involving strikes, slow-downs, work stoppages,
job actions, disputes, lockouts or any other disruptions of or by the Company’s employees, (ii) there are no unfair labor practices
or petitions for election pending or, to the Company’s Knowledge, threatened before the National Labor Relations Board or any other
federal, state or local labor commission relating to the Company’s employees, (iii) no demand for recognition or certification heretofore
made by any labor organization or group of employees is pending with respect to the Company and (iv) to the Company’s Knowledge,
the Company enjoys good labor and employee relations with its employees and labor organizations.

 

(c)                The
Company is, and at all times has been, in compliance with all applicable laws respecting employment (including laws relating to classification
of employees and independent contractors) and employment practices, terms and conditions of employment, wages and hours, and immigration
and naturalization, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate. There are no claims pending against the Company before the Equal Employment Opportunity Commission or any other administrative
body or in any court asserting any violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, 42 U.S.C.
§§ 1981 or 1983 or any other federal, state or local Law, statute or ordinance barring discrimination in employment.

 

3.15     Intellectual
Property. The Company owns, or has obtained valid and enforceable licenses for, or other rights to use, the Intellectual Property
necessary for the conduct of the business of the Company as conducted as of the date of this agreement and as described in the SEC Filings
as being owned or licensed by them, except where the failure to own, license or have such rights could not reasonably be expected
to result in a Material Adverse Effect, individually or in the aggregate. Except as set forth in Schedule 3.15 (a) to the Company’s
Knowledge, there are no third parties who have or will be able to establish rights to any Intellectual Property, except for the ownership
rights of the owners of the Intellectual Property which is licensed to the Company as described in the SEC Filings or where such rights
could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate, (b) there is no pending
or, to the Company’s Knowledge, threat of any, action, suit, proceeding or claim by others challenging the Company’s rights
in or to, or the validity, enforceability, or scope of, any Intellectual Property owned by or licensed to the Company or claiming
that the use of any Intellectual Property by the Company in its businesses as conducted as of the date of this agreement infringes, violates
or otherwise conflicts with the intellectual property rights of any third party, and (c) to the Company’s Knowledge, the use by
the Company of any Intellectual Property by the Company in its businesses as conducted as of the date of this agreement does not infringe,
violate or otherwise conflict with the intellectual property rights of any third party.

 

3.16     Environmental
Matters. To the Company’s Knowledge, the Company is not in violation of any statute, rule, regulation, decision or order of
any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances
or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable
for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental
Laws, which violation, contamination, liability or claim has had or could reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate; and there is no pending or, to the Company’s Knowledge, threatened investigation that might lead to such a
claim.

 

 

 

 

    	 	6	 

     

    

 

3.17     Litigation.
There are no pending actions, suits or proceedings against or affecting the Company or any of its properties; and to the Company’s
Knowledge, no such actions, suits or proceedings are threatened, except any such proceeding, which if resolved adversely to the Company,
could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate. Neither the Company nor any director
or officer thereof, is or has been the subject of any action involving a claim of violation of or liability under federal or state securities
laws or a claim of breach of fiduciary duty. There has not been, and to the Company’s Knowledge, there is not pending or contemplated,
any investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the
1934 Act.

 

3.18     Financial
Statements. The financial statements included in each SEC Filing comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or to the extent corrected by a subsequent
restatement) and present fairly, in all material respects, the consolidated financial position of the Company as of the dates shown and
its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity
with United States generally accepted accounting principles applied on a consistent basis (“GAAP”) (except as may be
disclosed therein or in the notes thereto, and, in the case of quarterly financial statements, as permitted by Form 10-Q under the 1934
Act). Except as set forth in the SEC Filings filed prior to the date hereof, the Company has not incurred any liabilities, contingent
or otherwise, except those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since
the date of such financial statements, none of which, individually or in the aggregate, have had or could reasonably be expected to have
a Material Adverse Effect.

 

3.19     Insurance
Coverage. The Company maintains in full force and effect insurance coverage that is customary for comparably situated companies for
the business being conducted and properties owned or leased by the Company.

 

3.20     Brokers
and Finders. No Person, including, without limitation, any Investor or any current holder of shares of Common Stock, will have, as
a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company
or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or
on behalf of the Company. Except as a result of any agreements or arrangements made by an Investor or its representatives or Affiliates,
to the Company’s knowledge, Investors shall have no obligation with respect to any such fees or commissions of a type contemplated
in this Section 3.20 that may be due in connection with the transactions contemplated by this Agreement.

 

3.21     No
Directed Selling Efforts or General Solicitation. Neither the Company nor any Person acting on its behalf has conducted any general
solicitation or general advertising (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities.

 

3.22     No
Integrated Offering. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 4 hereof,
neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any Company security or solicited any offers to buy any security, which are or will be integrated with this offering of the
Securities hereunder in a manner that would adversely affect reliance by the Company on Section 4(a)(2) for the exemption from registration
for the transactions contemplated hereby or would require registration of the Securities under the 1933 Act.

 

3.23     Private
Placement. Assuming the accuracy of the Investors’ representations and warranties set forth in Section 4 hereof,
the offer and sale of the Securities to the Investors as contemplated hereby is exempt from the registration requirements of the 1933
Act.

 

3.24     Bad
Actor Disqualification.

 

 

 

 

    	 	7	 

     

    

 

(a)                No
Disqualification Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506 under the 1933 Act (“Regulation
D Securities”), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other
officer of the Company participating in the offering, any beneficial owner of 20% or more of the Company's outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the
Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered
Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under
the 1933 Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company
has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Investors a copy of
any disclosures provided thereunder.

 

(b)                Other
Covered Persons. The Company is not aware of any person that (i) has been or will be paid (directly or indirectly) remuneration for
solicitation of an Investor in connection with the sale of the Securities and (ii) who is subject to a Disqualification Event.

 

(c)                Notice
of Disqualification Events. The Company will notify the Investors in writing of (i) any Disqualification Event relating to any Issuer
Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered
Person, prior to any Closing of this Offering.

 

3.25     Questionable
Payments. Neither the Company nor, to the Company’s Knowledge, any of its current or former shareholders, directors,
officers, employees, agents or other Persons acting on behalf of the Company, has, on behalf of the Company or in connection with its
businesses, (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to foreign
or domestic political activity, (b) made any direct or indirect unlawful payments to any foreign or domestic governmental officials or
employees from corporate funds, (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets, (d)
made any false or fictitious entries on the books and records of the Company, or (e) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of any nature.

 

3.26     Transactions
with Affiliates. Except as disclosed in the SEC Filings, none of the officers or directors of the Company and, to the Company’s
Knowledge, none of the employees of the Company is presently a party to any transaction with the Company (other than as holders of stock
options and/or warrants, and for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the Company’s Knowledge, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

3.27     Internal
Controls. Except as disclosed in the SEC Filings, the Company is in material compliance with the provisions of the Sarbanes-Oxley
Act of 2002 applicable to the Company as of the date of this agreement. The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific
authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or specific authorization,
and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in 1934 Act Rules 13a-15(e)
and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the
Company is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s
most recently filed periodic report under the 1934 Act, as the case may be, is being prepared. The Company’s certifying officers
have evaluated the effectiveness of the Company’s controls and procedures as of the end of the period covered by the most recently
filed periodic report under the 1934 Act (such date, the “Evaluation Date”). The Company presented in its most recently
filed periodic report under the 1934 Act the conclusions of the certifying officers about the effectiveness of the disclosure controls
and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes
in the Company’s internal controls (as such term is defined in Item 308 of Regulation S-K) or, to the Company’s Knowledge,
in other factors that could significantly affect the Company’s internal controls. The Company maintains and will continue to maintain
a standard system of accounting established and administered in accordance with GAAP and the applicable requirements of the 1934 Act while
it continues to report under the 1934 Act.

 

 

 

 

    	 	8	 

     

    

 

3.28     Investment
Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing will not
be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

3.29     Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Articles of Incorporation or the laws of the state of its incorporation
which is or could become applicable to the Investor as a result of the transactions contemplated by this Agreement, including, without
limitation, the Company's issuance of the Securities and the Investors' ownership of the Securities.

 

3.30     Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents that will be timely
publicly disclosed by the Company, the Company confirms that neither it nor any other Person acting on its behalf has provided the Investor
or its agents or counsel with any information that it believes constitutes or might constitute material, non-public information which
is not otherwise disclosed in the Registration Statement or the SEC Documents unless the Investor has agreed verbally or in writing to
receive such information in which case this sentence does not apply. The Company understands and confirms that the Investor will rely
on the foregoing representation in effecting purchases and sales of securities of the Company. All of the disclosure furnished by or on
behalf of the Company to the Investor regarding the Company, its business and the transactions contemplated hereby, including the disclosure
schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and
agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 3 hereof.

 

3.31     Shell
Company Status. The Company is not as of the date of this agreement, and never has been, an issuer identified in Rule 144(i)(1) under
the 1933 Act.

 

3.32     Each
of the Investors acknowledges and agrees that the Company has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in this Section 3. Each of the Investors further acknowledges
and agrees that neither the Company nor any other Person has made any representation or warranty, expressed or implied, as to the accuracy
or completeness of any information received by any such Investor which constitutes or may be deemed to constitute a projection, estimate
or other forecast and certain business plan information, except that such information was prepared in good faith and based upon assumptions
that the Company believes to have been reasonable at the time such information, if any, was provided to the applicable Investor.

 

4.             Representations
and Warranties of the Investors. Each of the Investors hereby severally, and not jointly, represents and warrants to the Company that:

 

4.1       Organization
and Existence. If such Investor is not a natural person, such investor is a corporation, limited partnership or limited liability
company duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization
and has all requisite corporate, partnership or limited liability company power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.

 

4.2       Authorization.
The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor is a party have been duly
authorized and each will constitute the legal, valid and binding obligation of such Investor, enforceable against such Investor in accordance
with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally.

 

 

 

 

    	 	9	 

     

    

 

4.3       Consents.
All consents, approvals, orders and authorizations required on the part of such Investor in connection with the execution, delivery or
performance of each Transaction Document and the consummation of the transactions contemplated hereby and thereby have been obtained and
are effective as of the date hereof.

 

4.4       Purchase
Entirely for Own Account. The Securities to be received by such Investor hereunder will be acquired for such Investor’s own
account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the 1933 Act,
and such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same and has no arrangement
or understanding with any other Persons regarding the distribution of such Securities in violation of the 1933 Act or any applicable state
securities law without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part
of such Securities in compliance with applicable federal and state securities laws. Such Investor is acquiring the Securities hereunder
in the ordinary course of its business. Nothing contained herein shall be deemed a representation or warranty by such Investor to hold
the Securities for any period of time. Such Investor is not a broker-dealer registered with the SEC under the 1934 Act or an entity engaged
in a business that would require it to be so registered.

 

4.5       Investment
Experience. Such Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Securities and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment
contemplated hereby.

 

4.6       Disclosure
of Information. The Company has made available the annual report on Form 10-K for the year ended June 30, 2021 and such Investor has
had the opportunity to review such report. Such Investor has had an opportunity to receive all information related to the Company requested
by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of
the offering of the Securities. Such Investor acknowledges receipt of copies of the SEC Filings. Neither such inquiries nor any other
due diligence investigation conducted by such Investor shall modify, limit or otherwise affect such Investor’s right to rely on
the Company’s representations and warranties contained in this Agreement. Investor is aware that COVID-19 and/or the economic disruptions
resulting from COVID-19 may impact the Company’s operations, financial results and condition to an extent currently unforeseeable
by the Company.

 

4.7       Restricted
Securities. Such Investor understands that the Securities are characterized as “restricted securities” under the U.S.
federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such securities may be resold without registration under the 1933 Act only in certain limited
circumstances.

 

4.8       Legends.
It is understood that, except as provided below, certificates evidencing the Securities may bear the following or any similar legend:

 

(a)                 “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT AND SUCH
REGISTRATION STATEMENT REMAINS EFFECTIVE, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) COMPANY COUNSEL HAS OPINED THAT
SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT.”

 

(b)                If
required by the authorities of any state in connection with the issuance or sale of the Securities, the legend required by such state
authority.

 

 

 

 

    	 	10	 

     

    

 

4.9       Accredited
Investor. Such Investor is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act. Such
Investor was not organized for the specific purpose of acquiring the Securities and is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act.

 

4.10     No
General Solicitation. Such Investor did not learn of the investment in the Securities as a result of any general solicitation or general
advertising.

 

4.11     Brokers
and Finders. No Person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest
or claim against or upon the Company or an Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of such Investor.

 

4.12     Prohibited
Transactions. Since such time as such Investor was first contacted by the Company or any other Person acting on behalf of the Company
regarding the transactions contemplated hereby through the public announcement of the Transaction, neither such Investor nor any Affiliate
of such Investor which (a) had knowledge of the transactions contemplated hereby, (b) has or shares discretion relating to such Investor’s
investments or trading or information concerning such Investor’s investments, including in respect of the Securities, or (c) is
subject to such Investor’s review or input concerning such Affiliate’s investments or trading has, directly or indirectly,
effected or agreed to effect, or will directly or indirectly effect, any short sale, whether or not against the box, established any “put
equivalent position” (as defined in Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock, granted any other right
(including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes,
relates to or derived any significant part of its value from the Common Stock or otherwise sought to hedge its position in the Securities
(each, a “Prohibited Transaction”). Such Investor acknowledges that the representations, warranties and covenants contained
in this Section 4.12 are being made for the benefit of the Investors as well as the Company and that each of the other
Investors shall have an independent right to assert any claims against such Investor arising out of any breach or violation of the provisions
of this Section 4.12.

 

The Company acknowledges and
agrees that each Investor has not made any representations or warranties with respect to the transactions contemplated by the Transaction
Documents other than those specifically set forth in this Section 4.

 

5.             Conditions
to Closing.

 

5.1       Conditions
to the Investors’ Obligations. The obligation of each Investor to purchase the Securities at the Closing is subject to the fulfillment
to such Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may be waived by such
Investor (as to itself only):

 

(a)                The
representations and warranties made by the Company in Section 3 hereof qualified as to materiality shall be true and
correct at all times prior to and on the Closing Date as so qualified, except to the extent any such representation or warranty expressly
speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date as so qualified,
and, the representations and warranties made by the Company in Section 3 hereof not qualified as to materiality shall
be true and correct in all material respects at all times prior to and on the Closing Date, except to the extent any such representation
or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material
respects as of such earlier date. The Company shall have performed in all material respects all obligations and covenants herein required
to be performed by it on or prior to the Closing Date.

 

(b)                The
Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation
of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the Transaction Documents, all
of which shall be in full force and effect.

 

(c)                The
Company shall have executed and delivered the Registration Rights Agreement.

 

 

 

 

    	 	11	 

     

    

 

(d)                No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy court
or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have been instituted
by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby or in the other Transaction
Documents.

 

(e)                The
Investors shall have received an opinion from Trombly Business Law, PC, dated as of the Closing Date, in form and substance reasonably
acceptable to the Investors and addressing such legal matters as the Investors may reasonably request.

 

(f)                 No
stop order or suspension of trading shall have been imposed by the SEC or any other governmental or regulatory body with respect to public
trading in the Common Stock.

 

5.2       Conditions
to Obligations of the Company. The Company’s obligation to sell and issue the Shares at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the Company:

 

(a)                The
representations and warranties made by the Investors in Section 4 hereof, other than the representations and warranties
contained in Sections 4.4, 4.5, 4.6, 4.7, 4.8, 4.9 and 4.10 (the
“Investment Representations”), shall be true and correct in all material respects when made, and shall be true and
correct in all material respects on the Closing Date with the same force and effect as if they had been made on and as of said date. The
Investment Representations shall be true and correct in all respects when made, and shall be true and correct in all respects on the Closing
Date with the same force and effect as if they had been made on and as of said date. The Investors shall have performed in all material
respects all obligations and covenants herein required to be performed by them on or prior to the Closing Date.

 

(b)                The
Investors shall have executed and delivered the Registration Rights Agreement.

 

(c)                The
Investors shall have delivered the Purchase Price to the Company.

 

5.3       Termination
of Obligations to Effect Closing.

 

(a)                The
obligations of the Company, on the one hand, and the Investors, on the other hand, to effect the Closing shall terminate as follows:

 

	 	(i)	Upon the mutual written consent of the Company and the Investors;

 

	 	(ii)	By the Company if any of the conditions set forth in Section 5.2 shall have become incapable of fulfillment, and shall not have been waived by the Company;

 

	 	(iii)	By an Investor (with respect to itself only) if any of the conditions set forth in Section 5.1 shall have become incapable of fulfillment, and shall not have been waived by the Investor;

 

	 	(iv)	By either the Company or any Investor (with respect to itself only) if the Closing has not occurred on or prior to November 30, 2021; or

 

	 	(v)	By either the Company or any Investor (with respect to itself only) if the NYSE and Nasdaq are closed for a period of more than three trading days;

 

provided, however, that, except in the case of clause
(i) above, the party seeking to terminate its obligation to effect the Closing shall not then be in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement or the other Transaction Documents if such breach has resulted in the
circumstances giving rise to such party’s seeking to terminate its obligation to effect the Closing.

 

 

 

 

    	 	12	 

     

    

 

(b)                In
the event of termination by the Company or any Investor of its obligations to effect the Closing pursuant to this Section 5.3,
written notice thereof shall forthwith be given to the other Investors by the Company and the other Investors shall have the right to
terminate their obligations to effect the Closing upon written notice to the Company and the other Investors. Nothing in this Section
5.3 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this
Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of
its obligations under this Agreement or the other Transaction Documents.

 

6.             Covenants
and Agreements.

 

6.1       No
Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict
or interfere in any material respect with the Company’s obligations to the Investors under the Transaction Documents.

 

6.2       Insurance.
The Company shall maintain appropriate insurance coverage consistent with its business being conducted.

 

6.3       Compliance
with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees of all
governmental authorities.

 

6.4       Listing
of Underlying Shares and Related Matters. If the Company applies to have its Common Stock or other securities traded on any principal
stock exchange or market, it shall include in such application the Shares and will take such other action as is necessary to cause such
Common Stock to be so listed.

 

6.5       Termination
of Covenants. The provisions of Sections 6.4 through 6.6 shall terminate and be of no further force
and effect on the date on which the Company’s obligations under the Registration Rights Agreement to register or maintain the effectiveness
of any registration covering the Registrable Securities (as such term is defined in the Registration Rights Agreement) terminates.

 

6.6       Removal
of Legends. Consistent with federal and state securities laws, upon the earlier of (a) the sale or disposition of any Securities by
an Investor pursuant to Rule 144 or pursuant to any other exemption under the 1933 Act or (b) any Securities of the Investor becoming
eligible to be sold without restriction pursuant to all applicable requirements of Rule 144, upon the written request of such Investor,
the Company shall or, in the case of Common Stock, shall cause the transfer agent for the Common Stock (the “Transfer Agent”)
to issue replacement certificates representing such Securities.

 

6.7       Subsequent
Equity Sales.

 

(a)            The
Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers
to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer
or sale of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to the Investors,
or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any trading market such
that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before
the closing of such subsequent transaction.

 

(b)       
    If the Company issues shares of Common Stock at a purchase price of less than $1.60 per share (the “Reduced
Purchase Price”) during the twelve (12) months following the Closing, Investor shall receive a number of shares of Common Stock
equal to the difference between the number of shares Investor would have received at the Reduced Purchase Price and the number of Shares
Investor received at the Purchase Price (the “Additional Shares”); provided that shares of Common Stock issued (i) upon the
exercise or conversion of any outstanding stock options, warrants or other equity; or (ii) under the Company’s registration statement
on Form S-8 for compensation shall be excluded from the forgoing. The Company shall promptly instruct the Transfer Agent to issue such
Additional Shares in the same manner as the Shares. The Additional Shares shall carry the same registration rights as the shares issued
at the Reduced Purchase Price.

 

 

 

 

    	 	13	 

     

    

 

6.8       Equal
Treatment of Investors. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of
any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction
Documents. For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated
separately by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as
the Investors acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

6.9       Prohibited
Transactions. From the date hereof until one (1) year after the Closing Date, no Investor shall enter into any Prohibited Transaction
relating to the Common Stock.

 

7.             Survival
and Indemnification.

 

7.1       Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions contemplated
by this Agreement until the expiration of the applicable statute of limitations.

 

7.2       Indemnification.
The Company agrees to indemnify and hold harmless each Investor, its Affiliates and, and each of their directors, officers, shareholders,
partners, employees, agents, and any Person who controls Investor within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act (collectively, the “Investor Parties” and each an “Investor Party”), from and against any
and all losses, claims, damages, liabilities and expenses (including, without limitation, actual and reasonable attorney fees and disbursements
(subject to Section 7.3 below) and other actual expenses incurred in connection with investigating, preparing or defending
any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, “Losses”)
to which such Person may become subject as a result of (a) any breach of any representation, warranty, covenant or agreement made by or
to be performed on the part of the Company under the Transaction Documents; (b) any action instituted against any Investor Party, or any
of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of an Investor Party, with respect to
any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of Investor’s representation,
warranties or covenants or agreements under the Transaction Documents or any agreements or understandings Investor may have with any such
stockholder or any violations by Investor of state or federal securities laws or any conduct by Investor which constitutes fraud, gross
negligence, willful misconduct or malfeasance), (c) any untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement (or in a Registration Statement as amended by any post-effective amendment thereof by the Company) or arising out
of or based upon any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, and/or (d) any untrue statement or alleged untrue statement of a material fact included in any Prospectus ( or
any amendments or supplements to any Prospectus ), or arising out of or based upon any omission or alleged omission to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that (i) the Company shall not be obligated to indemnify any Investor Party for any Losses finally adjudicated to have
been caused solely by an untrue statement of a material fact or an omission to state a material fact made in reliance upon and conformity
with information furnished to the Company in writing by or on behalf of such Person expressly for use in the Registration Statement or
the Prospectus (or any amendment or supplement thereto) and (ii) the foregoing indemnity shall not inure to the benefit of any Investor
Party from whom the Person asserting any Losses purchased Securities, if a copy of the Prospectus (as then supplemented) was not sent
or given by or on behalf of such Investor Party to such Person, if required by law to have been delivered, at or prior to the written
confirmation of the sale of such Securities to such person, and if delivery of the Prospectus (as then supplemented) would have cured
the defect giving rise to such Losses, and the Company will reimburse any such Person for all such amounts as they are incurred by such
Person.

 

 

 

 

    	 	14	 

     

    

 

7.3       Conduct
of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (a) give prompt notice to
the indemnifying party of any claim with respect to which it seeks indemnification and (b) permit such indemnifying party to assume the
defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled
to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the
fees and expenses of such counsel shall be at the expense of such person unless (i) the indemnifying party has agreed to pay such fees
or expenses, (ii) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory
to such person or (iii) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict of interest
exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying
party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall
not have the right to assume the defense of such claim on behalf of such person); and provided, further, that
the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder,
except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such
claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction,
be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying
party will, except with the consent of the indemnified party, consent to entry of any judgment or enter into any settlement that does
not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation. The Company will not be liable to any indemnified party under this Agreement (a) for any settlement
by such indemnified party effected without the Company’s prior written consent, which shall not be unreasonably withheld, conditioned
or delayed, or (b) for any Losses incurred by such indemnified party which a court of competent jurisdiction determines in a final judgment
which is not subject to further appeal are solely attributable to (A) a breach of any of the representations, warranties, covenants or
agreements made by such indemnified party under this Agreement or in any other Transaction Document or (B) the fraud, gross negligence
or willful misconduct of such indemnified party.

 

8.             Miscellaneous.

 

8.1       Successors
and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and their respective
successors and assigns. An Investor may transfer or assign, in whole or from time to time in part, to one or more persons its rights hereunder
in connection with the transfer of Securities by such Investor to such person, provided that (a) the Investor agrees in writing with such
transferee or assignee to assign all or any portion of such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment; (b) the Company is, within a reasonable time after such transfer or assignment, furnished with
written notice of (i) the name and address of such transferee or assignee, and (ii) the securities with respect to which such registration
rights are being transferred or assigned; (c) immediately following such transfer or assignment the further disposition of such securities
by such transferee or assignee is restricted under the 1933 Act or applicable state securities laws if so required; (d) at or before the
time the Company receives the written notice contemplated by clause (b) of this sentence such transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein; (e) such transfer or assignment shall have been made in accordance
with the applicable requirements of this Agreement; and (f) such transfer or assignment shall have been conducted in accordance with all
applicable federal and state securities laws. The provisions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Without limiting the generality of the foregoing, in the event that the Company is a
party to a merger, consolidation, share exchange or similar business combination transaction in which the Common Stock is converted into
the equity securities of another Person, from and after the effective time of such transaction, such Person shall agree to and, by virtue
of such transaction, have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to
such Person and the term “Common Stock” shall be deemed to refer to the securities received by the Investors in connection
with such transaction. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto
or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except
as expressly provided in this Agreement.

 

 

 

 

    	 	15	 

     

    

 

8.2       Counterparts;
Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement may also be executed via facsimile or by e-mail in a “.pdf” format
data file, which shall be deemed an original.

 

8.3       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

8.4       Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively
given as hereinafter described (a) if given by personal delivery, then such notice shall be deemed given upon such delivery, (b) if given
by facsimile or e-mail, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (c) if given by mail,
then such notice shall be deemed given upon the earlier of (i) receipt of such notice by the recipient or (ii) three days after such notice
is deposited in first class mail, postage prepaid, and (d) if given by an internationally recognized overnight air courier, then such
notice shall be deemed given one Business Day after delivery to such carrier. All notices shall be addressed to the party to be notified
at the address as follows, or at such other address as such party may designate by ten days’ advance written notice to the other
party:

 

If to the Company:

 

Precision Optics Corporation, Inc.

22 East Broadway

Gardner, Massachusetts 01440-3338

Attention: Chief Executive Officer

Fax: (978) 630-1487

E-mail: [____]

 

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

 

Amy Trombly

Trombly Business Law, PC

1314 Main St., Ste 150

Louisville, CO 80027

Fax: (617) 243-0066

E-mail: [____]

 

If to the Investors:

 

to the addresses set forth on the signature pages hereto.

 

8.5       Expenses.
The parties hereto shall pay their own costs and expenses in connection herewith, regardless of whether the transactions contemplated
hereby are consummated. In the event that legal proceedings are commenced by any party to this Agreement against another party to this
Agreement in connection with this Agreement or the other Transaction Documents, the party or parties which do not prevail in such proceedings
shall severally, but not jointly, pay their pro rata share of the reasonable attorneys’ fees and other reasonable out-of-pocket
costs and expenses incurred by the prevailing party in such proceedings.

 

 

 

 

    	 	16	 

     

    

 

8.6       Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and Investors representing
at least one-half of the shares issued in this transaction. Any amendment or waiver effected in accordance with this paragraph shall be
binding upon each holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities,
and the Company.

 

8.7       Publicity.
The Company will file a public release or announcement concerning the transactions contemplated hereby as required by law or the applicable
rules or regulations of any securities exchange or securities market.

 

8.8       Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as
if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect.

 

8.9       Entire
Agreement. This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents constitute the
entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersedes all prior agreements and
understandings, both oral and written, between the parties with respect to the subject matter hereof and thereof.

 

8.10     Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained.

 

8.11     Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of New York applicable to agreements made and to be performed entirely within the State of New York (except to the extent
the provisions of the California Corporations Code would be mandatorily applicable to the issuance of the Shares). Each of the parties
hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or
arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under
this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding
and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW, EACH OF THE PARTIES HERETO WAIVES
ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY
AS TO THIS WAIVER.

 

8.12     Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations
of any other Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant to the Transaction
Documents has been made by such Investor independently of any other Investor. Nothing contained herein or in any Transaction Document,
and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor acknowledges that no other Investor
has acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of
such Investor in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents.
Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out
of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional
party in any proceeding for such purpose. Each Investor has been represented by its own separate legal counsel in their review and negotiation
of the Transaction Documents. The Company acknowledges that each of the Investors has been provided with the same Transaction Documents
for the purpose of closing a transaction with multiple Investors and not because it was required or requested to do so by any Investor.

 

[Signature Pages Follow]

 

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Securities Purchase Agreement or caused their duly authorized officers to execute this Securities Purchase Agreement
as of the date first above written.

 

	The Company:	PRECISION OPTICS CORPORATION, INC.
	 	 
	 	By: 	/s/ Joseph N. Forkey
	 	Name:

Title:	Jospeh N. Forkey

President and Chief Executive Officer

 

 

 

[Signature Page for Investor Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

[Signature Page to Securities Purchase Agreement]

 

	Name of Investor:	 	_________________________________
	 	 	 
	 	 	By: ______________________________
	 	 	Name:
	 	 	Title:
	 	 	 
	Address for Delivery of Certificate to Investor:	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________
	 	 	Fax: _____________________________
	 	 	Email: ____________________________
	 	 	 
	Address for Notice (if different):	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________
	 	 	Fax: _____________________________
	 	 	Email: ____________________________
	 	 	 
	Subscription Amount:	 	$ __________
	 	 	 
	Shares	 	___________
	 	 	 
	EIN Number:	 	___________
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

Schedule A

 

Purchase and Sale of Shares

 

	
     

    Name
	Number of Shares of

Common Stock	
    Aggregate

    Purchase Price

	[investor name]	 	 
	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

Disclosure Schedules to the Securities Purchase
Agreement

 

Schedule 3.1 – Subsidiaries.

 

	Name	 	Jurisdiction of Incorporation
	 	 	 
	Precise Medical, Inc.	 	Commonwealth of Massachusetts, USA
	Wood’s Precision Optics Corporation, Limited	 	Hong Kong

 

 

Schedule 3.3 – Capitalization.

 

The capitalization of the Company, as of June
30, 2021 is set forth below.

 

	Common stock outstanding	13,282,476
	Common stock options	2,578,200
	Total	15,860,676

 

 

Schedule 3.15 Intellectual Property.

 

On July 28, 2011, as reported in the Company’s
Form 8-K filed with the SEC on August 3, 2011, the Company entered into an asset purchase agreement with Intuitive Surgical Operations,
Inc., through which the Company assigned all of the issued and pending patents that the Company held as of the date of the agreement.
As part of the agreement the Company retained an exclusive license to directly and indirectly make, use, develop, modify, improve, substitute,
iterate, combine, distribute, offer for sale, and sell, import and export products outside the field of medical robotics throughout countries
worldwide and a non-exclusive license to directly and indirectly make, use, develop, modify, improve, substitute, iterate, combine, distribute,
offer for sale, and sell, import and export products and services for in vitro procedures utilizing genomic and/or proteomic lab-on-a-chip
or other similar benchtop diagnoses, both inside and outside the field of medical robotics throughout countries worldwide.

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

Exhibit A

 

Registration Rights Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}]]