Document:

ex_143957.htm

 

EXHIBIT 10.201

 

EMPLOYMENT, NON-COMPETITION

AND PROPRIETARY RIGHTS AGREEMENT

 

THIS EMPLOYMENT NON-COMPETITION AND PROPRIETARY RIGHTS AGREEMENT (the “Agreement”) is made as of this 22nd day of April, 2019 (the “Effective Date”), by and between Twinlab Consolidated Holdings, Inc., a Nevada corporation (the “Company”), and Carla Goffstein (the “Employee”).

 

RECITALS:

 

A.     The Company is engaged in the sale and manufacture of nutritional supplements, vitamins, and other healthcare products;

 

B.     The Company desires to employ the Employee and Employee desires to be employed by the Company as its Chief Financial Officer, subject to the terms, conditions and covenants hereinafter set forth; and

 

C.     As a condition of the Company employing the Employee, Employee has agreed not to divulge to the public the Company’s confidential information, not to solicit the Company’s vendors, customers or employees and not to compete with the Company, all upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, covenants and conditions set forth herein, the Employee and the Company hereby agree as follows:

 

ARTICLE I

EMPLOYMENT

 

1.1     Employment. The Company hereby employs, engages and hires Employee, and Employee hereby accepts employment, as its Chief Financial Officer upon the terms and conditions set forth in this Agreement. Employee reports to the Company’s Chief Executive Officer. Employee shall be based out of the Company’s executive offices in Boca Raton, Florida.

 

1.2     Activities and Duties During Employment. Employee represents and warrants to the Company that Employee is free to accept employment with the Company and that Employee has no prior or other commitments or obligations of any kind to anyone else which would hinder or interfere with the acceptance and performance of the obligations under this Agreement.

 

Employee accepts the employment described in Article I of this Agreement and agrees to devote her exclusive full time and efforts to the faithful and diligent performance of the services described herein, including the performance of such other services and responsibilities as the Company may, from time to time, stipulate. Employee shall not serve as an officer or director of, or otherwise perform services for compensation for, any entity other than the Company or its Affiliates without the prior written consent of the Company’s CEO; provided that Employee may: (i) serve as an officer or director of, or otherwise participate in, civic, educational, social, charitable and religious organizations; and (ii) make and manage personal investments of Executive’s choice, so long as, in each case, such activities do not interfere with Executive’s employment obligations, performance and/or duties to the Company and (if applicable) any of its Affiliates. Employee shall comply with and be bound by the Company’s operating policies, procedures and practices in effect from time to time during the terms of her employment.

 

 

 

 

ARTICLE II

TERM, COMPENSATION, EMPLOYEE BENEFITS

 

2.1     Term. The term of employment under this Agreement shall be two (2) years, commencing as of the Effective Date (such term of employment, as it may be extended or terminated, is herein referred to as the “Employment Term”), which Employment Term shall automatically renew for additional one (1) year periods unless terminated by Employee or the Company.

 

2.2     Termination. The Employment Term and Employment of Employee may be terminated as follows:

 

(a)     Automatically, without the action of either party, upon the death of the Employee.

 

(b)     By either party upon the Total Disability of the Employee. The Employee shall be considered to have a Total Disability for purposes of this Agreement if she is unable by reason of accident or illness or mental disability to substantially perform her employment duties and is expected to be in such condition for periods totaling six (6) months (whether or not consecutive), during any period of twelve (12) consecutive months. The determination of whether a Total Disability has occurred shall be based on the determination of a physician selected by the Company. Nothing herein shall limit the Employee’s right to receive any payments to which Employee may be entitled under any disability or employee benefit plan of the Company or under any disability or insurance policy or plan. During a period of Total Disability prior to termination hereunder, Employee shall continue to receive her full compensation (including base salary and bonus) and benefits.

 

(c)     By the Employee upon thirty (30) days’ written notice to the Company.

 

(d)     By the Company “Without Cause,” and upon thirty (30) days written notice which shall mean a termination of the Employee’s employment by the Company other than pursuant to the provisions of Section 2.2(a), Section 2.2(b) and Section 2.2(e) hereof.

 

(e)     By the Company for “Cause” (as defined below).

 

(f)     By the Employee with Good Reason (as defined in Section 2.6(b) of this Agreement).”

 

2.3     Cessation of Rights and Obligations: Survival of Certain Provisions. On the date of expiration or earlier termination of the Employment Term for any reason, all of the respective rights, duties, obligations and covenants of the parties, as set forth herein, shall except as specifically provided herein to the contrary, cease and become of no further force or effect as of the date of said termination, and shall only survive as expressly provided for herein.

 

2.4     Cessation of Compensation. In lieu of any severance under any severance plan that the Company may then have in effect, the Company shall pay to the Employee, and the Employee shall be entitled to receive, the following amounts in full satisfaction of any obligation to Employee for termination of this Agreement:

 

(a)     Death/Total Disability/ Voluntary Termination/Termination For Cause/Expiration of Term. Upon termination of the Employee’s employment pursuant to Sections 2.2(a), (b), (c) or (e), Employee shall be entitled to receive Employee’s base salary, benefits and expense reimbursements solely through the date of termination; provided that nothing herein shall limit the Employee’s right to receive any payments to which Employee may be entitled under any disability or employee benefit plan of the Company or under any disability or insurance policy or plan.

 

 

 

 

(b)     Without Cause. If Employee’s employment is terminated Without Cause or with Good Reason, Employee will be entitled to receive payment of severance benefits in an amount equal to twelve (12) months’ Base Salary (at the rate then in effect and subject to any applicable tax withholding).    The applicable number of months of Base Salary which may be available to Employee pursuant to the foregoing provisions of this Section 2.4(b) shall each, as applicable, be deemed the “Severance Period.” Any amounts payable pursuant to foregoing provisions of this Section 2.4(b) shall be paid in substantially equal installments in accordance with the Company’s standard payroll practices scheduled over a period of time equal to the applicable Severance Period and subject to all applicable withholding taxes. For example, if Employee is entitled pursuant hereto to receive severance benefits in an amount equal to twelve (12) months of Base Salary, then such severance shall be paid in substantially equal installments in accordance with the Company’s standard payroll practices over the twelve (12) month Severance Period and subject to all applicable withholding taxes.

 

In addition to the foregoing, Employee shall be entitled to receive any accrued yet unpaid bonus payable on account of any calendar year ending prior to the year in which the termination occurs, which amount, if any, shall be paid at such time and in such manner as if Employee had remained an employee of the Company through the period when such payments were otherwise due.

 

Provided that Employee makes a timely election to continue coverage under the Company’s group health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), health insurance benefits with the same coverage (subject to Company’s right to change coverage as set forth in the last sentence of this Section) provided to Employee prior to the termination (e.g. medical, dental, optical, mental health) will be provided to the Employee, and employee’s eligible dependents, at the expense of the Company for a number of months equal to the number of months in the Severance Period, if any, applicable to Employee pursuant to the foregoing provisions of this Section 2.4(b), but not longer than until Employee is covered by comparable health insurance benefits from another employer or is otherwise ineligible for COBRA continuation coverage. Nothing in this Section 2.4(c) shall restrict the ability of the Company or its successor from changing some or all of the terms of such health insurance benefits, the cost to participants or other features of such benefits; provided, however, that all similarly situated participants are treated the same.

 

Any and all amounts payable and benefits or additional rights provided to the Employee pursuant to this Section 2.4(b) upon a termination of employment shall only be payable or provided if Employee timely executes and delivers, does not revoke within any applicable revocation period, and continues to honor a general release agreement in favor of and in a form acceptable to the Company (the “General Release Agreement”), which General Release Agreement shall, among other provisions, include an unconditional release by Employee of any and all claims that Employee might otherwise have relating to Employee’s employment and/or the termination of Employee’s employment, or relating to any other act, omission or statement up to the date on which Employee executes the General Release Agreement, against the Company and its affiliated and related entities (including, individually and collectively, any entities controlling, controlled by or under common control with the Company) and related persons (including the officers, executives, directors, employees, owners, shareholders, and agents of the Company and each affiliated and related entity); provided that the General Release Agreement will not include a waiver of any vested benefits Employee may have accrued under any employee benefit plan (including any Company qualified retirement plan or other written benefit plan applicable to Employee) through date of termination (the “Termination Date”), or any rights Employee may otherwise have to indemnification under an indemnification agreement with Company, if any, or the Company’s Articles of Incorporation or Bylaws for acts or omissions during Employee’s employment with the Company.

 

2.5     Business Expenses.

 

(a)     Reimbursement. The Company shall reimburse the Employee for all reasonable, ordinary, and necessary business expenses incurred by her in connection with the performance of her duties hereunder, including, but not limited to, ordinary and necessary travel expenses and entertainment expenses. The reimbursement of business expenses will be governed by the policies for the Company and the terms otherwise set forth herein.

 

 

 

 

(b)     Accounting. The Employee shall provide the Company with an accounting of her expenses, which accounting shall clearly reflect which expenses were incurred for proper business purposes in accordance with the policies adopted by the Company and as such are reimbursable by the Company. The Employee shall provide the Company with such other supporting documentation and other substantiation of reimbursable expenses as will conform to Internal Revenue Service or other requirements. All such reimbursements shall be payable by the Company to the Employee within a reasonable time after receipt by the Company of appropriate documentation therefore.

 

2.6     Definitions. For purposes of this Agreement, the following definitions will apply:

 

(a)     “Cause” for Employee’s termination will exist if the Company terminates Employee’s employment for any of the following reasons: (i) Employee willfully fails to substantially perform her duties hereunder (other than any such failure due to her physical or mental illness), and such willful failure is not remedied within thirty (30) days after written notice from the Company’s Chief Executive Officer, which written notice shall state that failure to remedy such conduct may results in an involuntary termination for Cause; (ii) Employee engages in willful and serious misconduct (including, but not limited to, an act of fraud or embezzlement) that has caused or is reasonably expected to result in material injury to the Company or any of its Affiliates; (iii) Employee is convicted of or enters a plea of guilty or nolo contendere to a: (A) crime that materially adversely affects her ability to perform her duties on behalf of the Company; or (B) felony; (iv) Employee engages in alcohol or substance abuse which adversely affects her ability to perform her duties; or, (v) Employee willfully breaches any of her obligations hereunder or under any other agreement between herself and the Company, and such willful breach is not remedied within thirty (30) days after written notice from the Company’s Chief Executive Officer, which written notice shall state that failure to remedy such conduct may result in an involuntary termination for Cause.

  

(b)     “Good Reason” for Employee’s termination of employment will be deemed to exist if any of the following occurs: (i) a material diminution in the Employee’s base compensation; (ii) a material diminution in the Employee’s authority, duties, or responsibilities; (iii) a material change in the executive level of the party to whom the Employee is required to report (a change in CEO will not be considered material under this Agreement); (iv) a material change in the geographic location at which the Employee must perform the services under this Agreement; or (v) any other action or inaction that constitutes a material breach by the Company of this Agreement or any other agreement between the Company and the Employee. For purposes of this Agreement, Good Reason shall not be deemed to exist unless the Employee’s termination of employment for Good Reason occurs within six (6) months following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.”

 

(c)  “Change in Control” means any of the following:

 

(i) The acquisition by any person of Beneficial Ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of more than fifty percent (50%) of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”) (the foregoing Beneficial Ownership hereinafter being referred to as a "Controlling Interest"); provided, however, that for purposes of this definition, the following acquisitions shall not constitute or result in a Change of Control: (x) any acquisition by the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary of the Company; (y) any acquisition by either David L. Van Andel (“Van Andel”) or B. Thomas Golisano (“Golisano”), or any person or entity with respect to whom Van Andel or Golisano are required to claim Beneficial Ownership under Rule 13d-3 under the Securities Exchange Act of 1934, as amended; or (z) any acquisition by any corporation pursuant to a transaction which complies with clauses (A) and (B) of subsection (iii) below; or

 

 

 

 

(ii) During any period of two (2) consecutive years (not including any period prior to the Commencement Date) individuals who constitute the Company’s board of directors on the Commencement Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Company’s board of directors; provided, however, that any individual becoming a director subsequent to the Commencement Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Company’s board of directors; or

  

(iii) Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and (B) at least a majority of the members of the Board of Directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Company’s board of directors, providing for such Business Combination; or approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 

 

2.7     Change in Control of the Company. If the Employee’s employment is terminated by the Company Without Cause pursuant to Section 2.2(d) hereof or by the Employee for Good Reason pursuant to Section 2.2(f) hereof, in either case during the twelve (12) month period immediately following the Change in Control, then in lieu of any amounts otherwise payable under Section 2.4(b) hereof, the Employee shall be entitled to the following:

 

(i)     payment of (a) any accrued yet unpaid base salary through the date of termination, (b) any accrued yet unpaid bonus payable on account of any calendar year ending prior to the year in which the termination occurs, (c) benefits through the date of termination, and (d) reimbursement of reimbursable expenses incurred prior to the date of termination; and

 

(ii)     a severance amount equal to six (6) months at Employee’s then current Base Salary if such termination is during the first year after the Effective Date, and a severance amount equal to four (4) months if such termination is subsequent to the first year following the Effective Date, each such period a “Severance Period” and any such amounts to be paid in substantially equal installments in accordance with the Company’s standard payroll practices over the applicable Severance Period, and in each case, subject to any applicable withholding taxes. 

 

 

 

 

2.8     Compensation. During Employee’s employment, the Company shall pay Employee such salary, bonus and other benefits and awards as set forth on Exhibit A, provided however, that the Company and Employee may agree from time to time to change the Compensation paid to Employee.

  

2.9     Payment. Except as otherwise provided herein, all compensation shall be payable in intervals in accordance with the general payroll payment practice of the Company. The compensation shall be subject to such withholdings and deductions by the Company as are required by law.

 

2.10     Vacation. The Employee shall be entitled to receive personal time off (“PTO”) equal to 160 hours, to be scheduled and taken in accordance with the PTO policies outlined in the Company’s Employee Handbook.

 

2.11     Other Benefits. Employee shall be entitled to participate in any retirement, pension, profit-sharing, stock option, health plan, insurance, disability income, incentive compensation and welfare or any other benefit plan or plans of the Company which may now or hereafter be in effect and for which the Employee is eligible or for which all senior executives in general are eligible. Notwithstanding the forgoing, the Company shall be under no obligation to institute or continue the existence of any such benefit plan.

 

2.13     Indemnification. The Company shall indemnify and hold Employee harmless to the fullest extent permitted by law and under the Articles and bylaws of the Company as, to and from any and all costs, expenses (including reasonable attorneys’ fees, which shall be paid in advance by the Company, subject to recoupment in accordance with applicable law) or damages incurred by Employee as a result of any claim, suit, action or judgment arising out of the activities of the Company or its Affiliates or the Employee’s activities as an employee, officer or director of the Company or any related company; provided, however that the Employee shall not be entitled to indemnification hereunder to the extent the damages are the result of actions or omissions which have been finally adjudicated by a court of competent jurisdiction to constitute gross negligence or willful or intentional misconduct by the Employee. This provision shall survive the termination of this Agreement.  

 

ARTICLE III

CONFIDENTIALITY, NON-SOLICITATION, NON-COMPETE

 

3.1     Non-Disclosure of Confidential Information. Employee hereby acknowledges and agrees that, as of a result of the employment hereunder, Employee will acquire, develop, and use information that is not generally known to the public or to the Company’s industry, including but not limited to, certain records, phone locations, documentation, software programs, price lists, customer lists, contract prices for the Company’s services, business plans and prospects of the Company, equipment configurations, ledgers and general information, employee records, mailing lists, manufacturing techniques, product formulations, accounts receivable and payable ledgers, financial and other records of the Company or its affiliates, and other similar matters, as well as any information disclosed to the Company by any third party under which the Company has a confidentiality obligation to the third party (all such information pertaining to the Company, its affiliates or disclosed to Company under confidentiality from third parties being hereinafter referred to as “Confidential Information”). Employee further acknowledges and agrees that the Confidential Information is of great value to the Company and its affiliates and that the restrictions and agreements contained in this Agreement are reasonably necessary to protect the Confidential Information and the goodwill of the Company. Accordingly, Employee hereby agrees that:

 

(a)     Employee will not, while employed by the Company or for two years thereafter, directly or indirectly, except in connection with Employee’s performance of the duties under this Agreement, or as otherwise authorized in writing by the Company for the benefit of the Company or its “Affiliates” (as hereinafter defined), divulge to any person, firm, corporation, limited liability company, or organization, other than the Company or its Affiliates (hereinafter referred to as “Third Parties”), or use or cause or authorize any Third Parties to use, the Confidential Information, except as required by law; and

 

 

 

 

(b)     Upon the termination of Employee’s employment for any reason whatsoever, Employee shall deliver or cause to be delivered to the Company any and all Confidential Information, including drawings, notebooks, notes, records, keys, disks data and other documents and materials belonging to the Company or its Affiliates which is in her possession or under her control relating to the Company or its Affiliates or abstracts therefrom, regardless of the medium upon which it is stored, and will deliver to the Company upon such termination of employment any other property of the Company or its Affiliates which is in her possession or control.

 

3.2     Non-Solicitation Covenant. Employee hereby covenants and agrees that while employed by the Company and for a period of two (2) years following the termination of the Employee’s employment with the Company for any reason, Employee shall not: (i) directly or indirectly, endeavor to entice away from the Company or its Affiliates any person, firm, corporation, limited liability company or other entity that was a customer of the Company at any time while Employee was an employee of the Company or its Affiliates or who is a “prospective vendor or customer” of the Company; or (ii) induce, attempt to induce or hire any employee (or any person who was an employee during the year preceding the date of any solicitation) of the Company or its Affiliates to leave the employ of the Company or its Affiliates or to otherwise perform services directly or indirectly for others, or in any way interfere with the relationship between any such employee and the Company or its Affiliates. For purposes hereof, “prospective vendor or customer” shall mean any person or entity which has been solicited for business by Employee or any officer or other employee of the Company or its Affiliates at any time during Employee’s employment.

 

3.3     Non-Competition Covenant. Employee acknowledges that the covenants set forth in this Section 3.3 are reasonable. Employee also acknowledges that the enforcement of the covenants set forth in this Section 3.3 will not preclude Employee from being gainfully employed in such manner and to the extent as to provide a standard of living for herself, the members of her family and the others dependent upon her of at least the level to which she and they have become accustomed and may expect. Employee hereby agrees that she shall not, during her employment and for a period of six (6) months after the end of her employment directly or indirectly, engage in any proprietorship, partnership, firms trust, company, limited liability company or other entity, other than the Company (whether as owner, partner, trustee, beneficiary, stockholder, member, officer, director, employee, independent contractor, agent, servant, consultant, manager, lessor, lessee, or otherwise) that competes with the Company in the Business of the Company in the Restricted Territory (as defined herein), other than acquiring an ownership interest in a company listed on a recognized Stock exchange in an amount which does not exceed five percent (5%) of the outstanding Stock of such corporation. For purposes of this Agreement: (i) the term “Business of the Company” shall include all business activities and ventures primarily related to the manufacture, marketing and sale of nutritional supplements, and other healthcare products and services in which the Company is engaged, and all other businesses in which the Company subsequently is engaged in prior to, and on the date of, termination of Employee’s employment; and (ii) the term “Restricted Territory” means any state in the United States of America.

 

3.4     Remedies.

 

(a)     Injunctive Relief. Employee expressly acknowledges and agrees that a violation of any of the provisions of Sections 3.1, 3.2 or 3.3 could cause immediate and irreparable harm, loss and damage to the Company not adequately compensable by a monetary award. Employee further acknowledges and agrees that the time periods and territorial areas provided for herein are reasonable in order to adequately protect the Business of the Company, the enjoyment of the Confidential Information and the goodwill of the Company. Without limiting any of the other remedies available to the Company at law or in equity, or the Company’s right or ability to collect money damages, Employee agrees that any actual or threatened violation of any of the provisions of Sections 3.1, 3.2, or 3.3 may be immediately restrained or enjoined by any court of competent jurisdiction, injunction may be issued in any court of competent jurisdiction, without notice and without bond. Notwithstanding anything to the contrary contained in this Agreement, the provisions of this Article III shall survive the termination of Employee’s employment.

 

 

 

 

(b)     Enforcement: It is the desire of the parties that the provisions of Sections 3.1, 3.2, or 3.3 be enforced to the fullest extent permissible under the laws and public policies in each jurisdiction in which enforcement might be sought. Accordingly, if any particular portion of Sections 3.1, 3.2 or 3.3 shall ever be adjudicated as invalid or unenforceable, or if the application thereof to any party or circumstance shall be adjudicated to be prohibited by or invalidated by such laws or public policies, such section or sections shall be: (i) deemed amended to delete there from such portions so adjudicated; or (ii) modified as determined appropriate by such a court, such deletions or modifications to apply only with respect to the operation of such section or sections in the particular jurisdictions so adjudicating on the parties and under the circumstances as to which so adjudicated.

 

3.5     Company. All references to the Company in this Article III shall include “Affiliates” of the Company, as that term is construed under Rule 405 of the Securities Act of 1933, as amended.

 

ARTICLE IV

MISCELLANEOUS

 

4.1     Notices. All notices or other communications required or permitted hereunder shall be in writing addressed to the last known address of the Party entitled to notice and shall be deemed given, delivered and received: (a) when delivered, if delivered personally; (b) four (4) days after mailing, when sent by registered or certified mail, return receipt requested and postage prepaid; (c) one (1) business day after delivery to a private courier service, when delivered to a private courier service providing documented overnight service; and (d) on the date of delivery if delivered by telecopy, receipt confirmed, provided that a confirmation copy is sent on the next business day by first class mail, postage prepaid, in each case addressed as follows:

 

If to Twinlab:    4800 T-Rex Avenue, Suite 305, Boca Raton, FL 33431 Attn: Chief Executive Officer

 

If to Employee, the last updated address that the Employee has provided to the Company’s Human Resources dept.

 

Any party may change its address for purposes of this paragraph by giving the other party written notice of the new address in the manner set forth above.

 

4.2     Entire Agreement; Amendments, Etc. This Agreement contains the entire agreement and understanding of the parties hereto, and supersedes all prior agreements and understandings relating to the subject matter hereof. No modification, amendment, waiver or alteration of this Agreement or any provision or term hereof shall in any event be effective unless the same shall be in writing, executed by both parties hereto, and any waiver so given shall be effective only in the specific instance and for the specific purpose for which given.

 

4.3     Benefit. This Agreement shall be binding upon, and inure to the benefit of, and shall be enforceable by, the heirs, successors, legal representatives and permitted assignees of Employee and the successors, assignees and transferees of the Company. This Agreement or any right or interest hereunder may not be assigned by Employee without the prior written consent of the Company.

 

4.4     No Waiver. No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder or pursuant hereto shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or pursuant thereto.

 

 

 

 

4.5     Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law but, if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provision of this Agreement. If any part of any covenant is unenforceable or the making of any covenant hereunder is unenforceable, the parties hereto agree, and it is their desire, that the court shall substitute a judicially enforceable limitation in its place, and that as so modified this Agreement, as so modified, shall be binding upon the parties as if originally set forth herein.

 

4.6     Compliance and Headings. Time is of the essence of this Agreement. The headings in this Agreement are intended to be for convenience and reference only, and shall not define or limit the scope, extent or intent or otherwise affect the meaning of any portion hereof.

 

4.7     Arbitration. If there is any dispute between the parties concerning any matter relating to this Agreement, the exclusive basis for adjudication of this Agreement (except with respect to the performance of the covenants and obligations as set forth in Article III above) shall be by arbitration as detailed herein. Either party may submit the dispute to binding arbitration. Any such arbitration proceeding will be conducted in Palm Beach, Florida and except as otherwise provided in this Agreement, will be conducted under the auspices of JAMS/Mediation, Inc., in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall allow such discovery as the arbitrator determines appropriate under the circumstances. Each party will bear its respective attorneys’ fees. The award and decision of the arbitrator shall be conclusive and binding on all parties to this Agreement and judgment on the award may be entered in any court of competent jurisdiction. The parties acknowledge and agree that any arbitration award may be enforced against either or both of them in a court of competent jurisdiction and each waives any right to contest the validity or enforceability of such award. The parties further agree to be bound by the provisions of any statute of limitations which would be applicable in a court of law to the controversy or claim which is the subject of any arbitration proceeding initiated under the Agreement. The parties further agree that they are entitled in any arbitration proceeding to the entry of an order, by a court of competent jurisdiction pursuant to an opinion of the arbitrator, for specific performance of any of the requirements of this Agreement.

 

In any action to enforce any of the provisions of Article III hereof, the action shall be litigated in the state or federal courts situated in Palm Beach County, to which jurisdiction and venue all parties consent. Each party hereby waives its right to trial by jury with respect to such action. Company shall be entitled to injunctive relief, without the necessity of posting bond to remedy any breach of any of the terms of Article III of this Agreement by Employee.

 

4.8     Governing Law. The parties agree that this Agreement shall be governed by, interpreted and construed in accordance with the laws of the State of Florida.

 

4.9     Counterparts. This Agreement may be executed in one or more counterparts, whether by original, photocopy, facsimile or e-mail attachment in PDF format, each of which will be deemed an original and all of which together will constitute one and the same instrument.

 

4.10     Recitals. The Recitals set forth above are hereby incorporated in and made a part of this Agreement by this reference.

 

4.11     Survival. Employee’s obligations under Article III hereof shall survive any termination of this Agreement.

 

 

 

 

	 	TWINLAB CONSOLIDATED HOLDINGS, INC.	 	 	EMPLOYEE	 
	 	 	 	 	 	 
	 	/s/ Anthony Zolezzi	 	 	/s/ Carla Goffstein	 
	 	
			Anthony Zolezzi, CEO

				 	 	
			Carla Goffstein

				 

 

 

 

 

Exhibit A

 

 

(a)     Base Salary: As of the Effective Date is $275,000 per annum.   

 

(b)     Bonus: Employee shall be eligible to receive an annual bonus based upon the achievement of metrics agreed to annually, in writing, by the Employee and the Compensation Committee of the Company’s Board of Directors (or the CEO if designated by the Compensation Committee), the target for which shall be up to 50% of Employee’s Base Salary, but which is not subject to any cap (the “Annual Bonus”). Payments of this bonus shall only be made at the completion of the Company’s annual audit and the review of the audit by both the audit committee and the compensation committee of the board of directors of the Company. Within 45 days from the completion of the audit, payment shall be made in accordance with the Company’s usual payroll proceduresExhibit

Exhibit 10.1

THE SYMBOL “[*]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

ASSET PURCHASE AND CONTRIBUTION AGREEMENT BY AND AMONG
YAPSTONE, INC.,

PRIORITY REAL ESTATE TECHNOLOGY, LLC, AND PRIORITY TECHNOLOGY HOLDINGS, INC.
DATED MARCH 22, 2019

Table of Contents
Page

ARTICLE I    DEFINITIONS; CONSTRUCTION    1
		
	1.1
	Defined Terms    1

		
	1.2
	Additional Defined Terms    6

		
	1.3
	Construction    8

		
	1.4
	Exhibits and the Seller Disclosure Schedule    8

		
	1.5
	Knowledge    8

ARTICLE II    SALE AND CONTRIBUTION OF ASSETS AND ASSUMPTION
OF LIABILITIES    9
		
	2.1
	Sale and Contribution of Assets    9

		
	2.2
	Assets Defined    9

		
	2.3
	Excluded Assets    9

		
	2.4
	Assumption of Liabilities    11

		
	2.5
	Excluded Liabilities    11

		
	2.6
	Consents of Third Parties    11

		
	2.7
	Bulk Sales    12

		
	2.8
	Wrong Pocket    12

		
	2.9
	Withholding    12

ARTICLE III    PURCHASE PRICE AND CLOSING    13
		
	3.1
	Purchase Price; Delivery of Funds; Contribution    13

		
	3.2
	Allocation of Purchase Price and Contribution    14

		
	3.3
	Closing; Closing Deliverables    14

ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF SELLER    16
		
	4.1
	Due Organization, Good Standing    16

		
	4.2
	Authorization; Noncontravention    16

		
	4.3
	Consents and Approvals    17

		
	4.4
	Financial Statements    17

		
	4.5
	Absence of Certain Changes    17

		
	4.6
	Title to Assets    18

		
	4.7
	Contracts    18

		
	4.8
	Litigation    19

		
	4.9
	Tax Matters    19

		
	4.10
	Compliance with Laws    20

		
	4.11
	Sufficiency of Assets    21

		
	4.12
	Open Source Software    21

		
	4.13
	Finders; Brokers    21

		
	4.14
	Exclusivity of Representations    21

ARTICLE V    REPRESENTATIONS AND WARRANTIES OF PURCHASER    21
		
	5.1
	Due Organization, Good Standing and Power of Purchaser    21

		
	5.2
	Authorization; Noncontravention    21

		
	5.3
	Consents and Approvals    22

Table of Contents (continued)
Page
		
	5.4
	Finders; Brokers    22

		
	5.5
	Availability of Funds; Solvency    22

		
	5.6
	Capitalization    22

		
	5.7
	Compliance with Laws    23

		
	5.8
	Title to Assets    23

		
	5.9
	Litigation    23

		
	5.10
	Financial Statements    23

		
	5.11
	Tax Matters    23

		
	5.12
	Certain Transactions    24

		
	5.13
	Exclusivity of Representations    24

ARTICLE VI    COVENANTS    24
		
	6.1
	Confidentiality    24

		
	6.2
	Public Announcements    25

		
	6.3
	Post-Closing Access to Records; Reporting Obligations; Personnel; Litigation Support    25

		
	6.4
	Tax Matters    26

		
	6.5
	Domain Names    26

		
	6.6
	Parent Guarantee of Purchaser Indemnification Obligations    27

		
	6.7
	Further Assurances    27

ARTICLE VII    SURVIVAL; INDEMNIFICATION    28
		
	7.1
	Survival of Representations and Warranties    28

		
	7.2
	Indemnification by Seller    28

		
	7.3
	Indemnification by Purchaser    28

		
	7.4
	Limitation on Indemnification    29

		
	7.5
	Losses Net of Insurance, etc    29

		
	7.6
	Indemnification Procedure    30

		
	7.7
	Third-Party Claims.    30

		
	7.8
	Tax Treatment of Indemnities    32

		
	7.9
	Offset    32

		
	7.10
	Materiality Scrape    32

		
	7.11
	Exclusive Remedies    32

ARTICLE VIII    MISCELLANEOUS    32
		
	8.1
	Expenses    32

		
	8.2
	Extension; Waiver    32

		
	8.3
	Notices    33

		
	8.4
	Entire Agreement    33

		
	8.5
	Binding Effect; Benefit; Assignment    34

		
	8.6
	Amendment and Modification    34

		
	8.7
	Counterparts    34

8.8    Applicable Law; Submission to Jurisdiction; Consent to Service of Process .34 8.9    Severability    35
		
	8.10
	Specific Enforcement    35

Table of Contents (continued)
Page
		
	8.11
	Waiver of Jury Trial    35

		
	8.12
	Rules of Construction    35

		
	8.13
	Non-Recourse    35

		
	8.14
	Time of Essence    35

ASSET PURCHASE AND CONTRIBUTION AGREEMENT

This ASSET PURCHASE AND CONTRIBUTION AGREEMENT (this “Agreement”) is
made and entered into as of March 22, 2019 by and among YapStone, Inc., a Delaware corporation (“Seller”), Priority Real Estate Technology, LLC, a Delaware limited liability company (“Purchaser”) and, solely for purposes of Section 6.6, Section 8.5, Section 8.8, Section 8.11 and Section 8.12, Priority Technology Holdings, Inc., a Delaware corporation (“Parent”). Capitalized terms used herein not otherwise defined have the meanings ascribed to them in Section 1.1.

W I T N E S S E T H:

WHEREAS, among other lines of business, Seller is engaged in the RentPayment, DuesPayment and StorageRentPayment businesses, through which Seller facilitates acceptance of electronic payments via credit cards, debit cards, and prepaid cards, including providing payment authorization, clearing and settlement services and providing certain other value-added services (including fraud monitoring, detection and mitigation, and other management services) in connection with Seller’s “RentPayment,” “DuesPayment” and “StorageRentPayment” brands;

WHEREAS, Purchaser desires to purchase and, as applicable, acquire and accept from Seller, and Seller desires to sell and, as applicable, contribute, assign and deliver to Purchaser, on the terms and subject to the conditions of this Agreement, all of the Assets as set forth in this Agreement, in consideration for the Purchase Price and in exchange for the issuance by Purchaser to Seller of preferred equity in Purchaser (the “Contribution”), on the terms and subject to the conditions of this Agreement (the “Purchase”); and

WHEREAS, concurrently with the execution and delivery of this Agreement, Purchaser and Seller desire to enter into, among others, (i) a services agreement (the “Services Agreement”), (ii) a license agreement (the “License Agreement”), pursuant to which, among other things, Seller will provide to Purchaser a license to use certain software and related documentation and certain Intellectual Property that has been used with respect to the Rent, Dues and Storage Activities and is referred to internally by Seller as the “RP Stack” (collectively, the “Software”), (iii) in connection with the Contribution, together with the other members of Purchaser, an amended and restated limited liability company agreement of Purchaser (the “Operating Agreement”), and (iv) an award agreement pursuant to which Seller will receive Class B Preferred Units (as defined in the Operating Agreement) of Purchaser (the “Award Agreement”).

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

ARTICLE I DEFINITIONS; CONSTRUCTION
		
	1.1
	Defined Terms.    When used in this Agreement, the following terms shall have the

respective meanings specified below:

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), with respect to any Person, means the possession, directly or indirectly, of the power to direct or

1

cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by Contract or otherwise.

“Ancillary Documents” means the Services Agreement and the License Agreement.

“Benefit Plan” means each plan, fund, program, agreement, arrangement, policy or scheme providing for employee benefits or for the remuneration, direct or indirect, of current or former employees, directors, managers, members, officers, consultants, independent contractors, contingent workers or leased employees or the spouses, beneficiaries or dependents of any of them (whether written or oral), including, without limitation, each deferred compensation, bonus, incentive compensation, pension, retirement, stock purchase, stock option and other equity compensation plan or program, each “welfare” plan (within the meaning of Section 3(1) of ERISA, determined without regard to whether such plan is subject to ERISA), each “pension” plan (within the meaning of Section 3(2) of ERISA, determined without regard to whether such plan is subject to ERISA), each employment, severance termination, health, vacation, paid time off, summer hours, supplemental unemployment benefit, long term disability, short term disability, life insurance, hospitalization insurance, medical, prescription, surgical, dental, legal, fringe benefit plan, fund, program, agreement, policy or arrangement, and each other employee benefit plan, fund, program, agreement, policy or arrangement, in each case that is sponsored, maintained or contributed to, or required to be contributed to, by Seller or an ERISA Affiliate.

“Business Day” means any day except a Saturday, a Sunday or any other day on which commercial banks are required or authorized to close in New York, New York.

“Code” means the United States Internal Revenue Code of 1986, as amended, and the regulations and rulings promulgated and issued thereunder.

“Confidential Information” means all information, data, documents, reports, agreements, interpretations, forecasts and records (whether in oral or written form, electronically stored or otherwise) containing or otherwise reflecting material information concerning the Assets. The term “Confidential Information” shall not include information that (a) is or becomes generally available to the public, other than as a result of disclosure by Seller or its Representatives in violation of this Agreement, (b) becomes available to Seller or its Representatives after the date hereof from a Person other than Purchaser on a non- confidential basis, provided that such Person was not known by Seller or its Representatives to be bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, Purchaser with respect to such materials, (c) has appeared in Seller’s audited and unaudited financial statements prior to the date hereof, or that is required to appear in Seller’s financial statements in the future;
(d) has appeared as part of financial projections shared with third parties prior to the date hereof; (e) has been or will be required to be disclosed in order for Seller to timely comply with any of its present or future regulatory requirements, money transmitter obligation or money service business obligations in connection with Seller’s business or (f) was or is independently developed by Seller or its Representatives without use of any Confidential Information.

“Contract” means any note, bond, mortgage, indenture, guaranty, license, franchise, agreement, understanding, arrangement, contract, commitment, letter of intent, or other instrument or obligation, and any amendments thereto in each case that is legally binding.

“Domain Names” means internet web sites and internet domain names, including all related internet protocol addresses, and including common law and statutory rights therein and therefor, and further including goodwill relating thereto, registrations and renewals thereof, and applications for registration therefor.

2

“DuesPayment” means the business that Seller engages in to enable a homeowners’ association (“HOA”) to accept periodic dues payments from homeowner members of the HOA. Under a management contract between the HOA and each homeowner, the homeowner pays dues, in exchange for which the HOA manages the residential subdivision where the homeowner lives, providing a specified range of maintenance, security and other services. Under the applicable client services agreement between Seller and the HOA, the homeowner dues payments are processed and/or settled through Seller. Without limiting the generality of the foregoing, Seller currently provides the foregoing services via the DuesPayment.com website.

“Effective Date” means 11:59 p.m. EST on February 28, 2019.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

“ERISA Affiliate” means any Person that, together with Seller, would be deemed a “single employer” within the meaning of Section 414 of the Code.

“ERISA Affiliate Plan” means each Benefit Plan sponsored or maintained or required to be sponsored or maintained at any time by any ERISA Affiliate, or to which such ERISA Affiliate makes or has made, or has had an obligation to make, contributions at any time.

“Files and Records” means files, documents, books and other records, including merchant lists; records generated from completed or active merchant transactions (including billing, payment and dispute histories, credit information and similar data but excluding any personal confidential information of any user of Seller’s platform); business, financial records and correspondence with merchants; data; process instructions; statistics, and other technical and financial information of Seller, in each case, to the extent relating to the Assets.

“Fraud” means actual fraud with intent to deceive.

“Governmental Entity” means any federal, state, or local court, arbitral tribunal, administrative agency or commission or other governmental or regulatory agency or authority or any securities exchange or any other body exercising legislative or police powers having the force of Law.

“Indebtedness” means (a) any indebtedness for borrowed money or issued in substitution for or exchange of indebtedness for borrowed money, (b) any indebtedness evidenced by any note, bond, debenture, or other debt securities, (c) any indebtedness for the deferred purchase price of property or services with respect to which a Person is liable, contingently or otherwise, as obligor or otherwise (other than trade payables and other current Liabilities incurred in the ordinary course of business as it pertains to ownership of the Assets), (d) any obligations under capitalized leases with respect to which a Person is liable as obligor (to the extent such capitalized leases are not included in the Assets), (e) any indebtedness secured by a Lien on a Person’s assets, (f) any distributions, loans or advances payable to any of such Person’s Affiliates, members, shareholders, or partners as of the Closing which are not paid at Closing, (g) in respect of any obligations of the type referred to in clauses (a) through (e) of any Person for the payment of which Seller is responsible or liable, directly or indirectly, as obligor, guarantor, surety, or otherwise, including guarantees of such obligations, (h) in respect of any obligations of the type referred to in clauses
(a) through (f) of any Person that is secured by (or for which the holder of such obligations has an existing right, contingent or otherwise, to be secured by) any Lien on any property or asset of Seller, (i) all obligations of Seller in respect of performance bonds, banker’s acceptances and letters of credit, including standby letters of credit, (j) all obligations under derivative, hedging, swap, foreign exchange or similar instruments, and (k) any accrued interest, prepayment penalties, and premiums on any of the foregoing.

3

“Intellectual Property” means any of the following in any jurisdiction throughout the world: (a) patents, patent applications, patent disclosures and inventions, including any continuations, divisions, continuations-in-part, renewals and reissues for any of the foregoing; (b) Domain Names, trademarks, service marks, trade dress, trade names, logos, slogans, and corporate names, and registrations and applications for registration thereof, together with all of the goodwill associated therewith; (c) copyrights (registered or unregistered) and copyrightable works and registrations and applications for registration thereof; (d) mask works and registrations and applications for registration thereof; (e) computer software (excluding shrink wrap software); and (f) copies and tangible embodiments of any of the foregoing (in whatever form or medium).

“IRS” means the United States Internal Revenue Service.

“Law” means any statute, law, ordinance, policy, rule or regulation of any Governmental Entity and all binding and applicable judicial interpretations thereof.

“Liabilities” means any and all Indebtedness, Taxes, liabilities, obligations, and commitments, whether accrued or fixed, express or implied, known or unknown, absolute or contingent, matured or unmatured or determined or determinable.

“Liens” means any liens, security interests, encumbrances, claims, easements, mortgages, charges, indentures, deeds of trust, or any other encumbrances of any kind.

“Long-Term Rental” means the rental of residential or other property characterized by the tenant or renter signing a lease or rental agreement affording the tenant or renter an exclusive right to use and occupy the property to which the lease or rental agreement relates, to the exclusion of others (including the landlord), for an agreed period of time in excess of a daily, weekly or monthly rental period, and shall exclude Short-Term Rentals.

“Losses” means, without duplication, losses, damages, Liabilities, fines, fees, out-of- pocket costs and expenses, including reasonable attorneys’ fees and disbursements; provided that Losses shall not include consequential, special, indirect, punitive or other exemplary damages.

“Marketplace” means a third-party owned or operated e-commerce website that connects unaffiliated buyers and unaffiliated sellers of goods or services all within one platform, for the purposes of helping facilitate buying, renting or leasing of the goods or services. Marketplaces include, for example, e-commerce websites that connect passengers with drivers, and potential tenants or renters seeking to rent or lease rental properties with PMC/Os seeking potential tenants or renters for the properties they own or manage (e.g., HomeAway or RentPath). For the avoidance of doubt, the definition of Marketplace is not intended to restrict Purchaser’s right to use the Licensed Materials (as defined in the License Agreement) in connection with Purchaser’s business done through RadPad or to allow third-party merchants to license RadPad for use on their own payment websites.

“Money Transmitter Laws” means any Law relating to the regulation of the business of the transmission of money or funds and the sale or issuance of payment instruments.

“Money Transmitter Licenses” means any Permits issued, granted, given, or otherwise made available by, under or pursuant to any Money Transmitter Law.

“Open Source Software” means any software that is licensed, distributed or conveyed under a Contract that requires as a condition of its distribution that it be disclosed or distributed in source code form, delivered at no charge or be licensed, distributed or conveyed under the same terms as such

4

Contract; “Open Source Software” includes, without limitation, software licensed under the GNU’s General Public License or Lesser/Library General Public License, the Apache License, or any derivative thereof, and any license listed at www.opensource.org.

“Order” means any judgment, order, injunction, decree, writ, award, or ruling of any Governmental Entity.

“Overlap Period” means with respect to the Assets, any taxable year or other taxable period beginning on or before and ending after the Effective Date.

“Parties” means Purchaser and Seller and, solely for purposes of Section 6.6, Section 8.5, Section 8.8, Section 8.11 and Section 8.12, Parent.

“Permits” means all federal, state and local permits, approvals, licenses, authorizations, certificates, registrations, exemptions and orders from Governmental Entities that are necessary for the operation of Seller’s business as presently conducted.

“Permitted Liens” means (a) Liens for Taxes not yet due and payable or which may thereafter be paid without penalty or that are being contested in good faith by appropriate proceedings, (b) mechanics’, carriers’, workmen’s, repairmen’s or other like Liens arising in the ordinary course of business securing amounts that are not past due or which are contested in good faith, (c) zoning, entitlement and other land use and environmental regulations to the extent such regulations are not individually or in the aggregate material, (d) Liens related to workers’ compensation and other similar statutory regimes, (e) all other matters affecting title that have been waived or consented to by Purchaser, (f) Liens that will be released as of the Closing, and (g) claims or restrictions arising under this Agreement.

“Person” means and includes an individual, a partnership, a limited partnership, a limited liability partnership, a joint venture, a corporation, a limited liability company, an association, a trust, an unincorporated organization, a group and a Governmental Entity.

“PMC/O” means a property management company or property owner.

“Purchase Price” means the sum of $65,000,000.

“Pre-Effective Date Period” means all taxable years or other taxable periods to the extent related to the Assets that end on or before the Effective Date and, with respect to any Overlap Period, the portion of such period ending as of the Effective Date.

“Operating Agreement” means that certain Second Amended and Restated Limited Liability Company Agreement of Purchaser, dated as of the date hereof.

“Rent, Dues and Storage Activities” means the services that Seller offers through the RentPayment, DuesPayment and StorageRentPayment businesses as of the Effective Date but excludes the Retained Business. For the avoidance of doubt, the definition of Rent, Dues and Storage Activities is not intended to restrict Seller’s right to conduct any of the Retained Business.

“RentPayment” means the business that Seller engages in to enable a PMC/O to accept rental payments from its tenants or renters. Under the applicable lease, tenants make rental payments to the PMC/O in exchange for which the PMC/O provides the tenants with rental services ranging from providing living accommodation to providing maintenance and management of the apartment property. Under the applicable client services agreement between Seller and the PMC/O, the rental payments are

5

processed and/or settled through Seller. Without limiting the generality of the foregoing, Seller currently provides RentPayment via the RentPayment.com website.

“Representatives” of any Person means such Person’s directors, managers, officers, employees, agents, attorneys, consultants, advisors or other Persons acting on behalf of such Person at their request.

“Retained Business” means, collectively, Seller’s services to or in connection with (a) Contracts other than Assumed Contracts as of and after the Effective Date, (b) Marketplaces or Marketplace providers or operators, including Seller’s Marketplace partners in the Long-Term Rental and Short-Term Rental verticals, (c) vacation rental customers, (d) TOPS where Seller’s payment processing services are available to TOPS for pay-in or vendor pay-out services, (e) any TOPS customers serviced by Seller through Seller’s payment processing services that are embedded as the primary payment service available to TOPS customers; and (f) RentPath and RentPath’s affiliated businesses, including the AG Sites services.

“Short-Term Rental” means rental of residential or other property for short-term occupancy on a daily, weekly or monthly basis, such as for corporate housing or vacation rentals (including bed-n-breakfast establishments and inns).

“StorageRentPayment” means the business that Seller engages in to enable a self-storage unit PMC/O to accept rental payments from its storage unit renters. Under the applicable contract between the PMC/O and the storage unit renter, the storage unit renter makes rental payments to the PMC/O, in exchange for which the PMC/O provides storage unit rental services ranging from the provision of the storage units to related management and maintenance services. Under the applicable client services agreement between Seller and the PMC/O, the rental payments are processed and/or settled through Seller. Without limiting the generality of the foregoing, Seller currently provides the foregoing services via the StorageRentPayment.com website.

“Taxes” means all taxes, assessments, charges, duties, fees, levies or other governmental charges of any kind, including all United States federal, state, local, foreign and other income, franchise, profits, gross receipts, capital gains, capital stock, transfer, sales, use, value added, occupation, property, unclaimed property, escheat, excise, severance, windfall profits, stamp, license, payroll, social security, withholding, workers compensation, unemployment taxes and other taxes, assessments, charges, duties, fees, levies or other governmental charges of any kind whatsoever in the nature of taxes, all estimated taxes, deficiency assessments, additions to tax, penalties and interest.

“Tax Return” means any return, declaration, election, disclosure, report, claim for refund, statement or information report or filing filed or required to be filed with any Governmental Entity with respect to Taxes, including any schedules attached thereto and including any amendment thereof.

“TOPS” means TOPS Software, LLC.

“Treasury Regulations” means the Treasury Regulations promulgated pursuant to the Code, as amended from time to time, including the corresponding provisions of any successor regulations.

1.2    Additional Defined Terms. In addition to the terms defined in Section 1.1, additional defined terms used herein shall have the respective meanings indicated in the sections referenced opposite such term below:

6

Defined Term    Section
Action    4.8
Affiliate Commissions Reports    4.4(b)
Agreed Claims    7.6(d)
Agreement    Preamble
Assets    2.2
Assumed Contracts    2.2(a)
Assumed Liabilities    2.4
Award Agreement    Recitals
Cash Cap    7.4(c)
Claim Certificate    7.6(a)
Closing    3.3(a)
Closing Date    3.3(a)
Closing Statement    3.3(b)(vii)
Collateral Source    7.5
Contribution    Recitals
Deductible    7.4(b)
Distributed Software    4.12
Equity Forfeiture Cap    7.4(c)
Excluded Assets    2.3
Excluded Liabilities    2.5
Financial Statements    4.4(a)
Fundamental Representations    7.1
GAAP    5.10
Indemnified Party    7.6(a)
Indemnifying Party    7.6(a)
Interim Amount    3.1(c)
Interim Statement    3.1(c)
Knowledge of Seller    1.5
License Agreement    Recitals
Material Contract    4.7(a)
Nonassignable Right    2.6
Objection Notice    3.1(c)
Operating Agreement    Recitals
Parent    Preamble
PIPH    5.6(a)
Purchase    Recitals
Purchaser    Preamble
Purchaser Financial Statements    5.10
Purchaser Fundamental Representations    7.1
Purchaser Guaranteed Obligations    6.6(a)
Purchaser Indemnitees    7.2
Reference Date    4.5(a)
Registrar    6.5
Seller    Preamble
Seller Disclosure Schedule    ARTICLE IV
Seller Fundamental Representations    7.1
Seller Indemnitees    7.3
Services Agreement    Recitals
Software    Recitals

7

Standard Exceptions    4.2(a)
Third-Party Claim    7.7(a)
Transfer Taxes    6.4(a)
Units    5.6(a)

		
	1.3
	Construction. In this Agreement, unless the context otherwise requires:

(a)    words expressed in the singular number shall include the plural and vice versa; words expressed in the masculine shall include the feminine and neuter gender and vice versa;

(b)    references in this Agreement to Articles, Sections, Exhibits, Sections of the Seller Disclosure Schedule, the Preamble and the Recitals are references to articles, sections, exhibits, the disclosure schedule, the preamble and the recitals of this Agreement unless otherwise indicated, and the descriptive headings of the several Articles and Sections of this Agreement, and Sections of the Seller Disclosure Schedule are inserted for convenience only, do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement;

(c)    any capitalized terms used in any Schedule (including the Seller Disclosure Schedule) or Exhibit but not otherwise defined therein shall have the meaning as defined in this Agreement;

(d)    the phrases “delivered” or “made available” shall mean that the information referred to has been physically or electronically delivered to the relevant parties (including, in the case of “made available” to Purchaser, material that has been posted, retained and thereby made available to Purchaser through an on-line “virtual data room” established by or on behalf of Seller;

(e)    the words “hereof”, “herein”, “hereto” and “hereunder”, and words of similar import, shall refer to this Agreement as a whole and not to any provision of this Agreement;

(f)    this “Agreement” or any other agreement or document shall be construed as a reference to this Agreement or, as the case may be, such other agreement or document as the same may have been, or may from time to time be, amended, varied, novated or supplemented;

		
	(g)
	references to “day” or “days” are to calendar days;

(h)    “include”, “includes”, and “including” are deemed to be followed by “without limitation” whether or not they are actually followed by such words or words of similar import;

		
	(i)
	the word “or” shall not be exclusive and may also mean “and/or” as the context

requires; and

(j)    references to “Dollars”, “dollars” or “$”, without more are to the lawful currency of United States of America.

1.4    Exhibits and the Seller Disclosure Schedule. The Exhibits and the Seller Disclosure Schedule are incorporated into and form an integral part of this Agreement.

1.5    Knowledge. When any representation, warranty, covenant or agreement contained in this Agreement is expressly qualified by reference to the “Knowledge of Seller” or words of similar import, it shall mean any matter or fact actually known, or that should have been known following due inquiry, by Thomas Villante, David Weiss, Jerry Ulrich, David Durant or Scott Stockberger.

8

ARTICLE II

SALE AND CONTRIBUTION OF ASSETS AND ASSUMPTION OF LIABILITIES

2.1    Sale and Contribution of Assets. Upon the terms and subject to the conditions of this Agreement, as of the Closing Date Purchaser hereby purchases or, as applicable, acquires and accepts from Seller, and Seller hereby sells, conveys, transfers, assigns, contributes and delivers to Purchaser, all of Seller’s right, title and interest in and to the Assets, in each case, free and clear of any Liens and Orders of any kind whatsoever, except Permitted Liens.

2.2    Assets Defined. Notwithstanding anything else herein to the contrary, “Assets” means all of Seller’s right, title and interest in, to and under the following assets (in each case, other than the Excluded Assets):

(a)    all right, title, and interest in each Contract listed on Section 2.2(a) of the Seller Disclosure Schedule and any other Contract that generates revenue that is derived from the Rent, Dues and Storage Activities, including those captured in the Affiliate Commissions Reports, and including all rights to receive payments or commissions under such Contracts for transactions initiated on or after the Effective Date (the “Assumed Contracts”); provided, however, that “Assumed Contracts” shall not include any Contracts made in connection with or arising out of the Retained Business;

(b)    the Files and Records to the extent related primarily to the Rent, Dues and Storage Activities; provided, however, that Seller shall be able to retain copies of the same;

(c)    sales literature, promotional literature, and other selling and advertising material, creative materials, advertising, studies, reports and other printed or written materials, in each case whether in hard copy or computer format, to the extent solely used in connection with the Rent, Dues and Storage Activities, and all Intellectual Property rights to such printed or written sales, promotional or advertising materials; provided, however, that Seller shall be able to retain copies of such materials and use such copies for Seller’s performance of its obligations under the Ancillary Documents and for purposes other than the conduct of the Rent, Dues and Storage Activities;

(d)    all fax numbers, phone numbers, e-mail addresses, websites, including the Domain Names set forth on Section 2.2(d) of the Seller Disclosure Schedule, and “d/b/a” rights and names (e.g., the “RentPayment,” “DuesPayment” and “StorageRentPayment” names) that are solely used in connection with the Rent, Dues and Storage Activities, all rights to such numbers, e-mail addresses, websites and “d/b/a” rights and names used solely in connection with the Rent, Dues and Storage Activities, and all log- in passwords or other access credentials used to service the Assumed Contracts; and

(e)    all claims, defenses and rights of offset or counterclaim (at any time or in any manner arising or existing, whether choate or inchoate, known or unknown, contingent or non-contingent), to the extent exclusively arising from the Assumed Contracts or the Assumed Liabilities after the Effective Date.

2.3    Excluded Assets. Notwithstanding anything to the contrary in this Agreement, all rights, assets and properties of Seller that are not expressly listed in Section 2.2, as well as the following, whether owned by, held by or relating to Seller or any of its Affiliates do not, and shall not, constitute Assets (collectively, the “Excluded Assets”):

		
	(a)
	Retained Business;

9

		
	(b)
	rights under Seller’s Contracts, except the Assumed Contracts;

(c)    all rights of Seller to receive payments or commissions under the Assumed Contracts for transactions initiated prior to the Effective Date;

(d)    (i)Files and Records that comprise Seller’s permanent Tax records, corporate minute books, stock books, related organizational documents and other Files and Records having to do with the corporate organization of Seller, whether or not related to the Rent, Dues or Storage Activities or the Assumed Contracts, (ii) a copy of those Files and Records that Seller is required to retain pursuant to any Law or Order, (iii) Files and Records which Seller is prohibited from transferring to Purchaser under applicable Law, (iv) Files and Records related to the Excluded Assets or Excluded Liabilities, and (v) attorney-client privileged documents (including emails) and other work product of Seller or Seller’s attorneys (including emails) relating to the negotiation or consummation of the transactions contemplated by this Agreement;

(e)    personnel records of Seller’s employees and all other employee-related or employee benefit-related Files and Records related to such employees;

(f)    all prepayments of Taxes and claims for refund or credit of Taxes and other Governmental Entity charges, refunds, reimbursements or claims settlements of whatever nature that are attributable to Seller for any Pre-Effective Date Period or that are otherwise paid by Seller;

(g)    all claims, defenses and rights of offset or counterclaim (at any time or in any manner arising or existing, whether choate or inchoate, known or unknown, contingent or non-contingent) to the extent arising from any of the Excluded Assets or Excluded Liabilities, or relating to any indemnification obligation of Seller hereunder, in each case whether arising by way of counterclaim or otherwise;

(h)    Seller’s claims against Purchaser with respect to this Agreement or relating to the Excluded Assets or the Excluded Liabilities;

		
	(i)
	the equity interests of any Person;

		
	(j)
	cash and cash equivalents;

(k)    prepaid expenses and deposits to the extent set forth on Section 2.3(k) of the Seller Disclosure Schedule;

(l)    all furniture, servers, computers, Software, equipment, supplies, fixtures and personal property;

		
	(m)
	employment Contracts with any Person;

		
	(n)
	all insurance policies of Seller and all rights to applicable claims and proceeds

thereunder;

		
	(o)
	Benefit Plans and ERISA Affiliate Plans and any of the assets related thereto;

		
	(p)
	all Permits;

10

(q)    all rights of Seller under this Agreement and the Exhibits, Seller Disclosure Schedule and other documents contemplated hereby;

(r)    all of Seller’s Intellectual Property and rights therein that are not expressly included in the Assets; and

(s)    all other tangible and intangible assets, properties, rights and privileges, except those expressly included as an Asset in Section 2.2.

2.4    Assumption of Liabilities. Upon the terms and subject to the conditions of this Agreement, Purchaser hereby assumes and agrees to pay, perform and discharge when due, each of those Liabilities and obligations set forth below (collectively, the “Assumed Liabilities”):

(a)    All Liabilities incurred on or after the Effective Date relating to the Assets and Seller’s obligations under the Assumed Contracts to the extent arising on or after the Effective Date, including expenses incurred by Seller to provide the services pursuant to the terms and conditions of the Assumed Contracts, liability for chargebacks, card organization fines and other credit-related Losses relating to transactions having a processing date on or after the Effective Date (other than Liabilities or obligations attributable to any failure of Seller to comply with the terms of any such Assumed Contract prior to the Closing Date); and

(b)    all other Liabilities and obligations arising out of or relating to Purchaser’s or its Affiliates’ ownership or operation of the Assets on or after the Effective Date.

2.5    Excluded Liabilities. Notwithstanding anything contained herein to the contrary, Purchaser shall not assume, or cause to be assumed, or be deemed to have assumed or caused to have assumed or be liable or responsible for any Liabilities or obligations (whether known or unknown, fixed, absolute, matured, unmatured, accrued or contingent, now existing or arising after the date hereof) of Seller or its Affiliates other than the Assumed Liabilities (such obligations and Liabilities not assumed hereunder, which include any and all Liabilities (a) in respect of Taxes (i) relating to Seller for the Assets or Rent, Dues and Storage Activities for any Pre-Effective Date Period or (ii) of Seller or any of its Affiliates for Taxes of any Person under Treasury Regulation Section 1502-6 (or any similar provision of state, local or non-U.S. Law) as a transferee or successor, by contract or otherwise, (b) of Seller or any of its Affiliates relating to any Indebtedness of Seller or any of its Affiliates, (c) of Seller or any of its Affiliates to pay wages, commissions, bonuses, severance, vacation pay, or any other amounts due any termination of employment or arising out of the failure of any such Person to satisfy any employment or labor-related Laws, (d) for any trailing chargebacks, fines or penalties or charge-offs related to or arising from the ownership of the Assets prior to the Effective Date, including any such events with respect to which notice is received after the Effective Date, (e) of Seller or any of its Affiliates related to or arising from any Benefit Plans or ERISA Affiliate Plans of Seller or an Affiliate thereof, and (f) of Seller or any of its Affiliates incurred in connection with the making or performance of this Agreement, including any broker’s fees and legal fees, the “Excluded Liabilities”).

2.6    Consents of Third Parties. Notwithstanding anything to the contrary in this Agreement, to the extent that any Asset is not assignable or transferable without the consent or waiver of, or the taking of any other action by, any third party (including any Governmental Entity) (a “Nonassignable Right”), or if the assignment or transfer thereof or the attempted assignment or transfer thereof would constitute a breach under any applicable Contract or a violation of any applicable Law, this Agreement shall not constitute an assignment or transfer, or an attempted assignment or transfer thereof until such consent or waiver has been obtained or such other action has been taken, and the following provisions shall be applicable until such time as such consent or waiver has been obtained or such other action has been taken:

11

(a)    Seller shall use its commercially reasonable efforts (which shall not require it to incur any financial obligation or any other material obligation), and Purchaser shall cooperate therewith, to obtain such consent or waiver or cause the taking of any required action, as applicable. To the extent that any such consent or waiver is not so obtained or any such action is not so taken, Seller shall use commercially reasonable efforts at Purchaser’s sole cost and expense to (a) provide to Purchaser the benefits of any such Nonassignable Right, (b) cooperate in any reasonable arrangement requested by Purchaser designed to provide such benefits to Purchaser, and (c) enforce for the account of Purchaser any right of Seller arising from any such Nonassignable Right against such third party.

(b)    To the extent that Purchaser is provided the benefits pursuant to this Section 2.6 of any such Nonassignable Right, Purchaser shall perform for the benefit of the applicable third party, the obligations of Seller thereunder or in connection therewith and shall indemnify and hold Seller harmless against any such Liability or obligations thereunder arising or to be performed on or after the Closing Date. If such consent is subsequently obtained, the Asset will be deemed for purposes of this Agreement to have been transferred effective as of the Closing Date.

2.7    Bulk Sales. The Parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar Law of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Assets to Purchaser; it being understood that any Liabilities arising out of the failure of Seller to comply with such requirements and provisions of any bulk sales, bulk transfer or similar Law of any jurisdiction shall be treated as Excluded Liabilities.

2.8    Wrong Pocket. If, after the Closing Date, Purchaser identifies an asset owned by Seller that is an Asset and that should have been, but inadvertently was not previously, transferred by Seller to Purchaser pursuant to this Article II, then Seller shall offer to transfer or cause to be transferred such asset to Purchaser or its designee for no additional consideration. If, after the Closing Date, Seller identifies any Assumed Liabilities that should have been, but inadvertently were not previously, transferred by Seller to Purchaser pursuant to this Article II, then Seller shall offer to transfer or cause to be transferred such Assumed Liabilities to Purchaser or its designee for no additional consideration. If, after the Closing Date, Seller in good faith identifies an asset that is an Excluded Asset that should not have been, but inadvertently was previously, transferred by Seller to Purchaser or of which Purchaser is otherwise in possession, then Purchaser shall transfer such asset to Seller for no consideration. Prior to any such transfer, Seller or Purchaser, as applicable, shall, or shall cause its Affiliates to, hold such asset in trust for Purchaser or Seller, as applicable.

2.9    Withholding. Notwithstanding any other provision in this Agreement, Purchaser shall be entitled to deduct and withhold from the payments to be made pursuant to this Agreement any Taxes required to be deducted and withheld with respect to the making of such payments under the Code, the Treasury Regulations issued thereunder or any other provision of applicable Law, and to request any reasonably necessary Tax forms including IRS Form W-9 or the appropriate series of IRS Form W-8, as applicable, or any similar information for the purpose of determining whether such withholding is required; provided that Purchaser shall provide reasonable advance notice to Seller of any amount it intends to deduct and withhold and, in any event, at least three (3) days in advance of the Closing Date. Purchaser, on the one hand, and Seller, on the other hand, shall use commercially reasonable efforts to minimize any such deduction and withholding. To the extent that amounts are so withheld and deducted pursuant to this Section 2.9 and paid over to the appropriate Governmental Entity, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to such Person in respect of which such deduction and withholding was made.

12

ARTICLE III PURCHASE PRICE AND CLOSING
		
	3.1
	Purchase Price; Delivery of Funds; Contribution.

(a)    At the Closing, in consideration for the sale and transfer of a [*]% interest in each of the Assets pursuant to Section 2.1 hereof, Purchaser shall assume the applicable portion of the Assumed Liabilities associated with such Assets and Purchaser shall pay, or cause to be delivered to Seller, the Purchase Price by wire transfer of immediately available funds to an account designated in the Closing Statement.

(b)    At the Closing, in consideration for the transfer, conveyance, assignment and delivery of a [*]% interest in each of the Assets pursuant to Section 2.1 hereof, Purchaser shall assume the applicable portion of the Assumed Liabilities associated with such Assets and Purchaser shall effect the Contribution. The Class B Preferred Units issued to Seller will carry certain rights and restrictions, including restrictions on transferability of such interests, in accordance with applicable law and the terms and conditions of the Operating Agreement.

(c)    Within 60 days after the Closing Date (or such longer period as Purchaser and Seller mutually agree on), Seller shall prepare and deliver to Purchaser a written statement (the “Interim Statement”) setting forth in reasonable detail Seller’s calculation of the amount (the “Interim Amount”) that is equal to (i) all payments and commissions received by Seller under Assumed Contracts for transactions initiated on or after the Effective Date to the Closing Date, minus (ii) all third-party expenses paid by Seller for the benefit of Purchaser, and an amount equal to the payments to which Seller would have been entitled pursuant to the Services Agreement if the Services Agreement had become effective on the Effective Date. Upon delivery by Seller of the Interim Statement, Seller shall provide Purchaser with reasonable access, during normal business hours, to Seller’s accounting and other personnel and to the books and records reasonably necessary to allow Purchaser to verify the accuracy of the Interim Statement. If Purchaser does not object to the Interim Statement by a written notice of objection, including Purchaser’s alternative calculations (the “Objection Notice”), delivered to Purchaser within 30 days after Purchaser’s receipt of the Interim Statement, the Interim Statement shall be deemed final and binding.

(d)    If Purchaser delivers an Objection Notice within 30 days after Purchaser’s receipt of the Interim Statement, Purchaser and Seller shall negotiate in good faith to determine the final Interim Amount within 30 days after Seller’s receipt of the Objection Notice. If Seller and Purchaser have not agreed on the final Interim Amount during such 30-day period, such dispute shall be resolved in accordance with Section 8.8.

(e)    If the Interim Amount (as finally determined pursuant to Sections 3.1(c) or 3.1(d)) is positive, within two Business Days after the determination thereof, Seller shall pay to Purchaser an amount equal to the Interim Amount by wire transfer of immediately available funds to the account designated in writing by Purchaser. If the Interim Amount (as finally determined pursuant to Sections 3.1(c) or 3.1(d)) is negative, within two Business Days after the determination thereof, Purchaser shall pay to Seller an amount equal to the absolute value of the Interim Amount by wire transfer of immediately available funds to the account designated in writing by Seller.

		
	3.2
	Allocation of Purchase Price and Contribution.

(a)    Purchaser and Seller agree that the Purchase Price and the Assumed Liabilities associated with the Assets attributable thereto (plus other relevant items, if applicable) shall be allocated

13

among such Assets for income tax purposes in accordance with an allocation prepared pursuant to this Section 3.2 and in a manner consistent with Section 1060 of the of the Code (and any similar provision of state, local or foreign tax law, as may be applicable), which allocation shall be binding upon all Parties. Such allocation shall be prepared by Purchaser and Seller as soon as practicable after the Closing and both Purchaser and Seller shall cooperate in good faith to prepare in a timely manner an allocation that is mutually acceptable to both Parties. To the extent Purchaser and Seller cannot agree on an allocation in a timely manner, Purchaser and Seller shall jointly retain a nationally recognized accounting firm to resolve the disputed items. The costs, fees and expenses of the accounting firm shall be borne equally by Purchaser and Seller. Purchaser, Seller, and their respective Affiliates shall report, act and file Tax Returns (including IRS Form 8594) in all respects and for all purposes consistent with such allocation agreed to by Seller and Purchaser pursuant to this Section 3.2. Neither Purchaser (or any Affiliate of Purchaser), nor Seller (or any Affiliate of Seller) shall take any position (whether in audits, Tax Returns or otherwise) that is inconsistent with such allocation unless required to do so by a determination of a taxing authority following an audit or examination in which the foregoing Tax position has been defended in good faith.

(b)    Except as otherwise required by applicable Law, the Parties agree to report the transactions contemplated by this Agreement for U.S. federal income tax purposes (and any similar provision of state, local or foreign tax law, as may be applicable) in accordance with Example 1 of Treasury Regulation Section 1.707-3(f) as (A) a taxable sale by Seller of the appropriate portion of each of the Assets to Purchaser in exchange for the cash consideration and assumption of a proportionate share of the Assumed Liabilities under Section 707(a)(2)(B) of the Code and the accompanying Treasury Regulations and (B) a contribution by Seller of the remaining portion of Assets and remaining portion of Assumed Liabilities to Purchaser in exchange for the preferred equity in Purchaser under Section 721 of the Code, provided that cash received by Seller pursuant to this Agreement shall be treated as a distribution under Section 731 to the extent permitted by Treasury Regulations Sections 1.707-4(d) (relating to pre-formation capital expenditures) or 1.707-5(b) (relating to debt-financed distributions) to the maximum extent permitted by Law as reasonably determined by the board of Purchaser in good faith pursuant to the Operating Agreement.

		
	3.3
	Closing; Closing Deliverables.

(a)    The closing of the Purchase (the “Closing”) shall take place remotely by exchange of documents and signatures via email, facsimile, or DocuSign on the date hereof upon the execution of this Agreement and the other agreements contemplated hereby. Such date is herein referred to as the “Closing Date”.

(b)    At the Closing, unless waived in writing by Purchaser, in its sole and absolute discretion, Seller shall deliver or cause to be delivered to Purchaser:

(i)    a non-foreign person affidavit from Seller in form reasonably satisfactory to Purchaser, dated as of the Closing Date, as required by Section 1445 of the Code, duly executed by Seller;

(ii)    a duly executed certificate of the Secretary or other duly authorized officer of Seller, certifying as to and attaching (A) true and complete copies of organizational documents of Seller, as amended, each as in effect immediately prior to the Closing, (B) true and complete copies of the resolutions of the board of directors of Seller approving the transactions contemplated hereby; and (C) the incumbency of the officers of Seller executing this Agreement or any other agreement executed and delivered in connection with transactions contemplated by this Agreement;

14

(iii)    a recent certificate of good standing of Seller from the Secretary of State of Seller’s jurisdiction of formation;

(iv)    a duly executed counterpart from Seller to each of (A) a joinder agreement to the Operating Agreement; (B) the Services Agreement; (C) the License Agreement, and (D) the Award Agreement, each of which shall be in form and substance acceptable to the parties thereto;

(v)    lien release letters executed by the holders of all Liens on the Assets, other than Permitted Liens, in form and substance reasonably acceptable to Purchaser;

(vi)    a closing and disbursement schedule, in form and substance reasonably acceptable to the Parties, reflecting all payments and disbursements made at Closing (the “Closing Statement”), duly executed by Seller;

(vii)    validly executed Domain Name assignments irrevocably transferring all rights in the Domain Names listed in Section 2.2(d) of the Seller Disclosure Schedule to Purchaser; and

		
	(viii)
	a copy of this Agreement, duly executed by Seller.

(c)    At the Closing, unless waived in writing by Seller, in its sole and absolute discretion, Purchaser shall deliver or cause to be delivered the following to Seller:

		
	(i)
	the Purchase Price in accordance with Section 3.1;

(ii)    a duly executed counterpart from Purchaser to each of (A) the Operating Agreement; (B) the Services Agreement; (C) the License Agreement; and (D) the Award Agreement, each of which shall be in form and substance acceptable to the parties thereto;

(iii)    a duly executed certificate of the Secretary or other duly authorized officer of Purchaser, certifying as to and attaching (A) true and complete copies of all resolutions adopted by the board of directors, managers, members, or other governing body of Purchaser authorizing the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby; and (B) the incumbency of the officers executing this Agreement or any other agreement executed and deliver in connection with transactions contemplated by this Agreement, and certifying the names and signatures of the officers of Purchaser authorized to sign this Agreement and the other documents to be delivered hereunder;

		
	(iv)
	a copy of this Agreement, duly executed by Purchaser; and

(v)    a recent certificate from the Secretary of State or other appropriate official of Purchaser’s jurisdiction of formation to the effect that Purchaser is in good standing (or the equivalent thereof) in such jurisdiction.

15

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER
Except as set forth in the Seller Disclosure Schedule attached to this Agreement (the “Seller
Disclosure Schedule”), Seller hereby represents and warrants to Purchaser as follows as of the Closing Date:

4.1    Due Organization, Good Standing. Seller is duly organized, validly existing and in good standing (or the equivalent thereof) under the Laws of the jurisdiction of its organization. Seller has all requisite corporate power and authority to own, lease, and operate its properties and to carry on its business as now being conducted. Seller is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the property owned, leased or operated by Seller, or the nature of the business conducted by Seller makes such qualification necessary, except such jurisdictions where the failure to be so qualified or licensed and in good standing does not, individually or in the aggregate, materially and adversely affect the Assets.

		
	4.2
	Authorization; Noncontravention.

(a)    Seller has the corporate power and authority and has taken all action necessary to execute and deliver this Agreement and all other instruments and agreements to be delivered by Seller as contemplated hereby, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by Seller of this Agreement and all other instruments and agreements to be delivered by Seller as contemplated hereby, the consummation by Seller of the transactions contemplated hereby and the performance of its obligations hereunder have been duly authorized and approved by all necessary corporate action with respect to Seller. This Agreement has been, and all other instruments and agreements to be executed and delivered by Seller as contemplated hereby have been, duly executed and delivered by Seller. Assuming the due execution and delivery by Purchaser of this Agreement, this Agreement constitutes a valid and binding obligation of Seller enforceable against Seller in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and by general equitable principles (the “Standard Exceptions”). Assuming the due execution and delivery by Purchaser of all other instruments and agreements to be entered into by Purchaser under this Agreement, such instruments and agreements will constitute valid and binding obligations of Seller enforceable against Seller in accordance with their terms, except as such enforcement may be limited by the Standard Exceptions.

(b)    The execution and delivery of this Agreement and all other instruments and agreements to be delivered by Seller as contemplated hereby do not, and the consummation of the transactions contemplated hereby will not (i) conflict with any of the provisions of the Restated Certificate of Incorporation of Seller, as amended, (ii) create any Lien (other than Permitted Liens) upon any of the Assets, (iii) except as set forth on Section 4.3 of the Seller Disclosure Schedule, conflict with or result in a material breach of, or constitute a material default under, or result in the acceleration of any material obligation or loss of any benefits under any Assumed Contract that is a Material Contract, (iv) except as individually or in the aggregate would not have a material adverse effect on Seller or the Rent, Dues and Storage Activities, conflict with or result in a material breach of, or constitute a material default under, or result in the acceleration of any material obligation or loss of any benefits under any Assumed Contract that is not a Material Contract, or (v) subject to receipt of the consents or making of the filings referred to in Section 4.3 of the Seller Disclosure Schedule, contravene any Law or any Order applicable to Seller, or by which any of the Assets are bound.

16

4.3    Consents and Approvals. Except as set forth on Section 4.3 of the Seller Disclosure Schedule, no consent of or filing with any Governmental Entity or any other Person (in the case of a Person that is party to an Assumed Contract, only if such Assumed Contract is a Material Contract or if the failure to obtain such consent would have a material adverse effect on the Rent, Dues and Storage Activities) must be obtained or made by Seller in connection with the execution and delivery of this Agreement by Seller or the consummation by Seller of the transactions contemplated by this Agreement.

		
	4.4
	Financial Statements.

(a)    Attached to Section 4.4(a) of the Seller Disclosure Schedule is a copy of each of the following unaudited financial metrics for the Assets for the (a) 12-month period ended December 31, 2017, and (b) 12-month period ended December 31, 2018: (i) sales and cost of sales (including royalties) for the Rent, Dues and Storage Activities, and (ii) network, gateway and other fees not included in cost of sales with respect to the Rent, Dues and Storage Activities (the “Financial Statements”). The Financial Statements truly and accurately reflect and fairly present, in all material respects, the applicable financial metrics for the periods covered thereby of the Assets.

(b)    Section 4.4(b) of the Seller Disclosure Schedule contains a true, accurate and complete copy of the affiliate commissions report in respect of the Assumed Contracts covering the one- month period ended each of November 30, 2018 and December 31, 2018 (the “Affiliate Commissions Report”). The Rent, Dues and Storage Activities were conducted in the ordinary course during the period covered by the Affiliate Commissions Reports.

		
	4.5
	Absence of Certain Changes.

(a)    Except as set forth on Section 4.5(a) of the Seller Disclosure Schedule, since July 1, 2018 (the “Reference Date”), to the Knowledge of Seller, there has not been any event, circumstance, development, state of facts, occurrence, change or effect which has, or would reasonably be expected to, materially and adversely affect the Assets.

(b)    Except as expressly contemplated by this Agreement, since the Reference Date, Seller has not taken any of the following actions with respect to the Assets:

(i)    entered into, materially amended, become subject to or terminated any Contract that would be an Assumed Contract, in each case outside of the ordinary course of business consistent with past practice;

		
	(ii)
	made any change in any method of accounting or auditing practice;

		
	(iii)
	subjected any of the Assets to any Lien, other than Permitted Liens;

(iv)    cancelled or otherwise waived any claims or rights relating to the Assets involving any amount in excess of $10,000 for any given month;

(v)    sold, transferred, granted, or otherwise disposed of any assets of Seller that constitute (or would have constituted, absent such sale, transfer, grant, or disposition) an Asset, in each case outside of the ordinary course of business consistent with past practice; or

		
	(vi)
	entered into any Contract to do, or committed or agreed to do, any of the

foregoing.

17

4.6    Title to Assets. Seller has good and marketable title to all of the Assets, free and clear of all Liens, other than Permitted Liens or Liens to be released immediately prior to the Closing.

		
	4.7
	Contracts.

(a)    Section 4.7(a) of the Seller Disclosure Schedule sets forth an accurate and complete list as of the date hereof of each of the following Contracts which relate to the Assets or the Assumed Liabilities (each such Contract set forth on such Schedule, a “Material Contract”) to which Seller is a party or by which the Assets are bound:

(i)    a Contract or series of related Contracts exclusively for the provision by Seller of the Rent, Dues and Storage Activities that involve or could reasonably be expected to involve (A) annual payments, other than settlement amounts, by Seller of $25,000 or more, (B) aggregate payments, other than settlement amounts, by Seller of $25,000 or more, or (C) annual receipts by Seller for products sold or services rendered of $25,000 or more, or pursuant to which Seller received payments or anticipates receiving payments for products sold or services rendered of more than $25,000 in the year ended December 31, 2018;

(ii)    a Contract or series of related Contracts that create, or obligate Seller to participate in, any joint venture or similar arrangement with respect to or affecting the Assets or that grant to any Person any preferential rights to purchase any of the Assets;

(iii)    a Contract or series of related Contracts that constitute any other agreement, commitment, arrangement or plan not made in the ordinary course of business that is material to the Rent, Dues and Storage Activities business;

(iv)    except for Contracts relating to trade receivables, each Contract relating to the Assumed Liabilities (including guarantees);

(v)    a Contract with any customer relating to the Rent, Dues and Storage Activities business (A) where the current term is longer than twelve months and (B) that involve or could reasonably be expected to involve (I) annual payments, other than settlement amounts, by Seller of $25,000 or more, (II) aggregate payments, other than settlement amounts, by Seller of
$25,000 or more, or (III) annual receipts by Seller for products sold or services rendered of $25,000 or more, or pursuant to which Seller received payments or anticipates receiving payments for products sold or services rendered of more than $25,000 in the year ended December 31, 2018; and

(vi)    a Contract which restrains the ability of Seller to engage or compete in any manner or in any business in a manner, including any non-competition, non-solicitation, no-hire, exclusivity or most favored nation provisions, that, in each case, has, or would reasonably be expected to have, a material effect on the Assets.

(b)    No Material Contract has been terminated or, to the Knowledge of Seller, repudiated by any party thereto. Each Material Contract is in full force and effect and is the legal, valid and binding obligation of Seller and, to the Knowledge of Seller, each of the other parties thereto, enforceable in accordance with the terms thereof, except to the extent that its enforceability may be subject to the Standard Exceptions. There exists no material default or event of default, or to the Knowledge of Seller, any event, occurrence, condition or act (including the transactions contemplated hereby) which, with the giving of notice, the lapse of time or the happening of any other event or condition, would become a material default or event of default thereunder with respect to any Material Contract. All the covenants to be performed by Seller prior to the date of this Agreement under any Material Contract have been fully

18

performed in all material respects. To the Knowledge of Seller, all of the covenants to be performed prior to the date of this Agreement by any other party to any Material Contract have been fully performed in all material respects. Except as set forth on Section 4.7(b) of the Seller Disclosure Schedule, Seller has made available to Purchaser true and complete copies, including all amendments, of each Material Contract.

4.8    Litigation. There is no material action, suit, proceeding at law or in equity, arbitration or administrative or other proceeding, or any investigation or audit, by, before or against any Governmental Entity or any other Person (each an “Action”), pending, or, to the Knowledge of Seller, threatened, against Seller in respect of the Assets or the Assumed Liabilities. Except as set forth on Section 4.10(a) of the Seller Disclosure Schedule, Seller is not subject to any Order which materially restricts the operation of the business as it pertains to the Assets.

		
	4.9
	Tax Matters.

(a)    Seller has timely filed or caused to be timely filed with the appropriate Governmental Entities all Tax Returns required to have been filed with respect to the ownership of the Assets and the Rent, Dues and Storage Activities (taking into account any extension of time to file granted or to be obtained on behalf of Seller) and all such Tax Returns are complete and correct in all material respects and have been prepared in material compliance with all applicable Laws.

(b)    All Taxes and Tax liabilities required to have been paid by Seller with respect to the ownership of the Assets and the Rent, Dues and Storage Activities (regardless if such Taxes are shown or required to be shown on a Tax Return) have been timely paid. There are no unpaid Taxes in any amount due or claimed to be due by a Governmental Entity of any jurisdiction and, to the Knowledge of Seller, no basis exists for any such claim in each case which could reasonably be expected to give rise to a Lien on the Assets. No Tax audit or examination of Seller with respect to the ownership of the Assets or the Rent, Dues and Storage Activities is in process or, to the Knowledge of Seller, threatened or contemplated, and Seller has not received a notice of assessment from any Governmental Entity indicating that a Tax assessment or recalculation of any Taxes in any Tax Return previously filed with respect to the ownership of the Assets or the Rent, Dues and Storage Activities. Seller has not been informed by any Governmental Entity in any jurisdiction that such Governmental Entity believes that Seller was required to file any Tax Return with respect to the ownership of the Assets or the Rent, Dues and Storage Activities that was not filed by Seller. Seller has not waived any statute of limitations with respect to Taxes or Tax Return or agreed to an extension of time with respect to a Tax deficiency or assessment. There are no Liens for Taxes with respect to, in connection with, or related to any Asset (other than for ad valorem and personal property Taxes not yet due and payable).

(c)    The representations and warranties contained in this Section 4.9 are the only representations and warranties made by Seller with respect to Tax matters.

(d)    Seller has withheld and paid over to the appropriate taxing authority all material Taxes that Seller is required to withhold from amounts paid or owing to any employee, independent contractor, member, equity holder, creditor or any other Person (and Seller has complied with all reporting and record keeping requirements related thereto, including filing Forms W-2 and 1099 (or other applicable forms)).

(e)    None of the “section 197 intangibles” (as defined in Code Section 197) owned by Seller immediately prior to the Closing are excluded from being “amortizable section 197 intangibles” (as defined in Code Section 197) as a result of Code Section 197(f)(9).

		
	4.10
	Compliance with Laws

19

(a)    Except as set forth in the attachment to Section 4.10(a) of the Seller Disclosure Schedule, (i) Seller is currently conducting and has, for the previous three years, conducted its business in material compliance with all Laws and Orders applicable to the Assets and the Assumed Liabilities;
(ii)Seller has not received any warning letters, notices of adverse findings, or similar documents in writing that assert a lack of substantial compliance with any such applicable Laws, Orders, or regulatory requirements and there is no pending or, to the Knowledge of Seller, threatened regulatory action, investigation or inquiry of any sort against Seller relating to the Assets or the Assumed Liabilities or which could reasonably be expected to result in the revocation or suspension of a Money Transmitter License or any other license held by Seller; (iii) Seller holds all money transmission-related Permits necessary for the conduct of the Rent, Dues and Storage Activities as currently conducted and applicable to the Assets and the Assumed Liabilities; (iv) to the Knowledge of Seller, the operation of the business of Seller as applicable to the Assets and the Assumed Liabilities is in compliance with all Permits it holds in all material respects; and (v) to the Knowledge of Seller, no event has occurred or circumstance exists that (with or without notice or lapse of time or both) could reasonably be expected to result directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of any Money Transmitter License or Permit listed or required to be listed on Section 4.10(b) of the Seller Disclosure Schedule. To the Knowledge of Seller, (x) no suspension, cancellation or termination of any such Permit has been ordered or threatened by any Governmental Entity, and none is imminent other than expirations, and (y) neither Seller, nor any of its officers, directors, agents or employees are subject to any Order that prohibits such officer, director, agent or employee from engaging in or continuing any lawful conduct, activity, or practice related to Seller, the Assets or the Rent, Dues and Storage Activities.

(b)    The attachment to Section 4.10(b) of the Seller Disclosure Schedule contains a complete and accurate list of each Money Transmitter License and each Permit that is held by Seller or that is necessary to the conduct of the Rent, Dues and Storage Activities, as currently conducted. Except as set forth in the attachment to Section 4.10(b) of the Seller Disclosure Schedule, each Money Transmitter License and each other Permit listed or required to be listed on Section 4.10(b) of the Seller Disclosure Schedule is valid and in full force and effect.

4.11    Sufficiency of Assets. Except for services, licenses and support contemplated under the Ancillary Documents, the Assets include all of the assets, properties and rights of every type and description, real, personal, mixed, tangible and intangible, that are used or held for use in connection with the conduct of the Rent, Dues and Storage Activities in substantially the same manner as currently conducted by Seller as of the Effective Date.

4.12    Open Source Software. Section 4.12 of the Seller Disclosure Schedule lists all Open Source Software embedded in or combined with any product or service distributed by Seller to customers in connection with the operation of the Rent, Dues and Storage Activities (the “Distributed Software”). Except as disclosed on Section 4.12 of the Seller Disclosure Schedule: (i) none of the Distributed Software constitutes, contains, or is dependent on any Open Source Software; (ii) none of the Distributed Software is subject to any contractual obligation that would require, based on Seller’s current use of the Distributed Software, Seller to divulge to any Person any source code or trade secret that is part of the Software; and
(iii)Seller has not used any Open Source Software that is Distributed Software in a manner that obligates Seller to disclose, make available, offer or deliver any portion of the source code of the Software to any Person. All use and distribution of any Open Source Software that is Distributed Software by Seller is in

20

material compliance with the terms of the license under which such Open Source Software is licensed to Seller, including all copyright notice and attribution requirements.

4.13    Finders; Brokers. No agent, broker, Person or firm acting on behalf of Seller is, or shall be, entitled to any broker’s fees, finder’s fees or commissions from any of the Parties hereto, or from any of Seller’s Affiliates, in connection with this Agreement or any of the transactions contemplated hereby.

4.14    Exclusivity of Representations. The representations and warranties of Seller contained in this Article IV are the only representations and warranties made by Seller with respect to the Assets and Assumed Liabilities and in connection with the transactions contemplated herein and, for greater certainty and without limiting the generality of the foregoing, no other representation, warranty or condition, whether contractual or legal, and whether express or implied by Seller or construed by Purchaser, is made in connection with, arising out of or relating to the transactions contemplated by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to Seller as follows as of the Closing Date:

5.1    Due Organization, Good Standing and Power of Purchaser. Purchaser is a limited liability company duly organized, validly existing and in good standing (or the equivalent thereof) under the Laws of the jurisdiction of its organization and has all requisite limited liability company power and authority to own, lease and operate its properties and to carry on its business as now being conducted.

		
	5.2
	Authorization; Noncontravention.

(a)    Purchaser has the requisite limited liability company power and authority and has taken all limited liability company action necessary to execute and deliver this Agreement and all other instruments and agreements to be delivered by Purchaser as contemplated hereby, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by Purchaser of this Agreement and all other instruments and agreements to be delivered by Purchaser as contemplated hereby, the consummation by it of the transactions contemplated hereby and the performance of its obligations hereunder have been duly authorized and approved by the requisite members and the board of managers of Purchaser. This Agreement and all other instruments and agreements to be executed and delivered by Purchaser as contemplated hereby have been duly executed and delivered by Purchaser. Assuming that Seller duly executes and delivers to Purchaser this Agreement and all other instruments and agreements to be delivered by Seller pursuant to this Agreement, this Agreement and all other instruments and agreements to be delivered by Purchaser pursuant to this Agreement will constitute a valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as such enforcement may be limited by the Standard Exceptions.

(b)    The execution and delivery of this Agreement and all other instruments and agreements to be delivered by Purchaser as contemplated hereby do not, and the consummation of the transactions contemplated hereby and thereby will not, (i) conflict with any of the provisions of the articles of organization or operating agreement or equivalent charter documents of Purchaser, as amended to the date of this Agreement, (ii) conflict with or result in a material breach of, or constitute a material default under, or result in the acceleration of any material obligation or loss of any benefits under any Contract or other instrument by which Purchaser or any of its properties or assets are bound or (iii) contravene any Law or any Order applicable to Purchaser or by which any of its properties or assets are bound.

21

5.3    Consents and Approvals. No consent of or filing with any Governmental Entity or any other Person, must be obtained or made in connection with the execution and delivery of this Agreement by Purchaser or the consummation by Purchaser of the transactions contemplated by this Agreement.

5.4    Finders; Brokers. No agent, broker, Person or firm acting on behalf of Purchaser nor any of its officers, managers or Affiliates is or shall be entitled to any fee, commission or broker’s or finder’s fees in connection with this Agreement or any of the transactions contemplated hereby.

5.5    Availability of Funds; Solvency. Purchaser has sufficient immediately available funds in cash to pay the Purchase Price and all other amounts payable by Purchaser pursuant to this Agreement and to effect the transactions contemplated hereby. Purchaser has not incurred any obligation, commitment, restriction or Liability of any kind, and is not contemplating or aware of any obligation, commitment, restriction or Liability of any kind, which would impair or adversely affect such funding. Immediately after giving effect to the transactions contemplated hereby: (a) the fair saleable value (determined on a going concern basis) of the assets of Purchaser will be greater than the total amount of its Liabilities (whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed); (b) Purchaser will be able to pay its debts and obligations in the ordinary course of business as they become due; and (c) Purchaser will have adequate capital to carry on its business as presently conducted and all other businesses in which Purchaser is about to engage. In consummating the transactions contemplated hereby, Purchaser does not intend to hinder, delay or defraud any present or future creditors of Purchaser.

		
	5.6
	Capitalization.

(a)    Purchaser. Immediately following the Closing, the ownership of Purchaser shall be as set forth in Schedule A to the Operating Agreement. All of the outstanding Class A Preferred Units, Class B Preferred Units, the Redeemable Preferred Units and PI Units (each as defined in the Operating Agreement; collectively, the “Units”) of Purchaser are, and immediately after the Closing shall be, duly and validly issued, fully paid, and non-assessable. Except as set forth in: (i) this Agreement, (ii) the Operating Agreement, and (iii) the Redeemable Preferred Unit Award Agreement executed by and between Priority Integrated Partner Holdings, LLC, a Delaware limited liability company (“PIPH”) evidencing the issuance of one Redeemable Preferred Unit to PIPH as of the Closing, there are no options, warrants, subscriptions, calls, convertible securities, or other rights, agreements, arrangements or commitments relating to the Units or obligating Purchaser to issue or sell any Units of, or any other equity interest in, Purchaser. Except as set forth in the Operating Agreement, there are no outstanding contractual obligations of Purchaser to repurchase, redeem, or otherwise acquire any Units or make any investment (in the form of a loan, capital contribution, or otherwise) in any other Person.

(b)    Parent and Affiliates. Immediately following the Closing, (i) PIPH shall own 750,000 Class A Preferred Units and one Redeemable Preferred Unit of Purchaser; (ii) Priority Payment Systems Holdings, LLC, a Georgia limited liability company, shall own 100% of the membership interest of PIPH; (iii) Priority Holdings, LLC, a Delaware limited liability company, shall own 100% of the membership interest of Priority Payment Systems Holdings, LLC; and (iv) Parent shall own 100% of the membership interest of Priority Holdings, LLC, a Delaware limited liability company.

5.7    Compliance with Laws. Purchaser is currently conducting and has, for the previous three years, conducted its business in material compliance with all Laws and Orders applicable to Purchaser, its properties and assets. Purchaser has not received any warning letters, notices of adverse findings, or similar documents in writing that assert a lack of substantial compliance with any applicable Laws, Orders, or regulatory requirements and there is no pending or, to the knowledge of Purchaser, threatened regulatory action, investigation or inquiry of any sort against Purchaser.

22

5.8    Title to Assets. Purchaser has good and marketable title to all of its tangible assets and properties, free and clear of all Liens, other than Permitted Liens or Liens to be released immediately prior to the Closing or Liens arising from (a) the Credit and Guaranty Agreement, dated as of January 3, 2017 (as amended, extended, renewed, restated, amended and restated, supplemented, restructured, refinanced or otherwise modified from time to time), among Priority Payment Systems Holdings LLC, Pipeline Cynergy Holdings, LLC and Priority Institutional Partner Services LLC, the other Credit Parties (as defined therein) party thereto from time to time, the lenders party thereto from time to time, and SunTrust Bank, as Administrative Agent, as Collateral Agent, an Issuing Bank and the Swing Line Lender, or (b) the Credit and Guaranty Agreement, dated as of January 3, 2017 (as amended, extended, renewed, restated, amended and restated, supplemented, restructured, refinanced or otherwise modified from time to time), among Priority Holdings, LLC, the other Credit Parties (as defined therein) party thereto from time to time, the lenders party thereto from time to time, and Goldman Sachs Specialty Lending Group, L.P., as Administrative Agent.

5.9    Litigation. There is no Action pending or, to the knowledge of Purchaser, threatened, against Purchaser in respect of its assets or properties. Purchaser is not subject to any Order which materially restricts the operation of its business as currently conducted.

5.10    Financial Statements. Purchaser has provided to Seller a copy of any available unaudited financial statements of Purchaser for the period beginning on July 2, 2018 and ending on December 31, 2018 (the “Purchaser Financial Statements”). The Purchaser Financial Statements fairly and accurately present, in all material respects, the results of operations and financial condition of Purchaser for the periods covered thereby. The Purchaser Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods indicated. Except as set forth in the Purchaser Financial Statements, Purchaser has no material liabilities or obligations, contingent or otherwise, other than (a) liabilities incurred in the ordinary course of business subsequent to December 31, 2018; (b) obligations under contracts and commitments incurred in the ordinary course of business; and (c) liabilities and obligations of a type or nature not required under GAAP to be reflected in the Purchaser Financial Statements, which, in all such cases, individually and in the aggregate would not have a material adverse effect on Purchaser.

		
	5.11
	Tax Matters.

(a)    Purchaser has timely filed or caused to be timely filed with the appropriate taxing authorities all returns, statements, forms and reports for Taxes required to have been filed under applicable law.

(b)    All Taxes and Tax Liabilities required to have been paid by Purchaser have been timely paid. There are no unpaid Taxes in any amount due or claimed to be due by a Governmental Entity of any jurisdiction and, to the knowledge of Purchaser, no basis exists for any such claim in each case which could reasonably be expected to give rise to a Lien on its assets. No Tax audit of Purchaser is in process or, to the knowledge of Purchaser, threatened or contemplated, and Purchaser has not received a notice of assessment from any Governmental Entity indicating that a Tax assessment or recalculation of any Taxes in any Tax Return previously filed. No Tax examination or audit by any Governmental Entity is currently in progress or, to the knowledge of Purchaser, is threatened or contemplated. Purchaser has not been informed by any Governmental Entity in any jurisdiction that such Governmental Entity believes that Purchaser was required to file any Tax Return that was not filed by Purchaser. Purchaser has not waived any statute of limitations with respect to Taxes or Tax Return or agreed to an extension of time with respect to a Tax deficiency or assessment. There are no Liens for Taxes with respect to, in connection with, or related to any asset held by Purchaser.

23

(c)    Purchaser has withheld and paid over to the appropriate taxing authority all material Taxes that Purchaser is required to withhold from amounts paid or owing to any employee, independent contractor, member, equity holder, creditor or any other Person (and Purchaser has complied with all reporting and record keeping requirements related thereto, including filing Forms W-2 and 1099 (or other applicable forms)).

5.12    Certain Transactions. Other than (a) standard employee Contracts and benefits generally made available to all employees, (b) standard consulting Contracts, and (c) the Working Capital Line (as defined in the Operating Agreement), the Operating Agreement and the contracts set forth in Section 14.17 of the Operating Agreement, there are no material Contracts between Purchaser and any of its Affiliates, officers, managers, consultants or key employees, or any Affiliate thereof. Purchaser is not indebted, directly or indirectly, to any of its managers, officers or employees or to their respective spouses or children or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred in the ordinary course of business or employee relocation expenses and for other customary employee benefits made generally available to all employees.

5.13    Exclusivity of Representations. The representations and warranties made by Purchaser in this Article V are the exclusive representations and warranties made by Purchaser. Purchaser hereby disclaims any other express or implied representations or warranties with respect to itself.

ARTICLE VI COVENANTS
		
	6.1
	Confidentiality. Until the date that is two years after the date hereof, Seller shall, and shall

use commercially reasonable efforts to cause its Affiliates to, hold in confidence and not disclose to any Person other than Seller’s legal, tax, accounting, banking or other professional advisers, the Confidential Information. If Seller or any of its Affiliates or Representatives are compelled to disclose any Confidential Information by judicial or administrative process or by other requirements of Law or any securities exchange or trading market, Seller shall notify Purchaser and shall disclose only that portion of such Confidential Information which Seller is advised by its counsel (including in-house counsel) is legally required to be disclosed. Seller shall cooperate with Purchaser, at Purchaser’s sole expense, to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such Confidential Information. The provisions of this Section 6.1 shall not apply to any information or data used exclusively in the operation of the Excluded Assets or relating to the Excluded Liabilities.

6.2    Public Announcements. No Party shall, and the Parties shall cause their respective Affiliates not to, make any public announcements in respect of this Agreement or the transactions contemplated hereby without the prior written consent of the other Party after review of such press release or announcement, except as may be required by Law or by any listing agreement with a securities exchange or trading market and then only to the extent so required and after giving the other Party hereto an opportunity to review and comment on such disclosure, which comments the announcing Party shall consider in good faith. Notwithstanding the foregoing and notwithstanding Section 6.1, the Parties and their respective Affiliates may disclose the terms of this Agreement, the financial results obtained or the terms of any of the contemplated transactions (a) to their Representatives, (b) to their Affiliates’ investors (whether existing or future), limited partners, members, and equity holders in connection with their respective fund raising, marketing, informational, reporting activities and other ordinary course activities,
(c)to any of their Affiliates, auditors, attorneys, or financing sources, or (d) to any bona fide prospective purchaser of the equity or assets of Seller or its Affiliates, in each case subject to a duty of confidentiality at least as restrictive as that provided hereunder.

24

		
	6.3
	Post-Closing Access to Records; Reporting Obligations; Personnel; Litigation Support.

(a)    For a period of six years after the Closing Date, Purchaser shall retain the books and records included in the Assets, and upon reasonable notice, afford Seller reasonable access (including the right to make, at Seller’s expense, photocopies), during normal business hours, to such books and records in connection with an audit, accounting, Tax, litigation, securities disclosure, or other similar need or any other reasonable legal or business purpose.

(b)    Notwithstanding the foregoing, any and all such records may be destroyed by Purchaser during the period beginning on the Closing Date and continuing for six years thereafter if Purchaser sends to Seller written notice of its intent to destroy such records, specifying in reasonable detail the contents of the records to be destroyed, unless Seller or its Affiliate notifies Purchaser in writing that it desires to obtain possession of such records within 60 days following the date of delivery of such notice, in which event Purchaser shall transfer the records to Seller or its Affiliate.

(c)    If and for so long as a Party actively is contesting or defending against any action, claim, lawsuit, demand, inquiry, hearing, investigation, notice of a violation or noncompliance, litigation, proceeding, arbitration, appeal or other dispute, brought by a third party in connection with (i) this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving the Assets, the Assumed Liabilities or the Excluded Liabilities, the non-contesting or non-defending Party shall reasonably cooperate with the contesting or defending Party and its counsel, at the contesting or defending Party’s expense.

(d)    Seller agrees to take commercially reasonable efforts to enforce, at Purchaser’s request and sole expense, on Seller’s own behalf and for the benefit of Purchaser, all rights of Seller related to restrictive covenants (e.g., nondisclosure, confidentiality, noncompete, and nonsolicitation rights) contained in any Contracts of Seller related to the Rent, Dues and Storage Activities to the extent such rights are not transferred or assigned to Purchaser pursuant to or in connection with this Agreement.

(e)    Seller and Purchaser shall reasonably cooperate, as and to the extent reasonably requested by the other Party, in connection with the preparation of audited financial statements and related financial and other disclosures that may be required to be included in any registration statement or report filed by the other Party under federal securities Laws pertaining to the Assets or any portion thereof. Such cooperation shall be at the sole cost and expense of the requesting Party and shall include the retention and (upon the other Party’s request) the prompt provision of records and information to the extent the records and information are reasonably relevant to any such audited financial statements and related financial and other disclosures and making employees available on a mutually convenient basis during normal business hours to provide additional information and explanation of any material provided hereunder. Notwithstanding the foregoing, neither Party shall be required to (i) indemnify or commit to any obligation with respect to any such audit or cooperation, except for customary authorization letters, (ii) pay, or agree to pay, any fees or incur any other costs, expenses, or Liabilities, (iii) waive or amend any provision of any Contract or take any action in violation of any Law or Contract, (iv) take any action that would reasonably be expected to result in the loss of any attorney-client privilege, work-product doctrine, or other applicable legal privilege, or (v) disclose any information that is not directly related to the Assets or that is otherwise confidential or that has competitive value.

(f)    Seller shall provide to the individuals designated by Purchaser on Exhibit A reasonable access, subject to Seller’s defined security policies (to the extent that such security policies permit reasonable access), to all logins and passwords used on the date hereof reasonably necessary to access the Assets.

25

		
	6.4
	Tax Matters. With respect to the Assets and the Rent, Dues and Storage Activities:

(a)    All stamp, transfer, documentary, sales and use, value added, registration and other such taxes and fees (including any penalties and interest) incurred in connection with this Agreement or the Purchase (collectively, the “Transfer Taxes”) shall be borne in equal parts by Seller and by Purchaser. Seller and Purchaser shall cooperate in the filing of all Tax Returns related to any Transfer Tax and Seller and Purchaser shall each provide to the other evidence of payment of its portion of Transfer Taxes.

(b)    All ad valorem and personal property Taxes with respect to the ownership of the Assets that relate to the Overlap Period shall be apportioned between Seller and Purchaser as follows on a per diem basis beginning on the day following the Effective Date. Seller shall be liable for Taxes with respect to the ownership of the Assets that are attributable to all Pre-Effective Date Periods. Purchaser shall be liable for Taxes with respect to the ownership of the Assets that are attributable to all post-Effective Date periods.

(c)    Seller and Purchaser shall cooperate fully, as and to the extent reasonably requested by the other, in connection with the filing of Tax Returns and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon a Party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.

6.5    Domain Names. Seller is the owner, whether directly or through a proxy, of the Domain Name registrations that are identified in Section 2.2(d) of the Seller Disclosure Schedule, each of which is registered with the accredited domain name registrar (each, a “Registrar”) as set forth on Section 2.2(d) of the Seller Disclosure Schedule. Seller shall take all action reasonably requested by Purchaser and necessary to consent irrevocably and to authorize each Registrar to transfer all rights in the Domain Names to Purchaser. Seller shall also cooperate fully with Purchaser and each Registrar of the Domain Names to facilitate the filing and processing of all forms and other formalities (including changing passwords, user names, and internet provider addresses) necessary to complete the transfer of the Domain Name registrations.

		
	6.6
	Parent Guarantee of Purchaser Indemnification Obligations

(a)    Parent hereby unconditionally and irrevocably guarantees to Seller the due and punctual payment and performance by Purchaser (and any permitted assignees thereof) of Purchaser’s indemnification obligations under Article VII, if any, and all costs of collection and expenses, including reasonable attorneys’ fees, incurred by Seller in enforcing the terms of this Section 6.6 (the “Purchaser Guaranteed Obligations”). The foregoing sentence is an absolute, unconditional and continuing guaranty of the full and punctual discharge and performance of the Purchaser Guaranteed Obligations, and is a guaranty of payment, not collection. Notwithstanding anything to the contrary contained in this Agreement, the Parties agree that Seller may resort first to Parent to enforce the Purchaser Guaranteed Obligations.

(b)    Parent represents and warrants to Seller as follows: (i) Parent is a corporation duly formed, validly existing and in good standing under the under the Laws of the jurisdiction of its organization and has the requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations under this Section 6.6; (ii) the execution, delivery and performance of this Agreement by Parent has been duly authorized by all necessary organizational action, and no other proceedings or actions on the part of Parent is necessary therefor; (iii) this Agreement constitutes the legal, valid and binding obligations of Parent and is enforceable against Parent in accordance with its

26

terms, subject to the Standard Exceptions; and (iv) the execution, delivery or performance by Parent of this Agreement will not contravene, conflict with or result in a violation of Parent’s certificate of incorporation, bylaws, or any Laws or Contracts to which Parent is subject or bound.

(c)    This guarantee shall not be impaired whatsoever by any modification or other alteration of any of the Purchaser Guaranteed Obligations, including the modification or amendment (whether material or otherwise) of any obligation of Parent or Purchaser under this Agreement. The liability of Parent is direct and unconditional and may be enforced without requiring Seller first to resort to any other right, remedy or security. Parent hereby waives any notice of acceptance; presentment and protest of any instrument, and notice thereof; notice of default; and all other notices to which each might otherwise be entitled.

6.7    Further Assurances. From time to time after the Closing Date, each Party hereto shall, at the reasonable request of any other Party hereto, execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions, as such Party may reasonably request to consummate the transactions contemplated by this Agreement and to permit Purchaser to timely comply with all legal and regulatory requirements, including rules of the U.S. Securities and Exchange Commission (e.g., in preparing and auditing any financial statements, related footnotes and disclosures, at Purchaser’s sole expense, as related to the Assets), following the Closing Date, including executing and delivering such assignments, deeds, bills of sale, consents and other documents and instruments as such Party or its counsel may reasonably request.

ARTICLE VII SURVIVAL; INDEMNIFICATION
		
	7.1
	Survival of Representations and Warranties. Subject to Section 7.4(a), the respective

representations and warranties of Seller and Purchaser contained in this Agreement shall survive the Closing until the date that is 18 months following the Closing Date, except that the representations and warranties contained in (a) (i) Section 4.1 (Due Organization, Good Standing), Section 4.2(a) (Authorization; Noncontravention), Section 4.4(b) (Financial Statements – Affiliate Commissions Report) and Section 4.6 (Title to Assets) (the “Seller Fundamental Representations”), and (ii) Section 5.1 (Due Organization, Good Standing and Power of Purchaser), Section 5.2(a) (Authorization; Noncontravention) and Section 5.5 (Availability of Funds; Solvency) (the “Purchaser Fundamental Representations” and together with the Seller Fundamental Representations, the “Fundamental Representations”) shall survive the applicable statute of limitations, and (b) Section 4.9 (Tax Matters) shall survive the Closing until the date that is 60 days after the date the applicable statutes of limitations with respect to the liabilities in question expire (after giving effect to any extensions or waivers thereof). The indemnification under Sections 7.2(c), 7.2(d) and 7.2(e) survive the applicable statute of limitations. Each covenant and other agreement of Purchaser or Seller hereunder shall survive for the period specified with respect to such covenant, and if no period is specified, until fully performed.

7.2    Indemnification by Seller. Subject to the limitations set forth in this Article VII, Seller agrees to and shall indemnify Purchaser and each of its Representatives and Affiliates (the “Purchaser Indemnitees”) and save and hold each of them harmless from and against any and all Losses suffered, incurred or paid by them as a result of or arising out of:

(a)    any breach of any representation or warranty of Seller contained in Article IV (other than any Seller Fundamental Representation);

27

(b)    any breach of any Seller Fundamental Representation or any covenant or agreement by Seller contained in this Agreement;

(c)    without duplication, any Taxes attributable to Seller or to the Assets with respect to any Pre-Effective Date Period;

		
	(d)
	any Excluded Liability; or

		
	(e)
	Fraud or willful breach of this Agreement by Seller or any of its Representatives

or Affiliates.

7.3    Indemnification by Purchaser. Subject to the limitations set forth in this Article VII, Purchaser agrees to and shall indemnify Seller and each of its Representatives and Affiliates (the “Seller Indemnitees”) and save and hold each of them harmless from and against any and all Losses suffered, incurred or paid by them as a result of or arising out of:

(a)    any breach of any representation or warranty of Purchaser contained in Article V (other than any Purchaser Fundamental Representation);

(b)    any breach of any Purchaser Fundamental Representation or any covenant or agreement by Purchaser contained in this Agreement;

		
	(c)
	any Assumed Liability;

		
	(d)
	without duplication, any Taxes attributable to the Assets with respect to any post-

Effective Date period; or

(e)    Fraud or willful breach of this Agreement by Purchaser or any of its Representatives or Affiliates.

7.4    Limitation on Indemnification. Notwithstanding anything to the contrary contained in this Agreement:

(a)    No Person shall be liable for any claim for indemnification under this Article VII unless a Claim Certificate is delivered by the Person seeking indemnification to the Person from whom indemnification is sought prior to the expiration of the applicable survival period, in which case the representation, warranty, covenant or agreement which is the subject of such claim shall survive until such claim is resolved, whether or not the amount of the Losses resulting from such breach has been finally determined at the time the notice is given and whether or not the applicable survival period would have expired but for this sentence.

(b)    Neither Seller nor Purchaser, as the case may be, shall be liable for any claim for indemnification pursuant to Section 7.2(a) or Section 7.3(a), as the case may be, unless the aggregate amount of Losses on a cumulative basis which may be recovered from Seller or Purchaser, as the case may be, equals or exceeds $500,000 (the “Deductible”), in which case, subject to the other limitations herein, Seller or Purchaser, as the case may be, shall only be liable for the aggregate amount of Losses in excess of the amount of the Deductible.

(c)    The maximum aggregate liability of Seller pursuant to (i) Section 7.2(a) shall not exceed (A) an amount in cash equal to $[*] (the “Cash Cap”) plus (B) a forfeiture of such number of Seller’s Class B Preferred Units in an amount up to $[*] based on the Fair Market Value (as

28

defined in the Operating Agreement) of such Class B Preferred Units at the time of the delivery of the applicable Claim Certificate(s) pursuant to the provisions of Section 7.6 (the “Equity Forfeiture Cap”); provided, however, that any amounts due to Purchaser pursuant to the provisions of this Article VII shall be offset first against the Cash Cap, and only upon exhaustion thereof, the Equity Forfeiture Cap; and (ii) Section 7.2(b) through (e) of this Agreement shall not exceed an amount equal to the Purchase Price actually received by Seller. Notwithstanding anything to the contrary in this Agreement, the aggregate amount of all Losses that may be recovered from Seller by Purchaser Indemnitees under this Agreement shall not exceed (x) an amount equal to the Purchase Price actually received by Seller plus (y) the forfeiture of the Class B Preferred Units actually received by Seller pursuant to the Award Agreement, valued at the Fair Market Value at the time of the delivery of the applicable Claim Certificate(s) pursuant to the provisions of Section 7.6.

7.5    Losses Net of Insurance, etc. The amount of any Loss for which indemnification is provided under Section 7.2 or Section 7.3 shall be net of any insurance proceeds received as an offset against such Loss (a “Collateral Source”). If the amount to be netted hereunder in connection with a Collateral Source from any payment required under Section 7.2 or Section 7.3 is received after payment by the Indemnifying Party of any amount otherwise required to be paid to an Indemnified Party pursuant to this Article VII, the Indemnified Party shall repay to the Indemnifying Party, promptly after such receipt, any amount that the Indemnifying Party would not have had to pay pursuant to this Article VII had such receipt occurred at the time of such payment. Each Party shall use commercially reasonable efforts to mitigate Losses for which it intends to seek indemnification hereunder. The party seeking indemnification under this Article VII shall not be entitled to recover any Losses relating to any matter arising under one provision of this Agreement to the extent that such party has already recovered such Losses with respect to such matter pursuant to other provisions of this Agreement.

		
	7.6
	Indemnification Procedure.

(a)    In the event any Person incurs Losses to which it is entitled to indemnification pursuant to Section 7.2 or Section 7.3, as applicable, including any claim by a Person described in Section
7.7    (an “Indemnified Party”) that might give rise to indemnification hereunder, the Indemnified Party shall, during the applicable survival period set forth in Section 7.1, deliver a certificate (a “Claim Certificate”) to the party from which indemnification is sought (the “Indemnifying Party”), which Claim Certificate shall:

(i)state that the Indemnified Party has paid or anticipates, in good faith, it will incur Losses for which such Indemnified Party is entitled to indemnification pursuant to this Agreement, together with a good faith estimate thereof to the extent known; and

(ii)specify in reasonable detail the nature of the misrepresentation, breach of warranty, breach of covenant or claim to which the Losses such Indemnified Party claims to be entitled hereunder relate together with reference to the applicable representation or warranty or covenant hereunder.

Notwithstanding the foregoing, the failure to so notify the Indemnifying Party during the applicable survival period set forth in Section 7.1 shall not affect the Indemnified Party’s right to indemnification hereunder except to the extent the Indemnifying Party was materially prejudiced thereby.

(b)    The Indemnified Party making the claim shall only be required to state what is required in subsections (i) and (ii) above and shall not be required to admit or deny the validity of the facts or circumstances out of which such claim arose.

29

(c)    The Indemnifying Party and the Indemnified Party shall, within the 60-day period beginning on the date of receipt by the Indemnifying Party of a Claim Certificate, attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims set forth in the Claim Certificate. If the Indemnified Party and the Indemnifying Party reach agreement on their respective rights with respect to any of such claims, the Indemnified Party and the Indemnifying Party shall promptly prepare and sign a memorandum setting forth such agreement. Should the Indemnified Party and the Indemnifying Party not agree as to any particular item or items or amount or amounts within such time period, then the Indemnified Party shall be permitted to submit such dispute to the courts set forth in Section 8.8.

(d)    Claims for Losses covered by a memorandum of agreement of the nature described in Section 7.6(c) and claims for Losses, including Third-Party Claims, the validity and amount of which have been the subject of judicial determination as described in Sections 7.6(c) and 8.8 or shall have been settled with the consent of the Parties are hereinafter referred to, collectively, as “Agreed Claims”. Within 10 Business Days of the determination of the amount of any Agreed Claim, subject to the limitations on liability herein, the Indemnifying Party shall pay to the Indemnified Party an amount equal to the Agreed Claim by wire transfer in immediately available funds to the bank account or accounts designated by the Indemnified Party in a notice to the Indemnifying Party.

		
	7.7
	Third-Party Claims.

(a)    If a claim by a third party (a “Third-Party Claim”) is made against any Indemnified Party, and if such party intends to seek indemnity with respect thereto under this Section 7.7, such Indemnified Party shall promptly notify the Indemnifying Party of such Third-Party Claim and provide a Claim Certificate in connection therewith, provided that the failure to promptly notify the Indemnifying Party shall not affect the Indemnified Party’s right to indemnification hereunder except to the extent the Indemnified Party was materially prejudiced thereby. The Indemnifying Party shall have 30 days after receipt of such notice to assume the conduct and control, at the expense of the Indemnifying Party, through counsel of its choosing which is reasonably acceptable to the Indemnified Party, of the settlement or defense of such Third-Party Claim and the Indemnified Party shall cooperate with the Indemnifying Party in connection therewith; provided, that the Indemnifying Party shall permit the Indemnified Party to participate in such settlement or defense through counsel chosen by such Indemnified Party; provided, that the fees and expenses of such counsel shall be borne by such Indemnified Party. The Indemnifying Party shall not be entitled to assume control of such defense and, subject to the limitations on liability herein, shall pay the reasonable fees and expenses of counsel retained by the Indemnified Party if (i) such Third- Party Claim relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation that constitutes a breach of any representation or warranty of the Indemnifying Party hereunder; (ii) such Third-Party Claim seeks an injunction against the Indemnified Party; (iii) the Indemnified Party has been advised by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party (other than a conflict arising out of this Agreement); or (iv) upon petition by the Indemnified Party, the appropriate court rules that the Indemnifying Party failed or is failing to vigorously prosecute or defend such Third-Party Claim. Notwithstanding any other provision of this Agreement, with respect to any claim with respect to Taxes, Seller shall have the right to control such claim at its sole expense if, but only if, such claim relates solely to Taxes (x) attributable to the Assets with respect to any Pre-Effective Date Period or (y) imposed on Seller.

(b)    Any Indemnified Party shall have the right to employ separate counsel in any such action or claim and to participate in the defense of such Third-Party Claim, but the fees and expenses of such counsel shall not be at the expense of the Indemnifying Party unless (i) the Indemnifying Party shall have failed, or is not entitled, to assume the defense of such Third-Party Claim in accordance with Section 7.7(a) and such Third-Party Claim constitutes a breach of any representation or warranty of the

30

Indemnifying Party hereunder, or (ii) the employment of such counsel has been specifically authorized in writing by the Indemnifying Party. So long as the Indemnifying Party is reasonably contesting in good faith any Third-Party Claim that such Indemnifying Party has assumed the settlement or defense of, the Indemnified Party shall not pay or settle any such Third-Party Claim, unless otherwise consented to by the Indemnifying Party.

(c)    If the Indemnifying Party does not notify the Indemnified Party within 30 days after the receipt of the Indemnified Party’s notice of a Third-Party Claim of indemnity hereunder that it elects to undertake the defense thereof, the Indemnified Party shall have the right to settle the Third-Party Claim but shall not thereby waive any right to indemnity therefor pursuant to this Agreement and any such settlement shall not be determinative of the amount or existence of any Losses under this Article VII.

(d)    The Indemnifying Party shall not, except with the consent of the Indemnified Party (not to be unreasonably withheld or delayed), enter into any settlement that does not include, as an unconditional term thereof, an unconditional release from all liability by the Person or Persons asserting such Third-Party Claim to all Indemnified Parties with respect to such Third-Party Claim or consent to entry of any judgment.

(e)    The Indemnifying Party and the Indemnified Party shall cooperate with each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available records relating to such Third-Party Claim and furnishing such employees of the Indemnified Party as may be reasonably necessary for the preparation of the defense of any such Third-Party Claim or for testimony as witnesses in any proceeding relating to such Third-Party Claim.

7.8    Tax Treatment of Indemnities. Indemnity payments under this Article VII shall be treated as adjustments to the Purchase Price for all federal, state, local and foreign Tax purposes, and the Parties agree to file their Tax Returns accordingly.

7.9    Offset. The Parties Agree that, in addition to all other remedies available under this Agreement, at law, in equity, or otherwise, any amounts due to Seller by Purchaser pursuant to this Agreement may be reduced by any and all amounts of Agreed Claims due by Seller to Purchaser.

7.10    Materiality Scrape. The representations and warranties contained in this Agreement will be deemed to have been made without any qualifications as to materiality, material adverse effect, specified dollar thresholds, or similar qualifiers for purposes of determining the amount of Losses indemnifiable under this Article VII but not for purposes of determining if there is a breach of such representations and warranties.

7.11    Exclusive Remedies. Except with respect to the remedies described in Section 8.10 and except for Fraud with respect to the representations and warranties in this Agreement or willful breach of the covenants in this Agreement, the Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims arising from this Agreement shall be pursuant to the indemnification provisions set forth in this Article VII. The Parties may not avoid the limitations on liability, recovery and recourse set forth in this Article VII by seeking damages for breach of contract, tort or pursuant to any other theory of Liability. Except as provided in Section 8.10 and except for Fraud with respect to the representations and warranties in this Agreement or willful breach of the covenants in this Agreement, each of the Parties hereby waives and releases the other Parties from any right to recover any damages, Losses or Liabilities in connection with this Agreement, other than pursuant to the indemnification provisions set forth in Article VII. The Parties agree that they would not have entered into this Agreement but for the releases and waivers set forth in this Section 7.11. For the avoidance of doubt, nothing in this Section 7.11

31

is intended to, or shall, limit in any party in any way from seeking remedies under any agreements entered into in connection with this Agreement.

ARTICLE VIII MISCELLANEOUS
		
	8.1
	Expenses. Except as otherwise provided in this Agreement, all costs and expenses incurred

in connection with this Agreement and the Purchase and the transactions contemplated hereby will be paid by the Party incurring such costs and expenses. In the event of any litigation, arbitration or similar proceeding, the non-prevailing party shall pay the reasonable fees and expenses of the prevailing party’s outside attorneys in connection with such litigation, arbitration or other proceeding.

8.2    Extension; Waiver. Any agreement on the part of any Party to any extension of the time for performance or any covenant or agreement or the waiver of any provisions hereof shall be valid only if set forth in an instrument in writing signed by or on behalf of such Party and referencing such extension or waiver. No failure or delay on the part of any Party hereto in the exercise of any right hereunder shall impair such right or be construed as a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right.

8.3    Notices. Except as otherwise provided herein, all notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by email (with return email acknowledgement or read-receipt) to the respective parties as follows (or, in each case, as otherwise notified by any of the Parties hereto) and shall be effective and deemed to have been given (a) immediately upon receipt of email acknowledgement or read-receipt, when sent by email between 9:00 A.M. and 6:00 P.M. (in New York, New York) on any Business Day (and when sent outside of such hours, at 9:00 A.M. (in New York, New York) on the next Business Day), and (b) when received if delivered by hand or overnight courier service or certified or registered mail on any Business Day:
		
	(i)
	If to Seller, to: YapStone, Inc.

2121 North California Boulevard, Suite 400 Walnut Creek, CA 94596
Attention: David E. Durant, General Counsel

with a copy (which shall not constitute notice or service of process) to: Fenwick & West LLP
801 California Street, Mountain View, CA 94041
Attention: Michael Brown; David Michaels

32

(i)    If to Parent or Purchaser, to:

Priority Real Estate Technology, LLC 2001 Westside Parkway, Suite 155
Alpharetta, Georgia 30004
Attention: Chris Prince, General Counsel

with a copy (which shall not constitute notice or service of process) to: Maynard Cooper & Gale PC
1901 Sixth Avenue North 2400 Regions Harbert Plaza Birmingham, Alabama 35203 Attention: Michel M. Marcoux

Notices sent by multiple means, each of which is in compliance with the provisions of this Agreement will be deemed to have been received at the earliest time provided for by this Agreement. Any Party from time to time may change its address, facsimile number, email, or other information for the purpose of notices to that Party by giving notice specifying such change to the other Parties hereto in accordance with this Section 8.3.

8.4    Entire Agreement. This Agreement, together with the Exhibits hereto, the other agreements referenced herein, and the Seller Disclosure Schedule, contains the entire understanding of the Parties hereto with respect to the subject matter contained herein and supersedes all prior agreements and understandings, oral and written, with respect thereto.

8.5    Binding Effect; Benefit; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties hereto. Except with respect to Article VII hereof, which shall inure to the benefit of each Purchaser Indemnitee and Seller Indemnitee, all of whom are intended as express third-party beneficiaries thereof, no other Person not party to this Agreement shall be entitled to the benefits of this Agreement. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties hereto without the prior written consent of the other Parties; provided, that, Purchaser may assign its rights, interests and obligations hereunder collaterally for the purpose of securing any financing for the transactions contemplated hereby. Any attempted assignment in violation of this Section 8.5 will be void.

8.6    Amendment and Modification. This Agreement may not be amended except by a written instrument executed by all Parties to this Agreement.

8.7    Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument. Signed counterparts of this Agreement may be delivered by facsimile, Docu-Sign or by scanned
.pdf image, and such signed counterparts shall be deemed originals for all purposes.

8.8    Applicable Law; Submission to Jurisdiction; Consent to Service of Process. THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAWS RULES THEREOF. THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK CITY, NEW YORK SHALL HAVE EXCLUSIVE

33

JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY AND THE PARTIES CONSENT TO AND AGREE TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS. EACH OF THE PARTIES HERETO HEREBY WAIVES AND AGREES NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (A) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (B) SUCH PARTY AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR (C) ANY LITIGATION OR OTHER PROCEEDING COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM. CONSISTENT WITH THE FOREGOING, EACH OF THE PARTIES HERETO AGREES THAT IT WILL NOT BRING OR SUPPORT ANY ACTION AGAINST, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT IN ANY FORUM OTHER THAN EXCLUSIVELY IN THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK CITY, NEW YORK; PROVIDED THAT NOTHING IN THIS SECTION 8.8 SHALL PROHIBIT A PARTY FROM ENFORCING A JUDGMENT OR ORDER IN ANY JURISDICTION IN THE WORLD. AS A METHOD OF SERVICE, EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION BROUGHT IN ANY STATE OR FEDERAL COURTS IN THE STATE OF NEW YORK BY THE DELIVERIES OF COPIES OF SUCH PROCESS TO SUCH PARTY AT ITS RESPECTIVE ADDRESS SET FORTH IN SECTION 8.3 HEREOF OR BY CERTIFIED MAIL DIRECT TO SUCH ADDRESS.

8.9    Severability. If any term, provision, agreement, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be illegal, invalid, void or unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party hereto, and, upon such a determination, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties hereto as closely as possible in a reasonably acceptable manner in order that the transactions contemplated hereby may be consummated as originally contemplated to the fullest extent possible.

8.10    Specific Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached or threatened to be breached and that an award of money damages would be inadequate in such event. Accordingly, it is acknowledged that the Parties shall be entitled to equitable relief, without proof of actual damages, including an Order for specific performance to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in addition to any other remedy to which they are entitled at law or in equity as a remedy for any such breach or threatened breach. Each Party further agrees that neither the other Parties nor any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 8.10, and each Party hereto irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

8.11    Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, AND SHALL CAUSE ITS AFFILIATES TO WAIVE, ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

8.12    Rules of Construction. The Parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement and have participated jointly in the drafting of this

34

Agreement and, therefore, waive the application of any Law, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the Party drafting such agreement or document.

8.13    Non-Recourse. No past, present or future director, officer, employee, incorporator, member, partner, stockholder, Affiliate, agent, attorney or representative of Seller or its Affiliates shall have any liability for any obligations or Liabilities of Seller under this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby.

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

[Signature Page Follows]

35

IN WITNESS WHEREOF, Purchaser and Seller have caused this Asset Purchase and Contribution Agreement to be duly executed by their respective officers thereunto duly authorized, all as of the date first above written.

	
					
	 
	 
	PURCHASER:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	PRIORITY REAL ESTATE TECHNOLOGY, LLC,

	 
	 
	a Delaware limited liability company

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Thomas C. Priore
	 

	 
	 
	Name:
	Thomas C. Priore
	 

	 
	 
	Title:
	Chairman and CEO
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	SELLER:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	YAPSTONE, INC.,
	 
	 

	 
	 
	a Delaware corporation
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Weiss
	 

	 
	 
	Name:
	David Weiss
	 

	 
	 
	Title:
	President
	 

36

IN WITNESS WHEREOF, the undersigned has executed or caused to be duly executed, as applicable, by its officers thereunto duly authorized and is joining this Asset Purchase and Contribution Agreement solely for the purposes of Section 6.6, Section 8.5, Section 8.8, Section 8.11 and Section 8.12
thereof, all as of the date first written above.

	
					
	 
	 
	PRIORITY TECHNOLOGY HOLDINGS, INC.,

	 
	 
	a Delaware corporation
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Thomas C. Priore
	 

	 
	 
	Name:
	Thomas C. Priore
	 

	 
	 
	Title:
	Chairman and CEO
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]