Document:

Exhibit 10.1

 

AGREEMENT AND PLAN OF MERGER

 

by and among

 

IDEANOMICS, INC.,

 

USH MERGER CORP.,

 

US HYBRID CORPORATION,

 

and

 

DR. GORDON ABAS GOODARZI, as the Stockholders’
Representative,

 

Dated: May 12, 2021

 

     

     

    

 

TABLE OF CONTENTS

 

	AGREEMENT & PLAN OF MERGER	7
	 	 
	RECITALS	7
	 	 
	ARTICLE I	7
	 	 
	1.1.	Definitions	7
	1.2.	Rules of Construction	23
	 	 
	ARTICLE II	24
	 	 
	2.1. 	Closing	24
	2.2.	The Merger	24
	2.3. 	Certificate of Incorporation and Bylaws	25
	2.4.	Directors and Officers	25
	2.5	Conversion of Shares	25
	2.6	Closing Considerations	26
	2.7	Mechanics of Exchange and Surrender	28
	2.8	Purchase Price Adjustment	29
	2.9	Dissenting Shares	32
	2.10. 	 Growth Capital	32
	2.11.	Substitutions of Cash for Stock Consideration	32
	2.12. 	Withholding	33
	 	 
	ARTICLE III	33
	 	 
	3.1	Organization & Powers	33
	3.2	Authorization and Enforceability	34
	3.3.	Capitalization	34
	3.4. 	No Violation	35

 

     

     

    

 

	3.5.	Governmental Authorizations and Consents	36
	3.6.	Financial Statements	36
	3.7.	Absence of Certain Changes	37
	3.8.	Relationships with Affiliates	39
	3.9.	Indebtedness to and from Officers and Directors of the Group
Companies	39
	3.10.	Assets	40
	3.11.	Real Property	40
	3.12.	Intellectual Property	41
	3.13.	Contracts	46
	 	(a)	Material Contracts	46
	 	(b)	Status of Materials Contracts	47
	 	(c)	Government Contracts	48
	3.14.	Compliance with Laws; Anti-Corruption;Anti-Money Laundering;
Permits	49
	3.15.	Environmental Matters	50
	3.16.	Litigation	51
	3.17.	Personnel Matters	51
	3.18.	Labor Matters	54
	3.19.	Employee Benefits	55
	3.20.	Tax Matters	57
	3.21.	Insurance	62
	3.22.	Bank Accounts; Powers of Attorney	62
	3.23.	Customers and Suppliers	62

 

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	3.24.	Receivables	63
	3.25.	Books and Records	63
	3.26.	Products Liability and Warranty Liability	64
	3.27.	Inventory	64
	3.28.	Export Controls; Sanctions	64
	3.29	No Brokers	65
	3.30.	No Other Agreements to Purchase	65
	3.31.	Disclosure	66
	 	 
	ARTICLE IV	66
	 	 
	4.1.	Organization and Power	66
	4.2.	Authorization and Enforceability	66
	4.3.	No Violation	67
	4.4.	Governmental Authorizations and Consents	67
	4.5.	No Brokers	67
	4.6.	Operations of Merger Sub	67
	4.7.	Issuance of Stock Consideration	67
	4.8.	SEC Documents; Financial Statements	68
	4.9.	Absence of Certain Changes	69
	4.10.	No Undisclosed Events, Liabilities,Developments
or Circumstances	69
	4.11.	Conduct of Business; Regulatory Permits	69
	4.12.	Capitalization	70
	4.13.	Litigation	70
	4.14.	Insurance	71

 

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	4.15.	Manipulation of Price	71
	4.16.	Money Laundering	71
	4.17.	Disclosure	71
	4.18.	Private Placement	72
	 	 
	ARTICLE V	72
	 	 
	5.1.	Conduct of the Company	72
	5.2.	Access to Information	74
	5.3.	Consents; Approvals; Efforts, Regulatory and Other Authorizations	75
	5.4.	Tax Matters	76
	5.5.	Confidentiality	79
	5.6.	Indebtedness, Transaction Expenses	79
	5.7.	Exclusivity	80
	5.8.	Public Announcements	80
	5.9.	Notice of Developments	80
	5.10.	Terms of Affiliated Loans	81
	5.11.	Retention Plan	81
	5.12.	 Non-Competition and Non-Solicitation	82
	5.13	Release	83
	5.14.	Magmotors Technologies 401(k) Plan	83
	5.15.	Disclosure Schedules	84
	5.16.	Pending Litigation Matters	84
	 	 
	ARTICLE VI	85
	 	 
	6.1.	Conditions to the Obligations of the Company	85

 

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	6.2.	Conditions to the Obligations of Parent and Merger Sub	85
	 	 	 
	ARTICLE VII	 	86
	 	 	 
	7.1	Deliveries by the Company at Closing	86
	7.2.	Deliveries by Parent and Merger Sub at Closing	88
	 	 
	ARTICLE VIII	89
	 	 
	8.1.	Expiration of Representations and Warranties	89
	8.2.	Indemnification
	89
	 	(a) 	By Stockholder	89
	 	(b) 	By Parent	90
	 	(c) 	Limitations on Rights of Indemnitees	90
	 	(d) 	Procedure	92
	 	(e) 	Tax Treatment	95
	8.3.	Recourse; Escrow Release; Set-Off	95
	8.4.	Exclusive Remedy	97
	 	 
	ARTICLE IX	97
	 	 
	9.1.	Termination Events	97
	9.2.	Procedure and Effect Termination	98
	 	 
	ARTICLE X	99
	 	 
	10.1.	Stockholders’ Representation	99
	 	(a) 	Appointment of Stockholders’ Representative	99
	 	(b) 	Authority	99
	 	(c) 	Extent and Survival of Authority	99
	 	(d) 	Release from Liability; Indemnification	100
	 	(e) 	Reimbursement of Expenses	100

 

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	10.2.	Expenses	100
	10.3.	Notices	100
	10.4.	Governing Law	101
	10.5.	Entire Agreement	102
	10.6.	Severability	102
	10.7	Amendment	102
	10.8.	Effect of Waiver or Consent	102
	10.9.	Parties in Interest; Limitation on Rights of Others	102
	10.10.	Assignability	103
	10.11.	Jurisdiction; Court Proceedings; Waiver of Jury Trial	103
	10.12.	No Other Duties	103
	10.13.	Reliance on Counsel and Other Advisors	103
	10.14.	Remedies	103
	10.15.	Specific Performance	104
	10.16.	Counterparts	104
	10.17.	Further Assurances	104

 

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AGREEMENT
AND PLAN OF MERGER

 

aGREEMENT
AND PLAN OF MERGER, dated as of May 12, 2021, by and among Ideanomics, Inc., a Nevada corporation (“Parent”),
USH Merger Corp., a Delaware corporation and a wholly-owned Subsidiary of Parent (“Merger Sub”), US Hybrid Corporation,
a Delaware corporation (the “Company”), and Dr. Goodarzi, in his capacity as Stockholders’ Representative hereunder,
and Dr. Goodarzi in his individual capacity.

 

RECITALS

 

WHEREAS, Parent desires to
acquire all of the capital stock of the Company in a reverse triangular merger transaction pursuant to which the Merger Sub will merge
with and into the Company (the “Merger”), with the Company continuing as the surviving entity and a wholly-owned
Subsidiary of Parent, upon the terms and subject to the conditions set forth in this Agreement;

 

WHEREAS, the respective boards
of directors of Parent, Merger Sub and the Company have, on the terms and subject to the conditions set forth in this Agreement, (a) determined
and declared that the Merger is advisable to, and in the best interest of, each corporation and its respective stockholders, (b) authorized
and approved this Agreement, the Merger and the consummation of the transactions contemplated hereby and (c) in the case of the Company’s
board of directors, has recommended the adoption and approval of this Agreement and the Merger by its stockholders, in accordance with
the Delaware General Corporation Law, as amended (the “DGCL”);

 

WHEREAS, concurrently with
the execution and delivery of this Agreement, holders of the requisite number of shares of Capital Stock needed to approve and adopt this
Agreement are executing and delivering to the Company and Parent a written consent pursuant to which such holders adopt and approve this
Agreement, the Merger, and the consummation of the transactions contemplated hereby; and

 

WHEREAS, the parties hereto
desire to make certain representations, warranties, covenants and agreements in connection with the Merger.

 

NOW THEREFORE, in consideration
of the premises and the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally
bound hereby, the parties hereto agree as follows:

 

ARTICLE I

Definitions and Rules of Construction

 

1.1.           
Definitions.

 

As used in this Agreement, the
following terms shall have the meanings set forth below:

 

“1934 Act”
has the meaning set forth in Section 4.8.

 

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“Accounting Principles”
means accounting principles historically used by the Company, consistently applied.

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control
with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly, either
to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or equivalent) of such Person
or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. The Group Companies
shall be deemed for purposes of this Agreement an Affiliate of the Stockholders prior to the Closing and of Parent from and after the
Closing.

 

“Affiliate Agreement”
has the meaning set forth in Section 3.8.

 

“Affiliated Loans”
means those items that are set forth on Section 3.9 of the Company Disclosure Schedule, together with those arrangements entered into
between the date hereof and the Closing that, if in place as of the date hereof, would have been required to have been included on Section
3.9 of the Company Disclosure Schedule.

 

“Agreement”
means this Agreement and Plan of Merger, as it may be amended from time to time.

 

“Allocation Statement”
has the meaning set forth in Section 2.6(c).

 

“Ancillary Documents”
means the documents being executed and delivered in connection with this Agreement and the transactions contemplated hereby.

 

“Anti-Corruption Laws”
means the U.S. Foreign Corrupt Practices Act (15 U.S.C. § 78m and 15 U.S.C. § 78dd-1 et seq.), and analogous
applicable Laws and regulations of all other jurisdictions in which the Company conducts business.

 

“Auditor”
has the meaning set forth in Section 2.8(b).

 

“Balance Sheet Date”
has the meaning set forth in Section 3.6(a).

 

“Business Day”
means any day other than a Saturday, Sunday or day on which banks are closed in New York, New York. If any period expires on a day which
is not a Business Day or any event or condition is required by the terms of this Agreement to occur or be fulfilled on a day which is
not a Business Day, such period shall expire or such event or condition shall occur or be fulfilled, as the case may be, on the next succeeding
Business Day.

 

“Cap” has
the meaning set forth in Section 8.2(c)(ii).

 

“Capital Stock”
means, collectively, the Common Stock.

 

“CARES Act”
means the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended, and the rules and regulations promulgated thereunder.

 

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“Cash” means
cash, cash equivalents, and marketable securities; provided that “Cash” shall not include restricted cash or similar
restricted balances.

 

“Certificate of Merger”
has the meaning set forth in Section 2.2(b).

 

“CFIUS” has
the meaning set forth in Section 8.2(a).

 

“CFIUS Laws and Regulations”
means all applicable Laws related to monitoring, review and enforcement by the Committee on Foreign Investment in the United States of
foreign investment in the United States, including but not limited to section 721 of the Defense Production Act, as amended by the Foreign
Investment Risk Review Modernization Act of 2019, and Regulations Pertaining to Certain Investments in the United States by Foreign Persons,
31 C.F.R. Part 800.

 

“Charter”
means the Certificate of Incorporation of the Company.

 

“Claims” has the meaning
set forth in Section 5.13.

 

“Closing”
has the meaning set forth in Section 2.1.

 

“Closing Cash”
means all Cash held by the Company as of 11:59 P.M. on the date immediately prior to the Closing Date, determined on a consolidated basis
in accordance with GAAP; provided that “Closing Cash” shall be (a) increased by the amount of deposits or other payments received
by the Company but not yet credited to the bank accounts of the Company as of such time, to the extent that such deposits or other payments
have reduced Closing Net Working Capital, (b) reduced by the amount of any outstanding checks or other payments issued by the Company
but not yet deducted from the bank accounts of the Company as of such time, to the extent that such checks or other payments have increased
Closing Net Working Capital, and (c) calculated net of any amounts overdrawn from the bank accounts of the Company as of such time.

 

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

 

“Closing Date”
has the meaning set forth in Section 2.1.

 

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

 

“Closing Indebtedness”
means all of the Indebtedness of the Company as of 11:59 P.M. on the date immediately prior to the Closing Date; provided that
 “Closing Indebtedness” shall exclude any Indebtedness repaid or otherwise terminated or released prior to Closing.

 

“Closing Net Working
Capital” means (a) the sum of the total consolidated current assets of the Company (including typical Tax assets and prepaid
expenses) minus (b) the sum of the total consolidated current liabilities of the Company (including typical Tax liabilities such as accrued
sales, use, and property Taxes), in each case, as of 11:59 P.M. on the date immediately prior to the Closing Date as calculated in accordance
with GAAP applied on a basis consistent with prior periods; provided that “Closing Net Working Capital” shall exclude
Cash, deferred Tax assets, and deferred Tax liabilities of the Company.

 

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“Closing VWAP”
means the VWAP as of the date that is three (3) days prior to the Closing Date.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, or corresponding provisions of subsequent superseding federal revenue
Laws.

 

“Commercial Software”
means non-customized, off-the-shelf, commercially-available Software licensed pursuant to a standard form license agreement, used internally
(and not licensed or sublicensed to third parties) by the Group Companies in connection with the business of the Group Companies as currently
conducted, and with annual royalty, license, maintenance, support and other fees of One Hundred Thousand Dollars ($100,000) or less.

 

“Common Stock”
means the common stock of the Company, all of which is without par value.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Data”
has the meaning set forth in Section 3.12(n).

 

“Company Disclosure
Schedule” means the disclosure schedule of even date herewith delivered by the Company to Parent in connection with the execution
and delivery of this Agreement.

 

“Company Employment
Contracts” has the meaning set forth in Section 3.17(k).

 

“Company Intellectual
Property” means all Intellectual Property that is owned or purported to be owned by the Group Companies.

 

“Company IT Systems”
means all Software, computer hardware, servers, networks, platforms, peripherals, and similar or related items of automated, computerized,
or other information technology (IT) networks and systems (including telecommunications networks and systems for voice, data, and video)
owned, leased, licensed, or used (including through cloud-based or other third-party service providers) by or for the Group Companies.

 

“Company Products”
means all Software products and related services of the Group Companies that are currently or at any time in the past have been offered,
licensed, sold, distributed, hosted, maintained or supported, or otherwise provided or made available by or on behalf of the Group Companies
or otherwise used in the operation of the business of the Group Companies, or are currently under development by or for the Group Companies.

 

“Company Site”
has the meaning set forth in Section 3.12(m).

 

“Consultant”
means all Persons who are or have been engaged as consultants by the Group Companies or who otherwise provide services to the Group Companies
under a contractual arrangement.

 

“Contemplated Transactions”
means the transactions contemplated by this Agreement and the Ancillary Documents.

 

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“Contract”
means any agreement, contract, arrangement, understanding, obligation or commitment to which a party is bound or to which its assets or
properties are subject, whether oral or written, and any amendments and supplements thereto.

 

“Copyrights”
means copyrights and works of authorship (registered or otherwise), whether or not copyrightable, and all registrations, applications
for registration, and renewals of any of the foregoing and all rights therein provided by multinational treaties or conventions.

 

“Current Government
Contract” means any Government Contract respect to which (a) the period of performance has not yet expired, (b) final payment
has not been received, or (c) any claims have not been fully and finally resolved.

 

“Customer Data”
means all data, meta data, information or other content (a) transmitted to the Group Companies by users or customers of the Company Products
or Company Sites or collected in the course of business of the Group Companies or (b) otherwise stored, transmitted, used or hosted by
or on behalf of the Group Companies or the Company Products.

 

“Deductible”
has the meaning set forth in Section 8.2(c)(i).

 

“Deferred Payroll Taxes”
means any Taxes payable by any Group Company that (i) relate to the portion of the “payroll tax deferral period” (as defined
in Section 2302(d) of the CARES Act) that occurs prior to the Closing and (ii) are payable following the Closing as permitted by Section
2302(a) of the CARES Act, similar law or executive order (together with all regulations and guidance related thereto issued by a Governmental
Authority).

 

“Dewei” means
(1) Jiangsu Dewei Advanced Materials Co., Ltd., (2) Hong Kong Dewei Advanced Materials International Trading Co., (3) Dewei Mingxing New
Energy Technology Co., Limited, and/or (4) any Affiliate of the foregoing.

 

“DGCL” has
the meaning set forth in the Recitals.

 

“Dispute Resolution
Submission” has the meaning set forth in Section 2.8(b).

 

“Disputed Line Item”
has the meaning set forth in Section 2.8(b).

 

“Dissenting Shares”
has the meaning set forth in Section 2.9(a).

 

“Dr. Goodarzi”
means Dr. Gordon Abas Goodarzi.

 

“Effective Time”
has the meaning set forth in Section 2.2(b).

 

“Employment Agreements”
has the meaning set forth in Section 7.1.

 

“Environmental
Laws” means any foreign, federal, state or local law, statute, ordinance, rule or regulation governing Environmental
Matters, as the same have been or may be amended from time to time, including any common law cause of action providing any right or
remedy relating to Environmental Matters, all indemnity agreements and other contractual obligations (including leases, asset
purchase and merger agreements) relating to Environmental Matters, and all applicable judicial and administrative decisions, orders
and decrees relating to Environmental Matters.

 

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“Environmental Matter”
means any matter arising out of, relating to, or resulting from pollution, contamination, protection of the environment, human health
or safety, health or safety of employees, sanitation, and any matters relating to emissions, discharges, disseminations, releases or threatened
releases, of Hazardous Materials into the air (indoor and outdoor), surface water, groundwater, soil, land surface or subsurface, buildings,
facilities, real or personal property or fixtures or otherwise arising out of, relating to, or resulting from the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, handling, release or threatened release of Hazardous Materials.

 

“Equity Securities”
of any Person means any and all shares of capital stock, rights to purchase shares of capital stock, warrants or options (whether or not
currently exercisable), participations or other equivalents of or interests in (however designated) the equity (including common stock,
preferred stock and limited liability company, partnership and joint venture interests) of such Person, and all securities exchangeable
for or convertible or exercisable into, any of the foregoing.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time, as well as any rules and regulations
promulgated thereunder and any corresponding provisions of subsequent superseding federal Laws relating to retirement matters, as from
time to time in effect.

 

“ERISA Affiliate”
means a corporation which is or was at any time a member of a controlled group of corporations with the Group Companies within the meaning
of Code Section 414(b), a trade or business which is or was under common control with the Group Companies within the meaning of Code Section
414(c), or a member of an affiliated service group with the Group Companies within the meaning of Code Sections 414(m) or (o).

 

“Escrow Agent”
has the meaning set forth in Section 7.1(h).

 

“Escrow Agreement”
has the meaning set forth in Section 7.1(h).

 

“Estimated Closing
Cash” has the meaning set forth in Section 2.6(b).

 

“Estimated Closing
Indebtedness” has the meaning set forth in Section 2.6(b).

 

“Estimated Closing
Net Working Capital” has the meaning set forth in Section 2.6(b).

 

“Estimated Closing
Transaction Expenses” has the meaning set forth in Section 2.6(b).

 

“Event” means
any event, change, development, effect, condition, circumstance, matter, occurrence or state of facts.

 

“Excess Amount”
has the meaning set forth in Section 2.8(d).

 

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“Expiration Date”
has the meaning set forth in Section 8.1.

 

“Final Closing Cash”
means the amount of Closing Cash as finally determined pursuant to Section 2.8.

 

“Final Closing Consideration”
has the meaning set forth in Section 2.8(a).

 

“Final Closing Indebtedness”
means the amount of Closing Cash as finally determined pursuant to Section 2.8.

 

“Final Closing Net
Working Capital” means the amount of Closing Net Working Capital as finally determined pursuant to Section 2.8.

 

“Final Closing Transaction
Expenses” means the amount of Closing Cash as finally determined pursuant to Section 2.8.

 

“Final Determination
Date” means the date upon which the Final Closing Cash, Final Closing Net Working Capital, Final Closing Indebtedness, and Final
Closing Transaction Expenses become final and binding on Parent and the Stockholders’ Representative pursuant to Section 2.8.

 

“Final Statement”
means the Preliminary Statement, as adjusted to reflect the final determination of Final Closing Cash, Final Closing Net Working Capital,
Final Closing Indebtedness, and Final Closing Transaction Expenses in accordance with Section 2.8.

 

“Financial Statements”
has the meaning set forth in Section 3.6(a).

 

“Fully Diluted Share
Number” means the aggregate number of shares of Common Stock outstanding immediately prior to the Effective Time.

 

“Fundamental Representations”
has the meaning set forth in Section 8.1.

 

“GAAP” means
generally accepted accounting principles as set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other Person as may be approved by a significant segment of the accounting profession in the United States.

 

“Government Bid”
means a pending bid submitted by the Company to a Governmental Authority, including a prime contractor or a higher tier subcontractor
to the U.S. Government or any foreign government for the design, manufacture or sale of products or the provision of services by the Company.

 

“Government
Contract” means any Contract, including any prime contract, subcontract, facility contract, teaming agreement or
arrangement, joint venture, basic ordering agreement, pricing agreement, letter contract, grant, purchase order, delivery order,
change order or other contractual arrangement of any kind, between any of the Group Companies on the one hand, and (i) any
Governmental Authority (acting on its own behalf or on behalf of another Governmental Authority or international organization), (ii)
any prime contractor of any Governmental Authority or (iii) any subcontractor with respect to any contract of a type described in
clauses (i) or (ii) above on the other hand.

 

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“Governmental Authority”
means any nation or government, any foreign or domestic federal, state, county, municipal or other political instrumentality or subdivision
thereof and any foreign or domestic entity or body exercising executive, legislative, judicial, regulatory, administrative or taxing functions
of or pertaining to government, including any court and, for the avoidance of doubt, the arbitrator appointed in connection with the Pending
Litigation Matter.

 

“Governmental Consents”
has the meaning set forth in Section 3.5.

 

“Group Companies”
means, collectively, the Company, USFC, and any other Subsidiaries of the Company or USFC.

 

“Group Companies OFAC
Parties” means, collectively, the (a) Group Companies, Stockholders, and any Group Companies’ Subsidiaries, (b) each of
the executive officers, directors, or management of the Persons identified in clause (a), (c) each of the shareholders, members, partners,
and other Persons that directly or indirectly hold ownership interests in or Control, the Persons identified in clause (a), and (d) any
Person on whose behalf the Group Companies, Stockholders, or any Group Companies’ Subsidiaries acts.

 

“Growth Capital”
has the meaning set forth in Section 2.10.

 

“Hazardous Materials”
means any pollutants, contaminants, toxic or hazardous or extremely hazardous substances, materials, wastes, constituents, compounds,
chemicals, natural or man-made elements or forces (including petroleum or any by-products or fractions thereof, any form of natural gas,
lead, asbestos and asbestos-containing materials, building construction materials and debris, polychlorinated biphenyls (“PCBs”)
and PCB-containing equipment, radon and other radioactive elements, ionizing radiation, electromagnetic field radiation and other non-ionizing
radiation, sonic forces and other natural forces, infectious, carcinogenic, mutagenic or etiologic agents, pesticides, defoliants, explosives,
flammables, corrosives and urea formaldehyde foam insulation) that are regulated by, or may form the basis of liability under, any Environmental
Laws.

 

“Income Tax Return”
means a Tax Return in connection with Income Taxes.

 

“Income Taxes”
means all federal, state, local and foreign (a) Taxes that are based on or measured by income (or that include as one of their alternative
bases a Tax based on or measured by income), and (b) franchise Taxes.

 

“Indebtedness”
means, without duplication, all obligations and indebtedness of the Group Companies (a) for borrowed money (other than trade
debt and other similar liabilities incurred in the ordinary course of business), (b) evidenced by a note, bond, debenture or
similar instrument (including any interest rate swaps, collars, caps and similar hedging obligations), (c) created or arising
under any capital lease, conditional sale, earn out or other arrangement for the deferral of purchase price of any property,
(d) under letters of credit, banker’s acceptances, performance bonds, surety bonds or similar credit transactions,
(e) for any other Person’s obligation or indebtedness of the same type as any of the foregoing, whether as obligor,
guarantor or otherwise, (f) Deferred Payroll Taxes, (g) for interest on any of the foregoing and/or (h) for any premiums,
prepayment or termination fees, expenses or breakage costs due upon prepayment of any of the foregoing; provided that
 “Indebtedness” shall exclude (a) accounts payable to trade creditors, accrued expenses, and deferred revenues, in each
case to the extent arising in the ordinary course of business consistent with past practice and included in the calculation of
Closing Net Working Capital, and (b) Indebtedness owing from the Company to any other Group Companies or from any other Group
Companies to the Company.

 

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“Indemnitee”
has the meaning set forth in Section 8.2(d)(i).

 

“Indemnitor”
has the meaning set forth in Section 8.2(d)(i).

 

“Indemnity Escrow Account”
has the meaning set forth in Section 2.6(d)(i).

 

“Indemnity Escrow Amount”
means Twenty Million Dollars ($20,000,000).

 

“Indemnity Escrow Shares”
means that number of shares of Parent Common Stock equal to the Indemnity Escrow Amount based on a valuation of such Parent Common Stock
pursuant to the Closing VWAP.

 

“Insurance Policies”
has the meaning set forth in Section 3.21.

 

“Intellectual Property”
means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: Copyrights;
Patents; Trademarks; Trade Secrets; internet domain names and social media accounts or user names (including “handles”), whether
or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data
thereon or relating thereto, whether or not Copyrights; Software; rights of publicity; and all other intellectual or industrial property
and proprietary rights.

 

“Intellectual Property
Registrations” has the meaning set forth in Section 3.12(a).

 

“International
Trade Laws and Regulations” means all applicable Laws concerning the importation of merchandise, the export or re-export
of products, services and/or technology, the terms and conduct of international transactions, the making or receiving international
payments and/or the authorization to hold an ownership interest in a business located in a country other than the United States,
including the Tariff Act of 1930 as amended and other Laws administered by the United States Customs Service, regulations issued or
enforced by the United States Customs Service, the Export Administration Act of 1979 as amended, the Export Administration
Regulations, the International Emergency Economic Powers Act, the Arms Export Control Act, the International Traffic in Arms
Regulations, any other export controls administered by an agency of the U.S. Government, Executive Orders of the President regarding
embargoes and restrictions on trade with designated countries and Persons, the embargoes and restrictions administered by the United
States Office of Foreign Assets Control, the antiboycott regulations administered by the United States Department of Commerce, the
antiboycott regulations administered by the United States Department of the Treasury, Laws of the United States and other countries
implementing the United States Mexico Canada Agreement, antidumping and countervailing duty Laws, Laws by other countries concerning
the ability of U.S. Persons to own businesses and conduct business in those countries, Laws by other countries implementing the OECD
Convention on Combating Bribery of Foreign Officials, restrictions by other countries on holding foreign currency and repatriating
funds and other Laws adopted by the Governmental Authorities or agencies of other countries relating to the same subject matter as
the United States Laws described above.

 

    - 15 -

     

    

 

“Inventory”
has the meaning set forth in Section 3.27.

 

“Knowledge of the Company”
means the actual knowledge of any of the following personnel of the Company, after reasonable inquiry and investigation: Dr. Goodarzi,
Don Kang, Michael Harrington, Enzo Bauk, Daniel Orlowski and Christophe Salgues.

 

“Laws” means
all laws, Orders, statutes, codes, regulations, ordinances, decrees, rules, or other requirements with similar effect of any Governmental
Authority.

 

“Leased Real Property”
has the meaning set forth in Section 3.11.

 

“Letter of Transmittal”
has the meaning set forth in Section 2.7(a).

 

“Liability”
means, with respect to any Person, any and all liabilities, claims, debts, obligations and commitments of whatever nature of such Person
of any kind, character or description, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued,
liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable
or otherwise, and whenever or however arising (including those arising out of any Law, Contract, breach, violation, infringement or tort,
whether based on negligence, strict liability or otherwise) and whether or not the same is required to be accrued on the financial statements
of such Person.

 

“Licensed Intellectual
Property” means all Intellectual Property in which the Group Companies hold any rights or interests granted by any other Person.

 

“Lien” means
any lien, statutory or otherwise, security interest, mortgage, deed of trust, priority, pledge, charge, right of first refusal or other
encumbrance or similar right of others, or any agreement to give any of the foregoing.

 

“Litigation”
has the meaning set forth in Section 3.16.

 

“Loss” or
 “Losses” has the meaning set forth in Section 8.2(a).

 

“Magmotors Technologies”
means Magmotor Technologies, Inc., a Delaware corporation.

 

“Malicious Code”
has the meaning set forth in Section 3.12(l).

 

    - 16 -

     

    

 

“Material Adverse
Effect” means, with respect to a given Person, (a) a material adverse effect on the business, condition (financial or
otherwise), assets, liabilities, results of operation or prospects of the Person and its Subsidiaries taken as a whole; provided,
that any effect resulting from any of the following shall not be considered when determining whether a Material Adverse Effect shall
have occurred: (i) conditions affecting generally the United States economy, including the financial, credit, or securities markets,
(ii) acts of terrorism, armed hostilities or war, (iii) any change in Law or GAAP, or the interpretation thereof, (iv) the public
announcement of this Agreement and the Contemplated Transactions, (v) any failure by such Person and its Subsidiaries to meet any
internal or published projections, forecasts, or revenue or earnings predictions (it being understood and agreed that the
circumstances underlying any such failure may, unless otherwise excluded by another clause in this definition, be taken into account
in determining whether a Material Adverse Effect has occurred or would be reasonably likely to occur), (vi) natural disasters or
acts of God, or (vii) fluctuations in the trading price of shares of the capital stock of such Person (it being understood and
agreed that the circumstances underlying any such fluctuations may, unless otherwise excluded by another clause in this definition,
be taken into account in determining whether a Material Adverse Effect has occurred or would be reasonably likely to occur), except,
in the case of clauses (i), (ii), and (vi), to the extent (and only to the extent) that such Person and its Subsidiaries are
materially disproportionately impacted, or would reasonably be expected to be materially disproportionately impacted, by such events
in comparison to others in the industry in which such Person and its Subsidiaries operate or (b) an Event that prevents or
materially delays, or would reasonably be expected to prevent or materially delay, consummation of the Contemplated Transactions or
the performance by such Person, its Subsidiaries and their respective equityholders of any of their material obligations under this
Agreement or the Ancillary Documents.

 

“Material Contracts”
has the meaning set forth in Section 3.13(a).

 

“Merger”
has the meaning set forth in the Recitals.

 

“Merger Consideration”
means (a) the Closing Consideration, plus (b) the consideration that the Stockholders become entitled to receive pursuant to Section
2.8 in respect of the Shortfall Amount (if any), plus (c) that portion (if any) of the Working Capital Escrow Amount that the Stockholders
become entitled to receive pursuant to Section 2.8, plus (d) that portion (if any) of the Indemnity Escrow Shares that the Stockholders
become entitled to receive pursuant to Section 8.3.

 

“Merger Sub”
has the meaning set forth in the Preamble.

 

“Merger Sub Common
Stock” has the meaning set forth in Section 2.5(a).

 

“Most Recent Annual
Financial Statements” has the meaning set forth in Section 3.6(a).

 

“Most Recent Unaudited
Balance Sheet” has the meaning set forth in Section 3.24.

 

“Most Recent Unaudited
Financial Statements” has the meaning set forth in Section 3.6(a).

 

“NASDAQ”
means the National Market System of the National Association of Securities Dealers Automated Quotations System.

 

    - 17 -

     

    

 

“NDA” has
the meaning set forth in Section 5.5.

 

“Objections Statement”
has the meaning set forth in Section 2.8(b).

 

“Open Source Software”
means any Software that is distributed as “free software,” “open source software,” or pursuant to any license
identified as an “open source license” by the Open Source Initiative (www.opensource.org/licenses) or other license that substantially
conforms to the Open Source Definition (opensource.org/osd) (including, without limitation, the GNU General Public License (GPL), GNU
Lesser General Public License (LGPL), GNU Affero General Public License (AGPL), MIT License (MIT), Apache License, Artistic License, and
BSD Licenses).

 

“Orders”
means all judgments, orders, writs, injunctions, decisions, rulings, decrees and awards of any Governmental Authority.

 

“Parent”
has the meaning set forth in the Preamble.

 

“Parent Common Stock”
means the common stock of Parent, par value $0.001 per share.

 

“Parent Disclosure
Schedule” means the disclosure schedule of even date herewith delivered by Parent to the Company in connection with the execution
and delivery of this Agreement.

 

“Parent Financial Statements”
has the meaning set forth in Section 4.8.

 

“Parent Indemnitees”
has the meaning set forth in Section 8.2(a).

 

“Patents”
means United States and foreign issued patents and patent applications (whether provisional or non-provisional), including divisionals,
continuations, continuations-in-part, substitutions, reissues, reexaminations or otherwise resulting from any post grant review, extensions,
or restorations of any of the foregoing, and other Governmental Authority-issued indicia of invention ownership (including certificates
of invention, petty patents, and patent utility models).

 

“PCBs” has
the meaning set forth in the definition of “Hazardous Materials.”

 

“Pending Claim”
has the meaning set forth in Section 8.3(b).

 

“Pending Litigation
Matter” means the matter submitted to arbitration pursuant to Order No. 434447 entered by the Honorable Thomas Moukawsher of
the Judicial District of Hartford’s Connecticut Superior Court, and all matters proceeding and subsequent to such arbitration related
to the same, before the American Arbitration Association by claimants
and counter-respondents US FuelCell Corporation, Jiangsu Dewei Advanced Materials Co., Ltd., Hong Kong Dewei Advanced Materials International
Trading Co., and Dewei Mingxing New Energy Technology Co., Limited, on the one hand, and respondents and counter-claimants Dr. Goodarzi
and US Hybrid Corporation, on the other hand, with respect to disputed claims arising from and related to certain operative agreements.

 

    - 18 -

     

    

 

“Per Share Closing
Consideration” means the quotient obtained by dividing (i) the Closing Consideration by (ii) the Fully Diluted Share Number.

 

“Per Share Indemnity
Escrow Consideration” means, with respect to any Indemnity Escrow Shares released from time to time from the Indemnity Escrow
Account for distribution to the Stockholders pursuant to Section 8.3, that number of shares equal to (a) such number of Indemnity Escrow
Shares so released divided by (b) the Fully Diluted Share Number.

 

“Per Share Merger Consideration”
means an amount, rounded to four decimal places, equal to (a) the Per Share Closing Consideration, (b) the right to receive the Per Share
Shortfall Consideration (if any), as and when payable in accordance with the terms of this Agreement, (c) the right to receive the Per
Share Working Capital Escrow Consideration (if any), as and when payable in accordance with the terms of this Agreement and the Escrow
Agreement, and (d) the right to receive the Per Share Indemnity Escrow Consideration (if any), as and when payable in accordance with
the terms of this Agreement and the Escrow Agreement.

 

“Per Share Shortfall
Consideration” means an amount, rounded to four decimal places, equal to (a) the Shortfall Amount divided by (b) the Fully Diluted
Share Number.

 

“Per Share Working
Capital Escrow Consideration” means, with respect to any amount released from the Working Capital Escrow Account for distribution
to the Stockholders pursuant to Section 2.8(c) or Section 2.8(d), an amount, rounded to four decimal places and payable in cash, equal
to (a) such amount so released divided by (b) the Fully Diluted Share Number.

 

“Permits”
has the meaning set forth in Section 3.14.

 

“Permitted Lien”
shall mean any (i) Lien in respect of current Taxes not yet due and owing, (ii) mechanics’, carriers’, workmen’s, repairmen’s
or other like Liens arising or incurred in the ordinary course of business, and (iii) with respect to leasehold interests, mortgages and
other Liens incurred, created, assumed or permitted to exist and arising by, through or under a landlord or owner of the Leased Real Property.

 

“Person”
means any individual, person, entity, general partnership, limited partnership, limited liability partnership, limited liability company,
corporation, joint venture, trust, business trust, cooperative, association, foreign trust or foreign business organization and the heirs,
executors, administrators, legal representatives, successors and assigns of the “Person” when the context so permits.

 

“Personally Identifiable
Information” means any information that alone or in combination with other information held by or on behalf of the Group Companies
can be used to specifically identify a Person, including but not limited to a natural person’s name, street address, telephone number,
e-mail address, photograph, social security number, driver’s license number, passport number, credit or debit card number or customer
or financial account number or any similar information that is treated as personally identifiable information under applicable Laws.

 

“Personnel”
has the meaning set forth in Section 3.17(a).

 

    - 19 -

     

    

 

“Plan” or
 “Plans” has the meaning set forth in Section 3.19(a).

 

“PLM Costs”
has the meaning set forth in Section 5.16(b).

 

“PPP Loan”
has the meaning set forth in Section 6.2(g).

 

“Pre-Closing Date Share”
means (a) with respect to any Income Tax liability for a Straddle Period, the amount that would be due for the portion of the tax
period beginning on the first day of the Straddle Period and ending on the Closing Date, based on an interim closing of the books as of
the close of business on the Closing Date, and (b) with respect to any other Tax liability for a Straddle Period, the total amount
due for the entire Straddle Period, multiplied by (x) the number of days in the Straddle Period on or before the Closing Date divided
by (y) the total number of days in the Straddle Period.

 

“Pre-Closing Taxes”
means (a) all Taxes of Group Companies with respect to taxable periods ending on or before the Closing Date, (b) the Pre-Closing Date
Share of all Taxes of the Group Companies with respect to Straddle Periods, (c) one half of any Transfer Taxes, (d) any Liabilities of
any Group Company for Taxes of another Person (1) under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local
or non-U.S. Tax Law) as a result of such Group Company (or any predecessor) having been a member of a consolidated, combined or similar
Tax group at any time prior to Closing or, (2) as a transferee or successor, where such status arose prior to Closing; (e) any and all
Taxes arising in connection with the Contemplated Transactions, (f) any Taxes, including employment, payroll or other Taxes with respect
to compensatory payments paid in connection with the Closing, (g) any Deferred Payroll Taxes, (h) any payments required to be made after
the Closing Date under any Tax Sharing Agreement to which a Group Company was obligated, or was a party, on or prior to the Closing Date,
and (i) any Taxes imposed on or with respect to the Buyer and/or any Group Company with respect to any Tax period (or portion thereof)
beginning after the Closing that are attributable to the forgiveness, cancellation or other discharge of any Group Company’s PPP
Loan or the denial or reversal of any deductible expenses (regardless of when such expenses are paid or accrued) funded by the proceeds
of any Group Company’s PPP Loan; provided, that Pre-Closing Taxes shall not include any Taxes resulting from events or transactions
occurring after the Closing or on the Closing Date at the request of Parent, other than the Contemplated Transactions,and Pre-Closing
Taxes shall not include any Liabilities taken into account in determining the Final Closing Consideration.

 

“Preliminary Statement”
has the meaning set forth in Section 2.8(a).

 

“Privacy and Security
Requirements” has the meaning set forth in Section 3.12(m).

 

“Privacy Policy”
means any external or internal past or present published privacy policy of the Group Companies, including any policy relating to (a) the
privacy of users of any Company Product or of any Company Site, (b) the collection, storage, disclosure, and transfer of any Customer
Data or Personally Identifiable Information, or (c) any employee information.

 

“Real Property Leases”
has the meaning set forth in Section 3.11.

 

“Regulatory Approvals”
has the meaning set forth in Section 5.3.

 

    - 20 -

     

    

 

“Releasee”
has the meaning set forth in Section 5.13.

 

“Releasor”
has the meaning set forth in Section 5.13.

 

“Representatives”
means, with respect to any Person, such Person’s directors, officers, Affiliates, employees and agents.

 

“Restricted Area”
means world-wide.

 

“Retention Plan”
has the meaning set forth in Section 5.11.

 

“SEC” has
the meaning set forth in Section 4.8.

 

“SEC Documents”
has the meaning set forth in Section 4.8.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Shortfall Amount”
has the meaning set forth in Section 2.8(c).

 

“Software”
means computer programs, operating systems, applications, firmware, and other code, including all source code, object code, application
programming interfaces, data files, databases, protocols, specifications, and other documentation thereof.

 

“Stock Certificate”
means a certificate or certificates, or an instrument or instruments, which immediately prior to the Effective Time represented outstanding
shares of Capital Stock.

 

“Stock Consideration”
means the shares of Parent Common Stock issued pursuant to this Agreement.

 

“Stockholder Indemnitees”
has the meaning set forth in Section 8.2(b).

 

“Stockholder(s)”
means the holders of shares of Common Stock.

 

“Stockholders’
Representative” has the meaning set forth in Section 10.1(a).

 

“Straddle Period”
means any taxable period beginning on or before the Closing Date and ending after the Closing Date.

 

“Subsidiary”
means, with respect to any Person, any corporation or other organization, whether incorporated or unincorporated, (a) of which such
Person or any other Subsidiary of such Person is a general partner (excluding partnerships, the general partnership interests of which
held by such Person or any Subsidiary of such Person do not have a majority of the voting interests in such partnership), or (b) at
least a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the
board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly
owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries.

 

    - 21 -

     

    

 

“Surviving Corporation”
has the meaning set forth in Section 2.2(a).

 

“Target Net Working
Capital” means Four Million One Hundred Thousand Dollars ($4,100,000).

 

“Tax” or
 “Taxes” means all federal, state, local and foreign income, profits, franchise, gross receipts, alternative minimum
add-on minimum, environmental, customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use,
real property, personal property, ad valorem, unclaimed property, escheat, social security, unemployment, payroll, license, employee,
withholding, excise production, value added, occupancy, transfer, real property gains, excise, occupation, customs, duties, documentary,
registration and other taxes, duties or assessments of any nature, base erosion and anti-abuse (including taxes under Section 59A of the
Code), transition (including taxes under Section 965 of the Code), any assessable payment under Section 4980H of the Code, whatsoever
imposed by a Governmental Authority, together with all interest, penalties or additions to tax attributable to such taxes and any Liability
for Taxes of another Person by Contract (including any Tax Sharing Agreement), as a transferee or successor, or under Treasury Regulations
Section 1.1502-6 or analogous state, local or foreign Law, or otherwise, whether disputed or not.

 

“Tax Contest”
shall mean any audit, hearing, examination, proposed adjustment, arbitration, deficiency, assessment, suit, dispute, claim, proceeding
or other Litigation commenced, filed or otherwise initiated or convened to investigate or resolve the existence and extent of a Liability
for Taxes.

 

“Tax Return”
means any report, return, statement, form or other written information (including elections, declarations, disclosures, schedules, estimates
and information returns) filed or required to be filed by the Group Companies with a Taxing Authority in connection with any Taxes and
any amendment thereto.

 

“Tax Sharing Agreement”
means any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement or similar Contract or arrangement (including any such
agreement, contract or arrangement included in any purchase or sale agreement, merger agreement, joint venture agreement or other document),
other than an ordinary commercial agreement the primary purpose of which is not the indemnification, sharing, or allocation of Tax.

 

“Taxing Authority”
shall mean any government or any subdivision, agency, commission or authority thereof, or any quasi-governmental or private body, having
jurisdiction over the assessment, determination, collection or other imposition of Taxes.

 

“Third Party Approvals”
has the meaning set forth in Section 5.3.

 

“Top Customers”
has the meaning set forth in Section 3.23(a).

 

“Top Suppliers”
has the meaning set forth in Section 3.23(b).

 

“Trade
Secrets” means trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology,
business and technical information, databases, data compilations and collections, tools, methods, processes, techniques, and other
confidential and proprietary information and all rights therein.

 

    - 22 -

     

    

 

“Trademarks”
means trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or
origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration,
and renewals of, any of the foregoing.

 

“Transaction Expenses”
means all fees, costs and expenses incurred or to be paid, whether prior to or after the Closing, by the Company in connection with, arising
from or relating to the Contemplated Transactions or any transaction or series of transactions similar to the Contemplated Transactions,
including (a) fees and disbursements of counsel, financial advisors, Consultants and accountants, (b) filing fees and expenses incurred
by the Company in connection with any filing by the Company with a Governmental Authority, and (c) any severance, change-in-control, termination,
retention, sale bonus, incentive or similar amounts or benefits payable or due to any current or former employee, director or independent
consultant of the Company as a result of or in connection with the Contemplated Transactions, together with the employer portion of any
applicable payroll Taxes owed with respect to the foregoing; provided that “Transaction Expenses” shall not include
any amounts payable pursuant to the Retention Plan.

 

“Transfer Taxes”
means all transfer, documentary, sales, use, stamp, registration and other such Taxes and fees (including any penalties and interest)
incurred in connection with the Contemplated Transactions.

 

“Treasury Regulations”
means the regulations promulgated under the Code, as amended from time to time (including any successor regulations).

 

“USFC” means
US FuelCell Corporation, a Delaware corporation.

 

“VWAP” means,
with respect to a given date, the volume weighted average price for a share of Parent Common Stock on the principal United States securities
exchange on which such security is traded (which is currently NASDAQ) during the thirty (30)-day period ending at 4:00 p.m. New York time
(or such other time as such exchange publicly announces is the official close of trading) on such date.

 

“Working Capital Escrow
Account” has the meaning set forth in Section 2.6(d)(i).

 

“Working Capital Escrow
Amount” means One Million Dollars ($1,000,000).

 

1.2.         Rules of Construction.

 

Unless the context
otherwise requires (a) a capitalized term has the meaning assigned to it, (b) an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP, (c) references in the singular or to “him,” “her,”
 “it,” “itself,” or other like references, and references in the plural or the feminine or masculine
reference, as the case may be, shall also, when the context so requires, be deemed to include the plural or singular, or the
masculine or feminine reference, as the case may be, (d) references to Articles, Sections and Exhibits shall refer to articles,
sections and exhibits of this Agreement, unless otherwise specified, (e) the headings in this Agreement are for convenience and
identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or
any provision thereof, (f) this Agreement shall be construed without regard to any presumption or other rule requiring construction
against the party that drafted and caused this Agreement to be drafted, (g) all monetary figures shall be in United States dollars
unless otherwise specified, (h) references to “including” in this Agreement shall mean “including, without
limitation,” whether or not so specified, and (i) the word “extent” in the phrase “to the extent”
shall mean the degree to which a subject or other theory extends and such phrase shall not mean “if.” The phrases
 “has provided,” “made available,” “delivered” “furnished to” or similar phrases used
in this Agreement mean that, for any document, the subject document was posted to the Office 365 OneDrive virtual data room
maintained by the Company prior to Closing and available to Parent and its Representatives in connection with transactions
contemplated by this Agreement prior to 5:00 p.m. Eastern Time at least two (2) Business Days prior to the date of this Agreement,
and remained accessible to the Parent and its Representatives from the time of posting through the Closing Date.

 

    - 23 -

     

    

 

ARTICLE II

The Merger

 

2.1.         Closing.

 

The closing of the Contemplated
Transactions (the “Closing”) will take place remotely via the electronic exchange of signature pages and closing deliverables
at 5:00 P.M. local time on the third (3rd) Business Day immediately following the day on which the last of the conditions set
forth in Article VI (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction
or waiver of those conditions) are satisfied or waived in accordance with this Agreement, or on such other date or at such other time
as Parent and the Stockholders’ Representative may otherwise agree. The day on which the Closing actually occurs is referred to
herein as the “Closing Date.”

 

2.2.         The Merger.

 

(a)           Upon the terms and subject to the conditions hereof, and in accordance with the DGCL, at the Effective Time, Merger Sub shall be
merged with and into the Company and the separate existence of Merger Sub shall thereupon cease, and the Company, as the corporation surviving
the Merger (the “Surviving Corporation”), shall by virtue of the Merger continue its corporate existence under the
laws of the State of Delaware.

 

(b)          The Merger shall become effective at the date and time (the “Effective Time”) when the certificate of merger
(the “Certificate of Merger”) shall have been duly executed and filed with the Secretary of State of the State of Delaware
in accordance with the DGCL, or at such other time as is specified in the Certificate of Merger in accordance with the DGCL, which Certificate
of Merger shall be filed on the Closing Date as soon as practicable following the Closing.

 

(c)           From
and after the Effective Time, the Merger shall have the effects set forth in Section 259(a) of the DGCL. Without limiting the generality
of the foregoing, and subject thereto, at the Effective Time, all the properties, rights, privileges, powers and franchises of the Company
and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities, and duties of the Company and Merger Sub shall become
debts, liabilities, obligations and duties of the Surviving Corporation. For the avoidance of doubt, all references herein to the Company
relating to the period following the Closing shall be deemed to refer to the Surviving Corporation.

 

    - 24 -

     

    

 

2.3.         Certificate
of Incorporation and Bylaws

 

At the Effective Time, the certificate
of incorporation and the bylaws of Merger Sub shall be the certificate of incorporation and the bylaws, respectively, of the Surviving
Corporation (except that the name of the corporation shall be the name of the Company) until thereafter amended in accordance with the
DGCL.

 

2.4.         Directors
and Officers.

 

Unless otherwise determined
by Parent prior to the Effective Time, at the Effective Time, the directors of the Company serving in such capacity immediately prior
to the Effective Time shall be the directors of the Surviving Corporation, until their respective successors are duly elected or appointed
and qualified. Unless otherwise determined by Parent prior to the Effective Time, at the Effective Time, the officers of the Company serving
in such capacity immediately prior to the Effective Time shall be the officers of the Surviving Corporation, until their respective successors
are duly elected or appointed and qualified.

 

2.5.         Conversion
of Shares.

 

(a)            At
the Effective Time, by virtue of the Merger and without any action on the part of any party, each share of common stock, par value $0.0001
per share, of Merger Sub (“Merger Sub Common Stock”), issued and outstanding immediately prior to the Effective Time,
shall be converted into one fully paid and nonassessable share of common stock, par value $0.0001 per share, of the Surviving Corporation.
As of the Effective Time, the shares of Merger Sub Common Stock shall no longer be outstanding and shall automatically be cancelled and
shall cease to exist, and the holder or holders of such shares shall cease to have any rights with respect thereto, except the right
to receive shares of common stock in the Surviving Corporation to be issued in consideration therefore as provided herein, without interest.
After the Effective Time, Parent shall be the holder of all of the issued and outstanding shares of the Surviving Corporation’s
common stock.

 

(b)           At
the Effective Time, by virtue of the Merger and without any action on the part of any party:

 

(i)              
each share of Common Stock issued and outstanding immediately prior to the Effective Time (other than shares that are Dissenting
Shares) shall be cancelled and extinguished and shall be converted automatically into the right to receive the Per Share Merger Consideration;
and

 

(ii)             
each share of Capital Stock that is authorized but unissued immediately prior to the Effective Time (including those held in the
treasury of the Company) shall be cancelled and extinguished.

 

    - 25 -

     

    

 

 

Each share of Capital Stock
to be converted into the right to receive the applicable Per Share Merger Consideration as provided in this Section 2.5(b) shall be automatically
cancelled and shall cease to exist, and the holders of Stock Certificates which immediately prior to the Effective Time represented such
Capital Stock shall cease to have any rights with respect to such Capital Stock other than the right to receive, upon surrender of such
Stock Certificates in accordance with Section 2.7, the applicable Per Share Merger Consideration.

 

(c)              
From and after the Effective Time, the stock transfer ledger of the Company shall be closed and there shall be no further registration
of transfers on the ledgers of the Surviving Corporation of any shares of Capital Stock. If, after the Effective Time, Stock Certificates
formerly representing shares of Capital Stock are presented to the Surviving Corporation or the Stockholders’ Representative, they
shall be surrendered and canceled as provided in this Article II.

 

2.6.           
Closing Consideration.

 

(a)              
The aggregate consideration to be received by the Stockholders in exchange for the Capital Stock at the Closing (the “Closing
Consideration”) shall be equal to (i) Fifty Million Dollars ($50,000,000), plus (ii) the Estimated Closing Cash, plus
(iii) the amount, if any, by which the Estimated Closing Net Working Capital exceeds the Target Net Working Capital, less (iv)
the amount, if any, by which the Estimated Closing Net Working Capital is less than the Target Net Working Capital, less (v) Estimated
Closing Indebtedness, less (vi) Estimated Closing Transaction Expenses, less (vii) the Indemnity Escrow Amount, payable in the form of
the Indemnity Escrow Shares deposited into the Indemnity Escrow Account at Closing, less (viii) the Working Capital Escrow Amount.
The Closing Consideration and Working Capital Escrow Amount shall each be paid in cash. The Indemnity Escrow Amount shall comprise the
Stock Consideration and be deposited into the Indemnity Escrow Account in the form of the Indemnity Escrow Shares.

 

(b)              
At least five (5) Business Days prior to the Closing, the Company shall deliver to Parent a statement, certified by the chief executive
officer of the Company, setting forth (i) the Company’s good faith estimates of Closing Net Working Capital (the “Estimated
Closing Net Working Capital”), Closing Cash (the “Estimated Closing Cash”), Closing Indebtedness (the “Estimated
Closing Indebtedness”), and Closing Transaction Expenses (the “Estimated Closing Transaction Expenses”),
together with reasonable supporting documentation, and (ii) a calculation of the Closing Consideration based upon such estimates. Parent
shall have the opportunity to review all materials and information used by the Company and their respective Representatives in preparing
such estimate and the Company shall make available such personnel as are reasonably necessary to assist Parent in its review of the Closing
Date Statement. Such statement, as and to the extent accepted by Parent in its good faith reasonable discretion, is referred to herein
as the “Closing Date Statement.”

 

(c)              
On the date that is five (5) days prior to the Closing, the Company shall deliver to Parent a statement (the “Allocation
Statement”) that sets forth a detailed breakdown of all amounts payable at the Closing pursuant to this Article II (and in accordance
with the terms of this Agreement), including:

 

(i)                
the names and addresses of each Stockholder;

 

    - 26 -

     

    

 

(ii)             
 the number of shares of Capital Stock held by each Stockholder as of immediately prior to the Effective Time;

 

(iii)           
the Fully Diluted Share Number;

 

(iv)            
the Per Share Closing Consideration;

 

(v)              
the share of each Stockholder, in percentage interest terms, of (x) the Indemnity Escrow Shares, (y) the Working Capital Escrow
Amount, and (z) any Shortfall Amount.

 

(vi)            
the Per Share Merger Consideration for each Stockholder.

 

The Allocation Statement shall
be subject to Parent’s review and approval and shall be certified by the chief executive officer of the Company on behalf of the
Company as the complete and accurate calculation of all amounts to be paid by Parent to payees pursuant to this Agreement.

 

(d)              
Upon the Effective Time, Parent shall:

 

(i)                
deliver, or cause to be delivered, to the Escrow Agent, by wire transfer of immediately available funds or as soon as practicable
after the Effective Time physical delivery of (as applicable), (A) the Indemnity Escrow Shares, which shall be held in a segregated account
administered by the Escrow Agent in accordance with this Agreement and the Escrow Agreement (the “Indemnity Escrow Account”)
in order to secure the obligations of the Stockholders pursuant to Article VIII and (B) the Working Capital Escrow Amount, in cash, which
shall be held in a segregated account administered by the Escrow Agent in accordance with this Agreement and the Escrow Agreement (the
 “Working Capital Escrow Account”) in order to secure the obligations of the Stockholders in respect of the post-Closing
purchase price adjustment set forth in Section 2.8 (Purchase Price Adjustment); and

 

(ii)             
deliver, or cause to be delivered, to the Stockholders’ Representative, by wire transfer of immediately available funds to
an account designated by the Stockholders’ Representative at least three (3) Business Days prior to the Closing Date, for further
distribution to the Stockholders in accordance with the Allocation Statement, an amount in cash equal to the Closing Consideration.

 

(e)               The
Merger Consideration delivered by or at the direction of Parent in exchange for the Stock Certificates in accordance with this
Article II shall be deemed to be full payment and satisfaction of all rights pertaining to all shares of Capital Stock. The parties
hereto acknowledge and agree that (i) the delivery to the Stockholders of the Merger Consideration pursuant to this Agreement
shall be administered by, and shall be the sole responsibility of, the Stockholders’ Representative upon delivery by or at the
direction of Parent to the Stockholders’ Representative, as applicable, of the Merger Consideration in accordance with the
terms of this Agreement, (ii) Parent shall be entitled to rely on the Allocation Statement in delivering Merger Consideration
under this Agreement and neither Parent nor the Surviving Corporation shall be responsible for the calculations or the
determinations regarding such calculations in the Allocation Statement, and (iii) after delivering, or causing to be delivered, the
Merger Consideration to the Stockholders’ Representative neither Parent, the Company, Merger Sub, the Surviving Corporation
nor any of their respective Affiliates shall have any liability to any Person for the allocation or distribution of the Merger
Consideration among the Stockholders.

 

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2.7.           
Mechanics of Exchange and Surrender.

 

(a)              
As soon as practicable after the date of this Agreement, the Stockholders’ Representative shall mail or cause to be mailed
to each Stockholder a letter of transmittal in form and substance acceptable to Parent and Stockholders’ Representative (the “Letter
of Transmittal”). Upon surrender of a Stock Certificate(s) (or affidavits of loss in lieu thereof in accordance with Section
2.7(b)) for cancellation to the Company (if prior to the Closing) or the Surviving Corporation (if after the Closing), or such other agent
or agents as may be appointed by Parent, together with a duly completed and validly executed Letter of Transmittal (or, if such surrender
occurs prior to the Closing, then upon the Closing), the holder of such Stock Certificate(s) shall be entitled to receive in exchange
therefor, the consideration to which such holder is entitled pursuant to Section 2.5(b) for each share of Capital Stock formerly represented
by such Stock Certificate(s), and the Stock Certificate(s) so surrendered shall be cancelled. Until so surrendered in accordance with
this Section 2.7, each outstanding Stock Certificate will be deemed for all corporate purposes to evidence only the right to receive the
amount of consideration into which such shares of Capital Stock shall be so exchanged. The Company or the Surviving Corporation, as applicable,
shall notify the Stockholders’ Representative promptly following the receipt of a Stock Certificate(s) (or affidavits of loss in
lieu thereof in accordance with Section 2.7(b)), together with a duly completed and validly executed Letter of Transmittal. The Stockholders’
Representative shall pay or deliver, as applicable, to the holder of each such Stock Certificate(s) (or affidavits of loss in lieu thereof
in accordance with Section 2.7(b)):

 

(i)                
promptly after the later to occur of (x) the Closing and (y) the Surviving Corporation’s receipt of such Stock Certificate(s)
(or affidavits of loss in lieu thereof), together with a duly completed and validly executed Letter of Transmittal, the aggregate amount
of Per Share Closing Consideration to which such holder is entitled pursuant to Section 2.5(b) and as set forth in the Allocation Statement;

 

(ii)             
promptly after the later to occur of (x) the Stockholders’ Representative’s receipt of the Shortfall Amount (if any)
pursuant to Section 2.8(c) and (y) the Surviving Corporation’s receipt of such Stock Certificate(s) (or affidavits of loss in lieu
thereof), together with a duly completed and validly executed Letter of Transmittal, the aggregate Per Share Shortfall Consideration to
which such holder is entitled pursuant to Section 2.5(b) and as set forth in the Allocation Statement;

 

(iii)           
promptly after the later to occur of (x) the Stockholders’ Representative’s receipt of any amounts released from the
Working Capital Escrow Account pursuant to Section 2.8(c) or Section 2.8(d) and (y) the Surviving Corporation’s receipt of such
Stock Certificate(s) (or affidavits of loss in lieu thereof), together with a duly completed and validly executed Letter of Transmittal,
the aggregate Per Share Working Capital Escrow Consideration to which such holder is entitled pursuant to Section 2.5(b) and as set forth
in the Allocation Statement;

 

    - 28 -

     

    

 

(iv)            
 promptly after the later to occur of (x) the Stockholders’ Representative’s receipt of shares of Parent Common Stock
in respect of the Indemnity Escrow Account pursuant to Section 8.3 and released in accordance with the Escrow Agreement and (y) the Surviving
Corporation’s receipt of such Stock Certificate(s) (or affidavits of loss in lieu thereof), together with a duly completed and validly
executed Letter of Transmittal, the aggregate Per Share Indemnity Escrow Consideration to which such holder is entitled pursuant to Section
2.5(b) and as set forth in the Allocation Statement; and

 

(b)              
In the event that any Stock Certificate shall have been lost, stolen or destroyed, in lieu of surrendering such Stock Certificate
in accordance with this Agreement, the Stockholder claiming such Stock Certificate to be lost, stolen, or destroyed shall execute and
deliver to Parent an affidavit of that fact, together with an indemnity agreement in form and substance reasonably satisfactory to Parent.

 

(c)              
Any portion of the Merger Consideration that remains unclaimed by the Stockholders six (6) months after such portion of the Merger
Consideration first becomes payable shall be promptly returned to Parent, and any such Stockholder who has not exchanged Stock Certificates
for the Merger Consideration in accordance with this Section 2.7 prior to that time shall thereafter look only to Parent for payment of
the applicable portion of the Merger Consideration as set forth in Section 2.5. Notwithstanding the foregoing, none of Parent, the Surviving
Corporation or the Stockholder Representative shall be liable to a holder of shares of Capital Stock for any amount properly paid to a
public official pursuant to any applicable abandoned property, escheat or similar Law. Any portion of the Merger Consideration remaining
unclaimed by Stockholders one (1) year after such Merger Consideration first becomes payable (or such earlier date, immediately prior
to such time when the amounts would otherwise escheat to or become property of any Governmental Authority) shall become, to the extent
permitted by applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto.

 

(d)              
If any portion of the Merger Consideration is to be paid to a Person other than the Person in whose name the surrendered Stock
Certificate is registered, it shall be a condition to such payment that (i) such Stock Certificate shall be properly endorsed or shall
otherwise be in proper form for transfer, and (ii) the Person requesting such payment shall pay to the Stockholders’ Representative
any transfer or other Tax required as a result of such payment to a Person other than the registered holder of such Stock Certificate
or establish to the reasonable satisfaction of the Stockholders’ Representative that such Tax has been paid or is not payable.

 

(e)              
Unless otherwise provided herein, no interest shall be paid or shall accrue on any consideration payable or deliverable upon delivery
of a Stock Certificate(s) (or affidavits of loss in lieu thereof), together with a duly completed and validly executed Letter of Transmittal.

 

2.8.           
Purchase Price Adjustment.

 

(a)               As
promptly as possible, but in any event within ninety (90) days after the Closing Date, Parent shall deliver to the
Stockholders’ Representative a statement (the “Preliminary Statement”) showing the calculation of (i) the
Closing Cash, Closing Net Working Capital, Closing Indebtedness, and Closing Transaction Expenses; and (ii) the Closing
Consideration substituting the Closing Cash, Closing Net Working Capital, Closing Indebtedness, and Closing Transaction Expenses as
set forth in the Preliminary Statement for the Estimated Closing Cash, Estimated Closing Net Working Capital, Estimated Closing
Indebtedness, and Estimated Closing Transaction Expenses as set forth in the Closing Date Statement, respectively (the
 “Final Closing Consideration”). Each of Parent and the Stockholders’ Representative shall provide the other
party and its Representatives with reasonable access to the books and records of the Company and relevant personnel and properties
during the preparation of the Preliminary Statement and the resolution of any disputes that may arise under this Section 2.8.

 

    - 29 -

     

    

 

(b)               If
the Stockholders’ Representative has any objections to the Preliminary Statement, the Stockholders’ Representative shall
deliver to Parent a statement setting forth its objections thereto in reasonable detail and with reasonable supporting documentation
(an “Objections Statement”). If an Objections Statement is not delivered to Parent within thirty (30) days after
delivery of the Preliminary Statement, the Preliminary Statement shall be final, binding and non-appealable by the parties
hereto. Any item or amount as to which no dispute is raised in the Objections Statement shall be final, binding and non-appealable
on the parties hereto, unless such item or amount is by its nature adjusted in connection with the matters raised in the Objections
Statement. The Stockholders’ Representative and Parent shall negotiate in good faith to resolve any objections set forth in an
Objections Statement, and any resolution agreed to in writing by the Stockholders’ Representative and Parent shall be final
and binding upon the parties. If the Stockholders’ Representative and Parent are unable to reach a resolution of all such
objections within fifteen (15) days after the delivery of the Objections Statement, the Stockholders’ Representative and
Parent shall submit such dispute to a jointly selected arbiter from a nationally recognized independent public accounting firm (the
 “Auditor”), who shall be appointed as an expert and not as an arbitrator. If the Stockholders’
Representative and Parent are unable to agree upon an Auditor, each party shall select a nationally recognized independent public
accounting firm and such chosen firms shall mutually agree upon a nationally recognized independent public accounting firm that
shall serve as the Auditor; provided, that such firm shall not be the independent auditor of (or otherwise serve as a
Consultant to) Parent, the Company, or any of their respective Affiliates. Each of the Stockholders’ Representative and Parent
shall furnish to the Auditor a statement setting forth its position with respect to each item or amount set forth in the Objections
Statement that remains unresolved following such fifteen (15)-day period (each, a “Disputed Line Item”), together
with such other information and documents as it deems relevant (each such party’s “Dispute Resolution
Submission”), with copies of such submission and all such documents and information being concurrently given to the other
party. The Auditor shall consider only the Disputed Line Items identified in the Dispute Resolution Submission. The Auditor’s
determination shall be based solely on (i) the definitions of Closing Cash, Closing Net Working Capital, Closing Indebtedness, and
Closing Transaction Expenses contained herein and (ii) the Dispute Resolution Submissions provided by the Parent and the
Stockholders’ Representative which are in accordance with the terms and procedures set forth in this Agreement (i.e., not on
the basis of an independent review). The Stockholders’ Representative and Parent shall use their commercially reasonable
efforts to cause the Auditor to resolve all disagreements as soon as practicable. The Auditor shall select as a resolution of all
such disagreements, in the aggregate, either the positions of Parent or the positions of the Stockholders’ Representative as
set forth in their respective Dispute Resolution Submissions based upon which party’s positions are closest to the
determinations of the Auditor. The resolution of all Disputed Line Items by the Auditor shall be final, binding and
non-appealable on the parties hereto. The costs and expenses of the Auditor shall be borne by the party whose Dispute Resolution
Submission was not selected by the Auditor for the resolution of all Disputed Line Items.

 

    - 30 -

     

    

 

(c)              
If the Closing Consideration as set forth in the Closing Date Statement is less than the Closing Consideration as set forth in
the Final Statement (such shortfall, the “Shortfall Amount”), then within two (2) Business Days following the Final
Determination Date (i) Parent shall deliver or cause to be delivered to the Stockholders’ Representative, for further distribution
to the Stockholders in accordance with Section 2.7(a)(ii) cash in an aggregate amount equal to the Shortfall Amount, and (ii) Parent and
the Stockholders’ Representative shall deliver joint written instructions to the Escrow Agent to disburse from the Working Capital
Escrow Account to the Stockholders’ Representative for further distribution to the Stockholders in accordance with Section 2.7(a)(iii)
an amount equal to the aggregate amount then remaining in the Working Capital Escrow Account.

 

(d)              
If the Closing Consideration as set forth in the Closing Date Statement is greater than the Closing Consideration as set forth
in the Final Statement (such excess, the “Excess Amount”), then Parent shall satisfy the Excess Amount (i) first, from
amounts then remaining in the Working Capital Escrow Account, (ii) second, to the extent that the Excess Amount exceeds the amounts then
remaining in the Working Capital Escrow Account, from amounts then remaining in the Indemnity Escrow Account, and (iii) thereafter, to
the extent that the Excess Amount exceeds the amounts then remaining in the Working Capital Escrow Account and the Indemnity Escrow Account,
then directly from the Stockholders on a joint and several basis; provided that Parent may (but shall not be obligated to) offset
any portion of the Excess Amount in excess of amounts remaining in the Working Capital Escrow Account against any shares of Parent Common
Stock issued to the Stockholders pursuant to this Agreement and held by such Stockholders at the time of such offset (it being understood
that such shares shall be valued for purposes of such offset at the VWAP as of the Final Determination Date). In the event that there
is an Excess Amount, within two (2) Business Days following the Final Determination Date (x) Parent and the Stockholders’ Representative
shall deliver joint written instructions to the Escrow Agent to disburse from the Working Capital Escrow Account (and the Indemnity Escrow
Account, if applicable) to Parent an amount equal to the Excess Amount or such lesser amount as then remains in the Working Capital Escrow
Account (and the Indemnity Escrow Account, if applicable) and (y) if, after disbursement to Parent of the Excess Amount in accordance
with this Section 2.8(d), any amount remains in the Working Capital Escrow Account, then Parent and the Stockholders’ Representative
shall deliver joint written instructions to the Escrow Agent to disburse from the Working Capital Escrow Account to the Stockholders’
Representative, as applicable, for further distribution to the Stockholders in accordance with Section 2.7(a)(iii) an amount equal to
the aggregate amount that so remains in the Working Capital Escrow Account.

 

(e)              
Notwithstanding anything herein to the contrary, the authority of the Auditor under this Section 2.8 shall be limited solely to
the resolution of the calculation of the Disputed Line Items, and all other disputes between the parties (including with respect to the
contractual interpretation of this Section 2.8) shall be resolved in accordance with Section 10.11.

 

    - 31 -

     

    

 

2.9.           
Dissenting Shares.

 

(a)              
 Notwithstanding any other provisions of this Agreement to the contrary, any shares of Capital Stock held by a holder who has properly
exercised his, her or its appraisal rights under the DGCL (“Dissenting Shares”) shall not be converted into or represent
a right to receive the consideration for Capital Stock as set forth in Section 2.5(b), but the holder thereof shall only be entitled to
such rights with respect to such Dissenting Shares as are provided by the DGCL.

 

(b)              
Notwithstanding the provisions of Section 2.9(a), if any holder of Dissenting Shares shall effectively withdraw or lose (through
failure to perfect or otherwise) such holder’s appraisal rights under the DGCL, then, as of the later of the Effective Time and
the occurrence of such withdrawal or loss, such holder’s shares of Capital Stock shall automatically be converted into and represent
only the right to receive the applicable consideration for such shares of Capital Stock as set forth in Section 2.5(b), without interest
thereon, upon surrender of the Stock Certificate representing such shares pursuant to the exchange procedures set forth in Section 2.7.

 

(c)              
During the period from the date hereof to the Closing Date, the Company shall give Parent (i) prompt notice of any notice or written
threat to demand appraisal under the DGCL or demand for appraisal under the DGCL received by the Company, and (ii) the opportunity to
participate in all negotiations and proceedings with respect to such demands. During such period, the Company shall not make any payment
with respect to any such demands, offer to settle or settle any such demands, or use in any offer of payment an estimate of fair value
in an amount greater than the applicable Per Share Merger Consideration otherwise payable to the holder demanding appraisal in accordance
with this Agreement, in each case, without Parent’s prior written consent, which may be granted or withheld in Parent’s sole
discretion.

 

(d)              
Notwithstanding anything in this Article II to the contrary, Parent shall not be obligated to pay or deliver, or cause to be paid
or delivered, to the Stockholders’ Representative any portion of the Merger Consideration in respect of any Dissenting Shares, and
any portion of the Merger Consideration paid or delivered to Stockholders’ Representative in respect of any Dissenting Shares shall
be promptly returned to Parent.

 

2.10.       
Growth Capital.

 

Parent shall make available
to the Company an aggregate amount of Twenty-Five Million Dollars ($25,000,000) (the “Growth Capital”) during the two
(2)-year period following the Closing Date. The Growth Capital shall be (i) contributed by Parent in accordance with such schedule as
may be mutually agreed between Parent, on the one hand, and the executive management team of the Company, on the other hand, provided
that suitable cash control procedures are in place according to public company requirements and (ii) used by the Company for working capital
purposes, to support working capital needs, facility improvements, headcount expansion, and for such other purposes as may be mutually
agreed between Parent, on the one hand, and the executive management team of the Company, on the other hand.

 

2.11.       
Substitution of Cash for Stock Consideration.

 

Notwithstanding anything
herein to the contrary, in the event that the issuance of any shares of Parent Common Stock pursuant to this Agreement would result
in Parent failing to comply with the rules, regulations and requirements of NASDAQ, Parent shall have the option, exercisable in its
sole discretion, to make payment of the subject Merger Consideration in the form of cash in lieu of such shares of Parent Common
Stock.

 

    - 32 -

     

    

 

2.12.       
Withholding.

 

(a)              
Notwithstanding anything to the contrary herein, the Parent, its Affiliates and any other
applicable withholding agent will be entitled to deduct and withhold from any amounts otherwise payable by it pursuant to this Agreement
to any Person such amounts as it reasonably determines may be required to deduct and withhold from such Person with respect to the making
of such payment under any provision of any Law. To the extent that amounts are properly deducted, withheld and remitted to the appropriate
Taxing Authority, such deducted, withheld and remitted amounts shall be treated for all purposes of this Agreement as having been paid
to such Person in respect of which such deduction, withholding and remittance was made. Prior to withholding any such amounts, Parent,
and its Affiliates shall provide at least three (3) Business Days’ notice and shall use commercially reasonable efforts to minimize
the amount of such withholding.

 

ARTICLE III

Representations and Warranties of the Company

 

Except as set forth in the
Company Disclosure Schedule (it being agreed that any matter disclosed in the Company Disclosure Schedule with respect to any section
of this Agreement shall be deemed to have been disclosed with respect to any other section to which such matter relates so long as the
relation of such matter to such other section is readily apparent from the description of such matter), the Company represents and warrants
to Parent and Merger Sub as of the date hereof and on and as of the Closing Date as follows:

 

3.1.           
Organization and Power.

 

Each Group Company is a corporation
duly incorporated or organized, validly existing and in good standing under the Laws of its jurisdiction of incorporation. The Company
has full power and authority to execute, deliver and perform this Agreement (as applicable) and the Ancillary Documents to which it is
a party and to consummate the Contemplated Transactions. Each Group Company has all power (corporate or otherwise) and authority necessary
to enable it to own or lease and to operate its properties and assets and carry on its business as currently and historically conducted,
except where the failure to possess such power and authority would not reasonably be expected to result in material Liability or otherwise
materially interfere with the conduct of the business of the Group Companies in the manner currently conducted. Each Group Company is
qualified or licensed to conduct its business in the jurisdiction(s) listed on Section 3.1 of the Company Disclosure Schedule. Each Group
Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased
by it or the operation of its business as currently conducted makes such licensing or qualification necessary.

 

    - 33 -

     

    

 

3.2.           
 Authorization and Enforceability.

 

The execution and delivery of
this Agreement (as applicable) and the Ancillary Documents to which the Company is a party and the performance by the Company of the Contemplated
Transactions that are required to be performed by the Company have been duly and validly authorized by all necessary corporate or other
action of the Company in accordance with applicable Law and the certificate of incorporation and bylaws of the Company, and no other corporate
or other actions on the part of the Company or any other Group Company are necessary to authorize the execution, delivery and performance
of this Agreement (as applicable) and the Ancillary Documents to which the Company is a party or the consummation of the Contemplated
Transactions that are required to be performed by the Company. This Agreement (as applicable) and each of the Ancillary Documents to be
executed and delivered at or prior to the Closing by the Company will be, at the Closing, duly and validly authorized, executed and delivered
by the Company and constitutes, or as of the Closing Date will constitute, valid and legally binding agreements of the Company enforceable
against the Company in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other Laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

 

3.3.           
Capitalization.

 

(a)              
The authorized capital stock of the Company consists solely of (i) three thousand (3,000) shares of Common Stock, of which one
hundred eleven (111) are issued and outstanding. The record owners of all of the issued and outstanding shares of Capital Stock are as
set forth on Section 3.3(a)(i) of the Company Disclosure Schedule. All issued and outstanding shares of Capital Stock are duly authorized,
have been validly issued and are fully paid and non-assessable, are owned beneficially and of record by the Stockholders, free and clear
of any Lien (other than those arising from applicable securities Laws) and free of any restriction on the right to vote, sell or otherwise
dispose of such shares of Capital Stock, and were not issued in violation of any preemptive or similar rights. Except as set forth on
Section 3.3(b) of the Company Disclosure Schedule and Section 3.3(c) of the Company Disclosure Schedule, there are no (x) outstanding
options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally
or in writing, to purchase or acquire from the Company any shares of Capital Stock, or any securities convertible into or exchangeable
for shares of Capital Stock or (y) agreements providing for any calls against, commitments by, or claims against the Company relating
to any shares of Capital Stock. Except as set forth on Section 3.3(a)(ii) of the Company Disclosure Schedule, the Company is not a party
to and there is not, and immediately after the Closing there will not be, any Contract, right of first refusal, right of first offer,
proxy, voting agreement, voting trust, registration rights agreement or stockholders agreement, whether or not the Company is a party
thereto, with respect to the purchase, sale or voting of any shares of Capital Stock or any other Equity Securities of the Company.
All of the shares of Capital Stock have been issued in compliance with all applicable Laws and the organizational documents of the Company.

 

(b)               The
Company does not maintain any equity incentive plan or other plan providing for equity compensation of any Person. The Company does
not maintain any stock option plan and has not reserved any shares of Common Stock for issuance to officers, directors, employees
and consultants of the Company. The Company has furnished to Parent complete and accurate copies of any stock purchase
agreements.

 

    - 34 -

     

    

 

(c)              
Section 3.3(c) of the Company Disclosure Schedule sets forth a true and correct list of each Group Company (other than the Company),
listing for each such Group Company its name, its jurisdiction of incorporation, its authorized capital stock or other Equity Securities,
the number and type of its issued and outstanding shares of capital stock or other Equity Securities and the current record and beneficial
ownership of such shares and/or other Equity Securities. Other than the Persons listed on Section 3.3(c) of the Company Disclosure Schedule,
there are no other corporations, partnerships, joint ventures, associations or other similar entities in which any Group Company owns,
of record or beneficially, any direct or indirect equity or other similar interest or voting interest or any right (contingent or otherwise)
to acquire the same. All issued and outstanding shares of the capital stock of each Group Company (other than the Company) are duly authorized,
have been validly issued and are fully paid and non-assessable, are owned beneficially and of record by the Persons indicated as the beneficial
owners thereof on Section 3.3(c) of the Company Disclosure Schedule, free and clear of any Lien (other than those arising from applicable
securities Laws) and free of any restriction on the right to vote, sell or otherwise dispose of such shares of Capital Stock, and were
not issued in violation of any preemptive or similar rights. No Person has preemptive or similar rights with respect to any capital stock
or other Equity Securities of such Group Company, and there are no agreements providing for the issuance (contingent or otherwise) of,
or any calls against, commitments by, or claims against such Group Company relating to, any shares of capital stock of such Group Company.
Other than as listed on Section 3.3(c) of the Company Disclosure Schedule, such Group Company is not a party to and there is not, and
immediately after the Closing there will not be, any Contract, right of first refusal, right of first offer, proxy, voting agreement,
voting trust, registration rights agreement or stockholders agreement, whether or not such Group Company is a party thereto, with respect
to the purchase, sale or voting of any shares of capital stock or any other Equity Securities of such Group Company. All of the capital
stock and other Equity Securities of each Group Company (other than the Company) have been issued in compliance with all applicable Laws.

 

3.4.           
No Violation.

 

Except as set forth on
Section 3.4 of the Company Disclosure Schedule, the execution and delivery by the Company of this Agreement and the Ancillary
Documents to which the Company is a party, consummation of the Contemplated Transactions that are required to be performed by the
Company and compliance with the terms of this Agreement (as applicable) and the Ancillary Documents to which the Company is a party
will not (a) conflict with or violate any provision of the certificate of incorporation, bylaws or similar organizational documents
of any Group Company, (b) result in any violation of or default, give rise to a right of termination, cause the forfeiture of any
right, or require any notice or consent, under (with or without notice or lapse of time or both) any provision of any Contract to
which a Group Company is a party or by which a Group Company or its properties are bound or affected, (c) assuming that all
consents, approvals and authorizations contemplated by Section 3.5 have been obtained and all filings described therein have been
made, conflict with or violate any Law applicable to a Group Company or by which its or any of its properties are bound or affected,
or (d) result in the creation of, or require the creation of, any Lien upon any shares of capital stock or any property of a Group
Company, except, with respect to clauses (b)-(d), as would not reasonably be expected to result in material Liability or otherwise
materially interfere with the conduct of the business of a Group Company in the manner currently conducted.

 

    - 35 -

     

    

 

3.5.           
Governmental Authorizations and Consents.

 

Except as set forth in Section
3.5 of the Company Disclosure Schedules, no consents, licenses, approvals or authorizations of, or registrations, declarations or filings
with, any Governmental Authority (“Governmental Consents”) are required to be obtained or made by any Group Company
in connection with the execution, delivery, performance, validity and enforceability of this Agreement or any Ancillary Documents or the
consummation by the Company of the Contemplated Transactions.

 

3.6.           
Financial Statements.

 

(a)              
Section 3.6(a) of the Company Disclosure Schedule sets forth the following financial statements (the “Financial Statements”):
(i) the unaudited, internally prepared balance sheet of the Company as of December 31, 2020, and the related statements of income,
and cash flows for the year ending December 31, 2020 (the “Most Recent Annual Financial Statements”), (ii) the unaudited,
internally prepared balance sheet of the Company as of December 31, 2019, and the related statements of income and cash flows, for the
year ending December 31, 2019, (iii) the unaudited, internally prepared consolidated balance sheet of the Company as of March 31, 2021
(the “Balance Sheet Date”), and the related unaudited, internally prepared statements of income and cash flows, respectively,
for the three (3)-month period ended on such date (the “Most Recent Unaudited Financial Statements”). Each of the Financial
Statements has been prepared in accordance with the Company’s Accounting Principles applied on a basis consistent with prior periods
and fairly presents in all material respects the financial condition of the Company as of its respective date and the consolidated results
of operations, as the case may be, of the Company for the period covered thereby.

 

(b)              
The financial books and records of the Company have been maintained in accordance with customary business practices of Persons
similarly situated to the Company and fairly and accurately reflect, in all material respects, on a basis consistent with past periods
and throughout the periods involved, (i) the consolidated financial position of the Company and (ii) all transactions of the Company,
including all transactions between the Company and a Stockholder. The Company has not received any advice or notification from its independent
accountants that it has used any improper accounting practice that would have the effect of not reflecting or incorrectly reflecting in
the books and records of the Company any properties, assets, liabilities, revenues, expenses, equity accounts or other accounts.

 

(c)              
No Group Company has any material Liabilities (whether or not the subject of any other representation or warranty hereunder), except
for Liabilities (i) reflected in the Most Recent Unaudited Financial Statements, (ii) set forth in Section 3.6(c) of the Company Disclosure
Schedule, (iii) incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date, or (iv) incurred
under this Agreement and the Ancillary Documents or in connection with the Contemplated Transactions.

 

    - 36 -

     

    

 

3.7.           
 Absence of Certain Changes.

 

(a)              
Except as set forth in Section 3.7 of the Company Disclosure Schedule or as reflected on the Most Recent Unaudited Financial Statements,
since the Balance Sheet Date, the Company has conducted its business and each other Group Company has, to the Knowledge of the Company,
conducted its business in the ordinary course and in a manner consistent with past practice, and there has not been any Event, individually
or together with any other Event, that has had, or would be reasonably expected to have, either individually or in the aggregate, a Material
Adverse Effect on the Group Companies. Without limiting the generality of the foregoing, except as set forth in Section 3.7 of the Company
Disclosure Schedule, as reflected on the Most Recent Unaudited Financial Statements, or as expressly contemplated by this Agreement, since
the Balance Sheet Date, the Company has not and, to the Knowledge of the Company, the other Group Companies have not:

 

(i)                
acquired, sold, leased, abandoned, allowed to lapse, licensed, transferred, mortgaged or assigned any material assets, tangible
or intangible, other than sales of goods or services in the ordinary course of business consistent with past practice;

 

(ii)             
written down of the value of any personal property or other assets owned or used by a Group Company, including inventory and capital
lease assets, except on account of depreciation and amortization in the ordinary course of business;

 

(iii)           
incurred, assumed, guaranteed or discharged any Liability, including any Indebtedness or mortgages, or otherwise created or permitted
to exist any Lien (other than Permitted Liens) on any of their respective assets, other than (except in the case of Indebtedness) in the
ordinary course of business consistent with past practice;

 

(iv)            
cancelled any material debts or claims owed to a Group Company or amended, terminated, compromised, released, or waived any material
rights or claims of a Group Company;

 

(v)              
acquired or sold, assigned, transferred, terminated, disposed of, or licensed from or to any Person, any Intellectual Property
other than in the ordinary course of business;

 

(vi)            
changed or modified any of the credit, collection or payment policies, procedures or practices of a Group Company, including accelerating
collections of receivables, failing to collect or delaying collection of receivables, accelerating payment of payables or other Liabilities
or failing to pay or delaying payment of payables or other Liabilities;

 

(vii)         
canceled, compromised, knowingly waived or released any right, claim or account receivable involving amounts that exceed Twenty-Five
Thousand Dollars ($25,000) in the aggregate;

 

(viii)       
canceled, compromised, knowingly waived or released any right or claim (or series of related rights and claims) under Material
Contracts or Intellectual Property;

 

    - 37 -

     

    

 

(ix)            
 committed to make any capital expenditure (or series of related capital expenditures) involving amounts that exceed One Hundred
Thousand Dollars ($100,000) in the aggregate;

 

(x)              
suffered any damages to or destruction or other casualty loss of any tangible assets (whether or not covered by insurance), involving
amounts that exceed One Hundred Thousand Dollars ($100,000) in the aggregate;

 

(xi)            
modified any of their respective certificates of incorporation, bylaws or similar organizational documents;

 

(xii)         
issued, sold or otherwise permitted to become outstanding any shares of their respective capital stock, bonds, options or other
securities of any type whatsoever of any Group Company, or split, combined, reclassified, repurchased or redeemed any such shares;

 

(xiii)       
declared, set aside or paid any cash or non-cash dividend or made any cash or non-cash distribution in respect of any Equity Securities
of the Group Companies;

 

(xiv)        
made any capital investment in, any loan to, or any acquisition of the securities or assets of any other Person other than acquisitions
of inventory and supplies in the ordinary course of business consistent with past practice;

 

(xv)          
failed to maintain in full force and effect insurance policies on their respective properties providing coverage and amounts of
coverage comparable to the coverage and amounts of coverage provided under their policies of insurance in effect on the Balance Sheet
Date;

 

(xvi)        
made any change in the rate of compensation, commission, bonus or other direct or indirect remuneration payable, or agreed to pay,
conditionally or otherwise, any bonus, incentive, retention or other compensation, any change in control payment, retirement, welfare,
fringe or severance benefit or vacation pay, to or in respect of any employee, other than increases and payments in the ordinary course
of business and in a manner consistent with past practice in the compensation payable to employees (none of whom is a director or officer
of the Group Companies);

 

(xvii)     
materially modified or changed any of their respective business organizations or materially and adversely modified or changed their
respective relationships with its suppliers, customers and others having business relations with them;

 

(xviii)   
except as otherwise required by Law, entered into, amended, modified, varied, altered or otherwise changed any of the Plans;

 

(xix)        
entered into, modified, terminated, waived, amended or otherwise altered the terms or provisions of any Material Contract outside
the ordinary course of business;

 

(xx)          
settled or compromised any action, suit or proceeding by or against a Group Company;

 

    - 38 -

     

    

 

(xxi)        
 abandoned, permitted to lapse or failed to maintain in full force and effect any Company Intellectual Property, or failed to take
or maintain reasonable measures to protect the confidentiality of any Intellectual Property used by or for the Group Companies in conducting
their respective businesses;

 

(xxii)     
made, revoked or changed any Tax election, changed any annual Tax accounting period, changed any method of Tax accounting, entered
into any closing agreement with respect to any Tax, settlement, concession, compromise or abandonment of any Tax claim or assessment or
surrendered any right to claim a Tax refund, filed any amended Tax Return, or consented to any extension or waiver of the limitation period
applicable to any Tax claim or assessment;

 

(xxiii)   
adopted a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization,
or other material reorganization; or

 

(xxiv)    
authorized, agreed, resolved or committed to any of the foregoing.

 

3.8.           
Relationships with Affiliates.

 

(a)              
Except as set forth in Section 3.8 of the Company Disclosure Schedule, no officer, director, Stockholder or any Affiliate of any
of the foregoing (a) has any interest in any property (real, personal, or mixed and whether tangible or intangible), used in or pertaining
to the businesses of the Group Companies as currently conducted or contemplated to be conducted, (b) except for the ownership of
less than two percent (2%) of the outstanding common stock of a publicly-held corporation, owns of record or as a beneficial owner, has
any equity interest, or has any other financial or profit interest in a Person that has had business dealings or a material financial
interest in any transaction with the Group Companies or (c) is a party to any Contract (except for employment agreements) with the
Group Companies, including with respect to compensation or remuneration to be paid to such officer, director, Stockholder or Affiliate
in connection with this Agreement or the Contemplated Transactions (each, an “Affiliate Agreement”).

 

(b)              
Immediately after the Closing, the Company will have no Affiliate Agreements except as set forth in Section 3.8(b) of the Company
Disclosure Schedule.

 

(c)              
No Affiliate of the Company (including, without limitation, Magmotors Technologies) is a competitor of the Company or engaged in
the same or substantially the same line of business as the Company.

 

3.9.           
Indebtedness to and from Officers and Directors of the Group Companies.

 

Except as set forth in
Section 3.9 of the Company Disclosure Schedule, (a) the Company is not and, to the Knowledge of the Company, the other Group
Companies are not indebted, directly or indirectly, to any Person who is a Stockholder, officer or director of a Group Company, or
any Affiliate thereof (other than another Group Company) in any amount whatsoever, other than for salaries for services rendered or
reimbursable business expenses, and (b) no such Stockholder, officer, director, or Affiliate is indebted to the Company or, to the
Knowledge of the Company, the other Group Companies, except for advances made to employees of the Group Companies in the ordinary
course of business consistent with past practice to meet reimbursable business expenses reasonably anticipated to be incurred by
such obligor.

 

    - 39 -

     

    

 

 

3.10.       
Assets.

 

(a)              
The assets and rights of the Company and, to the Knowledge of the Company, the other Group Companies, include all of the assets
and rights of the Company and, to the Knowledge of the Company, the other Group Companies which were used in the conduct of its business
as conducted as of the Balance Sheet Date, subject to such changes as have occurred in the ordinary course of business consistent with
past practice or that are otherwise permitted by this Agreement since such date. All of such assets necessary for the conduct of the business
of the Company and, to the Knowledge of the Company, the other Group Companies, are in normal operating condition and repair, ordinary
wear and tear excepted.

 

(b)              
The Company has and, to the Knowledge of the Company, the other Group Companies have, good and marketable title to, or valid leasehold
interests in, all of the tangible and intangible assets and personal property shown to be owned or leased by them, with respect to the
Company and, to the Knowledge of the Company, the other Group Companies, on the Most Recent Unaudited Financial Statements or acquired
thereafter, free and clear of any Lien, except for (i) assets disposed of since such date in the ordinary course of business consistent
with past practice or otherwise permitted by this Agreement, (ii) Liens reflected in the Financial Statements or the notes thereto,
(iii) assets validly leased from third parties, and (iv) Permitted Liens. Such assets and personal property constitute all of
the assets and properties necessary to conduct the business of the Company and, to the Knowledge of the Company, the other Group Companies
immediately following the Closing in substantially the manner conducted immediately prior to the Closing.

 

3.11.       
Real Property.

 

Section 3.11 of the
Company Disclosure Schedule includes a true and complete list of all real property leases, subleases, or other occupancies used by
the Company or to which the Company is a party as lessee or lessor (the “Real Property Leases,” and the
properties leased thereunder, the “Leased Real Property”). To the Knowledge of the Company, no Group Company
other than the Company leases any real property. No Person other than the Company has any right to use, occupy or lease any of the
Leased Real Property and no Leased Real Property is occupied by a Person other than the Company. The leasehold interests relating to
the Real Property Leases are free and clear of all Liens, other than Permitted Liens. No waiver, indulgence or postponement of any
of the Company’s obligations, as lessee, has been granted by any owner or lessor of the Leased Real Property. The Company has
not received any written notice from the other party to any Real Property Lease of the termination or proposed termination thereof.
The Company is not, and, to the Knowledge of the Company, no other Person, including the other Group Companies, is, in violation of
a condition or agreement contained in any easement, restrictive covenant or any similar instrument or agreement affecting the Leased
Real Property in any material respect. Other than the Real Property Leases, there are no agreements or arrangements whatsoever
relating to the Company’s use or occupancy of any of the Leased Real Property. The Company has not transferred, mortgaged or
assigned any interest in any of the Leased Real Property or the Real 8Property Leases. There is no pending or, to the Knowledge of
the Company, threatened condemnation or similar proceeding affecting any Leased Real Property or any portion thereof. All Leased
Real Property is supplied with utilities and other services sufficient to operate the business of the Company as presently conducted
and neither the operations of the Company on the Leased Real Property nor, to the Knowledge of the Company, the Leased Real Property
itself, violate in any material manner any applicable building code, zoning requirement, or classification or statute relating to
the particular property or such operations. The Leased Real Property is in good operating condition and repair and is suitable for
the conduct of business as presently conducted therein. The Company and, to the Knowledge of the Company, the other Group Companies
do not own any real property.

 

    - 40 -

     

    

 

3.12.       
Intellectual Property.

 

(a)              
Section 3.12(a) of the Company Disclosure Schedule includes a true and complete list of: (i) all Company Intellectual Property
that is subject to any issuance, registration, or application by or with any Governmental Authority or authorized private registrar in
any jurisdiction (collectively, “Intellectual Property Registrations”), including issued Patents, registered Trademarks,
domain names, and Copyrights, and pending applications for any of the foregoing, and specifying as to each, as applicable: the title,
mark, or design; the record owner and inventor(s), if any; the jurisdiction by or in which it has been issued, registered, or filed; the
patent, registration, or application serial number; the issue, registration, or filing date; and the current status; (ii) all unregistered
Trademarks included in the Company Intellectual Property; and (iii) all Company Products or other Software of the Group Companies. No
Company Intellectual Property has been opposed, cancelled, held unenforceable or otherwise challenged, and no Litigation is pending, or
to the Knowledge of the Company, threatened in relation to any Company Intellectual Property. All Company Intellectual Property is valid,
subsisting and enforceable and in full force and effect. Each of the Intellectual Property Registrations is duly registered or filed in
the name of a Group Company. All assignments and other instruments necessary to establish, record, and perfect the Group Companies’
ownership interest in the Intellectual Property Registrations have been validly executed, delivered, and filed with the relevant Governmental
Authorities and authorized registrars. All required filings and fees related to the Intellectual Property Registrations have been timely
submitted with and paid to the relevant Governmental Authorities and authorized registrars. The Company has provided Parent with true
and complete copies of all file histories, documents, certificates, correspondence, assignments, and other instruments relating to the
Intellectual Property Registrations.

 

(b)               The
Group Companies collectively are the sole and exclusive legal and beneficial, and with respect to the Intellectual Property
Registrations, record, owner of all right, title, and interest in and to the Company Intellectual Property, and has the valid and
enforceable right to use all other Intellectual Property used or held for use in or necessary for the conduct of the business of the
Group Companies as currently conducted, in each case, free and clear of all Liens other than Permitted Liens. Except as set forth in
Section 3.12(b) of the Company Disclosure Schedule, there is no Litigation (including any opposition, cancellation, revocation,
review, post grant reviews or other proceeding) pending or, to the Knowledge of the Company, threatened challenging the validity,
enforceability, registrability, patentability, or ownership of any Company Intellectual Property or the Group Companies’
right, title, or interest in or to any Company Intellectual Property. No Group Company is subject to any outstanding or prospective
Order (including any motion or petition therefor) that does or would reasonably be expected to restrict or impair the ownership or
use of any Company Intellectual Property or Licensed Intellectual Property, and no Group Company is aware of any facts or
circumstances that could reasonably be expected to give rise to any such Litigation.

 

    - 41 -

     

    

 

(c)              
Section 3.12(c) of the Company Disclosure Schedule is a true and complete list of all licenses, sublicenses and other agreements
as to which the Group Companies are a party and pursuant to which the Group Companies have acquired or is authorized to use any Intellectual
Property (other than those comprising or reflected in Commercial Software), and except as set forth in Section 3.12(c) of the Company
Disclosure Schedule, the Group Companies are not obligated to make any payment or grant any rights to any third party in respect of Intellectual
Property used by the Group Companies or in connection with the business of the Group Companies as currently conducted (other than those
comprising or reflected in Commercial Software).

 

(d)              
Except as set forth in Section 3.12(d) of the Company Disclosure Schedule or pursuant to a license agreement entered into with
a Group Company in the ordinary course of business, no Person (other than the Group Companies) has an interest in or any right to use
any of the Company Intellectual Property. Except as set forth in Section 3.12(d) of the Company Disclosure Schedule, to the Knowledge
of the Company, there has not been, and there is not now, any unauthorized use, infringement or misappropriation by any third party, including
by any employee or former employee of the Group Companies, of any of the Company Intellectual Property. No stockholder, director, officer
or employee of, or Consultant to, the Group Companies has any right to use, other than in connection with the business activities of the
Group Companies as presently conducted, any of the Company Intellectual Property.

 

(e)              
The operation of the business of the Group Companies as currently and formerly conducted, including the use of the Company Intellectual
Property and Licensed Intellectual Property in connection therewith, does not and has not misappropriated, infringed or otherwise violated
in any respect the Intellectual Property or other rights of any Person. Except as set forth in Section 3.12(e) of the Company Disclosure
Schedule, there is no Litigation (including any opposition, cancellation, revocation, review, post grant review or other proceeding) pending
or, to the Knowledge of the Company, threatened alleging any misappropriation, infringement, or other violation by the Group Companies
of the Intellectual Property of any Person, and no Group Company is aware of any facts or circumstances that could reasonably be expected
to give rise to any such Litigation.

 

(f)               
The Group Companies have taken all reasonable precautions to protect the secrecy, confidentiality and value of all Trade Secrets
included in the Company Intellectual Property and Licensed Intellectual Property, including by requiring all Persons having access thereto
to execute binding, written non-disclosure agreements. Such Trade Secrets are not part of the public knowledge or literature, and have
not been used, divulged or appropriated either for the benefit of any Person (other than the Group Companies) or to the detriment of the
Group Companies.

 

    - 42 -

     

    

 

(g)               The
Group Companies have entered into binding, valid and enforceable, written Contracts with each current and former Personnel and
independent contractor who is or was involved in or has contributed to the invention, creation, or development of any Intellectual
Property during the course of employment or engagement with the Group Companies whereby such Personnel or independent contractor (i)
acknowledges the applicable Group Company’s exclusive ownership of all Intellectual Property invented, created, or developed
by such employee or independent contractor within the scope of his or her employment or engagement with the Group Companies; (ii)
grants to the applicable Group Company a present, irrevocable assignment of any ownership interest such employee or independent
contractor may have in or to such Intellectual Property; and (iii) irrevocably waives any right or interest, including any moral
rights, regarding any such Intellectual Property, to the extent permitted by applicable Law. The Company has provided Parent with
true and complete copies of all such Contracts.

 

(h)              
Neither the execution, delivery, or performance of this Agreement, nor the consummation of the Contemplated Transactions, will
result in the loss or impairment of, or require the consent of any other Person in respect of, the Group Companies’ right to own
or use any Company Intellectual Property or Licensed Intellectual Property.

 

(i)                
All Group Companies’ IT Systems are in good working condition and are sufficient for the operation of the Group Companies’
business as currently conducted. There have been no unauthorized intrusions or breaches of security, malfunctions, failures, breakdowns,
continued substandard performance, denials-of-service, or other cyber incidents, including any cyberattacks, or other similar adverse
events affecting the Company IT Systems. The Group Companies use commercially reasonable efforts (and requires its third-party contractors)
to protect the confidentiality, availability, integrity and security of Company IT Systems, including with respect to unauthorized use,
access, interruption or modification by third parties. The Group Companies have taken commercially reasonable steps to safeguard the confidentiality,
availability, security, and integrity of the Company IT Systems, including implementing and maintaining appropriate backup, disaster recovery,
and Software and hardware support arrangements for the Company IT systems.

 

(j)                
The Group Companies are in actual possession of and have exclusive control over a complete and correct copy of the source code
for all proprietary components of the Company Products, including all previous major releases and all other proprietary Software of the
Group Companies. The Group Companies have not disclosed, delivered, licensed, or otherwise made available, and do not have a duty or obligation
(whether present, contingent, or otherwise) to disclose, deliver, license, or otherwise make available, any source code for any Company
Product to any escrow agent or any other Person, other than an employee, independent contractor, or consultant of the Group Companies
pursuant to a valid and enforceable written agreement prohibiting use or disclosure except in the performance of services for the Group
Companies. Without limiting the foregoing, neither the execution of this Agreement nor the consummation of any of the Contemplated Transactions
will, or would reasonably be expected to, result in the release from escrow or other delivery to any Person of any source code for any
Company Product. There has been no unauthorized theft, reverse engineering, decompiling, disassembling, or other unauthorized disclosure
of or access to any source code for any Company Product.

 

    - 43 -

     

    

 

(k)               Section
3.12(k) of the Company Disclosure Schedule sets forth a correct, current, and complete list of each item of Open Source Software
that is or has been used by the Group Companies in the development of or incorporated into, combined with, linked with, distributed
with, provided to any Person as a service, provided via a network as a service or application, or otherwise made available with, any
Company Product, and for each such item of Open Source Software, (i) the applicable Company Product and (ii) the name and version
number of the applicable license agreement. The Group Companies have complied with all notice, attribution, and other requirements
of each license applicable to the Open Source Software disclosed in Section 3.12(k) of the Company Disclosure Schedule. The Group
Companies have not used any Open Source Software in a manner that does, will, or would reasonably be expected to require the (x)
disclosure or distribution of any Company Product or any other proprietary Software in source code form; (y) license or other
provision of any Company Product or any other proprietary Software on a royalty-free basis; or (z) grant of any patent license,
non-assertion covenant, or other rights under any Company Intellectual Property or rights to modify, make derivative works based on,
decompile, disassemble, or reverse engineer any Company Product or any other proprietary Software.

 

(l)                
All Company Products (i) comply with all applicable Laws and industry standards, including with respect to security; and (ii) conform
to all applicable contractual commitments, express and implied warranties (to the extent not subject to legally effective express exclusions
thereof), representations and claims in packaging, labeling, advertising, and marketing materials, and applicable specifications, user
manuals, training materials, and other documentation. No Company Product contains any bug, defect, or error that materially adversely
affects, or could reasonably be expected to materially adversely affect, the value, functionality, or performance of such Company Product.
None of the Company Products contain any “time bomb,” “Trojan horse,” “back door,” “worm,”
virus, malware, spyware, or other device or code (“Malicious Code”) designed or intended to, or that would reasonably
be expected to, (x) disrupt, disable, harm, or otherwise impair the normal and authorized operation of, or provide unauthorized access
to, any computer system, hardware, firmware, network, or device on which any Company Product is installed, stored, or used; or (y) damage,
destroy, or prevent the access to or use of any data or file without the user’s consent, except, for the avoidance of doubt, license
keys and other code intended to limit access to or use of such Company Product to an authorized user. The Group Companies have taken all
reasonable steps to prevent the introduction of Malicious Code into the Company Products.

 

(m)             Section
3.12(m) of the Company Disclosure Schedule accurately describes the type of Personally Identifiable Information and Customer Data
collected (and the process by which such information is collected) by the Group Companies through internet websites, mobile
applications and online services owned, maintained or operated by or on behalf of the Group Companies (collectively, the
 “Company Sites”), and through any Company Products or any other method, including the types of Personally
Identifiable Information and Customer Data, and the method of collection for each. The Group Companies have at all times complied in
all material respects with all applicable Laws, contractual obligations, requirements of self-regulatory organizations binding upon
the Group Companies, consumer-facing statements of the Group Companies in any marketing or promotional materials and each Privacy
Policy relating to (i) the privacy of users of Company Sites or Company Products, (ii) the past and present collection, use,
storage, transfer, retention, dissemination, disposal and any other processing of any Personally Identifiable Information and
Customer Data collected or used by the Group Companies in any manner or maintained by third Persons having authorized access to such
information, or (iii) the transmission of unsolicited communications (collectively, the “Privacy and Security
Requirements”). No Group Company has received any written notice from any Governmental Authority that it is under
investigation by any Governmental Authority for a violation of any Privacy and Security Requirements or applicable Laws. The Company
has made available to Parent complete and accurate copies of all written complaints or notices delivered to the Group Companies
during the past twelve (12) months alleging or providing notice of a violation of any Privacy and Security Requirement. All
electronic addresses acquired, maintained, updated (including operationalizing opt-out requests) and stored by or on behalf of the
Group Companies, and all electronic messages sent and/or delivered by or on behalf of the Group Companies have been acquired,
maintained, updated, stored, sent and/or delivered, as may be required by and in accordance in all material respects with all
applicable Laws, including but not limited to all Laws relating to the delivering, sending, sharing or transmitting of electronic or
telephonic messages, and/or using electronic addresses. Prior to the installation of any computer program (including without
limitation computer programs that have been caused to be installed by the Group Companies) on a third party’s computer system
or device, and prior to any electronic message being sent from such computer system or device, requisite consent to the installation
of such computer program and all transmissions of electronic messages has been obtained from the owner or authorized user of such
computer system or device.

 

    - 44 -

     

    

 

(n)              
The Group Companies have at all times taken commercially reasonable steps (including implementing and monitoring compliance with
reasonable measures with respect to technical and physical security) consistent in all material respects with requirements of applicable
Laws or contractual obligations to protect the confidentiality, availability, security and integrity of the Group Companies’ data,
information technology assets and all Personally Identifiable Information and Customer Data within the control of the Group Companies
(collectively, the “Company Data”). Such steps and procedures comply in all material respects with all Privacy and
Security Requirements and all applicable Laws relating to the security of the Company Data. This includes, but is not limited to, the
Group Companies having implemented, maintained, and monitored reasonable measures with respect to technical, administrative, and physical
security designed to preserve and protect the confidentiality, availability, security, and integrity of all Company Data (including such
measures designed to protect the foregoing from infection by Malicious Code, access by unauthorized Persons or access by authorized Persons
that exceeds the Person’s authorization). There is no, nor has there ever been, any complaint to, or to the Knowledge of the Company,
any audit, proceeding or investigation (formal or information), or any claim against, any Group Company or any of its end-users or customers,
initiated by a private Person or any Governmental Authority with respect to the security, confidentiality, transmission, availability,
or integrity of any Company Data. To the Knowledge of the Company, there has been no material unauthorized access to or acquisition of
the Company Data or Company Intellectual Property.

 

(o)              
Except as set forth on Section 3.13(o) of the Company Disclosure Schedule, there are no Contracts providing for (i) royalties or
license fees payable to third parties with respect to Company Intellectual Property, Licensed Intellectual Property or Company Products,
(ii) agreements to share or jointly own Company Intellectual Property, or (iii) limitations on the Company’s ability to commercialize,
or patent (as applicable) any Company Intellectual Property, Licensed Intellectual Property or Company Products.

 

    - 45 -

     

    

 

3.13.       
 Contracts.

 

(a)              
Material Contracts. Section 3.13(a) of the Company Disclosure Schedule is a true and complete list, as of the date
hereof, of all of the following Contracts to which the Company and, to the Knowledge of the Company, the other Group Companies is a party
or by which it or its assets or properties are bound (the “Material Contracts”):

 

(i)             
Contracts evidencing or relating to Indebtedness;

 

(ii)            
Contracts evidencing or relating to any obligations of a Group Company with respect to the issuance, sale, repurchase or redemption
of any Equity Securities of such Group Company;

 

(iii)           
Contracts with any customers of, or suppliers to, the Group Companies which involved aggregate payments to or from the Group Companies
in the most recent twelve (12)-month period of in excess of Fifty Thousand Dollars ($50,000);

 

(iv)           
all Real Property Leases;

 

(v)            
all Company Employment Contracts;

 

(vi)          
Contracts providing for the indemnification of any current or former director, officer, manager or employee of any Group Company;

 

(vii)         
collective bargaining agreements or other Contracts with any labor unions or associations representing employees;

 

(viii)       
Contracts evidencing partnerships, joint ventures, limited liability companies, limited liability partnerships or similar entities
in which any Group Company has an interest;

 

(ix)          
Contracts that obligate a Group Company with respect to contingent payments or any type;

 

(x)            
Contracts relating to Intellectual Property listed in Sections 3.12(c) and 3.12(d) of the Company Disclosure Schedule;

 

(xi)          
Contracts by and between a Group Company, on the one hand, and any Affiliate of a Group Company, other Persons with whom a Group
Company is not dealing at arm’s-length, employee, officer or director of a Group Company, or entity controlled by any employees,
officers or directors of a Group Company, on the other hand;

 

(xii)         
leases of personal property under which a Group Company is the lessee and is obligated to make payments more than Fifty Thousand
Dollars ($50,000) per annum;

 

(xiii)       
Contracts relating to any Litigation involving a Group Company including contracts pursuant to which such Group Company has any
ongoing obligations, including any settlement agreements;

 

(xiv)        
 Contracts relating to the acquisition or disposition of any capital stock, business or product line of any other Person entered
into at any time during the last five (5) years;

 

    - 46 -

     

    

 

(xv)          
Contracts limiting the freedom of a Group Company or any Affiliate to engage in any line of business, acquire any entity or compete
with any Person or in any market or geographical area, to solicit any individual or class of individuals for employment or transact business
or deal in any manner with any other person;

 

(xvi)        
any Contract pursuant to which a Group Company is subject to (A) continuing indemnification obligations, other than indemnification
obligations contained in commercial Contracts entered into in the ordinary course of business that would not reasonably be likely to result
in payments by a Group company or (B) continuing “earn-out” obligations;

 

(xvii)        
any Contract that contains a “most-favored nation” or “most-favored-customer” clause; and

 

(xviii)       
any Contract not otherwise listed above that is, individually or in the aggregate, material to the Group Companies.

 

(b)              
Status of Material Contracts. A true and complete copy of each Material Contract has been made available to Parent. All
Material Contracts are valid, binding and in full force and effect and enforceable by the Group Company party thereto in accordance with
their respective terms, subject to bankruptcy, insolvency, reorganization and other Laws of general applicability relating to or affecting
creditors’ rights and to general equity principles. The Company has and, to the Knowledge of the Company, the other Group Companies
have complied in all material respects with the terms and conditions of the Material Contracts. As to each Material Contract, there does
not exist thereunder any material breach, violation or default on the part of the Company or, to the Knowledge of the Company, the other
Group Companies or any other party to such Material Contract, and there does not exist any event, occurrence or condition, including the
consummation of the Contemplated Transactions, which (with or without notice, passage of time, or both) would constitute a material breach,
violation or default thereunder on the part of the Group Company party thereto. No material waiver has been granted by the Company or,
to the Knowledge of the Company, the other Group Companies or any of the other parties thereto under any of the Material Contracts. There
exists no suspension, stop work order, cure notice or show cause notice in effect for any Material Contract or any other complaint relating
to the Company’s or, to the Knowledge of the Company, the other Group Companies’, performance thereunder, nor, to the Knowledge
of the Company, has any counterparty with respect to any Material Contract made any threats with respect thereto. No party to any Material
Contract has repudiated any provision thereof, terminated any Material Contract or given notice of any such termination, nor is the Company
aware of any party’s intent to do so.

 

    - 47 -

     

    

 

(c)              
 Government Contracts.

 

(i)                
Section 3.13(c)(i) of the Company Disclosure Schedule sets forth a true and correct list of the following (i) each Current Government
Contract; and (ii) each Government Bid to which the Company is a party and for which an award has not been issued, including (A) the contract
number, internal project charge number, contract name, the award date, the customer, contract value and the contract end date for each
of the Current Government Contracts, and (B) the request for proposal number, date of actual or estimated proposal submission, expected
award date, estimated period of performance, estimated value and customer name for each of the Government Bids. Except as set forth in
Section 3.13(c)(i) of the Company Disclosure Schedule, (i) there are no Current Government Contracts or Government Bids in connection
with which any of the Group Companies represented itself as having 8(a), small business, small disadvantaged business, historically underutilized
business zone small business, women owned small business, veteran-owned small business or service-disabled veteran-owned small business
status and/or other preferential status; and (ii) none of the Current Government Contracts were awarded pursuant to a procurement process
that was limited to entities having 8(a), small business, small disadvantaged business, historically underutilized business zone small
business, women owned small business, veteran-owned small business or service-disabled veteran-owned small business status or other preferential
status.

 

(ii)             
Except as set forth on Section 3.13(c)(ii) of the Company Disclosure Schedule, since January 1, 2018, (i) each of the Group Companies
has complied in all material respects with all statutory and regulatory requirements, where and as applicable to each of the Government
Contracts and Government Bids, and (ii) the representations, certifications, and warranties made by any of the Group Companies with respect
to the Government Contracts or Government Bids were accurate in all material respects as of their effective date, and each of the Group
Companies has complied in all material respects with all such certifications.

 

(iii)           
Except as set forth on Section 3.13(c)(iii) of the Company Disclosure Schedule, since January 1, 2018, (i) the Group Companies
have not received any written termination for default or convenience, cure notice, or show cause notice from any Governmental Authority
or any prime contractor or higher-tier subcontractor with respect to performance by any of the Group Companies as a prime contractor or
subcontractor of any portion of the obligation of a Government Contract, and (ii) the Group Companies have complied with all material
terms and conditions of the Government Contracts.

 

(iv)            
As of the date hereof, neither the Company nor, to the Knowledge of the Company, the Group Companies have any outstanding Government
Bids that, if accepted or a contract relating thereto awarded to the Group Companies, are expected to result in a loss to the Group Companies.
Except as set forth on Section 3.13(c)(iv) of the Company Disclosure Schedule, neither the Company nor, to the Knowledge of the Company,
the other Group Companies are a party to any Current Government Contract which is expected to result in a loss to the Group Companies.

 

    - 48 -

     

    

 

(v)               Except
as set forth on Section 3.13(c)(v) of the Company Disclosure Schedule, with respect to any Government Contract, as of the date of
this Agreement since January 1, 2018, there has not been and there is no pending (i) civil fraud or criminal investigation by any
Governmental Authority, (ii) suspension or debarment proceeding (or equivalent proceeding) against the Group Companies, (iii) audit,
review, inspection, survey or examination of records relating to a Government Contract, (iv) disclosure to any Governmental Agency
(pursuant to FAR 52.203-13 or any other similar disclosure requirement or program), nor is the Company or, to the Knowledge of the
Company, the Group Companies aware of any facts or circumstances, or “credible evidence” (as that term is defined at FAR
52.203-13) that should have given rise to any such disclosure, (v) request by a Governmental Authority for a contract price
adjustment based on a claimed disallowance by the Defense Contract Audit Agency (or other applicable Governmental Authority) or
claim of defective pricing, (vi) dispute between the Group Companies and a Governmental Authority, which has resulted in a
government contracting officer’s final decision, or (vii) claim or request for equitable adjustment by the Group Companies
against a Governmental Authority.

 

(vi)            
Neither the Group Companies nor any of their Principals (as that term is defined under Federal Acquisition Regulation 2.101) is,
or within the past three (3) years have been, proposed for debarment, debarred, suspended, or otherwise declared ineligible from participation
in the award of a Government Contract.

 

(vii)         
The Group Companies maintain no security clearances or cleared facilities and are in compliance in all material respects with all
applicable national security obligations.

 

3.14.       
Compliance with Laws; Anti-Corruption; Anti-Money Laundering; Permits.

 

(a)              
No Group Company is, and during the past three (3) years no Group Company has been, in violation in any material respect of, and,
to the Knowledge of the Company, no Event has occurred or circumstance exists that (with or without notice or lapse of time) would constitute
or result in a violation in any material respect by a Group Company of, or failure on the part of a Group Company to comply with in any
material respect, any Law that is or was applicable to it or the conduct or operation of its business or the ownership or use of any of
its assets.

 

(b)               In
the past ten (10) years, the Group Companies, their directors or officers, any Group Companies OFAC Parties, and Representatives of
or any Person acting on behalf of the Group Companies, have not, directly or indirectly, (i) used any funds of the Group Companies
for unlawful contributions, unlawful gifts, unlawful entertainment or other unlawful expenses relating to political activity; (ii)
made any unlawful payments, unlawful promises of payment or unlawful authorizations of payment of money, gifts or anything of value
to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from funds of the
Group Companies; (iii) made any payments, promises of payment or authorizations of payment of money, gifts or anything of value to
any official, agent or employee of any Governmental Authority or any official of a political party or a candidate for political
office from funds of the Group Companies (but excluding payments to Governmental Authorities in amounts legally due and owing by the
Group Companies or reasonable and bona fide payments directly related to the execution or performance of a written agreement); (iv)
established or maintained any unlawful fund of monies or other assets of the Group Companies; (v) made any unlawful payment, promise
of payment or unlawful authorization of payment of money, gifts or anything of value to any Person or entity, private or public,
regardless of form, whether in money, property or services, to receive favorable treatment in obtaining or retaining business for
the Group Companies; or (vi) otherwise made any unlawful payment within the meaning of, or is in any other way in violation of,
Anti-Corruption Laws.

 

    - 49 -

     

    

 

(c)              
The Group Companies have kept all required records and have filed with Governmental Authorities all required notices, supplemental
applications and annual or other reports required by applicable Laws for the operation of the business of the Group Companies. Without
limiting the generality of the foregoing, the Group Companies have not directly or indirectly taken any action which would cause it to
be in violation of Anti-Corruption Laws. The Group Companies have informed employees of their obligations with respect to Anti-Corruption
Laws.

 

(d)              
In the past ten (10) years, the Group Companies’ business has been and is conducted at all times in compliance with anti-money
laundering Laws, and no suit involving the Group Companies or any other Group Companies OFAC Party with respect to anti-money laundering
laws is pending or, to Knowledge of the Group Companies, threatened.

 

(e)              
The Company and, to the Knowledge of the Company, the other Group Companies have in effect all approvals, authorizations, certificates,
filings, franchises, licenses, consents, exemptions, variances, notices and permits of or with all Governmental Authorities (collectively,
 “Permits”) necessary for it to own, lease or operate its properties and other assets and to carry on its business and
operations as presently conducted. All such Permits are set forth in Section 3.14(e) of the Company Disclosure Schedule. There has occurred
no default under, or violation of, any such Permit, and each such Permit is in full force and effect. Except as set forth on Section 3.14(e)
of the Company Disclosure Schedule, the execution, delivery and performance of this Agreement, and the consummation of the transactions
contemplated by this Agreement, does not and will not result in a violation of or default under and will not cause the suspension, modification,
nonrenewal, termination, revocation or cancellation of any such Permit. Neither the Company nor, to the Knowledge of the Company, the
other Group Companies have received any communication and there exists no facts or circumstances which would reasonably be expected to
result in any of the Permits failing to be in good standing.

 

3.15.       
Environmental Matters.

 

Each Group Company (i) is,
and at all times has been, in compliance in all material respects with all applicable Environmental Laws, and (ii) has obtained, and
is in compliance in all material respects with, all permits, licenses, authorizations, registrations and other governmental consents
required by applicable Environmental Laws, and has made all appropriate filings for issuance or renewal of such permits, licenses,
authorizations, registrations and consents. There is no contamination of, and there have been no releases or, to the Knowledge of
the Company, threatened releases of Hazardous Materials at the Leased Real Property or any real property formerly owned, leased or
operated by the Group Companies (or any predecessor of a Group Company), in each case, that would require notification to
governmental entities, investigation and/or remediation pursuant to any Environmental Laws. There are no past or present conditions,
events, circumstances, facts, activities, practices, incidents, actions, omissions or plans that would reasonably be expected to
give rise to any material liability or other obligation under any Environmental Laws. There are no claims, notices, civil, criminal
or administrative actions, suits, hearings, investigations, inquiries or proceedings pending or, to the Knowledge of the Company,
threatened that are based on or related to any Environmental Matters relating to the business of the Group Companies. No Group
Company is subject to any Orders or other arrangements with any
Governmental Authority or an indemnitor of any third party indemnitee for any liability under any Environmental Law or relating to
any Hazardous Material.

 

    - 50 -

     

    

 

3.16.       
Litigation.

 

Except as set forth in Section
3.16 of the Company Disclosure Schedule, there are no claims, actions, arbitrations, suits, audits, inquiries, proceedings or governmental
investigations (“Litigation”) pending or, to the Knowledge of the Company, threatened against, affecting or involving
the Company, or to the Knowledge of the Company, any other Group Company, or any of its assets, properties or rights, this Agreement or
the transactions contemplated by this Agreement, at Law or in equity or before any Governmental Authority, or that have been settled,
dismissed or resolved in the preceding three (3) years. The Company and, to the Knowledge of the Company, any other Group Company, is
not subject to any Order arising from any Litigation affecting or involving the Company or such Group Company or any of its assets, properties
or rights, this Agreement or the transactions contemplated by this Agreement and, to the Knowledge of the Company, no such Order is threatened
to be imposed by any Governmental Authority.

 

3.17.       
Personnel Matters.

 

(a)              
True, accurate, and complete lists of all of the directors, officers, and employees of the Company and, to the Knowledge of the
Company, the other Group Companies (individually and collectively, “Personnel”) as of the date hereof and their positions
are included in Section 3.17(a) of the Company Disclosure Schedule together with the following as to each: (i) name, (ii) job title
or description, (iii) principal place of employment, (iv) base salary or wage level (including any bonus opportunities or deferred compensation
arrangements) and also showing any bonus or other remuneration other than salary paid during the Company’s fiscal year ending December
31, 2020, (v) date of hire, (vi) leave of absence status (including expected return to work date if known), (vii) whether exempt or non-exempt
under the Fair Labor Standards Act and (viii) visa status (if any). True and complete information concerning the respective salaries,
wages, bonuses and other compensation paid or payable by the Company and, to the Knowledge of the Company, the other Group Companies during
2020 and 2019 and through the Balance Sheet Date, as well as dates of employment and date and amount of last salary increase, of such
Personnel has been made available to Parent.

 

(b)              
To the Knowledge of the Company, no employee of the Group Companies is in any material respect in violation of any term of any
employment agreement, offer letter, nondisclosure agreement, severance agreement, common law nondisclosure obligation, fiduciary duty,
non-competition and/or non-solicitation agreement, assignment of invention covenant or restrictive covenant of any kind to (i) the Group
Companies or (ii) to the employee’s former employer relating to (A) the right of the employee to be employed by the Group Companies,
or (B) the use of trade secrets or proprietary information of the employee’s former company.

 

    - 51 -

     

    

 

(c)               Except
as set forth on Section 3.17(c) of the Company Disclosure Schedule, the Company has and, to the Knowledge of the Company, the other
Group Companies have not closed any plant or facility, effectuated any layoffs of employees or implemented any early retirement,
separation or window program for the past three (3) years, nor has the Company or, to the Knowledge of the Company, nor has any of
the other Group Companies planned or announced any such action or program for the future; and the Company is and, to the Knowledge
of the Company, the other Group Companies are in compliance with its obligations pursuant to the WARN Act and all other related or
similar notification and bargaining obligations arising under applicable Laws.

 

(d)              
There are no complaints, lawsuits, claims (other than ordinary claims under Plans), disputes, actions, grievances or disciplinary
actions pending or, to the Knowledge of the Company, threatened, by or between the Company and, to the Knowledge of the Company, the other
Group Companies on one hand and any Personnel, former employee, job applicants or other current or former service providers on the other
hand.

 

(e)              
To the Knowledge of the Company, there are no violations, or potential violations, of any employee restrictive covenant agreements
by any current or former employees of the Group Companies.

 

(f)               
The most recent written personnel policies and manuals of the Company and, to the Knowledge of the Company, the other Group Companies
are listed in Section 3.17(f) of the Company Disclosure Schedule, and true, accurate, and complete copies of all such written personnel
policies and manuals have been made available to Parent.

 

(g)               Except
as set forth on Section 3.17(g) of the Company Disclosure Schedule, the Company is and, to the Knowledge of the Company, the
other Group Companies are in compliance in all material respects with all applicable Laws relating to employment or hiring or
termination of employment, including those related to wages, hours, compensation, benefits, terms and conditions of employment,
employee background checks, equal employment opportunity, contractual obligations, workplace health and safety, medical or family
leave, discrimination or harassment, retaliation, human rights, unemployment insurance, employee whistle-blowing, employee privacy
and right to know statutes, pay equity, disability, notice of termination, classification of workers (i.e., as employees versus
independent contractors, or as exempt versus non-exempt employees), immigration, collective bargaining, the payment of
COVID-19-related paid sick or family leave or other benefits and withholding of taxes and other sums as required by the appropriate
Governmental Authority. The Company has and, to the Knowledge of the Company, the other Group Companies have paid in full to all
employees all wages, salaries, commissions, bonuses, benefits and other compensation due to or on behalf of such employees through
the pay period preceding the Effective Time. There is no Claim with respect to employment, leave from employment, or termination of
employment, discrimination, retaliation, whistleblower, or payment of wages, salary or overtime pay that has been asserted or is now
pending or, to the Knowledge of the Company, threatened before any Governmental Authority, and no audit or investigation by any
Governmental Authority is currently pending or, to the Knowledge of the Company, threatened. The Company has and, to the Knowledge
of the Company, the other Group Companies have no liability, whether direct or indirect, absolute or contingent, with respect to any
misclassification of a Person performing services as an independent contractor or consultant rather than as an employee. To the
Knowledge of the Company, no group of employees and no key employee, manager or executive has any current plans to terminate
employment in connection with the Closing.

 

    - 52 -

     

    

 

(h)              
The Group Companies have complied in all material respects with the following government orders related to COVID-19: (i) restricting
activity, such as “stay-at-home” orders or business closure orders, (ii) imposing duties or obligations on employers to make
modifications to the workplace, provide personal protective equipment, undertake employee temperature or health screening or implement
other measures for the protection of employee health and welfare related to the COVID-19 pandemic, or (iii) other similar directives issued
by federal, state, or local executive authorities applicable to any location in which the Group Company operates. To the extent any Group
Company is or has been requiring employees or independent contractors to perform in-person work in any locations subject to such an order
or directive, such continued operations and demands upon such Persons were and are in compliance in all material respects with such orders,
for example, because such operations are “essential” or otherwise excluded from the applicability of the orders restricting
activity. The Group Companies have complied in all material respects with the confidential record-keeping requirements pertaining to all
employee health information retained pursuant to its workplace safety measures and leave administration.

 

(i)                
To the extent the Company is aware of any Employees or Company independent contractors that have tested positive for COVID-19,
the Company has and, to the Knowledge of the Company, the other Group Companies have taken all precautions required under applicable Law
with respect to such Persons. The Company has also used commercially reasonable efforts to document any such diagnosis to the extent required
by the Occupational Safety and Health Administration and in compliance with the guidance from the Centers for Disease Control and Prevention.

 

(j)                
Except as set forth on Section 3.17(j) of the Company Disclosure Schedule, as of the date hereof, the Company and, to the Knowledge
of the Company, the other Group Companies have not taken any of the following actions or implemented or undertaken any of the following
changes with respect to the service, compensation or benefits of the employees or any Group Company independent contractors in response
to the COVID-19 pandemic: (i) announced, implemented or effected any reduction-in-force, lay-off, furlough or other program resulting
in the termination of employment of employees (other than terminations of individual employees in the ordinary course of business);
(ii) increased or decreased the compensation or benefits of any employee, officer or independent contractor; (iii) paid any severance
or termination pay to any employee or independent contractor not otherwise provided for under the Group Company Benefit Plans; or (iv)
adopted, terminated or amended the Group Company Benefit Plans, or materially increased or decreased the benefits under the Group Company
Benefit Plans.

 

(k)               Except
as set forth on Section 3.17(k) of the Company Disclosure Schedule, the employment of all Personnel is terminable at-will, and the
Company has and, to the Knowledge of the Company, the other Group Companies have not made any written or oral commitment to any
employee with respect to such employee’s compensation, promotion, retention, termination, severance or related matters,
whether in connection with the Contemplated Transactions or otherwise. To the Knowledge of Company, no executive officer or
management level employees have any plans to terminate his, her or their employment with the Group Companies. Section 3.17(k) of the
Company Disclosure Schedule is a true and complete list of all employment contracts to which the Company is and, to the Knowledge of
the Company, the other Group Companies are party (the “Company Employment Contracts”), and except as otherwise
disclosed in Section 3.17(k) of the Company Disclosure Schedule, the Company is not and, to the Knowledge of the Company, the other
Group Companies are not a party to any (i) management, employment, consulting or other agreements with any Personnel or other Person
providing for employment over a period of time or for termination or severance benefits, whether written or unwritten, and whether
or not conditioned upon a change in control of any Group Company, (ii) bonus pay, incentive compensation, deferred compensation,
profit-sharing, stock purchase, stock option or similar plans, agreements or arrangements, whether written or unwritten, or (iii)
collective bargaining agreements or other agreements with any labor organization or union or other Personnel organization (and no
such agreement is currently being requested by, or is under discussion by management with, any Personnel or others). During the last
three years there has not been and there is not presently pending, existing, or threatened, any organized strike, slowdown,
picketing, or work stoppage by any Personnel.

 

    - 53 -

     

    

 

3.18.       
Labor Matters.

 

The Company and, to the
Knowledge of the Company, the other Group Companies are not a party to or bound by any collective bargaining or labor contract,
voluntary recognition agreement or other binding commitment to any labor union, trade union, works council or employee organization
in respect of any of its employees. There are not currently, and in the five (5) years preceding the date hereof, there have not
been, nor to the Knowledge of the Company, are there now threatened, any: (i) strikes, work stoppages, slowdowns, lockouts,
picketing, leafletting, or arbitrations; or (ii) employee or union grievances, claims, charges, unfair labor practice charges,
harassment charges, grievances or complaints or other labor disputes with respect to the Group Companies. In the five (5) years
preceding the date hereof, none of the employees of the Company or, to the Knowledge of the Company, the other Group Companies is or
has been represented by any labor union or other employee collective bargaining organization, was a party to, or bound by, any labor
or other collective bargaining agreement in connection with such employment or has been subject to or involved in, or, to the
Knowledge of the Company, threatened, any union elections, petitions or other organizational or recruiting activities, nor are any
such labor organizing activities now pending or, to the Knowledge of the Company, threatened against the Group Companies. The
Company and, to the Knowledge of the Company, the other Group Companies are not obligated by, or subject to, any order of the
National Labor Relations Board or other labor board or administration, or any unfair labor practice decision. The Company and, to
the Knowledge of the Company, the other Group Companies are in compliance in all material respects with all applicable Laws
respecting labor, employment standards, human rights, workers’ compensation, and plant closings and mass layoffs. The Company
and, to the Knowledge of the Company, the other Group Companies are not liable for the payment of any compensation, damages, taxes,
fines, penalties or other amounts, however designated, for failure to comply with any employment related laws. Except as set forth
on Section 3.18 of the Company Disclosure Schedule, the Company has and, to the Knowledge of the Company, the other Group Companies
have paid in full to all Personnel all wages, salaries, commission, bonuses and other compensation due and payable to such
Personnel, including overtime compensation and severance payments, but excluding arrearages in accordance with the Company’s
or the other Group Companies’, as applicable, customary payroll practices, and there are no severance payments due or that
could become due in the future pursuant to applicable Law, Contract or policy other than payment in lieu of an advance notice of
termination of services. All Personnel classified by the Company and, to the Knowledge of the Company, classified by the other Group
Companies as independent contractors at any time during the past three (3) years have satisfied the requirements of applicable Law
to be so classified, and the Company has and, to the Knowledge of the Company, the other Group Companies have fully and accurately
reported each such Person’s compensation on IRS Forms 1099 during such period if and when required to do so. All Personnel
classified as exempt from overtime pay requirements at any time during the past three (3) years have satisfied the requirements of
the federal Fair Labor Standards Act and all analogous and applicable state and local laws to be so classified.

 

    - 54 -

     

    

 

3.19.       
Employee Benefits.

 

(a)                           
Section 3.19(a) of the Company Disclosure Schedule lists all employee benefit plans (as defined in Section 3(3) of ERISA) and all
bonus, stock option, stock purchase, phantom stock, stock appreciation rights, other equity-based profit sharing, savings, disability,
incentive, deferred compensation, retirement, simplified employee pension, severance, retention, change in control or other employee benefit
plans or programs and all employment or compensation agreements, for the benefit of, or relating to, current employees and former employees
of the Company or any ERISA Affiliate, or with respect to which the Company could have any Liability (individually, a “Plan,”
collectively, the “Plans”). The Company has not made a commitment or promise to any employee to amend any Plan or adopt
a new plan, program or arrangement that upon adoption would be a Plan.

 

(b)                           
With respect to each Plan, the Company has provided to Parent true and complete copies of: (i) all material Plan documents, (ii)
all funding and administrative arrangement documents, including, but not limited to, trust agreements, insurance contracts, custodial
agreements, investment manager agreements and service agreements, (iii) the latest favorable determination letter (or as to a prototype
or volume submitter plan, opinion letter) received from the Internal Revenue Service regarding the qualification of each Plan covered
by Section 401(a) of the Code, (iv) the three most recently filed Forms 5500 for each Plan that is an employee pension benefit plan (as
defined in Section 3(2) of ERISA) and for each Plan that is an employee welfare benefit plan (as defined in Section 3(1) of ERISA), (v)
each summary plan description and each summary of material modification regarding the terms and provisions thereof, (vi) the most recent
actuarial report, if applicable, (vii) any nondiscrimination or other testing under each Plan for the last three years, and (viii) any
material communication with any Governmental Authority, including without limitation correspondence to or from the government in connection
with any audit or investigation of or correction filing for any Plan.

 

(c)                           
Each Plan and, to the Knowledge of the Company, each employee benefit plan maintained or contributed to by the other Group Companies
(i) is in compliance in all material respects with all applicable governmental Laws, Orders, statutes, regulations, and rules issued by
a Governmental Authority and with any agreement entered into with a union or labor organization and (ii) has been operated in compliance
in all materials respects with all applicable Laws and its terms.

 

    - 55 -

     

    

 

 

(d)                       Each
Group Company and each ERISA Affiliate, and each Plan that is a group health plan as defined in Section 733(a)(1) of ERISA, are in material
compliance with the Patient Protection and Affordable Care Act. No penalties under Section 4980H of the Code and the regulations thereunder
are assessable on any Group Company or ERISA Affiliate with respect to any employee. Further, if required by the Code, each Group Company
and each ERISA Affiliate has timely filed, or is prepared to timely file by any applicable extended deadline, its IRS Forms 1094-C and
Forms 1095-C for each calendar year.

 

(e)                     No
Group Company, or an ERISA Affiliate currently participate or ever have participated in or had an obligation to contribute to any multiemployer
plan, as defined in Section 3(37) of ERISA or a voluntary employees beneficiary association, as defined in Section 501(c)(9) of the Code.

 

(f)                        No
Plan provides retiree medical, dental, vision, disability or life insurance benefits, except as required by the Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA) or state law. Any Plan designed to satisfy the requirements of Section 125, 401(k), and/or
4980B of the Code satisfies such section in all material respects.

 

(g)                       Each
Plan intended to qualify under Section 401(a) of the Code is so qualified, each trust maintained in conjunction with a Plan intended
to qualify under Section 401(a) of the Code is exempt from taxation, and none of such Plans or related trusts, or any administrator or
trustee thereof, or party-in-interest or disqualified person thereto has engaged in a transaction that could cause any of them or the
Group Companies, whether directly or through an indemnification requirement, to be liable for a civil penalty under Section 409 or 502(i)
or any other section of ERISA or result in a tax under Section 4975 or 4976 or any other section of Chapter 43 of Subtitle D of the Code.

 

(h)                       Each
Plan that is required to be registered or approved by a Governmental Authority has been registered with, or approved by, and has been
maintained in good standing with such Governmental Authority. No Plan is subject to the laws or regulations of any foreign jurisdiction.

 

(i)                      All
material payments and contributions, including but not limited to, payments to remediate any nondiscrimination or operational errors,
required to be made with respect to any Plan by applicable Law, any Order or any Plan document or other contractual undertaking, and
all premiums due or payable with respect to any insurance policy funding any Plan have been timely paid in full or, to the extent not
required to be made or paid on or before the date hereof, have been accrued in accordance with normal accounting practices and are fully
reflected on the Most Recent Unaudited Financial Statements.

 

(j)                     All
amounts required to be reserved under each unfunded Plan have been so reserved in accordance with reasonable accounting practices prevailing
in the country where such Plan is maintained.

 

(k)                     The
fair market value of the assets of each Plan that is funded, and the amount of book reserves for each Plan that is unfunded or
underfunded, are sufficient to satisfy the liability for accrued benefits with respect to current and former employees of the Group
Companies participating in each such Plan, based on reasonable actuarial or other applicable assumptions and valuations. Each
insurance contract relating to any Plan is valid and enforceable and, to the Knowledge of the Company, there is no ground on which
the insurer might avoid liability thereunder.

 

    - 56 -

     

    

 

(l)                        No
Liability under Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code has been or is reasonably expected to be incurred
by the Group Companies or ERISA Affiliates. Neither the Group Companies nor any ERISA Affiliate has ever maintained a multiemployer plan
or single employer plan within the meaning of Section 4001(a) of ERISA, a multiple employer plan within the meaning of Section 413 of
the Code or a pension plan subject to Section 412, 430 or 431 of the Code.

 

(m)                     The
execution of this Agreement or any of the Ancillary Documents, and performance of the Contemplated Transactions, will not (either alone
or upon the occurrence of any additional or subsequent events) (i) constitute an event under any Plan or related agreement, trust or
loan that will or may result in any payment (whether of severance pay or otherwise), acceleration, forgiveness of indebtedness, vesting,
distribution, increase in benefits or obligation to fund benefits with respect to any current or former Personnel, (ii) result in the
triggering or imposition or any restrictions or limitations on the right of the Group Companies to amend or terminate any Plan (or result
in any adverse consequence for so doing) or (iii) result in any payment or benefit that will or may be made by the Group Companies that
may be characterized as “excess parachute payment,” within the meaning of Section 280G(b)(1) of the Code. The Group Companies
do not have any obligation or requirement to indemnify or make any Person whole with respect to taxes under Section 4999 of the Code.

 

(n)                       There
are no pending or, to the Knowledge of the Company, threatened claims, actions, proceedings or litigations by or on behalf of any Plan,
any employee or beneficiary covered under any Plan, any Governmental Authority, or otherwise involving any Plan (other than routine claims
for benefits). There are no pending or, to the Knowledge of the Company, threatened claims, actions, proceedings or litigation by any
current or former employee or applicant for employment against any Group Company. No Plan is under audit or investigation by any Governmental
Authority and, to the Knowledge of the Company, no such audit or investigation is threatened.

 

(o)                       None
of the Plans, if administered in accordance with their terms, could result in the imposition of interest or an additional tax on any
participant thereunder pursuant to Section 409A of the Code. The Group Companies do not have any obligation or requirement to indemnify
or make any Person whole with respect to taxes under Section 409A of the Code. Any Plan subject to Section 409A of the Code has been
operated in material compliance with the Plan document and Section 409A of the Code.

 

3.20.       
Tax Matters.

 

(a)                        The
Group Companies have duly and timely filed all Tax Returns required to be filed by them, and all such Tax Returns are true, complete
and correct in all respects. The Group Companies have timely paid all Taxes due and owing (whether or not shown due on any Tax
Return). No Group Company is currently the beneficiary of any extension of time within which to file any Tax Return, other than
automatic extensions of time not requiring the consent of any Governmental Authority.

 

    - 57 -

     

    

 

(b)              The
Group Companies have complied in all material respects with all applicable Laws relating to the payment and withholding of Taxes and
has, within the time and in the manner prescribed by applicable Laws, withheld and paid over to the proper Governmental Authority all
amounts required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor,
member, stockholder or other third party.

 

(c)              No
Group Company is, or has ever been, a party to or bound by any Tax Sharing Agreement. There are no Liens on any of the assets of the
Group Companies with respect to Taxes, other than Permitted Liens.

 

(d)              No
Governmental Authority is conducting or has threatened in writing to conduct an audit or administrative or judicial proceeding with respect
to Taxes or any Tax Returns of the Group Companies, or with respect to any other actions imposing on the Group Companies any obligations
or liabilities with respect to another Person’s Taxes. No extension or waiver of the statute of limitations with respect to Taxes
or any Tax Return has been granted by any Group Company which remains in effect. All Tax deficiencies which have been proposed, asserted
or assessed against the Group Companies have been fully paid or finally settled. No Group Company has received written notice of a claim
by any Taxing Authority in any jurisdiction where such Group Company does not file Tax Returns that such Group Company is or may be subject
to Tax by that jurisdiction.

 

(e)             The
Group Companies have not received or requested any ruling, closing
agreement, transfer pricing agreement or similar agreement from any Taxing Authority with respect to any Tax which will have any
effect after the Closing.

 

(f)               No
Group Company has ever been included in an affiliated group (as defined in Section 1504 of the Code or any similar group defined under
a similar provision of state, local, or foreign Law).

 

(g)              The
Group Companies have no liability for the Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of
state, local or foreign Law), as a transferee, successor or as a result of similar liability, operation of Law, by Contract (including
any Tax Sharing Agreement) or otherwise.

 

(h)              The
Group Companies have not participated in a listed transaction or a reportable transaction within
the meaning of Treasury Regulations Section 1.6011-4 or Section 1.6011-4T.

 

(i)                No
Person has been treated as an independent contractor of any Group Company for Tax purposes who should have been treated as an employee
for such purposes.

 

(j)                None
of the equity interests of the Company is subject to a “substantial risk of forfeiture” within the meaning of Section 83
of the Code.

 

    - 58 -

     

    

 

(k)              No
Group Company is a party to any “gain recognition agreements” as such term is used in the Treasury Regulations promulgated
under Code Section 367.

 

(l)                There
are no joint ventures, partnerships, limited liability companies, or other arrangements or contracts to which any Group Company is a
party and that could be treated as a partnership for federal income tax purposes.

 

(m)               No
Group Company has agreed, nor is it required, to make any adjustment to taxable income in any period (or portion thereof) ending after
the Closing Date by reason of (i) a change in method of accounting for any period (or portion thereof) ending on or before the Closing
Date, (ii) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state,
local or foreign income Tax Law) executed on or prior to the Closing Date, (iii) installment sale or open transaction disposition made
on or prior to the Closing Date, (iv) prepaid amount or deferred revenue received or accrued on or prior to the Closing Date, (v) use
of an improper method of accounting for a taxable period (or portion thereof) ending on or prior to the Closing Date; (vi) intercompany
transaction or excess loss account described in the regulations promulgated under Section 1502 of the Code (or any corresponding or similar
provision of state, local or foreign income Tax law); or (vii) election under Section 108(i) of the Code. The Group Companies will not
be required to include any item of income in taxable income for any taxable period (or portion thereof) ending after the Closing Date
as a result of Section 965 of the Code.

 

(n)              The
Company has delivered or otherwise made available to Parent true, correct and complete copies of all income and other material Tax Returns
of the Group Companies for all Tax periods beginning on or after January 1, 2017. The Company has delivered or otherwise made available
to Parent true, correct and complete copies of any examination reports received by the Group Companies, and statements of deficiencies
assessed against or agreed to by the Group Companies.

 

(o)             The
Group Companies have not in the past five years, been a “distributing
corporation” or a “controlled corporation” in a transaction that qualifies under Section 355 of the Code.

 

(p)              No
Group Company owns an interest in (i) a “specified foreign corporation” within the meaning of Section 965 of the Code, or
(ii) a “passive foreign investment corporation” within the meaning of Section 1297 of the Code.

 

(q)              No
Group Company engages in, or has ever engaged in, a trade or business in a country other than the United States and is not subject to
Tax or has a permanent establishment (within the meaning of an applicable Tax treaty or convention between the United States and such
foreign country) or otherwise has an office or fixed place of business, in a country other than the United States.

 

(r)               No
Group Company has made or become obligated to make, nor will any Group Company, as a result of any event connected with any
transaction contemplated herein and/or any termination of employment related to such transaction, make or become obligated to make,
any “excess parachute payment,” as defined in Section 280G of the Code (without regard to subsection (b)(4) thereof).
The consummation of the transactions contemplated by this Agreement will not (either alone or upon the occurrence of any additional
or subsequent events) result in a nondeductible expense to any Group Company pursuant to Section 280G of the Code or an excise tax
to any stockholder or employee of any Group Company pursuant to Section 4999 of the Code.

 

    - 59 -

     

    

 

(s)               No
Group Company has any obligation to make a payment for which a deduction would be disallowed in whole or part under Section 162(m) of
the Code or that is under a plan or agreement.

 

(t)                No
Group Company is, or has at any time been, subject to (i) the dual consolidated loss provisions of Section 1503(d) of the Code, (ii)
the overall foreign loss provisions of Section 904(f) of the Code or (iii) the recharacterization provisions of Section 952(c)(2) of
the Code.

 

(u)              All
transactions (including but not limited to sales of goods, loans, and provision of services) between any Group Company, on the one hand,
and any other Person, on the other hand, that is controlled directly or indirectly by any Group Company or any shareholder thereof (within
the meaning of Section 482 of the Code) were effected on arms’-length terms and for fair market value consideration. The Company
has delivered to Parent true, correct and complete copies of any transfer pricing studies or materials prepared by, or in respect of
the Group Companies.

 

(v)              Each
Group Company has duly and timely collected all amounts on account of any sales or transfer taxes, including goods and services, harmonized
sales and state, provincial or territorial sales Taxes, required by applicable Laws to be collected by it and has duly and timely remitted
to the appropriate taxing authority any such amounts required by Law to be remitted by it.

 

(w)              Each
Group Company has obtained all official receipts from non-U.S. taxing authorities or other evidence of payments sufficient to support
any claimed foreign Tax credits for any Taxes paid by it to any non-U.S. taxing authorities.

 

(x)               Each
Group Company has provided reasonable documentation or other proof of compliance with any applicable Tax holiday or other similar incentives.

 

(y)               No
Group Company has or has ever had signatory authority over, or with respect to, any foreign bank accounts and has no FBAR filing requirements.

 

(z)               None
of the assets of any Group Company are “section 197(f)(9) intangibles” (as defined in Treasury Regulation Section 1.197-2(h)(1)(i)
and assuming for this purpose that the transition period ends on August 10, 1993).

 

(aa)             No
Group Company is or has ever been a “United States Real Property Holding Corporation” within the meaning of Section 897(c)(2)
of the Code or owns an interest in “United States real property” within the meaning of Section 897 of the Code or “United
States property” within the meaning of Section 956 of the Code.

 

    - 60 -

     

    

 

(bb)            No Group Company has deferred any obligation to pay Taxes pursuant to Section 2302 of the CARES Act or any other similar Law,
executive order or Presidential Memorandum (including the Presidential Memorandum described in IRS Notice 2020-65) enacted in connection
with COVID-19.

 

(cc)             No
Group Company (i) has received or requested any ruling, administrative relief, technical advice, change of a method of accounting, closing
agreement pursuant to Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign Law) or similar
agreement from any taxing authority with respect to any Tax or (ii) has granted a power of attorney with respect to Taxes that is currently
in force.

 

(dd)            At
all times since its date of formation, each Group Company has been classified as a corporation under subchapter C of the Code for U.S.
Federal and state income tax purposes.

 

(ee)             The
unpaid Taxes of the Group Companies (A) did not, as of the Balance Sheet Date, exceed the reserve for Tax liability (rather than any
reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the Most Recent
Unaudited Balance Sheet (rather than in any notes thereto) and (B) do not exceed that reserve as adjusted for the passage of time through
the Closing Date in accordance with the past custom and practice of the Group Companies in filing their Tax Returns.

 

(ff)              The Company is a “United States person” (within the meaning of Section7701(a)(30) of the Code).

 

(gg)            No
Group Company has any obligation to make a payment that is under a plan or agreement that is in violation of Section 409A of the Code.

 

(hh)            No
Group Company has ever received or accrued income that will be required to be included in the income of a “United States Shareholder”
(as defined under Section 951(b) of the Code or similar provision of state or local Law) that is related or attributable to: (i) “subpart
F income” (within the meaning of Section 952 of the Code or similar provision of state or local Law); or (ii) the holding of “United
States property” (within the meaning of Section 956 of the Code or similar provision of state or local Law) on or prior to the
Closing Date.

 

(ii)               Notwithstanding
anything herein to the contrary, no representations are made concerning the Parent’s or the Group Companies ability to utilize
or otherwise benefit from net operating losses, capital losses, deductions, Tax credits and other similar items of the Company and nothing
in this Section 3.20 shall be construed as a representation or warranty with respect to any Tax position that any Person may take in
or in respect of any Tax period (or portion thereof) beginning after the Closing Date.

 

    - 61 -

     

    

 

3.21.       
Insurance.

 

The Company and, to the
Knowledge of the Company, the other Group Companies maintain general liability, professional liability, product liability, fire,
casualty, motor vehicle, workers’ compensation, and other types of insurance shown in Section 3.21 of the Company
Disclosure Schedule (the “Insurance Policies”), which insurance is in full force and effect and, to the Knowledge
of the Company, comprising the types and in the amounts customarily carried by businesses of similar size in the same industry. All
premiums with respect to the Insurance Policies covering all periods up to and including the date of the Closing have been paid. The
Company and, to the Knowledge of the Company, the other Group Companies have not received any written notice of increase in premiums
with respect to, or cancellation, termination or non-renewal of, any of the Insurance Policies, except for general increases in
rates to which similarly situated companies are subject. The Company and, to the Knowledge of the Company, the other Group Companies
have timely filed all claims for which they are seeking payment or other coverage under any of the Insurance Policies. The Company
and, to the Knowledge of the Company, the other Group Companies have not made any claim against an Insurance Policy as to which the
insurer is denying coverage or defending the claim under a reservation of rights. The Company and, to the Knowledge of the Company,
the other Group Companies are not in default in any material respect under any Insurance Policy. The Company and, to the Knowledge
of the Company, the other Group Companies have performed in all material respects all of its obligations under the Insurance
Policies. The Insurance Policies (i) are sufficient for compliance with all requirements of applicable Law and all Contracts
relating to the Company, (ii) are valid, outstanding and enforceable policies, (iii) will remain in full force and effect through
the respective dates set forth in Section 3.21 of the Company Disclosure Schedule without the payment of additional premiums, (iv)
will not in any way be affected by, or terminate or lapse by reason of, the transactions contemplated by this Agreement and (v) do
not provide for any retrospective premium adjustment or other experienced-based liability on the part of the Company and, to the
Knowledge of the Company, the other Group Companies. Neither the Company nor, to the Knowledge of the Company, the other Group
Companies have been refused any insurance by any insurance carrier to which any Group Company has applied for any such insurance or
with which the Company or any of the other Group Companies has carried insurance during the last three (3) years.

 

3.22.       
Bank Accounts; Powers of Attorney.

 

Section 3.22 of the Company
Disclosure Schedule sets forth a true and complete list of (a) all bank accounts or safe deposit boxes under the control or for the benefit
of the Company and, to the Knowledge of the Company, the other Group Companies, (b) the names of all persons authorized to draw on or
have access to such accounts and safe deposit boxes, and (c) all outstanding powers of attorney or similar authorizations granted by the
Company and, to the Knowledge of the Company, the other Group Companies.

 

3.23.       
Customers and Suppliers.

 

(a)               Section
3.23(a) of the Company Disclosure Schedule sets forth a true and complete list of the ten (10) largest customers of the Company, determined
on a consolidated basis by dollar volume of sales, for the fiscal year ended December 31, 2020 and the three (3)-month period ended on
the Balance Sheet Date (collectively, the “Top Customers”) and the applicable dollar amounts with respect to each
Top Customer. The Company has no Knowledge of any termination, cancellation or threatened termination or cancellation of or limitation
of, or any material modification or change in, or material dissatisfaction with, the business relationship between the applicable Group
Company and any of the Top Customers. The Company has no Knowledge that any Top Customer intends to, as a result of the Contemplated
Transactions, cease to contract with the Group Companies or substantially reduce its business with the Group Companies.

 

    - 62 -

     

    

 

(b)              Section
3.23(b) of the Company Disclosure Schedule sets forth a true and complete list of the ten (10) largest suppliers of the Company, determined
on a consolidated basis by dollar volume of expenditures, for the fiscal year ended December 31, 2020 and the three (3)-month period
ended on the Balance Sheet Date (collectively, the “Top Suppliers”) and the applicable dollar amounts with respect
to each Top Supplier. The Company has no Knowledge of any termination, cancellation or threatened termination or cancellation of or limitation
of, or any material modification or change in, or material dissatisfaction with the business relationship between the applicable Group
Company and any of the Top Suppliers. The Company has no Knowledge that any Top Supplier intends to, as a result of the Contemplated
Transactions, cease to contract with or supply to the Group Companies or substantially reduce its business with the Group Companies.

 

3.24.       
Receivables.

 

All accounts and notes receivable
and other receivables reflected on the balance sheet set forth in the Most Recent Unaudited Financial Statements (“Most Recent
Unaudited Balance Sheet”) represent, and the accounts and notes receivable and other receivables arising from the date hereof
through the Closing Date will represent bona fide, collectible current and valid obligations arising from sales actually made or services
actually performed in the ordinary course of business. The reserve for doubtful accounts reflected on the Most Recent Unaudited Balance
Sheet was established in the ordinary course of business consistent with past practice. Except as set forth in Section 3.24 of the Company
Disclosure Schedule, the Company has not received written notice from any obligor of any accounts receivable that such obligor is refusing
to pay or contesting payment of amounts, other than with respect to returns in the ordinary course of business.

 

3.25.       
Books and Records.

 

The books and records of the
Company and, to the Knowledge of the Company, the other Group Companies have been maintained in accordance with good business practices
and all applicable Laws. The minute books of director (including committees thereof) and stockholder meetings of the Group Companies,
as previously made available to Parent, contain accurate records of all such meetings and accurately reflect all other material corporate
action of the stockholders and directors of the Company and, to the Knowledge of the Company, the other Group Companies.

 

    - 63 -

     

    

 

3.26.       
Products Liability and Warranty Liability.

 

No Group Company (a) has
any material Liability arising out of any product designed, manufactured, assembled, repairs, maintained, delivered, sold, or
installed, or any services rendered, by or on behalf of such Group Company, other than those that have been reserved against on the
Most Recent Unaudited Financial Statements, (b) has committed any act or failed to commit any act which would reasonably be expected
to result in any product liability claim or Liability for breach of warranty (whether or not covered by insurance) on the part of
such Group Company with respect to any product designed, manufactured, assembled, repairs, maintained, delivered, sold, or
installed, or services rendered, by or on behalf of such Group Company, (c) has extended any warranty period on any products beyond
those customarily given by the Group Companies for such products or beyond those provided by the manufacturer, as applicable, or (d)
is aware of any facts or circumstances which, given the passage of time, would reasonably be expected to result in a claim against
such Group Company for product liability or breach of warranty. The Company has made available to Parent copies of all guarantees,
warranties, and indemnities given by the Company and, to the Knowledge of the Company, the other Group Companies in connection with
their products. Each product designed, manufactured, sold, or delivered by the Company and, to the Knowledge of the Company, the
other Group Companies, has been in material conformity with all product specifications, applicable express and implied warranties,
and all applicable Laws. There are no latent or overt design, manufacturing, or other defects in any products designed,
manufactured, assembled, repairs, maintained, delivered, sold, or installed, or services rendered, by or on behalf of the Company
and, to the Knowledge of the Company, the other Group Companies, and no such products or services have been the subject of any
recall. The warranty reserves on the Most Recent Unaudited Financial Statements are reasonable based on past experience and have
been accrued in accordance with the Company’s Accounting Principles. Complete and correct copies of all documentation related
to all warranty claims made against the Company and, to the Knowledge of the Company, the other Group Companies since January 1,
2019 have been made available to Parent.

 

3.27.       
Inventory.

 

All inventory, finished goods,
raw materials, work in progress, packaging, supplies, parts, and other inventories of the Company and, to the Knowledge of the Company,
the other Group Companies (“Inventory”), whether or not reflected in the Most Recent Balance Sheet, consists of a quality
and quantity usable and salable in the ordinary course of business consistent with past practice, except for obsolete, damaged, defective,
or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established
in a manner consistent with past practice. All Inventory is owned by the Company and, to the Knowledge of the Company with respect to
the Inventory owned by the Group Companies other than the Company, the other Group Companies free and clear of all Liens other than Permitted
Liens, and no Inventory is held on a consignment basis. The quantities of each item of Inventory (whether raw materials, work-in-process
or finished goods) are not excessive, but are reasonable in the present conduct of the business of the Company and, to the Knowledge of
the Company, the other Group Companies.

 

3.28.       
Export Controls; Sanctions.

 

(a)               Each
Group Company is and has at all times since its inception been in compliance in all material respects with all applicable International
Trade Laws and Regulations and there are no claims, complaints, charges, investigations, voluntary disclosures or proceedings pending
or, to the Knowledge of the Group Companies, threatened between a Group Company, on the one hand, and any Governmental Authority under
any International Trade Laws and Regulations, on the other hand.

 

    - 64 -

     

    

 

(b)               The
Group Companies have prepared and timely applied for all import and export licenses required in accordance with International Trade Laws
and Regulations, for the business of the Group Companies.

 

(c)               The
Group Companies have made available to Parent true and complete copies of all issued and pending import and export licenses, and all
documentation required by, and necessary to evidence compliance with, all International Trade Laws and Regulations in connection with
the business of the Group Companies.

 

(d)               No
Group Company has maintained employees or assets of any kind in Cuba, Iran, North Korea, Sudan, Syria, or any other country against which
the United States maintains, or has maintained since such Group Company’s inception, economic sanctions and no Group Company has
maintained employees or assets of any kind in any country against which the United States maintains, or has maintained during the last
five (5) years, an arms embargo.

 

(e)               Each
Group Company has at all times been in compliance in all material respects with all International Trade Laws and Regulations relating
to export control and trade embargoes, and the Group Companies, Group Companies OFAC Parties, and any Representatives of, or any Person
acting on behalf of, a Group Company, have not provided, exported, reexported, sold, or otherwise transferred, without explicit license
or authorization from the U.S. Government, products, software, technology, or services, directly or indirectly, to (i) Cuba, Iran, North
Korea, Sudan, Syria or any other country against which the United States maintains, or has maintained during the last five (5) years,
economic sanctions or embargoes, (ii) any instrumentality, agent, entity, or individual that is acting on behalf of, or directly or indirectly
owned or controlled by, any Governmental Authority of such countries, (iii) any nationals of such countries, or (iv) any organization,
entity, or individual appearing on a United States Government list of parties with whom companies are prohibited from transacting, including
but not limited to the Specially Designated Nationals List maintained by the United States Treasury Department’s Office of Foreign
Assets Control.

 

3.29.       
No Brokers.

 

Except as set forth in Section
3.29 of the Company Disclosure Schedule, neither the Company nor any of their respective directors, officers, employees or agents has
employed or incurred any Liability to any broker, finder or agent for any brokerage fees, finder’s fees, commissions or other amounts
with respect to this Agreement, the Ancillary Documents or the Contemplated Transactions.

 

3.30.       
No Other Agreements to Purchase.

 

Except for the rights of Parent
and Merger Sub under this Agreement, no Person has any written or oral agreement, option, understanding or commitment, or any right or
privilege (whether by law, contractual or otherwise) capable of becoming such, for (a) the purchase or acquisition of Equity Securities
or substantially all of the assets of the Company and, to the Knowledge of the Company, the other Group Companies or (b) the purchase,
subscription, allotment or issuance of any of the unissued Equity Securities of the Company and, to the Knowledge of the Company, the
other Group Companies.

 

    - 65 -

     

    

 

3.31.       
Disclosure.

 

None of the representations
or warranties in this Article III (together with the schedules in respect thereof set forth in the Company Disclosure Schedule) contains
any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading.

 

ARTICLE IV

Representations and Warranties of Parent and Merger Sub

 

Except as set forth in the
Parent Disclosure Schedule (it being agreed that any matter disclosed in the Parent Disclosure Schedule with respect to any section of
this Agreement shall be deemed to have been disclosed with respect to any other section to which such matter relates so long as the relation
of such matter to such other section is readily apparent from the description of such matter), Parent and Merger Sub jointly and severally
represent and warrant to the Group Companies as of the date hereof and on and as of the Closing Date as follows:

 

4.1.          Organization
and Power.

 

Parent is duly formed, validly
existing and in good standing under the Laws of the State of Nevada and has full power and authority to execute and deliver this Agreement
and the Ancillary Documents to which it is a party, to perform its obligations hereunder and thereunder and to consummate the Contemplated
Transactions. Merger Sub is a corporation, duly formed, validly existing and in good standing under the Laws of the State of Delaware
and has full power and authority to execute and deliver this Agreement and the Ancillary Documents to which it is a party, to perform
its obligations hereunder and thereunder and to consummate the Contemplated Transactions. All of the issued and outstanding capital stock
of Merger Sub is owned directly by Parent.

 

4.2.          Authorization
and Enforceability.

 

The execution and delivery of
this Agreement and the Ancillary Documents to which Parent and Merger Sub are a party and the performance by Parent and Merger Sub of
the Contemplated Transactions that are required to be performed by Parent and Merger Sub have been duly authorized by the board of directors
of both Parent and Merger Sub in accordance with applicable Law and their respective certificates of incorporation and bylaws of Parent
and Merger Sub, and no other corporate proceedings on the part of Parent or Merger Sub are necessary to authorize the execution, delivery
and performance of this Agreement and the Ancillary Documents to which Parent and Merger Sub are a party or the consummation of the Contemplated
Transactions that are required to be performed by Parent and Merger Sub. This Agreement and each of the Ancillary Documents to be executed
and delivered at the Closing by Parent and Merger Sub will be, at the Closing, duly authorized, executed and delivered by Parent and Merger
Sub and constitutes, or as of the Closing Date will constitute, valid and legally binding agreements of Parent and Merger Sub enforceable
against each in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other Laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

 

    - 66 -

     

    

 

4.3.          No Violation.

 

The execution and delivery by
Parent and Merger Sub of this Agreement and the Ancillary Documents to which each is a party, consummation of the Contemplated Transactions
that are required to be performed by each and compliance with the terms of this Agreement and the Ancillary Documents to which each is
a party will not (i) conflict with or violate any provision of the certificate of incorporation, bylaws or similar organizational
documents of Parent or Merger Sub, or (ii) assuming that all consents, approvals and authorizations contemplated by Section 4.4 have
been obtained and all filings described therein have been made, conflict with or violate any Law applicable to Parent or Merger Sub or
by which any properties of Parent or Merger Sub are bound or affected, except as would not reasonably be expected to prevent or materially
delay consummation of the Contemplated Transactions or the performance by Parent or Merger Sub of any of their material obligations under
this Agreement or the Ancillary Documents.

 

4.4.          Governmental
Authorizations and Consents.

 

Except as set forth in Section
4.4 of the Parent Disclosure Schedules, no Governmental Consents are required to be obtained or made by Parent or Merger Sub in connection
with the execution, delivery, performance, validity and enforceability of this Agreement or any Ancillary Documents to which Parent or
Merger Sub is a party.

 

4.5.          No
Brokers.

 

No agent, broker, Person or
firm acting on behalf of Parent or Merger Sub or their Affiliates is, or will be, entitled to any commission or broker’s or finder’s
fees from any of the parties hereto, or from any Affiliate of any of the parties hereto, in connection with any of the Contemplated Transactions.

 

4.6.          Operations
of Merger Sub.

 

Since the date of its incorporation,
Merger Sub has not engaged in any activities other than in connection with or as contemplated by this Agreement.

 

4.7.          Issuance
of Stock Consideration.

 

Upon issuance of the Stock Consideration
in accordance with the terms of this Agreement, the Stock Consideration, will be validly issued, fully paid and nonassessable and free
from all preemptive or similar rights or Liens with respect to the issue thereof (other than those arising from applicable securities
Laws), with the holders being entitled to all rights accorded to a holder of Parent Common Stock.

 

    - 67 -

     

    

 

4.8.          SEC
Documents; Financial Statements.

 

During the two
(2) years prior to the date hereof, Parent has filed all reports, schedules, forms, proxy statements, statements and other
documents required to be filed by it with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to the
reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing
filed prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and schedules
thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
Parent has delivered or has made available to the Stockholders’ Representative true, correct and complete copies of each of
the SEC Documents not available on the EDGAR system. Subject to the subsequent filing of an amendment to an SEC Document with the
SEC prior to date of this Agreement, as of their respective dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of Parent
included in the SEC Documents complied in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have
been prepared in accordance with GAAP, consistently applied, during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent
they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial
position of Parent as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the
aggregate). The reserves, if any, established by Parent or the lack of reserves, if applicable, are reasonable based upon facts and
circumstances known by Parent on the date hereof and there are no loss contingencies that are required to be accrued by the
Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by
Parent in its financial statements or otherwise. No other information provided by or on behalf of Parent to the Stockholders’
Representative which is not included in the SEC Documents (including, without limitation, information in the Parent Disclosure
Schedule) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the
statements therein not misleading, in the light of the circumstance under which they are or were made. Parent is not currently
contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any letter of the
independent accountants of Parent with respect thereto) included in the SEC Documents (the “Parent Financial
Statements”), nor is Parent currently aware of facts or circumstances which would require Parent to amend or restate any
of the Parent Financial Statements, in each case, in order for any of the Parent Financials Statements to be in compliance with GAAP
and the rules and regulations of the SEC. Parent has not been informed by its independent accountants that they recommend that
Parent amend or restate any of the Parent Financial Statements or that there is any need for Parent to amend or restate any of the
Parent Financial Statements. Parent has engaged BF Borges CPA PC to audit the consolidated financial results for Parent and its
Subsidiaries.

 

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4.9.          Absence
of Certain Changes.

 

Except as set forth
on Section 4.9 of the Parent Disclosure Schedule, since the date of Parent’s most recent audited financial statements
contained in a Form 10-K, there has been no Event that resulted or would reasonably be expected to result in a Material Adverse
Effect on Parent and its Subsidiaries. Since the date of Parent’s most recent audited financial statements contained in a
Form 10-K, except as set forth in the SEC Documents filed by Parent following Parent’s most recently filed
Form 10-K/A, neither Parent nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any
material assets, individually or in the aggregate, outside of the ordinary course of business or (iii) made any material
capital expenditures, individually or in the aggregate, outside of the ordinary course of business. Neither Parent nor any of its
Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency,
reorganization, receivership, liquidation or winding up, nor does Parent or any of its Subsidiaries have any knowledge or reason to
believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any
fact which would reasonably lead a creditor to do so.

 

4.10.        No
Undisclosed Events, Liabilities, Developments or Circumstances.

 

Except as set forth on Section
4.10 of the Parent Disclosure Schedule, no event, Liability, development or circumstance has occurred or exists, or is reasonably expected
to exist or occur specific to Parent, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects,
operations (including results thereof) or condition (financial or otherwise), that has not been publicly disclosed and would reasonably
be expected to have a Material Adverse Effect on Parent and its Subsidiaries.

 

4.11.        Conduct
of Business; Regulatory Permits.

 

Neither Parent nor any of
its Subsidiaries is in violation of any term under its articles of incorporation, certificates of designation, bylaws,
organizational charter, certificate of formation, memorandum of association, articles of association, or operating agreement, as
applicable. Neither Parent nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance,
rule or regulation applicable to Parent or any of its Subsidiaries, and neither Parent nor any of its Subsidiaries will conduct
its business in violation of any of the foregoing, except in all cases for violations which would not reasonably be expected to have
a Material Adverse Effect on Parent and its Subsidiaries. Without limiting the generality of the foregoing, Parent is not in
violation of any of the rules, regulations or requirements of NASDAQ and has no knowledge of any facts or circumstances that could
reasonably lead to delisting or suspension of the Parent Common Stock by NASDAQ in the foreseeable future. During the one year prior
to the date hereof, (i) the Parent Common Stock has been listed or designated for quotation on NASDAQ, (ii) trading in the
Parent Common Stock has not been suspended by the SEC or NASDAQ and (iii) Parent has received no communication, written or
oral, from the SEC or NASDAQ regarding the suspension or delisting of the Parent Common Stock from NASDAQ, which has not been
publicly disclosed. Parent and each of its Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such
certificates, authorizations or permits would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on Parent and its Subsidiaries, and neither Parent nor any of its Subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment,
judgment, injunction, order or decree binding upon Parent or any of its Subsidiaries or to which Parent or any of its Subsidiaries
is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice
of Parent or any of its Subsidiaries, any acquisition of property by Parent or any of its Subsidiaries or the conduct of business by
Parent or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not
had and would not reasonably be expected to have a Material Adverse Effect on Parent and its Subsidiaries.

 

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4.12.       
Capitalization.

 

(a)           
As of the date hereof, the authorized capital stock of Parent is as set forth on the Parent Disclosure Schedule.

 

(b)           
All of such outstanding shares are duly authorized and have been validly issued and are fully paid and nonassessable.

 

(c)           
Except as disclosed in the SEC Documents: (i) none of Parent’s or any Subsidiary’s shares, interests or capital
stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by Parent or any Subsidiary; (ii) there
are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of Parent or any of
its Subsidiaries, or contracts, commitments, understandings or arrangements by which Parent or any of its Subsidiaries is or may become
bound to issue additional shares, interests or capital stock of Parent or any of its Subsidiaries or options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any shares, interests or capital stock of Parent or any of its Subsidiaries; (iii) there are no agreements or
arrangements under which Parent or any of its Subsidiaries is obligated to register the sale of any of their securities under the Securities
Act; (iv) there are no outstanding securities or instruments of Parent or any of its Subsidiaries which contain any redemption or
similar provisions, and there are no contracts, commitments, understandings or arrangements by which Parent or any of its Subsidiaries
is or may become bound to redeem a security of Parent or any of its Subsidiaries; (v) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Stock Consideration; and (vi) neither Parent nor
any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

 

(d)          
Parent has furnished to the Stockholders’ Representative or filed on the EDGAR system true, correct and complete copies of
Parent’s articles of incorporation, as amended and as in effect on the date hereof, and Parent’s bylaws, as amended and as
in effect on the date hereof.

 

4.13.       
Litigation.

 

Except as disclosed in the
SEC Documents or as set forth on Section 4.13 of the Parent Disclosure Schedule, there is no Litigation before or by NASDAQ or any
Governmental Authority pending or, to the knowledge of Parent, threatened against or affecting Parent or any of its Subsidiaries,
the Parent Common Stock or any of Parent’s or its Subsidiaries’ officers or directors, whether of a civil or criminal
nature or otherwise, in their capacities as such, which would reasonably be expected to result in a Material Adverse Effect on
Parent and its Subsidiaries. Neither Parent nor any of its Subsidiaries is the subject of any order, writ, judgment, injunction,
decree, determination or award of any Governmental Authority that would reasonably be expected to result in a Material Adverse
Effect on Parent and its Subsidiaries.

 

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4.14.       
Insurance.

 

Parent and each of its Subsidiaries
are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of Parent
believes to be prudent and customary in the businesses in which Parent and its Subsidiaries are engaged. Except as set forth on Section
4.14 of the Parent Disclosure Schedule, neither Parent nor any such Subsidiary has any reason to believe that it will be unable to renew
its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not have a Material Adverse Effect on Parent and its Subsidiaries.

 

4.15.       
Manipulation of Price.

 

Neither Parent nor any of its
Subsidiaries has, and, to the knowledge of Parent, no Person acting on their behalf has, directly or indirectly, taken any action designed
to cause or to result in the manipulation of the price of any security of Parent or any of its Subsidiaries.

 

4.16.       
Money Laundering.

 

Parent and its Subsidiaries
are in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money
laundering Laws, including the Laws and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control,
including Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)) and any regulations contained in 31 CFR, Subtitle
B, Chapter V.

 

4.17.       
Disclosure.

 

Parent confirms that
neither it nor any other Person acting on its behalf has provided the Stockholders’ Representative, the Stockholders, or their
respective agents or counsel with any information that constitutes or would reasonably be expected to constitute material,
non-public information concerning Parent or any of its Subsidiaries, other than the existence of the transactions contemplated by
this Agreement and the Ancillary Documents and information in the Parent Disclosure Schedule to this Agreement. Parent understands
and confirms that the Stockholders will rely on the foregoing representations in effecting transactions in securities of Parent. All
disclosure provided to the Stockholder Representative and the Stockholders regarding Parent and its Subsidiaries, their businesses
and the transactions contemplated hereby, including the Parent Disclosure Schedule, furnished by or on behalf of Parent or any of
its Subsidiaries, taken as a whole, is true and correct and does not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they
were made, not misleading. All of the written information furnished after the date hereof by or on behalf of Parent or any of its
Subsidiaries to the Stockholders’ Representative and the Stockholders pursuant to or in connection with this Agreement and the
Ancillary Documents, taken as a whole, will be true and correct in all material respects as of the date on which such information is
so provided and will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements made therein, in the light of the circumstances under which they were made, not misleading. No event or
circumstance has occurred or information exists with respect to Parent or any of its Subsidiaries or its or their business,
properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under
applicable Law requires public disclosure at or before the date hereof or announcement by Parent but which has not been so publicly
disclosed, except for information in the Parent Disclosure Schedule.

 

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4.18.       
Private Placement.

 

Assuming the accuracy of the
Stockholders’ representations and warranties set forth in this Agreement and the Ancillary Documents, no registration under the
Securities Act is required for issuance of the Stock Consideration by Parent to the Stockholders as contemplated hereby, and the issuance
of the Stock Consideration hereunder does not contravene the rules and regulations of NASDAQ.

 

ARTICLE V

Covenants

 

5.1.           
Conduct of the Company.

 

(a)           
Except as otherwise expressly contemplated by this Agreement or as consented to in writing by Parent (such consent not be unreasonably
withheld, conditioned, or delayed), during the period from the date hereof to the Closing Date, the Company shall, and shall use commercially
reasonable efforts to cause each of the other Group Companies to, conduct its business and operations in the ordinary course and in a
manner consistent with past practice, and to the extent consistent therewith (i)  maintain its assets and properties and to preserve
its current relationships with customers, employees, suppliers and others having business dealings with it, (ii)  perform and comply
with its Material Contracts and to comply with applicable Laws, (iii) maintain its books and records in the usual, regular and ordinary
manner, on a basis consistent with past practice, and (iv)  preserve the goodwill and ongoing operations of its business.

 

(b)          
Without limiting the generality of the foregoing, except as otherwise expressly contemplated by this Agreement or as consented
to in writing by Parent (such consent not to be unreasonably withheld, conditioned, or delayed), during the period from the date hereof
until the earlier to occur of the Closing Date and the termination of this Agreement, the Company shall not, and shall use commercially
reasonable efforts to cause each of the other Group Companies not to:

 

(i)          
modify or amend any of the organizational documents of the Group Companies;

 

(ii)         
issue, authorize the issuance of, split, redeem, combine, reclassify, repurchase, or otherwise acquire any Equity Securities of
the Group Companies;

 

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(iii)        
 declare, set aside or pay any cash or non-cash dividend or make any cash or non-cash distribution in respect of any Equity Securities
of the Group Companies or any repurchase, redemption or other reacquisition of any Equity Securities of the Group Companies;

 

(iv)       
incur or suffer to exist any Indebtedness, except for (A) working capital borrowings incurred in the ordinary course of business
consistent with past practice and (B) intercompany loans and balances between various Group Companies;

 

(v)        
amend, renew (other than in the ordinary course of business), terminate or waive any Material Contract or any provision thereof;

 

(vi)       
enter into any Contract that purports to limit, curtail or restrict (A) the kinds of businesses in which a Group Company or its
existing or future Affiliates may conduct their respective businesses, (B) the Persons with whom it or its existing or future Affiliates
can compete or to whom it or its existing or future Affiliates can sell products or deliver services, or (C) the acquisition of any business;

 

(vii)      
acquire by merging or consolidating with, or by purchasing a substantial equity interest in or substantial portion of the
assets of, or by any other means, any corporation, limited liability company, partnership, joint venture, association or other business
organization or division thereof;

 

(viii)     
divest, sell, transfer, lease, license, mortgage, pledge or otherwise dispose of, or encumber any asset of the Group Companies,
other than the sales of products or services in the ordinary course of business consistent with past practice;

 

(ix)        
adopt a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization
or other material reorganization of a Group Company;

 

(x)         
enter into or adopt any employee benefit plan or employment or severance agreement, or amend any Plan, except to the extent required
by Law or as expressly contemplated by this Agreement;

 

(xi)        
hire any new officers or employees at an annual salary in excess of One Hundred Thousand Dollars ($100,000) or terminate the services
of any existing officers or employees, make any change in the rate of compensation, commission, bonus, or other direct or indirect remuneration
payable, or agreed to pay, conditionally or otherwise, any bonus, incentive, retention, change in control payment or other compensation,
retirement, welfare, fringe or severance benefit or vacation pay, to or in respect of any employee, officer or director of the Group Companies,
except (A) in connection with promotions or periodic reviews of employees (but not directors or officers) in the ordinary course of business,
or (B) to the extent required by any Plan disclosed in Section 3.19(a) of the Company Disclosure Schedule;

 

(xii)       
file or cause to be filed any Tax Return with respect to any Group Company other than in accordance with past practice, amend any
Tax Return, enter into any closing agreement, make or change any Tax election, change any Tax method of accounting, or agree to extend
the statute of limitations in respect of any Taxes;

 

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(xiii)      
 change the Accounting Principles, accounting policies or procedures of a Group Company;

 

(xiv)      
change the fiscal year of a Group Company;

 

(xv)      
settle or compromise any pending or threatened Litigation in such a manner as to create any material obligations on the Group Companies
that would not be fully performed prior to the Closing;

 

(xvi)      
fail to invoice customers and collect accounts receivable, timely pay Taxes and other Liabilities when due and pay or perform other
material obligations when due, in each case in the ordinary course and in a manner consistent with past practice;

 

(xvii)    
accelerate the collection of accounts receivable, other than in the ordinary course of business and in a manner consistent with
past practice;

 

(xviii)   
cancel or terminate any of the Insurance Policies or permit any of the coverage thereunder to lapse, unless simultaneously with
such termination, cancellation or lapse, replacement policies providing coverage equal to or greater than the coverage under such cancelled,
terminated or lapsed Insurance Policies are in full force and effect;

 

(xix)      
enter into any Affiliate Agreement; or

 

(xx)       
authorize, agree, resolve, or consent to any of the foregoing.

 

5.2.       
Access to Information.

 

During the period from the date
hereof through the earlier to occur of the Closing Date and the termination of this Agreement, the Company shall, and shall use commercially
reasonable efforts to cause the other Group Companies to, provide Parent, Merger Sub, and their respective authorized representatives
reasonable access during regular business hours to all offices, facilities, books and records of the Group Companies as Parent may reasonably
request; provided, that (a) Parent and its representatives shall take such action as is deemed necessary in the reasonable
judgment of the Company to schedule such access and visits through a designated officer of the Company and in such a way as to avoid disrupting
in any material respect the normal business of the Group Companies, (b) the Group Companies shall not be required to take any action
which would constitute a waiver of the attorney-client or other privilege and (c) no Group Company will be required to supply Parent
with any information that, in the reasonable judgment of such Group Company after consulting with outside counsel, such Group Company
is under a contractual or legal obligation not to supply; provided that the Company shall use commercially reasonable efforts to
cause such Group Company to use its commercially reasonable efforts to obtain a waiver of such obligation or otherwise take such action
as is needed to enable Parent to have access to such information.

 

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5.3.       
Consents; Approvals; Efforts, Regulatory and Other Authorizations.

 

(a)            Subject
to the terms and conditions of this Agreement, each of the Company, the Stockholders’ Representative, Parent, and Merger Sub
shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things
necessary or desirable under applicable Law to consummate and make effective, in the most expeditious manner practicable, the
Contemplated Transactions, including, but not limited to (a) preparing and filing as promptly as practicable with any Governmental
Authority all documentation necessary to effect all filings, notices, petitions, statements, registrations, submissions of
information, applications and other documents, (b) obtaining and maintaining all approvals, consents, registrations, permits,
authorizations, waivers and other confirmations, in each case, required to be made with or obtained from any Governmental Authority
that are necessary, proper or advisable to consummate the transactions contemplated by this Agreement (collectively, the
 “Regulatory Approvals”); provided that neither Parent, Merger Sub, nor their respective Affiliates shall
have any obligation to make payments to any third party in connection with obtaining any Regulatory Approvals, (c) obtaining the
consents, waivers, approvals, orders and authorizations (the “Third Party Approvals”) under Contracts of the
Company that require any such consent, waiver, approval, order or authorization, and (d) fulfilling all conditions to this Agreement
(provided that the foregoing shall in no event be interpreted to require any party to waive any condition precedent to its
obligations to close the Contemplated Transactions). Each party shall furnish to the other parties all reasonably necessary
information required for any application or other filing to be made pursuant to any applicable Law in connection with the
Contemplated Transactions.

 

(b)          
Each of Parent and the Company agree to promptly inform the other party of any material communication made to or received from
any Governmental Authority and of any understandings, undertakings or agreements (oral or written) such party proposes to make or enter
into with any Governmental Authority concerning the Contemplated Transactions and/or the notice set forth in Section 5.3(b).  Each
of Parent and the Company shall: (i) promptly notify the other of, and if in writing, promptly furnish the outside legal counsel for the
other with copies of (or, in the case of oral communications, advise the other of the contents of) any material communication to such
party from a Governmental Authority relating to the Contemplated Transactions and permit the other to review and discuss in advance (and
to consider in good faith any comments made by the other in relation to) any proposed material communication to a Governmental Authority,
provided that materials may be redacted (A) to remove references concerning the valuation of the Company, (B) as necessary to comply with
contractual arrangements and (C) as necessary to address reasonable attorney-client or other privilege or confidentiality concerns; and
(ii) keep the other reasonably informed of any developments, meetings or discussions with any Governmental Authority in respect of any
filings, investigation or inquiry concerning the Contemplated Transactions and/or any notices sent pursuant to this Section 5.3, including
providing the other with reasonable advance notice to participate in all material meetings and/or calls.

 

(c)             In
furtherance and not in limitation of the foregoing, each of Parent and the Company agree to use commercially reasonable efforts to
take promptly any and all steps and actions necessary to avoid, eliminate or resolve each and every impediment and obtain all
clearances, consents, approvals and waivers that may be required by any Governmental Authority, so as to enable the parties to close
the Contemplated Transactions as soon as practicable.  In furtherance and not in limitation of the foregoing, from the date
hereof until the Closing, the Company shall (i) use reasonable best efforts to file, make or obtain, as applicable, all
registrations, filings, applications, notices, consents, approvals, orders, qualifications and waivers listed on Section 5.3(c) of
the Company Disclosure Schedule, and (ii) shall make any payments required to accomplish the foregoing (and to the extent such
payments are not made prior to the Closings, they shall be Transaction Expenses).

 

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(d)           
In furtherance and not in limitation of the foregoing, any consent, if approval or authorization necessary to preserve any right
or benefit under any Contract to which the Company or Company Subsidiary is a party is not obtained prior to the Closing, the Stockholders
Representative shall, at his sole expense, subsequent to the Closing, reasonably cooperate with Parent and the Company in attempting to
obtain such consent, approval or authorization as promptly thereafter as practicable.

 

(e)           
In furtherance and not in limitation of the foregoing, the Company shall use commercially reasonable efforts to obtain the adoption
of this Agreement by its stockholders to the extent required by the DGCL and the Company’s Organizational Documents for the consummation
of the Merger.  Without limiting the generality of the foregoing, as promptly as practicable following the execution and delivery
of this Agreement, the Company shall submit this Agreement to the Company’s stockholders for adoption at a meeting of the Company’s
stockholders or by written consent of the Company’s stockholders, which shall be called and held or solicited, as the case may be,
in accordance with the requirements of the DGCL and the Company’s charter and any other applicable organizational documents in order
to obtain the necessary approval under the DGCL.

 

5.4.        
Tax Matters.

 

(a)          
The Surviving Corporation shall prepare, or cause to be prepared, and file, or cause to be filed, on a timely basis all Tax Returns
of the Surviving Corporation that are due (taking into account permitted extensions that have been granted) after the Closing Date and
that reflect any liability for Pre-Closing Taxes. The Surviving Corporation shall provide the Stockholders’ Representative with
a draft copy of each such Tax Return which is an Income Tax Return at least thirty (30) days prior to the filing of such Tax Return (taking
into account permitted extensions that have been granted) for its review and
comment and, with respect to each such Income Tax Return, shall consider in good faith any reasonable changes requested by the Stockholders’
Representative; provided that (i) such changes are not inconsistent with prior practice and (ii) such changes will not have any adverse
effect on the Surviving Corporation or the other Group Companies after the Closing Date. The Stockholders are jointly and severally responsible
for any liability for Pre-Closing Taxes shown as due on any Tax Returns filed pursuant to this Section 5.4(a) and, to the extent paid
by the Surviving Corporation, the Surviving Corporation shall be entitled to be reimbursed by deduction from the Indemnity Escrow Account;
provided, that if the Indemnity Escrow Account shall be insufficient to fund the remainder of the amounts payable pursuant to this Section
5.4(a), then the Stockholders shall reimburse Surviving Corporation for the amount that such payments exceed the Indemnity Escrow Account
within five (5) Business Days following notice by Parent to the Stockholders’ Representative that it has paid such Taxes (such payment
by the Stockholders to be by wire transfer to the account designated by Parent) for the amount of any Tax liabilities with respect to
such returns that are Pre-Closing Taxes that were unpaid as of the Closing Date.

 

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(b)            The Surviving Corporation, the Stockholders’ Representative and Parent shall cooperate fully, as and to the extent reasonably
requested by any party hereto, in connection with (i) the filing of Tax Returns pursuant to this Article V, (ii)
any other Tax Returns required to be filed in connection with the Contemplated Transactions (including required filings under Section
6043 or Section 6043A of the Code or the Treasury Regulations thereunder), and (iii) any Tax Contest. Such cooperation shall include
the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any
such Tax Return or Tax Contest and making employees available on a mutually convenient basis to provide additional information and explanation
of any material provided hereunder. Parent, the Surviving Corporation and the Stockholders’ Representative agree (x) to retain
all books and records with respect to Tax matters pertinent to the Group Companies relating to any taxable period beginning before the
Closing Date until the expiration of the statute of limitations (and, to the extent notified by Parent, the Surviving Corporation or
the Stockholders’ Representative, any extensions thereof) of the respective taxable periods, and to abide by all record retention
agreements entered into with any Taxing Authority, and (y) to give each other reasonable written notice prior to transferring, destroying
or discarding any such books and records and, if the other so requests, the Surviving Corporation or the Stockholders’ Representative,
as the case may be, shall allow the other to take possession of such books and records.

 

(c)            
Transfer Taxes shall be borne equally by the Stockholders and Parent. The party required to file under applicable Tax Law
shall (i) timely prepare all necessary Tax Returns with respect to all such Transfer Taxes, (ii) shall provide
a draft copy of such Tax Returns and other documentation to other party at least ten (10) days prior to the due date for such Tax Returns
for its review and comment and shall incorporate all comments made by such other party, and (iii) shall timely
file or cause to be filed all such Tax Returns, and Parent and the Surviving Corporation shall reasonably cooperate with the Stockholders’
Representative as may be necessary to effectuate such filings.

 

(d)           
All Tax Sharing Agreements with respect to or involving a Group Company shall have been terminated no later than the Closing Date
and, after the Closing Date, the Surviving Corporation shall not be bound thereby or have any liability thereunder. The Stockholders and
the Company shall take all actions necessary to terminate such Contracts.

 

(e)            
Any refunds (including, for the avoidance of doubt, overpayments of estimated taxes) of Taxes of the Company for any taxable periods
(or portions thereof) ending on or before the Closing Date actually received by Parent or the Surviving Corporation will be for the benefit
of the Stockholders, and the Parent will forward such refunds, together with any interest thereon but less any expenses incurred in connection
with obtaining such refund and any Taxes due with respect to such refund, as directed by Stockholders’ Representative within thirty
(30) days of receipt’ provided, however, that such refund was either (y) requested by the Stockholders’ Representative
or (z) specifically identified by the Stockholders’ Representative, in each case, prior to the Closing Date or such refund is reflected
on a Tax Return for a taxable period ending on or before the Closing Date or a Straddle Period that is first due after the Closing Date
and provided further, for the avoidance of doubt, Stockholders shall not be entitled to: (A) any refund to the extent
such refund relates to a carryback of a Tax attribute from any period (or portion thereof) beginning after the Closing Date; (B) any
refund or credit for Tax that gives rise to a payment obligation by Parent, the Company, the Surviving Corporation or any of their Affiliates,
to any Person under applicable Law or pursuant to a provision of a contract or other agreement entered (or assumed) by Buyer, the Company
or any of their Affiliates, on or prior to the Closing Date, but only to the extent of such payment obligation; or (C) any refund to
the extent such refund was included as an asset in determining the Final Closing Consideration. The amount of any refund payable to the
Stockholders with respect to any Straddle Period shall be determined in the same manner and using the same principles as the determination
of the Stockholders’ Pre-Closing Date Share. Notwithstanding the foregoing, if Parent, the Company, the Surviving Corporation or
any of their Affiliates is required to return any refund to the applicable Taxing Authority, Stockholders’ Representative shall
return such refund, together with any associated interest and related out-of-pocket costs reasonably incurred by the Parent, the Company,
the Surviving Corporation or their Affiliates, no later than ten (10) days after the Parent, the Company, the Surviving Corporation or
their Affiliates provide notice to Stockholders’ Representative that return of such refund is required.

 

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(f)            
Notwithstanding any provision of this Agreement to the contrary, all Tax deductions and credits attributable to the expenses of
the Company relating to or arising from the Contemplated Transactions shall be allocated to the Pre-Closing Tax Period (and reported accordingly
for Tax purposes) to the extent permitted by applicable Law. The Parties agree that any Tax Returns filed after the Closing Date shall
elect the safe harbor election described in IRS Revenue Procedure 2011-29 with respect to any “success-based fee” described
in Treasury Regulation Section 1.263(a)-5(f) relating to the Contemplated Transactions.

 

(g)           
Parent shall not be permitted to make an election under Section 338(g) or 336(e) of the Code (or any similar provision of state
or local Law) with respect to the transactions contemplated by this Agreement.

 

(h)            Without
the prior written consent of the Stockholders’ Representative (such consent not to be unreasonably withheld, conditioned or
delayed), Purchaser shall not take any of the following actions (or cause the Company to take any of the following actions) if such
action would or would reasonably be expected to result in any Tax liability that would form the basis of a claim for indemnification
under this Agreement: (A) amend or permit the Company to amend any Tax Return relating to a taxable period ending on or before the
Closing Date, (B) extend or waive, or cause or permit to be extended or waived, any statute of limitations or other period for the
assessment of any Tax or deficiency related to a taxable period ending on or before the Closing Date, or (C) make or change any
material Tax election that has retroactive effect to any taxable period ending on or before the Closing Date (each a
 “Specified Proceeding”). For each Specified Proceeding to which the Stockholders’ Representative does
consent, Parent (i) shall diligently prosecute such Specified Proceeding in good faith, (ii) shall keep the Stockholders’
Representative reasonably informed of the status of developments with respect to such Specified Proceeding, (iii) provide the
Stockholders’ Representative with copies of all written materials related to such Specified Proceeding and provide the
Stockholders’ Representative with a draft of any filings or submissions with respect to such Specified Proceeding (and Parent
shall incorporate any reasonable comments requested by the Stockholders’ Representative thereon), and (iv) allow the
Stockholders’ Representative to participate in all discussions and meetings with a Governmental Authority in connection with
such Specified Proceeding. Any (i) out-of-pocket expenses incurred by Parent or any Group Company and (ii) Taxes payable by Parent
or any Group Company, in each case, pursuant to the settlement or other resolution of a Specified Proceeding shall be paid by the
Stockholders’ Representative to Parent (or its designee) within five (5) Business Days after a written demand from Parent.

 

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5.5.         
Confidentiality.

 

(a)            
Each of the parties hereto acknowledges and agrees that the Non-Disclosure Agreement, dated January 29, 2021 (the “NDA”),
between Parent and the Company, shall remain in full force and effect until the Closing and that any books and records, data and other
information provided to the Company, the Stockholders’ Representative, the Stockholders, Parent and Merger Sub between the date
hereof and the Closing shall be considered Confidential Information (as such term is defined in the NDA) and afforded all protections
provided therein.

 

(b)            
Following the Closing, each Stockholder shall not, and shall cause its Affiliates and its and their respective Representatives
not to, directly or indirectly, for a period of two (2) years after the Closing Date, without the prior written consent of Parent, disclose
to any third party any information, whether written or oral, related to the Company or their respective businesses; provided, that
the foregoing restriction shall not (i) apply to any information (A)  generally available to, or known by, the public (other than
through fault of the Stockholders or any of the Stockholders’ Affiliates or its and their respective Representatives) or (B) lawfully
acquired by the such Stockholder after Closing from sources not prohibited from disclosing such information by a legal, contractual or
fiduciary obligation, or (ii) prohibit any disclosure (A) required by Law, (B) made in connection with the enforcement of any right or
remedy relating to this Agreement, the other Ancillary Documents or the Contemplated Transactions, (C) if such Stockholder is an employee
of the Company following the Closing, by such Stockholder to the extent necessary to fulfill such Stockholder’s duties as such an
employee, or (D) if such Stockholder is a limited liability company or limited partnership, by such Stockholder to its members or limited
partners to the extent such disclosure is included in non-public communications to such members or limited partners and such members or
limited partners are contractually bound to maintain the confidentiality of such information pursuant to their investment agreements.
If a Stockholder or any of its Affiliates or its and their respective Representatives are compelled to disclose any information by judicial
or administrative process or by other requirements of Law, such Stockholder promptly will notify Parent in writing, cooperate with Parent
and the Company in their efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment will
be accorded such information, and disclose only that portion of such information such Stockholder is advised by counsel is legally required
to be disclosed.

 

5.6.         
Indebtedness; Transaction Expenses.

 

The Company shall, and
shall use commercially reasonable efforts to cause the other Group Companies to, pay, satisfy, and discharge prior to or at the
Closing from the Cash balances of the Group Companies (i) any and all Indebtedness of the Group Companies so that immediately after
the Closing none of the Surviving Corporation or the other Group Companies shall have any liability or responsibility with regard to
any such Indebtedness, and (ii) any and all Transaction Expenses owed to Persons by the Company so that immediately after the
Closing the Surviving Corporation shall have no liability or responsibility with regard to such Transaction Expenses; provided,
however, the preceding sentence shall not apply to the Pending Litigation Matter, which shall be satisfied in accordance with the
requirements and timing of an Order and/or a final and binding settlement that terminates the Pending Litigation Matter including an
Order dismissing the Pending Litigation Matter with prejudice.

 

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5.7.         
Exclusivity.

 

From the date hereof until the
earlier to occur of the Closing Date and the termination of this Agreement, neither the Company nor the Stockholders’ Representative
shall solicit, encourage or facilitate (including by way of providing information regarding the Group Companies or their businesses to
any Person or providing access to any Person) any inquiries, discussions or proposals regarding, continue or enter into discussions or
negotiations with respect to, or enter into or consummate any agreement or understanding in connection with any proposal regarding, any
purchase or other acquisition of all or any portion of the assets or properties of Group Companies (other than the sale of products or
services in the ordinary course of business and in a manner consistent with past practice) or any Equity Securities of any Group Company,
any merger, business combination or recapitalization involving a Group Company, the liquidation, dissolution or reorganization of a Group
Company, or any similar transaction, and the Company shall use commercially reasonable efforts to cause the other Group Companies and
its and their respective Representatives to refrain from any of the foregoing. The Stockholders’ Representative shall promptly notify
Parent if any such inquiries or proposals are received by, any such information is requested from, or any such negotiations or discussions
are sought to be initiated or continued with, any of the Stockholders’ Representative, the Group Companies, the Stockholders or
their respective Representatives.

 

5.8.         
Public Announcements.

 

The timing and content of all
press releases or public announcements regarding any aspect of this Agreement, any Ancillary Document, or the Contemplated Transaction
to the financial community, government agencies or the general public shall be mutually agreed upon in advance by Parent and the Stockholders’
Representative. Notwithstanding the foregoing, each such party may make any such announcement which it in good faith believes, based on
advice of counsel, is required by Law or any listing agreement with any national securities exchange to which such party is subject; provided,
that such party shall consult with the other party prior to any such announcement to the extent practicable, and shall in any event promptly
provide the other party with copies of any such announcement.

 

5.9.         
Notice of Developments.

 

From and after the Closing
Date, the Stockholders’ Representative shall promptly notify Parent of (a) any notice or other communication from any Person
challenging the Contemplated Transactions, (b) any notice or other oral or written communication from any Governmental Authority in
connection with or relating to the Contemplated Transactions, and (c) any Event that constitutes, or would reasonably be expected to
constitute as of the Closing Date, a breach or violation of any representation, warranty, covenant or agreement of the Company under
this Agreement; provided that no disclosure by the Stockholders’ Representative pursuant to this Section 5.9, or any
other communication from the Stockholders’ Representative after the date hereof, shall be deemed (i) to amend or supplement
the Company Disclosure Schedule or exhibits attached hereto or the representations and warranties contained in this Agreement, (ii)
to prevent or cure any misrepresentation or breach of warranty, (iii) to affect in any way the indemnification provided under
Section 8.2(a), or (iv) to otherwise prejudice any right or remedies of the Parent Indemnitees.

 

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5.10.       
Termination of Affiliated Loans.

 

The Company shall cause all
Affiliated Loans to be repaid, satisfied, discharged, and terminated at or prior to the Closing (including, as necessary, offsetting amounts
owed to the Group Companies against amounts to be paid to a Stockholder pursuant to this Agreement). The Company shall also cause all
Affiliate Agreements, except for those set forth on Section 3.8(b) of the Company Disclosure Schedule, to be terminated at or prior to
Closing.

 

5.11.       
Retention Plan.

 

(a)          
Concurrently with the Closing, Parent, the Company and the Stockholders’ Representative shall establish a performance and
retention plan that will be implemented by the Surviving Corporation following the Closing (the “Retention Plan”).
The Retention Plan shall (a) provide for payment to certain management employees of an aggregate amount of Fifteen Million Dollars ($15,000,000)
in cash or stock, as may be agreed upon in the Retention Plan, over a three (3)-year period allocated Five Million Dollars ($5,000,000)
each year respectively, (b) condition such payments to each such employee to such employee remaining continuously employed by the Surviving
Corporation from the Closing Date through the date each such payment is made, (c) condition such payments to each such employee achieving
certain performance targets consistent with projections as may be agreed upon in the Retention Plan, (d) condition such payments on each
such employee agreeing to be bound by customary restrictive covenants, (e) provide each such employee with the right to elect to have
such payments made in the form of cash and/or shares of Parent Common Stock, and (f) contain such other terms and conditions as may be
mutually agreed between Parent and the Stockholders’ Representative.

 

(b)           
With respect to any payment to be made under the Retention Plan, (A) Parent shall have the option to determine whether a recipient
receives a portion of the amount to which such recipient is entitled to receive in the form of shares of Parent Common Stock rather than
in cash (other than those recipients to whom the issuance of shares of Parent Common Stock would result in Parent failing to comply with
the Securities Act and/or the rules, regulations and requirements of NASDAQ, which recipients shall receive such payment solely in the
form of cash); provided that (w) such recipient is an “accredited investor” as defined in Rule 501(a) under the Securities
Act, (x) the issuance by Parent of such shares to such Stockholder would not result in Parent failing to comply with the Securities Act
or the rules, regulations and requirements of NASDAQ, (y) such recipient delivers to Parent, prior to the expiration of the fiscal year
to which such payment relates, a written notice indicating such recipient’s desire to receive such payment in the form of shares
of Parent Common Stock and (z) such recipient thereafter cooperates with Parent and provides Parent with such other information and documentation
as Parent may request in order to effect such issuance of shares to such recipient. In the event that any portion of any such payment
is to be paid in the form of shares of Parent Common Stock pursuant to this Section 5.11 (Retention Plan), the number of shares to be
issued in respect of such payment shall be equal to (I) the amount of such payment payable to such recipient which is being paid in shares
of Parent Common Stock divided by (II) the VWAP as of December 31 of the fiscal year to which such payment shall be applicable.

 

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5.12.       
Non-Competition and Non-Solicitation.

 

(a)           
Dr. Goodarzi, for and on behalf of himself and his Affiliates, covenants and agrees not to, for a period of five (5) years after
the Closing Date and within the Restricted Area, engage in any activity which is competitive with the businesses of the Company, directly
or indirectly, as a shareholder, member, partner, owner, joint venture, investor, lender or in any other capacity whatsoever (other than
as an employee or service provider of the Company, Parent or an Affiliate of Parent). Notwithstanding the foregoing, Dr. Goodarzi may
own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if Dr. Goodarzi
is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own 2% or more
of any class of securities of such Person.

 

(b)             Dr.
Goodarzi, for and on behalf of himself and his Affiliates, hereby covenants and agrees not to, for a period of five (5) years after
the Closing Date and within the Restricted Area, (i) directly or indirectly solicit or knowingly induce, or attempt to induce, for
employment by Dr. Goodarzi or any Affiliate of Dr. Goodarzi, any Person who is an employee of the Company, or (ii) solicit,
knowingly induce, or attempt to induce any customer of the Company or its business, or any customer, client, consultant, independent
contractor, vendor, supplier, or partner of the Company or its business, to terminate, diminish, or materially alter in a manner
harmful to Parent, any of Parent’s Affiliates or the Company, its relationship or their relationships with Parent, any of
Parent’s Affiliates, or the Company (including, without limitation, by making any disparaging statements or communications
regarding Parent, its Affiliates, or the Company); provided that the foregoing restrictions shall not apply to general
solicitations that are not specifically directed to customers, clients, consultants, independent contractors, vendors, suppliers or
partners of Parent, the Company or its Affiliates; provided further, that Dr. Goodarzi and his Affiliates shall not be
prevented from soliciting or inducing (x) any employee whose employment has been terminated by the Company, and who is not employed
by Parent or any of its Affiliates, prior to any solicitation, inducement or attempted inducement by Dr. Goodarzi or (y) after one
hundred and eighty (180) days from the date of termination of employment, any employee whose employment was voluntarily terminated
by the employee.

 

(c)           
Dr. Goodarzi hereby acknowledges and confirms that (i) the provisions of this Section 5.12 are reasonable and necessary to protect
the interests of Parent and the Company, (ii) any violation of this Section 5.12 will result in an immediate, irreparable injury to Parent
and the Company, (iii) damages at law would not be reasonable or adequate compensation to Parent and the Company for violation of this
Section 5.12, and (iv) in addition to any other available remedies, Parent and the Company shall be entitled to seek to have the provisions
of this Section 5.12 specifically enforced by preliminary and permanent injunctive relief without the necessity of proving actual damages
or posting a bond or other security. In the event that the provisions of this Section 5.12 (Non-Competition and Non-Solicitation) shall
ever be deemed to exceed the time, geographic scope or other limitations permitted by applicable Law, then the provisions shall be deemed
reformed to the maximum extent permitted by applicable Law.

 

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5.13.       
Release.

 

Effective
as of the Closing, Dr. Goodarzi (on behalf of himself and his Affiliates, agents, trustees, beneficiaries, estate, heirs, successors and
assigns (other than Company)) (each a “Releasor”) hereby: (a) represents and warrants that the Releasors have no Claims,
other than Excluded Claims, against the Company, Parent, or any of their respective Affiliates, partners, stockholders, representatives,
predecessors, successors, related entities or assigns in their respective capacities as such (collectively, the “Releasees”),
with respect to the Company or its respective businesses; (b) irrevocably and unconditionally releases the Releasees from any and all
charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages or causes of action, choses in action,
suits, rights, demands, costs, Losses, debts and expenses (including all attorneys’ fees and costs incurred) of any kind or nature
whatsoever, known or unknown, suspected or unsuspected, existing or prospective, relating to the Company, its respective businesses, or
the Contemplated Transactions (collectively, “Claims”); provided, that the foregoing release does not include Claims
arising from or related to any rights of Releasor (i) under this Agreement or any other Ancillary Document to which Releasor is a party,
(ii) if Releasor is an employee of the Company, to any employment compensation or benefits accrued in the normal course for employment
services rendered that are due and owing to Releasor but unpaid as of the Closing, or (iii) with respect to claims that cannot be released
as a matter of law (collectively, “Excluded Claims”); provided further, that Releasor expressly acknowledges that the
release contained in this Section 5.13 (Release) applies to all Claims as defined above, whether such Claims are known or unknown, and
includes Claims which if known by the releasing party might materially affect its decision to grant the release contained in this paragraph,
and that Releasor has considered and taken into account the possible existence of such Claims in determining to execute and deliver this
Agreement, and Releasor expressly waives any rights or benefits under §1542 of the California Civil Code, or comparable laws as may
apply, which provides: “A general release does not extend to claims which the creditor does not know or suspect to exist in his
or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with
the debtor”; (c) irrevocably and unconditionally covenants and agrees not to assert any suit, demand, litigation, lawsuit, action
or claim against any Releasee regarding any Claim released under this Section 5.13 (Release); and (d) represents, warrants, covenants
and agrees that no Claim or possible Claim against any Releasee has been or will be assigned or transferred, and agrees to indemnify and
hold the Releasees harmless from any liability or damages arising as a result of any such assignment or transfer.

 

5.14.       
Magmotors Technologies 401(k) Plan. The Company’s current chief executive officer, Dr. Goodarzi, shall arrange to
have a 401(k) plan qualified under Sections 401(a) and (k) of the Code established at Magmotors Technologies to which the accounts of
employees of Magmotors Technologies in the US Hybrid 401(k) Investment Plan can be transferred on or before December 31, 2021, and shall
cooperate with the Parent to arrange such transfers.

 

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5.15.       
Disclosure Schedules.

 

(a)             The
parties hereto acknowledge that, in the interest of time, this Agreement has been executed and delivered by such parties on the date
hereof prior to completion of the Company Disclosure Schedule and the Parent Disclosure Schedule. Following the date hereof, the
parties hereto shall negotiate in good faith and use best efforts to mutually agree upon a final version of the Company Disclosure
Schedule and the Parent Disclosure Schedule as promptly as practicable, and in any event within the fifteen (15)-day period
immediately following the date hereof. Upon reaching mutual agreement on the Company Disclosure Schedule and the Parent Disclosure
Schedule, such schedules shall be attached to this Agreement and treated for all purposes hereunder as if such schedules had been
attached to this Agreement and delivered on the date hereof. For the avoidance of doubt, neither the Company nor the Parent shall be
deemed to be in breach of its representations and warranties set forth herein from the date hereof until mutual agreement is reached
on the Company Disclosure Schedule and the Parent Disclosure Schedule. In the event that the parties hereto are unable to agree upon
the Company Disclosure Schedule and the Parent Disclosure Schedule prior to the expiration of such fifteen (15)-day period, Parent
shall have the right, exercisable in its sole discretion by providing written notice to the Stockholders’ Representative at
any time prior to reaching mutual agreement on the Company Disclosure Schedule and the Parent Disclosure Schedule, to terminate this
Agreement.

 

5.16.       
Pending Litigation Matter.

 

(a)           
 After the date of this Agreement, the Company shall not settle or take any action in the Pending Litigation Matter without the
express written consent of Parent. The parties agree that after the Closing, Dr. Goodarzi shall have the sole authority and ability to
control and direct the Company’s defense and overall litigation strategy in the Pending Litigation Matter; provided, that
(i) Dr. Goodarzi shall regularly consult with Parent and keep Parent reasonably informed of progress with respect to the matter and shall
not settle the Pending Litigation Matter without the express written consent of Parent, which such consent shall not be unreasonably withheld,
(ii) if at any time Dr. Goodarzi elects to change current counsel to the Company in connection with the Pending Litigation Matter, Parent
shall have the right to approve any replacement counsel, and (iii) if the Pending Litigation Matter is not subject to an enforceable and
final settlement agreement including an Order dismissing the Pending Litigation Matter with prejudice, subject to a final, non-appealable
Order, or is in any way still active twelve (12) months after the Closing Date, then Parent shall have the right to assume sole authority
and ability to control the Pending Litigation Matter.

 

(b)           
In the event that the post-Closing Date resolution of the Pending Litigation Matter results in an award of cash proceeds to the
Surviving Corporation, then after the Surviving Corporation applies such proceeds to the satisfaction of any and all costs and expenses
incurred in connection with defending and prosecuting the Pending Litigation Matter (including, without limitation, attorneys’ fees
and expenses incurred by the Company or Parent on behalf of the Company) (the “PLM Costs”), Parent covenants and agrees
to cause the Company to pay any such excess, net proceeds to Dr. Goodarzi.

 

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ARTICLE VI

Conditions to Closing

 

6.1.        
Conditions to the Obligations of the Company.

 

The obligations of the Company
to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following conditions
(any or all of which may be waived in whole or in part by the Stockholders’ Representative):

 

(a)      Representations
and Warranties. (i) The Fundamental Representations of Parent and Merger Sub shall be true and correct in all respects as of the
date when made and as of the Closing Date, except for those Fundamental Representations of Parent and Merger Sub made as of a specified
date, which shall be measured only as of such specified date, and (ii) the representations and warranties of the Parent and Merger Sub
in this Agreement (other than the Fundamental Representations) shall be true and correct (without giving effect to any “materiality”
or “Material Adverse Effect” qualifications) in all material respects as of the date when made and as of the Closing Date,
except for such representations and warranties made as of a specified date, which shall be measured only as of such specified date.

 

(b)      Performance. Parent and Merger Sub shall have performed and complied in all material respects with all agreements and covenants
required by this Agreement to be so performed or complied with by Parent and Merger Sub at or prior to the Closing.

 

(c)      Deliveries.
The Stockholders’ Representative shall have received the deliveries contemplated by Section 7.2.

 

(d)    
No Injunction. No Governmental Authority or federal or state court of competent jurisdiction shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, executive order, decree, judgment, injunction or other order or notice
(whether temporary, preliminary or permanent), in any case which is in effect and which prevents or prohibits consummation of the Contemplated
Transactions.

 

6.2.         
Conditions to the Obligations of Parent and Merger Sub.

 

The obligations of Parent and
Merger Sub to consummate the Contemplated Transactions are subject to the fulfillment at or prior to the Closing of each of the following
conditions (any or all of which may be waived in whole or in part by Parent):

 

(a)     
Representations and Warranties. (i) The Fundamental Representations of the Company shall be true and correct in all respects
as of the date when made and as of the Closing Date, except for those Fundamental Representations of the Company made as of a specified
date, which shall be measured only as of such specified date, and (ii) the representations and warranties of the Company in this Agreement
(other than the Fundamental Representations) shall be true and correct (without giving effect to any “materiality” or “Material
Adverse Effect” qualifications) in all material respects as of the date when made and as of the Closing Date, except for such representations
and warranties made as of a specified date, which shall be measured only as of such specified date.

 

(b)      Performance.
The Company and the Stockholders’ Representative shall have performed and complied in all material respects with all agreements
and covenants required by this Agreement to be so performed or complied with by the Company at or prior to the Closing.

 

(c)     
Deliveries. Parent shall have received the deliveries contemplated by Section 7.1.

 

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(d)  
 No Material Adverse Effect. Since the date hereof, there shall have been no Event that has had, or would reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect on the Group Companies.

 

(e)  
Regulatory Approvals. All of the Regulatory Approvals set forth in Section 6.2(e) of the Company Disclosure Schedule shall
have been obtained or made at or prior to the Closing, in each case in form and substance satisfactory to Parent.

 

(f)   
Third Party Approvals. All of the Third Party Approvals set forth in Section 6.2(f) of the Company Disclosure Schedule shall
have been obtained or made at or prior to the Closing, in each case in form and substance satisfactory to Parent.

 

(g)  
Indebtedness. The Company shall not have any Indebtedness, including, without limitation, any unforgiven Indebtedness related
to loans provided under the CARES Act or any related Laws (each, a “PPP Loan”).

 

(h)  
Transaction Expenses. There shall be no accrued but unpaid Transaction Expenses.

 

(i)    
Securities Approvals. The Contemplated Transactions shall not require any approvals, consents, registrations, permits, authorizations,
waivers or other confirmations to be obtained from, or any filings, notices, petitions, statements, registrations, submissions of information,
applications or other documents to be made with or submitted to, any Securities Authority, in each case which have not been so obtained,
made or submitted.

 

(j)    
No Injunction. No Governmental Authority or federal or state court of competent jurisdiction shall have enacted, issued,
promulgated, enforced or entered any statute, rule, regulation, executive order, decree, judgment, injunction or other order or notice
(whether temporary, preliminary or permanent), in any case which is in effect and which prevents or prohibits consummation of the Contemplated
Transactions.

 

(k)  
Termination of Magmotors Technologies Participation in Company 401(k) Plan. Magmotors Technologies as of the Closing Date
(as a Participating Employer in the US Hybrid 401(k) Investment Plan) has terminated or otherwise discontinued or revoked its participation
in the US Hybrid 401(k) Investment Plan as described and allowed under section 11.7 of the Benefit Consultants Group, Inc. Defined Contribution
Prototype Plan and Trust Plan Document.

 

ARTICLE VII

Deliveries by the Company at Closing

 

7.1.           
Deliveries by the Company at Closing.

 

On the Closing Date, the Company
shall deliver or cause to be delivered to Parent:

 

(a)              
Written resignations, dated as of the Closing Date, of each of the officers and directors of the Company requested by Parent, in
form and substance satisfactory to Parent.

 

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(b)              
 Documentation evidencing the repayment or satisfaction in full, and discharge and termination, of all Indebtedness, including
payoff letters, UCC termination statements and documentation evidencing the release of Liens relating thereto, as applicable, in form
and substance satisfactory to Parent.

 

(c)              
(1) A properly completed and duly executed IRS Form W-9 or W-8, as applicable, from each Stockholder, and (2) an affidavit certifying
that interests in the Group Companies are not “United States real property interests” (within the meaning of Section 897 of
the Code), dated as of the Closing Date, signed under penalties of perjury, and otherwise in form and substance as required by Treasury
Regulations Sections 1.1445-2(c) and 1.897-2(h), together with the notice to the IRS required by Treasury Regulations Section 1.897-2(h)(2).

 

(d)              
An officer’s certificate signed by the chief executive officer of the Company and the Stockholders’ Representative
to the effect set forth in Section 6.2(a) (Representations and Warranties), 6.2(b) (Performance), 6.2(d) (No Material Adverse Effect),
6.2(e) (Regulatory Approvals), 6.2(f) (Third Party Approvals), 6.2(g) (Indebtedness), and 6.2(h) (Transaction Expenses).

 

(e)              
A certificate, signed by the secretary of the Company and dated as of the Closing Date, certifying that (a) attached thereto is
a true, correct and complete copy of the certificate of incorporation and bylaws of the Company as in effect on the date of such certification,
(b) attached thereto is a true, correct and complete copy of the resolutions adopted by the board of directors of the Company authorizing
the execution, delivery and performance of this Agreement and the Ancillary Documents, and that such resolutions are in full force and
effect, and (c) attached thereto is a true, correct and complete copy of resolutions of the Stockholders duly authorizing and adopting
the execution, delivery and performance of this Agreement and the Ancillary Documents, and that such resolutions are in full force and
effect.

 

(f)               
Certificates of the Secretary of State of the applicable states of incorporation, which certificates shall be of a reasonably recent
date, as to the due incorporation and good standing (or equivalent) of each Group Company.

 

(g)              
Certificates representing all of the Capital Stock, endorsed in blank or accompanied by duly executed stock powers, free and clear
of all Liens.

 

(h)              
An escrow agreement (the “Escrow Agreement”), in form and substance satisfactory to Parent, duly executed by
each of the Stockholders’ Representative and American Stock Transfer & Trust Company, LLC, in its capacity as escrow agent (the
 “Escrow Agent”).

 

(i)                
The consents set forth on Section 7.1(i) of the Company Disclosure Schedule in form and substance satisfactory to Parent.

 

(j)                
Evidence, in a form and substance satisfactory to Parent, that the agreements set forth on Sections 3.8 and 3.9 of the Company
Disclosure Schedule have been terminated.

 

(k)               Confirmation
that Magmotors Technologies as of the Closing Date (as a Participating Employer in the US Hybrid 401(k) Investment Plan) has
terminated or otherwise discontinued or revoked its participation in the US Hybrid 401(k) Investment Plan as described and allowed
under section 11.7 of the Benefit Consultants Group, Inc. Defined Contribution Prototype Plan and Trust Plan Document.

 

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(l)                
Confirmation that the Letters of Transmittal were delivered to each Stockholder for execution and return.

 

(m)            
A duly executed Letter of Transmittal from the majority Stockholder of the Company.

 

(n)              
A guaranty, in form and substance satisfactory to Parent, provided by Dr. Goodarzi with respect to any amounts owing as a result
of, or any other Losses arising out of or in any way connected to the Pending Litigation Matter and any other Losses in excess of the
Indemnity Escrow Amount (giving effect to any valuation of the Indemnity Escrow Shares pursuant to Section 8.3(a)).

 

(o)              
Employment agreements (“Employment Agreements”), in form and substance satisfactory to Parent (including, without
limitation, with respect to the Employment Agreements of employees other than Dr. Goodarzi, that each such employee shall be terminable
by “Cause” (as defined in the applicable Employment Agreement) if Dr. Goodarzi is terminated for “Cause” or resigns
without “Good Reason” (as such terms are defined in Dr. Goodarzi’s Employment Agreement)), duly executed by each of
the employees set forth on Section 7.1(o) of the Company Disclosure Schedule.

 

(p)              
The Retention Plan, in form and substance satisfactory to Parent, duly executed by the Company.

 

(q)              
Those certain award agreements related to the Retention Plan, in form and substance satisfactory to Parent, duly executed by each
person covered by the Retention Plan as listed on Section 7.1(q) of the Company Disclosure Schedule.

 

(r)               
Such documents of further assurance reasonably necessary and typical for transactions similar to the Contemplated Transactions
in order to complete the Contemplated Transactions.

 

7.2.           
Deliveries by Parent and Merger Sub at Closing.

 

On the Closing Date, in addition
to the deliverables of Parent as set forth in Section 2.6(d), Parent shall deliver or cause to be delivered to the Stockholders’
Representative:

 

(a)              
An officer’s certificate signed by the chief executive officer of Parent to the effect set forth in Section 6.1(a) and 6.1(b).

 

(b)              
the Escrow Agreement, duly executed by Parent.

 

(c)              
the Employment Agreements, duly executed by the Surviving Corporation.

 

(d)              
the Retention Plan, duly executed by the Surviving Corporation.

 

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(e)              
 those certain award agreements in connection with the Retention Plan, duly executed by the Surviving Corporation.

 

(f)               
Such documents of further assurance reasonably necessary and typical for transactions similar to the Contemplated Transactions
in order to complete the Contemplated Transactions.

 

ARTICLE VIII

Indemnification; Survival

 

8.1.           
Expiration of Representations and Warranties.

 

All of the representations and
warranties of the parties set forth in this Agreement shall terminate and expire, and shall cease to be of any force or effect, at 5:00
P.M. (Eastern time) on the date that is the eighteen (18)-month anniversary of the Closing Date (the “Expiration Date”),
and all liability with respect to such representations and warranties shall thereupon be extinguished; provided, that (a) the representations
and warranties of the Company as set forth in Section 3.8 (Relationships with Affiliates), Section 3.12 (Intellectual Property), Section
3.13(c) (Government Contracts), Section 3.15 (Environmental Matters), Section 3.19 (Employee Benefits), Section 3.20 (Tax Matters), and
Section 3.28 (Export Controls; Sanctions) shall continue in full force and effect until sixty (60) days after all applicable statutes
of limitations, including waivers and extensions, have expired with respect to the matters addressed therein, (b) the representations
and warranties of the Company as set forth in Section 3.1 (Organization and Power), Section 3.2 (Authorization and Enforceability), Section
3.3 (Capitalization), and Section 3.29 (No Brokers) shall survive indefinitely, and (c) the representations and warranties of Parent and
Merger Sub as set forth in Section 4.1 (Organization and Power), Section 4.2 (Authorization and Enforceability), Section 4.5 (No Brokers),
Section 4.7 (Issuance of Stock Consideration), and Section 4.12 (Capitalization) shall survive indefinitely (the representations and warranties
referred to in clauses (a)-(c) are collectively referred to as the “Fundamental Representations”). All of the covenants
contained in this Agreement that by their nature are required to be performed after the Closing shall survive the Closing until fully
performed or fulfilled. Notwithstanding the foregoing, in the event a valid claim for indemnification has been asserted in good faith
in accordance with Section 8.2(d) and such claim remains unresolved as of the expiration of the applicable survival period as set forth
in this Section 8.1, then the covenant, agreement, representation or warranty (as applicable) that is the subject of such claim shall
survive solely with respect to such claim until such claim is finally resolved.

 

8.2.           
Indemnification.

 

(a)               By
the Stockholders. Subject to the provisions of Section 8.1 relating to the survival of representations and warranties, from and
after the Closing, the Stockholders shall jointly and severally indemnify, defend and hold harmless Parent, its Affiliates, and
their respective officers, directors, employees, stockholders, members, partners, agents, representatives, successors and assigns
(collectively, “Parent Indemnitees”) from and against all claims, losses, Liabilities, Taxes, damages,
deficiencies, interest and penalties, costs and expenses, including, without limitation, losses resulting from the defense,
settlement and/or compromise of a claim and/or demand and/or assessment, reasonable attorneys’, accountants’ and expert
witnesses’ fees, costs and expenses of investigation, and the costs and expenses of enforcing the indemnification provided
hereunder (hereafter individually a “Loss” and collectively “Losses”) incurred by any Parent
Indemnitees arising out of or relating to: (i) any breach of any representation or warranty made by the Stockholders or any of the
Group Companies in this Agreement or any Ancillary Document (without regard, for purposes of this clause (i), to any qualifications
as to materiality or Material Adverse Effect (or any correlative terms), other than with respect to the first sentence of Section
3.7 and where “material” is used for the purpose of listing and referring to Material Contracts); (ii) any breach of any
covenant or agreement of the Stockholders’ Representative or the Stockholders, or any of the Group Companies to the extent
required to be performed or complied with by any of the Group Companies prior to the Closing, contained in this Agreement or any
Ancillary Document; (iii) any Transaction Expenses of the Company or Indebtedness of the Group Companies to the extent not paid,
satisfied, and discharged prior to the Closing; (iv) any Pre-Closing Taxes; (v) any claim by any Person with respect to acts,
actions or activities of the Company or their respective officers or directors prior to the Closing in connection with the
Contemplated Transactions; (vi) any amount payable to a holder of Dissenting Shares under applicable Law or in connection with any
claim of any holder (or alleged holder) of Capital Stock, options, or warrants involving or related to his, her or its rights or
status (or alleged rights or status) as a holder of any Capital Stock, options, warrants or other ownership rights in the Company
during the period prior to the Closing, in each case, in excess of the Merger Consideration to which such holder is entitled to
receive pursuant to Section 2.5; (vii) any claim resulting from any inaccuracies in the Allocation Statement or otherwise alleging
that a Person was due amounts other than as set forth in the Allocation Statement; (viii) any Loss or Losses related or in any way
connected to the Pending Litigation Matter (including, without limitation, any attorneys’ fees and costs, approved settlement
amount, costs incurred in connection with the pending arbitration and any appeals exercised therefrom to the extent not recovered as
paid PLM Costs pursuant to Section 5.16(b)); (ix) any Loss or Losses related to or arising out of or in any way connected to a
dispute with Dewei or any of its Affiliates; (x) any Loss or Losses related to or arising out of the termination, amendment,
modification of a Government Contract or Government Bid (including any penalties assessed by a Governmental Authority) as a result
of the consummation of the transactions contemplated hereby; (xi) any Loss or Losses related to the handling or mishandling of
 “controlled unclassified information” and “covered defense information” as those terms are defined in the
Defense FAR Supplement, and “sensitive but unclassified” information as that term is defined in the NASA FAR Supplement;
(xii) any Loss or Losses related to the Chinese ownership of the Group Companies in violation of any Law or contract term; (xiii)
any Loss or Losses related to, arising out of or in any way in connection with any Group Company’s non-compliance with
International Trade Laws and Regulations and the post-Closing cost of bringing any Group Company into compliance with International
Trade Laws and Regulations, including payments of any civil penalties or other amounts due and owing to a Governmental Authority
whether as a result of good-faith disclosures made by Parent and/or the Surviving Corporation or otherwise; and/or (xiv) any Loss or
Losses related to, arising out of or in any way in connection with the decision by the Group Companies not to notify the Committee
on Foreign Investment in the United States (“CFIUS”) of a foreign investment transaction involving the Group
Companies and falling within the jurisdiction of CFIUS pursuant to CFIUS Laws and Regulations and the post-Closing cost of
addressing any action by CFIUS to impose mitigation measures related to any non-notified transaction.

 

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(b)              
 By Parent. Subject to the provisions of Section 8.1 relating to the survival of representations and warranties, from and
after the Closing, Parent shall indemnify, defend and hold harmless the Stockholders, their respective Affiliates, and their respective
officers, directors, employees, stockholders, members, partners, agents, representatives, successors and assigns (collectively, “Stockholder
Indemnitees”) from and against all Losses incurred by any Stockholder Indemnitees arising out of or relating to: (i) any breach
of any representation or warranty made by Parent or Merger Sub in this Agreement or any Ancillary Document (without regard, for purposes
of this clause (i), to any qualifications as to materiality or Material Adverse Effect (or any correlative terms)), and/or (ii) any breach
of any covenant or agreement of Parent or Merger Sub, or of the Group Companies or the Surviving Corporation to the extent required to
be performed or complied with by the Group Companies or the Surviving Corporation after the Closing, contained in this Agreement or any
Ancillary Document.

 

(c)              
Limitations on Rights of Indemnitees. Notwithstanding anything herein to the contrary:

 

(i)                
(A) the Stockholders shall not be required to indemnify the Parent Indemnitees with respect to any claim for indemnification arising
out of or relating to matters described in Section 8.2(a)(i) unless and until the aggregate amount of all such claims for such matters
exceeds an amount equal to One Hundred Thousand Dollars ($100,000) (the “Deductible”), in which event the Parent Indemnitees
shall be entitled to recover Losses only in excess thereof; provided, that the foregoing limitation shall not apply to a claim
for indemnification to the extent such claim is based upon fraud or a breach of any of the Fundamental Representations of the Group Companies,
and (B) Parent shall not be required to indemnify the Stockholder Indemnitees with respect to any claim for indemnification arising out
of or relating to matters described in Section 8.2(b)(i) unless and until the aggregate amount of all such claims for such matters exceeds
the Deductible, in which event the Stockholder Indemnitees shall be entitled to recover Losses only in excess thereof; provided,
that the foregoing limitation shall not apply to a claim for indemnification to the extent such claim is based upon fraud or a breach
of any of the Fundamental Representations of Parent and Merger Sub;

 

(ii)              (A)
in no event shall the aggregate Liability of the Stockholders (x) arising out of or relating to Section 8.2(a)(i) exceed an amount
equal to Twenty-Five Million Dollars ($25,000,000) (the “Cap”); provided, however, that the
limitation set forth in this clause (x) shall not apply to indemnification for Losses arising out of or resulting from a claim for
indemnification to the extent such claim is based upon fraud or a breach of any of the Fundamental Representations of any of the
Group Companies or (y) arising out of or relating to this Article VIII exceed the Merger Consideration; provided that the
limitation set forth in this clause (y) shall not apply to indemnification for Losses arising out of or resulting from a claim for
indemnification to the extent such claim is based upon fraud or relating to, arising under or in any way connected with, the Pending
Litigation Matter, which each such claim shall be uncapped, and (B) in no event shall the aggregate Liability of Parent (x) arising
out of or relating to Section 8.2(b)(i) exceed the Cap; provided, however, that the limitation set forth in this
clause (x) shall not apply to indemnification for Losses arising out of or resulting from a claim for indemnification to the extent
such claim is based upon fraud or a breach of any of the Fundamental Representations of Parent and Merger Sub or (y) arising out of
or relating to this Article VIII exceed the Merger Consideration; provided that the limitation set forth in this clause (y)
shall not apply to indemnification for Losses arising out of or resulting from a claim for indemnification to the extent such claim
is based upon fraud, which shall be uncapped;

 

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For the avoidance of doubt,
any recoveries by a Parent Indemnitee on account of indemnification for Losses related to, arising out of, pursuant to, or in connection
with (i) fraud, (ii) a breach of the Fundamental Representations of the Stockholders or any of the Group Companies or (iii) Sections 8.2(a)(ii)
through and including (xiv), regardless of whether such claim could also be classified as the breach of a non-Fundamental Representation
of the Stockholders or any of the Group Companies under Section 8.2(a)(i) and regardless of whether any such Losses were satisfied from
any or all of the Indemnity Escrow Shares held in the Indemnity Escrow Account, shall not reduce the Cap.

 

(iii)           
to the extent required by applicable Law, each Indemnitee shall use commercially reasonable efforts to mitigate any Losses arising
out of or relating to this Agreement or the Contemplated Transactions upon becoming aware of any Event that would be reasonably expected
to give rise to Losses; provided that costs incurred in connection with such efforts shall be included as Losses;

 

(iv)            
the amount of any Losses for which an Indemnitee claims indemnification under this Agreement shall be reduced by the amount of
any insurance proceeds and any indemnification, contribution, offset or reimbursement payments actually received from a third party with
respect to such Losses (net of (x) documented out-of-pocket expenses incurred in connection with such recovery, (y) deductibles, premiums
and retentions paid pursuant to the insurance policies under which such recovery is made to the extent arising out of or in connection
with such claims and (z) the net present value of any increase in premiums paid and retentions for such policies to the extent arising
out of or in connection with such claim); provided that if an Indemnitee actually receives insurance proceeds or indemnification,
contribution, offset or reimbursement payments from third party insurers with respect to such Losses, in each case, at any time subsequent
to any indemnification payment pursuant to this Article VIII, then such Indemnitee shall promptly reimburse the applicable Indemnitor
for the lesser of (A) the amount of such proceeds and/or payments actually received by such Indemnitee in respect of such Losses (net
of (x) documented out-of-pocket expenses incurred in connection with such recovery, (y) deductibles, premiums and retentions paid pursuant
to the insurance policies under which such recovery is made to the extent arising out of or in connection with such claims, and (z) the
net present value of any increase in premiums paid and retentions for such policies to the extent arising out of or in connection with
such claim) and (B) the aggregate amount of the payment made by such Indemnitor in respect of such Losses;

 

(v)              
The amount of any Losses for which an Indemnitee claims indemnification under this Agreement shall be reduced by the amount by
which the Tax liability of the Indemnitee, with respect to a taxable period, is actually reduced as a result of such Losses (net of any
Tax cost actually incurred by the Indemnitee arising from the receipt of the indemnity payments hereunder), calculated by computing the
amount of Taxes before and after inclusion of any Tax items attributable to such Losses for which indemnification was made and treating
such Tax items attributable to such Losses as the last items claimed for such taxable period; and

 

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(vi)            
 any indemnification provided under this Agreement shall be so applied as to avoid any double counting and no Indemnitee shall
be entitled to obtain indemnification (x) to the extent that such Losses are taken into account in the determination of the Closing Consideration
set forth in the Final Statement or (y) more than once for the same matter or Losses.

 

(d)              
Procedure.

 

(i)                
Direct Claims. If either a Parent Indemnitee, on the one hand, or a Stockholder Indemnitee, on the other hand, shall have
a claim for indemnification hereunder (the “Indemnitee”) for any claim other than a claim asserted by a third party,
the Indemnitee shall, as promptly as is practicable, give written notice to the party from whom indemnification is sought (the “Indemnitor”)
of the nature and, to the extent practicable, a good faith estimate of the amount, of the claim. The failure to make timely delivery of
such written notice by the Indemnitee to the Indemnitor shall not relieve the Indemnitor from any liability under this Article VIII with
respect to such matter, except to the extent the Indemnitor is actually materially prejudiced by failure to give such notice. If the Indemnitor
does not notify the Indemnitee within fifteen (15) days that the Indemnitor disputes such claim, the amount of such claim shall be conclusively
deemed a Liability of the Indemnitor hereunder. In case an objection is made in writing by the Indemnitor prior to the expiration of such
fifteen (15)-day period, the Indemnitor and the Indemnitee shall attempt in good faith for a period of fifteen (15) days to agree upon
the rights of the respective parties with respect to such claim. If the Indemnitee and Indemnitor so agree, a memorandum setting forth
such agreement and the agreed upon dollar amount of liability for such claim of the Indemnitor shall be prepared and signed by the Indemnitee
and the Indemnitor. If the Indemnitee and Indemnitor are unable to so agree, either party shall be permitted to pursue resolution of such
dispute in accordance with Section 10.11.

 

(ii)             
Third-Party Actions (Other than Tax Contests).

 

(A)       If
an Indemnitee receives notice or otherwise obtains knowledge of any matter or any threatened matter that may give rise to an
indemnification claim against the Indemnitor with respect to a claim asserted by a third party, then the Indemnitee shall promptly
deliver to the Indemnitor a written notice describing, to the extent practicable, such matter in reasonable detail. The failure to
make timely delivery of such written notice by the Indemnitee to the Indemnitor shall not relieve the Indemnitor from any liability
under this Section 8.2 with respect to such matter, except to the extent the Indemnitor is actually materially prejudiced by failure
to give such notice. The Indemnitor shall have the right, at its option, exercisable within fifteen (15) Business Days after the
date of such notice to assume the defense of any such matter with its own counsel and at its sole cost and expense; provided
that (x) such counsel shall be reasonably satisfactory to the Indemnitee, (y) the Indemnitor shall have such right to assume the
defense of any such matter only if the Indemnitor irrevocably relinquishes its right to contest whether such claim is indemnifiable
hereunder and (z) the Indemnitor shall not have any right to assume the defense of any such matter if (1) where the Indemnitee is a
Parent Indemnitee, the applicable third party claimant is a then-current customer of the Indemnitee or its Affiliates, (2) where the
Indemnitee is a Parent Indemnitee, the Indemnitee reasonably believes an adverse determination with respect to such matter would be
materially detrimental to or materially injure the reputation and future business prospects of the Indemnitee or its Affiliates, (3)
such matter is criminal in nature, (4) such matter seeks injunctive relief or other equitable remedies against the Indemnitee, (5)
such matter seeks damages in excess of the amount for which the Indemnitee could obtain indemnification from the Indemnitor pursuant
to this Article VIII, (6) such matter is in any way related to, arising out of, or in any way connected to the Pending Litigation
Matter or any other dispute with Dewei, or (7) the Indemnitor fails to provide the Indemnitee with evidence reasonably acceptable to
the Indemnitee that the Indemnitor will have the financial resources to defend such matter and fulfill its indemnification
obligations under this Article VIII.

 

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(B)       If
the Indemnitor elects to assume the defense of and indemnification for any such matter in accordance with this Section 8.2(d), then:

 

(1)       notwithstanding
anything to the contrary contained in this Agreement, the Indemnitor shall not be required to pay or otherwise indemnify the Indemnitee
against any attorneys’ fees or other expenses incurred on behalf of the Indemnitee in connection with such matter following the
Indemnitor’s election to assume the defense of such matter, unless (x) the Indemnitor fails to defend diligently the action
or proceeding within ten (10) days after receiving notice of such failure from the Indemnitee, (y) the Indemnitee reasonably shall
have concluded (upon advice of its counsel) that there may be one or more legal defenses available to such Indemnitee or other Indemnitees
that are not available to the Indemnitor, or (z) the Indemnitee reasonably shall have concluded (upon advice of its counsel) that,
with respect to such claims, the Indemnitee and the Indemnitor may have different, conflicting, or adverse legal positions or interests;

 

(2)       except
in connection with any Litigation where any Indemnitee is adverse to any Indemnitor, the Indemnitee shall, at its own expense, make available
to the Indemnitor all books, records and other documents and materials that are under the direct or indirect control of the Indemnitee
or any of the Indemnitee’s agents and that the Indemnitor considers necessary or desirable for the defense of such matter, and reasonably
cooperate with, and make its employees and advisors available or otherwise render reasonable assistance to, the Indemnitor and its agents;
and

 

(3)       the
Indemnitor shall not settle or compromise any pending or threatened Litigation in respect of which indemnification may be sought hereunder
(whether or not the Indemnitee is an actual or potential party to such Litigation) or consent to the entry of any judgment, in each case
without the written consent of the Indemnitee, which shall not be unreasonably withheld or delayed.

 

(C)       If
(x) the Indemnitor elects not to assume the defense of and indemnification for such matter (or fails to notify the Indemnitee of such
election within the period set forth in Section 8.2(d)(ii)(A)), (y) elects to assume the defense of and indemnification for such matter
but then fails to diligently conduct such defense, or (z) is not entitled to assume the defense of such matter pursuant to Section 8.2(d)(ii)(A),
then the Indemnitee shall proceed diligently to defend such matter with the assistance of counsel reasonably satisfactory to the Indemnitor;
provided, that the Indemnitee shall not settle, adjust or compromise such matter, or admit any liability with respect to such matter,
without the prior written consent of the Indemnitor, such consent not to be unreasonably withheld or delayed.

 

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(D)       The
procedures in this Section 8.2(d)(ii) shall not apply to matters subject to Section 8.2(d)(iii) (Tax Contests) or to direct claims of
an Indemnitee which are addressed in Section 8.2(d)(i) (Direct Claims).

 

(iii)           
Tax Contests.

 

(A)       If,
following the Closing Date, Parent, the Surviving Corporation or any of the Group Companies receives from any Taxing Authority written
notice of any Tax Contest with respect to which the Parent, the Surviving Corporation, or the other Group Companies may reasonably have
any liability for Pre-Closing Taxes, Parent shall promptly provide a copy of such notice to the Stockholders’ Representative; provided,
that Parent’s failure to promptly provide a copy of such notice to the Stockholders’ Representative shall not affect the Parent
Indemnitee’s right to receive indemnification under Section 8.2(a) except to the extent the Stockholders’ Representative has
been actually and materially prejudiced as a result of such failure.

 

(B)       The
Stockholders’ Representative shall have the right, at its expense, to control, manage and be responsible for any Tax Contest to
the extent that such Tax Contest relates solely to Pre-Closing Taxes, other than Tax Contests with respect to a Straddle Period Stockholders’
Representative shall keep Parent informed of all material developments regarding such Tax Contest. Parent and the Surviving Corporation
may participate in such Tax Contest and the Stockholders’ Representative shall not settle, compromise or otherwise resolve such
Tax Contest without the consent of the Surviving Corporation and Parent, which consent will not be unreasonably withheld, conditioned
or delayed. The Stockholders’ Representative shall keep the Surviving Corporation and Parent informed of the progress of all such
Tax Contests and shall provide copies of all written communications with any Taxing Authority related to such Tax Contests.

 

(C)       With
respect to any Tax Contest relating to Taxes or Tax Returns of a Straddle Period or within the scope of Section 8.2(d)(iii)(B) which Stockholders’
Representative does not elect to control, Parent shall, solely at Parent’s own cost and expense, control all proceedings in connection
with such Tax Contest (including selection of counsel); provided, however, that to the extent that any such Tax Contest relating to Taxes
or Tax Returns of a Straddle Period and reasonably be expected to result in the Stockholders being liable for any amounts hereunder, (x)
Parent shall keep Stockholders’ Representative informed of all material developments regarding such Tax Contest, (y) Stockholders’
Representative and its counsel (at the Stockholders’ expense) may participate in (but not control the conduct of) the defense of
such Tax Contest, and (z) Parent shall not settle such Tax Contest without the written consent of Stockholders’ Representative,
which consent shall not be unreasonably withheld, conditioned, or delayed.

 

(iv)            
Stockholders’ Representative. All notices to be provided to the Stockholders as an Indemnitee or Indemnitor pursuant
to this Section 8.2(d) shall be provided to the Stockholders’ Representative and the Stockholders’ Representative shall act
on behalf of the Stockholder Indemnitees and any Stockholders that are Indemnitors under this Section 8.2(d).

 

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(e)              
 Tax Treatment. The parties hereto agree to treat any indemnity payment made pursuant to this Article VIII as an adjustment
to the purchase price for federal, state, local and foreign income Tax purposes.

 

8.3.           
Recourse; Escrow Release; Set-Off.

 

(a)              
In the event that any Parent Indemnitee is entitled to indemnification for Losses pursuant to this Article VIII, then, subject
to the applicable limitations set forth in this Article VIII, such Parent Indemnitee shall satisfy the amount of such Losses (i) first,
from the Indemnity Escrow Shares then remaining in the Indemnity Escrow Account (it being understood that such shares shall be valued
for purposes of such indemnification for Losses pursuant to this Article VIII at the VWAP as of the date that the Parent Indemnitees became
entitled to indemnification for such Losses pursuant to this Article VIII, except for any Losses which arise solely from a breach of non-Fundamental
Representation(s) (it being understood that the foregoing exception shall not apply to Losses which arise from a breach of both Fundamental
Representations and non-Fundamental Representations), which such Losses, and only such Losses, shall be valued at the Closing VWAP), and
(ii) thereafter, directly from the Stockholders on a joint and several basis; provided that the Parent Indemnitees may (but shall
not be obligated to) offset any such Losses in excess of amounts remaining in the Indemnity Escrow Account against any shares of Parent
Common Stock issued to the Stockholders pursuant to this Agreement (including those Indemnity Escrow Shares released pursuant to Section
8.3(b) and the Escrow Agreement) and held by such Stockholders at the time of such offset (it being understood that such shares shall
be valued for purposes of such indemnification for Losses pursuant to this Article VIII at the VWAP as of the date that the Parent Indemnitees
became entitled to indemnification for such Losses pursuant to this Article VIII, except for any Losses which arise solely from a breach
of non-Fundamental Representation(s) (it being understood that the foregoing exception shall not apply to Losses which arise from a breach
of both Fundamental Representations and non-Fundamental Representations ), which such Losses, and only such Losses, shall be valued at
the Closing VWAP). Upon a Parent Indemnitee becoming entitled to receive any Indemnity Escrow Shares from the Indemnity Escrow Account
pursuant to this Article VIII or Section 5.4(a) (related to Tax Matters), Parent and the Stockholders’ Representative shall deliver
joint written instructions to the Escrow Agent instructing the Escrow Agent to disburse to such Parent Indemnitee from the Indemnity Escrow
Account the number of Indemnity Escrow Shares to which such Parent Indemnitee is so entitled (or the entire then-remaining balance of
Indemnity Escrow Shares in the Indemnity Escrow Account, if less than such amount). For the avoidance of doubt, in the event that all
of the Indemnity Escrow Shares are disbursed to Parent from the Escrow Account for whatever reason (including, without limitation, application
of the valuation principles set forth in this Section 8.3(a)), the Stockholders shall remain jointly and severally liable to the Parent
Indemnitees for indemnification for any Losses pursuant to this Article VIII.

 

(b)              
Indemnity Escrow Disbursements.

 

(i)                 Upon
the Expiration Date, subject to the terms and conditions of the Escrow Agreement (which shall include conditions related to the
 “Cause” and “Good Reason” definitions in Dr. Goodarzi’s Employment Agreement, which must be
satisfied), and if the Pending Litigation Matter has been finally determined (either by an enforceable settlement agreement,
including an Order dismissing the Pending Litigation Matter with prejudice, satisfactory to Parent, or entry of a final,
non-appealable Order), Parent and the Stockholders’ Representative shall deliver joint written instructions to the Escrow
Agent to disburse from the Indemnity Escrow Account to the Stockholders’ Representative for further distribution to the
Stockholders in accordance with Section 2.7(a)(iv) that number of Indemnity Escrow Shares equal to: (i) fifty-two and one half
percent (52.5%) percent of the Indemnity Escrow Shares originally deposited in the Indemnity Escrow Account, less (ii) that
number of Indemnity Escrow Shares equal to (A) the aggregate amount of any claims of the Parent Indemnitees for indemnification
properly notified in accordance with this Article VIII and that remain unresolved as of the Expiration Date (each, a
 “Pending Claim”) and (B) any Indemnity Escrow Shares delivered to Parent to satisfy Losses in accordance with
this Article VIII. For purposes of determining the value of the Indemnity Escrow Shares related to any Pending Claim in this Section
8.3(b)(i), the value of the Indemnity Escrow Shares shall be equal to the VWAP as of the Expiration Date, except for any Pending
Claim which arises solely from a breach of a non-Fundamental Representation (it being understood that the foregoing exception shall
not apply to a Pending Claim which arises from a breach of both Fundamental Representations and non-Fundamental Representations),
which such a Pending Claim, and only such a Pending Claim, shall be valued at the Closing VWAP.

 

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(ii)             
Upon the date that is twenty-four (24) months from the Closing Date, subject to the terms and conditions of the Escrow Agreement
(which shall include conditions related to the “Cause” and “Good Reason” definitions in Dr. Goodarzi’s Employment
Agreement, which must be satisfied), and if the Pending Litigation Matter has been finally determined (either by an enforceable settlement
agreement, including an Order dismissing the Pending Litigation Matter with prejudice, satisfactory to Parent, or entry of a final, non-appealable
Order), Parent and the Stockholders’ Representative shall deliver joint written instructions to the Escrow Agent to disburse from
the Indemnity Escrow Account to the Stockholders’ Representative for further distribution to the Stockholders in accordance with
Section 2.7(a)(iv) that number of Indemnity Escrow Shares equal to: (i) seventy percent (70%) percent of the Indemnity Escrow Shares originally
deposited in the Indemnity Escrow Account, less (ii) that number of Indemnity Escrow Shares equal to (A) any Pending Claims and
(B) any Indemnity Escrow Shares delivered to Parent to satisfy Losses in accordance with this Article VIII, less (iii) that number
of Indemnity Escrow Shares released to Stockholders’ Representative pursuant to Section 8.3(b)(i). For purposes of determining the
value of the Indemnity Escrow Shares related to any Pending Claim in this Section 8.3(b)(ii), the value of the Indemnity Escrow Shares
shall be equal to the VWAP as of the date that is twenty-four (24) months from the Closing Date, except for any Pending Claim which arises
solely from a breach of a non-Fundamental Representation (it being understood that the foregoing exception shall not apply to a Pending
Claim which arises from a breach of both Fundamental Representations and non-Fundamental Representations), which such a Pending Claim,
and only such a Pending Claim, shall be valued at the Closing VWAP.

 

(iii)            Upon
the date that is thirty-six (36) months from the Closing Date, subject to the terms and conditions of the Escrow Agreement (which
shall include conditions related to the “Cause” and “Good Reason” definitions in Dr. Goodarzi’s
Employment Agreement, which must be satisfied), and if the Pending Litigation Matter has been finally determined (either by an
enforceable settlement agreement, including an Order dismissing the Pending Litigation Matter with prejudice, satisfactory to
Parent, or entry of a final, non-appealable Order), Parent and the Stockholders’ Representative shall deliver joint written
instructions to the Escrow Agent to disburse from the Indemnity Escrow Account to the Stockholders’ Representative for further
distribution to the Stockholders in accordance with Section 2.7(a)(iv) that number of Indemnity Escrow Shares equal to: (i) the
remaining Indemnity Escrow Shares in the Indemnity Escrow Account, less (ii) that number of Indemnity Escrow Shares equal to
any Pending Claims. For purposes of determining the value of the Indemnity Escrow Shares related to any Pending Claim in this
Section 8.3(b)(ii), the value of the Indemnity Escrow Shares shall be equal to the VWAP as of the date that is thirty-six (36)
months from the Closing Date, except for any Pending Claim which arise solely from a breach of a non-Fundamental Representation (it
being understood that the foregoing exception shall not apply to a Pending Claim which arises from a breach of both Fundamental
Representations and non-Fundamental Representations), which such a Pending Claim, and only such a Pending Claim, shall be valued at
the Closing VWAP.

 

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(c)              
Upon the full and final resolution of a Pending Claim after the date that is thirty-six (36) months from the Closing Date, if the
value of the Indemnity Escrow Shares (calculated in accordance with the VWAP as of the date of the full and final resolution of any such
Pending Claim, except for any Pending Claim which arises solely from a breach of a non-Fundamental Representation (it being understood
that the foregoing exception shall not apply to a Pending Claim which arises from a breach of both Fundamental Representations and non-Fundamental
Representations), which such a Pending Claim, and only such a Pending Claim, shall be valued at the Closing VWAP) retained in the Indemnity
Escrow Account with respect to such Pending Claim pursuant to Section 8.3(b) exceeds the amount that the Parent Indemnitees are entitled
to receive from the Indemnity Escrow Account pursuant to this Article VIII in respect of such Pending Claim, then Parent and the Stockholders’
Representative shall deliver joint written instructions to the Escrow Agent to release that number of Indemnity Escrow Shares from the
Indemnity Escrow Account to the Stockholders’ Representative for further distribution to the Stockholders in accordance with Section
2.7(a)(iv) equal to the amount of such excess.

 

8.4.           
Exclusive Remedy.

 

Each party hereto acknowledges
and agrees that, from and after the Closing, the indemnification provisions of this Article VIII shall be the sole and exclusive remedy
for breaches of representations and warranties contained in this Agreement, the failure or non-performance of any covenants or agreements
contained in this Agreement, and any other claim in connection with the Contemplated Transactions, except for (a) the remedies arising
from claims based on fraud in connection with the Contemplated Transactions, (b) the equitable and other remedies available to the parties
pursuant to Section 10.15 (Specific Performance), (c) the dispute resolution mechanisms set forth in Section 2.8 (Purchase Price Adjustment)
with respect to the final determination of the Closing Consideration, (d) the guaranty of Dr. Goodarzi, and (e) any other remedy negotiated
in this Agreement or an Ancillary Document that provides for a specific recovery for Losses in connection with the Contemplated Transactions.

 

ARTICLE IX

Termination

 

9.1.           
Termination Events.

 

This Agreement may be terminated
and the transactions contemplated hereby may be abandoned:

 

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(a)  
 at any time, by mutual written agreement of the Stockholders’ Representative and Parent; or

 

(b)  
by Parent, at any time prior to the Closing, if (i) the Company or the Stockholders’ Representative is in breach, in any
material respect, of the representations, warranties or covenants made by it in this Agreement, (ii) such breach is not cured within ten
(10) days of written notice of such breach from Parent (to the extent such breach is curable) and (iii) such breach, if not cured, would
render the conditions set forth in Section 6.2 incapable of being satisfied; or

 

(c)  
by the Stockholders’ Representative, at any time prior to the Closing, if (i) Parent or Merger Sub is in breach, in any material
respect, of the representations, warranties or covenants made by it in this Agreement, (ii) such breach is not cured within ten (10) days
of written notice of such breach from the Stockholders’ Representative (to the extent such breach is curable) and (iii) such breach,
if not cured, would render the conditions set forth in Section 6.1 incapable of being satisfied;

 

(d)  
by written notice by either the Stockholders’ Representative or Parent to the other, at any time after October 29, 2021 if
the Closing shall not have occurred on or prior to such date; provided, that the right to terminate this Agreement under this Section
9.1(d) shall not be available to such party if the action or inaction of such party (or in the case of the Stockholders’ Representative,
the Company) or any of its Affiliates has been a principal cause of or resulted in the failure of the Closing to occur on or before such
date and such action or failure to act constitutes a breach of this Agreement;

 

(e)  
by either Parent or the Stockholders’ Representative if any Governmental Authority having competent jurisdiction has issued
a final, non-appealable Order or taken any other action the effect of which is to permanently restrain, enjoin or otherwise prohibit the
Contemplated Transactions; provided that the right to terminate this Agreement under this Section 9.1(e) shall not be available
to such party if the action or inaction of such party (or in the case of the Stockholders’ Representative, the Company) or any of
its Affiliates has been a principal cause of or resulted in such Order or action and such action or inaction constitutes a breach of this
Agreement; or

 

(f)   
by the Parent pursuant to Section 5.15 (Disclosure Schedules).

 

9.2.           
Procedure and Effect of Termination.

 

In the event of the
termination of this Agreement and the abandonment of the Contemplated Transactions, written notice thereof shall be given by a
terminating party to the other parties, this Agreement shall terminate and the Contemplated Transactions shall be abandoned without
further action by any of the parties. If this Agreement is terminated pursuant to Section 9.1, no party hereto shall have any
obligation or liability to the other parties hereto, except that the parties hereto shall remain bound by the provisions of this
Section 9.2 (Procedure and Effect of Termination), Section 5.8 (Public Announcements), Article X (Miscellaneous) and by the
provisions of the NDA; provided, that nothing herein shall relieve a defaulting or breaching party from any liability or
damages arising out of its breach of any provision of this Agreement.

 

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ARTICLE X

Miscellaneous

 

10.1.       
Stockholders’ Representative.

 

(a)              
Appointment of Stockholders’ Representative. Dr. Goodarzi shall be the agent and attorney-in-fact for each of the
Stockholders to act as Stockholders’ Representative under this Agreement and the Ancillary Documents in accordance with the terms
of this Section 10.1 and the Ancillary Documents (the “Stockholders’ Representative”). In the event of the resignation,
death or incapacity of the Stockholders’ Representative, a successor Stockholders’ Representative reasonably satisfactory
to Parent shall thereafter be appointed by an instrument in writing signed by Parent and such successor Stockholders’ Representative.

 

(b)              
Authority. The Stockholders’ Representative is hereby authorized and empowered to act for, and on behalf of, any or
all of the Stockholders (with full power of substitution in the premises) in connection with (i) the indemnity provisions of Article VIII
as they relate to the Stockholders generally and (ii) such other matters as are reasonably necessary for the consummation of the Contemplated
Transactions including, without limitation, (A) to receive all Merger Consideration owing to the Stockholders under this Agreement, (B)
to terminate, amend, waive any provision of, or abandon, this Agreement or any of the Ancillary Documents, (C) to act as the representative
of the Stockholders to review and authorize all claims and disputes or question the accuracy thereof, (D) to negotiate and compromise
on their behalf with Parent any claims asserted thereunder and to authorize payments to be made with respect thereto, (E) to take such
further actions as are authorized in this Agreement or the Ancillary Documents, and (F) in general, to do all things and perform all acts,
including, without limitation, executing and delivering all agreements (including the Ancillary Documents), certificates, receipts, consents,
elections, instructions and other documents contemplated by or deemed by the Stockholders’ Representative to be necessary or desirable
in connection with this Agreement, the Ancillary Documents and the Contemplated Transactions. Parent and Merger Sub shall be entitled
to rely on such appointment and to treat the Stockholders’ Representative as the duly appointed attorney-in-fact of each Stockholder.
Notices given to the Stockholders’ Representative in accordance with the provisions of this Agreement shall constitute notice to
the Stockholders for all purposes under this Agreement.

 

(c)               Extent
and Survival of Authority. The appointment of the Stockholders’ Representative is an agency coupled with an interest and
is irrevocable and any action taken by the Stockholders’ Representative pursuant to the authority granted in this Section 10.1
shall be effective and absolutely binding on each Stockholder notwithstanding any contrary action of or direction from such
Stockholder, except for actions or omissions of the Stockholders’ Representative constituting willful misconduct or gross
negligence. The death or incapacity, or dissolution or other termination of existence, of any Stockholder shall not terminate the
authority and agency of the Stockholders’ Representative. Parent, Merger Sub and any other party to an Ancillary Document in
dealing with the Stockholders’ Representative may conclusively and absolutely rely, without inquiry, upon any act of the
Stockholders’ Representative as the act of the Stockholders.

 

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(d)              
Release from Liability; Indemnification. The Stockholders’ Representative shall not be liable to any Stockholder or
to any other Person (other than Parent or Merger Sub), with respect to any action taken or omitted to be taken by the Stockholders’
Representative in his role as Stockholders’ Representative under or in connection with this Agreement, unless such action or omission
results from or arises out of willful misconduct or gross negligence on the part of the Stockholders’ Representative, and the Stockholders’
Representative shall not be liable to any Stockholder in the event that, in the exercise of his reasonable judgment, the Stockholders’
Representative believes there will not be adequate resources available to cover potential costs and expenses to contest a claim made by
Parent or Merger Sub against the Stockholders.

 

(e)              
Reimbursement of Expenses. The Stockholders’ Representative shall receive no compensation for service as such, but
shall receive reimbursement from, and be indemnified by, the Stockholders, pro rata in accordance with the number of shares of Common
Stock held by each Stockholders immediately prior to the Effective Time (calculated on a fully-diluted and converted-to-Common-Stock basis),
for any and all expenses, charges and liabilities, including, but not limited to, reasonable attorneys’ fees, incurred by the Stockholders’
Representative in the performance or discharge of his duties pursuant to this Section 10.1.

 

10.2.       
Expenses.

 

All fees and expenses incurred
in connection with the Contemplated Transactions shall be paid by the party incurring such expenses, whether or not the Contemplated Transactions
are consummated.

 

10.3.       
Notices.

 

All notices and other communications
given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made (a) as of the date delivered,
if delivered personally, (b) on the date the delivering party receives confirmation, if delivered by email, (c) three (3) Business
Days after being mailed by registered or certified mail (postage prepaid, return receipt requested) or (d) one (1) Business Day after
being sent by overnight courier (providing proof of delivery), to the parties at the following addresses (or at such other address for
a party as shall be specified in a notice given in accordance with this Section 10.3):

 

If to the Group Companies (prior to
the Closing), the Stockholders or the Stockholders’ Representative:

 

445 Maple Ave.

Torrance, CA 90503-3807

Attn: Dr. Abas Goodarzi

Email: abas@ushybrid.com

 

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

 

Kunzler
Bean & Adamson

50 W. Broadway

Suite 1000

Salt Lake City, UT, 84101 

Attn: Michael Penley

Email: mpenley@kba.law

 

If to USFC or Dewei:

 

Hong Kong Dewei
Advanced Materials

Attn: Zhou Jianming

Unit (SH) 2, LG 1, Mirror Tower

61 Mody Road, TSIM SHA TSUI

Kowloon, Hong Kong

Email: zhoujianming@chinadewei.com

 

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

 

Mark Anchor Albert,
Esq.

445 S. Figueroa Street, Suite 3100,

Los Angeles, CA 90071

Email: Albert@LAlitigators.com

 

If to Parent, Merger Sub, the Surviving
Corporation, or the Group Companies (after the Closing):

 

Ideanomics, Inc.

1441 Broadway, Suite
5116

New York, NY 10018

Attn: Alf Poor, Chief Executive
Officer

Email: apoor@ideanomics.com

 

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

 

Venable LLP

1270 Avenue of the Americas

24th Floor

New York, NY 10020

Attn: William N. Haddad

Email: WNHaddad@Venable.com

 

10.4.       
Governing Law.

 

This Agreement shall in all
respects be governed by, and construed in accordance with, the Laws (excluding conflict of laws rules and principles) of the State of
Delaware applicable to agreements made and to be performed entirely within such State, including all matters of construction, validity
and performance.

 

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10.5.       
 Entire Agreement.

 

This Agreement, together with
the Exhibits hereto, the Company Disclosure Schedule, the Parent Disclosure Schedule, the NDA, and the Ancillary Documents, constitute
the entire agreement of the parties relating to the subject matter hereof and supersede all prior Contracts or agreements, whether oral
or written.

 

10.6.       
Severability.

 

Should any provision of this
Agreement or the application thereof to any Person or circumstance be held invalid or unenforceable to any extent: (a) such provision
shall be ineffective to the extent, and only to the extent, of such unenforceability or prohibition and shall be enforced to the greatest
extent permitted by Law, (b) such unenforceability or prohibition in any jurisdiction shall not invalidate or render unenforceable
such provision as applied (i) to other Persons or circumstances or (ii) in any other jurisdiction, and (c) such unenforceability
or prohibition shall not affect or invalidate any other provision of this Agreement.

 

10.7.       
Amendment.

 

Neither this Agreement nor any
of the terms hereof may be terminated, amended, supplemented or modified orally, but only by an instrument in writing signed by each of
the parties hereto; provided that the observance of any provision of this Agreement may be waived in writing by the party that
will lose the benefit of such provision as a result of such waiver.

 

10.8.       
Effect of Waiver or Consent.

 

No waiver or consent, express
or implied, by any party to or of any breach or default by any party in the performance by such party of its obligations hereunder shall
be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such party of the same or
any other obligations of such party hereunder. No single or partial exercise of any right or power, or any abandonment or discontinuance
of steps to enforce any right or power, shall preclude any other or further exercise thereof or the exercise of any other right or power.
Failure on the part of a party to complain of any act of any party or to declare any party in default, irrespective of how long such failure
continues, shall not constitute a waiver by such party of its rights hereunder until the applicable statute of limitation period has run.

 

10.9.       
Parties in Interest; Limitation on Rights of Others.

 

The terms of this Agreement
shall be binding upon, and inure to the benefit of, the parties hereto and their respective legal representatives, successors and assigns.
Nothing in this Agreement, whether express or implied, shall be construed to give any Person (other than the parties hereto and their
respective legal representatives, successors and assigns and as expressly provided herein) any legal or equitable right, remedy or claim
under or in respect of this Agreement or any covenants, conditions or provisions contained herein, as a third party beneficiary or otherwise;
provided that Parent Indemnitees or Stockholder Indemnitees who are not otherwise a party to this Agreement shall be third party
beneficiaries of this Agreement.

 

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10.10.   
 Assignability.

 

This Agreement shall not be
assigned by the Company without the prior written consent of Parent and Merger Sub. Prior to Closing, this Agreement shall not be assigned
by Parent or Merger Sub without the prior written consent of the Company; provided, that Parent or Merger Sub may assign their
rights and obligations under this Agreement without such required consent to an Affiliate, which assignment shall not relieve Parent or
Merger Sub of their obligations hereunder.

 

10.11.   
Jurisdiction; Court Proceedings; Waiver of Jury Trial.

 

Any Litigation against any party
to this Agreement arising out of or in any way relating to this Agreement shall be brought in any federal or state court located in the
State of Delaware in New Castle County and each of the parties hereby submits to the exclusive jurisdiction of such courts for the purpose
of any such Litigation; provided that a final judgment in any such Litigation shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably and unconditionally agrees not to
assert (a) any objection which it may ever have to the laying of venue of any such Litigation in any federal or state court located
in the State of Delaware in New Castle County, (b) any claim that any such Litigation brought in any such court has been brought
in an inconvenient forum or (c) any claim that such court does not have jurisdiction with respect to such Litigation. To the extent that
service of process by mail is permitted by applicable Law, each party irrevocably consents to the service of process in any such Litigation
in such courts by the mailing of such process by registered or certified mail, postage prepaid, at its address for notices provided for
herein. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY AND AGREES THAT ANY OF THEM MAY FILE A COPY
OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY
TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY LITIGATION.

 

10.12.   
No Other Duties.

 

The only duties and obligations
of the parties under this Agreement are as specifically set forth in this Agreement, and no other duties or obligations shall be implied
in fact, Law or equity, or under any principle of fiduciary obligation.

 

10.13.   
Reliance on Counsel and Other Advisors.

 

Each party has consulted such
legal, financial, technical or other expert as it deems necessary or desirable before entering into this Agreement. Each party represents
and warrants that it has read, knows, understands and agrees with the terms and conditions of this Agreement.

 

10.14.   
Remedies.

 

All remedies, either under
this Agreement or by Law or otherwise afforded to the parties hereunder, shall be cumulative and not alternative, and any Person
having any rights under any provision of this Agreement will be entitled to enforce such rights specifically, to recover damages by
reason of any breach of this Agreement and to exercise all other rights granted by Law, equity or otherwise.

 

    - 103 -

     

    

 

10.15.   
Specific Performance.

 

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. Accordingly, the parties agree that, in addition to any other remedies, each party shall be entitled to enforce
the terms of this Agreement by a decree of specific performance without the necessity of proving the inadequacy of money damages as a
remedy. Each party hereby waives any requirement for the securing or posting of any bond in connection with such remedy. Each party further
agrees that the only permitted objection that it may raise in response to any action for equitable relief is that it contests the existence
of a breach or threatened breach of this Agreement.

 

10.16.   
Counterparts.

 

This Agreement may be executed
in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying
with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be
deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

10.17.   
Further Assurances.

 

If at any time after the Closing
any further action is necessary or desirable to fully effect the transactions contemplated by this Agreement or any other of the Ancillary
Documents, each of the parties shall take such further action (including the execution and delivery of such further instruments and documents)
as any other party reasonably may request.

 

(signature pages follow)

 

    - 104 -

     

    

 

IN WITNESS WHEREOF, each of
the parties hereto has caused this Agreement to be duly executed and delivered in its name and on its behalf, all as of the day and year
first above written.

 

	 	IDEANOMICS, INC., a Nevada corporation
	 	 
	 	 
	 	By:	 
	 	Name: Alfred Poor
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	USH MERGER CORP., a Delaware corporation
	 	 
	 	 
	 	By:	 
	 	Name: Alfred Poor
	 	Title: President
	 	 
	 	 
	 	US HYBRID CORPORATION, a Delaware corporation
	 	 
	 	 
	 	By:	 
	 	Name: Dr. Gordon Abas Goodarzi
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	STOCKHOLDERS’ REPRESENTATIVE
	 	 
	 	 
	 	By:	 
	 	 	Dr. Gordon Abas Goodarzi, in his capacity as Stockholder’s
Representative
	 	 
	 	 
	 	 
	 	Dr. Gordon Abas Goodarzi, in his individual capacity

 

[Signature page to Agreement and Plan of Merger]ex1012021ltipamendment

EXHIBIT 10.1  AMENDMENT TO THE  U.S. CONCRETE, INC.  LONG TERM INCENTIVE PLAN  This Amendment to the U.S. Concrete, Inc. Long Term Incentive Plan (the “Plan”), made  pursuant to the right to amend reserved in Section 10(c) of the Plan, amends the Plan as follows,  contingent on the approval of these amendments by the stockholders of U.S. Concrete, Inc. and  effective upon the date of such stockholder approval:  Sections 4(a) of the Plan is amended in their entirety to read as follows:  “(a) Overall Number of Shares Available for Delivery. Subject to adjustment in a  manner consistent with any adjustment made pursuant to Section 9, the total number  of shares of Stock reserved and available for issuance in connection with Awards  under this Plan shall not exceed 2,878,195 shares, and such total will be available for  the issuance of Incentive Stock Options. This limitation consists of the sum of (i)  1,998,195 previously authorized shares and (ii) an additional 880,000 shares.”  In all other respects, the Plan will remain unchanged and in full force and effect.   IN WITNESS WHEREOF, upon authorization of the Board of Directors, the undersigned  has executed this Amendment to the U.S. Concrete, Inc. Long Term Incentive Plan effective as of  February 22, 2021.  U.S. CONCRETE, INC.  By: /s/ Ronnie Pruitt ______________________  Name: Ronnie Pruitt _________________________  Its: President and Chief Executive Officer _____

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