Document:

Exhibit 10.2

 

THE INDEBTEDNESS EVIDENCED HEREBY IS SUBORDINATED
IN ACCORDANCE WITH AND SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION AGREEMENT (AS AMENDED, RESTATED, SUPPLEMENTED OR MODIFIED
FROM TIME TO TIME, THE “SUBORDINATION AGREEMENT”), DATED AS OF JULY 8, 2015 BY AND AMONG [THE PURCHASERS] JOINTLY AND
SEVERALLY (COLLECTIVELY, “SUBORDINATED LENDER”), STAFFING 360 SOLUTIONS, INC., A NEVADA CORPORATION (“PARENT”),
CERTAIN OF THE PARENT’S SUBSIDIARIES PARTY THERETO AND MIDCAP FUNDING X TRUST, IN ITS CAPACITY AS AGENT FOR THE SENIOR LENDERS
(AS DEFINED IN THE SUBORDINATION AGREEMENT), AND EACH HOLDER AND TRANSFEREE OF THIS INSTRUMENT OR AGREEMENT, BY ITS ACCEPTANCE
HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT.

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT, dated as of July 8,
2015 (this “Agreement”), is among STAFFING 360 SOLUTIONS, INC., a Nevada corporation (the “Company”),
certain U.S. Subsidiaries of the Company (such subsidiaries, the “Guarantors” and together with the Company,
the “Debtors”) and the holders of the Company’s 8% Senior Secured Convertible Debenture Due April 1, 2017,
in the original aggregate principal amount of $3,920,000.00 (collectively and as they may be amended, restated, supplemented or
otherwise modified from time to time, the “Debentures”) signatory hereto, their endorsees, transferees and assigns
(collectively, the “Secured Parties”).

 

WITNESSETH:

 

WHEREAS, pursuant to the Purchase Agreement
(as defined in the Debentures), the Secured Parties have severally agreed to extend the loans to the Company evidenced by the Debentures;

 

WHEREAS, pursuant to a certain Subsidiary Guarantee,
dated as of the date hereof (the “Guarantee”), the Guarantors have jointly and severally agreed to guarantee
and act as surety for payment of such Debentures; and

 

WHEREAS, in order to induce the Secured Parties
to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and deliver to the Secured Parties this Agreement
and to grant the Secured Parties, pari passu with each other Secured Party and through the Agent (as defined in Section
18 hereof), a security interest in certain property of such Debtor to secure the prompt payment, performance and discharge
in full of all of the Company’s obligations under the Debentures and the Guarantors’ obligations under the Guarantee.

 

    	 

    	 

    

 

NOW, THEREFORE, in consideration of the agreements
herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

 

1.          Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used
but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel
paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”,
“investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”)
shall have the respective meanings given such terms in Article 9 of the UCC.

 

(a)          “Collateral”
means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the
following personal property of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence,
wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products
and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance
covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities, equity
interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of, or in
exchange for, any or all of the Pledged Securities (as defined below):

 

(i)          All
goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and
wherever situated, together with all documents of title and documents representing the same, all additions and accessions thereto,
replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in
connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory;

 

(ii)         All
contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, licenses,
distribution and other agreements, computer software (whether “off-the-shelf”, licensed from any third party or developed
by any Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures, grants and
rights, goodwill, Intellectual Property and income tax refunds;

 

(iii)        All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties
with respect to each account, including any right of stoppage in transit;

 

    	 

    	 

    

 

(iv)        All
documents, letter-of-credit rights, instruments and chattel paper;

 

(v)         All
commercial tort claims;

 

(vi)        All
deposit accounts and all cash (whether or not deposited in such deposit accounts);

 

(vii)       All
investment property;

 

(viii)      All
supporting obligations; and

 

(ix)         All
files, records, books of account, business papers, and computer programs; and

 

(x)          the
products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

 

Without limiting the generality of the
foregoing, the “Collateral” shall include all investment property and general intangibles respecting ownership
and/or other equity interests in each Guarantor, including, without limitation, the shares of capital stock and the other equity
interests listed on Schedule H hereto (as the same may be modified from time to time pursuant to the terms hereof), and
any other shares of capital stock and/or other equity interests of any other direct or indirect U.S. subsidiary of any Debtor obtained
in the future, and, in each case, all certificates representing such shares and/or equity interests and, in each case, all rights,
options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable or distributed in
respect of, or exchanged for, any of the foregoing and all rights arising under or in connection with the Pledged Securities, including,
but not limited to, all dividends, interest and cash.

 

Notwithstanding the foregoing, nothing
herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes void by operation
of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent that such applicable
law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided, however,
that to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset and, to the
extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.

 

    	 

    	 

    

 

(b)          “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent
of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications
for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof,
(iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service
marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country
or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under
the laws of the United States, any other country or any political subdivision thereof, (v) all rights to obtain any reissues, renewals
or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes of action for infringement of
the foregoing.

 

(c)          “Majority
in Interest” means, at any time of determination, the majority in interest (based on then-outstanding principal amounts
of Debentures at the time of such determination) of the Secured Parties.

 

(d)          “Necessary
Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly executed and
such other instruments or documents as the Agent (as that term is defined below) may reasonably request.

 

(e)          “Obligations”
means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become
due, or that are now or may be hereafter contracted or acquired, or owing to, of any Debtor to the Secured Parties, including,
without limitation, all obligations under this Agreement, the Debentures, the Guarantee and any other instruments, agreements or
other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with
others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any
portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may
be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing,
the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Debentures and the
loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Debtors from
time to time under or in connection with this Agreement, the Debentures, the Guarantee and any other instruments, agreements or
other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited
to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such
amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving
any Debtor.

 

    	 

    	 

    

 

(f)          “Organizational
Documents” means with respect to any Debtor, the documents by which such Debtor was organized (such as a certificate
of incorporation, certificate of limited partnership or articles of organization, and including, without limitation, any certificates
of designation for preferred stock or other forms of preferred equity) and which relate to the internal governance of such Debtor
(such as bylaws, a partnership agreement or an operating, limited liability or members agreement).

 

(g)          “Permitted
Indebtedness” shall have the meaning ascribed to such term in the Debenture.

 

(h)          “Permitted
Lien” shall have the meaning ascribed to such term in the Debenture.

 

(i)          “Pledged
Interests” shall have the meaning ascribed to such term in Section 4(j).

 

(j)          “Pledged
Securities” shall have the meaning ascribed to such term in Section 4(i).

 

(k)          “Senior
Lenders” shall have the meaning ascribed to such term in the Debenture.

 

(l)          “Senior
Loans” shall have the meaning ascribed to such term in the Debenture.

 

(m)          “Subsidiaries”
shall have the meaning ascribed to such term in the Purchase Agreement.

 

(n)          “Transaction
Documents” shall have the meaning ascribed to such term in the Purchase Agreement.

 

    	 

    	 

    

 

(o)          “U.S.
Subsidiaries” shall have the meaning ascribed to such term in the Purchase Agreement.

 

(o)          “UCC”
means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that
defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed
in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones
shall be controlling.

 

2.          Grant
of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Debentures
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations,
each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent for the benefit of the Secured
Parties and the Agent, a security interest in and to, a lien upon and a right of set-off against all of their respective right,
title and interest of whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively,
the “Security Interests”).

 

3.          Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver or cause to
be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged Securities
that are not being held in escrow by the Senior Lenders, and (b) any and all certificates and other instruments or documents representing
any of the other Collateral, in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the
execution hereof, delivering to Agent, or have previously delivered to Agent, a true and correct copy of each Organizational Document
governing any of the Pledged Securities.

 

4.          Representations,
Warranties, Covenants and Agreements of the Debtors. Except as set forth under the corresponding section of the disclosure
schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”), which Disclosure
Schedules shall be deemed a part hereof, each Debtor represents and warrants to, and covenants and agrees with, the Secured Parties
as follows:

 

(a)          Each Debtor has the requisite
corporate, partnership, limited liability company or other power and authority to enter into this Agreement and otherwise to carry
out its obligations hereunder. The execution, delivery and performance by each Debtor of this Agreement and the filings contemplated
therein have been duly authorized by all necessary action on the part of such Debtor and no further action is required by such
Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes the legal, valid and binding obligation
of each Debtor, enforceable against each Debtor in accordance with its terms except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies
of creditors and by general principles of equity.

 

    	 

    	 

    

 

(b)          The
Debtors have no place of business or offices where their respective books of account and records are kept (other than temporarily
at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule
A attached hereto. Except as specifically set forth on Schedule A, each Debtor is the record owner of the real property
where such Collateral is located, and there exist no mortgages or other liens on any such real property except for Permitted Liens
(as defined in the Debentures). Except as disclosed on Schedule A, none of such Collateral is in the possession of any consignee,
bailee, warehouseman, agent or processor.

 

(c)          Except
for Permitted Liens (as defined in the Debentures) and except as set forth on Schedule B attached hereto, the Debtors are
the sole owner of the Collateral (except for non-exclusive licenses granted by any Debtor in the ordinary course of business),
free and clear of any liens, security interests, encumbrances, rights or claims, and are fully authorized to grant the Security
Interests. Except as set forth on Schedule C attached hereto, there is not on file in any governmental or regulatory authority,
agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the
foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering or affecting
any of the Collateral. Except as set forth on Schedule C attached hereto and except pursuant to this Agreement, as long
as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such office
or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor of the
Secured Parties pursuant to the terms of this Agreement).

 

(d)          No
written claim has been received that any Collateral or any Debtor’s use of any Collateral violates the rights of any third
party. There has been no adverse decision to any Debtor’s claim of ownership rights in or exclusive rights to use the Collateral
in any jurisdiction or to any Debtor’s right to keep and maintain such Collateral in full force and effect, and there is
no proceeding involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body,
administrative or regulatory agency, arbitrator or other governmental authority.

 

(e)          Each
Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business
and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account and
records or tangible Collateral unless it delivers to the Secured Parties at least 30 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate
financing statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken to
perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing perfected lien in the
Collateral.

 

    	 

    	 

    

 

(f)          This
Agreement creates in favor of the Secured Parties a valid security interest in the Collateral, subject only to Permitted Liens
(as defined in the Debentures) securing the payment and performance of the Obligations. Upon making the filings described in the
immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing Uniform
Commercial Code financing statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code financing
statements referred to in the immediately following paragraph, the execution and delivery of deposit account control agreements
to the extent required by Section 9-104(a)(2) with respect to any deposit account of the Debtors, and the delivery of the certificates
and other instruments provided in Section 3, no action is necessary to create, perfect or protect the security interests
created hereunder. Without limiting the generality of the foregoing, except for the filing of said financing statements, no consent
of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental authority
or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation or perfection
of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of the Agent and the Secured
Parties hereunder.

 

(g)          Each
Debtor hereby authorizes the Agent to file one or more financing statements under the UCC, with respect to the Security Interests,
with the proper filing and recording agencies in any jurisdiction deemed proper by it; provided that Agent acknowledges and agrees
that no financing statement shall be filed for Faro Recruitment America, Inc. or Lighthouse Placement Services, LLC until the Senior
Lenders have first filed financing statements for such Security Interests.

 

(h)          The
execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational
Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing any Debtor’s
debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any Debtor is bound
or affected. If any, all required consents (including, without limitation, from stockholders or creditors of any Debtor) necessary
for any Debtor to enter into and perform its obligations hereunder have been obtained.

 

    	 

    	 

    

 

(i)          The
capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”) represent
all of the capital stock and other equity interests of the Guarantors, and represent all capital stock and other equity interests
owned, directly or indirectly, by the Company. All of the Pledged Securities are validly issued, fully paid and nonassessable,
and the Company is the legal and beneficial owner of the Pledged Securities, free and clear of any lien, security interest or other
encumbrance except for the security interests created by this Agreement and other Permitted Liens (as defined in the Debentures).

 

(j)          The
ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the “Pledged
Interests”) by their express terms do not provide that they are securities governed by Article 8 of the UCC and are not
held in a securities account or by any financial intermediary.

 

(k)          Except
for Permitted Liens (as defined in the Debentures), each Debtor shall at all times maintain the liens and Security Interests provided
for hereunder as valid and perfected liens and security interests in the Collateral in favor of the Secured Parties until this
Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof. Each Debtor hereby agrees
to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all Collateral
for the account of the Secured Parties. At the request of the Agent, each Debtor will sign and deliver to the Agent on behalf of
the Secured Parties at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory
to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Agent to be,
necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing,
each Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interests hereunder,
and each Debtor shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or subordinations of claims
and liens which may be required to maintain the priority of the Security Interests hereunder.

 

(l)          No
Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for (i)
non-exclusive licenses granted by a Debtor in its ordinary course of business and sales of inventory by a Debtor in its ordinary
course of business and (ii) Permitted Liens) without the prior written consent of a Majority in Interest.

 

(m)          Each
Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall
not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

 

    	 

    	 

    

 

(n)          Each
Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover
the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and
the insurer issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional insured
under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever,
such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent for at least
thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage
under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any default in the payment
of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined in the Debentures)
exists and if the proceeds arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance
will be applied by the applicable Debtor to the repair and/or replacement of property with respect to which the loss was incurred
to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall
be payable to the applicable Debtor; provided, however, that payments received by any Debtor after an Event of Default
occurs and is continuing or in excess of $100,000 for any occurrence or series of related occurrences shall be paid to the Agent
on behalf of the Secured Parties and, if received by such Debtor, shall be held in trust for the Secured Parties and immediately
paid over to the Agent unless otherwise directed in writing by the Agent. Copies of such policies or the related certificates,
in each case, naming the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and
at the time any new policy of insurance is issued.

 

(o)          Each
Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of
any material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on
the value of the Collateral or on the Secured Parties’ security interest, through the Agent, therein.

 

(p)          Each
Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time
to time request and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Parties’ security
interest in the Collateral.

 

    	 

    	 

    

 

(q)          Each
Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon
reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the Agent
from time to time.

 

(r)          Each
Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

(s)          Each
Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other information received by such Debtor that may materially affect
the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

 

(t)          All
information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of any Debtor with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(u)          The
Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any
rights and franchises material to its business.

 

(v)         No
Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has
one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written
notice to the Secured Parties of such change and, at the time of such written notification, such Debtor provides any financing
statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced
by this Agreement.

 

(w)          Except
in the ordinary course of business, no Debtor may consign any of its inventory or sell any of its inventory on bill and hold, sale
or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be unreasonably
withheld.

 

(x)          No
Debtor may relocate its chief executive office to a new location without providing 30 days prior written notification thereof to
the Secured Parties and so long as, at the time of such written notification, such Debtor provides any financing statements or
fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 

(y)          Each
Debtor was organized and remains organized solely under the laws of the state (or other jurisdiction in the case of a Debtor not
organized in the United States) set forth next to such Debtor’s name in Schedule D attached hereto, which Schedule
D sets forth each Debtor’s organizational identification number or, if any Debtor does not have one, states that one
does not exist.

 

    	 

    	 

    

 

(z)          
(i) The actual name of each Debtor is the name set forth in Schedule D attached hereto; (ii) no Debtor has any trade names
except as set forth on Schedule E attached hereto; (iii) no Debtor has used any name other than that stated in the preamble
hereto or as set forth on Schedule E for the preceding five years; and (iv) no entity has merged into any Debtor or been
acquired by any Debtor within the past five years except as set forth on Schedule E.

 

(aa)         At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require
or permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver
such Collateral to the Agent.

 

(bb)         Each
Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding the Pledged
Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106
(or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or one that
would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity other than the Senior
Lender.

 

(cc)         Each
Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery is not
possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created
by this Agreement. To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall cause the
underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(dd)         [Reserved.]

 

(ee)         To
the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

 

(ff)         To
the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Agent in notifying
such third party of the Secured Parties’ security interest in such Collateral and shall use its best efforts to obtain an
acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory
to the Agent.

 

(gg)         If
any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly notify the Secured Parties in
a writing signed by such Debtor of the particulars thereof and grant to the Secured Parties in such writing a security interest
therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory
to the Agent.

 

    	 

    	 

    

 

(hh)         Each
Debtor shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts with
any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in
such accounts and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate
with the Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal,
state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds
thereof.

 

(ii)         Each
Debtor shall cause each U.S. Subsidiary of such Debtor to immediately become a party hereto (an “Additional Debtor”),
by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply
with the provisions hereof applicable to the Debtors. Concurrent therewith, the Additional Debtor shall deliver replacement schedules
for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall
supersede, or supplements shall modify, the Schedules then in effect. The Additional Debtor shall also deliver such opinions of
counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements
and other information and documentation as the Agent may reasonably request. Upon delivery of the foregoing to the Agent, the Additional
Debtor shall be and become a party to this Agreement with the same rights and obligations as the Debtors, for all purposes hereof
as fully and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations,
warranties and covenants set forth herein as of the date of execution and delivery of such Additional Debtor Joinder, and all references
herein to the “Debtors” shall be deemed to include each Additional Debtor.

 

(jj)         Each
Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Debentures.

 

(kk)         Each
Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify each
issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties on
the books of such issuer. Further, except with respect to certificated securities delivered to the Agent, the applicable Debtor
shall deliver to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant
UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement
shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the
continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of
any designee of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions
of Agent regarding such Pledged Securities without the further consent of the applicable Debtor.

 

    	 

    	 

    

 

(ll)         In
the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another party
or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities,
each Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation,
bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness,
books of account, financial records and all other Organizational Documents and records of the Debtors and their direct and indirect
U.S. Subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the
Debtors and their direct and indirect U.S. Subsidiaries, if so requested; and (iii) use its best efforts to obtain any approvals
that are required by any governmental or regulatory body in order to permit the sale of the Pledged Securities to the Transferee
or the purchase or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the business of the
Debtors and their direct and indirect U.S. Subsidiaries.

 

(mm)         Without
limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be registered
at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby with
respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark Office
to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely or by license)
or creates any additional material Intellectual Property.

 

(nn)         Each
Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further instruments
and documents, and take all such further action as may be necessary or desirable, or as the Agent may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Parties to exercise
and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this
Agreement.

 

(oo)         Schedule
F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights,
and domain names owned by any of the Debtors as of the date hereof. Schedule F lists all material licenses in favor of any
Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks
of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtors
have been duly recorded at the United States Copyright Office.

 

    	 

    	 

    

 

(pp)         Except
as set forth on Schedule G attached hereto, none of the account debtors or other persons or entities obligated on any of
the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local
statute or rule in respect of such Collateral.

 

(qq)         Until
the Obligations shall have been paid and performed in full, the Company covenants that it shall promptly direct any direct or indirect
U.S. Subsidiary of the Company formed or acquired after the date hereof to enter into a Subsidiary Guarantee in favor of the Secured
Party, in the form attached as an exhibit to the Purchase Agreement.

 

5.          Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership
interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests
upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets
of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement
of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights
notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor
is party.

 

6.          Defaults.
The following events shall be “Events of Default”:

 

(a)     The occurrence of an Event of
Default (as defined in the Debentures) under the Debentures;

 

(b)     Any representation or warranty
of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)     The failure by any Debtor to observe
or perform any of its obligations hereunder for five (5) days after delivery to such Debtor of notice of such failure by or on
behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame and such Debtor is
using best efforts to cure same in a timely fashion; or

 

(d)     If any provision of this Agreement
shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested
by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having jurisdiction over any
Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any Debtor has any liability
or obligation purported to be created under this Agreement.

 

    	 

    	 

    

 

7.          Duty
To Hold In Trust.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, each Debtor shall, upon receipt of any revenue, income, dividend,
interest or other sums subject to the Security Interests, whether payable pursuant to the Debentures or otherwise, or of any check,
draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the
Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata
in proportion to their respective then-currently outstanding principal amount of Debentures for application to the satisfaction
of the Obligations (and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of the remaining Debentures).

 

(b)          If
any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares
of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization,
reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of
its direct or indirect U.S. Subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of,
or in exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Secured
Parties; (ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all
certificates or instruments evidencing the same to Agent on or before the close of business on the fifth business day following
the receipt thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject
to the terms of this Agreement as Collateral.

 

8.          Rights
and Remedies Upon Default.

 

(a)          Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have the
right to exercise all of the remedies conferred hereunder and under the Debentures, and the Secured Parties shall have all the
rights and remedies of a secured party under the UCC. Without limitation, the Agent, for the benefit of the Secured Parties, shall
have the following rights and powers:

 

(i)          The
Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor shall
assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at such Debtor’s
premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective premises and facilities
for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

 

    	 

    	 

    

 

(ii)         Upon
notice to the Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be authorized
to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Parties,
any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s
discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right (but
not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof, including,
without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger,
reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or any Debtor or any
of its direct or indirect U.S. Subsidiaries.

 

(iii)        The Agent shall have the right
to operate the business of each Debtor using the Collateral and shall have the right to assign, sell, lease or otherwise dispose
of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions
or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such
place or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all without (except as shall
be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption
of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral, the Agent,
for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot be waived, purchase all or any part
of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of any Debtor, which
are hereby waived and released.

 

(iv)        The
Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtors’ rights against such
account debtors and obligors.

 

(v)         The
Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other person
or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

 

    	 

    	 

    

 

(vi)        The
Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the United
States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any purchaser
of any Collateral.

 

(b)          The
Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered
adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving
any warranties and may specifically disclaim such warranties. If the Agent sells any of the Collateral on credit, the Debtors will
only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it may have
to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including, without
limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and
remedies with respect thereto.

 

(c)          For
the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by
agreement or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense
following an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same
may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored
and to all computer software and programs used for the compilation or printout thereof.

 

9.          Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on
account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding,
storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Agent
in enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral,
and then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of
Debentures at the time of any such determination), and to the payment of any other amounts required by applicable law, after which
the Secured Parties shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of
the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the
Debtors will be liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser amount permitted
by applicable law (the “Default Rate”), and the reasonable fees of any attorneys employed by the Secured Parties
to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages and demands against
the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross
negligence or willful misconduct of the Secured Parties as determined by a final judgment (not subject to further appeal) of a
court of competent jurisdiction.

 

    	 

    	 

    

 

10.         Securities
Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part
of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales to
a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for investment
and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be at prices and on terms
less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the sale of any
Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public under the Securities
Laws. Each Debtor shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws (including, without
limitation, registration thereunder if requested by Agent) applicable to the sale of the Pledged Securities by Agent.

 

11.         Costs
and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any
filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements,
partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.
The Debtors shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice,
imperil or otherwise affect the Collateral or the Security Interests therein. The Debtors will also, upon demand, pay to the Agent
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection,
satisfaction, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance,
amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable
fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the
Secured Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the
sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the
rights of the Secured Parties under the Debentures. Until so paid, any fees payable hereunder shall be added to the principal amount
of the Debentures and shall bear interest at the Default Rate.

 

    	 

    	 

    

 

12.         Responsibility
for Collateral. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations
shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability
for any reason. Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i) has any duty
(either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating
to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor shall
remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed by such Debtor
thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract or agreement
by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating to any of
the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Debtor
under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by
the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any
such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled at any time
or times.

 

13.         Security
Interests Absolute. All rights of the Secured Parties and all obligations of the Debtors hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement entered into in
connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure
from the Debentures or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection
of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any
guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust, settle
and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any
other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all
or any part of the Security Interests granted hereby. Until the Obligations shall have been paid and performed in full, the rights
of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation, the running
of the statute of limitations or bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice
of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received
by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to
any party other than the Secured Parties, then, in any such event, each Debtor’s obligations hereunder shall survive cancellation
of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement,
but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives
all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral which the Secured
Parties may hold at any time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense arising by reason
of the application of the statute of limitations to any obligation secured hereby.

 

    	 

    	 

    

 

14.         Term
of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Debentures
have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that
all indemnities of the Debtors contained in this Agreement (including, without limitation, Annex B hereto) shall survive
and remain operative and in full force and effect regardless of the termination of this Agreement.

 

15.         Power
of Attorney; Further Assurances.

 

(a)          Each
Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors or assigns
with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of the Agent
or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts,
money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect
of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant to the
UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge
taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv)
to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual
Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the expense
of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to do all acts
and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests granted
therein in order to effect the intent of this Agreement and the Debentures all as fully and effectually as the Debtors might or
could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power
of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of
the Obligations shall be outstanding. The designation set forth herein shall be deemed to amend and supersede any inconsistent
provision in the Organizational Documents or other documents or agreements to which any Debtor is subject or to which any Debtor
is a party. Without limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of Default,
the Agent on behalf of the secured Parties and each Secured Party is specifically authorized to execute and file any applications
for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with the United
States Patent and Trademark Office and the United States Copyright Office.

 

    	 

    	 

    

 

(b)          On
a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper
filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C
attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably
requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes
of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest in all
the Collateral under the UCC.

 

(c)          Each
Debtor hereby irrevocably appoints the Agent as such Debtor’s attorney-in-fact, with full authority in the place and instead
of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and to execute
any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing,
in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral
without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral
as “all assets” or “all personal property” or words of like import, and ratifies all such actions taken
by the Agent for the benefit of the Secured Parties. This power of attorney is coupled with an interest and shall be irrevocable
for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

 

16.         Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement
(as such term is defined in the Debentures).

 

17.         Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other person, firm, corporation or other entity, then the Agent, on behalf of the Secured Parties,
shall have the right, in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect
thereto, without in any way modifying or affecting any of the Secured Parties’ rights and remedies hereunder.

 

18.         Appointment
of Agent. The Secured Parties hereby appoint Hillair Capital Management LLC to act as their agent (“Agent”)
for purposes of exercising any and all rights and remedies of the Secured Parties hereunder. Such appointment shall continue until
revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Agent, provided that the
Agent may not be removed as Agent unless Agent shall then hold less than $[500,000] in principal amount of Debentures; provided,
further, that such removal may occur only if each of the other Secured Parties shall then hold not less than an aggregate
of $[3,500,000] in principal amount of Debentures. The Agent shall have the rights, responsibilities and immunities set forth in
Annex B hereto.

 

    	 

    	 

    

 

19.         Miscellaneous.

 

(a)          No
course of dealing between the Debtors and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on the
part of the Secured Parties, any right, power or privilege hereunder or under the Debentures shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

(b)          All
of the rights and remedies of the Secured Parties, and of the Agent on behalf of the Secured Parties, with respect to the Collateral,
whether established hereby or by the Debentures or by any other agreements, instruments or documents or by law shall be cumulative
and may be exercised singly or concurrently.

 

(c)          This
Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which
the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this Agreement
may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Debtors
and by the Secured Parties holding 67% or more of the principal amount of Debentures then outstanding, or, in the case of a waiver,
by the party against whom enforcement of any such waived provision is sought.

 

(d)          If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(e)          No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

    	 

    	 

    

 

(f)          This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company
and the Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each
Secured Party. Any Secured Party may assign any or all of its rights under this Agreement to any Person (as defined in the Purchase
Agreement) to whom such Secured Party assigns or transfers any rights with respect to any Obligations, provided such transferee
agrees in writing to be bound, with respect to such transferred rights, by the provisions of this Agreement that apply to the “Secured
Parties.”

 

(g)          Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(h)          Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Except to the extent mandatorily
governed by the jurisdiction or situs where the Collateral is located, each Debtor agrees that all proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and the Debentures (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Except to the extent mandatorily
governed by the jurisdiction or situs where the Collateral is located, each Debtor hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to
process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby.

 

    	 

    	 

    

 

(i)          This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)          All
Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Parties hereunder.

 

(k)          Each
Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members, shareholders,
officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively,
“Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and
expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the foregoing) imposed
on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from the transactions
contemplated hereby or by the other Transaction Documents, except any such losses, claims, liabilities, damages, penalties, suits,
costs and expenses which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable
decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any
other indemnification provision in the Debentures, the Purchase Agreement (as such term is defined in the Debentures) or any other
agreement, instrument or other document executed or delivered in connection herewith or therewith.

 

(l)          Nothing
in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in any Debtor or any of its
direct or indirect U.S. Subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect U.S. Subsidiaries
that is a limited liability company, nor shall Agent or any Secured Party be deemed to have assumed any obligations under any partnership
agreement or limited liability company agreement, as applicable, of any such Debtor or any of its direct or indirect U.S. Subsidiaries
or otherwise, unless and until any such Secured Party exercises its right to be substituted for such Debtor as a partner or member,
as applicable, pursuant hereto.

 

(m)          To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent,
approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect U.S. Subsidiary of any Debtor
or compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and approval and
waive any such noncompliance with the terms of said documents.

 

[SIGNATURE PAGES FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Security Agreement to be duly executed on the day and year first above written.

 

	Staffing 360 Solutions, Inc.	 
	 	 	 
	By:	/s/ Jeff R. Mitchell	 
	 	Name: Jeff R. Mitchell	 
	 	Title: Chief Financial Officer	 
	 	 
	FARO RECRUITMENT AMERICA, INC.	 
	 	 	 
	By:	/s/ Jeff R. Mitchell	 
	 	Name: Jeff R. Mitchell	 
	 	Title: Treasurer	 
	 	 
	MONROE STAFFING SERVICES, LLC	 
	 	 	 
	By:	/s/ Jeff R. Mitchell	 
	 	Name: Jeff R. Mitchell	 
	 	Title: Treasurer	 
	 	 
	PEOPLESERVE, INC.	 
	 	 	 
	By:	/s/ Jeff R. Mitchell	 
	 	Name: Jeff R. Mitchell	 
	 	Title: Secretary and Treasurer	 
	 	 
	CONTROL SOLUTIONS INTERNATIONAL, INC.	 
	 	 	 
	By:	/s/ Jeff R. Mitchell	 
	 	Name: Jeff R. Mitchell	 
	 	Title: Secretary and Treasurer	 

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	 

    	 

    

 

[SIGNATURE PAGE OF HOLDERS]

 

Name of Investing Entity: /s/ Hillair Capital Investments L.P.      

 

Signature of Authorized Signatory of Investing entity: /s/
Sean M. McAvoy            

 

Name of Authorized Signatory: Sean M. McAvoy                        

 

Title of Authorized Signatory: Managing Member, Hillair Capital
Advisors LLC

 

    	 

    	 

    

 

ANNEX A

to

SECURITY

AGREEMENT

 

FORM OF
ADDITIONAL DEBTOR JOINDER

 

Security Agreement dated as of July __,
2015 made by

Staffing 360 Solutions, Inc. and certain
of its subsidiaries party thereto

from time to time, as Debtors to and in
favor of

the Secured Parties identified therein (the
“Security Agreement”)

 

Reference is made to the Security Agreement
as defined above; capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in,
or by reference in, the Security Agreement.

 

The undersigned hereby agrees that upon
delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned shall (a) be an Additional
Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtors under the Security Agreement as fully
and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to have made the representations
and warranties set forth therein as of the date of execution and delivery of this Additional Debtor Joinder. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE AGENT ON BEHALF OF THE SECURED PARTIES A SECURITY INTEREST
IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS
SET FORTH THEREIN.

 

Attached hereto are supplemental and/or
replacement Schedules to the Security Agreement, as applicable.

 

An executed copy of this Joinder shall be
delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth herein on or after the date hereof.
This Joinder shall not be modified, amended or terminated without the prior written consent of the Secured Parties.

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF, the undersigned has
caused this Joinder to be executed in the name and on behalf of the undersigned.

 

		[Name of Additional Debtor
	 	 
	 	By:
	 	 
		Name:
		Title:
	 	 
		Address:

 

 

 Dated:

 

    	 

    	 

    

 

ANNEX B

to

SECURITY

AGREEMENT

 

THE AGENT

 

1. Appointment. The Secured
Parties (all capitalized terms used herein and not otherwise defined shall have the respective meanings provided in the Security
Agreement to which this Annex B is attached (the “Agreement”)), by their acceptance of the benefits of
the Agreement, hereby designate [_____] (“[_____]” or “Agent”) as the Agent to act as specified
herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its behalf
under the provisions of the Agreement and any other Transaction Document (as such term is defined in the Purchase Agreement) and
to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the
Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent may perform any of
its duties hereunder by or through its agents or employees.

 

2. Nature of Duties. The Agent
shall have no duties or responsibilities except those expressly set forth in the Agreement. Neither the Agent nor any of its partners,
members, shareholders, officers, directors, employees or agents shall be liable for any action taken or omitted by it as such under
the Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error
of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined
by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Agent shall be mechanical
and administrative in nature; the Agent shall not have by reason of the Agreement or any other Transaction Document a fiduciary
relationship in respect of any Debtor or any Secured Party; and nothing in the Agreement or any other Transaction Document, expressed
or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect of the Agreement or
any other Transaction Document except as expressly set forth herein and therein.

 

3. Lack of Reliance on the Agent. Independently
and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate, has made and shall continue to make
(i) its own independent investigation of the financial condition and affairs of the Company and its subsidiaries in connection
with such Secured Party’s investment in the Debtors, the creation and continuance of the Obligations, the transactions contemplated
by the Transaction Documents, and the taking or not taking of any action in connection therewith, and (ii) its own appraisal of
the creditworthiness of the Company and its subsidiaries, and of the value of the Collateral from time to time, and the Agent shall
have no duty or responsibility, either initially or on a continuing basis, to provide any Secured Party with any credit, market
or other information with respect thereto, whether coming into its possession before any Obligations are incurred or at any time
or times thereafter. The Agent shall not be responsible to the Debtors or any Secured Party for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other writing delivered in connection herewith, or for
the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of the
Agreement or any other Transaction Document, or for the financial condition of the Debtors or the value of any of the Collateral,
or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions
of the Agreement or any other Transaction Document, or the financial condition of the Debtors, or the value of any of the Collateral,
or the existence or possible existence of any default or Event of Default under the Agreement, the Debentures or any of the other
Transaction Documents.

 

    	 

    	 

    

 

4. Certain Rights of the Agent. The
Agent shall have the right to take any action with respect to the Collateral, on behalf of all of the Secured Parties. To the extent
practical, the Agent shall request instructions from the Secured Parties with respect to any material act or action (including
failure to act) in connection with the Agreement or any other Transaction Document, and shall be entitled to act or refrain from
acting in accordance with the instructions of a Majority in Interest; if such instructions are not provided despite the Agent’s
request therefor, the Agent shall be entitled to refrain from such act or taking such action, and if such action is taken, shall
be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken by the Agent; and the Agent
shall not incur liability to any person or entity by reason of so refraining. Without limiting the foregoing, (a) no Secured Party
shall have any right of action whatsoever against the Agent as a result of the Agent acting or refraining from acting hereunder
in accordance with the terms of the Agreement or any other Transaction Document, and the Debtors shall have no right to question
or challenge the authority of, or the instructions given to, the Agent pursuant to the foregoing and (b) the Agent shall not be
required to take any action which the Agent believes (i) could reasonably be expected to expose it to personal liability or (ii)
is contrary to this Agreement, the Transaction Documents or applicable law.

 

5. Reliance. The Agent shall be entitled
to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement, certificate, telex, teletype
or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by the proper person
or entity, and, with respect to all legal matters pertaining to the Agreement and the other Transaction Documents and its duties
thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this Agreement and the other Transaction
Documents and its duties thereunder, upon advice of other experts selected by it. Anything to the contrary notwithstanding, the
Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral exists or is owned by the Debtors
or is cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or
lawfully created, perfected, or enforced or are entitled to any particular priority.

 

    	 

    	 

    

 

6. Indemnification. To the extent
that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties will jointly and severally reimburse and indemnify
the Agent, in proportion to their initially purchased respective principal amounts of Debentures, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against the Agent in performing its duties hereunder or under
the Agreement or any other Transaction Document, or in any way relating to or arising out of the Agreement or any other Transaction
Document except for those determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction to
have resulted solely from the Agent’s own gross negligence or willful misconduct. Prior to taking any action hereunder as
Agent, the Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary
to protect the Agent for costs and expenses associated with taking such action.

 

7. Resignation by the Agent. 

 

(a) The Agent may resign from
the performance of all its functions and duties under the Agreement and the other Transaction Documents at any time by giving 30
days’ prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties. Such resignation shall
take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.

 

(b) Upon any such notice of resignation,
the Secured Parties, acting by a Majority in Interest, shall appoint a successor Agent hereunder.

 

(c) If a successor Agent shall
not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent who shall serve as Agent until
such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor Agent has not been appointed
within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead the Debtors and the Secured
Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not limited to, extraordinary fees
associated with the filing of interpleader and expenses associated therewith, shall be payable by the Debtors on demand.

 

8. Rights with respect to Collateral.
Each Secured Party agrees with all other Secured Parties and the Agent (i) that such Secured Party shall not, and shall not attempt
to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement or otherwise
(other than pursuant to this Agreement), or take or institute any action against the Agent or any of the other Secured Parties
in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement) and
(ii) that such Secured Party has no other rights with respect to the Collateral other than as set forth in this Agreement and the
other Transaction Documents. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent
shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent and the retiring
Agent shall be discharged from its duties and obligations under the Agreement.  After any retiring Agent’s resignation
or removal hereunder as Agent, the provisions of the Agreement including this Annex B shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent.Exhibit 10.3

 

EXECUTION COPY

CONFIDENTIAL

 

 

 

EQUITY PURCHASE AGREEMENT

 

by and among

 

ALISON FOGEL and DAVID FOGEL,

as Sellers,

 

LIGHTHOUSE PLACEMENT SERVICES, LLC,

as the Company

 

and

 

STAFFING 360 SOLUTIONS, INC.,

as Buyer

 

Dated as of July 8, 2015

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS:

 

	I. PURCHASE OF MEMBERSHIP INTERESTS	1
	 	 
	1.1. Purchase of Membership Interests	1
	1.2. Purchase Price	1
	1.3. Payment of Closing Purchase Price	1
	1.4. Estimated Closing Statement	2
	1.5. Post-Closing Purchase Price Adjustment	2
	1.6. Net Working Capital	4
	1.7. Minimum Buyer Common Stock Price	5
	 	 
	II. [RESERVED]	5
	 	 
	III. CLOSING	5
	 	 
	3.1. Closing	5
	3.2. Closing Deliveries by Sellers	5
	3.3. Closing Deliveries by Buyer	6
	 	 
	IV. REPRESENTATIONS AND WARRANTIES OF SELLERS	7
	 	 
	4.1. Organization and Qualification	7
	4.2. Authorization and Binding Effect; Corporate Documentation	8
	4.3. Title to the Purchased Interests	8
	4.4. Capitalization	8
	4.5. Subsidiaries	8
	4.6. Non-Contravention	9
	4.7. Financial Statements	9
	4.8. Absence of Liabilities	9
	4.9. Absence of Certain Changes	10
	4.10. Title to and Sufficiency of Assets	10
	4.11. Personal Property	10
	4.12. Real Property	10
	4.13. Intellectual Property	11
	4.14. Compliance with Laws	12
	4.15. Permits	13
	4.16. Litigation	13
	4.17. Contracts	13
	4.18. Tax Matters	15
	4.19. Environmental Matters	15
	4.20. Employee Benefit Plans	16
	4.21. Employees and Labor Matters	17
	4.22. Insurance	18
	4.23. Transactions with Related Persons	19
	4.24. Government Contracts	19
	4.25. Bank Accounts	20
	4.26. Suppliers and Customers; Products	20
	4.27. Investment Intent	20
	4.28. Disclosure	20
	4.29. No Brokers	21
	4.30. No Other Representations and Warranties	21
	 	 
	V. REPRESENTATIONS AND WARRANTIES OF BUYER	21
	 	 
	5.1. Organization and Qualification	21
	5.2. Authorization	21
	5.3. Non-Contravention	21
	5.4. The Shares	21
	5.5. No Brokers	21

 

    	-i-

    	 

    

 

	5.6. Litigation	22
	5.7. Investment Intent	22
	5.8. Financial Capacity	22
	5.9. Foreign Corrupt Practices Act	22
	5.10. Solvency	22
	5.11. No Other Representations and Warranties	22
	 	 
	VI. OTHER AGREEMENTS	22
	 	 
	6.1. Further Assurances	22
	6.2. Confidentiality	23
	6.3. Publicity	23
	6.4. Litigation Support	23
	6.5. Agreement Regarding Intellectual Property	23
	6.6. Release and Covenant Not to Sue	24
	6.7. Lock-Up	24
	6.8. Piggy-Back Registration Rights	25
	6.9. Tax Matters	27
	6.10. Security Clearance	28
	6.11. Future Operations	29
	 	 
	VII. INDEMNIFICATION	29
	 	 
	7.1. Survival	29
	7.2. Indemnification by Sellers	30
	7.3. Indemnification by Buyer	30
	7.4. Indemnification Procedures	31
	7.5. Limitations on Indemnification	32
	7.6. General Indemnification Provisions	33
	7.7 Timing of Payment; Right to Set-Off; Recovery of Shares	34
	 	 
	IX. GENERAL PROVISIONS	35
	 	 
	8.1. Expenses	35
	8.2. Notices	35
	8.3. Sellers Not Authorized to Act on Behalf of Buyer	35
	8.4. Severability	36
	8.5. Assignment	36
	8.6. No Third-Party Beneficiaries	36
	8.7. Amendment; Waiver	36
	8.8. Entire Agreement	36
	8.9. Remedies	37
	8.10. Governing Law; Jurisdiction; Waiver of Jury Trial	37
	8.11. Interpretation	37
	8.12. Mutual Drafting	38
	8.13. Counterparts	38
	8.14. Seller Representative	38

 

EXHIBITS:

	A	Definitions
	B-1	Form of Three Year Note
	B-2	Form of Two Year Note
	C	Form of Non-Competition Agreement
	D	Form of Employment Agreements
	E	Form of Legal Opinion

 

    	-ii-

    	 

    

 

EQUITY PURCHASE AGREEMENT

 

This EQUITY PURCHASE
AGREEMENT (this “Agreement”), is made and entered into as of July 8, 2015, by and among (i) Alison Fogel
and David Fogel (together, “Sellers”), (ii) Lighthouse Placement Services, LLC, a Massachusetts limited
liability company (the “Company” and together with the Sellers, the “Seller Parties”),
and (iii) Staffing 360 Solutions, Inc., a Nevada corporation (“Buyer”).

 

RECITALS

 

WHEREAS, Sellers own
all of the issued and outstanding membership interests of the Company;

 

WHEREAS, Sellers desire
to sell and convey to Buyer, and Buyer desires to purchase from Sellers, all of the issued and outstanding membership interests
of the Company, subject to the terms and conditions set forth herein; and

 

WHERAS, certain capitalized
terms used herein are defined in Exhibit A.

 

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

 

ARTICLE
I

PURCHASE OF MEMBERSHIP INTERESTS

 

1.1.        Purchase
of Membership Interests. At the Closing, and on the terms and subject to all of the conditions of this Agreement, Sellers will
sell, transfer, assign and convey to Buyer, and Buyer will purchase and accept from Sellers, one hundred percent (100%) of the
membership interests of the Company (the “Purchased Interests”), free and clear of any and all Liens.
The parties hereto hereby acknowledge and agree that effective upon the Closing, Buyer shall be the sole member and Managing
Member of the Company, and neither Seller shall be a member, manager or Managing Member of the Company.

 

1.2.        Purchase
Price. In full payment for the Purchased Interests, Buyer shall pay to Sellers an aggregate purchase price (the “Purchase
Price”) equal to (as each such amount is finally determined in accordance with this ARTICLE I) the product
of (a) four and three-tenths (4.3), multiplied by (b) the trailing twelve (12) full fiscal month Adjusted EBITDA as of the end
of the last fiscal month immediately prior to the Closing.

 

1.3.        Payment
of Closing Purchase Price. At the Closing, Buyer shall pay the portion of the Purchase Price payable at the Closing as follows:

 

(a)          Buyer
shall pay to Sellers, by wire transfer in immediately available funds to such account or accounts as designated by Sellers in the
Estimated Closing Statement or, if mutually agreed by Buyer and Sellers, by delivery of a certified or bank cashier’s check
payable to, or upon the order of, Sellers, an amount in cash equal to (i) forty percent (40%) of the Estimated Purchase Price,
less (ii) any amounts paid pursuant to Section 1.3(d).

 

(b)          Buyer
shall pay to Sellers by delivery of a number of shares of Buyer Common Stock equal in total value to ten percent (10%) of the Estimated
Purchase Price, with each such share of Buyer Common Stock valued at the Buyer Common Stock Price (such shares of Buyer Common
Stock, along with any additional shares of Buyer Common Stock issued after the Closing in connection with the Adjustment Amount
in accordance with Section 1.5(d), and/or the exercise of a Conversion Right (as respectively defined in the Notes), the
“Shares”), with such Shares subject to Sections 6.7 and 6.8 hereof.

 

    	-1-

    	 

    

 

(c)          Buyer
shall deliver to the Sellers (i) an unsecured promissory note in the form of Exhibit B-1 hereto (the “Three
Year Note”) with an initial principal amount equal to forty percent (40%) of the Estimated Purchase Price and (ii)
an unsecured promissory note in the form of Exhibit B-2 hereto (the “Two Year Note” and together
with the Three Year Note, the “Notes”) with an initial principal amount equal to ten percent (10%) of
the Estimated Purchase Price.

 

(d)          Buyer
shall make the following additional payments of the Purchase Price: (i) the amount of the outstanding Indebtedness, if any, will
be paid by Buyer to the applicable creditor(s) as indicated on the Estimated Closing Statement; (ii) the amount of the unpaid Transaction
Expenses, if any, will be paid by Buyer to the applicable service provider(s) as indicated on the Estimated Closing Statement;
and (iii) the amount of unpaid Transaction Bonuses, if any, will be paid by Buyer to the Lighthouse Companies for distribution
to the recipients thereof as indicated on the Estimated Closing Statement.

 

Each Seller shall receive
such Seller’s pro rata share of the Purchase Price (and each form of consideration) based on the percentage of Purchased
Interests owned by such Seller. The parties acknowledge that such amounts shall be subject to adjustment after the Closing based
on the Adjustment Amount in accordance with Section 1.5.

 

1.4.        Estimated
Closing Statement. Prior to the Closing, Sellers will have delivered to Buyer a certificate signed by Sellers (the “Estimated
Closing Statement”) and reasonably acceptable to Buyer, setting forth Sellers’ good faith estimate (including
all calculations in reasonable detail) based on the financial statements and books and records of the Lighthouse Companies of (i)
the Purchase Price (the “Estimated Purchase Price”), including the calculation of the trailing twelve
full fiscal month Adjusted EBITDA as of the end of the last fiscal month immediately prior to the Closing, (ii) the Net Working
Capital and Closing Accounts Receivable, and attaching an estimated consolidated balance sheet of the Lighthouse Companies as of
the Closing, (iii) the amount that Indebtedness will be on the Closing Date, identifying the amount owed to each creditor thereof,
together with payoff letters from the Lighthouse Company’s creditors in form and substance reasonably acceptable to Buyer,
(iv) the amount that Transaction Expenses will be on the Closing Date, including the amount owed to each payee thereof, and (v)
the amount of the Transaction Bonuses, including the amount owed to each payee thereof. The Estimated Closing Statement shall be
prepared applying the definitions of Net Working Capital and Adjusted EBITDA contained herein. The Estimated Closing Statement
shall also include the wire transfer instructions for any payments to be made under Section 1.3.

 

1.5.        Post-Closing
Purchase Price Adjustment.

 

(a)          As
soon as practicable (but in any event, within ninety (90) days) after the Closing, Buyer will deliver to Sellers an audited consolidated
income statement, balance sheet and statement of cash flows for the Lighthouse Companies for each of (i) the fiscal year ending
December 31, 2014 and (ii) the twelve (12) fiscal month period ending on and as of the end of the last fiscal month immediately
prior to the Closing, along with an unqualified audit opinion from an independent certified public accountant reasonably acceptable
to Buyer and Sellers (the “Auditor”) (collectively, the “Audited Statements”).
Each of Buyer and Sellers will, and will cause their respective Representatives to, provide the Auditor with reasonable access
to the Lighthouse Companies’ books, records, personnel and property to the extent reasonably necessary to prepare the Audited
Statements.

 

    	-2-

    	 

    

 

(b)          As
soon as practicable (but in any event within sixty (60) days) after Buyer’s delivery of the Audited Statements, Buyer will
prepare and deliver to the Seller Representative a certificate (“Buyer Closing Statement”) that sets
forth Buyer’s determination (along with Buyer’s detailed calculation thereof) of (i) the Purchase Price, including
the calculation of the trailing twelve full fiscal month Adjusted EBITDA as of the end of the last fiscal month immediately prior
to the Closing based on the Audited Statements and (ii) the calculation of the Net Working Capital.

 

(c)          The
Seller Representative will have forty-five (45) days after its receipt of the Buyer Closing Statement to review it. To the extent
reasonably required to complete their review of the Buyer Closing Statement, the Seller Representative and its Representatives
will be provided with reasonable access to the books, records and working papers of Buyer and the Lighthouse Companies used to
prepare the Buyer Closing Statement, Buyer’s and the Lighthouse Companies’ finance personnel and any other information
of the Lighthouse Companies that the Seller Representative reasonably requests relating to the determination of Purchase Price,
and Buyer and the Lighthouse Companies shall cooperate with the Seller Representative and its Representatives in connection therewith.
The Seller Representative may deliver notice to Buyer on or prior to the forty-fifth (45th) day after receipt of the
Buyer Closing Statement specifying in reasonable detail all disputed items and the basis therefor. If the Seller Representative
fails to deliver such notice in such forty-five (45) day period, the Seller Representative (on behalf of Sellers) will have waived
its right to contest the Buyer Closing Statement. If the Seller Representative notifies Buyer of any objections to the Buyer Closing
Statement in such forty-five (45) day period, the Seller Representative and Buyer will, within thirty (30) days following the date
of such notice, attempt to resolve their differences and any written resolution by them as to any disputed amount will be final
and binding for all purposes under this Agreement. If at the conclusion of such thirty (30) day period Buyer and the Seller Representative
have not reached an agreement on any objections with respect to the Buyer Closing Statement, then upon then upon request of either
Buyer or the Seller Representative, the parties will resolve the dispute by way of the Dispute Resolution Procedure.

 

    	-3-

    	 

    

 

(d)          The
term “Final Statement” will mean the definitive statement agreed to by the Seller Representative and
Buyer in accordance with Section 1.5(c) or the definitive statement resulting from the determination made by the Independent
Expert in accordance with the Dispute Resolution Procedure, and the term “Final Statement Date” shall
mean the date on which the Final Statement is determined in accordance with this Agreement. For purposes of this Agreement, the
“Adjustment Amount” shall mean an amount equal to the finally determined Purchase Price as shown on the
Final Statement minus the amount of the Estimated Purchase Price. If the Adjustment Amount is a positive amount, then Buyer shall
pay to Sellers the Adjustment Amount as follows: (i) Buyer shall pay to Sellers within ten (10) Business Days after the Final Statement
Date an amount in cash equal to forty percent (40%) of the Adjustment Amount by wire transfer in immediately available funds to
such account as designated by Sellers in writing or, if mutually agreed by Buyer and Seller Representative, by delivery of a certified
or bank cashier’s check payable to, or upon the order of, Sellers; (ii) Buyer shall pay to Sellers by delivering, promptly
(but in any event within ten (10) Business Days) after the Final Statement Date, a number of Shares equal in total value to ten
percent (10%) of the Adjustment Amount, with each such Share valued at the Buyer Common Stock Price, with such Shares subject to
subject to Section 6.7 hereof; (iii) the principal amount of the Three Year Note shall increase by an amount equal to forty
percent (40%) of the Adjustment Amount (increasing the Quarterly Installments (as defined in the Three Year Note) thereunder (the
“Three Year Note Quarterly Installments”) as if the Three Year Note had originally been issued at such
principal amount, and requiring Buyer to make a one-time adjustment to pay the difference between the Three Year Note Quarterly
Installments paid prior to such date and the Three Year Note Quarterly Installments that would have been paid prior to such date
using the adjusted Three Year Note Quarterly Installment after giving effect to the increase in principal amount); and (iv) the
principal amount of the Two Year Note shall increase by an amount equal to ten percent (10%) of the Adjustment Amount (increasing
the Quarterly Installments (as defined in the Two Year Note) thereunder (the “Two Year Note Quarterly Installments”)
as if the Two Year Note had originally been issued at such principal amount, and requiring Buyer to make a one-time adjustment
to pay the difference between the Two Year Note Quarterly Installments paid prior to such date and the Two Year Note Quarterly
Installments that would have been paid prior to such date using the adjusted Two Year Note Quarterly Installment after giving effect
to the increase in principal amount). Any payments required to be made to Sellers pursuant to the preceding clauses (iii) and (iv)
shall be made at the same time and in the same manner as any payment required to be made to Sellers pursuant to the preceding clause
(i). If the Adjustment Amount is a negative amount, then Sellers shall jointly and severally pay to Buyer the Adjustment Amount
as follows: (i) Sellers shall pay to Buyer within ten (10) Business Days after the Final Statement Date an amount in cash equal
to forty percent (40%) of the Adjustment Amount by wire transfer in immediately available funds to such account(s) as designated
by Buyer in writing; (ii) Sellers shall pay by delivery to Buyer, promptly (but in any event within ten (10) Business Days) after
the Final Statement Date, of a number of Shares equal in total value to ten percent (10%) of the Adjustment Amount, with each such
Share valued at the Buyer Common Stock Price; (iii) the principal amount of the Three Year Note shall decrease by an amount equal
to forty percent (40%) of the Adjustment Amount (decreasing the Three Year Note Quarterly Installments thereunder as if the Three
Year Note had originally been issued at such principal amount, and requiring Sellers to make a one-time adjustment to pay the difference
between the Three Year Note Quarterly Installments paid prior to such date and the Three Year Note Quarterly Installments that
would have been paid prior to such date using the adjusted Three Year Note Quarterly Installment after giving effect to the decrease
in principal amount); and (iv) the principal amount of the Two Year Note shall decrease by an amount equal to ten percent (10%)
of the Adjustment Amount (decreasing the Two Year Note Quarterly Installments thereunder as if the Two Year Note had originally
been issued at such principal amount, and requiring Sellers to make a one-time adjustment to pay the difference between the Two
Year Note Quarterly Installments paid prior to such date and the Two Year Note Quarterly Installments that would have been paid
prior to such date using the adjusted Two Year Note Quarterly Installment after giving effect to the decrease in principal amount).
Any payments required to be made by Sellers pursuant to the preceding clauses (iii) and (iv) shall be made at the same time and
in the same manner as any payment required to be made by Sellers pursuant to the preceding clause (i).

 

1.6.        Net
Working Capital.

 

(a)          The
parties agree that, in addition to the Purchase Price set forth herein, Sellers shall be entitled to receive from (or, if negative,
be obligated to pay to) the Company the amount of any Net Working Capital as set forth on the Final Statement and the amount of
any Closing Accounts Receivable, in each case in accordance with and subject to this Section 1.6.

 

(b)          From
and after the Closing, so long as any Closing Accounts Receivable remains outstanding, promptly (but in any event by the end of
the second (2nd) Business Day) after the end of each week, an officer of Buyer on behalf of the Company shall send a
statement (as such statement may be adjusted or modified by written agreement of Seller Representative, the Company and Buyer,
a “Receivables Statement”) to the Seller Representative setting forth the Closing Accounts Receivable
received by the Company for the week then ended. The Seller Representative shall promptly review such Receivables Statement and
promptly notify the Company and Buyer in writing of any objections to such Receivables Statement. Upon the Company receiving written
notice from the Seller Representative of the Seller Representative’s approval of a Receivables Statement, the Company will
promptly (but in any event within two (2) Business Days thereafter) pay the amount of the Closing Accounts Receivable set forth
in such Receivables Statement to Sellers. From and after the Closing, the Company will, and Buyer will cause the Company to, use
its commercially reasonable efforts to collect Closing Accounts Receivable.

 

    	-4-

    	 

    

 

(c)          Within
ten (10) Business Days after the Final Statement Date, if the amount of the Net Working Capital set forth in the Final Statement
is a positive amount, Buyer shall pay to Sellers the amount of Net Working Capital set forth in the Final Statement, or if the
amount of the Net Working Capital set forth in the Final Statement is a negative amount, Sellers shall pay to Buyer the amount
of Net Working Capital set forth in the Final Statement.

 

1.7.        Minimum
Buyer Common Stock Price. Notwithstanding anything to the contrary contained in this Agreement to the contrary, but subject
to Section 7.7 hereof, in the event that the VWAP Price on the Unrestricted Date is less than the Buyer Common Stock Price,
then within thirty (30) days after the Unrestricted Date, Buyer shall pay to each Seller, by wire transfer in immediately available
funds to such account as designated by Sellers in writing, for each Share (other than those issued upon exercise of a Conversion
Right (as respectively defined in the Notes)) owned by such Seller immediately prior to the open of trading on the Principal Market
on the Unrestricted Date an amount equal to (i) the Buyer Common Stock Price less (ii) the VWAP Price.

 

ARTICLE
II

[RESERVED]

 

ARTICLE
III

CLOSING

 

3.1.       Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) will take place simultaneously
with the execution and delivery of this Agreement at the offices of Ellenoff, Grossman & Schole LLP, 1345 Avenue of the Americas,
New York, NY 10105, commencing at 10:00 am (New York City time). By mutual agreement of the parties the Closing may take place
by conference call and facsimile (or other electronic transmission of signature pages) with exchange of original signatures by
overnight mail. The date on which the Closing actually occurs will be referred to as the “Closing Date”.
The parties agree that to the extent permitted by applicable Law and GAAP, the Closing will be deemed effective as of 11:59 p.m.
(New York City time) on the Closing Date, except that for Tax purposes, to the extent permitted by applicable Law, the Closing
will be deemed to have occurred and effective as of 12:01 a.m. (New York City time) on the day immediately after the Closing Date.

 

3.2.       Closing
Deliveries by Sellers. At or prior to the Closing, Sellers will deliver or cause to be delivered to Buyer the following, each
in form and substance reasonably acceptable to Buyer:

 

(a)          powers
duly executed and in a form reasonably acceptable to Buyer necessary to transfer the Purchased Interests to Buyer on the books
and records of the Company;

 

(b)          the
books and records of the Lighthouse Companies;

 

(c)          the
required notices, consents, Permits, waivers, authorizations, orders and other approvals listed in Schedule 3.2(c), and
all such notices, consents, Permits, waivers, authorizations, orders and other approvals will be in full force and effect and not
be subject to the satisfaction of any condition that has not been satisfied or waived;

 

(d)          release
and extinguishment of all (i) Indebtedness of the Lighthouse Companies and (ii) Liens on any of the assets of the Lighthouse Companies,
and documentation evidencing the same;

 

(e)          each
Note, duly executed by Sellers;

 

    	-5-

    	 

    

 

(f)          the
Non-Competition and Non-Solicitation Agreement by and between Buyer and Seller in the form attached as Exhibit C hereto
(the “Non-Competition Agreement”), duly executed by Seller;

 

(g)          the
Employment Agreements by and between each Seller and the Company, in the forms attached as Exhibit D hereto (the “Employment
Agreements”), duly executed by each such Seller and the Company;

 

(h)          a
written opinion of Sellers’ counsel, substantially in the form of Exhibit E hereto, duly executed by Sellers’
counsel;

 

(i)           a
good standing certificate for each Lighthouse Company certified as of a date no later than thirty (30) days prior to the Closing
Date from the proper state official in its jurisdiction of organization and each other jurisdiction in which such Lighthouse Company
is qualified to do business as a foreign entity as of the Closing;

 

(j)           a
certificate from a manager of the Company certifying to (A) copies of the Company’s Governing Documents as in effect as of
the Closing, (B) the resolutions of the Company’s members and managers authorizing the execution, delivery and performance
of this Agreement and each of the Ancillary Documents to which it is a party or by which it is bound, and the consummation of each
of the transactions contemplated hereby and thereby, and (C) the incumbency of the managers and/or officers authorized to execute
this Agreement or any Ancillary Document to which the Company is or is required to be a party or by which the Company is or is
required to be bound;

 

(k)          an
affidavit of non-foreign status of Seller dated as of the Closing Date in form and substance required under Section 1445 of the
Code such that Buyer is exempt from withholding any portion of the Purchase Price that might otherwise be required by Section 1445
of the Code;

 

(l)           the
Estimated Closing Statement in accordance with Section 1.4;

 

(m)         [RESERVED];

 

(n)          suitable
documentation to add additional employees of Buyer or its Affiliates as signatories to the Bank Accounts of the Company set forth
on Schedule 4.25, as prescribed by Buyer;

 

(o)          one
or more CD-ROMs or alternatively portable “thumb drives,” in PC-readable format, that contain readable, working Adobe
or other (i.e., Microsoft Office) portable document format files that set forth all of the documents provided in the Data Site
prior to the Closing; and

 

(p)          evidence
of the termination of each contract or arrangement set forth on Schedule 3.2(p) in each case effective at or prior to the
Closing.

 

3.3.       Closing
Deliveries by Buyer. At or prior to the Closing, Buyer will deliver or cause to be delivered to Sellers the following, each
in form and substance reasonably acceptable to Sellers:

 

(a)          evidence
of the payment of the cash portion of the Purchase Price required by Section 1.3(a) to be paid at the Closing and the payment
of the other amounts required to be paid at the Closing by Section 1.3(d);

 

    	-6-

    	 

    

 

(b)          evidence
reasonably satisfactory to the Seller Representative that with respect to the Shares required by Section 1.3(b) to be delivered
at the Closing: (i) such Shares have been duly issued to Sellers; (ii) Sellers are reflected as the owner of such Shares on the
books and record of Buyer; and (iii) such Shares are fully paid and non-assessable, and free of any liens and encumbrances except
for restrictions provided for herein or under applicable federal and state securities Laws;

 

(c)          each
Note duly executed by Buyer;

 

(d)          the
Non-Competition Agreement duly executed by Buyer;

 

(e)          the
Employment Agreements duly executed by the Company;

 

(f)          a
certificate from Buyer’s secretary certifying to (A) copies of Buyer’s Governing Documents as in effect as of the Closing,
(B) the resolutions of Buyer’s Board of Directors authorizing the execution, delivery and performance of this Agreement and
each of the Ancillary Documents to which it is a party or by which it is bound, and the consummation of each of the transactions
contemplated hereby and thereby, and (C) the incumbency of officers authorized to execute this Agreement or any Ancillary Document
to which Buyer is or is required to be a party or by which the Buyer is or is required to be bound; and

 

(g)          Sellers
shall each have been released from their personal guaranties granted to Santander Bank in connection with the Lighthouse Companies’
credit facility with Santander Bank.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF SELLERS 

 

Except as set forth in
the corresponding Sections or subsections of the Disclosure Schedules (which disclosure in the Disclosure Schedules shall qualify
the identified Sections or subsections hereof to which such disclosure relates and any other Sections or subsections hereof to
the extent that it is reasonably apparent on the face of such disclosure that such disclosure is applicable to such other Sections
or subsections), Sellers jointly and severally represent and warrant to Buyer that the statements contained in this ARTICLE
IV, and the information in the Disclosure Schedules referenced therein, are true and correct as of the Closing Date, except
to the extent that a representation and warranty contained in this ARTICLE IV expressly states that such representation
and warranty is current as of an earlier date and then such statements contained in this ARTICLE IV are true and correct
as of such earlier date:

 

4.1.       Organization
and Qualification. Each Lighthouse Company is a limited liability company duly organized, validly existing and in good standing
under the laws of the jurisdiction in which it was organized and has full power and authority to own the assets owned by it and
conduct its business as and where it is being conducted by it. Each Lighthouse Company is duly licensed or qualified to do business,
and is in good standing as a foreign entity, in all jurisdictions in which its assets or the operation of its business makes such
licensing or qualification necessary, all of which jurisdictions are listed on Schedule 4.1. Each Lighthouse Company has
all requisite power and authority to own, lease or use, as the case may be, its properties and business. During the past five (5)
years, no Lighthouse Company has been known by or used any corporate, fictitious or other name in the conduct of such Lighthouse
Company’s business or in connection with the use or operation of its assets. Schedule 4.1 lists all current managers
and officers of each Lighthouse Company, showing each such Person’s name and positions.

 

    	-7-

    	 

    

 

4.2.       Authorization
and Binding Effect; Corporate Documentation. 

 

(a)          Each
Seller Party has full power and authority to enter into this Agreement and the Ancillary Documents to which it is or is required
to be a party and to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder.
The execution and delivery of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary action on the part of each Seller Party, including requisite manager
and member approval of the Company. Each of this Agreement and each Ancillary Document to which a Seller Party is or is required
to be a party has been duly executed and delivered by each such Seller Party and constitutes a legal, valid and binding obligation
of such Seller Party, enforceable against such Seller Party in accordance with its terms, except as the enforceability thereof
may be limited by the Permitted Exceptions.

 

(b)          The
copies of the Governing Documents of each Lighthouse Company, as amended to date, copies of which have heretofore been delivered
to Buyer, are true, complete and correct copies of the Governing Documents of each Lighthouse Company, as amended through and in
effect on the date hereof. The minute books and records of the proceedings of each Lighthouse Company, copies of which have been
delivered to Buyer, are true, correct and complete in all material respects.

 

4.3.        Title
to the Purchased Interests. Sellers own good, valid and marketable title to the Purchased Interests, free and clear of any
and all Liens, and upon delivery of the Purchased Interests to Buyer on the Closing Date in accordance with this Agreement, and
upon Buyer’s payment of the Purchase Price payable at the Closing in accordance with Section 1.3, the entire legal
and beneficial interest in the Purchased Interests and good, valid and marketable title to the Purchased Interests, free and clear
of all Liens (other than those imposed by applicable securities Laws or those incurred by Buyer), will pass to Buyer.

 

4.4.       Capitalization.
 Prior to giving effect to the transactions contemplated by this Agreement, Sellers are the beneficial and record owner of
all of the issued and outstanding membership interests of the Company, with each Seller owning the membership interests in the
Company set forth on Schedule 4.4. The Purchased Interests to be delivered by Sellers to Buyer constitutes all of the issued
and outstanding equity interests of the Company. All of the issued and outstanding equity interests of the Company (i) have been
duly and validly issued, (ii) are fully paid and nonassessable (to the extent applicable) and (iii) were not issued in violation
of any preemptive rights or rights of first refusal or first offer. There are no issued or outstanding options, warrants or other
rights to subscribe for or purchase any equity interests of the Company or securities convertible into or exchangeable for, or
that otherwise confer on the holder any right to acquire any equity securities of the Company, or preemptive rights or rights of
first refusal or first offer with respect to the equity securities of the Company, nor are there any Contracts, commitments, understandings,
arrangements or restrictions to which a Seller Party is a party or bound relating to any equity securities of the Company, whether
or not outstanding. There are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to
the Company, nor are there any voting trusts, proxies, shareholder agreements or any other agreements or understandings with respect
to the voting of the equity securities of the Company. All of the equity securities of the Company have been granted, offered,
sold and issued in compliance in all material respects with all applicable foreign, state and federal securities Laws.

 

4.5.       Subsidiaries.
The Company does not have, and has never had, any Subsidiaries or ownership, directly or indirectly, of any securities or other
interests in any other Person. The Company is not a party to any agreement relating to the formation of any joint venture, association
or other Person.

 

    	-8-

    	 

    

 

4.6.        Non-Contravention.
Except as set forth on Schedule 4.6, neither the execution, delivery and performance of this Agreement or any Ancillary
Documents by any Seller Party, nor the consummation of the transactions contemplated hereby or thereby, will (a) violate or conflict
with, any provision of the Governing Documents of a Lighthouse Company, (b) violate or conflict with any Law or Order to which
any Lighthouse Company or any Seller, their respective assets or the Purchased Interests are bound or subject, (c) with or without
giving notice or the lapse of time or both, breach or conflict with, constitute or create a default under, or give rise to any
right of termination, cancellation or acceleration of any obligation or result in a loss of a material benefit under, or give rise
to any obligation of any Lighthouse Company or any Seller to make any payment under, or to the increased, additional, accelerated
or guaranteed rights or entitlements of any Person under, any of the terms, conditions or provisions of any Contract, agreement,
or other commitment to which a Seller or any Lighthouse Company is a party or by which a Seller or any Lighthouse Company Party,
their respective assets or the Purchased Interests may be bound, (d) result in the imposition of a Lien (other than a Permitted
Lien) on any Purchased Interests or any assets of any Lighthouse Company or (e) require any filing with, or Permit, consent or
approval of, or the giving of any notice to, any Governmental Authority or other Person.

 

4.7.        Financial
Statements.

 

(a)          Attached
to Schedule 4.7(a) are true and correct copies of (i) the reviewed consolidated balance sheet, income statement, statement
of stockholder’s equity and statement of cash flows for the Lighthouse Companies as of and for the fiscal years ended December
31, 2014 and December 31, 2013, and (ii) the unaudited consolidated balance sheet of the Lighthouse Companies as of May 31, 2015
and the related unaudited income statement and statement of cash flows for the five (5) fiscal month period then ended (such financial
statements described in clauses (i) and (ii), collectively, the “Financial Statements”).

 

(b)          The
Financial Statements were prepared in accordance with the books and records of the Lighthouse Companies, are true, correct and
complete in all material respects, and present fairly and accurately in all material respects the financial condition and results
of operations of the Lighthouse Companies as of the respective dates thereof and for the periods specified therein. Except as set
forth on Schedule 4.7(b), the Financial Statements have been prepared in accordance with GAAP, consistently applied throughout
and among the periods indicated (except that the unaudited statements exclude the footnote disclosures and other presentation items
required for GAAP and exclude year-end adjustments which will not be material in amount). Each Lighthouse Company maintains accurate
books and records reflecting its assets and Liabilities and maintains proper and adequate internal accounting controls that provide
reasonable assurance that (i) such Lighthouse Company does not maintain any off-the-book accounts and that such Lighthouse Company’s
assets are used only in accordance with management directives, (ii) transactions are executed with management’s authorization,
(iii) transactions are recorded as necessary to permit preparation of the financial statements of such Lighthouse Company and to
maintain accountability for its assets, (iv) access to its assets is permitted only in accordance with management’s authorization,
(v) the reporting of its assets is compared with existing assets at regular intervals and verified for actual amounts and (vi)
accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented
to effect the collection of accounts, notes and other receivables on a current and timely basis. All of the financial books and
records of the Lighthouse Companies are complete and accurate in all material respects and have been maintained in the ordinary
course consistent with past practice and in accordance with applicable Laws.

 

4.8.       Absence
of Liabilities. The Lighthouse Companies do not have any Liabilities that would be required to be reflected on a balance sheet
prepared in accordance with GAAP or in the footnotes thereto except (a) Liabilities that are accrued and reflected on the balance
sheet of the Lighthouse Companies as of December 31, 2014, (b) Liabilities that are listed on Schedule 4.8, (c) immaterial
Liabilities that have arisen in the Ordinary Course of Business (other than liabilities for breach of any Contract or violation
of any Law) since December 31, 2014 and (d) obligations to be performed after the date hereof under any Contracts which are
disclosed in the Disclosure Schedules.

 

    	-9-

    	 

    

 

4.9.       Absence
of Certain Changes. Except as set forth on Schedule 4.9, since December 31, 2014: (a) each Lighthouse Company has conducted
its business only in the Ordinary Course of Business, and (b) there has not been any change in or development with respect to any
Lighthouse Company’s business, operations, condition (financial or otherwise), results of operations, prospects, assets or
Liabilities, except for changes and developments which have not had, and are not likely to have to have a Material Adverse Effect.

 

4.10.     Title
to and Sufficiency of Assets. Except as set forth on Schedule 4.10, each Lighthouse Company has good and marketable
title to all of its assets, free and clear of all Liens other than Permitted Liens. The assets (including Contracts) of each Lighthouse
Company constitute all of the assets, rights and properties that are used in the operation of such Lighthouse Company’s business
as it is now conducted and presently proposed to be conducted by Sellers or that are used or held by such Lighthouse Company for
use in the operation of such Lighthouse Company’s business, and taken together, are adequate and sufficient for the operation
of such Lighthouse Company’s business as currently conducted and as presently proposed to be conducted by Sellers. Except
as set forth on Schedule 4.10, immediately following the Closing, all of the assets of each Lighthouse Company will be owned,
leased or available for use by such Lighthouse Company on terms and conditions substantially identical to those under which, immediately
prior to the Closing, such Lighthouse Company owns, leases, uses or holds available for use such assets.

 

4.11.     Personal
Property. All items of Personal Property of each Lighthouse Company with a book value or fair market value of greater than
Ten Thousand Dollars ($10,000) are set forth on Schedule 4.11. All such items of Personal Property are in good operating
condition and repair (reasonable wear and tear excepted consistent with the age of such items), and are suitable for their intended
use in such Lighthouse Company’s business. Schedule 4.11 contains an accurate and complete list and description of
leases in respect of the Personal Property (collectively, the “Personal Property Leases”). The Personal
Property Leases are valid, binding and enforceable in accordance with their terms and are in full force and effect. With respect
to the Personal Property Leases, there are no existing defaults under the applicable lease by a Lighthouse Company or, to the Knowledge
of the Company, any other party thereto, and no event of default on the part of a Lighthouse Company or, to the Knowledge of the
Company, on the part of any other party thereto has occurred which (whether with or without notice, lapse of time or the happening
or occurrence of any other event) would constitute a material default thereunder. Sellers have delivered to Buyer true and correct
copies of the Personal Property Leases (along with any amendments thereto).

 

4.12.     Real
Property. Schedule 4.12 contains a complete and accurate list of all premises leased or subleased or otherwise used
or occupied by any Lighthouse Company (the “Leased Premises”), and of all leases, lease guarantees, agreements
and documents related thereto, including all amendments, terminations and modifications thereof (collectively, the “Leases”),
as well as the current annual rent and term under each Lease. Sellers have provided to Buyer a true and complete copy of each of
the Leases, and in the case of any oral Lease, a written summary of the material terms of such Lease. Subject to the Permitted
Exceptions, the Leases are valid, binding and enforceable in accordance with their terms and are in full force and effect. No event
has occurred which (whether with or without notice, lapse of time or both or the happening or occurrence of any other event) would
constitute a default on the part of a Lighthouse Company under any Lease. To the Knowledge of the Company, no event has occurred
which (whether with or without notice, lapse of time or both or the happening or occurrence of any other event) would constitute
a default by any other party under any Lease, and no Lighthouse Company has received notice of any such condition. No Lighthouse
Company has waived any rights under any Lease which would be in effect at or after the Closing. The Lighthouse Companies are in
quiet possession of the Leased Premises. All leasehold improvements and fixtures located on the Leased Premises are (i) to the
Knowledge of the Company, structurally sound with no material defects, (ii) in good operating condition and repair, subject to
ordinary wear and tear, (iii) not in need of maintenance or repair except for ordinary routine maintenance and repair, (iv) in
conformity in all material respects with all applicable Laws relating thereto currently in effect and (v) are located entirely
on the Leased Premises. No Lighthouse Company has ever owned any real property or any interest in real property (other than the
leasehold interests in the Leases).

 

    	-10-

    	 

    

 

4.13.       Intellectual
Property.

 

(a)          Schedule
4.13(a) sets forth: (i) all U.S. and foreign registrations of Intellectual Property (and applications therefor) owned or licensed
by a Lighthouse Company or otherwise used or held for use by a Lighthouse Company in which a Lighthouse Company is the owner, applicant
or assignee (“Registered IP”), specifying as to each item, as applicable: (A) the nature of the item,
including the title, (B) the owner of the item, (C) the jurisdictions in which the item is issued or registered or in which an
application for issuance or registration has been filed and (D) the issuance, registration or application numbers and dates; (ii)
all material unregistered Intellectual Property owned or purported to be owned by a Lighthouse Company; and (iii) all licenses,
sublicenses and other agreements or permissions (“IP Licenses”) (other than shrink wrap licenses or other
similar licenses for commercial off-the-shelf software with an annual license fee of $2,000 or less (which are not required to
be listed, but are “IP Licenses” as that term is used herein)), under which any Lighthouse Company is a licensee or
otherwise is authorized to use or practice any Intellectual Property, and describes (A) the applicable Intellectual Property licensed,
sublicensed or used and (B) any royalties, license fees or other compensation payable by such Lighthouse Company, if any. Each
Lighthouse Company owns, free and clear of all Liens (other than Permitted Liens), has valid and enforceable rights in, and has
the unrestricted right to use, sell, license, transfer or assign, all Intellectual Property currently used, licensed or held for
use by such Lighthouse Company, and previously used or licensed by such Lighthouse Company, except for the Intellectual Property
that is the subject of the IP Licenses. To the Knowledge of the Company, all Registered IP is valid, in force and in good standing,
and not subject to any challenge of any kind, and owned exclusively by the applicable Lighthouse Company without obligation to
pay royalties, licensing fees or other fees, or otherwise account to any other Person with respect to such Registered IP. No Lighthouse
Company has licensed or sublicensed out any of its owned or licensed Intellectual Property (other than to another Lighthouse Company).

 

(b)          Each
Lighthouse Company has a license to use all Intellectual Property that is the subject of the IP Licenses, which license, to the
Knowledge of the Company, is valid and enforceable. Each Lighthouse Company has performed all obligations imposed on it in the
IP Licenses, has made all payments required to date, and is not, nor, to the Knowledge of the Company, is any other party thereto,
in breach or default thereunder, nor has any event occurred that with notice or lapse of time or both would constitute a default
thereunder. The continued use by a Lighthouse Company of the Intellectual Property that is the subject of the IP Licenses in the
same manner that it is currently being used is not restricted by any applicable license of a Lighthouse Company. No Lighthouse
Company is party to any Contract that requires such Lighthouse Company to assign to any Person all of its rights in any Intellectual
Property developed by a Lighthouse Company under such Contract.

 

    	-11-

    	 

    

 

(c)          No
Action is pending or, to the Knowledge of the Company, threatened that challenges the validity, enforceability, ownership, or right
to use, sell, license or sublicense any Intellectual Property currently licensed, used or held for use by any Lighthouse Company.
No Lighthouse Company has received any written or, to the Knowledge of the Company, oral notice or claim asserting that any infringement,
misappropriation, violation, dilution or unauthorized use of the Intellectual Property of any other Person is or may be occurring
or has or may have occurred, as a consequence of the business activities of any Lighthouse Company, nor to the Knowledge of the
Company is there a reasonable basis therefor. There are no Orders to which any Lighthouse Company is a party or its otherwise bound
that (i) restrict the rights of a Lighthouse Company to use, transfer, license or enforce any Intellectual Property owned by any
Lighthouse Company, (ii) restrict the conduct of the business of any Lighthouse Company in order to accommodate a third person’s
Intellectual Property, or (iii) grant any third person any right with respect to any Intellectual Property owned by any Lighthouse
Company. No Lighthouse Company is currently infringing, misappropriating or violating, and has not in the past infringed, misappropriated
or violated, any Intellectual Property of any other Person. To the Knowledge of the Company, no other Person is infringing upon,
has misappropriated or is otherwise violating any Intellectual Property of any Lighthouse Company. No Person has obtained unauthorized
access to third party information and data in any Lighthouse Company’s possession, nor has there been any other compromise
of the security, confidentiality or integrity of such information or data. Each Lighthouse Company and its Representatives have
complied with all applicable Laws relating to privacy, personal data protection, and the collection, processing and use of personal
information, as well as the privacy policies and guidelines of the Lighthouse Companies.

 

(d)          Each
employee and independent contractor (including consultants) of each Lighthouse Company has assigned to the Lighthouse Company engaging
such Person all Intellectual Property arising from the services performed for such Lighthouse Company by such Person. No current
or former officers, employees or independent contractors of any Lighthouse Company have claimed any ownership interest in any Intellectual
Property owned by any Lighthouse Company. To the Knowledge of the Company, there has been no violation of the any Lighthouse Company’s
policies or practices related to protection of such Lighthouse Company’s Intellectual Property or any confidentiality or
nondisclosure Contract relating to the Intellectual Property owned by any Lighthouse Company. With respect to third party technical
data, computer software and computer software documentation licensed by any Lighthouse Company for delivery to any Governmental
Authority, prime contractor, or higher tier subcontractor under any Government Contract, such Lighthouse Company has entered into
Contracts with the third party licensor(s) for all Intellectual Property necessary to comply with such Lighthouse Company’s
obligations under such Government Contracts with respect to data rights and other related clauses. All technical data, computer
software and computer software documentation (as those terms are defined under the FAR and its supplemental regulations) developed,
delivered, or used by any Lighthouse Company under or in connection with Contracts with Governmental Authorities have been properly
and sufficiently marked and protected by a Lighthouse Company so that no more than the minimum rights or licenses required under
applicable regulations and contract terms, if any, have been provided. All disclosures, elections, and notices required by applicable
regulations and contract terms to protect ownership of inventions developed, conceived or first actually reduced to practice under
Contracts with Governmental Authorities have been made and provided.

 

4.14.      Compliance
with Laws. Each Lighthouse Company is in compliance with, and has complied, in all material respects with all Laws and Orders
applicable to such Lighthouse Company, its assets, employees or business or the Purchased Interests. None of the operation, activity,
conduct and transactions of any Lighthouse Company or the ownership, operation, use or possession of its assets or the employment
of its employees materially conflicts with the rights of any other Person or materially violates, or with or without the giving
of notice or passage of time, or both, will materially violate, conflict with or result in a material default, right to accelerate
or loss of rights under, any terms or provisions of any Lien, Contract or any Law or Order to which any Lighthouse Company is a
party or by which any Lighthouse Company or its assets, business or employees or the Purchased Interests may be bound or affected.
No Lighthouse Company has received any written or, to the Knowledge of the Company, oral notice of any actual or alleged violation
or non-compliance with applicable Laws.

 

    	-12-

    	 

    

 

4.15.      Permits.
Each Lighthouse Company owns or possesses all right, title and interest in all Permits required to own its assets and conduct its
business as now being conducted and as presently proposed to be conducted. All Permits of each Lighthouse Company are listed on
Schedule 4.15 and are valid and in full force and effect, and the Lighthouse Companies are in compliance in all material
respects with the terms and conditions of all Permits. No loss, revocation, cancellation, suspension, termination or expiration
of any Permit is pending or, to the Knowledge of the Company, threatened other than expiration or termination in accordance with
the terms thereof. No Lighthouse Company has received any written or, to the Knowledge of the Company, oral notice from any Governmental
Authority of any actual or alleged violation or non-compliance regarding any such Permit.

 

4.16.      Litigation.
Except as described on Schedule 4.16, there is no (a) Action of any nature pending or, to the Knowledge of the Company,
threatened, nor is there any reasonable basis for any Action to be made, or (b) Order pending now or rendered by a Governmental
Authority in the past seven (7) years, in either case of clauses (a) or (b), by or against any Lighthouse Company, any of their
respective current or former directors, officers or equity holders (provided, that any litigation involving the directors, officers
or equity holders of a Lighthouse Company must be related to such Lighthouse Company’s business or assets or the Purchased
Interests), such Lighthouse Company’s business or assets or the Purchased Interests. The items listed on Schedule 4.16,
(i) are fully covered (subject to deductibles) under the insurance policies of the Lighthouse Companies and (ii) if finally determined
adverse to any Lighthouse Company, will not have, either individually or in the aggregate, a Material Adverse Effect. During the
past five (5) years, no Lighthouse Company’s current or former officers, senior management or directors have been charged
with, indicted for, arrested for, or convicted of any felony or any crime involving fraud.

 

4.17.      Contracts.

 

(a)          Schedule
4.17(a) contains a complete, current and correct list of all of the following types of Contracts to which a Lighthouse Company
is a party, by which any of its properties or assets are bound, or under which a Lighthouse Company otherwise has material obligations,
with each such responsive Contract identified by each corresponding category (i) – (xii) below: (i) any Contract with any
Top Customer or Top Supplier; (ii) any Contract or group of related Contracts which involve expenditures or receipts by a Lighthouse
Company that require payments or yield receipts of more than $50,000 in any twelve (12) month period or more than $100,000 in the
aggregate; (iii) any Contract with any of its officers, directors, employees, consultants or Affiliates (other than at-will employment
arrangements with employees entered into the Ordinary Course of Business), including all non-competition, severance, and indemnification
agreements; (iv) any agreement presently in effect for the license of any Intellectual Property involving the payment by or to
a Lighthouse Company in excess of $50,000 per year; (v) any power of attorney; (vi) any partnership, joint venture, profit-sharing
or similar agreement entered into with any Person; (vii) all Contracts relating to any merger, consolidation or other business
combination with any other Person or the acquisition or disposition of any other entity or its business, equity securities or material
assets or the sale of a Lighthouse Company, its business, equity securities or material assets outside of the Ordinary Course of
Business; (viii) any loan agreement, agreement of indebtedness, credit, note, security agreement, guarantee, mortgage, indenture
or other document relating to Indebtedness, borrowing of money or extension of credit by or to a Lighthouse Company in excess of
$50,000; (ix) any material settlement agreement entered into within three (3) years prior to the date of this Agreement or under
which a Lighthouse Company has outstanding obligations (other than customary obligations of confidentiality); (x) any Contract
granting, licensing, sublicensing or otherwise transferring any Intellectual Property of a Lighthouse Company other than licenses
of a Lighthouse Company’s Intellectual Property included in such Lighthouse Company’s form customer agreements entered
into in the Ordinary Course of Business; (xi) any agreement entered into outside the Ordinary Course of Business and presently
in effect, involving payment to or obligations of in excess of $50,000, not otherwise described in this Section 4.17(a);
and (xii) any other Contract that is material to a Lighthouse Company and outside of the Ordinary Course of Business. All oral
Contracts that are responsible to the categories listed above are identified in the Disclosure Schedules. True and correct copies
of all the Contracts required to be listed in Schedule 4.17(a) (including any amendments, modifications or supplements thereto)
have been provided to Buyer.

 

    	-13-

    	 

    

 

(b)          Except
as set forth on Schedule 4.17(b), no Lighthouse Company is a party to or bound by any Contract containing any covenant (i)
limiting in any respect the right of any Lighthouse Company or its Affiliates to engage in any line of business, to make use of
any of its Intellectual Property or compete with any Person in any line of business or in any geographic region, (ii) imposing
non-solicitation restrictions on any Lighthouse Company or its Affiliates, (iii) granting to the other party any exclusivity or
similar provisions or rights, including any covenant by a Lighthouse Company that includes an organizational conflict of interest
prohibition, restriction, representation, warranty or notice provision or any other restriction on future contracting, (iv) providing
“most favored customers” or other preferential pricing terms for the services of a Lighthouse Company or its Affiliates,
or (v) otherwise limiting or restricting the right of a Lighthouse Company to sell or distribute any Intellectual Property of any
Lighthouse Company or to purchase or otherwise obtain any software or Intellectual Property license.

 

(c)          All
of the Contracts required to be listed in Schedule 4.17(a) or Schedule 4.17(b), are in full force and effect, and
are valid, binding, and enforceable in accordance with their terms, subject to performance by the other party or parties to such
Contract, except as the enforceability thereof may be limited by the Permitted Exceptions. There exists no breach, default or violation
on the part of a Lighthouse Company or, to the Knowledge of the Company, on the part of any other party to any such Contract nor
has a Lighthouse Company received written or, to the Knowledge of the Company, oral notice of any breach, default or violation.
No Lighthouse Company has received notice of an intention by any party to any such Contract that provides for a continuing obligation
by any party thereto on the date hereof to terminate such Contract or amend the terms thereof, other than modifications in the
Ordinary Course of Business that do not adversely affect any Lighthouse Company. No Lighthouse Company has waived any rights under
any such Contract. To the Knowledge of the Company, no event has occurred which either entitles, or would, with notice or lapse
of time or both, entitle any party to any such Contract to declare breach, default or violation under any such Contract or to accelerate,
or which does accelerate, the maturity of any Indebtedness of a Lighthouse Company under any such Contract. Except as set forth
on Schedule 4.17(c), to the Knowledge of the Company, there is no reason to believe that any Contract with a customer of
a Lighthouse Company will not remain in effect after the Closing through the remainder of its term or continue to generate substantially
the same or more revenue after the Closing through the remainder of its term as it currently generates.

 

    	-14-

    	 

    

 

4.18.      Tax
Matters. Except as set forth on Schedule 4.18: (i) each Lighthouse Company has timely filed all Tax Returns required
to have been filed by it; (ii) all such Tax Returns are accurate and complete in all material respects; (iii) each Lighthouse Company
has paid all Taxes owed by it which were due and payable (whether or not shown on any Tax Return); (iv) each Lighthouse Company
has complied in all material respects with all applicable Laws relating to Tax; (v) no Lighthouse Company is currently the beneficiary
of any extension of time within which to file any Tax Return; (vi) there is no current Action against a Lighthouse Company in writing
by a Governmental Authority in a jurisdiction where such Lighthouse Company does not file Tax Returns that such Lighthouse Company
is or may be subject to taxation by that jurisdiction; (vii) there are no pending or ongoing audits of a Lighthouse Company’s
Tax Returns by a Governmental Authority; (viii) no Lighthouse Company has requested or received any ruling from, or signed any
binding agreement with, any Governmental Authority, that would apply to any Tax periods ending after the Closing Date; (ix) there
are no Liens on any of the assets of a Lighthouse Company that arose in connection with any failure (or alleged failure) to pay
any Tax; (x) no unpaid Tax deficiency has been asserted in writing against or with respect to a Lighthouse Company by any Governmental
Authority which Tax remains unpaid; (xi) each Lighthouse Company has collected or withheld all Taxes currently required to be collected
or withheld by it, and all such Taxes have been paid to the appropriate Governmental Authorities or set aside in appropriate accounts
for future payment when due; (xii) no Lighthouse Company has granted or is subject to, any waiver of the period of limitations
for the assessment of Tax for any currently open taxable period; (xiii) no Lighthouse Company nor any of their respective former,
current or future equity holders is required to include in income any amount for an adjustment pursuant to Section 481 of the Code
or the Regulations thereunder; (xiv) no Lighthouse Company is a party to any Tax allocation or sharing agreement; (xv) there is
no Contract or Benefit Plan covering any Person that, individually or collectively, could give rise to the payment of any amount
that would not be deductible by the Lighthouse Companies by reason of Section 280G or Section 162(m) of the Code, and no arrangement
exists pursuant to which a Lighthouse Company or Buyer will be required to “gross up” or otherwise compensate any Person
because of the imposition of any Tax on a payment to such Person; (xvi) no Lighthouse Company has been a beneficiary of or participated
in any “reportable transaction” within the meaning of Regulations Section 1.6011-4(b)(1) that was, is, or to the Knowledge
of the Company will ever be, required to be disclosed under Regulations Section 1.6011-4; (xvii) no Tax Return filed by or on behalf
of a Lighthouse Company has contained a disclosure statement under Section 6662 of the Code (or any similar provision of Law),
and no Tax Return has been filed by or on behalf of a Lighthouse Company with respect to which the preparer of such Tax Return
advised consideration of inclusion of such a disclosure, which disclosure was not made; (xviii) no Lighthouse Company has taken
any action not in accordance with past practice that would have the effect of deferring a measure of Tax from a period (or portion
thereof) ending on or before the Closing Date to a period (or portion thereof) beginning after the Closing Date; (xix) no Lighthouse
Company has a “permanent establishment” in any foreign country, as defined in any applicable Tax treaty or convention
between the United States of America and such foreign country, or has otherwise taken steps or conducted business operations that
have materially exposed, or will materially expose, it to the taxing jurisdiction of a foreign country; (xx) each Lighthouse Company
is materially in compliance with the terms and conditions of any applicable Tax exemptions, Tax agreements or Tax orders of any
Taxing Authority to which it may be subject or which it may have claimed, and the transactions contemplated by this Agreement will
not have any material and adverse effect on such compliance; (xxi) no written power of attorney which is currently in force has
been granted by or with respect to a Lighthouse Company with respect to any matter relating to Taxes; (xxii) no Seller is a “foreign
person” for purposes of Section 1445 of the Code; and (xxiii) the Company has been classified as a subchapter S Corporation
for U.S. federal and, where applicable, state and local income Tax purposes since January 1, 2005.

 

4.19.      Environmental
Matters. To the Knowledge of the Company, each Lighthouse Company has complied in all respects with all applicable Environmental
Laws, and no Lighthouse Company has received notice of any Actions pending or threatened against any Lighthouse Company or is assets
(including the Leased Premises) relating to applicable Environmental Laws, Environmental Permits or Environmental Conditions. No
Lighthouse Company has any environmental audits, environmental assessments, reports, sampling results, correspondence with Governmental
Authorities or other environmental documents relating to a Lighthouse Company’s past or current properties, facilities or
operation. Except for de minimis quantities of Hazardous Materials used, stored, disposed, or present in compliance with Environmental
Laws on or about the Leased Premises, there are no Hazardous Materials that are being stored or are otherwise present on, under
or about the Leased Premises, or, to the Knowledge of the Company, any real property formerly owned, leased or operated by a Lighthouse
Company. No Lighthouse Company has disposed of, or arranged to dispose of, Hazardous Materials at a disposal facility in a manner
or to a location that has resulted or will result in liability to any Lighthouse Company under or relating to Environmental Laws.

 

    	-15-

    	 

    

 

4.20.      Employee
Benefit Plans.

 

(a)          Set
forth on Schedule 4.20(a) is a true and complete list of each Benefit Plan. With respect to each Benefit Plan: (i) such
Benefit Plan has been operated, administered and enforced in accordance with its terms and in compliance with, and such Benefit
Plan complies with, all applicable Laws, including ERISA and the Code (including Section 409A thereof), in all material respects;
(ii) to the Knowledge of the Company, no breach of fiduciary duty has occurred; (iii) no Action is pending, or to the Knowledge
of the Company, threatened (other than routine claims for benefits arising in the ordinary course of administration); (iv) no prohibited
transaction, as defined in Section 406 of ERISA or Section 4975 of the Code, has occurred, excluding transactions effected pursuant
to a statutory or administration exemption; and (v) all contributions and premiums due through the Closing Date have been made
as required under ERISA or the term of such Benefit Plan or have been fully accrued on the Financial Statements. All Benefit Plans
can be terminated at any time as of or after the Closing Date without resulting in any liability to any Lighthouse Company, Buyer
or any of their respective Affiliates for any additional contributions, penalties, premiums, fees, fines, excise taxes or any other
charges or liabilities.

 

(b)          Each
Benefit Plan which is intended to be “qualified” within the meaning of Section 401(a) of the Code (i) has been determined
by the IRS to be so qualified (or is based on a prototype plan which has received a favorable opinion letter) during the period
from its adoption to the date of this Agreement and (ii) its related trust has been determined to be exempt from taxation under
Section 501(a) of the Code or the applicable Lighthouse Company has requested a favorable IRS determination of qualification and/or
exemption within the period permitted by applicable Law. To the Knowledge of the Company, no fact or set of circumstances exists
which could adversely affect the qualified status of such Benefit Plans or the exempt status of such trusts.

 

(c)          With
respect to each Benefit Plan which covers any current or former officer, director, consultant or employee (or beneficiary thereof)
of a Lighthouse Company, Sellers have provided to Buyer accurate and complete copies, if applicable, of: (i) all Benefit Plan texts
and agreements and related trust agreements or annuity contracts (including any amendments, modifications or supplements thereto);
(ii) all employee communications (including all summary plan descriptions and material modifications thereto); (iii) the three
(3) most recent Forms 5500, if applicable, and annual report, including all schedules thereto; (iv) the most recent annual and
periodic accounting of plan assets; (v) the three (3) most recent nondiscrimination testing reports; (vi) the most recent determination
letter received from the IRS; (vii) the most recent actuarial valuation; and (viii) all communications with any Governmental Authority.

 

(d)          No
Benefit Plan is a “defined benefit plan” (as defined in Section 414(j) of the Code), a “multiemployer plan”
(as defined in Section 3(37) or 4001(a)(3) of ERISA) or a “multiple employer plan” (as described in Section 413(c)
of the Code) or is otherwise subject to Title IV of ERISA or Section 412 of the Code, and no Lighthouse Company has incurred any
Liability or otherwise has any outstanding Liability under Title IV of ERISA and, to the Knowledge of the Company, no condition
presently exists that is expected to cause such Liability to be incurred. No Lighthouse Company currently maintains or contributes
to, or has ever maintained or contributed to or in any way directly or indirectly had any Liability (whether contingent or otherwise)
with respect to any “multiemployer plan,” within the meaning of Section 3(37) or 4001(a)(3) of ERISA. No Lighthouse
Company is or has in the past been a member of a “controlled group” for purposes of Section 414(b), (c), (m) or (o)
of the Code, nor does any Lighthouse Company have any Liability with respect to any collectively-bargained for plans, whether or
not subject to the provisions of ERISA. No Lighthouse Company currently maintains or has ever maintained, or is required currently
or has ever been required to contribute to or otherwise participate in, a multiple employer welfare arrangement or voluntary employees’
beneficiary association as defined in Section 501(c)(9) of the Code.

 

    	-16-

    	 

    

 

(e)          With
respect to each Benefit Plan which is a “welfare plan” (as described in Section 3(1) of ERISA): (i) no such plan provides
medical or death benefits with respect to any current or former employee of a Lighthouse Company beyond their termination of employment
(other than coverage mandated by Law, which is paid solely by such employees); and (ii) there are no reserves, assets, surplus
or prepaid premiums under any such plan. Except to the extent required by Section 4980B of the Code or similar state Law, no Lighthouse
Company provides health or welfare benefits to any former or retired employee or is obligated to provide such benefits to any active
employee following such employee’s retirement or other termination of employment or service.

 

(f)          Each
Benefit Plan that is subject to Section 409A of the Code (each, a “Section 409A Plan”) as of the Closing
Date is indicated as such on Schedule 4.20(f). Each Section 409A Plan has been administered in compliance in all material
respects, and is in documentary compliance in all material respects, with the applicable provisions of Section 409A of the Code,
the regulations thereunder and other official guidance issued thereunder. No Lighthouse Company has any obligation to any employee
or other service provider with respect to any Section 409A Plan that may be subject to any Tax under Section 409A of the Code.

 

4.21.      Employees
and Labor Matters.

 

(a)          Schedule
4.21(a) sets forth a complete and accurate list of all Corporate Employees of any Lighthouse Company as of the Closing Date
showing for each as of that date (i) the employee’s name, employer, job title or description, location, salary level (including
any bonus, commission, deferred compensation or other remuneration payable (other than any such arrangements under which payments
are at the discretion of the Lighthouse Companies)), (ii) any bonus, commission or other remuneration other than salary paid during
such Lighthouse Company’s fiscal year ending December 31, 2014 and (iii) any wages, salary, bonus, commission or other compensation
due and owing to each employee for the fiscal year ending December 31, 2015 as of the Closing Date. Except as set forth on Schedule
4.21(a), no employee is a party to a written employment agreement or contract with a Lighthouse Company and each is employed
“at will”. Each Lighthouse Company has paid in full to all Corporate Employees all wages, salaries, commission, bonuses
and other compensation due, including overtime compensation, and there are no severance payments which are or could become payable
by a Lighthouse Company to any Corporate Employees under the terms of any written or, to the Knowledge of the Company, oral agreement,
or commitment or any Law, custom, trade or practice. Each such Corporate Employee has entered into the applicable Lighthouse Company’s
standard form of employee non-disclosure, inventions and restrictive covenants agreement with the employing Lighthouse Company,
true and correct copies of which have been provided to Buyer.

 

(b)          Schedule
4.21(b) contains a list of all independent contractors (including consultants) and Staffing Employees currently engaged by
any Lighthouse Company, along with the position, date of retention and rate of remuneration for each such Person. All of such independent
contractors and Staffing Employees are a party to a written agreement or contract with the engaging Lighthouse Company. Each such
independent contractor and Staffing Employee has entered into customary covenants regarding confidentiality, non-competition and
assignment of inventions and copyrights in such Person’s agreement with the engaging Lighthouse Company, true and correct
copies of which have been provided to Buyer. For the purposes of applicable Law, including the Code, all independent contractors
who are currently, or within the last six (6) years have been, engaged by a Lighthouse Company are bona fide independent contractors
and not employees of such Lighthouse Company. Each independent contractor and Staffing Employee is terminable on fewer than thirty
(30) days’ notice, without any obligation of a Lighthouse Company to pay severance or a termination fee.

 

    	-17-

    	 

    

 

(c)          No
Lighthouse Company is or has been a party to any collective bargaining agreement or other Contract with any group of employees
or any labor organization or other Representative of any of employees of a Lighthouse Company, and to the Knowledge of the Company,
there are and have been no activities or proceedings of any labor union or other party to organize or represent any employees of
any Lighthouse Company. Except as set forth on Schedule 4.21(c): (i) each Lighthouse Company is and has been in compliance
in all material respects with all employment Contracts and all applicable Laws and Orders respecting employment and employment
practices, terms and conditions of employment and wages and hours, including any respecting employment discrimination and occupational
safety and health requirements, and is not and has not been engaged in any unfair labor practice; (ii) there is no labor strike,
dispute, slowdown or stoppage actually pending or, to the Knowledge of the Company, threatened against or directly affecting any
Lighthouse Company; (iii) no Lighthouse Company has experienced any work stoppage or other labor difficulty; (iv) no Lighthouse
Company is delinquent in payments to any of their respective employees for any wages, salaries, commissions, bonuses or other direct
compensation for any services performed by them or amounts required to be reimbursed to such employees; (v) there are no pending
or, to the Knowledge of the Company, threatened unfair or discriminatory employment practice charges pending before the Equal Employment
Opportunity Commission, or any comparable foreign, state or local Governmental Authority; (vi) there are no wrongful discharge
claims nor any other type of Actions brought by or on behalf of any past or present employees of any Lighthouse Company pending
or, to the Knowledge of the Company, threatened against a Lighthouse Company; and (vii) upon termination of the employment of any
employee, no Lighthouse Company nor Buyer will by reason of anything done prior to the Closing be liable to any of said employees
for vacation pay, severance pay, wrongful termination damages or any other payments (other than any applicable obligations of a
Lighthouse Company to pay accrued vacation pay and accrued sick pay to its terminated employees). Each Lighthouse Company has complied
in all material respects with all applicable Laws and Orders relating to the payment and withholding of Taxes and has timely withheld
from employee wages and paid over to the proper Governmental Authorities all amounts required to be so withheld and paid over for
all periods under all such Laws and Orders. No Lighthouse Company has incurred any Liability under the Worker Adjustment and Retraining
Notification Act of 1988, as it may be amended from time to time, or any foreign, state or local plant closing and severance laws
or regulations.

 

4.22.      Insurance.
Schedule 4.22 lists all insurance policies (by policy number, insurer, location of property insured, annual premium, premium
payment dates, expiration date, type (i.e., “claims made” or an “occurrences” policy), amount and scope
of coverage) held by a Lighthouse Company relating to a Lighthouse Company or the business, assets, properties, directors, officers
or employees of a Lighthouse Company, copies of which have been provided to Buyer. To the Knowledge of the Company, each such insurance
policy (i) is legal, valid, binding, enforceable and in full force and effect as of the Closing and (ii) will continue to be legal,
valid, binding, enforceable, and in full force and effect on identical terms immediately following the Closing. No Lighthouse Company
is in default with respect to its obligations under any insurance policy, nor has any Lighthouse Company ever been denied insurance
coverage for any reason. No Lighthouse Company has any self-insurance or co-insurance programs. In the three (3) year period ending
on the date hereof, no Lighthouse Company has received any written or, to the Knowledge of the Company, oral notice from, or on
behalf of, any insurance carrier relating to or involving any adverse change or any change other than in the Ordinary Course of
Business, in the conditions of insurance, any refusal to issue an insurance policy or non-renewal of a policy, or requiring or
suggesting material alteration of any Lighthouse Company’s assets, purchase of additional equipment or material modification
of any Lighthouse Company’s methods of doing business. No Lighthouse Company has made any claim against an insurance policy
as to which the insurer is denying coverage. Schedule 4.22 identifies each individual insurance claim made by a Lighthouse
Company since January 1, 2010. Each Lighthouse Company has reported to its insurers all Actions and pending circumstances that
would reasonably be expected to result in an Action, except where such failure to report such an Action would not be reasonably
likely to be material to any Lighthouse Company. To the Knowledge of the Company, no event has occurred, and no condition or circumstance
exists, that would reasonably be expected to (with or without notice or lapse of time) give rise to or serve as a basis for the
denial of any such insurance claim.

 

    	-18-

    	 

    

 

4.23.      Transactions
with Related Persons. Except as set forth on Schedule 4.23, no Seller nor any of its Affiliates, nor any officer, director,
manager, employee, trustee or beneficiary of a Lighthouse Company or any Affiliate of a Seller, nor any immediate family member
of any of the foregoing (whether directly or indirectly through an Affiliate of such Person) (each of the foregoing, a “Related
Person”) is presently, or in the past three (3) years has been, a party to any transaction with a Lighthouse Company,
including any Contract or other arrangement (a) providing for the furnishing of services by (other than as officers, directors
or employees of such Lighthouse Company), (b) providing for the rental of real or personal property from or (c) otherwise requiring
payments to (other than for services or expenses as directors, officers or employees of such Lighthouse Company in the Ordinary
Course of Business) any Related Person or any Person in which any Related Person has an interest as an owner, officer, manager,
director, trustee or partner or in which any Related Person has any direct or indirect interest. Except as set forth on Schedule
4.23, no Lighthouse Company has any outstanding Contract or other arrangement or commitment with any Related Person, and no
Related Person owns any real or personal property, or right, tangible or intangible (including Intellectual Property) which is
used in a Lighthouse Company’s business. The Lighthouse Companies’ assets do not include any receivable or other obligation
from a Related Person, and the Liabilities of the Lighthouse Companies do not include any payable or other obligation or commitment
to any Related Person.

 

4.24.      Government
Contracts.

 

(a)          No
Lighthouse Company is a party to any Government Contract and no Lighthouse Company has any outstanding Government Bids.

 

(b)          Each
Lighthouse Company has complied in all material respects with all statutory and regulatory requirements where and to the extent
applicable, where and as applicable to each of the Government Contracts and Government Bids. The representations, certifications,
and warranties made by each Lighthouse Company with respect to the Government Contracts or Government Bids were accurate in all
respects as of their effective date, and each Lighthouse Company has complied in all material respects with all such representations,
certifications and warranties. No Government Contract has been terminated for default, breach, cause or other failure to perform,
and no Lighthouse Company has not received any adverse or negative past performance evaluations or ratings within the past three
(3) years. Each Lighthouse Company has complied in all material respects with all terms and conditions of each Government Contract.
No termination for default or convenience notice, cure notice, or show cause notice has been issued by any Governmental Authority,
prime contractor or higher-tier subcontractor to a Lighthouse Company. No Lighthouse Company, nor any of its directors, officers
or employees is, or for the last five (5) years has been, debarred, proposed for debarment, suspended from or otherwise declared
non-responsible or ineligible for participation in the award of contracts with any Governmental Authority. Each Lighthouse Company
possesses all facility and personnel security clearances and Permits necessary for the execution and performance of its obligations
under the Government Contracts.

 

(c)          No
Lighthouse Company, nor any of its directors or officers, nor, to the Knowledge of the Company, any other Representative acting
on behalf of a Lighthouse Company, is currently identified on the specially designated nationals or other blocked person list or
otherwise currently subject to any U.S. sanctions administered by OFAC, and in the last six (6) fiscal years no Lighthouse Company
has, directly or indirectly, used any funds, or loaned, contributed or otherwise made available such funds to any Subsidiary, joint
venture partner or other Person, in connection with any sales or operations in any country sanctioned by OFAC or for the purpose
of financing the activities of any Person currently subject to, or otherwise in violation of, any U.S. sanctions administered by
OFAC. No Lighthouse Company, and no Representative acting on its behalf, has (i) used any funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to political activity, (ii) made any unlawful payment or offered anything of value
to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns, (iii) made any
other unlawful payment, or (iv) violated any applicable money laundering or anti-terrorism law or regulation, nor have any of them
otherwise taken any action which would reasonably cause a Lighthouse Company to be in violation of the Foreign Corrupt Practices
Act of 1977, as amended, or any applicable Law of similar effect.

 

    	-19-

    	 

    

 

4.25.      Bank
Accounts. Schedule 4.25 lists the names and locations of all banks and other financial institutions with which a Lighthouse
Company maintains an account (or at which an account is maintained to which a Lighthouse Company has access as to which deposits
are made on behalf of a Lighthouse Company) (each, a “Bank Account”), in each case listing the type of
Bank Account, the Bank Account number therefor, and the names of all Persons authorized to draw thereupon or have access thereto
and lists the locations of all safe deposit boxes used by a Lighthouse Company. All cash in such Bank Accounts is held on demand
deposit and is not subject to any restriction or limitation as to withdrawal.

 

4.26.      Suppliers
and Customers; Products. Schedule 4.26 lists, by dollar volume paid for each of (i) the fiscal year ended December 31,
2014 and (ii) the period from January 1, 2015 through June 30, 2015, the ten (10) largest suppliers of goods or services (the “Top
Suppliers”) and the ten (10) largest customers of each Lighthouse Company (the “Top Customers”).
Except as set forth on Schedule 4.26, the relationships of each Lighthouse Company with such suppliers and customers are,
to the Knowledge of the Company, good commercial working relationships and (i) no Top Supplier or Top Customer within the last
twelve (12) months has threatened to cancel or otherwise terminate, or, to the Knowledge of the Company, intends to cancel or otherwise
terminate, any relationships of such Person with a Lighthouse Company, (ii) no Top Supplier or Top Customer has during the last
twelve (12) months decreased materially or, to the Knowledge of the Company, (A) threatened to stop, decrease or limit materially,
(B) intends to modify materially its relationships with a Lighthouse Company or (C) intends to stop, decrease or limit materially
its products or services to a Lighthouse Company or its usage or purchase of the products or services of a Lighthouse Company,
(iii) to the Knowledge of the Company, no Top Supplier or Top Customer intends to refuse to pay any amount due to a Lighthouse
Company or seek to exercise any remedy against a Lighthouse Company, (iv) no Lighthouse Company has within the past year been engaged
in any material dispute with any Top Supplier or Top Customer, (v) no Top Customer has indicated that it desires or intends to
effect a change in the Contract that would reduce the profit margin that a Lighthouse Company is expected to achieve in such Contract
or otherwise change the material terms of such Contract or change the type of Contract by which such customer purchases good and/or
services from a Lighthouse Company, and (vi) to the Knowledge of the Company, the acquisition by Buyer of the Purchased Interests
and the consummation of the transactions contemplated by this Agreement and the Ancillary Documents will not affect the relationship
of a Lighthouse Company with any Top Supplier or Top Customer. Each Lighthouse Company provides services and has never sold, licensed
or distributed any product to any Person.

 

4.27.      Investment
Intent. Each Seller is acquiring its portion of the Shares for its own account and not with a view to its distribution within
the meaning of Section 2(11) of the Securities Act, and the rules and regulations issued pursuant thereto. Each Seller is an “accredited
investor” within the meaning of Rule 501 under the Securities Act. Each Seller understands that the Shares have not been
registered under the Securities Act and cannot be sold unless subsequently registered under the Securities Act or an exemption
from such registration is available.

 

4.28.      Disclosure.
No representations or warranties by any Seller Party in this Agreement or any Ancillary Documents contains any untrue statement
of material fact or omits to state, when read in conjunction with all of the information contained in this Agreement (including
the Disclosure Schedules) and the Ancillary Documents, any fact necessary in order to make the statements herein or therein not
materially misleading.

 

    	-20-

    	 

    

 

4.29.      No
Brokers. Except as set forth on Schedule 4.29, no Seller or Lighthouse Company, nor any of their respective Representatives
on their behalf, has employed any broker, finder or investment banker or incurred any liability for any brokerage fees, commissions,
finders’ fees or similar fees in connection with the transactions contemplated by this Agreement.

 

4.30.      No
Other Representations and Warranties. Except for the representations and warranties contained in this Agreement or the Ancillary
Documents, the Seller Parties make no express or implied representations or warranties, and hereby disclaim any other representations
and warranties, whether made orally or in writing, by or on behalf of any Seller Party by any Person.

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF BUYER 

 

Buyer represents and
warrants to Sellers the following matters as of the Closing Date:

 

5.1.        Organization
and Qualification. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State
of Nevada. Buyer is duly qualified or licensed to do business as a foreign corporation and is in good standing in each jurisdiction
where such qualification or license is required, except where the failure to be so qualified or be so licensed would not have a
material adverse effect on the ability of Buyer to consummate the transactions contemplated by, and discharge its obligations under,
this Agreement and the Ancillary Documents to which Buyer is a party (a “Buyer Material Adverse Effect”).

 

5.2.        Authorization.
Buyer has full corporate power and authority to enter into this Agreement and the Ancillary Documents to which it is a party
and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary
Documents to which Buyer is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized
by all necessary corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer. This Agreement
and each Ancillary Document to which Buyer is a party constitutes a legal, valid and binding obligation of Buyer, enforceable against
Buyer in accordance with its terms, except as the enforceability thereof may be limited by the Permitted Exceptions.

 

5.3.        Non-Contravention.
Neither the execution and delivery of this Agreement or any Ancillary Document by Buyer, nor the consummation of the transactions
contemplated hereby or thereby, will violate or conflict with or (with or without notice or the passage of time or both) constitute
a breach or default under (a) any provision of the Governing Documents of Buyer, (b) any Law or Order to which Buyer
or any of its business or assets are bound or subject or (c) any Contract or Permit to which Buyer is a party or by which
Buyer or any of its properties may be bound or affected, other than, in the cases of clauses (a) through (c), such violations and
conflicts which would not reasonably be expected to have a Buyer Material Adverse Effect.

 

5.4.        The
Shares. When issued by Buyer to Sellers in accordance with the terms of this Agreement, assuming the accuracy of the representations
and warranties of Sellers set forth in Section 4.27 hereof, the Shares will be (a) issued free and clear of all Liens except
(i) those imposed by applicable securities Laws, (ii) the rights of the Buyer Indemnified Parties under this Agreement (including
under ARTICLE VII and Section 1.5(d)), (iii) those incurred by Sellers or their Affiliates and (iv) as set forth
in Section 6.7, and (b) validly and duly issued and fully paid and non-assessable.

 

5.5.        No
Brokers. Neither Buyer, nor any Representative of Buyer on its behalf, has employed any broker, finder or investment banker
or incurred any liability for any brokerage fees, commissions, finders’ fees or similar fees in connection with the transactions
contemplated by this Agreement.

 

    	-21-

    	 

    

 

5.6.        Litigation.
There is no Action pending or, to the Knowledge of Buyer, threatened, nor any Order of any Governmental Authority is outstanding,
against or involving Buyer or any of its officers, directors, stockholders, properties, assets or businesses, whether at law or
in equity, before or by any Governmental Authority, which would reasonably be expected to have a Buyer Material Adverse Effect.

 

5.7.        Investment
Intent. Buyer is acquiring the Purchased Interests for its own account and not with a view to its distribution within the meaning
of Section 2(11) of the Securities Act, and the rules and regulations issued pursuant thereto. Buyer is an “accredited investor”
within the meaning of Rule 501 under the Securities Act and was not organized for the specific purpose of acquiring the Purchased
Interests. Buyer understands that the Purchased Interests has not been registered under the Securities Act and cannot be sold unless
subsequently registered under the Securities Act or an exemption from such registration is available.

 

5.8.        Financial
Capacity. As of the Closing Date, Buyer has the financial capacity to perform its obligations under this Agreement and the
Ancillary Documents to which it is a party or bound in accordance with their respective terms.

 

5.9.        Foreign
Corrupt Practices Act. None of Buyer or its Subsidiaries, nor any of its or its Subsidiaries’ respective directors or
officers, nor, to the Knowledge of Buyer, any other Representative acting on behalf of Buyer, has (i) used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to political activity, (ii) made any unlawful payment or
offered anything of value to foreign or domestic government officials or employees or to foreign or domestic political parties
or campaigns, (iii) made any other unlawful payment, or (iv) violated any applicable money laundering or anti-terrorism law or
regulation, nor have any of them otherwise taken any action which would reasonably cause Buyer or its Subsidiary to be in violation
of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable Law of similar effect.

 

5.10.      Solvency.
Immediately after giving effect to the transactions contemplated by this Agreement and the Ancillary Documents, Buyer is Solvent.

 

5.11.      No
Other Representations and Warranties. Except for the representations and warranties contained in this Agreement or the Ancillary
Documents, Buyer make no express or implied representations or warranties, and hereby disclaim any other representations and warranties,
whether made orally or in writing, by or on behalf of Buyer by any Person.

 

ARTICLE
VI

OTHER AGREEMENTS

 

6.1.        Further
Assurances. In the event that at any time after the Closing any further action is reasonably necessary to carry out the purposes
of this Agreement, each of the parties will take such further action (including the execution and delivery of such further instruments
and documents) as the other parties reasonably may request, at the sole cost and expense of the requesting party (unless otherwise
specified herein or unless such requesting party is entitled to indemnification therefor under ARTICLE VII in which case,
the costs and expense will be borne by the parties as set forth in ARTICLE VII). Each Seller acknowledges and agrees that
from and after the Closing, Buyer will be entitled to possession of, and Sellers will provide to Buyer, all documents, books, records
(including Tax records), agreements, corporate minute books and financial data of any sort relating to the Lighthouse Companies.

 

    	-22-

    	 

    

 

6.2.        Confidentiality.
After the Closing, each Seller will, and will cause its Representatives to: (a) treat and hold in strict confidence any Confidential
Information, and will not use for any purpose, nor directly or indirectly disclose, distribute, publish, disseminate or otherwise
make available to any third party any of the Confidential Information without Buyer’s prior written consent; (b) in the event
that a Seller becomes legally compelled to disclose any Confidential Information, to provide Buyer with prompt written notice of
such requirement so that Buyer or Lighthouse Company may seek a protective order or other remedy or Buyer may waive compliance
with this Section 6.2; (c) in the event that such protective order or other remedy is not obtained, or Buyer waives compliance
with this Section 6.2, to furnish only that portion of such Confidential Information which is legally required to be provided
as advised in writing by outside counsel and to exercise their commercially reasonable efforts to obtain assurances that confidential
treatment will be accorded such Confidential Information; and (d) to promptly furnish to Buyer any and all copies (in whatever
form or medium) of all such Confidential Information and to destroy any and all additional copies of such Confidential Information
and any analyses, compilations, studies or other documents prepared, in whole or in part, on the basis thereof; provided, however,
that Confidential Information shall not include any information which, at the time of disclosure by Seller or its Representatives,
is generally available publicly and was not disclosed in breach of this Agreement by a Seller or its Representatives.

 

6.3.        Publicity.
No party hereto shall, and each shall cause their respective Representatives not to, disclose, make or issue, any statement or
announcement concerning this Agreement or the Ancillary Documents or the transactions contemplated hereby or thereby (including
the terms, conditions, status or other facts with respect thereto) to any third parties (other than its Representatives who need
to know such information in connection with carrying out or facilitating the transactions contemplated hereby) without the prior
written consent of the other parties (such consent not to be unreasonably withheld, delayed or conditioned), except (i) in the
case of the Company or the Sellers, as required by applicable Law after conferring with the other parties concerning the timing
and content of such required disclosure, and (ii) in the case of Buyer, as may be required of Buyer or its Affiliates by applicable
Law (including any SEC position) or securities listing or trading requirement.

 

6.4.        Litigation
Support. Following the Closing, in the event that and for so long as any party is actively contesting or defending against
any third party or Governmental Authority Action in connection with any fact, situation, circumstance, status, condition, activity,
practice, plan, occurrence, event, incident, action, failure to act or transaction that existing on or prior to the Closing Date
involving any Lighthouse Company, each of the other parties will (i) reasonably cooperate with the contesting or defending party
and its counsel in the contest or defense, (ii) make available its personnel at reasonable times and upon reasonable notice and
(iii) provide (A) such testimony and (B) access to its non-privileged books and records as may be reasonably requested in connection
with the contest or defense, at the sole cost and expense of the contesting or defending party (unless such contesting or defending
party is entitled to indemnification therefor under ARTICLE VII in which case, the costs and expense will be borne by the
parties as set forth in ARTICLE VII).

 

6.5.        Agreement
Regarding Intellectual Property. Each Seller has already disclosed or will disclose to each Lighthouse Company as of the Closing
any and all Intellectual Property developed by such Seller on behalf of such Lighthouse Company or relating to the business of
such Lighthouse Company, including Intellectual Property used in such Lighthouse Company’s business, and Intellectual Property
intended for future use in such Lighthouse Company’s business, and each does hereby assign to such Lighthouse Company any
and all right, title and interest that such Seller may have in and to such Intellectual Property. Each Seller represents that it
has not made any assignment of, or granted any rights in any such Intellectual Property to any Person other than the applicable
Lighthouse Company, and has not disclosed such Intellectual Property to any third party. Upon Buyer’s or the applicable Lighthouse
Company’s request at any time, including any time after the Closing, such Seller will execute and deliver to Buyer or the
applicable Lighthouse Company such other documents as Buyer or such Lighthouse Company deems necessary or desirable to vest in
such Lighthouse Company the sole ownership of and exclusive worldwide rights in and to, all of such Intellectual Property. Each
Seller will deliver to the applicable Lighthouse Company all copies or embodiments of such Intellectual Property in any media in
such Seller’s possession at or prior to the Closing.

 

    	-23-

    	 

    

 

6.6.        Release
and Covenant Not to Sue. Effective as of the Closing, each Seller hereby releases and discharges each Lighthouse Company from
and against any and all Actions, obligations, agreements, debts and Liabilities whatsoever, whether known or unknown, both at law
and in equity, which such Seller now has, has ever had or may hereafter have against such Lighthouse Company arising on or prior
to the Closing Date or on account of or arising out of any matter occurring on or prior to the Closing Date, including any rights
to indemnification or reimbursement from such Lighthouse Company, whether pursuant to its Governing Documents, Contract or otherwise,
and whether or not relating to claims pending on, or asserted after, the Closing Date. From and after the Closing, each Seller
hereby irrevocably covenants to refrain from, directly or indirectly, asserting any Action, or commencing or causing to be commenced,
any Action of any kind against a Lighthouse Company or its Affiliates, based upon any matter purported to be released hereby. Notwithstanding
anything herein to the contrary, the releases and restrictions set forth herein shall not apply to any claims a Seller may have
against any party pursuant to the terms and conditions of this Agreement or any Ancillary Document.

 

6.7.        Lock-Up.
Except as expressly contemplated by Sections 1.5(d) and 7.7, each Seller hereby agrees not to,
without the prior written consent of Buyer, during the period commencing from the Closing and ending on the earlier of (x) the
one (1) year anniversary of the Closing and (y) the consummation of a liquidation, merger, share exchange or other similar transaction
following the Closing that results in all of Buyer’s shareholders having the right to exchange their equity holdings in Buyer
for cash, securities or other property (the first trading day immediately after such period, the “Unrestricted Date”):
(i) lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly
or indirectly, any Shares; (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of the Shares; or (iii) publicly disclose the intention to do any of the foregoing; whether
any such transaction described in clauses (i), (ii) or (iii) above is to be settled by delivery of the Shares or other securities,
in cash or otherwise (any of the foregoing described in clauses (i), (ii), or (iii), a “Prohibited Transfer”).
Each Seller further agrees to execute such agreements as may be reasonably requested by Buyer, in form and substance reasonably
satisfactory to such Seller, that are consistent with the foregoing or that are necessary to give further effect thereto. If any
Prohibited Transfer is made or attempted contrary to the provisions of this Section 6.7, such purported Prohibited Transfer
shall be null and void ab initio, and Buyer shall refuse to recognize any such purported transferee of the Shares as one of its
equity holders for any purpose. In order to enforce this Section 6.7, Buyer may impose stop-transfer instructions with respect
to the Shares until the end of the restriction period described in the first sentence of this Section 6.7. The foregoing
restrictions set forth in this Section 6.7 shall not apply to any of the following transfers (each, a “Permitted
Transfer”): (a) transfers or other dispositions of Shares by a Seller to the other Seller; or (b) transfers or other
dispositions of Shares by a Seller to an immediate family member of such Seller (other than the other Seller) or to any trust for
the direct or indirect benefit of such Seller or any of such Seller’s immediate family members, and any dispositions by will,
other testamentary document or intestate succession to the legal representative, heir, beneficiary, or legatee of such Seller,
provided that, (x) except upon the death or permanent incapacity of both Sellers, the transferring Seller or the other Seller continue
to control the voting of any such Shares and (y) any such transferee agrees in writing with Buyer to be bound by the provisions
of this Section 6.7 with respect to such Shares.

 

    	-24-

    	 

    

 

6.8.        Piggy-Back
Registration Rights.

 

(a)          If
Buyer proposes to file a registration statement under the Securities Act with respect to an offering of Buyer Common Stock or other
Buyer equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, Buyer equity
securities, by Buyer for its own account and/or for security holders of Buyer for their account, other than a registration statement
(i) filed solely in connection with an offering of securities to directors, employees or independent contractors of Buyer pursuant
to any stock incentive or other benefit plan, (ii) filed on Form S-4 or S-8 or any successor to such forms, (iii) for an exchange
offer or offering of securities solely to Buyer’s existing security holders, (iv) for a dividend reinvestment plan, or (v)
solely in connection with a merger, share capital exchange, asset acquisition, share purchase, reorganization, amalgamation, subsequent
liquidation, or other similar business transaction that results in all of Buyer’s shareholders, including Sellers, having
the right to exchange their common stock for cash, securities or other property of a non-capital raising bona fide business transaction,
then Buyer shall (x) give written notice of such proposed filing to Sellers as soon as practicable but in no event less than ten
(10) days before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such
offering, the intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of
the offering, and (y) offer to each Seller in such notice the opportunity to register the sale of such number of the Shares as
such Seller may request in writing within ten (10) days following receipt by such Seller of such notice (a “Piggy-Back
Registration”). Buyer shall include in such registration statement such Shares that a Seller requests in writing
within ten (10) days after the receipt by such Seller of any such notice to be included therein. If at any time after giving written
notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection
with such registration, Buyer shall determine for any reason not to register or to delay registration of such securities, Buyer
may, at its election, give written notice of such determination to the Sellers, and (x) in the case of a determination not to register,
shall be relieved of its obligation to register any of Shares of Sellers in connection with such registration, and (y) in the case
of a determination to delay registering, shall be permitted to delay registering any of Shares of Sellers for the same period as
the delay in registering such other securities. If the offering pursuant to a Piggy-Back Registration is to be an underwritten
offering, then a Seller must permit the sale or other disposition of such Seller’s Shares in accordance with the intended
method(s) of distribution thereof, and shall enter into an underwriting agreement in customary form with the underwriter or underwriters
selected for such Piggy-Back Registration and such Seller shall be responsible for any fees or commissions due to such underwriters
in connection with the sale of such Seller’s Shares (“Selling Expenses”). If (x) the managing underwriter
or underwriters for a Piggy-Back Registration that is to be an underwritten offering advises Buyer in writing that the dollar amount
or number of securities which Buyer on behalf of itself and/or its security holders desires to sell exceeds the maximum dollar
amount or maximum number of securities that can be sold in such offering without adversely affecting the proposed offering price,
timing, distribution method or probability of success of such offering or (y) the SEC determines that the dollar amount or number
of securities to be registered under the registration statement exceeds the maximum dollar amount or number that may be registered
under such registration statement in accordance with applicable Law (including any SEC rules, regulations, policies or positions)
(such maximum dollar amount or maximum number of securities, as applicable, in either of clauses (x) or (y) above, the “Maximum
Number of Securities”), then Buyer shall include in any such offering only the Maximum Number of Securities allocated
as follows: (A) first, the securities that Buyer desires to sell; (B) then, the number of securities required to be included in
such offering, if any, by other security holders of Buyer exercising any demand registration rights that such Persons have pursuant
to written contractual arrangements with Buyer; and (C) finally, the securities of Persons exercising piggy-back registration rights
pursuant to written contractual arrangements with Buyer, including a Seller pursuant to this Section 6.8, pro-rata among
all such security holders exercising piggy-back registration rights. A Seller may elect to withdraw such Seller’s request
for inclusion of such Seller’s Shares in any Piggy-Back Registration by giving written notice to Buyer of such request to
withdraw prior to the effectiveness of the registration statement. Buyer, whether based on its own determination or as the result
of a withdrawal by Persons making a demand pursuant to written contractual obligations, may withdraw a registration statement at
any time prior to the effectiveness of the registration statement. All expenses other than Selling Expenses incurred in connection
with registrations, filings or qualifications in any registration under this Section 6.8, including all registration, filing,
and qualification fees, printers’ and accounting fees and fees and disbursements of counsel for Buyer shall be borne and
paid by Buyer.

 

    	-25-

    	 

    

 

(b)          Each
Seller’s right to request inclusion of any of its Shares in any registration pursuant this Section 6.8 shall terminate
with respect to such Shares upon the earliest to occur of: (i) such time as when such Shares can be sold under Rule 144 promulgated
under the Securities Act or another similar exemption under the Securities Act; and (ii) after such time as such Shares have been
registered under an effective registration statement. Further, Buyer has the right to exclude any Shares of a Seller from any registration
statement to the extent that Buyer is contractually obligated to exclude such securities. In the event that the registration statement
covers securities being sold by Buyer on its own behalf, Buyer or the underwriter shall have a right to require each Seller to
agree to a lock-up period of up to six (6) months from the date of effectiveness of the registration statement as a condition to
registering such Seller’s Shares.

 

(c)          In
connection with any registration statement for which a Seller has elected to exercise its Piggy-Back Registration rights pursuant
to this Section 6.8, such Seller agrees to (i) cooperate with Buyer in connection with the preparation of such registration
statement as it pertains to such Seller or such Seller’s Shares, (ii) respond within three (3) Business Days to any written
request by Buyer to provide or verify information regarding such Seller or the Shares being registered on behalf of such Seller
(including the proposed manner of sale) that may be required to be included in such registration statement and related prospectus
pursuant to the rules and regulations of the SEC, and (iii) provide in a timely manner information regarding the proposed distribution
by such Seller of the Shares for which such Seller has exercised its Piggy-Back Registration rights and such other information
as may be requested by Buyer from time to time in connection with the preparation of and for inclusion in such registration statement
and related prospectus.

 

(d)          So
long as at the time of the filing of such registration statement a Seller is not an executive officer or director of Buyer, if
any Shares of such Seller are included a registration statement:

 

(i)          To
the extent permitted by applicable Law, Buyer will indemnify and hold harmless such Seller from and against any and all loss, damage,
claim or liability (joint or several) to which such Seller may become subject under the Securities Act, the Exchange Act, or other
federal or state securities law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out
of or is based upon: (A) any untrue statement of a material fact contained in such registration statement; (B) any omission to
state in such registration statement a material fact required to be stated therein, or necessary to make the statements therein
not misleading; or (C) any violation by Buyer (or any of its Representatives) of the Securities Act, the Exchange Act, any state
securities Law (collectively, “Registration Damages”); and Buyer will pay to such Seller any legal or
other expenses reasonably incurred by such Seller in connection with investigating or defending any claim or proceeding from which
Registration Damages may result; provided, however, that the foregoing indemnity shall not apply to the extent that
any such Registration Damages arise out of, result from or are based upon information provided by such Seller in such registration
statement or actions or omissions made by Buyer or its Representatives in reliance upon and in conformity with information furnished
by or on behalf of such Seller for use in connection with such registration statement; provided, further, that Buyer
shall not be responsible to indemnify for any amounts paid in settlement of any claim or proceeding if such settlement is effected
without the consent of Buyer, which consent shall not be unreasonably withheld, delayed or conditioned.

 

    	-26-

    	 

    

 

(ii)         To
the extent permitted by applicable Law, such Seller will indemnify and hold harmless Buyer, its Representatives (including any
underwriter under the Securities Act), any other security holder of Buyer selling securities in such registration statement and
any controlling person (as defined in the Securities Act) of any such Persons from and against any and all Registration Damages,
in each case only to the extent that such Registration Damages arise out of, result from or are based upon information provided
by such Seller in such registration statement or actions or omissions made by Buyer or its Representatives in reliance upon and
in conformity with information furnished by or on behalf of such Seller for use in connection with such registration statement;
and such Seller will pay to Buyer and each other aforementioned indemnified Person any legal or other expenses reasonably incurred
thereby in connection with investigating or defending any claim or proceeding from which Registration Damages may result, as such
expenses are incurred; provided, that, except in the case of Fraud Claims or willful misconduct by such Seller, such Seller
shall not be responsible to indemnify for any amounts paid in settlement of any claim or proceeding if such settlement is effected
without the consent of such Seller, which consent shall not be unreasonably withheld, delayed or conditioned; provided,
further, that, except in the case of Fraud Claims or willful misconduct, in no event shall any indemnification obligation
of a Seller under this Section 6.8(d)(ii) exceed the net proceeds from the offering and sale of Shares actually received
by such Seller.

 

(iii)        The
indemnification procedures set forth in Section 7.4 shall apply to any indemnification claim under this Section 6.8
(with any reference in Section 7.4 referring to any provision of ARTICLE VII referring to this Section 6.8
instead).

 

(e)          Buyer
covenants that so long as Sellers continue to own any Shares, it will at no expense to Sellers (i) make and keep public information
regarding Buyer available as those terms are defined in Rule 144, (ii) file in a timely manner any reports and documents required
to be filed by it under the Exchange Act, (iii) furnish to Sellers forthwith upon request (A) a written statement by Buyer as to
its compliance with the reporting requirements of Rule 144 and the Exchange Act, and (B) a copy of the most recent annual or quarterly
report of Buyer and such other reports and documents so filed under the Exchange Act by the Buyer, and (iv) take such further action
as a Seller may reasonable request, all to the extent required from time to time to enable Sellers to sell the Shares without registration
under the Securities Act within the limitation of the exemptions provided by Rule 144; provided, that Buyer shall not be
in violation of this Section 6.8(e) if the exemptions provided by Rule 144 are not available to Sellers at any given time
because Buyer has filed an extension as permitted by the SEC and applicable securities Laws for any of its reports required to
be filed under the Exchange Act, so long as it files such reports within any extended period permitted by the SEC and applicable
securities Laws. For purposes hereof, “Rule 144” means Rule 144 promulgated under the Securities Act,
as amended from time to time, or any similar successor rule thereto that may be promulgated by the SEC.

 

6.9.        Tax
Matters.

 

(a)          The
Seller Representative will prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Lighthouse Company
for all periods ending on or prior to the Closing Date which are required to be filed after the Closing Date. Any Tax Returns filed
pursuant to this Section 6.9(a) must be consistent with the prior Tax Returns of the Lighthouse Companies unless otherwise
required by applicable Laws. No later than twenty (20) days prior to filing, the Seller Representative will deliver to Buyer all
such Tax Returns and any related work papers and will permit Buyer to review and comment on each such Tax Return and will make
such revisions to such Tax Returns as are reasonably requested by Buyer. Sellers, jointly and severally, will timely pay to the
appropriate Taxing Authority any Taxes of the Lighthouse Companies with respect to such periods to the extent such Taxes were not
included as a liability in the calculation of Net Working Capital included in the Final Statement.

 

    	-27-

    	 

    

 

(b)          To
the extent that any Tax Returns of the Lighthouse Companies relate to any Tax periods which begin on or before the Closing Date
and end after the Closing Date, Buyer will prepare or cause to be prepared in a manner consistent with the prior Tax Returns of
the Lighthouse Companies unless otherwise required by applicable Laws and file or cause to be filed any such Tax Returns. Buyer
will permit the Seller Representative to review and comment on each such Tax Return described in the preceding sentence at least
twenty (20) days prior to filing such Tax Returns and will make such revisions to such Tax Returns as are reasonably requested
by the Seller Representative unless otherwise required by applicable Law.

 

(c)          For
purposes of this Agreement, in the case of any Taxes that are imposed on a periodic basis and are payable for a taxable period
that includes but does not end on the Closing Date, the portion of such Tax which relates to the portion of such taxable period
ending on the Closing Date will (i) in the case of any Taxes other than Taxes based upon or related to income or receipts, be deemed
to be the amount of such Tax for the entire taxable period multiplied by a fraction (A) the numerator of which is the number of
days in the taxable period ending on the Closing Date and (B) the denominator of which is the number of days in the entire taxable
period, and (ii) in the case of any Tax based upon or related to income or receipts be deemed equal to the amount which would be
payable if the relevant taxable period ended on the Closing Date. Any credits relating to a taxable period that begins before and
ends after the Closing Date will be taken into account as though the relevant taxable period ended on the Closing Date. All determinations
necessary to give effect to the foregoing allocations will be made in a manner consistent with GAAP and the prior practice of the
applicable Lighthouse Company unless otherwise required by applicable Law.

 

(d)          All
Tax sharing agreements or similar agreements with respect to or involving any Lighthouse Company and any Person other than another
Lighthouse Company will be terminated as of the Closing Date and, after the Closing Date, no Lighthouse Company will be bound thereby
or have any Liability thereunder.

 

(e)          All
Taxes imposed in connection with the transfer of the Purchased Interests (“Transfer Taxes”), whether
such Taxes are assessed initially against Buyer, any Seller Party or any of their respective Affiliates, shall be borne and paid
equally by Sellers, on the one hand, and Buyer, on the other hand.

 

6.10.      Security
Clearance. Within thirty (30) days after the Closing, Buyer and the Company shall take any and all necessary action to prepare,
complete and file any and all applications with the U.S. Government needed to be filed and submitted in order for the Company to
maintain its current Secret Facility Security Clearance, and Sellers will cooperate with and assist Buyer and the Company in such
efforts. Buyer and the Company shall provide to the Seller Representative copies of all applications and submissions made pursuant
to the requirements of this Section 6.10, to be held by Sellers subject to the requirements of Section 6.2. Failure
to submit or file such applications in such thirty (30) day period in accordance with this Section 6.10 shall be a material
breach of this Agreement and shall automatically be deemed to be a Lighthouse Change of Control Transaction for purposes of each
Note; provided, that, for the avoidance of doubt, the parties acknowledge that if the U.S. Government does not permit the
maintenance of the Company’s current Secret Facility Security Clearance despite such timely submissions and filings and Buyer’s
commercially reasonable efforts to resolve any issues raised by and satisfy any reasonable conditions imposed by the U.S. Government
in connection with such submissions and filings (which reasonable conditions shall not include the resignation or removal of any
director or officer of Buyer or its Subsidiaries unless otherwise agreed by Buyer), it will not be a violation of this Section
6.10 or deemed a Lighthouse Change of Control Transaction.

 

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6.11.      Future
Operations.

 

(a)          Subject
to Section 6.11(b), after the Closing and until the later of (x) the Maturity Date (as defined in the Three Year Note),
as it may be extended pursuant to Section 1 of the Three Year Note, and (y) the Maturity Date (as defined in the Two Year Note),
as it may be extended pursuant to Section 1 of the Two Year Note, except as otherwise consented to by Sellers in writing: (i) Buyer
and its Affiliates (other than the Company) and the Company’s board of managers (excluding, to the extent applicable, Sellers),
if any, shall not cause the Company not to be, or prevent the Company from being, operated in the ordinary course of business utilizing
at the minimum its historic levels of staffing, employee compensation, assets and capitalization based on its past practices and
operations, (ii) Buyer and its Affiliates (other than the Company) and the Company’s board of managers (excluding, to the
extent applicable, Sellers), if any, shall not cause the Company to terminate the employment of any employee of the Company (excluding
Sellers) other than for cause or change their compensation and benefits such that their compensation and benefits in the aggregate
would be worse to such employee than their current compensation and benefits in the aggregate (for the avoidance of doubt, this
Section 6.11 shall not be deemed to guaranty employment to any employee of the Company at any time after the Closing, change
their employment from being “at-will”, or otherwise restrict Buyer or the Company as jointly agreed by them from changing
the compensation or benefits provided to Company employees after the Closing), (iii) Buyer and its Affiliates (other than the Company)
shall not, and the Company’s board of managers (excluding, to the extent applicable, Sellers), if any, shall not cause the
Company to, transfer, move, hire, exchange, lease, loan, engage, or otherwise utilize or take employees of the Company from the
Company to the Buyer or of its Affiliates (other than the Lighthouse Companies) or vice versa, and (iv) the Buyer and its Affiliates
(other than the Company) shall not solicit, recruit, engage, or entice any employees of the Company to leave their employment with
the Company. A material breach of this Section 6.11(a) shall automatically be deemed to be a Lighthouse Change of Control
Transaction for purposes of the Notes and this Agreement.

 

(b)          Notwithstanding
the provisions of Section 6.11(a), in the event that the TFQ Gross Profit (as defined in the Three Year Note) is less than
85% of the Target Gross Profit (as defined in the Three Year Note) for each fiscal quarter of the Company during any period comprising
of three (3) consecutive fiscal quarters of the Company, then upon the written election of Buyer the provisions of Section 6.11(a)
shall be deemed waived by the parties for all periods from the date of such election forward.

 

ARTICLE
VII

INDEMNIFICATION

 

7.1.        Survival.
All representations and warranties of Sellers and Buyer contained in this Agreement (including all schedules and exhibits hereto
and all certificates, documents, instruments and undertakings furnished pursuant to this Agreement) shall survive the Closing through
and until the eighteen (18) month anniversary of the Closing Date; provided, however, that (i) the representations
and warranties contained in Sections 4.1 (Organization and Qualification), 4.2(a) (Authorization and Binding Effect),
4.5 (Subsidiaries), 4.18 (Tax Matters), 4.20 (Employee Benefits Plans), 4.29 (No Brokers), 5.1
(Organization and Qualification), 5.2 (Authorization), 5.4 (The Shares) and 5.5 (No Brokers) shall survive
until sixty (60) days after the expiration of the applicable statute of limitations, and (ii) the representations and warranties
contained in Sections 4.3 (Title to the Purchased Interests) and 4.4 (Capitalization) will survive indefinitely.
For purposes of this Agreement, the “Survival Date” with respect to any representation or warranty shall
mean the date when such representation or warranty shall survive in accordance with this Section 7.1. If written notice
of a claim for breach of any representation or warranty has been given on or before the applicable Survival Date for such representation
or warranty, then the relevant representations and warranties shall survive as to such claim, until the claim has been finally
resolved. All covenants, obligations and agreements of the parties contained in this Agreement (including all schedules and exhibits
hereto and all certificates, documents, instruments and undertakings furnished pursuant to this Agreement), including any indemnification
obligations, shall survive the Closing and continue until fully performed in accordance with their terms. For the avoidance of
doubt, a claim for indemnification under any subsection of Section 7.2 other than clauses (a) or (b) thereof may be made
at any time.

 

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7.2.        Indemnification
by Sellers. Except as otherwise limited by this ARTICLE VII, Sellers shall jointly and severally indemnify, defend and
hold harmless Buyer and its Representatives and any assignee or successor thereof (collectively, the “Buyer Indemnified
Parties”) from and against, and pay or reimburse the Buyer Indemnified Parties for, any and all losses, Actions,
Orders, Liabilities, damages (including consequential damages), diminution in value, Taxes, interest, penalties, Liens, amounts
paid in settlement, costs and expenses (including reasonable expenses of investigation and court costs and reasonable attorneys’
fees and expenses), (any of the foregoing, a “Loss”) suffered or incurred by, or imposed upon, any Buyer
Indemnified Party arising in whole or in part out of or resulting directly or indirectly from: (a) any inaccuracy in or breach
of any representation or warranty made by a Seller Party in this Agreement (including all schedules and exhibits hereto) or any
Ancillary Document; (b) any non-fulfillment or breach of any unwaived covenant, obligation or agreement made by or on behalf of
a Seller or, at or prior to the Closing, the Company contained in this Agreement (including all schedules and exhibits hereto)
or any Ancillary Document; (c) any underestimation of the Transaction Expenses, the Transaction Bonuses or the amount of Indebtedness
set forth in the Estimated Closing Statement; (d) any and all Liabilities for (i) Taxes in connection with or arising out of any
Lighthouse Company’s assets, employees (including pursuant to Section 409A of the Code), securities, activities or business
on or prior to the Closing Date (determined with respect to taxable periods that begin before and end after the Closing Date in
accordance with the allocation provisions of Section 6.9(c)) in excess of the amount of Taxes reflected as a current liability
in the computation of the Net Working Capital in the Final Statement or (ii) fifty percent (50%) of any Transfer Taxes; (e) any
Action by Person(s) who were holders of equity securities of the Company, including stock options, warrants, convertible debt or
other convertible securities or other rights to acquire equity securities of the Company, prior to the Closing arising out of the
sale, purchase, termination, cancellation, expiration, redemption or conversion of any such securities; or (f) any rate or other
adjustments, including any cost disallowances, which result in a Loss to any Lighthouse Company (in excess of any reserves on the
Final Audited Statements) with respect to any audits of the Government Contracts conducted by the government related to (i) any
period ending on or before the Closing Date and (ii) any periods beginning before but ending after the Closing Date to the extent
any adjustments relate to the portion of such period on or prior to the Closing Date; provided, that Buyer will not be required
to wait until all such Government Contract audits have been completed to pursue indemnification claims against Seller for Losses
resulting from any breach of the representations and warranties in Section 4.24.

 

7.3.        Indemnification
by Buyer. Except as otherwise limited by this ARTICLE VII, Buyer shall indemnify, defend and hold harmless each Seller
and its Representatives and any assignee or successor thereof (collectively, the “Seller Indemnified Parties”)
from and against, and pay or reimburse the Seller Indemnified Parties for, any and all Losses, suffered or incurred by, or imposed
upon, any Seller Indemnified Party arising in whole or in part out of or resulting directly or indirectly from: (a) any inaccuracy
in or breach of any representation or warranty made by Buyer in this Agreement (including all schedules and exhibits hereto) or
any Ancillary Document; (b) any non-fulfillment or breach of any unwaived covenant, obligation or agreement made by or on behalf
of Buyer or, after the Closing, the Company contained in this Agreement (including all schedules and exhibits hereto) or any Ancillary
Document; or (c) any and all Liabilities for fifty percent (50%) of any Transfer Taxes.

 

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7.4.        Indemnification
Procedures.

 

(a)          For
the purposes of this Agreement, (i) the term “Indemnitee” shall refer to the Person or Persons indemnified,
or entitled, or claiming to be entitled, to be indemnified, pursuant to the provisions of Section 7.2 or 7.3,
as the case may be, and (ii) the term “Indemnitor” shall refer to the Person having the actual or alleged
obligation to indemnify pursuant to such provisions. Notwithstanding anything to the contrary contained in this Agreement, the
Seller Representative will have the sole and exclusive right to act on behalf of the Seller Indemnified Parties with respect to
any indemnification claims made pursuant to this ARTICLE VII, including bringing and settling any claims hereunder and receiving
any notices on behalf of the Seller Indemnified Parties.

 

(b)          In
the case of any claim for indemnification under this Agreement arising from a claim of a third party (including any Governmental
Authority), an Indemnitee must give prompt written notice and, subject to the following sentence, in no case later than thirty
(30) days after the Indemnitee’s receipt of notice of such claim, to the Indemnitor of any claim of which such Indemnitee
has knowledge and as to which it may request indemnification hereunder. The failure to give such notice will not, however, relieve
an Indemnitor of its indemnification obligations except to the extent that the Indemnitor is actually harmed thereby. The Indemnitor
will have the right to defend and to direct the defense against any such claim in its name and at its expense, and with counsel
selected by the Indemnitor unless: (i) the Indemnitor fails to acknowledge fully its obligations to the Indemnitee within fifteen
(15) days after receiving notice of such third party claim or contests, in whole or in part, its indemnification obligations therefor;
(ii) if the Indemnitee is a Buyer Indemnified Party, the applicable third party claimant is a Governmental Authority or a then-current
customer of Buyer, any Lighthouse Company or any of their respective Affiliates; (iii) if the Indemnitee is a Buyer Indemnified
Party, an adverse judgment with respect to the claim will establish a precedent materially adverse to the continuing business interests
of Buyer, any Lighthouse Company or their respective Affiliates; (iv) there is a conflict of interest between the Indemnitee and
the Indemnitor in the conduct of such defense; (v) the applicable third party alleges claims of fraud, willful misconduct or intentional
misrepresentation; or (vi) such claim is criminal in nature, could reasonably be expected to lead to criminal proceedings, or seeks
an injunction or other equitable relief against the Indemnitee. If the Indemnitor elects, and is entitled, to compromise or defend
such claim, it will within fifteen (15) days (or sooner, if the nature of the claim so requires) notify the Indemnitee of its intent
to do so, and the Indemnitee will, at the request and expense of the Indemnitor, cooperate in the defense of such claim. If the
Indemnitor elects not to, or is not entitled under this Section 7.4(b) to, compromise or defend such claim, fails to notify
the Indemnitee of its election as herein provided or refuses to acknowledge or contests its obligation to indemnify under this
Agreement, the Indemnitee may pay, compromise or defend such claim. Notwithstanding anything to the contrary contained herein,
the Indemnitor will have no indemnification obligations with respect to any such claim which has been or will be settled by the
Indemnitee without the prior written consent of the Indemnitor (which consent will not be unreasonably withheld, delayed or conditioned);
provided, however, that notwithstanding the foregoing, the Indemnitee will not be required to refrain from paying any claim which
has matured by a court judgment or decree, unless an appeal is duly taken therefrom and exercise thereof has been stayed, nor will
it be required to refrain from paying any claim where the delay in paying such claim would result in the foreclosure of a Lien
upon any of the property or assets then held by the Indemnitee or where any delay in payment would cause the Indemnitee material
economic loss. The Indemnitor’s right to direct the defense will include the right to compromise or enter into an agreement
settling any claim by a third party; provided that no such compromise or settlement will obligate the Indemnitee to agree to any
settlement that that requires the taking or restriction of any action (including the payment of money and competition restrictions)
by the Indemnitee (other than the delivery of a release for such claim and customary confidentiality obligations), except with
the prior written consent of the Indemnitee (such consent to be withheld, conditioned or delayed only for a good faith reason).
Notwithstanding the Indemnitor’s right to compromise or settle in accordance with the immediately preceding sentence, the
Indemnitor may not settle or compromise any claim over the objection of the Indemnitee; provided, however, that consent by the
Indemnitee to settlement or compromise will not be unreasonably withheld, delayed or conditioned. The Indemnitee will have the
right to participate in the defense of any claim with counsel selected by it subject to the Indemnitor’s right to direct
the defense. The fees and disbursements of such counsel will be at the expense of the Indemnitee; provided, however, that, in the
case of any claim which seeks injunctive or other equitable relief against the Indemnitee, the fees and disbursements of such counsel
will be at the expense of the Indemnitor.

 

    	-31-

    	 

    

 

(c)          Any
indemnification claim that does not arise from a third party claim must be asserted by a written notice to the Indemnitor setting
forth with reasonable specificity the amount claimed and the underlying facts supporting such claim to the extent then known by
the Indemnitee. The Indemnitor will have a period of thirty (30) days after receipt of such notice within which to accept or dispute
such claim by providing written notice to the Indemnitee; and any disputes with respect to such claims that the parties are not
mutually able to resolve within thirty (30) days after the Indemnitor has provided written notice of its dispute of such claim,
shall be immediately referred to and finally resolved by arbitration in New York, New York, in accordance with the Expedited Procedures
of the Commercial Arbitration Rules (the “Arbitration Rules”) of the American Arbitration Association
(“AAA”) in force at such time, and judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. The arbitration shall be conducted by one arbitrator nominated by the AAA promptly (but
in any event within three (3) Business Days) after the submission of the dispute to the AAA and reasonably acceptable to each party.
The arbitrator shall accept his or her appointment and begin the arbitration process promptly (but in any event within three (3)
Business Days) after his or her nomination and acceptance by the parties. The arbitrator shall decide the Expedited Dispute in
accordance with the substantive law of the State of New York and otherwise in accordance with the terms of this Agreement. To the
extent that the Arbitration Rules and this Agreement are in conflict, the terms of this Agreement shall control. The arbitration
proceedings shall be streamlined and efficient; time is of the essence. Each party shall submit a proposal for resolution of the
dispute to the arbitrator within ten (10) Business Days after confirmation of the appointment of the arbitrator. The arbitrator
shall have the power to order any party to do, or to refrain from doing, anything consistent with this Agreement and applicable
Law, including to perform its contractual obligation(s); provided, that the arbitrator shall be limited to ordering pursuant to
the foregoing power (and, for the avoidance of doubt, shall order) the relevant party to comply with only one or the other of the
proposals. The arbitrator’s award shall be in writing and shall include a reasonable explanation of the arbitrator’s
reason(s) for selecting one or the other proposal. This agreement to arbitrate shall be specifically enforceable and following
the Closing shall be the sole and exclusive remedy of the Indemnitee for any indemnification claim that does not arise from a third
party claim.

 

7.5.        Limitations
on Indemnification. No Indemnitor shall be liable for an indemnification claim made under clause (a) of Section 7.2
or clause (a) of Section 7.3, as the case may be, unless and until the Losses of the Buyer Indemnified Parties, collectively,
or the Seller Indemnified Parties, collectively, as applicable, exceed an aggregate amount equal to Seventy-Five Thousand U.S.
Dollars ($75,000) (the “Basket”), in which case the applicable Indemnitor(s) shall be obligated to the
Indemnitee(s) for the amount of all Losses of the Indemnitee(s) (including the first dollar of Losses of the Buyer Indemnified
Parties or the Seller Indemnified Parties, as applicable, required to reach the Basket); provided, however, that the Basket shall
not apply to Fraud Claims. The Basket shall apply only to indemnification claims made under clause (a) of Section 7.2 or
clause (a) of Section 7.3 and shall not affect or apply to any other indemnification claim made pursuant to this Agreement,
including those asserted under any other clause of Section 7.2 or 7.3. No Indemnitor shall be liable for an indemnification
claim made under clause (a) of Section 7.2 or clause (a) of Section 7.3, as the case may be: (x) for which a claim
for indemnification is not asserted hereunder on or before the applicable Survival Date; or (y) to the extent Losses incurred by
the Buyer Indemnified Parties in the aggregate under clause (a) of Section 7.2 or by the Seller Indemnified Parties in the
aggregate under clause (a) of Section 7.3, as applicable, exceed an amount equal to One Million Five Hundred Thousand U.S.
Dollars ($1,500,000) (the “Indemnification Cap”); provided, that with respect to any claims for
breaches of the representations and warranties contained in Sections 4.1 (Organization and Qualification), 4.2(a)
(Authorization and Binding Effect), Sections 4.3 (Title to the Purchased Interests), 4.4 (Capitalization), 4.29
(No Brokers), 5.1 (Organization and Qualification), 5.2 (Authorization), 5.4 (The Shares) and 5.10 (Solvency),
the Indemnification Cap shall be equal to the amount of the Purchase Price actually paid (or deemed paid, including by offset pursuant
to Section 7.7) to Sellers. Notwithstanding the foregoing, the Indemnification Cap shall not apply to Fraud Claims. The
Indemnification Cap shall apply only to indemnification claims made under clause (a) of Section 7.2 or clause (a) of Section
7.3 and shall not affect or apply to any other indemnification claim made pursuant to this Agreement, including those asserted
under any other clause of Section 7.2 or 7.3.

 

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7.6.        General
Indemnification Provisions. 

 

(a)          The
amount of any Losses payable by an Indemnitor to the Indemnitee shall be net of any (i) amounts actually recovered by the Indemnitee
under applicable insurance policies, net of the costs of collection and any actual increase in insurance premiums for the two year
period following the year in which the Loss occurs resulting from such Loss or insurance payment, (ii) Tax benefit actually realized
by the Indemnitee during the Tax year in which such Losses occur arising from the incurrence or payment of any such Losses, determined
on a “with and without” basis after taking into account all other items of income, gain, credit, deduction and loss,
and (iii) indemnification or reimbursement payments actually recovered by the Indemnitee from unrelated third parties (for the
avoidance of doubt, excluding any other Buyer Indemnified Party if the Indemnitee is a Buyer Indemnified Party or any other Seller
Indemnified Party if the Indemnitee is a Seller Indemnified Party) with respect to such Losses, net of the costs of collection.
In each case of clauses of (i), (ii) and (iii), the Indemnitee has a duty to use its commercially reasonable efforts to obtain
any such insurance proceeds, Tax benefits and indemnification or reimbursement payments; provided, that in no event shall
the Indemnitee be required to (A) make a claim against an insurer or other Person before bringing a claim for indemnification under
this ARTICLE VII or (B) seek litigation or other Action in connection with any recovery of Losses from an insurer or other
Person.

 

(b)          Any
Losses under this Agreement and the Ancillary Documents shall be determined without duplication of recovery by reason of the state
of facts giving rise to such Losses constituting a breach of more than one representation, warranty, covenant or agreement.

 

(c)          Each
Indemnitee agrees to use its commercially reasonable efforts to mitigate any Losses it may incur for which it is entitled to indemnification
from any Indemnitor pursuant to this Agreement.

 

(d)          No
investigation by Buyer or its Representatives, on the one hand, or the Seller Parties or their Representatives, on the other hand,
or knowledge by Buyer or its Representatives, on the one hand, or the Seller Parties or their Representatives, on the other hand,
of a breach of a representation or warranty of the other set of parties shall affect such other set of parties’ representations
and warranties or the recourse available to such first party or any other Indemnitee of such first party under any provision of
this Agreement (including this ARTICLE VII) with respect thereto.

 

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(e)          Except
as expressly provided in this Agreement, and except for Fraud Claims, claims based on willful misconduct or any equitable remedies
that a party may be entitled to, including claims seeking injunctions or specific performance, the provisions for indemnification
set forth in this ARTICLE VII are the exclusive remedies of the parties hereto with respect to any claims arising out of
or in connection with this Agreement, and shall be in lieu of any rights under contract, tort, equity or otherwise.

 

(f)          Notwithstanding
anything in this Agreement to the contrary, for purposes of application of the indemnification provisions of this ARTICLE VII,
the amount of any Loss arising from the breach of any representation, warranty, covenant, obligation or agreement contained in
this Agreement shall be the entire amount of any Loss actually incurred by the respective Indemnitee as a result of such breach
and not just that portion of the Loss that exceeds the relevant level of materiality, if any. No Seller will have any right to
seek contribution from any Lighthouse Company or Buyer with respect to all or any part of such Seller’s indemnification obligations
under this ARTICLE VII. The Buyer Indemnified Parties will not be required to make any claim against the Company in respect
of any representation, warranty, covenant or any other obligation of the Company to Buyer hereunder or under any Ancillary Document
to which the Company is a party, and may solely seek action against Sellers. Unless otherwise required by applicable Law, all indemnification
payments will constitute adjustments to the Purchase Price for all Tax purposes, and no party may take any position inconsistent
with such characterization.

 

(g)          Notwithstanding
anything to the contrary contained in this Agreement, Losses shall not include, and no party shall not be liable for, (i) any exemplary
or punitive damages, or (ii) any consequential damages that are not reasonably foreseeable as a result of or arising from a party’s
breach of the representations, warranties or covenants set forth in this Agreement, except, in each case, to the extent paid to
a third party.

 

7.7.        Timing
of Payment; Right to Set-Off; Recovery of Shares. Any indemnification obligation of an Indemnitor under this ARTICLE VII
will be paid within three (3) Business Days after the determination of such obligation in accordance with Section 7.4. The
provisions of this ARTICLE VII notwithstanding, at its sole discretion and without limiting any other rights of the Buyer
Indemnified Parties under this Agreement or any Ancillary Document or at law or equity, to the extent that a Buyer Indemnified
Party is determined in accordance with Section 7.4 to be entitled to indemnification hereunder, if a Seller fails or refuses
to promptly indemnify such Buyer Indemnified Party as provided herein then the Buyer Indemnified Party may offset the full amount
to which such Buyer Indemnified Party is entitled, in whole or in part, by reducing the amount of any payment or other obligation
due to such Seller from any Buyer Indemnified Party pursuant to this Agreement or any Ancillary Document, including any amounts
owed by Buyer pursuant to any outstanding indemnification claim, any Shares required to be delivered under Section 1.5(d)
after the Closing (based on the value of the Shares as determined under such section), any amounts owed after the Unrestricted
Date under Section 1.7, any amounts due and payable under either Note. Without limiting any of the foregoing or any other
rights of the Buyer Indemnified Parties under this Agreement or any Ancillary Document or at law or equity, in the event that a
Seller fails or refuses to promptly indemnify a Buyer Indemnified Party as provided herein or otherwise fails or refuses to make
any payments required under any Ancillary Document, in either case, where it is established that such Seller is obligated to provide
such indemnification or to make such payment, the applicable Buyer Indemnified Party shall, in its sole discretion, be entitled
to claim a portion of the Shares then owned by such Seller up to an amount equal in value (based on (a) the Buyer Common Stock
Price, if occurring prior to the Unrestricted Date, and (b) the VWAP Price, if occurring on or after the Unrestricted Date) to
the amount owed by such Seller. In the event that such Seller fails to promptly transfer any such Shares pursuant to this Section
7.7 or fails to transfer any Shares as required by Section 1.5(d), Buyer shall be and hereby is authorized as the attorney-in-fact
for such Seller to transfer such Shares to the proper recipient thereof as required by this Section 7.7 or Section 1.5(d),
as applicable, and may transfer such Shares and cancel the stock certificates for such Shares on its books and records and issue
new stock certificates to such transferee and may instruct its agents and any exchanges on which shares of Buyer Common Stock are
listed or traded to do the same.

    	-34-

    	 

    

 

 

ARTICLE
VIII

GENERAL PROVISIONS

 

8.1.        Expenses
Except as otherwise expressly set forth elsewhere in this Agreement, Buyer will bear its own legal and other fees and expenses
incurred in connection with its negotiating, executing and performing this Agreement, including any related broker’s or finder’s
fees, and the Seller Parties will bear their respective legal and other fees and expenses incurred in connection with their negotiating,
executing and performing this Agreement, including any related broker’s or finder’s fees, for periods on or before
the Closing Date. Sellers agree that the fees and expenses of the Seller Parties for periods on or before the Closing Date will
be paid by Sellers or on behalf of Sellers in accordance with Section 1.3(d). Sellers will bear their own legal and other
fees and expenses incurred in connection with this Agreement after the Closing, including any costs and expenses incurred by the
Seller Representative on their behalf, subject to the provisions of this Agreement.

 

8.2.        Notices.
Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing and shall be deemed
to have been given, (i) when received if given in person or by courier or a courier service, (ii) on the date of transmission if
sent by email (with affirmative confirmation of receipt, and provided, that the party providing notice shall within two (2) Business
Days provide notice by another method under this Section 8.2) or (iii) three (3) Business Days after being deposited in
the U.S. mail, certified or registered mail, postage prepaid:

 

	
        If to the Seller Representative, either Seller or, 

prior
        to the Closing, the Company, to:

         

        Alison Fogel

        +++++++++

        +++++++++

        ++++++++++++

        ++++++++++++
	
        with a copy (which will not constitute notice) to:

         

        Riemer & Braunstein LLP

        Seven Times Square, Suite 2506

        New York, New York 10036

        Attn: Ronald N. Braunstein, Esq.

        Telephone No: (212) 789-3131

        Email: rbraunstein@riemerlaw.com

	
        If to Buyer or, after the Closing, the Company, to:

         

        Staffing 360 Solutions, Inc.

        641 Lexington Avenue, Suite 1526

        New York, New York 10022

        Attention: Matthew Briand

        Telephone No.: (203) 268-8624 (ext. 5600)

        Email: matt@staffing360solutions.com
	
        with a copy (which will not constitute notice) to:

         

        Ellenoff Grossman & Schole LLP

        1345 Avenue of the Americas, 11th Floor

        New York, New York 10105

        Attention: Barry Grossman, Esq.

        Telephone No.: (212) 370-1300

        Email: bigrossman@egsllp.com

 

or to such other individual
or address as a party hereto may designate for itself by notice given as herein provided.

 

8.3.        Sellers
Not Authorized to Act on Behalf of Buyer. In the event that a Seller becomes a director, officer, employee or other authorized
agent of Buyer or its Affiliates (including, after the Closing, any Lighthouse Company), such Seller shall have no authority, express
or implied, to act or make any determination on behalf of Buyer or its Affiliates in connection with this Agreement or any Ancillary
Document or the consummation of the transactions contemplated hereby and thereby or any dispute or Action with respect thereto.

 

    	-35-

    	 

    

 

8.4.        Severability.
In case any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect,
the validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired. Any illegal
or unenforceable term will be deemed to be void and of no force and effect only to the minimum extent necessary to bring such term
within the provisions of applicable Law and such term, as so modified, and the balance of this Agreement will then be fully enforceable.
The parties will substitute for any invalid, illegal or unenforceable provision a suitable and equitable provision that carries
out, so far as may be valid, legal and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.

 

8.5.        Assignment.
This Agreement may not be assigned by any party without the prior written consent of the other parties hereto, and any attempted
assignment in violation of this Section 8.5 will be null and void ab initio; provided, however, that after
the Closing, Buyer and the Company may assign its rights and benefits hereunder (i) to any Affiliate of Buyer or the Company, as
applicable (provided, that Buyer or the Company, as applicable, shall remain primarily responsible for its obligations hereunder
and the assignee expressly assumes the obligations of Buyer or the Company, as applicable, hereunder), (ii) to any Person acquiring
all or substantially all of the assets of Buyer and its Subsidiaries taken as a whole or all or substantially all of the assets
of the Company and its Subsidiaries taken as a whole or a majority of the outstanding equity securities of Buyer or the Company
(whether by stock purchase, merger, consolidation or otherwise); provided, that the assignee expressly assumes the obligations
of Buyer or the Company, as applicable, hereunder, or (iii) as security to any Person providing debt financing to Buyer for the
transactions contemplated hereby. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon
and inure to the benefit of the successors and permitted assigns of each party hereto. Notwithstanding the foregoing, the parties
acknowledge that any replacement Seller Representative shall automatically become a party to this Agreement in place of the replaced
Seller Representative upon his or her appointment and acceptance in accordance with Section 8.14 hereof.

 

8.6.        No
Third-Party Beneficiaries. Except for the indemnification rights of the Buyer Indemnified Parties and the Seller Indemnified
Parties set forth herein, this Agreement is for the sole benefit of the parties hereto and their successors and permitted assigns
and nothing herein expressed or implied shall give or be construed to give to any Person, other than the parties hereto and such
successors and permitted assigns, any legal or equitable rights hereunder.

 

8.7.        Amendment;
Waiver. This Agreement may not be amended or modified except by an instrument in writing signed by each of the parties hereto.
Notwithstanding anything to the contrary contained herein: (a) the failure of any party at any time to require performance by the
other of any provision of this Agreement will not affect such party’s right thereafter to enforce the same; (b) no waiver
by any party of any default by any other party will be valid unless in writing and acknowledged by an authorized representative
of the non-defaulting party, and no such waiver will be taken or held to be a waiver by such party of any other preceding or subsequent
default; and (c) no extension of time granted by any party for the performance of any obligation or act by any other party will
be deemed to be an extension of time for the performance of any other obligation or act hereunder.

 

8.8.        Entire
Agreement. This Agreement (including the Exhibits and Schedules hereto, which are hereby incorporated herein by reference and
deemed part of this Agreement), together with the Ancillary Documents constitute the entire agreement among the parties hereto
with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, with respect
to the subject matter hereof.

 

    	-36-

    	 

    

 

8.9.        Remedies.
Except as specifically set forth in this Agreement, any party having any rights under any provision of this Agreement will have
all rights and remedies set forth in this Agreement and all rights and remedies which such party may have been granted at any time
under any other contract or agreement and all of the rights which such party may have under any applicable Law. Except as specifically
set forth in this Agreement, any such party will be entitled to (a) enforce such rights specifically, without posting a bond or
other security or proving damages or that monetary damages would be inadequate, (b) to recover damages by reason of a breach of
any provision of this Agreement and (c) to exercise all other rights granted by applicable Law. The exercise of any remedy by a
party will not preclude the exercise of any other remedy by such party.

 

8.10.      Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York (without giving effect to its choice of law principles). Subject
to Sections 1.5(c) and 7.4(c), for purposes of any Action arising out of or in connection with this Agreement, the
Ancillary Documents or any transaction contemplated hereby or thereby, each of the parties hereto (a) irrevocably submits to the
exclusive jurisdiction and venue of any state or federal court located within New York County, State of New York (or any court
in which appeal from such courts may be taken), (b) agrees that service of any process, summons, notice or document by U.S. registered
mail to such party’s respective address set forth in Section 8.2 shall be effective service of process for any Action
with respect to any matters to which it has submitted to jurisdiction in this Section 8.10, and (c) waives and covenants
not to assert or plead, by way of motion, as a defense or otherwise, in any such Action, any claim that it is not subject personally
to the jurisdiction of such court, that the Action is brought in an inconvenient forum, that the venue of the Action is improper
or that this Agreement or the Ancillary Document, as applicable, or the subject matter hereof or thereof may not be enforced in
or by such court, and hereby agrees not to challenge such jurisdiction or venue by reason of any offsets or counterclaims in any
such Action. The parties hereto hereby knowingly, voluntarily and intentionally waive the
right any may have to a trial by jury in respect to any litigation based hereon, or arising out of, under, or in connection with
this Agreement and any agreement contemplated to be executed in connection herewith, or any course of conduct, course of dealing,
statements (whether verbal or written) or actions of any party in connection with such agreements.

 

8.11.      Interpretation.
The table of contents and the headings and subheadings of this Agreement are for reference and convenience purposes only and in
no way modify, interpret or construe the meaning of specific provisions of the Agreement. In this Agreement, unless the context
otherwise requires: (i) whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (ii) reference
to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted
by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity; (iii) any accounting
term used and not otherwise defined in this Agreement or any Ancillary Document has the meaning assigned to such term in accordance
with GAAP; (iv) “including” (and with correlative meaning “include”) means including without limiting the
generality of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words “without
limitation”; (v) the words “herein,” “hereto,” and “hereby” and other words of similar
import in this Agreement shall be deemed in each case to refer to this Agreement as a whole and not to any particular Section or
other subdivision of this Agreement; (vi) the word “if” and other words of similar import when used herein shall be
deemed in each case to be followed by the phrase “and only if”; (vii) the term “or” means “and/or”;
(viii) reference to any statute includes any rules and regulations promulgated thereunder; (ix) any agreement, instrument, insurance
policy, Law or Order defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument, insurance policy, Law or Order as from time to time amended, modified or supplemented, including (in the case of agreements
or instruments) by waiver or consent and (in the case of statutes, regulations, rules or orders) by succession of comparable successor
statutes, regulations, rules or orders and references to all attachments thereto and instruments incorporated therein; and (x)
except as otherwise indicated, all references in this Agreement to the words “Section,” “Schedule” and
“Exhibit” are intended to refer to Sections, Schedules and Exhibits to this Agreement. To the extent that any Contract,
document, certificate or instrument is represented or warranted to by a Seller Party to be given, delivered, provided or made available
by any Seller Party, in order for such Contract, document, certificate or instrument to have been deemed to have been given, delivered,
provided and made available to Buyer, such Contract, document, certificate or instrument shall have been posted to the Data Site,
and Buyer and its Representatives shall have been given access to the electronic folders containing such information through the
Closing.

 

    	-37-

    	 

    

 

8.12.      Mutual
Drafting. The parties acknowledge and agree that: (a) this Agreement and the Ancillary Documents are the result of negotiations
between the parties and will not be deemed or construed as having been drafted by any one party, (b) each party and its counsel
have reviewed and negotiated the terms and provisions of this Agreement (including any, Exhibits and Schedules attached hereto)
and the Ancillary Documents and have contributed to their revision, (c) the rule of construction to the effect that any ambiguities
are resolved against the drafting party will not be employed in the interpretation of this Agreement or the Ancillary Documents
and (d) neither the drafting history nor the negotiating history of this Agreement or the Ancillary Documents may be used or referred
to in connection with the construction or interpretation thereof.

 

8.13.      Counterparts.
This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
A photocopy, faxed, scanned and/or emailed copy of this Agreement or any Ancillary Document or any signature page to this Agreement
or any Ancillary Document, shall have the same validity and enforceability as an originally signed copy.

 

8.14.      Seller
Representative.

 

(a)          By
the execution and delivery of this Agreement, each Seller hereby irrevocably constitutes and appoints Alison Fogel (in such capacity,
the “Seller Representative”) as the true and lawful agent and attorney-in-fact of such Seller with full
powers of substitution to act in the name, place and stead of thereof with respect to the performance on behalf of such Seller
under the terms and provisions of this Agreement and the Ancillary Documents, as the same may be from time to time amended, and
to do or refrain from doing all such further acts and things, and to execute all such documents on behalf of such Seller, if any,
as the Seller Representative will deem necessary or appropriate in connection with any of the transactions contemplated under this
Agreement or any of the Ancillary Documents, including: (i) agree upon or compromise any matter related to the calculation of any
adjustments to the purchase price under this Agreement; (ii) direct the distribution of the Purchase Price among Sellers, including
any payments under either Note; (iii) act for Sellers with respect to all indemnification matters referred to in this Agreement,
including the right to compromise on behalf of Sellers any indemnification claim made by or against Sellers, if any; (iv) act for
Sellers with respect to all post-Closing matters; (v) terminate, amend or waive any provision of this Agreement; provided, that
any such action, if material to the rights and obligations of Sellers in the reasonable judgment of the Seller Representative,
will be taken in the same manner with respect to all Sellers unless otherwise agreed by each Seller who is subject to any disparate
treatment of a potentially adverse nature; (vi) employ and obtain the advice of legal counsel, accountants and other professional
advisors as the Seller Representative, in his or her sole discretion, deems necessary or advisable in the performance of his or
her duties as the Seller Representative and to rely on their advice and counsel; (vii) incur and pay expenses, including fees of
brokers, attorneys and accountants incurred pursuant to the transactions contemplated hereby, and any other fees and expenses allocable
or in any way relating to such transaction or any indemnification claim, whether incurred prior or subsequent to Closing; (viii)
receive all or any portion of the Purchase Price and to distribute the same to Sellers pro rata in proportion to their ownership
interests; (ix) sign any releases or other documents with respect to and dispute or remedy arising under this Agreement or the
Ancillary Documents; and (x) do or refrain from doing any further act or deed on behalf of Sellers which the Seller Representative
deems necessary or appropriate in his or her sole discretion relating to the subject matter of this Agreement as fully and completely
as any Seller could do if personally present and acting. The Seller Representative hereby accepts his or her appointment and authorization
as the Seller Representative under this Agreement.

 

    	-38-

    	 

    

 

(b)          The
appointment of the Seller Representative will be deemed coupled with an interest and will be irrevocable, and any other Person,
including Buyer, the Company and any other Buyer Indemnified Parties may conclusively and absolutely rely, without inquiry, upon
any actions of the Seller Representative as the acts of Sellers hereunder or any Ancillary Document to which they are a party.
Each Buyer Indemnified Party shall be entitled to rely conclusively on the instructions and decisions of the Seller Representative
as to (i) the settlement of any claims for indemnification by a Buyer Indemnified Party pursuant to ARTICLE VII hereof,
(ii) any payment instructions provided by the Seller Representative or (iii) any other actions required or permitted to be taken
by the Seller Representative hereunder, and no Seller Indemnified Party shall have any cause of action against any Buyer Indemnified
Party for any action taken by a Buyer Indemnified Party in reliance upon the instructions or decisions of the Seller Representative.
No Buyer Indemnified Party shall have any liability to Sellers for any allocation or distribution among Sellers by the Seller Representative
of payments made to or at the direction of the Seller Representative.

 

(c)          The
Seller Representative will act for Sellers on all of the matters set forth in this Agreement in the manner the Seller Representative
believes to be in the best interest of Sellers, but the Seller Representative will not be responsible to Sellers for any loss or
damage that any Seller may suffer by reason of the performance by the Seller Representative of such Seller Representative’s
duties under this Agreement, other than loss or damage arising from fraud, gross negligence or willful misconduct in the performance
of the Seller Representative’s duties under this Agreement. Sellers do hereby jointly and severally agree to indemnify and
hold the Seller Representative harmless from and against any and all Losses reasonably incurred or suffered as a result of the
performance of the Seller Representative’s duties under this Agreement, except for any such liability arising out of the
fraud, gross negligence or willful misconduct of the Seller Representative. The Seller Representative will not be entitled to any
fee, commission or other compensation for the performance of his or her services hereunder, but will be entitled to the payment
from Sellers of all his or her expenses incurred as the Seller Representative.

 

(d)          If
the Seller Representative shall die, become disabled, resign or otherwise be unable to fulfill his or her responsibilities as agent
of Sellers, then Sellers shall, within ten (10) days after such death or disability, appoint a successor agent and, promptly thereafter
(but in any event within two (2) Business Days after such appointment), shall notify Buyer in writing of the identity of such successor.
Any such successor shall be appointed by the written consent of Sellers, and any successor so appointed shall become the “Seller
Representative” for purposes of this Agreement.

 

    	-39-

    	 

    

 

(e)          All
notices or other communications required to be made or delivered by Buyer to a Seller shall be made to the Seller Representative
for the benefit of such Seller, and any notices so made shall discharge in full all notice requirements of Buyer to such Seller
with respect thereto. All notices or other communications required to be made or delivered by a Seller shall be made by the Seller
Representative (except for a notice under Section 8.14(d) of the replacement of the Seller Representative).

 

[Remainder
of Page Intentionally Left Blank; Signatures Appear on Following Page]

 

    	-40-

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered as of the date first written above.

 

	 	Sellers:
	 	 
	 	/s/ Alison Fogel
	 	Alison Fogel
	 	 
	 	/s/ David Fogel
	 	David Fogel
	 	 
	 	The Company:
	 	 
	 	LIGHTHOUSE PLACEMENT SERVICES, LLC
	 	 
	 	By:	/s/ Alison Fogel
	 	 	Name:  Alison Fogel
	 	 	Title:  Managing Member
	 	 
	 	Buyer:
	 	 
	 	STAFFING 360 SOLUTIONS, INC.
	 	 
	 	By:	/s/ Matthew Briand
	 	 	Name:  Matthew Briand
	 	 	Title:  Chief Executive Officer

 

[Signature Page
to Equity Purchase Agreement]

 

    	 

    	 

    

 

Exhibit A

Definitions

 

1.            Certain
Defined Terms. As used in the Agreement, the following terms shall have the following meanings:

 

“Action”
means any notice of noncompliance or violation, or any claim, demand, charge, action, suit, litigation, audit, settlement, complaint,
stipulation, assessment or arbitration, or any request (including any request for information), inquiry, hearing, proceeding or
investigation, by or before any Governmental Authority.

 

“Adjusted
EBITDA” means with respect to any designated period of time, the earnings before interest, income Taxes, depreciation
and amortization of the Lighthouse Companies, on a consolidated basis, for such period, as adjusted by and calculated in accordance
with the methodology set forth on Schedule A-1 attached hereto.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 of the regulations under the Securities Exchange Act of 1934, as amended.

 

“Ancillary
Documents” means each agreement, instrument or document attached hereto as an Exhibit, including the Notes, the Non-Competition
Agreement, the Employment Agreements and the other agreements, certificates and instruments to be executed or delivered by any
of the parties hereto in connection with or pursuant to this Agreement.

 

“Benefit
Plan” means any deferred compensation, executive compensation, incentive compensation, equity purchase or other equity-based
compensation plan, employment or consulting, severance or termination pay, holiday, vacation or other bonus plan or practice, hospitalization
or other medical, life or other insurance, supplemental unemployment benefits, profit sharing, pension, or retirement plan, program,
agreement, commitment or arrangement, and each other employee benefit plan, program, agreement or arrangement, including each “employee
benefit plan” as such term is defined under Section 3(3) of ERISA, in any case, existing as of the Closing or at any time
prior thereto, established, or to which contributions have been made at any time, by any Lighthouse Company, or any predecessor
thereof, or under which any employee, former employee, director, agent or independent contractor of any Lighthouse Company, any
Seller or any Affiliate thereof or any beneficiary thereof is covered, is eligible for coverage or has benefit rights.

 

“Business
Day” means any day that is not a Saturday, Sunday or any other day on which banks are required or authorized by Law
to be closed in New York City, New York.

 

“Buyer Common
Stock” means shares of the common stock, par value $0.0001 per share, of Buyer (and, after the Closing, any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common
stock).

 

“Buyer Common
Stock Price” means an amount equal to One U.S. Dollar ($1.00) per share; provided, that in the event that
after the Closing any equity securities are issued or issuable by Buyer (or its successor) or special dividends or distributions
are made with respect to shares of Buyer Common Stock (whether by way of any equity dividend, equity split or reverse equity split
or in exchange for or upon conversion of such shares or otherwise in connection with a combination of shares, recapitalization,
merger, consolidation or other corporation reorganization), the Buyer Common Stock Price thereafter will be equitably adjusted
for any such events are reasonably determined in good faith by Buyer.

 

    	A-1

    	 

    

 

“Closing
Accounts Receivable” means any trade accounts receivable of the Company as of the Closing, as determined in accordance
with GAAP and immediately prior to the consummation of the transactions contemplated by this Agreement (but for the avoidance of
doubt, excluding any unbilled time for Staffing Employees and independent contractors (including consultants)).

 

“Closing
Current Assets” means the current assets of the Lighthouse Companies as of the Closing, as determined in accordance
with GAAP and immediately prior to the consummation of the transactions contemplated by this Agreement; provided, however,
that, notwithstanding the foregoing, “Closing Current Assets” will: (i) exclude any Closing Accounts Receivable and
(ii) include unbilled time for Staffing Employees and independent contractors (including consultants).

 

“Closing
Current Liabilities” means the current liabilities of the Lighthouse Companies as of the Closing, as determined in
accordance with GAAP and immediately prior to the consummation of the transactions contemplated by this Agreement; provided,
however, that, notwithstanding the foregoing, whether or not the following is consistent with GAAP, “Closing Current
Liabilities” will: (i) exclude any Indebtedness, Transaction Expenses and the amount for Transaction Bonuses paid pursuant
to Section 1.3(d), and (ii) include (A) all liabilities for accrued or deferred Taxes, (B) all balance sheet reserves required
under GAAP (applied in a manner consistent with prior practices of the Lighthouse Companies), including reserves for unearned revenue)
and (C) all liabilities for expenses related to unbilled time for Staffing Employees and independent contractors (including consultants)
to the extent such unbilled time is included in Closing Current Assets.

 

“Code”
means the Internal Revenue Code of 1986 and any successor statute thereto, as amended. Reference to a specific section of the Code
shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation
amending, supplementing or superseding such section.

 

“Confidential
Information” means any information concerning the business and affairs of a Lighthouse Company that is not generally
available to the public, including know-how, trade secrets, customer lists, details of customer or consultant contracts, pricing
policies, operational methods and marketing plans or strategies, and any information disclosed to a Lighthouse Company by third
parties to the extent that a Lighthouse Company has an obligation of confidentiality in connection therewith.

 

“Contract”
means any contract, agreement, binding arrangement, commitment or understanding, bond, note, indenture, mortgage, debt instrument,
license (or any other contract, agreement or binding arrangement concerning Intellectual Property), franchise, lease or other instrument
or obligation of any kind, written or oral (including any amendments or other modifications thereto).

 

“Contract
Loss” means the total direct and indirect costs incurred by the Lighthouse Companies under a Government Contract
exceed the total amount of payments that have been and will be received by the Lighthouse Companies under such Government Contract.

 

“Corporate
Employee” means any employee of a Lighthouse Company that performs services for a Lighthouse Company and is not staffed
to customers of a Lighthouse Company to perform services for such customers.

 

    	A-2

    	 

    

 

“Copyrights”
means all works of authorship, mask works and all copyrights therein, including all renewals and extensions, copyright registrations
and applications for registration and renewal, and non-registered copyrights.

 

“Data Site”
means the on-line data site maintained by or on behalf of the Seller Parties to provide information for Buyer and its Representatives
in contemplation of this Agreement and the transactions contemplated hereby.

 

“Disclosure
Schedules” means the disclosure schedules to this Agreement dated as of the date hereof and forming a part of this
Agreement.

 

“Dispute
Resolution Notice Date” means the date that Buyer or the Seller Representative receives notice from the other party
that such other party has elected to resolve a dispute under Section 1.5 using the Dispute Resolution Procedure.

 

“Dispute
Resolution Procedure” means the procedure pursuant to which matters disputed under Section 1.5 may be referred
by either Buyer or the Seller Representative to the Independent Expert for determination. Each of the Seller Representative and
Buyer agrees to execute, if requested by the Independent Expert, a reasonable engagement letter with respect to the determination
to be made by the Independent Expert. All fees and expenses of the Independent Expert will be borne by (i) Buyer in the proportion
that the aggregate dollar amount of the disputed items submitted to the Independent Expert by Buyer that are unsuccessfully disputed
by Buyer (as finally determined by the Independent Expert) bears to the aggregate dollar amount of disputed items submitted by
Buyer and the Seller Representative, and (ii) Sellers in the proportion that the aggregate dollar amount of the disputed items
submitted to the Independent Expert by the Seller Representative that are unsuccessfully disputed by the Seller Representative
(as finally determined by the Independent Expert) bears to the aggregate dollar amount of disputed items submitted by Buyer and
the Seller Representative. Except as provided in the preceding sentence, all other costs and expenses incurred by the parties in
connection with resolving any dispute hereunder before the Independent Expert will be borne by the party incurring such cost and
expense. The Independent Expert will determine only those issues still in dispute as of the Dispute Resolution Notice Date and
the Independent Expert’s determination will be based solely upon and consistent with the terms and conditions of this Agreement.
The determination by the Independent Expert will be based solely on presentations with respect to such disputed items by Buyer
and the Seller Representative to the Independent Expert and not on the Independent Expert’s independent review; provided,
that such presentations will be deemed to include any work papers, records, accounts or similar materials delivered to the Independent
Expert by Buyer or the Seller Representative in connection with such presentations and any materials delivered to the Independent
Expert in response to requests by the Independent Expert. Each of the Seller Representative and Buyer will use their reasonable
efforts to make their respective presentations as promptly as practicable following submission to the Independent Expert of the
disputed items, and each such party will be entitled, as part of its presentation, to respond to the presentation of the other
party and any questions and requests of the Independent Expert. In deciding any matter, the Independent Expert will be bound by
the provisions of this Agreement, including this Dispute Resolution Procedure, and may not assign a value to any item greater than
the greatest value for such item claimed by Buyer or the Seller Representative or less than the smallest value for such item claimed
by Buyer or the Seller Representative. It is the intent of the parties hereto that the process set forth in this definition of
“Dispute Resolution Procedure” and the activities of the Independent Expert in connection herewith are not (and should
not be considered to be or treated as) an arbitration proceeding or similar arbitral process and that no formal arbitration rules
should be followed (including rules with respect to procedures and discovery). The Seller Representative and Buyer will request
that the Independent Expert’s determination be made within forty-five (45) days after its engagement, or as soon thereafter
as possible, will be set forth in a written statement delivered to Buyer and the Seller Representative and will be final, conclusive,
non-appealable and binding for all purposes hereunder (other than for fraud or manifest error).

 

    	A-3

    	 

    

 

“Environmental
Condition” means any contamination or damage to the environment caused by or relating to the use, handling, storage,
treatment, recycling, generation, transportation, release, spilling, leaching, pumping, pouring, emptying, discharging, injection,
escaping, disposal, dumping or threatened release of Hazardous Materials by any Person. With respect to claims by employees or
other third parties, Environmental Condition also includes the exposure of Persons to amounts of Hazardous Materials.

 

“Environmental
Laws” means all Laws relating to pollution or protection of the environment, natural resources and health, safety
and fire prevention, including those relating to emissions, discharges, releases or threatened releases of Hazardous Material into
the environment (including ambient air, surface water, groundwater or land), or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Material.

 

“Environmental
Permits” means all permits, approvals, agreements, identification numbers, licenses and other authorizations required
under any applicable Environmental Law.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and any successor statute thereto, as amended. Reference to a specific
section of ERISA shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future
legislation amending, supplementing or superseding such section.

 

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

 

“FAR”
means the Federal Acquisition Regulation and any agency supplement thereto.

 

“Fraud
Claims” means claims based in whole or in part on actual fraud or intentional or willful misrepresentation of material
facts which constitute common law fraud under applicable Laws

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis.

 

“Governing
Documents” means, with respect to any entity, its certificate of incorporation, certificate of formation
or similar charter document and its bylaws, operating agreement or similar governing document.

 

“Government
Bid” means any bid, offer, proposal, or quotation made or submitted by a Lighthouse Company prior to the Closing
which, if accepted or selected for award, would result in a Government Contract.

 

“Government
Contract” means any prime contract, subcontract, teaming agreement or arrangement, joint venture agreement, basic
ordering agreement, blanket purchase agreement, pricing agreement, letter contract or other similar arrangement of any kind, between
a Lighthouse Company, on the one hand, and (a) any Governmental Authority or (b) any prime contractor of a Governmental Authority
in its capacity as a prime contractor where the Lighthouse Company is recognized as an approved subcontractor by such Governmental
Authority, on the other hand.

 

    	A-4

    	 

    

 

“Governmental
Authority” means any federal, state, local, foreign or other governmental, quasi-governmental or administrative body,
instrumentality, department or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other
similar dispute-resolving panel or body. The term “Governmental Authority” includes any Person acting on behalf of
a Governmental Authority.

 

“Hazardous
Material” means (a) all substances, materials, chemicals, compounds, pollutants or wastes regulated by, under or
pursuant to any Environmental Laws, including the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq., the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601 et
seq., the Clean Water Act, 33 U.S.C. §§1251 et seq., the Clean Air Act, 42 U.S.C. §§ 7401 et
seq., the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq., the Emergency Planning and Community
Right-to-Know Act of 1986, Title III of Public Law 99-499, the Safe Drinking Water Act, and any and all foreign (whether
national, provincial or local), state or local counterparts thereto or other similar foreign (whether national, provincial or local),
state or local laws and orders, including any and all rules and regulations promulgated thereunder, or any common law theory based
on nuisance, negligence, product liability, trespass, ultrahazardous activity or strict liability; and (b) asbestos, petroleum,
any fraction or product of crude oil or petroleum, radioactive materials and polychlorinated biphenyls.

 

“Indebtedness”
means, without duplication, (a) the outstanding principal of, and accrued and unpaid interest on, all bank or other third party
indebtedness for borrowed money of any Lighthouse Company, including indebtedness under any bank credit agreement and any other
related agreements and all obligations of any Lighthouse Company evidenced by notes, debentures, bonds or other similar instruments
for the payment of which any Lighthouse Company is responsible or liable, (b) all obligations of any Lighthouse Company for the
reimbursement of any obligor on any line or letter of credit, banker’s acceptance, guarantee or similar credit transaction,
in each case, that has been drawn or claimed against, (c) all obligations of any Lighthouse Company issued or assumed for deferred
purchase price payments, (d) all obligations of any Lighthouse Company under leases required to be capitalized in accordance with
GAAP, (e) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are
obligated to be made by any Lighthouse Company, whether periodically or upon the happening of a contingency, (f) all obligations
of any Lighthouse Company secured by a Lien (other than a Permitted Lien) on any asset of a Lighthouse Company, whether or not
such obligation is assumed by a Lighthouse Company, (g) any premiums, prepayment fees or other penalties, fees, costs or expenses
associated with payment of any Indebtedness and (h) all obligation described in clauses (a) through (g) above of any other Person
which is directly or indirectly guaranteed by any Lighthouse Company or which any Lighthouse Company has agreed (contingently or
otherwise) to purchase or otherwise acquire or in respect of which it has otherwise assured a creditor against loss.

 

“Independent
Expert” means a mutually acceptable independent (i.e., no prior material business relationship with any party for
the prior two (2) years) accounting firm recognized nationally or in the New York City tri-state region or the greater Boston region
(which appointment will be made no later than ten (10) days after the Dispute Resolution Notice Date); provided, that if
the Independent Expert does not accept its appointment or if Buyer and the Seller Representative cannot agree on the Independent
Expert, in either case within twenty (20) days after the Dispute Resolution Notice Date, either Buyer or the Seller Representative
may require, by written notice to the other, that the Independent Expert be selected by the New York City Regional Office of the
American Arbitration Association in accordance with the procedures of the American Arbitration Association. The parties agree that
the Independent Expert will be deemed to be independent even though a party or its Affiliates may, in the future, designate the
Independent Expert to resolve disputes of the types described in Section 1.5.

 

    	A-5

    	 

    

 

“Intellectual
Property” means all of the following as they exist in any jurisdiction throughout the world: (a) Patents; (b) Trademarks;
(c) Copyrights; (d) Trade Secrets; (e) all domain name and domain name registrations, web sites and web pages and related rights,
registrations, items and documentation related thereto; (f) Software; (g) rights of publicity and privacy, and moral rights, and
(h) all licenses, sublicenses, permissions, and other agreements related to the preceding property.

 

“IRS”
means the U.S. Internal Revenue Service or any successor entity.

 

“Knowledge”
means: (i) with respect to the Company, the actual present knowledge of a particular matter by either Seller or any executive officer
or director of the Company or any of its Subsidiaries, and the knowledge that any such Person would reasonably be expected to have
if diligently performing their duties on behalf of the Lighthouse Companies; (ii) with respect to any Seller shall mean the actual
present knowledge of a particular matter by such Seller; and (iii) with respect to Buyer, the actual present knowledge of a particular
matter by any of the directors or executive officers of Buyer, without independent inquiry.

 

“Law”
means any federal, state, local, municipal, foreign or other law, statute, legislation, principle of common law, ordinance, code,
edict, decree, proclamation, treaty, convention, rule, regulation, directive, requirement, writ, injunction, settlement, Permit
or Order that is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect
by or under the authority of any Governmental Authority.

 

“Liabilities”
means any and all debts, liabilities and obligations of any nature whatsoever, whether accrued or fixed, absolute or contingent,
mature or unmatured or determined or determinable, including those arising under any Law, Action, Order or Contract.

 

“Lien”
means any interest (including any security interest), pledge, mortgage, lien, encumbrance, charge, claim or other right of third
parties, including any spousal interests (community or otherwise), whether created by law or in equity, including any such restriction
on the use, voting, transfer, receipt of income or other exercise of any attributes of ownership.

 

“Lighthouse
Change of Control Transaction” means the consummation of any of the following: (i) a merger, consolidation, corporation
reorganization or other business combination of the Company where upon consummation of the transaction, Buyer and its Affiliates
will collectively hold less than a majority of the voting power of the Company’s outstanding equity interests; (ii) the sale
or transfer (excluding a Lien) of all or substantially all of the assets of the Lighthouse Companies, taken as a whole, in one
transaction or a series of related transactions (other than to Buyer or an Affiliate of Buyer); or (iii) the sale or transfer (excluding
a Lien) of a majority of the voting power of the Company’s outstanding capital stock in one transaction or a series of related
transactions (other than to an Affiliate of Buyer), notwithstanding that any of the transactions described in the preceding clauses
(i), (ii) and (iii) may be permitted pursuant to Section 8.5.

 

“Lighthouse
Company” means any of the Company or its Subsidiaries.

 

    	A-6

    	 

    

 

“Material
Adverse Effect” means, with respect to any Seller Party, any event, fact, condition, change, circumstance, occurrence
or effect, which, either individually or in the aggregate with all other events, facts, conditions, changes, circumstances, occurrences
or effects, (a) has had, or would reasonably be expected to have, a material adverse effect on the business, properties, prospects,
assets, Liabilities, condition (financial or otherwise), operations, licenses or other franchises or results of operations of any
Lighthouse Company, or materially diminish the value of the Purchased Interests or (b) does or would reasonably be expected to
materially impair or delay the ability of a Seller Party to perform their respective obligations under this Agreement and the Ancillary
Documents or to consummate the transactions contemplated hereby and thereby; provided, however, that with respect
to the Lighthouse Companies, a Material Adverse Effect will not include any adverse effect or change resulting from any change,
circumstance or effect relating to (A) the economy in general, (B) securities markets, regulatory or political conditions in the
United States (including terrorism or the escalation of any war, whether declared or undeclared or other hostilities), (C) changes
in applicable Laws or GAAP or the application or interpretation thereof, (D) with respect to each Lighthouse Company, the industries
in which such Lighthouse Company primarily operates and not specifically relating to such Lighthouse Company or (E) a natural disaster
(provided, that in the cases of clauses (A) through (E), the applicable Lighthouse Company is not disproportionately affected by
such event as compared to other similar companies and businesses in similar industries and geographic regions as such Lighthouse
Company).

 

“Net Working
Capital” means an amount equal to the difference (whether positive or negative) of the Closing Current Assets, minus
the Closing Current Liabilities.

 

“Order”
means any order, writ, rule, judgment, injunction, decree, stipulation, determination or award that is or has been made, entered,
rendered or otherwise put into effect by, with or under the authority of any Governmental Authority.

 

“OFAC”
means the Office of Foreign Assets Control of the U.S. Treasury Department.

 

“Ordinary
Course of Business” means, with respect to a Person, an action taken by such Person if (a) such action is recurring
in nature, is consistent with the past practices of the Person and is taken in the ordinary course of the normal day-to-day operations
of the Person; (b) such action is not required to be authorized by the equity holders of such Person, the board of directors (or
equivalent) of such Person or any committee of the board of directors (or equivalent) of such Person and does not require any other
special authorization of any nature; and (c) such action is taken in accordance with sound and prudent business practice. Unless
the context or language herein requires otherwise, each reference to Ordinary Course of Business will be deemed to be a reference
to Ordinary Course of Business of a Lighthouse Company.

 

“Patents”
means all patents, patent applications and the inventions, designs and improvements described and claimed therein, patentable inventions,
and other patent rights (including any divisionals, continuations, continuations-in-part, substitutions, or reissues thereof, whether
or not patents are issued on any such applications and whether or not any such applications are amended, modified, withdrawn, or
refiled).

 

“Permit”
means any federal, state, local, foreign or other third-party permit, grant, easement, consent, approval, authorization, exemption,
license, franchise, concession, ratification, permission, clearance, confirmation, endorsement, waiver, certification, designation,
rating, registration or qualification that is or has been issued, granted, given or otherwise made available by or under the authority
of any Governmental Authority or other Person.

 

“Permitted
Exceptions” means bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally and general principles of equity (regardless of whether enforceability is considered in a
proceeding at law or in equity).

 

“Permitted
Liens” means any (a) statutory Liens of landlords, carriers, warehousemen, mechanics and materialmen and other similar
Liens imposed by Law in the Ordinary Course of Business for sums not yet due and payable; and (b) Liens for current taxes not yet
due and payable.

 

    	A-7

    	 

    

 

“Person”
shall include any individual, trust, firm, corporation, limited liability company, partnership, Governmental Authority or other
entity or association, whether acting in an individual, fiduciary or any other capacity.

 

“Personal
Property” means all of the machinery, equipment, tools, vehicles, furniture, leasehold improvements, office equipment,
plant, spare parts, and other tangible personal property which are owned, used or leased by any Lighthouse Company and used or
useful, or intended for use, in the conduct or operations of a Lighthouse Company’s business.

 

“Principal
Market” means the principal securities exchange or securities market (including an over-the-counter bulletin board)
on which Buyer Common Stock is listed or quoted for trading at the applicable time of determination.

 

“Representative”
means, as to any Person, such Person’s Affiliates and its and their managers, directors, officers, employees, agents and
advisors (including financial advisors, counsel and accountants).

 

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

 

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

 

“Software”
means all computer software, including all source code, object code, and documentation related thereto and all software modules,
assemblers, applets, compilers, flow charts or diagrams, tools and databases.

 

“Solvent”
means, with respect to any Person, that such Person (a) owns and will own assets the fair saleable value of which are (i) greater
than the total amount of its liabilities (including contingent obligations), and (ii) greater than the amount that will be required
to pay the probable liabilities of its then existing debts as they become absolute and matured considering all financing alternatives
and potential asset sales reasonably available to it; (b) has capital that is not unreasonably small in relation to its business
as presently conducted or after giving effect to any contemplated transaction; and (c) does not intend to incur and does not believe
that it will incur debts beyond its ability to pay such debts as they become due.

 

“Staffing
Employee” means any employee of a Lighthouse Company that is staffed by a Lighthouse Company to its customers to
perform services for such customers.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, association or other business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, association
or other business entity, a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled,
directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof,
a Person or Persons will be deemed to have a majority ownership interest in a partnership, association or other business entity
if such Person or Persons will be allocated a majority of partnership, association or other business entity gains or losses or
will be or control the managing director, managing member, general partner or other managing Person of such partnership, association
or other business entity. Unless the context otherwise requires, any reference to a Subsidiary in this Agreement will mean a Subsidiary
of the Company.

 

    	A-8

    	 

    

 

“Tax”
means any federal, state, local or foreign income, gross receipts, license, payroll, parking, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental, natural resources, customs duties, capital stock, franchise, profits, withholding,
social security (or similar), payroll, unemployment, disability, real property, personal property, sales, use, transfer, registration,
value added, alternative or add-on minimum, estimated tax, or other tax of any kind whatsoever, including any interest, penalty,
or addition thereto, whether disputed or not, including such item for which Liability arises from the application of Treasury Regulation
1.1502-6, as a transferee or successor-in-interest, by contract or otherwise, and any Liability assumed or arising as a result
of being, having been, or ceasing to be a member of any Affiliated Group (as defined in Section 1504(a) of the Code) (or being
included or required to be included in any Tax Return relating thereto) or as a result of any Tax indemnity, Tax sharing, Tax allocation
or similar Contract.

 

“Tax Return”
means any return, report, information return, schedule, certificate, statement or other document (including any related or supporting
information) filed or required to be filed with a Taxing Authority in connection with any Tax, or, where none is required to be
filed with a Taxing Authority, the statement or other document issued by a Taxing Authority in connection with any Tax.

 

“Taxing Authority”
means any Governmental Authority responsible for the imposition or collection of any Tax.

 

“Trademarks”
means all trademarks, service marks, trade dress, trade names, brand names, Internet domain names, designs, logos, or corporate/company
names (including, in each case, the goodwill associated therewith), whether registered or unregistered, and all registrations and
applications for registration and renewal thereof.

 

“Trade Secrets”
means any trade secrets, confidential business information, concepts, ideas, designs, research or development information, processes,
procedures, techniques, technical information, specifications, operating and maintenance manuals, engineering drawings, methods,
know-how, data, mask works, discoveries, inventions, modifications, extensions, improvements, and other proprietary rights (whether
or not patentable or subject to copyright, trademark, or trade secret protection).

 

“Transaction
Bonuses” means the aggregate of all amounts payable as a result of the change in control of the Company or as a result
of the sale of the Purchased Interests or other similar provisions contained in any agreements binding upon a Lighthouse Company,
including all bonuses and severance payments, retention obligations for retention agreements entered into in contemplation of a
potential change of control of the Company or the sale of the Purchased Interests, termination payments to consultants or independent
contractors and any settlement of any such bonus or severance payment obligations, obligations related to terminated equity options,
or obligations related to terminated equity appreciation, phantom equity, profit participation and/or similar rights entered into
by any Lighthouse Company at or prior to the Closing, and including any Lighthouse Company’s share of any withholding Taxes
on such amounts.

 

“Transaction
Expenses” means all fees, commissions, costs and expenses incurred by or on behalf of any Seller or the Company in
connection with the negotiation, execution or performance of this Agreement or the Ancillary Documents or the consummation of the
transactions contemplated hereby or thereby (or incurred in connection with the transactions hereunder or thereunder) including
any of the foregoing payable to legal counsel, accountants, investment bankers, financial advisors, brokers, finders, or consultants.

 

    	A-9

    	 

    

 

“VWAP Price”
means, as of any date, the volume-weighted average price of Buyer Common Stock on the Principal Market for the ninety (90) day
period ending on the last trading day prior to such date. The VWAP Price will be appropriately adjusted for any stock dividend,
stock split, stock combination, recapitalization or other similar transaction during such period.

 

2.            Other
Defined Terms. The following capitalized terms, as used in the Agreement, have the respective meanings given to them in
the Section as set forth below adjacent to such terms:

 

	Term	 	Section
	AAA	 	7.4(c)
	Adjustment Amount	 	1.5(d)
	Agreement	 	Preamble
	Arbitration Rules	 	7.4(c)
	Audited Statements	 	1.5(a)
	Auditor	 	1.5(a)
	Bank Account	 	4.25
	Basket	 	7.5
	Buyer	 	Preamble
	Buyer Closing Statement	 	1.5(b)
	Buyer Indemnified Parties	 	7.2
	Buyer Material Adverse Effect	 	5.1
	Closing	 	3.1
	Closing Date	 	3.1
	Company	 	Preamble
	Employment Agreements	 	3.2(g)
	Estimated Closing Statement	 	1.4
	Estimated Purchase Price	 	1.4
	Final Statement	 	1.5(d)
	Final Statement Date	 	1.5(d)
	Financial Statements	 	4.7
	Indemnification Cap	 	7.5
	Indemnitee	 	7.4(a)
	Indemnitor	 	7.4(a)
	IP Licenses	 	4.13(a)
	Leased Premises	 	4.12
	Leases	 	4.12
	Loss	 	7.2
	Maximum Number of Securities	 	6.8(a)
	Non-Competition Agreement	 	3.2(f)

	Term	 	Section
	Notes	 	1.3(c)
	Permitted Transfer	 	6.7
	Personal Property Leases	 	4.11
	Piggy-Back Registration	 	6.8(a)
	Prohibited Transfer	 	6.7
	Purchase Price	 	1.2
	Purchased Interests	 	1.1
	Receivables Statement	 	1.6(b)
	Registered IP	 	4.13(a)
	Registration Damages	 	6.8(a)
	Related Person	 	4.23
	Rule 144	 	6.8(e)
	Section 409A Plan	 	4.20(f)
	Seller Indemnified Parties	 	7.3
	Seller Parties	 	Preamble
	Seller Representative	 	8.14(a)
	Sellers	 	Preamble
	Selling Expenses	 	6.8(a)
	Shares	 	1.3(b)
	Survival Date	 	7.1
	Three Year Note	 	1.3(c)
	Three Year Note Quarterly Installments	 	1.5(d)
	Top Customers	 	4.26
	Top Suppliers	 	4.26
	Transfer Taxes	 	6.9(e)
	Two Year Note	 	1.3(c)
	Two Year Note Quarterly Installments	 	1.5(d)
	Unrestricted Date	 	6.7

 

    	A-10

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