Document:

Exhibit 10.1

 

 

SECOND

 

AMENDED AND RESTATED

 

AGREEMENT AND PLAN OF MERGER

 

by and among

 

DATARAM CORPORATION,

 

DATARAM ACQUISITION SUB, INC.

 

U.S. GOLD CORP.

 

AND

 

COPPER KING LLC

 

 

 

Dated as of September 14, 2016

 

    

     

    

SECOND AMENDED AND RESTATED AGREEMENT
AND PLAN OF MERGER

This Second Amended
and Restated Agreement and Plan of Merger (this “Agreement”) is entered into as of September 14, 2016, by and
among DATARAM CORPORATION, a Nevada corporation (“Parent”); DATARAM ACQUISITION SUB, INC., a Nevada corporation
and wholly-owned subsidiary of the Parent (“Buyer”); U.S. GOLD CORP., a Nevada corporation (the “Company”);
and Copper King LLC, a principal stockholder of the Company (the “Stockholder”). Parent, Buyer, Company and
the Stockholder are each a “Party” and collectively, the “Parties” to this Agreement. This
Agreement amends and restates the Agreement and Plan of Merger between the Parties dated as of June 13, 2016 (the “Original
Agreement”) and amended and restated on July 29, 2016 (the “First Amended and Restated Agreement”).

R E C I T A L S

WHEREAS, the Company is
an exploration stage company that owns certain mining leases and other mineral rights comprising the Copper King gold and copper
development project located in the Silver Crown Mining District of southeast Wyoming (the “Copper King Project”);

 

WHEREAS, on May 25, 2016,
the Company entered into a Purchase and Sale Agreement, as Amended and Restated agreement with Nevada Gold Ventures, LLC and Americas
Gold Exploration, Inc. (the “Keystone Agreement”) pursuant to which the Company will acquire certain mining
claims related to a gold development project in Eureka County, Nevada (the “Keystone Project” and, together
with the Copper King Project, the “Properties”), subject to the satisfaction of certain closing conditions as
set forth in the Keystone Agreement (the “Keystone Acquisition”);

 

WHEREAS, the Keystone Acquisition
closed on June 8, 2016;

 

WHEREAS, the Properties
contain probable reserves and all of the Company’s activities are exploratory in nature;

 

WHEREAS, the Stockholder
owns 20,000 shares of the Company’s 0% Series A Convertible Preferred Stock which are convertible into Sixty Million (60,000,000)
shares of the Company’s Common Stock;

WHEREAS, the Boards
of Directors of each of the Parent, Buyer and the Company have each approved the acquisition of the Company by the Parent through
the merger of the Company with and into the Buyer, with Company surviving such merger, upon the terms and subject to the conditions
set forth in this Agreement, whereby all of the issued and outstanding shares of the capital stock and other securities of the
Company will be converted into the right to receive the Merger Consideration (as defined herein);

WHEREAS, effective
July 11, 2016, the Parent effected a reverse split of its issued and outstanding Common Stock on a three for one basis (the “Parent
Reverse Stock Split”);

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WHEREAS, the Parties
previously amended and restated the Original Agreement in order to (i) update (y) certain capitalization changes of the Parties
and (z) certain aspects of the Merger Consideration and (ii) reflect the Parent Reverse Stock Split; and

WHEREAS, the Parties
have agreed to amend and restate the Amended and Restated Agreement in order to: (i) adjust the terms of the Escrow Agreement;
(ii) update certain aspects of Parent’s capitalization and (iii) provide for the registration of certain of the Merger Consideration
pursuant to a registration statement on Form S-4.

A G R E E M E N T

NOW, THEREFORE,
in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound the parties agree as follows:

ARTICLE
I

DEFINITIONS

For all purposes
of this Agreement, except as otherwise expressly provided,

(a)      the terms defined
in this Article I have the meanings assigned to them in this Article I and include the plural as well as the singular,

(b)      all accounting
terms not otherwise defined herein have the meanings assigned under GAAP,

(c)      all references
in this Agreement to designated “Articles,” “Sections” and other subdivisions are to the designated Articles,
Sections and other subdivisions of the body of this Agreement,

(d)      pronouns of
either gender or neuter shall include, as appropriate, the other pronoun forms, and

(e)      the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to
any particular Article, Section or other subdivision.

As used in this Agreement
and the schedules delivered pursuant to this Agreement, the following definitions shall apply:

“AAA Rules”
has the meaning set forth in Section 9.17.

“Action”
means any action, complaint, claim, charge, petition, investigation, suit or other proceeding, whether civil or criminal, in law
or in equity, or before any mediator, arbitrator or Governmental Entity.

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

“Agreement”
means this Agreement and Plan of Merger, as amended or supplemented, together with all exhibits and schedules attached or incorporated
by reference.

“Approval”
means any approval, authorization, consent, qualification or registration, or any waiver of any of the foregoing, required to be
obtained from, or any notice, statement or other communication required to be filed with or delivered to, any Governmental Entity
or any other Person.

“Articles
of Merger” has the meaning set forth in Section 2.2.

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

“Buyer”
has the meaning set forth in the preamble to this Agreement.

“Certificates”
has the meaning set forth in Section 2.7.

“Claim”
has the meaning set forth in Section 8.3.

“Claim Notice”
has the meaning set forth in Section 8.3.

“Closing”
has the meaning set forth in Section 2.12.

“Closing
Date” means the date of the Closing as set forth in Section 2.12.

“Common Consideration”
has the meaning set forth in Section 2.5.

“Common Share”
and “Common Shares” have the meanings set forth in in Section 2.5.

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

“Company”
has the meaning set forth in the preamble to this Agreement.

“Conditions
Precedent” has the meaning set forth in Section 6.5

“Contract”
means any agreement, contract, arrangement, bond, loan commitment, franchise, indemnity, indenture, instrument, lease, license
or understanding, whether or not in writing.

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

“Encumbrance”
means any claim, charge, easement, encumbrance, lease, covenant, security interest, lien, option, pledge, rights of others, or
restriction (whether on voting, sale, transfer, disposition or otherwise), whether imposed by agreement, understanding, law, equity
or otherwise, except for any restrictions on transfer generally arising under any applicable federal or state securities law.

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“Environmental
Law” shall mean any Law which relates to or otherwise imposes liability or standards of conduct concerning discharges,
emissions, releases or threatened releases of noises, pathogens, odors, pollutants, or contaminants or hazardous or toxic wastes,
substances or materials, whether as matter or energy, into air (whether indoors or out), water (whether surface or underground)
or land (including any subsurface strata), or otherwise relating to their manufacture, processing, generation, distribution, use,
treatment, storage, disposal, cleanup, transport or handling, including the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Resource Conservation
and Recovery Act of 1976, as amended, the Toxic Substances Control Act of 1976, as amended, the Federal Water Pollution Control
Act Amendments of 1972, the Clean Water Act of 1977, as amended, the National Environmental Policy Act of 1969, and any state provision
analogous to any of the foregoing.

“Escrow Agent”
means a mutually agreed to third party that is in the business of providing the escrow services similar to the services required
herein.

“Escrow Agreement”
has the meaning set forth in Section 2.10.

“Escrow Period”
has the meaning set forth in Section 2.10.

“Escrow Shares”
has the meaning set forth in Section 2.10.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

“GAAP”
means generally accepted accounting principles in the United States, as in effect from time to time.

“General
Mining Law” means the General Mining Law of 1872, as amended.

“Governmental
Entity” means any government or any agency, bureau, board, commission, court, department, official, political subdivision,
tribunal or other instrumentality of any government, whether federal, state or local, domestic or foreign.

“Hazardous
Substance” means any material, substance, form of energy or pathogen which (a) constitutes a “hazardous substance”,
“toxic substance” or “pollutant”, “contaminant”, “hazardous material”, “hazardous
chemical”, “regulated substance”, or “hazardous waste” (as such terms are defined by or pursuant
to any Environmental Law) or (b) is otherwise regulated or controlled by, or gives rise to liability under, any environmental law.

“Indemnified
Party” has the meaning set forth in Section 8.3.

“Indemnifying
Party” has the meaning set forth in Section 8.3.

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“Intellectual
Property” means all of the following in any jurisdiction throughout the world: (a) all inventions (whether patentable
or unpatentable and whether or not reduced to practice), all improvements thereto, and all U.S. and foreign patents, patent applications,
and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations
thereof, (b) all trademarks, service marks, brand names, certification marks, trade dress, logos, trade names, domain names, assumed
names and corporate names, together with all translations, adaptations, derivations, and combinations thereof and including all
goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications,
registrations, and renewals in connection therewith, (e) all trade secrets and confidential information (including ideas, research
and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs,
drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals),
(f) all computer software (including source code, object code, diagrams, data and related documentation), (g) all other proprietary
rights, (h) all copies and tangible embodiments of the foregoing (in whatever form or medium), (i) licenses, immunities, covenants
not to sue and the like relating to the foregoing, and (j) any claims or causes of action arising out of or related to any infringement
or misappropriation of any of the foregoing.

“Knowledge”
or “Known” shall mean the actual knowledge (without investigation) of the Stockholder, the Company, the Parent
or the Buyer, as the case may be.

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

“Loss”
means any action, cost, damage, disbursement, expense, liability, loss, deficiency, diminution in value, obligation, penalty or
settlement of any kind or nature, whether foreseeable or unforeseeable, including but not limited to, interest or other carrying
costs, penalties, legal, accounting and other professional fees and expenses incurred in the investigation, collection, prosecution
and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by the specified
Person.

“Material
Adverse Effect” means, with respect to any Person, (i) a material adverse effect on the condition (financial or
otherwise), business, prospects, assets, liabilities, or results of operations of such Person; or (ii) a material adverse effect
on the ability of such Person to consummate the transactions contemplated by this Agreement.

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

“Merger Consideration”
has the meaning set forth in Section 2.5.

“NRS”
means the Nevada Revised Statutes.

“Non-Escrow
Shares” has the meaning set forth in Section 2.10.

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

“Parent”
has the meaning set forth in the preamble to this Agreement.

“Parent Indemnified
Party” has the meaning set forth in Section 8.1.

“Parent Indemnifying
Party” has the meaning set forth in Section 8.2.

“Parent Shares”
shall mean shares of Common Stock and all shares of Parent Series C Convertible Stock, par value $0.001 per share, delivered to
the stockholders of the Company as part of the Merger Consideration.

“Parent Series
C Certificate of Designation” has the meaning set forth in Section 2.5.

“Parent Series
C Preferred Stock” means the 0% Series C Convertible Preferred Stock, par value $0.001 per share, of the Parent as shall
be set forth in a certificate of designation filed by the Company with the Secretary of State of the State of Nevada on or prior
to the Effective Date, substantially in the form of Exhibit A annexed hereto.

“Person”
means an association, a corporation, an individual, a partnership, a limited liability company, a trust or any other entity or
organization, including a Governmental Entity.

“Pre-Closing
Tax Returns” has the meaning set forth in Section 7.2.

“Preferred
Consideration” has the meaning set forth in in Section 2.5.

“Preferred
Escrow Shares” has the meaning set forth in Section 2.7.

“Preferred
Share” and “Preferred Shares” have the meanings set forth in in Section 2.5.

“Regulation
D” has the meaning set forth in Section 3.6.

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

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

“Series A
Preferred Stock” means the 0% Series A Convertible Preferred Stock, par value $0.0001 per share, of the Company.

“Series B
Preferred Stock” means the 0% Series B Convertible Preferred Stock, par value $0.0001 per share, of the Company.

“Series C
Preferred Stock” means the 0% Series C Convertible Preferred Stock, par value $0.0001 per share, of the Company.

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“Share”
and “Shares” has the meaning set forth in Section 2.5 and includes all options, warrants or other securities
convertible into Shares.

“Stockholder”
has the meaning set forth in the preamble to this Agreement.

“Stockholder
Indemnified Party” has the meaning set forth in Section 8.2.

“Stockholder
Indemnifying Party” has the meaning set forth in Section 8.1.

“Straddle
Period” has the meaning set forth in Section 7.3.

“Surviving
Entity” has the meaning set forth in Section 2.1.

“Tax”
(and, with correlative meaning, “Taxes”) means: (i) any federal, state, local or foreign net income,
gross income, gross receipts, windfall profit, severance, property, production, sales, use, license, excise, franchise, escheat,
employment, payroll, withholding, alternative or add-on minimum, ad valorem, value added, transfer, stamp, or environmental tax,
or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest
or penalty, addition to tax or additional amount imposed by any governmental authority; and (ii) any liability of the Company
for the payment of amounts with respect to payments of a type described in clause (i) as a result of being a member of an affiliated,
consolidated, combined or unitary group, or as a result of any obligation of the Company under any Tax Sharing Arrangement or Tax
Indemnity Agreement.

“Tax Claim”
has the meaning set forth in Section 7.6.

“Tax Indemnity
Agreement” means any written or unwritten agreement or arrangement pursuant to which the Company may be required to indemnify
or reimburse another party for any liability relating to Taxes.

“Tax Period”
has the meaning set forth in Section 3.7

“Tax Return”
means any return, report or similar statement required to be filed with respect to any Tax (including any attached schedules),
including any information return, claim for refund, amended return or declaration of estimated Tax.

“Tax Sharing
Arrangement” means any written or unwritten agreement or arrangement for the allocation or payment of Tax liabilities
or payment for Tax benefits with respect to a consolidated, combined or unitary Tax Return which includes the Company.

“Threshold”
has the meaning set forth in Section 8.1(c).

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ARTICLE
II

THE MERGER

2.1      The
Merger. At the Effective Time and upon the terms and subject to the conditions of this Agreement, including the satisfaction
of the Conditions Precedent set forth in Section 6.5 herein, and in accordance with the Chapter 92A of the NRS, the Company
shall be merged with and into Buyer (the “Merger”). Following the Merger, (i) the Company shall continue as
the surviving entity (the “Surviving Entity”) and wholly owned subsidiary of Parent incorporated and domiciled
in the State of Nevada and (ii) the separate corporate existence of the Buyer shall cease. Parent, as the sole owner of Buyer,
hereby approves the Merger and this Agreement.

2.2      Effective
Time. Subject to the terms and conditions set forth in this Agreement, on the Closing Date, Articles of Merger, substantially
in the form of Exhibit B annexed hereto (the “Articles of Merger”) shall be duly executed
and acknowledged by Buyer and the Company and thereafter delivered to the Secretary of State of Nevada for filing. The Merger
shall become effective at such time as a properly executed copy of the Articles of Merger are duly filed with the Secretary of
State of Nevada, or such later time as Parent and the Stockholder may agree upon and as set forth in the Articles of Merger (the
time the Merger becomes effective being referred to herein as the “Effective Time”).

2.3      Effects
of the Merger. The Merger shall have the effects set forth in the NRS. Without limiting the generality of the foregoing
and subject thereto, at the Effective Time, all the properties, rights, privileges, powers and franchises of the Company and Buyer
shall vest in the Surviving Entity, and all debts, liabilities and obligations of the Company and Buyer shall become the debts,
liabilities and obligations of the Surviving Entity. At the Effective Time, the Surviving Entity shall be incorporated and domiciled
in the State of Nevada. The parties agree to cooperate and deliver any further documentation and information as may be required
by the Secretary of State of the State of Nevada to cause the Surviving Entity to be domiciled in the State of Nevada at the Effective
Time or as soon as thereafter practicable.

2.4      Articles
of Incorporation, Bylaws and Directors and Officers. The articles of incorporation of the Buyer shall, without further
action, be terminated, and the articles of incorporation and bylaws of the Company in effect at the Effective Time shall be the
articles of incorporation and bylaws of the Surviving Entity until amended in accordance with applicable Law. The officers and
directors of the Company and the Buyer in office immediately prior to the Effective Time shall be the officers and directors of
the Surviving Entity effective as of the Effective Time, as set forth on Schedule 2.4 hereto.

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2.5      Conversion
of Shares. At the Effective Time, by virtue of the Merger (and without any action on the part of Buyer or the Company)
the shares of common stock, par value $0.0001 per share of the Company (each, a “Common Share” and, collectively,
the “Common Shares”) and the outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series
C Preferred Stock of the Company (each a “Preferred Share” and, collectively, the “Preferred
Shares” and, together with the Common Shares, the “Shares”) issued and outstanding immediately prior
to the Effective Time shall, collectively, be converted into the right to receive the Common Consideration, or, at the election
of any holder of Shares, the Preferred Consideration. The “Common Consideration” is the aggregate consideration
consisting of shares of Common Stock. The “Preferred Consideration” is the aggregate consideration consisting
of Parent Series C Preferred Stock, the terms of which are set forth in a certificate of designation to be filed by the Parent
with the Secretary of State of the State of Nevada substantially in the form of Exhibit A, annexed hereto (the “Parent
Series C Certificate of Designation”). The Preferred Consideration, together with the Common Consideration, shall
hereinafter be referred to as the “Company Stockholder Consideration” and, together with the Management Consideration
(as defined below), the “Merger Consideration”). The Company Stockholder Consideration shall be allocated as
follows and is being presented in terms of Common Stock on an “as converted” basis but may be issued in the form of
Parent Series C Preferred Stock pursuant to this Section 2.5:

(a)       Holders
of Common Shares of the Company not addressed in 2.5(b)-(f) below shall exchange their respective Common Shares for the Management
Consideration set forth in Section 2.6 below;

(b)       Twenty
Two Million Three Hundred and Thirty Three Thousand Three Hundred and Thirty Four (22,333,334) shares of Common Stock shall be
issued to the holders of Series A Preferred Stock;

(c)       One
Million Eight Hundred Sixty Six Thousand Seven Hundred and Seventeen (1,866,717) shares of Common Stock shall be issued to the
holders of Series B Preferred Stock the receipt of which shall be conditioned on the receipt of a one year lockup agreement (the
“One Year Lockup Agreement”) from each holder of Series B Preferred Stock, the form of which is attached hereto
as Exhibit C;

(d)       Up
to Eighteen Million One Hundred Eighty One Thousand Eight Hundred and Seventeen (18,181,817) shares of Common Stock shall be issued
to holders (the “Company Laidlaw Investors”) of Series C Preferred Stock issued in connection with the Company’s
private placement of up to Twelve Million ($12,000,000) Dollars (inclusive of Laidlaw’s over-allotment opt ion) of the Company’s
securities (the “Company Financing”) pursuant to which Laidlaw & Company (UK), Ltd. (“Laidlaw”)
served as placement agent, based on a 3:1 ratio with each three Common Shares underlying such shares of Series C Preferred Stock
of the Company held by a Company Laidlaw Investor entitled to receive one share of Common Stock. For the avoidance of doubt, less
than 18,181,817 shares of Common Stock may be issued to the Company Laidlaw Investors pursuant to this section (i) in the event
less than $12,000,000 is raised in the Company Financing, and (ii) depending upon the final per share pricing in the Company Financing.
The parties agree that the ultimate per share price for the Company Financing must be mutually agreed to by the Boards of Directors
of the Parent and the Company;

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(e)       Laidlaw
shall be issued warrants (the “Laidlaw Warrants”) to purchase shares of Common Stock, in such form and with
such terms and pricing as shall be mutually agreed upon between the Company and Parent prior to Closing. The number of shares of
Common Stock into which the Laidlaw Warrants to be issued will be exercisable shall equal the quotient of (i) 10% of the total
dollar amount raised in the Company Financing divided by (ii) three (3); and

(f)       One
Million Eight Hundred and Fifty Thousand (1,850,000) shares of Common Stock shall be issued to the holders of Common Shares of
the Company issued in connection with the closing of the Keystone Acquisition (each, a “Keystone Holder”) the
receipt of which shall be conditioned on the receipt of a Two Year Lockup Agreement (as defined below) from each Keystone Holder.

The Company Stockholder Consideration,
in the aggregate and on an “as converted” basis, shall not exceed Forty Four Million, Two Hundred and Thirty One Thousand
Eight Hundred Sixty Eight (44,231,868) shares of Common Stock and Laidlaw Warrants to purchase up to Four Hundred Thousand (400,000)
shares of Common Stock.

 

2.6      Management
Consideration. At the Effective Time, the officers and consultants of the Company set forth on Schedule 2.6,
hereto, shall be issued One Million Six Hundred and Ten Thousand (1,610,000) shares of Common Stock, in such amounts as are set
forth on Schedule 2.6 (the “Management Shares”) pursuant to Parent’s Equity Incentive Plan.
The issuance of the Management Shares shall be subject to the execution by such officer or consultant of a two year lockup agreement,
the form of which is attached hereto as Exhibit D (the “Two Year Lockup Agreement”).

 

2.7      Exchange
of Shares for Merger Consideration. At the Effective Time, the
Shares issued and outstanding immediately prior to the Effective Time shall no longer be outstanding and shall automatically be
cancelled and retired and shall cease to exist, and each certificate previously evidencing any such Shares (the “Certificates”)
shall thereafter represent the right to receive only the Merger Consideration.

2.8      Buyer
Common Stock. Each share of Buyer common stock, par value $0.001 per share, held by Parent immediately prior to the Effective
Time shall, by virtue of the Merger and without any action on the part of the Parent, be converted into the right to receive one
(1) share of common stock of the Surviving Entity.

2.9      Delivery
of Certificates 

(a)       Delivery.
At the Closing, the Parent shall deliver the Merger Consideration pursuant to Section 2.5 and Section 2.6. Upon delivery
of the Merger Consideration, any certificates or book entry records of the Shares shall forthwith be cancelled.

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(b)       No
Further Transfers. The Merger Consideration paid upon the cancellation of Shares in accordance with the terms hereof shall
be deemed to have been paid in full satisfaction of all rights pertaining to such Shares. From and after the Effective Time, there
shall be no further registration of transfers on the transfer books of the Surviving Entity of the Shares that were outstanding
immediately prior to the Effective Time.

(c)       Certificates.
If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming
such Certificate to be lost, stolen or destroyed and, if required by Parent, the posting by such person of a bond in such reasonable
amount as Parent may direct as indemnity against any claim that may be made against it with respect to such Certificate, Parent
shall deliver in exchange for such lost, stolen or destroyed Certificate the applicable Merger Consideration with respect thereto.

2.10      Escrow.
 At the Effective Time, in accordance with the terms of an escrow agreement (the “Escrow
Agreement”), substantially in the form of Exhibit E annexed hereto, Parent shall deliver (i) to the Escrow Agent,
Merger Consideration consisting of ten percent (10%) of the total number of shares of capital
stock of the Company constituting the Company Stockholder Consideration, which shall be deposited into escrow from the Company
Stockholder Consideration issuable to the Stockholder in shares of Parent Series C Preferred Stock (the “Escrow Shares”);
and (ii) to the stockholders of the Company, the remaining Merger Consideration (the “Non-Escrow Shares”). The Escrow
Shares shall be available to secure any claims that may arise with respect to the representations, warranties, covenants or indemnification
obligations of the Stockholder and the Company pursuant to this Agreement during the escrow period (“Escrow Period”)
of twelve (12) months following the Closing Date as well as against the failure by the Company to deliver, during the Escrow Period
a new preliminary economic report of the Copper King Project (the “New Report”) in which case the Escrow Shares shall
serve to reimburse the Parent, by the forfeiture of such shares, in accordance with the valuation of such Escrow Shares set forth
in the Escrow Agreement in such aggregate amount as shall be determined by the parties. In no event shall the indemnification
obligations of the Stockholder under this Agreement exceed the Escrow Shares. The Escrow Shares shall not be available for sale,
transfer or other disposition by the Stockholder during the Escrow Period.

2.11      The
Closing. Upon the terms and subject to the conditions of this Agreement, the transactions contemplated by this Agreement
shall take place at a closing (the “Closing”) to be held at the offices of Sichenzia Ross Friedman Ference
LLP, at such other place or at such other time or on such other date as the Stockholder, the Company, Buyer and Parent may mutually
agree upon in writing, provided that all conditions to closing have been satisfied and closing deliveries required of the parties
in this Article II have been delivered (the day on which the Closing takes place being the “Closing Date”).
The Closing may, with the consent of all parties, take place by delivering an exchange of documents by facsimile transmission
or electronic mail with originals to follow by overnight mail service courier.

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2.12      Closing
Deliveries by the Stockholder and the Company. At the Closing, against delivery of, among other things, the Merger Consideration,
the Stockholder shall deliver or cause to be delivered to Parent:

(a)       the
Certificates, if such Shares were issued in certificated form, in accordance with Section 2.9;

(b)       Accredited
Investor Questionnaires from all holders of Shares;

(c)       All
minute books, seals and other records of the Company provided that such minute books, seals and other records shall not be required
to be received by Parent prior to the Closing;

(d)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada and the State of Wyoming dated not more than five (5)
business days prior to the Closing Date, attesting to the incorporation and foreign qualification, respectively, and good standing
of the Company as a corporation in its jurisdiction of incorporation and foreign corporation qualified to do business, and to the
payment of all state taxes due and owing thereby;

(e)       Copies,
certified by the Secretary of State of Nevada, of the Articles of Incorporation of the Company, and all amendments thereto;

(f)       Copies,
certified by the Secretary or Assistant Secretary of the Company as of the Closing Date, of the bylaws of the Company, and all
amendments thereto;  

(g)       a
copy, certified as of the Closing Date by the Secretary or Assistant Secretary of Company, of the resolutions of the Board of Directors
of the Company authorizing the Company’s execution, delivery and performance of this Agreement, the consummation of the transactions
contemplated herein, and the taking of all such other corporate action as shall have been required as a condition to, or in connection
with the consummation of the contemplated transactions;

(h)       the
Escrow Agreement, duly executed by the Company and the Stockholder;

(i)       the
Articles of Merger duly executed by the Company; and

2.13      Closing
Deliveries by Parent and Buyer. At the Closing, against delivery of, among other things, the Certificates, Buyer
and Parent shall deliver to the applicable holder of Shares:

(a)       the
Non-Escrow Shares;

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(b)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada dated not more than five (5) business days prior to
the Closing Date, attesting to the incorporation and good standing of Parent as a corporation in its jurisdiction of incorporation,
and to the payment of all state taxes due and owing thereby;

(c)       Copies,
certified by the Secretary of State of Nevada of the Articles of Incorporation of the Parent, and all amendments thereto;

(d)       a
copy, certified as of the Closing Date by the Secretary or Assistant Secretary of Parent, of the bylaws of Parent and all amendments
thereto and resolutions of the Board of Directors of Parent authorizing Parent’s execution, delivery and performance of this
Agreement, the consummation of the transactions contemplated herein, and the taking of all such other corporate action as shall
have been required as a condition to, or in connection with the consummation of the contemplated transactions;

(e)       Certificates
of the Secretary of State and the taxing authorities of the State of Nevada dated not more than five (5) business days prior to
the Closing Date, attesting to the incorporation and good standing of Buyer as a corporation in its jurisdiction of incorporation,
and to the payment of all state taxes due and owing thereby;

(f)       Copies,
certified by the Secretary of State of Nevada of the Articles of Incorporation of Buyer, and all amendments thereto;

(g)       copy,
certified as of the Closing Date by the Secretary or Assistant Secretary of Buyer, of the bylaws of Buyer and all amendments thereto
and resolutions of the Board of Directors of Buyer authorizing Buyer’s execution, delivery and performance of this Agreement,
the consummation of the transactions contemplated herein, and the taking of all such other corporate action as shall have been
required as a condition to, or in connection with the consummation of the contemplated transactions;

(h)       the
Escrow Agreement, duly executed by the Parent and Buyer, as applicable;

(i)       the
Articles of Merger duly executed by the Parent and Buyer, as applicable;

(j)       all
approvals required for issuance of the Merger Consideration shall have been obtained including approval of the Parent’s stockholders
of this Agreement, the consummation of the Merger and the issuance of the Merger Consideration pursuant to NASDAQ Listing Rule
5635 and the approval of the Listing of the Additional Shares Application by The NASDAQ Stock Market relating to the listing and
issuance of the Common Consideration and the Management Consideration and the shares of Common Stock issuable upon conversion of
the Preferred Consideration (the “Shareholder and NASDAQ Approvals”); and

 

    -13- 

     

    

 

(k)       evidence of the
resignation of two members from the Board of Directors of the Parent to be determined by the Parent, the Company and the Stockholder
and the evidence of appointment of three (3) designees of the Company to the Board of Directors of the Parent, to be effective
on the eleventh day following the date on which the Parent meets its information obligations under the Exchange Act, including
the filing and mailing of a Schedule 14f-1 related to the foregoing (the “Schedule 14f-1”).

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER 

AND THE COMPANY

The Stockholder and
the Company hereby each represent and warrant as of the Closing Date to Buyer and Parent as follows:

3.1       Organization
and Qualification of the Company.

(a)       The Company is
a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.

(b)       The Company has
all necessary corporate power and authority over the assets now owned by it. The Company is licensed or qualified to do business
in the State of Wyoming. The Stockholder has delivered to Buyer complete and correct copies of the charter and bylaws of the Company
as in effect as of the Closing Date.

3.2       Capitalization.

(a)       The authorized
capital stock of the Company consists of 200,000,000 shares of common stock and 50,000,000 shares of preferred stock. As of the
date hereof, (i) 10,300,000 shares of Common Stock are issued and outstanding, (ii) 23,000 shares of preferred stock are designated
as Series A Preferred Stock, convertible into an aggregate of 69,000,276 shares of common stock, and 22,334 shares of Series A
Preferred Stock are issued and outstanding convertible into 67,002,268 shares of common stock, (iii) 600,000 shares of preferred
stock are designated as Series B Preferred Stock, convertible into an aggregate of 30,000,000 shares of common stock, 560,015 of
which are issued and outstanding and convertible into 28,000,750 shares of common stock and (iv) 5,000,000 shares of preferred
stock are designated as Series C Preferred Stock, convertible into an aggregate of 50,000,000 shares of common stock, none of which
are outstanding as of the date hereof.

(b)       Except as set
forth in Section 3.2(a), there are no shares of capital stock of the Company issued and outstanding. All of the Shares have
been duly authorized and validly issued and are fully paid and non-assessable. None of the Shares were issued in violation of any
preemptive rights or are subject to any preemptive rights of any Person. All of the Shares have been issued and granted in all
material respects in compliance with applicable securities Laws and other requirements of Law. No legend or other reference to
any Encumbrance appears upon any certificate representing the Shares, except for customary legends with respect to transfer restrictions
for restricted securities under federal and state securities Laws. The holders of all capital stock of the Company are set forth
on Section 3.2(a).

    -14- 

     

    

 

(c)       Except as set
forth in Section 3.2(a), there are no outstanding options, warrants, agreements, conversion rights, preemptive rights or
other rights to subscribe for or purchase from the stockholders of the Company or the Company or any contracts or commitments providing
for the issuance of, or the granting of rights to acquire, (i) any capital stock or other ownership interests of the Company,
including, but not limited to the Shares; or (ii) any securities convertible into or exchangeable for any such capital stock
or other ownership interests. There are no outstanding contractual obligations of any of the stockholders of the Company or the
Company to transfer, issue, repurchase, redeem or otherwise acquire any outstanding shares of capital stock or other ownership
interests of the Company, including, but not limited to the Shares. The Company neither owns nor has any contract, agreement or
understanding to acquire, any equity securities or other securities of any Person or any direct or indirect equity or ownership
interest in any other business.

3.3       Stock
Ownership by Stockholder. The Stockholder has good title to, and is the sole record and beneficial owners of, 20,000 shares
of Series A Preferred Stock and the shares of Series A Preferred Stock owned by the Stockholder are free and clear of any and
all Encumbrances. The Stockholder is not a party to any voting trusts, stockholders agreements, proxies or other agreements or
understandings in effect with respect to the voting or transfer of any of the shares of Series A Preferred Stock owned by the
Stockholder other than such which will terminate upon the consummation of the transactions contemplated by this Agreement.

3.4      
Authorization; Enforceability. The execution, delivery and performance of this Agreement by the Stockholder and the
Company and the consummation by the Stockholder and the Company of the transactions contemplated hereby have been duly authorized
by all requisite corporate action on the part of the Stockholder and the Company, respectively. This Agreement has been duly executed
and delivered by the Stockholder and the Company, and assuming due authorization, execution and delivery by Buyer and Parent,
this Agreement constitutes a valid and binding obligation of the Stockholder and the Company enforceable against the Stockholder
and the Company in accordance with its terms, except to the extent that the enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar Laws, or by equitable principles relating to the rights of creditors generally.

3.5      
No Conflict; Governmental Consents. The execution, delivery and performance of this Agreement by the Stockholder and
the Company do not and will not (i) violate, conflict with or result in the breach of any provision of the charter, articles of
organization, bylaws or operating agreement of the Company or the Stockholder, as applicable, (ii) conflict with or violate in
any material respect any Law or Order applicable to the Stockholder or, to the Knowledge of the Stockholder, the Company, or (iii)
conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both,
would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration,
suspension, revocation or cancellation of, or result in the creation of any Encumbrance on any of the shares of Series A Preferred
Stock owned by the Stockholder or on any of the other assets or properties of the Stockholder pursuant to, any note, bond, mortgage,
indenture, license, permit, lease, sublease or other Contract to which the Stockholder is a party or by which any of the shares
of Series A Preferred Stock owned by the Stockholder or any of such other assets or properties is bound or affected, except as
would not reasonably be expected to result in a Material Adverse Effect on the Stockholder. The execution, delivery and performance
of this Agreement by the Stockholder and, to the Knowledge of the Stockholder, the Company, do not and will not require any Approval
or Order of any Governmental Entity.

    -15- 

     

    

 

3.6       Additional
Stockholder Representations. (a) The Stockholder
represents that it is an “accredited investor” as such term is defined in Rule 501 of Regulation D (“Regulation
D”) promulgated under the Securities Act and that the Stockholder is able to bear the economic
risk of an investment in the Parent Shares. The Stockholder hereby acknowledges and represents that (i) such Stockholder has knowledge
and experience in business and financial matters, prior investment experience, including investment in securities that are non-listed,
unregistered and/or not traded on a national securities exchange or the Stockholder has employed the services of a “purchaser
representative” (as defined in Rule 501 of Regulation D), attorney and/or accountant to read all of the documents furnished
or made available by the Parent to the Stockholder to evaluate the merits and risks of such an investment on the Stockholder’s
behalf; (ii) the Stockholder recognizes the highly speculative nature of this investment; and (iii) the Stockholder is able to
bear the economic risk that the Stockholder hereby assumes. 

(b)       The Stockholder understands
that the Parent Shares have not been registered under the Securities Act by reason of a claimed exemption under the provisions
of the Securities Act that depends, in part, upon such Stockholder’s investment intention. In connection with the foregoing,
the Stockholder hereby represents that the Stockholder is purchasing the Parent Shares for the Stockholder’s own account
for investment and not with a view toward the resale or distribution to others. The Stockholder, if an entity, further represents
that it was not formed for the purpose of purchasing the Parent Shares. The Stockholder understands and hereby acknowledges that
the Company is under no obligation to register any of the Parent Shares under the Securities Act or any state securities or “blue
sky” laws.

(c)
      The Stockholder and the Company on behalf of each other stockholder of the Company, consents to the placement of a legend on any
certificate or other document evidencing the Parent Shares that such Parent Shares have not been registered under the Securities
Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability
and sale thereof contained in this Agreement. The Stockholder and the Company are aware that the Parent will make a notation in
its appropriate records with respect to the restrictions on the transferability of such Parent Shares. The legend to be placed
on each certificate shall be in form substantially similar to the following:

 

“[NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER
(IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES

    -16- 

     

    

 

3.7       Taxes.
During the period beginning on the date of inception through and including the Closing Date (such period, the “Tax
Period”):

(a)       All Tax Returns
required to be filed by or with respect to the Company in respect of the Tax Period have been timely filed, and, to the Knowledge
of the Stockholder, all such Tax Returns are complete and correct in all material respects. The Company has paid (or there has
been paid on its behalf) all Taxes, whether shown on any Tax Returns, that are due from or with respect to it for the periods covered
by such Tax Returns and have made all required estimated payments of Tax sufficient to avoid any penalties for underpayment.

(b)       To the Knowledge
of the Stockholder, no claim has been made, in respect to the Tax Period, by an authority in a jurisdiction where the Company does
not file a Tax Return that the Company may be subject to taxation in that jurisdiction and no basis exists for any such claim.
There is no proposed assessment and no audit, examination, suit, investigation or similar proceeding pending or to the Knowledge
of the Stockholder, proposed or threatened with respect to Taxes of the Company for the Tax Period and, to the Knowledge of the
Stockholder, no basis exists therefor.

3.8       Litigation;
Compliance with Laws. 

(a)       To the Knowledge
of the Stockholder, there is no Action pending or threatened against or affecting any of the Company or its respective assets.

(b)       Neither the Stockholder
nor the Company are (i)  in violation of any applicable Law or (ii)  subject to or in default with respect to any Order
to which any of them, or any of their respective properties or assets (owned or used), is subject. To the Knowledge of the Stockholder,
the Company, since inception, has been in compliance with each Law that is or was applicable to it or use of any of its assets,
except as would not reasonably be expected to result in a Material Adverse Effect on the Company.

(c)       Neither the Stockholder
nor, to the Knowledge of the Stockholder, the Company, has received either in its own capacity or as a representative of the Company,
since inception, any notice or other communication (whether oral or written) from any Governmental Entity or any other Person regarding
(i) any actual, alleged, possible, or potential violation of, or failure to comply with, any Law or (ii) any actual,
alleged, possible, or potential obligation on the part of the Company to undertake, or to bear all or any portion of the cost of,
any remedial action of any nature, except as would not reasonably be expected to result in a Material Adverse Effect on the Company.

3.9       No
Brokers or Finders. No agent, broker, finder, or investment or commercial banker, or other Person or firm engaged by or
acting on behalf of the Stockholder, the Company, or any of their respective Affiliates, in connection with the negotiation, execution
or performance of this Agreement or the transactions contemplated by this Agreement, is or will be entitled to any brokerage or
finder’s or similar fee or other commission as a result of this Agreement or such transactions.

    -17- 

     

    

3.10       Mining
Law Compliance. To the Knowledge of the Stockholder, the Company (and its subsidiaries) is compliant with applicable state
and federal mining statutes, including the General Mining Law of 1872, as amended, the Nevada Revised Statutes and the Wyoming
Statutes. The Company represents and warrants that: (1) the unpatented mining claims which are a part of the Properties have been
located and appropriate record made thereof in compliance with the laws of the United States and the laws of the State of Nevada,
(2) the claim maintenance fees have been paid for the year beginning on September 1 prior to the effective date of this Agreement
and appropriate record made thereof; (3) there is no claim of adverse mineral rights affecting the Properties, (4) subject to
the paramount interest of the United States, the Company controls the full undivided possessory title to the unpatented mining
claims which are a part of the Properties, and (5) the Company’s possessory right to the unpatented mining claims which
are a part of the Properties is free and clear of all liens and encumbrances.

3.11       Intellectual
Property Rights. To the Knowledge of the Stockholder, the Company does not own or have the
rights to any Intellectual Property.

3.12       Environmental Matters. 

(a)       To the Company’s
Knowledge, the Company is operating the Properties in material compliance with all applicable Environmental Laws;

(b)       The Company has
not, and, to Company’s Knowledge, no other person has, used, stored, disposed of, released or managed (whether by act or
omission) any Hazardous Substances in a manner that could reasonably be expected to result in the owner or operator of the Properties
incurring any material liability or expense;

(c)      The Company has
not received any written notice from any governmental body that the Company is in violation of any Environmental Law in connection
with its operation of the Properties; and

(d)       The Company is
not subject to any pending or, to the Company’s Knowledge, threatened Action in connection with the Properties involving
a demand for damages, injunctive relief, penalties or other potential liability with respect to a violation of any Environmental
Law or release of any Hazardous Substance.

3.13       Mine Safety Disclosures.
The Company represents and warrants that it has not received any citations, orders, or notices from the Mine Safety and Health
Administration or the Federal Mine Safety and Health Review Commission which would, if the Company were a publicly reporting corporation,
require disclosure under Item 104 of Regulation S-K.

    -18- 

     

    

 

3.14       Indebtedness and Other Contracts.
Except as set forth on Schedule 3.14 annexed hereto, neither the Company nor any of its subsidiaries, (i) has any outstanding Indebtedness
(as defined below), (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by
the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect,
(iii) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness,
except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or
(iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment
of the Company’s officers, has or is expected to have a Material Adverse Effect.  For purposes of this Agreement: 
(x) “Indebtedness” of any Person means, without duplication (A) all indebtedness
for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including,
without limitation, “capital leases” in accordance with generally accepted accounting principles) (other than trade
payables entered into in the ordinary course of business), (C) all reimbursement or payment obligations with respect to letters
of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness
created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with
respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller
or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations
under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied
for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F)
above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by)
any mortgage, claim, lien, tax, right of first refusal, pledge, charge, security interest or other encumbrance upon or in any property
or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property
has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation”
means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness,
lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability,
or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole
or in part) against loss with respect thereto.

3.15      
Disclosure. To the Knowledge of the Stockholder all factual information (taken as a whole) heretofore or contemporaneously
requested by Parent or Buyer (or their financial advisor) and furnished to Parent or Buyer by or on behalf of Stockholder and
the Company or their representatives for purposes of or in connection with this Agreement or the transactions contemplated herein
was materially true and accurate on the date as of which such information is dated and the Stockholder does not believe such factual
information is materially incomplete in any respect. By way of example, and not as a limitation, Stockholder has no reason to
believe the information contained in the preliminary economic report on the Copper King Project dated August 24, 2012 and undertaken
by Mine Development Associates is not true and correct in all material respects as of the original date of issuance of
such report.

    -19- 

     

    

 

3.16       Statements;
Proxy Statement/Prospectus. None of the information supplied or to be supplied by the Company or the Stockholder
for inclusion or incorporation by reference in the S-4 (as defined herein) will at the time the S-4 becomes effective under the
Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein not misleading and (ii) the proxy statement/prospectus to be sent to the stockholders
of the Parent in connection with the meetings of the Parent’s stockholders (the “Parent’s Stockholder Meeting”)_
to consider the adoption of this Agreement (such proxy statement/prospectus as amended or supplemented is referred to herein as
the “Proxy Statement/Prospectus”) shall not, on the date the Proxy Statement/Prospectus is first mailed to the
Parent’s stockholders, at the time of the Parent’s Stockholder Meeting and at the Closing Date, contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made, not false or misleading, or omit to state any material
fact necessary to correct any statement in any earlier communication with respect to the solicitation of proxies for the Parent’s
Stockholder Meeting which has become false or misleading. The Proxy Statement/Prospectus will comply as to form in all material
respects with the provisions of the Exchange Act and the rules and regulations thereunder. If at any time prior to the Closing
Date, any event relating to the Company or any of its affiliates, officers or directors should be discovered by the Company which
should be set forth in an amendment to the S-4 or a supplement to the Proxy Statement/Prospectus, the Company shall promptly inform
Parent.

ARTICLE
IV

INTENTIONALLY OMITTED

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF PARENT

Parent and Buyer jointly
and severally represent and warrant to the Company and the Stockholder as of the Closing Date and agree as follows:

5.1       Organization
and Authority of Parent and Buyer.

(a)       Parent is a corporation
duly organized, validly existing and in good standing under the laws of the State of Nevada and the execution, delivery and performance
of this Agreement by the Parent and the consummation by Parent of the transactions contemplated hereby have been duly authorized
by all requisite action on the part of Parent. The Parent Shares to be issued to the stockholders of the Company as part of the
Merger Consideration have been duly authorized by all necessary corporate action on the part of Parent and, upon receipt of the
Shares from the stockholders of the Company, if such Shares are certificated, at the Effective Time, will be validly issued, fully
paid and non-assessable. This Agreement has been duly executed and delivered by Parent, and assuming due authorization, execution
and delivery by the Stockholder, the Company and Buyer, this Agreement constitutes a valid and binding obligation of Parent enforceable
against Parent in accordance with its terms, except to the extent that the enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws, or by equitable principles relating to the rights of creditors generally.

    -20- 

     

    

 

(b)       Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the State of Nevada and the execution, delivery and performance
of this Agreement by the Buyer and the consummation by Buyer of the transactions contemplated hereby have been duly authorized
by all requisite action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer, and assuming due authorization,
execution and delivery by the Stockholder, the Company and the Parent, this Agreement constitutes a valid and binding obligation
of Buyer enforceable against Buyer in accordance with its terms, except to the extent that the enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws, or by equitable principles relating to the rights of creditors
generally.

(c)       Buyer does not
own, operate or lease any properties and was created solely for purposes of the transactions contemplated by this Agreement. The
Buyer has delivered to the Stockholder and the Company complete and correct copies of the charter and bylaws of the Buyer as in
effect as of the Closing Date.

(d)       The Parent has good
title to, and is the sole record and beneficial owner of, 100% of the issued and outstanding shares of the Buyer and such shares
are free and clear of any and all Encumbrances. The Parent is not a party to any voting trusts, stockholder agreements, proxies
or other agreements or understandings in effect with respect to the voting or transfer of any of the shares of the Buyer owned
by the Parent other than such which will terminate upon the consummation of the transactions contemplated by this Agreement.

 

5.2       Capitalization.

(a)       The authorized
capital stock of the Parent consists of 54,000,000 shares of Common Stock and 5,000,000 shares of preferred stock. As of the date
hereof, after giving effect to the Merger and the consummation of the transactions contemplated hereby, the capitalization of the
Parent will be as set forth on Schedule 5.2 hereof. All of the outstanding shares of Common Stock and all of the outstanding
shares of Parent’s preferred stock have been duly authorized and validly issued and are fully paid and non-assessable. None
of the outstanding shares of Common Stock or Parent preferred stock were issued in violation of any preemptive rights or is subject
to any preemptive rights of any Person. No legend or other reference to any Encumbrance will appear upon any certificate representing
the Merger Consideration, except for customary legends with respect to transfer restrictions for restricted securities under federal
and state securities Law.

(b)       Except as set
forth in the Parent’s filings with the SEC, there are no outstanding options, warrants, agreements, conversion rights, preemptive
rights or other rights to subscribe for or purchase from the Parent, or any plans, contracts or commitments providing for the issuance
of, or the granting of rights to acquire, (i) any capital stock or other ownership interests of the Parent, including, but
not limited to the Parent Shares; or (ii) any securities convertible into or exchangeable for any such capital stock or other
ownership interests. Except as set forth in the Parent’s filings with the SEC, there are no outstanding contractual obligations
or plans of the Parent to transfer, issue, repurchase, redeem or otherwise acquire any outstanding shares of capital stock or other
ownership interests of the Parent. There are no outstanding bonds, debentures, notes or other indebtedness of Parent having the
right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matter on which holders of
shares of Parent common stock may vote.

    -21- 

     

    

 

(c)       The authorized
capital stock of the Buyer consists of Three Thousand (3,000) shares of common stock and no shares of preferred stock. As of the
date hereof, there are One Thousand (1,000) shares of common stock outstanding, 100% of which are held by the Parent. All of the
shares of Buyer common stock, have been duly authorized and validly issued and are fully paid and non-assessable. None of the outstanding
shares of Buyer’s common stock, were issued in violation of any preemptive rights or is subject to any preemptive rights
of any Person.

(d)       There are no outstanding
options, warrants, agreements, conversion rights, preemptive rights or other rights to subscribe for or purchase from the Buyer,
or any plans, contracts or commitments providing for the issuance of, or the granting of rights to acquire, (i) any capital
stock or other ownership interests of the Buyer, including, but not limited to the Buyer shares; or (ii) any securities convertible
into or exchangeable for any such capital stock or other ownership interests. There are no outstanding contractual obligations
or plans of the Buyer to transfer, issue, repurchase, redeem or otherwise acquire any outstanding shares of capital stock or other
ownership interests of the Buyer. There are no outstanding bonds, debentures, notes or other indebtedness of Buyer having the right
to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matter on which holders of shares
of Buyer common stock may vote.

5.3       Litigation;
Compliance with Laws. 

(a)       To the Knowledge
of the Buyer, there is no Action pending or threatened against or affecting the Buyer or any of its assets.

(b)       Except as set
forth in the Parent’s filings with the SEC, to its Knowledge, neither the Parent nor the Buyer is in violation of any applicable
Law or, to the Knowledge of the Parent or the Buyer, subject to or in default with respect to any Order to which it, or its properties
or assets (owned or used), is subject except as would not reasonably be expected to result in a Material Adverse Effect on the
Parent or Buyer, as the case may be. To the Knowledge of the Buyer, at all times since inception, Buyer has been in compliance
with each Law that is or was applicable to it or to the conduct or operation of its business or the ownership or use of any of
its assets, except as would not reasonably be expected to result in a Material Adverse Effect on the Buyer.

(c)       To the Knowledge of the Parent and except
as may be set forth in the Parent’s filings with the SEC, there is no Action pending or threatened against or affecting the
Parent or any of its assets.

 

5.4       No
Conflict; Governmental Consents

(a)       The execution, delivery and performance of this Agreement by the Parent and
Buyer do not and will not (i) violate, conflict with or result in the breach of any provision of the charter or by-laws of
the Parent or Buyer, (ii) conflict with or violate in any material respect any Law or Order applicable to any of the Parent
or Buyer, or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or
lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of
termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any Encumbrance
on any of the assets or properties of the Parent or Buyer pursuant to, any note, bond, mortgage, indenture, license, permit,
lease, sublease or other Contract to which the Parent or Buyer is a party or by which any of its assets or properties is
bound or affected, except as would not reasonably be expected to result in a Material Adverse Effect on the Parent or
Buyer.

    -22- 

     

    

 

(b)       Except (i) for
the listing of the Common Consideration, the Management Consideration and the shares of Common Stock issuable upon conversion of
the Preferred Consideration with The NASDAQ Capital Market, if required, and (ii) the filing and effectiveness of a Form S-4 Registration
Statement (the “S-4”) with the SEC in accordance with the Securities Act, the execution, delivery and performance of
this Agreement by the Parent does not and will not require any Approval or Order of any Governmental Entity.

5.5       SEC Reporting.
Parent has filed all forms, reports, statements, certifications and other documents (including all exhibits, amendments and
supplements thereto) required to be filed by it with the SEC pursuant to the Exchange Act or other applicable United States federal
securities Laws. None of the Parent’s subsidiaries is required to file periodic reports with the SEC. To the Parent’s
Knowledge, no investigation by the SEC with respect to the Parent or any of its subsidiaries is pending or threatened.

5.6       Officer
and Directors. To the Parent’s Knowledge, none of the officers or directors of Parent or any of its subsidiaries:
(i) has been convicted of any felony or misdemeanor or named as a subject of a criminal proceeding within the past ten (10) years
(excluding traffic violations and other minor offenses but including in connection with the purchase or sale of any security,
involving the making of a false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker,
dealer, municipal securities dealer, or investment adviser); (ii) is subject to any order, judgment, or decree of any court of
competent jurisdiction temporarily or preliminarily enjoining or restraining, or is subject to any order, judgment, or decree
of any court of competent jurisdiction, entered within the past five (5) years, permanently enjoining or restraining such person
from engaging in or continuing any conduct or practice in connection with the purchase or sale of any security, involving the
making of a false filing with the SEC, or arising out of the conduct of the business of an underwriter, broker, dealer, municipal
securities dealer, or investment adviser; (iii) is subject to an order of the SEC entered pursuant to Sections 15(b), 15B(a),
or 15B(c) of the Exchange Act, or Section 203(e) or (f) of the Investment Advisers Act of 1940; (iv) is suspended or expelled
from membership in, or suspended or barred from association with a member of, a national securities exchange registered under
Section 6 of the Exchange Act or a national securities association registered under Section 15A of the Exchange Act for any act
or omission to act constituting conduct inconsistent with just and equitable principles of trade; or (v) is subject to a United
States Postal Service false representation order entered under 39 U.S.C. Section 3005 within the past five (5) years or is subject
to a restraining order or preliminary injunction entered under 39 U.S.C. Section 3007 with respect to conduct alleged to have
violated 39 U.S.C. Section 3005.

5.7      
No Brokers or Finders. Except as set forth on Schedule 5.7, no agent, broker, finder, or investment or commercial banker,
or other Person or firm engaged by or acting on behalf of any of the Parent, the Buyer, or any of their respective Affiliates,
in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement,
is or will be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement or
such transactions.

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5.8      
Disclosure. To the Knowledge of the Parent and the Buyer all factual information (taken as a whole) heretofore or contemporaneously
requested by Stockholder or the Company and furnished to the Stockholder or the Company by or on behalf of the Parent or the Buyer
or its representatives for purposes of or in connection with this Agreement or the transactions contemplated herein was materially
true and accurate on the date as of which such information is dated and neither the Parent nor the Buyer believes such factual
information is materially incomplete in any respect

ARTICLE
VI

ADDITIONAL AGREEMENTS

6.1       Assumption of Risk by
Parent and Buyer; No Reliance.

(a)       Each of Parent
and Buyer, on behalf of themselves and their respective officers, directors, stockholders and affiliates hereby acknowledge and
agree that: (i) it has had sufficient opportunity to conduct and has conducted a thorough due diligence investigation of the Company
and the Properties prior to the date hereof; (ii) the representations and warranties set forth in Article III are, subject to the
limited recourse set forth in Articles VII and VIII, for informational purposes only, and, except as set forth in Articles VII
and VIII, shall not give rise to any Claim in any manner (including, without limitation, breach of contract); and (iii) it is sophisticated
in business transactions of the nature contemplated by this Agreement and understands the risks of engaging in a such a transaction
with limited representations and warranties made by the Stockholder and limited recourse for breach thereof.

(b)       Each of Parent
and Buyer, on behalf of themselves and their respective officers, directors, stockholders and affiliates, hereby acknowledge and
agree that (i) neither the Company nor the Stockholder or their respective Affiliates or representatives has made or makes any
representation or warranty, express or implied, relating to the Company or the Properties or assets or otherwise except for those
representations and warranties expressly set forth in Article III and (ii) no Person has been authorized by the Stockholder to
make any representation or warranty relating to the Company or its assets or otherwise in connection with the Merger, and if made,
such statement must not be relied upon as having been authorized by the Company or the Stockholder.

6.2       Notices and Consents.
Each of the Stockholder and Parent agree that, in the event any Approval necessary to preserve the Company’s assets (including
the Properties) is not obtained prior to the Closing, the Stockholder will, subsequent to the Closing, on the reasonable request
of Parent and at Parent’s sole cost and expense, cooperate with the Surviving Entity and Parent in attempting to obtain such
Approval as promptly thereafter as practicable. 

6.3      
Taking of Necessary Action; Further Action. If, at any time after the Closing Date, any further action is necessary
or desirable to carry out the purposes of this Agreement and to vest the Surviving Entity with full right, title and possession
to all assets (including the Properties), property, rights, privileges, powers and franchises of the Company, the officers and
directors of the Surviving Entity are fully authorized in the name of the Surviving Entity or otherwise to take and will take,
all such actions at Parent’s expense.  

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6.4       Stockholder’s
Obligation to Close. The Stockholder’s obligation to close the transaction set forth in this Agreement is
expressly made subject to the satisfaction of the following conditions: 

(a)       Parent shall have
obtained the requisite shareholder approval for the issuance of the Merger Consideration and the consummation of the Merger; and

(b)       Receipt by stockholders
of the Company of the Non-Escrow Shares and receipt by the Escrow Agent of the Escrow Shares.

6.5      
Conditions Precedent. The Closing of the Merger and related transactions or actions
contemplated by this Agreement are expressly subject to and contingent upon the satisfaction
of the following conditions precedent (the “Conditions Precedent”):(a)
Parent shall have obtained Stockholder and NASDAQ Approval;

(b)       Parent shall have
received approval from the NASDAQ Capital Market of an additional listing application covering the Merger Consideration, if required;

(c)      
the filing by the Parent of the Schedule 14f-1; 

(d)      
the Company shall have closed the Keystone Acquisition; 

(e)
      the Company shall have closed the Company Financing and received at least Three Million Dollars ($3,000,000) in net proceeds from
the sale of its securities; 

(f)      
delivery of a fairness opinion issued to Parent relating to the Company, the Properties and the Merger Consideration in customary
form;

(g)      
Parent shall have obtained the requisite approval of holders of its voting capital to increase the number of authorized shares
of its Common Stock to Two Hundred Million (200,000,000) shares from Fifty Four Million (54,000,000) shares; 

(h)      
Immediately preceding the Closing Date, the Parent shall not have more than 4,559,178 shares of Common Stock outstanding on a fully
diluted basis; 

(i)      
The representations and warranties of the Company and the Stockholder contained in this Agreement shall have been true and correct
in all material respects on the date of this Agreement (except whether such representations are qualified by material or material
adverse effect, which shall be true and correct in all respects) and shall be true and correct as of the Closing Date as if made
on the Closing Date and the Company and the Stockholder shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions required to be performed, satisfied or complied with by the Company and the Stockholder in connection
with the consummation of the transactions contemplated by this Agreement at or prior to the Closing Date and the Company shall
deliver a certificate, executed by its Chief Executive Officer, dated as of the Closing Date, certifying that the foregoing is
true; 

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(j)
      The Board of Directors of Parent shall have declared as a special dividend a right entitling each stockholder as of the Record
Date (as defined below) to a proportionate ownership interest, record or beneficial, equal to their ownership interest in the Parent,
of the Parent Assets (as defined below) or the proceeds therefrom, as, when and if the Board of Directors of the Parent elects
to divest such Parent Assets within eighteen (18) months of the Closing Date. The record date of such special dividend (the “Record
Date”) will be no less than five (5) business days prior to the Closing Date; and

(k)      
The officers, directors and key consultants of the Parent, set forth on Schedule 6.5, shall be issued be issued restricted
stock grants pursuant to the Parent’s equity incentive plan in the aggregate amount of Eight Hundred and Twenty Thousand
(820,000) shares of Common Stock in the amounts set forth on Schedule 6.5, conditioned upon the receipt of a Two-Year
Lockup from the holder; and

(l)
      The SEC shall have declared the S-4 effective.  No stop order suspending the effectiveness of the S-4 or any part thereof
shall have been issued and no proceeding for that purpose, and no similar proceeding in respect of the Proxy Statement/Prospectus,
shall have been initiated or threatened in writing by the SEC.

6.6      
Further Assurances. Parent, Buyer and the Stockholder shall (and Parent shall cause the Surviving Entity to) provide
reasonable cooperation to each other and their professional auditors with respect to any audit, legal or tax inquiries or procedures
following the Closing Date including, without limitation, in order to permit Parent to have prepared, at its sole cost and expense,
audited financial statements as required for filing with the SEC.

6.7       Legal Representation.
Parent and Buyer, on the one hand, and the Company and the Stockholder, on the other hand,  hereto acknowledge that
they have been represented by independent legal counsel in the preparation of this Agreement. Parent, the Company, the Stockholder
and Buyer each hereby explicitly waive any conflict of interest and other allegations that it/they have not been represented by
its own counsel.

6.8       Financial
Matters. At the Closing Date, all intercompany obligations recorded on the books and records of the Parties, due and owing
from the Company to Stockholder, or from Stockholder to the Company shall be cancelled. All bank accounts of the Company shall
be maintained and any balances on the date hereof shall be conveyed and transferred to Buyer and the Surviving Entity by virtue
of the Merger.

6.9       Company
Financial Statements. The Company shall, not later than 20 days after execution of this Agreement, deliver to the Parent
its financial statements for the prior two (2) fiscal years (or since inception) audited by a PCAOB firm and unaudited financial
statements for any interim period as well as pro forma financial statements of the post-Merger balance sheet of the Parent and
the Surviving Entity, on a consolidated basis, and such additional information as is required for the Parent’s S-4 relating
to the approval by the Parent’s stockholders of this Agreement, the Merger, the issuance of the Merger Consideration and
Management Consideration and the transactions contemplated hereby and thereby and the related Current Reports on Form 8-K required
in connection with the Closing of the Merger.

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6.10       Existing
Parent Assets. The Parties acknowledge that it may be in the best interests of both the Parent and its stockholders that
the Parent, after Closing of the Merger, divest itself of the existing pre-Merger assets which directly support its memory products
and solutions business.  These assets include computer memory products, design and engineering services, contract and flexible
manufacturing solutions, simulation labs, financial programs, buyback / trade-in / trade-up programs, software tools and solutions,
related intellectual property and customer lists.  It further includes but is not limited its four business lines and associated
brands and trademarks which support and provide complimentary solutions to the market (namely Princeton Memory, Micro Memory Bank
(MMB), MemoryStore.com, 18004Memory.com).  These are collectively referred to as the “Parent Assets”. 
The Parties agree that between the date hereof and the Closing Date they will consider this issue, determine if in fact such a
divestiture is in the best interests of the Parent and its stockholders, and review the most effective means of undertaking such
a divestiture, taking into account all legal, economic and tax considerations as are appropriate. The parties further agree that
in the event of any such divestiture, ownership of the Parent Assets, or the proceeds thereof, will be for the benefit of the stockholder
of the Parent prior to consummation of the Merger.

6.11       New Report.
Within twelve (12) months of the Closing Date, the Company, as the Surviving Company, shall deliver to Parent the New Report.

6.12       S-4/Proxy
Statement/Prospectus. As promptly as practicable after the execution of this Agreement, the Parent shall prepare
and file with the SEC the S-4, which shall include a document or documents that will constitute (i) the prospectus forming part
of the registration statement on the S-4 and (ii) the Proxy Statement/Prospectus.  Parent shall use all commercially
reasonable efforts to cause the S-4 to become effective as promptly as practicable after the date hereof, and, prior to the effective
date of the S-4, the parties hereto shall take all action required under any applicable laws in connection with the Merger and
the issuance of the Merger Consideration. The Company shall provide promptly to the Parent such information concerning its business
and financial statements and affairs as may be required or appropriate for inclusion in the Proxy Statement/Prospectus and the
S-4, or in any amendments or supplements thereto, and cause its counsel and auditors to cooperate with the Parent’s counsel
and auditors in the preparation of the Proxy Statement/Prospectus and the S-4.

(b)       As
promptly as practicable after the effective date of the S-4, the Proxy Statement/Prospectus shall be mailed to the stockholders
of the Parent. Parent shall cause the Proxy Statement/Prospectus to comply as to form and substance in all material respects with
the applicable requirements of (i) the Exchange Act, (ii) the Securities Act, and (iii) the rules and regulations of The NASDAQ
Stock Market LLC. Parent will notify the Company promptly of the receipt of any (i) comments from the SEC or its staff or any other
government officials, (ii) notice that the S-4 has become effective, (iii) the issuance of any stop order, or (iv) request by the
SEC or its staff or any other government officials for amendments or supplements to the S-4, the Proxy Statement/Prospectus or
for additional information and, except as may be prohibited by any Governmental Entity, will supply the Company with copies of
all correspondence between such Parent or any of its representatives, on the one hand, and the SEC or its staff or any other government
officials, on the other hand, with respect to the S-4, the Proxy Statement/Prospectus, the Agreement or any related document or
filing.  Parent will cause all documents that it is responsible for filing with the SEC or other regulatory authorities
under this Section 6.12(b) to comply in all material respects with all applicable requirements of law and the rules and regulations
promulgated thereunder.

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(c)       Each
of Company and the Parent shall promptly inform the other of any event which is required to be set forth in an amendment or supplement
to the Proxy Statement/Prospectus, the S-4 or any related filing or document and the Parent shall amend or supplement the Proxy
Statement/Prospectus to the extent required by law to do so. Parent shall advise the Company, promptly after it receives notice
thereof, of the time when the S-4 has become effective or any supplement or amendment has been filed, of the issuance of any stop
order, or of any request by the SEC for an amendment of the Proxy Statement/Prospectus or the S-4 or comments thereon and responses
thereto or requests by the SEC for additional information.

(d)       Parent
shall keep the S-4 continuously effective under the Securities Act until all securities covered by the S-4 have been sold, or may
be sold without restrictions pursuant to Rule 144, as determined by the counsel to the Parent pursuant to a written opinion letter
to such effect, addressed and acceptable to the Company’s transfer agent and the affected stockholder of the Company.

ARTICLE
VII

TAX MATTERS

7.1       
Conveyance Taxes. Parent and Buyer shall pay and be solely responsible for any transfer or gains, sales, use, transfer,
value added, stock transfer, and stamp taxes, any transfer, recording, registration, and other fees, and any similar Taxes which
become payable in connection with the transactions contemplated by this Agreement, and shall file such applications and documents
as shall permit any such Tax to be assessed and paid on or prior to the Closing Date in accordance with any available pre-sale
filing procedure. Each party hereto shall execute and deliver all instruments and certificates necessary to enable the other party
or parties to comply with the foregoing.

7.2       
Pre-Closing Tax Returns. The Company shall timely prepare and file all Tax Returns of the Company required to be filed
by the Company with respect to a period ending on or before the Closing Date (each such Tax Return, a “Pre-Closing Tax
Return”). Parent and Buyer shall cause the Company to execute and timely file any Pre-Closing Tax Return prepared in
accordance with this Section 7.2 that will be filed after the Closing Date. The cost of preparing all Pre-Closing Tax Returns
shall be paid by the Company and/or the Stockholder. All such Pre-Closing Tax Returns shall be prepared and filed in a manner
consistent with the past practice of the Company unless otherwise required by applicable Law. The Stockholder, the Buyer and the
Parent will cooperate in good faith in connection with the exchange of information necessary for the preparation of all Pre-Closing
Tax Returns.

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7.3        Straddle
Period. The Parent and Buyer shall timely prepare or cause to be prepared and file or cause to be filed any Tax Returns
of the Company required to be filed by the Company, as the case may be, with respect to a period beginning before the Closing
Date and ending after the Closing Date (a “Straddle Period”) relating to Taxes a portion of which is owed by
the Company and the Stockholder with respect to any pre-closing tax period or portion thereof (“Straddle Period Returns”).
All Straddle Period Returns shall be prepared and filed in a manner consistent with the past practice of the Company unless otherwise
required by applicable Law. The Stockholder shall have the right to review and comment on each Straddle Period Return prior to
the filing of such return. The Stockholder, Parent and the Buyer agree to consult and resolve in good faith any issues and comments
arising as a result of the review of each Straddle Period Return, and mutually to consent to filing as promptly as possible to
each Straddle Period Return. The cost of preparing all Straddle Period Returns shall be paid by the Parent or the Buyer.

7.4       
Last Day of Taxable Period. If the Company is permitted under any applicable foreign, state or local income tax Law
to treat the Closing Date as the last day of a taxable period of the Company, the Stockholder and the Parent and Buyer shall treat
(and cause their respective Affiliates to treat) the Closing Date as the last day of such taxable period (i.e., a deemed
closing of the books for Tax purposes). For all purposes under this Agreement, in the case of Taxes that are payable with respect
to any Straddle Period, the portion of any such Tax that is allocable to the portion of the period ending on the close of the
Closing Date shall be, in the case of Taxes that are based upon or related to income or receipts, be equal to the amount which
would be payable if the taxable year ended on the Closing Date.

7.5       
Tax Cooperation. The Stockholder, the Parent and the Buyer shall, upon written request of the other, (i) each provide
the other with such assistance as may be reasonably requested by any of them in connection with the preparation of any Tax Return,
audit, or other examination by any taxing authority or judicial or administrative proceedings relating to liability for Taxes
or such returns, (ii) each retain and provide the other with any records or other information that may be relevant to such Tax
Returns, audit or examination, proceeding, or determination, and (iii) each provide the other with any final determination of
any such audit or examination, proceeding, or determination that affects any amount required to be shown on any such Tax Returns.
Without limiting the generality of the foregoing, the Buyer and Parent shall retain until the applicable statues of limitations
(including any extensions) have expired, copies of all Pre-Closing Tax Returns and Straddle Period Returns, supporting work schedules,
and other records or information that may be relevant to such returns, and shall not destroy or otherwise dispose of any such
records without first providing the Stockholder with a reasonable opportunity to review and copy the same. Each party shall bear
its own expenses in complying with the foregoing provisions.

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7.6       
Required Notification. The Buyer shall promptly notify the Stockholder in writing upon receipt by the Buyer or any
of its Affiliates of notice of any audits, examinations, adjustments or assessments relating to Taxes with respect to any Pre-Closing
Tax Returns and any Straddle Period Returns, and with respect to amounts which would be paid by the Stockholder or for which any
of the Buyer or its Affiliates may be entitled to receive indemnity under this Agreement (each, a “Tax Claim”).
The Stockholder, in its sole discretion, may contest such Tax Claim in any permissible forum and shall otherwise have the sole
right at their sole expense to direct, control and settle any administrative or judicial proceedings relating to such Tax Claim,
provided that (i) the Stockholder notifies the Buyer in writing within twenty (20) days (or if a response to such Tax Claim is
required within thirty (30) days and the Internal Revenue Service (or any other applicable state or local tax authority) refuses
to grant an extension of at least ten (10) days, fifteen (15) days; provided that the Buyer shall be required to use reasonable
efforts to obtain such an extension) of the Buyer's notification of the Stockholder of such Tax Claim of their intent to exercise
their right to direct, control, and settle such Tax Claim, (ii) the Buyer shall be entitled to participate at its sole expense
in such administrative or judicial proceedings and (iii) to the extent any settlement of any such proceeding is reasonably expected
to increase any Tax to the Buyer or its Affiliates in respect of any Tax not indemnified under this Agreement by the Stockholder
at the time of such settlement, the Stockholder may not settle any such proceeding without the prior written consent of the Buyer.

ARTICLE
VIII

INDEMNIFICATION

8.1       
Obligations of Stockholder

(a)        Indemnification
by Stockholder. Subject to the limitations set forth this Section 8.1 and otherwise in this Article VIII, the Stockholder
(the “Stockholder Indemnifying Party”), agree to indemnify and hold harmless Parent, the Surviving Entity and
their respective directors, officers and Affiliates and their successors and assigns (each a “Parent Indemnified Party”)
from and against any and all Losses of the Parent Indemnified Parties, to the extent directly or indirectly resulting or arising
from or based upon:

(i)        breach of
any representation or warranty set forth in Article III; and

(ii)        all Taxes
to the extent resulting from or relating to the ownership, management or use of and the operation of the Company prior to and including
the Closing Date.

(b)        Intentionally
Omitted.

(c)        Limitations
on Liability. The obligations of the Stockholder under this Section 8.1 shall be subject to the following limitations:

(i)        The Stockholder
shall not have any liability to any Parent Indemnified Party with respect to Losses arising out of any of the matters referred
to in Section 8.1(a), until such time as the amount of all such liability shall collectively exceed $10,000 (the “Threshold”),
whereupon the Losses exceeding the Threshold shall be payable by the Stockholder;

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(ii)        Parent
waives, on behalf of itself and any Parent Indemnified Party, any right to multiply actual damages or recover consequential, indirect,
special, punitive or exemplary damages (including, without limitation, damages for lost profits or loss of business opportunity)
arising in connection with or with respect to the indemnification provisions hereof or any right to recovery from any source other
than the Escrow Shares. For the avoidance of doubt, the Stockholder’s indemnification obligation is limited to the
Escrow Shares.

(iii)        In no
event shall the Stockholder’s aggregate liability to any Indemnified Party under Section 8.1 exceed the after tax
amount of such Claim and all Claims shall be net of any insurance proceeds reasonably expected to be received in respect of Losses
subject to such Claim. The Parent Indemnified Parties shall use all reasonable efforts to collect any amounts available under applicable
insurance policies with respect to Losses subject to a Claim.

8.2       
Obligations of Parent. Parent, Buyer and the Surviving Entity (collectively, the “Parent Indemnifying Parties”)
agree to indemnify and hold harmless the Stockholder and its agents, representatives and Affiliates and its successors and assigns
(each, a “Stockholder Indemnified Party”) from and against any and all Losses of the Stockholder Indemnified
Party, directly or indirectly, as a result of, or based upon or arising from:

(a)        the ownership,
management and operation of the Company and the Surviving Entity after the Closing Date, except (a) to the extent any such Losses
are subject to indemnification by the Stockholder pursuant to Section 8.1 or (b) to the extent any such Losses are the result
of fraud committed by the Stockholder; and

(b)        Buyer shall not
have any liability to the Stockholder Indemnified Party with respect to Losses arising out of any of the matters referred to in
Section 8.2, until such time as the amount of all such liability shall collectively exceed the Threshold, whereupon the Losses
exceeding the Threshold shall be payable by Buyer. Also, in no event shall Buyer’s aggregate liability under Section 8.2
exceed the after-tax amount of such Claims.

8.3       Procedure.
A Stockholder Indemnified Party or a Parent Indemnified Party (each, an “Indemnified Party”) shall give
the Parent Indemnifying Party or Stockholder Indemnifying Party (each, an “Indemnifying Party”), as applicable,
notice (a “Claim Notice”) of any matter which an Indemnified Party has determined has given or could reasonably
give rise to a right of indemnification under this Agreement (a “Claim”), within forty-five (45) days of such
determination; provided, however, that any failure of the Indemnified Party to provide such Claim Notice shall not release the
Indemnifying Party from any of its obligations under this Article VIII except to the extent the Indemnifying Party is materially
prejudiced by such failure and shall not relieve the Indemnifying Party from any other obligation or liability that it may have
to any Indemnified Party otherwise than under this Article VIII except to the extent the Indemnifying Party is materially prejudiced
by such failure. Upon receipt of the Claim Notice,

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the Indemnifying Party shall be entitled
to assume and control the defense of such Claim at its expense if it gives notice of its intention to do so to the Indemnified
Party within ten (10) Business Days of the receipt of such Claim Notice from the Indemnified Party; provided, however, that (i)
Indemnified Party must approve of the selection of legal counsel by Indemnifying Party, which approval shall not be unreasonably
withheld, delayed or conditioned and (ii) if there exists or is reasonably likely to exist a conflict of interest that would make
it inappropriate in the judgment of the Indemnified Party, in its reasonable discretion, for the same counsel to represent both
the Indemnified Party and the Indemnifying Party, then the Indemnified Party shall be entitled to retain its own counsel, in each
jurisdiction for which the Indemnified Party determines counsel is required, at the expense of the Indemnifying Party. In the event
the Indemnifying Party exercises the right to undertake any such defense against any such Claim as provided above, the Indemnified
Party shall cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying
Party’s expense, all witnesses, pertinent records, materials and information in the Indemnified Party’s possession
or under the Indemnified Party’s control relating thereto as is reasonably required by the Indemnifying Party. Similarly,
in the event the Indemnified Party is, directly or indirectly, conducting the defense against any such Claim, the Indemnifying
Party shall cooperate with the Indemnified Party in such defense and make available to the Indemnified Party, at the Indemnifying
Party’s expense, all such witnesses, records, materials and information in the Indemnifying Party’s possession or under
the Indemnifying Party’s control relating thereto as is reasonably required by the Indemnified Party. No such Claim may be
settled by the Indemnifying Party without the prior written consent of the Indemnified Party, which consent shall not be unreasonably
withheld, delayed or conditioned so long as (a) there is no payment or other consideration required of the Indemnified Party and
(b) such settlement does not require or otherwise involve any restrictions on the conduct of Business by the Indemnified Party.

8.4 Survival.

(a)        The representations
and warranties of the Stockholder and Parent contained in this Agreement, including the Exhibits and the Schedules to this Agreement,
shall survive the Closing until the first (1st) anniversary of the Closing Date. An Indemnifying Party is not required to make
any indemnification payment hereunder unless a Claim is delivered to the Indemnifying Party on or before 5:00 p.m. ET of the one
year anniversary of the Closing Date, except with respect to Claims of fraud committed by the Indemnifying Party.

(b)        Any matter as
to which a Claim has been asserted by a Claim Notice to the other party that is pending or unresolved at the end of any applicable
limitation period shall continue to be covered by this Article VIII notwithstanding any applicable statute of limitations (which
the parties hereby waive) until such matter is finally terminated or otherwise resolved by the parties under this Agreement or
by a final, nonappealable judgment of a court of competent jurisdiction and any amounts payable hereunder are finally determined
and paid.

8.5       Notice
by Indemnifying Party. The Indemnifying Party agrees to notify the Indemnified Party of any liabilities, claims or misrepresentations,
breaches or other matters covered by this Article VIII upon discovery or receipt of notice thereof (other than such claims from
the Indemnified Party).

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8.6       Exclusive
Remedy. Other than rights to equitable relief, to the extent available under applicable law, each of the parties acknowledges
and agrees that the sole and exclusive remedy for any Losses arising from Claims described in Sections 8.1 and 8.2
or any other Claims of every nature arising in any manner in connection with this Agreement, shall be indemnification in accordance
with this Article VIII.

8.7        Mitigation.
Prior to the resolution of any Claim for indemnification under this Agreement, the Indemnified Party shall utilize all commercially
reasonable efforts, consistent with normal past practices and policies and good commercial practice, to mitigate such Losses.

8.8       
Consequential and Other Damages. No party shall be liable for any lost profits or consequential, special, punitive,
indirect or incidental Losses or damages in connection with this Agreement.

ARTICLE
IX

MISCELLANEOUS

 

9.1        Amendments;
Waivers. This Agreement and any schedule or exhibit attached hereto may be amended only by agreement in writing of all
parties. No waiver of any provision nor consent to any exception to the terms of this Agreement or any agreement contemplated
hereby shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent
and instance so provided.

9.2        Exclusivity.
Subject to any fiduciary obligations applicable to its boards of directors, the Company shall not (and shall not cause or
permit any of their affiliates to) engage in any discussions or negotiations with any person or take any action that would be
inconsistent with this Agreement or the transactions contemplated hereby. The Company shall notify the Parent immediately if any
person makes any proposal, offer, inquiry, or contact with respect to any of the foregoing.

9.3       Intentionally Omitted.

9.4       Schedules;
Exhibits; Integration. Each schedule and exhibit delivered pursuant to the terms of this Agreement shall be in writing
and shall constitute a part of this Agreement, although schedules need not be attached to each copy of this Agreement. This Agreement,
together with such schedules and exhibits, constitutes the entire agreement among the parties pertaining to the subject matter
hereof and supersedes all prior agreements and understandings of the parties in connection therewith.

    -33- 

     

    

9.5       Governing
Law. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual, instituted
by any party with respect to any matter arising between the parties, including but not limited to matters arising under or in
connection with this Agreement, such as the negotiation, execution, interpretation, coverage, scope, performance, breach, termination,
validity, or enforceability of this Agreement, shall be governed by and construed in accordance with the internal laws of the
State of New York without reference to principles of conflicts of laws. Subject to the provisions of Section 9.17, the
parties hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the Federal
Courts of the United States of America located within the Eastern or Southern District of New York with respect to any matter
arising between the parties, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the
interpretation or enforcement hereof or thereof, that it is not subject thereto or that such action, suit or proceeding may not
be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any
such document may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect
to such action or proceeding shall be heard and determined in such a New York State or Federal court. The parties hereby consent
to and grant any such court jurisdiction over the person of such parties and over the subject matter of such dispute and agree
that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by
applicable Law, shall be valid and sufficient service thereof. With respect to any particular action, suit or proceeding arising
between the parties, including but not limited to matters arising under or in connection with this Agreement, venue shall lie
solely in any New York County or any Federal Court of the United States of America sitting in the Eastern or Southern District
of New York.

9.6       No Assignment.
Neither this Agreement nor any rights or obligations under it are assignable without the express written consent of the Stockholder
and Parent.

9.7       Headings.
The descriptive headings of the Articles, Sections and subsections of this Agreement are for convenience only and do not constitute
a part of this Agreement.

9.8       Counterparts.
This Agreement and any amendment hereto or any other agreement (or document) delivered pursuant hereto may be executed in
one or more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and
the same agreement (or other document) and shall become effective (unless otherwise provided therein) when one or more counterparts
have been signed by each party and delivered to the other party.

9.9       Publicity
and Reports. The Stockholder and Parent shall coordinate all publicity relating to the transactions contemplated by this
Agreement and, except as required by Law, no party shall issue any press release, publicity statement or other public notice relating
to this Agreement, or the transactions contemplated by this Agreement, without obtaining the prior consent of each of the Stockholder
and Parent.

    -34- 

     

    

9.10       Parties
in Interest. This Agreement shall be binding upon and inure to the benefit of each party, and nothing in this Agreement,
express or implied, is intended to confer upon any other person any rights or remedies of any nature whatsoever under or by reason
of this Agreement. Nothing in this Agreement is intended to relieve or discharge the obligation of any third person to any party
to this Agreement.

9.11       Notices.
Any notice or other communication hereunder must be given in writing and (a) delivered in person, (b) transmitted
by facsimile or (c) mailed by certified mail, postage prepaid, return receipt requested as follows:

If to PARENT or
BUYER, addressed to:

DATARAM CORPORATION

777 Alexander Road, Suite
100

Princeton, New Jersey 08543

Attn: Chief Executive Officer

 

Facsimile:
(609) 799-6734

With a copy to:

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, New York 10006

Attn: Harvey Kesner, Esq.

 

If to STOCKHOLDER, addressed
to the addresses set forth on the signature page hereto.

If to the COMPANY, addressed
to:

U.S. GOLD CORP.

P.O. Box 2092

Elko, NV  89803

 

Attn: Chief Executive Officer

 

Facsimile:

With a copy to:

Laxague Law, Inc.

1 East Liberty, Suite 600

Reno, Nevada 89501

Attn: Joseph Laxague, Esq.

    -35- 

     

    

 

or to such other address or to such other person
as either party shall have last designated by such notice to the other party. Each such notice or other communication shall be
effective (i) if given by facsimile, when transmitted to the applicable number so specified in (or pursuant to) this Section 9.11
and an appropriate answerback is received, (ii) if given by mail, three (3) days after such communication is deposited in
the mails by certified mail, return receipt requested, with postage prepaid and addressed as aforesaid or (iii) if given by
any other means, when actually delivered at such address.

 

9.12       Remedies;
Waiver. To the extent permitted by Law, all rights and remedies existing under this Agreement are cumulative to and not
exclusive of, any rights or remedies otherwise available under applicable Law. No failure on the part of any party to exercise
or delay in exercising any right hereunder shall be deemed a waiver thereof, nor shall any single or partial exercise preclude
any further or other exercise of such or any other right.

9.13       Attorney’s
Fees. In the event of any Action by any party to enforce against another party a right or claim, each party shall pay
its own fees, costs and expenses incurred in such Action, and no arbitrator shall have authority to make an award of attorney’s
fees in contravention of this provision. Attorney’s fees incurred in enforcing any final judgment in respect of this Agreement
are recoverable as a separate item.

9.14       Severability.
If any provision of this Agreement is determined to be invalid, illegal or unenforceable by any Governmental Entity, the remaining
provisions of this Agreement to the extent permitted by Law shall remain in full force and effect; provided that the essential
terms and conditions of this Agreement for all parties remain valid, binding and enforceable. In event of any such determination,
the parties agree to negotiate in good faith to modify this Agreement to fulfill as closely as possible the original intents and
purposes hereof. To the extent permitted by Law, the parties hereby to the same extent waive any provision of Law that renders
any provision hereof prohibited or unenforceable in any respect.

9.15       Entire
Agreement. This Agreement constitutes and includes that entire agreement of the parties with reference to
the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof. No promise
or representation of any kind has been made to any of the parties to this Agreement by any other party or parties to this Agreement
or anyone acting for any of such parties, except as is expressly stated in this Agreement.

9.16       Time is
of the Essence. Time is of the essence in interpreting and enforcing this Agreement.

    -36- 

     

    

9.17       Arbitration.
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by binding
arbitration administered before one arbitrator by the American Arbitration Association under its Commercial Arbitration Rules
in effect on the date of this Agreement (herein the “AAA Rules”), and judgment on the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be selected pursuant to the AAA Rules
and shall be a neutral and impartial lawyer with excellent academic and professional credentials (i) who is or has been practicing
law for at least fifteen (15) years, specializing in general commercial litigation or general corporate and commercial matters
and (ii) who has both training and experience as an arbitrator and is generally available to serve as an arbitrator. The arbitration
shall be governed by the arbitration law of the Federal Arbitration Act and shall be held in the City of New York, County of New
York.

9.18       Expenses.
All fees and expenses incurred by any party hereto shall be paid by such party.

9.19       Disclosures.
Each exception stated in the Schedules attached hereto shall be deemed to be disclosed under any Section of Article III or
Article V specifically identified therein and any other Section or Sections to which such disclosure relates.

[SIGNATURE PAGE FOLLOWS]

 

    -37- 

     

    

IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed by its duly authorized officers as of the day and year first
above written.

 

 

 

PARENT:

 

DATARAM CORPORATION

 

By:  /s/ David A. Moylan

Name: David A. Moylan

Title: Chief Executive Officer

 

 

 

BUYER:

 

DATARAM ACQUISITION SUB, INC.

 

By:   /s/ David A. Moylan

Name: David A. Moylan

Title: Chief Executive Officer

 

 

 

COMPANY:

 

U.S. GOLD CORP.

 

By:   /s/ David S. Rector

Name: David S. Rector

Title:Chief Operating Officer

 

 

 

STOCKHOLDER:

 

COPPER KING LLC

 

By:  /s/ John Stetson

Name: John Stetson

Title:Managing Member

 

    -38-LightPath Technologies, Inc. 10-K

Exhibit 10.8

 

 

 

STOCK PURCHASE
AGREEMENT

by and among

ISP OPTICS CORPORATION,

The
Stockholders of ISP OPTICS CORPORATION

set
forth on the Stockholder Signature Page hereto,

AND

LIGHTPATH TECHNOLOGIES,
INC.

 

 

Dated August 3, 2016

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

	 	 	Page
	 	 	 
	Article I THE CLOSING; PURCHASE AND SALE OF STOCK	1
	 	 
	1.1	Purchase of Purchased Shares	1
	1.2	Consideration	1
	1.3	Closing	1
	1.4	Payment of the Purchase Price	2
	1.5	Net Working Capital Adjustment	2
	1.6	Cash Adjustment	5
	1.7	Debt Adjustment	6
	1.8	Limitation on Adjustments	7
	1.9	Seller Closing Documents	7
	1.10	Buyer Closing Documents	8
	1.11	Further Actions to be Taken at Closing	8
	 	 	 
	Article II REPRESENTATIONS AND WARRANTIES REGARDING BUYER	9
	 	 
	2.1	Organization; Corporate Power and Authorization	9
	2.2	Binding Effect and Noncontravention	9
	2.3	Broker Fees	9
	2.4	No Litigation	9
	2.5	Investment	10
	2.6	Acknowledgement by Buyer	10
	2.7	SEC Documents	11
	2.8	Solvency	11
	 	 	 
	Article III REPRESENTATIONS AND WARRANTIES REGARDING THE SELLERS	11
	 	 
	3.1	Power and Authorization	11
	3.2	Binding Effect and Noncontravention	11
	3.3	Capital Stock	12
	 	 	 
	Article IV REPRESENTATIONS AND WARRANTIES REGARDING THE ACQUIRED COMPANIES	12
	 	 
	4.1	Organization; Qualification; Corporate Power and Authorization	12
	4.2	Capitalization; Subsidiary	12
	4.3	Binding Effect and Noncontravention	13
	4.4	Financial Statements	13
	4.5	Events Subsequent to the Latest Balance Sheet	14
	4.6	Undisclosed Liabilities; Indebtedness	16
	4.7	Title to and Sufficiency of Assets	16
	4.8	Compliance with Laws	16
	4.9	Tax Matters	17
	4.10	Environmental Matters	18
	4.11	Intellectual Property	19
	4.12	Real Estate; Tangible Assets	20
	4.13	Litigation	21
	 	 	 

    	  

    	 

    

 

	4.14	Employee and Labor Relations	21
	4.15	Employee Plans	22
	4.16	Government Contracts	23
	4.17	Export Control Matters; Trade Regulations	24
	4.18	Affiliate Transactions	24
	4.19	Insurance	25
	4.20	Contracts	25
	4.21	Broker Fees	26
	4.22	Inventory	26
	4.23	Product Warranties	26
	4.24	Accounts Receivable	27
	4.25	Disclaimer of the Acquired Companies	27
	 	 	 
	Article V COVENANTS AND OTHER AGREEMENTS	27
	 	 
	5.1	Conduct of Business	27
	5.2	No Solicitation	29
	5.3	Access	30
	5.4	Notification of Certain Matters	30
	5.5	Efforts; Regulatory Approvals	30
	5.6	Financial Statements	32
	5.7	Transition	32
	5.8	Noncompetition and Nonsolicitation	32
	5.9	Release	33
	5.10	Financing Matters	33
	5.11	Disclosure Schedule Updates	34
	5.12	Public Announcements; Confidentiality	34
	5.13	Litigation Support	35
	5.14	Employee Matters	35
	5.15	Record Retention	36
	5.16	Indemnification of Directors and Officers; Insurance	36
	5.17	Acknowledgement of Personal Property	38
	5.18	Tax Matters	38
	5.19	Further Assurances	42
	 	 	 
	Article VI CONDITIONS TO CLOSING; TERMINATION	42
	 	 
	6.1	Conditions to Each Party’s Obligations	42
	6.2	Conditions to Obligation of the Sellers	42
	6.3	Conditions to Obligation of Buyer	43
	6.4	Frustration of Closing Conditions	44
	6.5	Termination	44
	6.6	Effect of Termination	45
	6.7	Notice of Termination	45
	 	 	 
	Article VII INDEMNIFICATIONS; SURVIVAL	45
	 	 
	7.1	Indemnification by Sellers	45
	7.2	Indemnification by Buyer	46
	7.3	Losses Net of Insurance, Etc.	47
	 	 	 

    	ii 

    	 

    

 

	7.4	Termination of Indemnification	49
	7.5	Procedures Relating to Indemnification	49
	7.6	Survival of Representations and Warranties	50
	7.7	Tax Treatment of Indemnification Payments	51
	 	 	 
	Article VIII DEFINITIONS	51
	 	 
	Article IX MISCELLANEOUS	60
	 	 
	9.1	Expenses	60
	9.2	Governing Law	60
	9.3	Jurisdiction; Service of Process	60
	9.4	Waiver of Jury Trial	61
	9.5	Attorneys’ Fees	61
	9.6	Waiver; Remedies Cumulative	61
	9.7	Notices	61
	9.8	Assignment	63
	9.9	No Third-Party Beneficiaries	63
	9.10	Amendments	63
	9.11	Disclosure Schedules	63
	9.12	Non-Recourse	63
	9.13	Construction	64
	9.14	Entire Agreement	64
	9.15	Severability	64
	9.16	Mutual Drafting	64
	9.17	Counterparts; Facsimile	64

EXHIBITS

	Exhibit A	Form of Buyer Note
	 	 
	SCHEDULES	 
	 	 
	Schedule 1.4(b)	Seller Payments
	Schedule 1.5(a)	Net Working Capital Methodology
	Schedule 1.9(h)	Required Approvals and Consents
	Schedule 5.17	List of Seller Personal Property
	Schedule 8 	Permitted Liens

Buyer
Disclosure Schedule

Seller Disclosure
Schedule

Company
Disclosure Schedule

    	iii 

    	 

    

 

STOCK PURCHASE AGREEMENT

This STOCK PURCHASE
AGREEMENT (the “Agreement”) is made as of August 3, 2016, by and among LIGHTPATH TECHNOLOGIES, INC., a Delaware
corporation (“Buyer”), ISP OPTICS CORPORATION, a New York corporation (the “Company”), and
the stockholders of the Company listed on the Sellers signature page attached hereto (each a “Seller” and collectively
the “Sellers”). Buyer, the Company and the Sellers are sometimes referred to individually as a “Party”
and collectively as the “Parties.” Certain capitalized terms that are used herein are defined in ARTICLE VIII
below.

WHEREAS, as of the
date hereof, the Sellers collectively own 100% of the issued and outstanding shares of the Common Stock (as defined below) of the
Company; and

WHEREAS, the Parties
desire that, subject to the terms and conditions of this Agreement, in exchange for the consideration set forth herein, Buyer shall
purchase from the Sellers 100% of the issued and outstanding shares of the Common Stock (the “Purchased Shares”).

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

Article
I

THE
CLOSING; PURCHASE AND SALE OF STOCK

1.1

Purchase of Purchased
Shares. At the Closing, subject to the terms and conditions of this Agreement, Buyer shall purchase and accept from the Sellers
and the Sellers shall sell, transfer and deliver to Buyer, the Purchased Shares, in exchange for the Purchase Price as provided
in Section 1.2 and Section 1.4.

1.2

Consideration.
The aggregate consideration for the Purchased Shares pursuant to the Transactions (the “Purchase Price”) shall
be the sum of Eighteen Million Dollars ($18,000,000) to be paid in a combination of cash and a Buyer Note (as defined below), as
follows:

(a)

A cash payment to
the Sellers in an amount of not less than Twelve Million Dollars ($12,000,000) (the “Cash Amount”), as adjusted
pursuant to Section 1.4 through Section 1.7 (the “Closing Payment”), to be paid by Buyer as described
in Section 1.4; and

(b)

An issuance to the
Sellers of a promissory note in the aggregate principal amount equal to the Purchase Price less the Cash Amount, but in no event
less than Three Million Dollars ($3,000,000), and in the form attached hereto as Exhibit A (the “Buyer Note”).

1.3

Closing. The
closing of the Transactions (collectively, the “Closing”) shall take place at the offices of Blank Rome LLP,
The Chrysler Building, 405 Lexington Avenue, New York, NY 10174 (or at such other location as the Parties may agree or via the
electronic exchange of execution versions of this Agreement and the Transaction Documents and the signature pages thereto via email
by .pdf) on a date and time to be mutually agreed upon by Buyer and the Sellers, not later than five (5) Business Days following
the satisfaction (or written waiver) of the conditions set forth in ARTICLE VI, or at such other date or time as the Parties
may agree in writing. The date and time of the closing are referred to as the “Closing Date.”

    	  

    	 

    

1.4

Payment of the Purchase
Price. At the Closing:

(a)

Buyer shall pay,
or cause to be paid, on behalf of the Sellers and the Acquired Companies, the Closing Costs and the Estimated Closing Debt by wire
transfer of immediately available funds as directed by the Acquired Companies or such third parties at or prior to the Closing;

(b)

Buyer shall pay the
Closing Payment, (i) less the total dollar amount of the payments described in Section 1.4(a), and (ii) plus or minus (without
duplication of the amounts contemplated by the immediately preceding clause (i)) the adjustments contemplated in Sections 1.5
through 1.7, to the respective Sellers, in accordance with their Pro Rata Shares and in such amounts set forth next to each
Seller’s name on Schedule 1.4(b) attached hereto, by wire transfer of immediately available funds pursuant to written
instructions delivered to Buyer prior to the Closing; and

(c)

Buyer shall issue
to the Sellers the Buyer Note, dated as of the Closing Date.

1.5

Net Working Capital
Adjustment. The Closing Payment shall be adjusted (such adjustment may be positive or negative), if at all, on a dollar-for-dollar
basis to the extent that the Net Working Capital is greater than or less than the Target Net Working Capital as set forth below:

(a)

Within ten (10) Business
Days prior to the Closing, but in no event less than three (3) Business Days prior to the Closing, the Sellers shall (or shall
cause the Acquired Companies’ accountants to) prepare and deliver to Buyer a certificate that contains a good faith and reasonable
best estimate of the Net Working Capital as of 11:59 p.m. Eastern Standard Time (“EST”) on the Closing Date
(the “Estimated Net Working Capital”), which Estimated Net Working Capital shall be prepared in accordance with
GAAP using the same accounting methods, standards, policies, practices, classifications, estimation methodologies, assumptions
and procedures as were used to prepare the Financial Statements and as set forth on Schedule 1.5(a). If the Estimated Net
Working Capital exceeds the Target Net Working Capital Ceiling, then the Closing Payment payable to the Sellers at the Closing
pursuant to Section 1.2 and Section 1.4 shall be increased by an amount equal to the amount by which the Estimated
Net Working Capital exceeds the Target Net Working Capital Ceiling. If the Estimated Net Working Capital is less than the Target
Net Working Capital Floor, then the Closing Payment payable to the Sellers at the Closing pursuant to Section 1.2 and Section
1.4 shall be reduced by an amount equal to the amount by which the Target Net Working Capital Floor exceeds the Estimated Net
Working Capital. If the Estimated Net Working Capital is equal to or greater than the Target Net Working Capital Floor and equal
to or less than the Target Net Working Capital Ceiling, then no adjustments shall be made pursuant to this Section 1.5(a).

    	2 

    	 

    

(b)

Buyer shall prepare
and deliver to the Sellers within ninety (90) days after the Closing Date an unaudited consolidated balance sheet of the Acquired
Companies as of 11:59 p.m. EST on the Closing Date (as adjusted, if at all, pursuant to Section 1.5(c) and Section 1.5(d),
the “Closing Balance Sheet”), which shall also set forth a calculation of Net Working Capital determined from
the Closing Balance Sheet (the “Net Working Capital Calculation”) and the amount, if any, by which the Net Working
Capital so determined is less than or greater than the Estimated Net Working Capital (the “Adjustment Calculation”).
The Closing Balance Sheet, the Net Working Capital Calculation and the Adjustment Calculation shall be prepared in accordance with
GAAP using the same accounting methods, standards, policies, practices, classifications, estimation methodologies, assumptions
and procedures as were used by the Acquired Companies to prepare the Financial Statements and as set forth on Schedule 1.5(a).

(c)

On or prior to the
twenty-fifth (25th) day following Buyer’s delivery of the Closing Balance Sheet, the Net Working Capital Calculation
and the Adjustment Calculation, the Sellers may give Buyer a written notice stating in reasonable detail the Sellers’ objections
(an “Objection Notice”) to the Closing Balance Sheet or the determination of the Net Working Capital Calculation
or the Adjustment Calculation. Any Objection Notice shall specify in reasonable detail the dollar amount of any objection and the
reasonable basis therefore. Any determination set forth on the Closing Balance Sheet, the Net Working Capital Calculation or the
Adjustment Calculation that is not specifically objected to in the Objection Notice shall be deemed acceptable and shall be final
and binding upon the Parties upon delivery of the Objection Notice. If the Sellers do not give Buyer an Objection Notice within
such twenty-five (25) day period, then the Closing Balance Sheet, the Net Working Capital Calculation and the Adjustment Calculation
will be conclusive and binding upon the Parties and the Net Working Capital Calculation and the Adjustment Calculation set forth
with the Closing Balance Sheet will constitute the Net Working Capital Calculation and the Adjustment Calculation for purposes
of Section 1.5(b) above.

(d)

Following Buyer’s
receipt of any Objection Notice, Sellers and Buyer shall attempt to negotiate in good faith to resolve such dispute. In the event
that Sellers and Buyer fail to agree on any of the Sellers’ proposed adjustments set forth in the Objection Notice within
thirty (30) days after Buyer receives the Objection Notice, Sellers and Buyer agree that a mutually acceptable Neutral Accounting
Firm (the “Accounting Arbitrator”) shall, within the thirty (30) day period immediately following such failure
to agree, make the final determination of the Net Working Capital in accordance with the terms of this Agreement; provided
that (i) if the Parties are unable to agree on a Neutral Accounting Firm to act as Accounting Arbitrator, Buyer and the Sellers
shall each select a Neutral Accounting Firm and such firms together shall select the Neutral Accounting Firm to act as the Accounting
Arbitrator and (ii) if any Party does not select a Neutral Accounting Firm within ten (10) days of written demand therefor by the
other Party, the Neutral Accounting Firm selected by the other Party shall act as the Accounting Arbitrator. Buyer and the Sellers
each shall provide the Accounting Arbitrator with their respective determinations of the Net Working Capital Calculation. The Accounting
Arbitrator’s determination of the Net Working Capital Calculation in accordance with this Section 1.5 shall be final
and binding on the Sellers and Buyer if such independent determination shall be within the range proposed by Buyer and the Sellers
in the Net Working Capital Calculation and the Objection Notice; provided that if the Accounting Arbitrator’s determination
of the Net Working Capital is outside of the range proposed by Sellers and Buyer in the Net Working Capital Calculation and the
Objection Notice, then the Net Working Capital Calculation that was closer to that of the Accounting Arbitrator shall be final
and binding on the Sellers and Buyer. The scope of the disputes to be resolved by the Accounting Arbitrator shall be limited to
those items or amounts in the Closing Balance Sheet, the Net Working Capital Calculation or the Adjustment Calculation to which
the Sellers objected in the Objection Notice and whether the Closing Balance Sheet or such calculation(s) were done in accordance
with GAAP using the accounting methods, standards, policies, practices, classifications, estimation methodologies, assumptions,
procedures or level of prudence used by the Acquired Companies to prepare the Financial Statements, and whether there were mathematical
errors in the calculation of the Net Working Capital Calculation, and the Accounting Arbitrator is not to make any other determination.
The Accounting Arbitrator shall make its determination based solely on presentations and supporting material provided by the Parties
and not pursuant to any independent review. The fees, costs and expenses of the Accounting Arbitrator shall be paid by the Party
whose Net Working Capital Calculation was different by the greater amount from that of the final determination of the Accounting
Arbitrator.

    	3 

    	 

    

 

(e)

Subject to Section
1.8, if there was no adjustment to the Closing Payment pursuant to Section 1.5(a), and, following the final determination
of the Net Working Capital Calculation pursuant to this Section 1.5:

(i) the Target
Net Working Capital Floor exceeds the Net Working Capital Calculation, then Buyer shall receive from the Sellers, by wire transfer
of immediately available funds an amount equal to the amount by which the Target Net Working Capital Floor exceeds the Net Working
Capital Calculation;

(ii) the Net
Working Capital Calculation exceeds the Target Net Working Capital Ceiling, then Buyer shall pay to the Sellers (based on each
Seller’s Pro Rata Share) by wire transfer of immediately available funds an amount equal to the amount by which the Net Working
Capital Calculation exceeds the Target Net Working Capital Ceiling; and

(iii) the Net
Working Capital Calculation is equal to or less than the Target Net Working Capital Ceiling and equal to or greater than the Target
Net Working Capital Floor, there shall be no adjustment owing pursuant to this Section 1.5(e).

(f)

Subject to Section
1.8, if there was an adjustment that increased the Closing Payment pursuant to Section 1.5(a), and, following the final
determination of the Net Working Capital Calculation pursuant to this Section 1.5:

(i) the Estimated
Net Working Capital exceeds the Net Working Capital Calculation, then Buyer shall receive from the Sellers, by wire transfer of
immediately available funds an amount equal to (A) the amount by which the Estimated Net Working Capital exceeds the greater of
(1) the Net Working Capital Calculation or (2) the Target Net Working Capital Ceiling, plus (B) the amount, if any, by which
the Target Net Working Capital Floor exceeds the Net Working Capital Calculation;

    	4 

    	 

    

 

(ii) the Net
Working Capital Calculation exceeds the Estimated Net Working Capital, then Buyer shall pay to the Sellers (based on each Seller’s
Pro Rata Share) by wire transfer of immediately available funds an amount equal to the amount by which the Net Working Capital
Calculation exceeds the Estimated Net Working Capital; and

(iii) the Net
Working Capital Calculation is equal to the Estimated Net Working Capital, there shall be no adjustment owing pursuant to this
Section 1.5(f).

(g)

Subject to Section
1.8, if there was an adjustment that decreased the Closing Payment pursuant to Section 1.5(a), and, following the final
determination of the Net Working Capital Calculation pursuant to this Section 1.5:

(i) the Estimated
Net Working Capital exceeds the Net Working Capital Calculation, then Buyer shall receive from the Sellers, by wire transfer of
immediately available funds an amount equal to the amount by which the Estimated Net Working Capital exceeds the Net Working Capital
Calculation;

(ii) the Net
Working Capital Calculation exceeds the Estimated Net Working Capital, then Buyer shall pay to the Sellers (based on each Seller’s
Pro Rata Share) by wire transfer of immediately available funds an amount equal to (A) the amount by which the lesser of (1) the
Net Working Capital Calculation or (2) the Target Net Working Capital Floor, exceeds the Estimated Net Working Capital, plus
(B) the amount, if any, by which the Net Working Capital Calculation exceeds the Target Net Working Capital Ceiling; and

(iii) the Net
Working Capital Calculation is equal to the Estimated Net Working Capital, there shall be no adjustment owing pursuant to this
Section 1.5(g).

(h)

Any amount owing
pursuant to Section 1.5(e), Section 1.5(f) or Section 1.5(g) shall include interest on the amount owing at
the Prime Rate (as of the Closing Date) compounded daily from the Closing Date to and including the date of payment.

(i)

Any adjustment amount
due under this Section 1.5 shall be paid pursuant to Section 1.8. The Parties shall treat any payments made pursuant
to this Section 1.5 as an adjustment to the Closing Payment and the Purchase Price for all purposes.

1.6

Cash Adjustment.
The Closing Payment shall be adjusted upward on a dollar-for-dollar basis by the amount of any Cash held by the Acquired Companies
as of the Closing Date as set forth below:

(a)

Within three (3)
Business Days prior to the Closing, the Sellers shall prepare and deliver to Buyer a certificate that contains a good faith and
reasonable best estimate of the Cash of the Acquired Companies as of the close of business on the Closing Date (collectively, the
“Estimated Closing Date Cash”), which Estimated Closing Date Cash shall be prepared using the same methodologies
provided for in Section 1.5(a). The Closing Payment payable to the Sellers at the Closing pursuant to Section 1.4
shall be increased by an amount equal to the Estimated Closing Date Cash.

    	5 

    	 

    

 

(b)

The Estimated Closing
Date Cash shall be reconciled after the Closing Date using the same methodologies provided for in Section 1.5(b) to determine
the actual Cash as of the Business Day before the Closing Date (the “Closing Date Cash Calculation”).

(c)

The mechanisms for
dispute resolution provided for in Section 1.5 shall also govern any dispute as to the Closing Date Cash Calculation.

(d)

Subject to Section
1.8, if the Estimated Closing Date Cash exceeds the Closing Date Cash Calculation, then Buyer shall have the right to be paid
an amount equal to the full amount by which the Estimated Closing Date Cash exceeds the Closing Date Cash Calculation, together
with interest thereon at the Prime Rate (as of the Closing Date) from the Closing Date to and including the date of payment.

(e)

Subject to Section
1.8, if the Closing Date Cash Calculation exceeds the Estimated Closing Date Cash, then Buyer shall pay to Sellers in proportion
to their Pro Rata Shares by wire transfer of immediately available funds an amount equal to the amount by which the Closing Date
Cash Calculation exceeds the Estimated Closing Date Cash, together with interest thereon at the Prime Rate (as of the Closing Date)
from the Closing Date to and including date of payment.

(f)

Any adjustment amount
due under this Section 1.6 shall be paid pursuant to Section 1.8. The Parties shall treat any payments made pursuant
to this Section 1.6 as an adjustment to the Closing Payment and the Purchase Price for all purposes.

1.7

Debt Adjustment.
The Closing Payment shall be adjusted downward on a dollar-for-dollar basis by the amount of any Indebtedness of the Acquired Companies
as of the Business Day before the Closing Date as set forth below; provided, however, that any Indebtedness of the Acquired
Companies satisfied by the Sellers or the Acquired Companies prior to the Closing shall not constitute “Indebtedness”
for purposes of this Section 1.7:

(a)

Within three (3)
Business Days prior to the Closing, the Sellers shall prepare and deliver to Buyer a certificate of the Company that contains a
good faith and reasonable best estimate of the Indebtedness of the Acquired Companies as of the close of business on the Closing
Date (collectively, “Estimated Closing Date Debt”), which Estimated Closing Date Debt shall be prepared using
the same methodologies provided for in Section 1.5(a). The Closing Payment payable to the Sellers at the Closing pursuant
to Section 1.4 shall be decreased by an amount equal to the Estimated Closing Date Debt.

(b)

The Estimated Closing
Date Debt shall be reconciled after the Closing Date using the same methodologies provided for in Section 1.5(b) to determine
the actual Indebtedness as of the Closing Date (the “Closing Date Debt Calculation”).

(c)

The mechanisms for
dispute resolution provided for in Section 1.5 shall also govern any dispute as to the Closing Date Debt Calculation.

    	6 

    	 

    

 

(d)

Subject to Section
1.8, if the Closing Date Debt Calculation exceeds the Estimated Closing Date Debt, then Buyer shall have the right to be paid
an amount equal to the full amount by which the Closing Date Debt Calculation exceeds the Estimated Closing Date Debt, together
with interest thereon at the Prime Rate (as of the Closing Date) from the Closing Date to and including the date of payment.

(e)

Subject to Section
1.8, if the Estimated Closing Date Debt exceeds the Closing Date Debt Calculation, then Buyer shall pay to Sellers in proportion
to their Pro Rata Shares by wire transfer of immediately available funds an amount equal to the amount by which the Estimated Closing
Date Debt exceeds the Closing Date Debt Calculation, together with interest thereon at the Prime Rate (as of the Closing Date)
from the Closing Date to and including date of payment.

(f)

Any adjustment amount
due under this Section 1.7 shall be paid pursuant to Section 1.8. The Parties shall treat any payments made pursuant
to this Section 1.7 as an adjustment to the Closing Payment and the Purchase Price for all purposes.

(g)

The Sellers shall
deliver to Buyer all appropriate payoff letters and shall make arrangements reasonably satisfactory to Buyer to deliver all applicable
UCC-3 termination statements, applications of discharge from the Latvian Commercial Pledges Registry or other documents evidencing
the termination of all Liens held by the lenders under the Indebtedness, all in form and substance reasonably acceptable to Buyer.

1.8

Limitation on Adjustments.

(a)

. Notwithstanding
anything to the contrary in Section 1.5 through Section 1.7, the Parties agree that the reconciliation amounts due
from Buyer to the Sellers and from the Sellers to Buyer pursuant to Section 1.5 through Section 1.7 hereof shall
be aggregated and offset one against the other such that only Buyer, on the one hand, or the Sellers, on the other hand, shall
be required to make payment to the other Party hereunder. Final amounts due under Section 1.5 through Section 1.7
shall be paid no later than five (5) Business Days following the final determination of all such amounts and the aggregation thereof.
If payment is owing to Buyer under this Section 1.8, and such payment is not made (in whole or in part) when due in accordance
with the immediately preceding sentence, Buyer may elect, by delivering written notice to the Sellers, that any such unpaid amount
shall be paid by deemed prepayment of principal (together with all accrued but unpaid interest thereon) under the Buyer Note of
an amount equal to such unpaid amount.

1.9

Seller Closing Documents.
At the Closing, the Sellers shall deliver to Buyer the following:

(a)

the stock certificates
representing the Common Stock held by the Sellers, endorsed in blank or accompanied by duly executed assignment documents;

(b)

a certified copy
of the certificate of incorporation (and each amendment thereto) of the Company from the Secretary of State of the State of New
York;

(c)

the resignations
of all of the directors and officers of each Acquired Company, effective as of the Closing;

    	7 

    	 

    

 

(d)

a certificate, dated
not more than ten (10) Business Days prior to the Closing, as to the good standing of the Company from the Secretary of State of
New York;

(e)

a list of employees
terminated by any Acquired Company in the ninety (90) days preceding the Closing pursuant to Section 5.14 hereof;

(f)

appropriate payoff
letters or other documents evidencing the termination of Liens pursuant to Section 1.7(g) hereof;

(g)

a consulting agreement
or employment agreement executed by each of the Sellers, in form and substance acceptable to Buyer in the exercise of good faith;

(h)

any approvals or
consents of Government Entities and third parties as set forth on Schedule 1.9(h);

(i)

evidence reasonably
satisfactory to Buyer that the Lease Agreement, No. S-114/04, for non-residential premises located at JSC “Dambis”
address 24a, Building 31, Ganibu Dambis, Riga, dated as of December 10, 2004, between JSC “Dambis” and the Subsidiary,
as amended thereafter, has been registered in the Latvian Land Registry; and

(j)

all other documents,
certificates, instruments or writings required to be delivered by the Sellers at or prior to the Closing pursuant to this Agreement.

1.10

Buyer Closing Documents.
At the Closing, Buyer shall deliver to the Sellers the following:

(a)

wire transfers representing
each Seller’s Pro Rata Share of the Closing Payment determined in accordance with Section 1.4, as adjusted pursuant
to Section 1.5 through Section 1.8;

(b)

a copy of the resolutions
duly adopted by the board of directors and the stockholders of Buyer authorizing Buyer’s execution, delivery and performance
of each Transaction Document to which Buyer is a party and the consummation of the Transactions, as in effect as of the Closing,
certified, on behalf of Buyer, by an officer of Buyer (which such certification shall include a representation as to the incumbency
and signatures of the officers of Buyer executing the Transaction Documents);

(c)

a certificate, dated
not less than ten (10) Business Days prior to the Closing, from the Secretary of State of the State of Delaware as to the good
standing of Buyer; and

(d)

all other documents,
certificates, instruments or writings required to be delivered by Buyer at or prior to the Closing pursuant to this Agreement.

1.11

Further Actions
to be Taken at Closing. Each of the Parties agrees and undertakes to execute and deliver any other agreements, documents, certificates
or other instruments reasonably necessary to consummate the transactions contemplated by this Agreement and the other Transaction
Documents, as reasonably requested by the other Party.

    	8 

    	 

    

Article
II

REPRESENTATIONS
AND WARRANTIES REGARDING BUYER

Except as set forth
on the Buyer Disclosure Schedule, Buyer hereby represents and warrants to each Seller that as of the date hereof, and as of Closing
(except for representations and warranties that speak as of an earlier date or period):

2.1

Organization; Corporate
Power and Authorization. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the
State of Delaware. Buyer has the requisite corporate power and authority necessary to enter into, deliver and carry out its obligations
pursuant to each of the Transaction Documents to which it is a party. Buyer’s execution, delivery and performance of each
Transaction Document to which it is a party has been or will be duly authorized by Buyer and, except as set forth on the Buyer
Disclosure Schedule, no other corporate proceeding on the part of Buyer will be necessary to authorize the Transaction Documents
and the Transactions.

2.2

Binding Effect and
Noncontravention.

(a)

Each Transaction
Document to which Buyer is a party constitutes, or when executed will constitute, a valid and binding obligation of Buyer enforceable
against Buyer in accordance with its terms, except as such enforceability may be limited by (i) applicable insolvency, bankruptcy,
reorganization, moratorium or other similar Laws affecting creditors’ rights generally; and (ii) applicable equitable principles
(whether considered in an Action or Proceeding at Law or in equity).

(b)

Except as set forth
on the Buyer Disclosure Schedule, the execution, delivery and performance by Buyer of the Transaction Documents to which Buyer
is a party and the consummation of the Transactions do not and shall not (with or without notice or lapse of time or both): (i)
conflict with or result in a breach of the terms, conditions or provisions of the charter or bylaws of Buyer; (ii) result in the
imposition of any Lien upon any of the properties or assets of Buyer, cause the acceleration or material modification of any obligation
under, create in any party the right to terminate, constitute a default or breach of, or violate or conflict with the terms, conditions
or provisions of any material Contract to which Buyer is a party or by which Buyer is bound; (iii) result in a material breach
or violation by Buyer of any of the terms, conditions or provisions of any Law or Order to which Buyer or any of its properties
or assets is subject; or (iv) require any authorization, consent, approval, exemption or other action by or declaration or notice
to or registration with any third Person or Government Entity.

2.3

Broker Fees.
Except as set forth on the Buyer Disclosure Schedule, Buyer has no Liability to pay any fees or commissions to any broker, finder,
or agent with respect to the Transactions for which the Sellers could become liable or obligated.

2.4

No Litigation.
There is no Action or Proceeding pending or, to Buyer’s Knowledge, threatened against Buyer or its properties, assets or
businesses, or Order to which Buyer is subject which would restrict the ability of Buyer to consummate the Transactions or otherwise
perform its obligations under the Transaction Documents.

    	9 

    	 

    

2.5

Investment.
Buyer is acquiring the Purchased Shares for its own account, for investment only, and not with a view to any resale or public distribution
thereof. Buyer shall not offer to sell or otherwise dispose of the Purchased Shares in violation of any Law applicable to any such
offer, sale or other disposition. Buyer acknowledges that (a) the Purchased Shares have not been registered under the Securities
Act, or any state securities Laws; (b) there is no public market for the Purchased Shares and there can be no assurance that a
public market will develop; and (c) Buyer must bear the economic risk of its investment in the Purchased Shares for an indefinite
period of time. Buyer is an “accredited investor” within the meaning of Rule 501 of the Securities Act as presently
in effect, and has knowledge and experience in financial and business matters such that it is capable of evaluating the merits
and risks of acquiring and holding the Purchased Shares.

2.6

Acknowledgement
by Buyer.

(a)

Buyer has conducted
its own independent review and analysis of the Evaluation Material, the Acquired Companies, the Business and the assets, Liabilities,
results of operations and financial condition of the Acquired Companies, and acknowledges that Buyer has been provided access to
the personnel, properties, premises and records of the Acquired Companies for such purpose and that Buyer and its Representatives
have been provided with the opportunity to ask questions of the officers and management employees of the Acquired Companies and
to acquire such additional information about the Business and the assets, Liabilities, results of operations and financial condition
of the Acquired Companies as Buyer and its Representatives have requested. Buyer is informed and sophisticated participants in
the Transactions and has undertaken such investigation, and has been provided with and has evaluated such documents and information,
as it has deemed necessary in connection with the execution, delivery and performance of this Agreement and the other Transaction
Documents and the consummation of the Transaction. With respect to any projection or forecast delivered by or on behalf of the
Acquired Companies to Buyer, Buyer acknowledges that (A) there are uncertainties inherent in attempting to make such projections
and forecasts; (B) the accuracy and correctness of such projections and forecasts may be affected by information that may become
available through discovery or otherwise after the date of such projections and forecasts; and (C) they are familiar with each
of the foregoing.

(b)

Buyer acknowledges
that it is consummating the Transactions without any representation or warranty, express or implied, by the Sellers, their Affiliates
or any other Person except as expressly set forth in ARTICLE III or ARTICLE IV (as modified by the Disclosure Schedules).
Further, except for the specific representations and warranties expressly made by the Sellers in ARTICLE III or ARTICLE
IV (as modified by the Disclosure Schedules), Buyer specifically disclaims that it is relying upon or has relied upon any other
representations or warranties that may have been made by the Sellers, their Affiliates or any other Person, and acknowledges and
agrees that the Sellers have specifically disclaimed and do hereby specifically disclaim any such other representation or warranty
made by the Sellers, their Affiliates or any other Person.

    	10 

    	 

    

2.7

SEC Documents.
Buyer has made available to the Sellers Buyer’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015, including
the financial statements contained therein, its Quarterly Reports on Form 10-Q for the fiscal quarters ended September 30, 2015,
December 31, 2015 and March 31, 2016, and its Current Reports on Form 8-K filed since June 30, 2015 (collectively, the “LPTH
SEC Documents”). The LPTH SEC Documents were true and complete in all material respects as at their respective dates,
did not contain any untrue statement of a material fact nor omit to state any material fact required to be stated therein or necessary
to make the statements contained therein, in light of the circumstances in which they were made, not misleading. Since the filing
of its Annual Report on Form 10-K for the fiscal year ended June 30, 2015, there has not been any material adverse change in Buyer’s
financial condition, results of operations or liabilities not specifically disclosed in the LPTH SEC Documents.

2.8

Solvency. Immediately
after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall: (a) be able to pay its debts as
they become due in the Ordinary Course of Business; (b) own property that has a fair saleable value greater than the amounts required
to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to
carry on its business.

Article
III

REPRESENTATIONS
AND WARRANTIES REGARDING THE SELLERS

Except as set forth
on the Seller Disclosure Schedule, each Seller, severally and not jointly, hereby represents and warrants to Buyer that as of the
date hereof, and as of Closing (except for representations and warranties that speak as of an earlier date or period):

3.1

Power and Authorization.
Each Seller has the requisite power, authority and capacity to enter into, deliver and perform his obligations pursuant to each
of the Transaction Documents to which such Seller is a party. Each Seller’s execution, delivery and performance of each Transaction
Document to which he is a party has been duly authorized by such Seller.

3.2

Binding Effect and
Noncontravention.

(a)

Each Transaction
Document to which each Seller is a party constitutes, or when executed will constitute, a valid and binding obligation of such
Seller enforceable against such Seller in accordance with its terms, except as such enforceability may be limited by (i) applicable
insolvency, bankruptcy, reorganization, moratorium or other similar Laws affecting creditors’ rights generally and (ii) applicable
equitable principles (whether considered in an Action or Proceeding at Law or in equity).

(b)

Except in the case
of clause (iii) pursuant to any Contract that is terminated in connection with Closing, the execution, delivery and performance
by each Seller of the Transaction Documents to which such Seller is a party and the consummation of the Transactions do not and
shall not (with or without notice or lapse of time or both): (i) result in the imposition of any Lien upon any of the properties
or assets of such Seller, cause the acceleration or material modification of any obligation under, create in any party the right
to terminate, constitute a default or breach of, or violate or conflict with the terms, conditions or provisions of any material
Contract to which such Seller is a party or by which such Seller is bound; (ii) result in a material breach or material violation
by such Seller of any of the terms, conditions or provisions of any Law or Order to which such Seller or any of its properties
or assets is subject; or (iii) require any authorization, consent, approval, exemption or other action by or declaration or notice
to or registration with any third Person or Government Entity.

    	11 

    	 

    

3.3

Capital Stock.
Each Seller holds of record, owns beneficially and has good and marketable title to all of the Common Stock set forth next to such
Seller’s name on Section 4.2 of the Company Disclosure Schedule, free and clear of any and all Liens other than Permitted
Liens. No Seller is a party to any voting trust, proxy or other agreement or understanding with respect to the voting of any Common
Stock that will survive the Closing Date.

Article
IV

REPRESENTATIONS
AND WARRANTIES REGARDING THE ACQUIRED COMPANIES

Except as set forth
on the Company Disclosure Schedule, the Sellers hereby jointly and severally represent and warrant to Buyer that as of the date
hereof, as of Closing (except for representations and warranties that speak as of an earlier date or period):

4.1

Organization; Qualification;
Corporate Power and Authorization. The Company is a corporation duly incorporated and subsisting or in good standing under
the Laws of the jurisdiction of its incorporation and the Subsidiary is duly organized and subsisting or in good standing under
the Laws of the jurisdiction of its formation. Each Acquired Company is duly authorized to conduct business and is in good standing
under the Laws of each jurisdiction where such authorization is required, except where the failure to be so authorized or to be
in good standing would not result in a Company Material Adverse Change. The Company has the requisite corporate power and authority
necessary to enter into, deliver and carry out its obligations pursuant to this Agreement. The Company’s execution and delivery
of this Agreement have been duly authorized by the Company and no other corporate proceeding on the part of the Company will be
necessary to authorize this Agreement and the consummation of the Transactions.

4.2

Capitalization;
Subsidiary.

(a)

The entire authorized
capital stock of the Company consists of 200 shares of Common Stock. Except for the Common Stock, there are no other equity or
other securities of the Company issued or outstanding. All of the issued and outstanding shares of the Common Stock have been duly
authorized, are validly issued, fully paid, and non-assessable, and are held of record and beneficially by the Sellers and are
not subject to any preemptive or subscription rights. There are no outstanding or authorized options, warrants, purchase rights,
subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require the Company to issue,
sell, or otherwise cause to become outstanding any of its capital stock. Except as set forth on the Company Disclosure Schedule,
there are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to
the Company. There are no voting trusts, proxies or other agreements or understandings with respect to the voting of any Common
Stock that will survive the Closing Date.

    	12 

    	 

    

(b)

The Sellers have
delivered or made available to Buyer true, correct and complete copies of the organizational documents of the Acquired Companies.
None of the Acquired Companies is in default under or in violation of any provision of its respective organizational documents.

(c)

Except as set forth
on the Company Disclosure Schedule, the Company holds of record, owns beneficially and has good and marketable title to all of
the outstanding equity interests of the Subsidiary of the Company. None of the Acquired Companies controls, directly or indirectly,
or has any direct or indirect equity participation in any Person other than the Subsidiary.

4.3

Binding Effect and
Noncontravention.

(a)

This Agreement constitutes
a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability
may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar Laws affecting creditors’
rights generally and (ii) applicable equitable principles (whether considered in an Action or Proceeding at Law or in equity).

(b)

Except as otherwise
set forth in the Company Disclosure Schedule and except, in the case of clause (iv), pursuant to any Contract that is terminated
in connection with Closing, the consummation of the Transactions do not and shall not (with or without notice or lapse of time
or both): (i) result in the imposition of any Lien upon any of the properties or assets of any Acquired Company, (ii) cause the
acceleration or material modification of any obligation under, create in any party the right to terminate, constitute a default
or breach of, or violate or conflict with the terms, conditions or provisions of any Material Contract; (iii) result in a material
breach or material violation by an Acquired Company of any of the terms, conditions or provisions of any Law or Order to which
an Acquired Company or any of its properties or assets is subject; or (iv) require any authorization, consent, approval, exemption
or other action by or declaration or notice to or registration with any third Person or Government Entity; provided, however, in
the cause of clauses (ii) and (iv), except to the extent (x) that any such acceleration, modification, creation, default, breach,
violation or conflict, or failure to obtain any authorization, consent, approval or exemption, will not, individually or in the
aggregate, subject the Acquired Companies to any Liability in excess of $75,000, and (y) for Contracts that are terminated in connection
with the Closing.

4.4

Financial Statements.

(a)

Attached to the Company
Disclosure Schedule are the following financial statements of the Acquired Companies (collectively, the “Financial Statements”):

(i)

the Acquired Companies’
audited balance sheets and related statements of income and cash flows for the years ended December 31, 2014 and 2015 (the “Audited
Financial Statements”),

(ii)

the Subsidiary’s
audited balance sheets and related statements of income and cash flows for the years ended December 31, 2014 and 2015 (the “Subsidiary
Financial Statements”), and

    	13 

    	 

    

 

(iii)

the Acquired Companies’
unaudited consolidated balance sheets and related statements of income and cash flows as prepared by management for June 30, 2016
(the “Interim Financial Statements”).

(b)

Each of the Audited
Financial Statements and the Interim Financial Statements (including the notes thereto, as applicable) has been prepared in accordance
with GAAP, consistently applied, and fairly presents in all material respects the consolidated financial condition of the Acquired
Companies, taken as a whole, as of the respective dates thereof and the results of the Acquired Companies’ operations for
the periods specified, except as disclosed therein; provided that (i) the Financial Statements do not contain all footnotes
required under GAAP and (ii) the Acquired Companies’ unaudited consolidated balance sheets and related statements of income
and cash flows as prepared by management for June 30, 2016 are subject to normal year-end audit adjustments; provided, further,
that the Subsidiary Financial Statements were prepared in accordance with the International Financial Reporting Standards and,
in connection with the Transactions, have been converted to GAAP.

(c)

Except as set forth
on the Company Disclosure Schedule, the Subsidiary Financial Statements have been prepared in accordance with the International
Financial Reporting Standards (and the interpretations thereto, as promulgated by the International Accounting Standards Board),
consistent with the past practices of the Subsidiary and present fairly in all material respects the financial position of the
Subsidiary as of the respective dates thereof.

4.5

Events Subsequent
to the Latest Balance Sheet. Except as set forth in the Latest Balance Sheet, there has not been any Company Material Adverse
Change. Without limiting the generality of the foregoing, except as set forth on the Company Disclosure Schedule or in the Latest
Balance Sheet, since the date of the Latest Balance Sheet:

(a)

the Acquired Companies
have not incurred any material obligations required by GAAP, consistently applied, to be reflected or reserved against on a balance
sheet of the Acquired Companies;

(b)

the Acquired Companies
have not sold, leased, transferred, or assigned any of its material assets, tangible or intangible, other than in the Ordinary
Course of Business;

(c)

the Acquired Companies
have not entered into any agreement, lease, or license (or series of related agreements, leases, and licenses) either involving
more than $75,000 or outside the Ordinary Course of Business;

(d)

the Acquired Companies
have not entered into, committed itself to, or completed, any transaction with any Seller or any of their Affiliates outside the
Ordinary Course of Business, or at other than arm’s length terms;

(e)

the Acquired Companies
have not accepted liability for any Liability of any Seller or any of their Affiliates, or provided any guarantee or other commitment
in favor of any Seller or any of their Affiliates;

    	14 

    	 

    

 

(f)

no Person (including
the Acquired Companies) has accelerated, terminated, modified, or cancelled any agreement, lease, or license (or series of related
agreements, leases, and licenses) to which an Acquired Company is a party or by which it is bound either involving more than $75,000
or outside the Ordinary Course of Business;

(g)

no Lien (other than
Permitted Liens) has been imposed upon any of the assets, tangible or intangible of an Acquired Company;

(h)

the Acquired Companies
have not made any capital expenditure (or series of related capital expenditures) either involving more than $75,000 or outside
the Ordinary Course of Business;

(i)

the Acquired Companies
have not made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other Person (or series
of related capital investments, loans, and acquisitions) either involving more than $75,000 or outside the Ordinary Course of Business;

(j)

the Acquired Companies
have not issued any debt security or created, incurred, assumed, or guaranteed any Indebtedness either involving more than $75,000
or outside the Ordinary Course of Business;

(k)

the Acquired Companies
have not (i) delayed or postponed the payment of accounts payable and other Liabilities outside the Ordinary Course of Business,
(ii) accelerated the collection of accounts receivable outside the Ordinary Course of Business, (iii) materially increased its
inventory levels outside the Ordinary Course of Business or (iv) materially increased any reserve on its balance sheet;

(l)

the Acquired Companies
have not cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) either involving
more than $75,000 or outside the Ordinary Course of Business;

(m)

the Acquired Companies
have not granted any license, sublicense or assignment of any rights under or with respect to any Intellectual Property Rights
or has not granted any consents or permission to use or entered into any coexistence agreement with respect to any Intellectual
Property Rights, in each case outside the Ordinary Course of Business;

(n)

there has been no
amendment, modification or other change made or authorized in any of the organizational documents of the Acquired Companies;

(o)

the Acquired Companies
have not experienced any damage, destruction, or loss (whether or not covered by insurance) to its property in an amount in excess
of $75,000;

(p)

the Acquired Companies
have not made any loan in excess of $7,500, to, or entered into any other transaction with, any of its shareholders, officers,
directors or employees outside the Ordinary Course of Business;

    	15 

    	 

    

 

(q)

the Acquired Companies
have not entered into any employment contract or collective bargaining agreement, written or oral, or modified any existing such
contract nor made any other change in employment terms for any of its shareholders, officers, directors or employees outside the
Ordinary Course of Business;

(r)

the Acquired Companies
have not granted any material increase in the base compensation of any of its shareholders, officers, directors or employees outside
the Ordinary Course of Business; or

(s)

the Acquired Companies
have not adopted, amended, modified, or terminated any Employee Plan, Employee Benefit Arrangement or any material Contract for
the benefit of any of its shareholders, officers, directors or employees.

4.6

Undisclosed Liabilities;
Indebtedness. No Acquired Company has any Liability (and, to the Knowledge of the Sellers, there is no basis for any present
or future Action or Proceeding against an Acquired Company giving rise to any material Liability), except for (a) Liabilities reflected
in the Financial Statements and (b) Liabilities that have arisen after the date of the Latest Balance Sheet in the Ordinary Course
of Business (none of which results from, arises out of, relates to, is in the nature of, or was caused by any breach of Contract,
breach of warranty, tort, infringement, or violation of Law).

4.7

Title to and Sufficiency
of Assets. Except as set forth on the Company Disclosure Schedule, the Acquired Companies have
good and valid title to, or a valid leasehold interest in, the assets used by them, located on any premises of the Acquired Companies
or elsewhere, reflected on the Latest Balance Sheet or acquired since the date thereof (other than assets disposed of in the ordinary
course of business since the date of the Latest Balance Sheet or assets permitted to be distributed to the Sellers or their Affiliates
prior to the Closing pursuant to this Agreement), free and clear of any and all Liens other than Permitted Liens. Neither Seller
nor any Affiliate of any Seller (other than the Acquired Companies) owns any material assets or rights used in the business of
the Acquired Companies. The Acquired Companies have rights to all material assets, tangible and intangible, of any nature whatsoever,
necessary to operate its business in the manner presently operated by them.

4.8

Compliance with
Laws.

(a)

Except with regard
to the tax matters addressed in Section 4.9, environmental matters addressed in Section 4.10, employee and labor
relations matters addressed in Section 4.14, employee benefit matters addressed in Section 4.15, government contract
matters addressed in Section 4.16, export control matters addressed in Section 4.17 and product warranty matters
discussed in Section 4.23, each of the Acquired Companies has complied, in all material respects, with all Laws and Orders
applicable to the Business. None of the Acquired Companies has received written (or, to the Knowledge of the Sellers, oral) notice
alleging any violations of applicable Laws within the twelve (12) month period prior to the date hereof.

(b)

The Acquired Companies
hold all Permits that are material to their business. All such Permits have been duly obtained and are valid and in full force
and effect and have been listed in the Company Disclosure Schedule. There is no pending, or to the Knowledge of the Sellers, threatened,
Action or Proceeding to revoke, terminate, cancel, suspend, revise or otherwise declare any such Permit invalid. Neither of the
Acquired Companies has violated any such Permits in any material respect. The consummation of the transactions contemplated hereby
will not result in the termination, cancellation, suspension, restriction or violation of any material Permit.

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4.9

Tax Matters.

(a)

The Acquired Companies
have filed (or will have filed) all applicable Tax Returns that they were required to file on or before the Closing Date and have
paid all Taxes shown thereon as owing, or have adequately provided for such Taxes on the Financial Statements. All such Tax Returns
were true, correct and complete in all material respects. Except as set forth on the Company Disclosure Schedule, the Acquired
Companies are not currently the beneficiary of any extension of time within which to file any Tax Return that has continuing effect.
Except as set forth on the Company Disclosure Schedule, during the five (5) year period prior to the date hereof, no deficiencies
for any Tax have been proposed in writing by any Tax authority against the Acquired Companies. There are no Liens with respect
to Taxes upon any of the properties or assets, real or personal, tangible or intangible of the Acquired Companies (other than Permitted
Liens).

(b)

There is no material
dispute or claim concerning any Tax Liability of the Acquired Companies either (i) claimed or raised by any Tax authority in writing
or (ii) to the Knowledge of the Sellers, based upon personal contact with any agent of such Tax authority.

(c)

The Sellers have
made available to Buyer true and complete copies of all Tax Returns, examination reports, and statements of deficiencies assessed
against, or agreed to by the Acquired Companies since December 31, 2012. Except as set forth on the Company Disclosure Schedule,
none of the Acquired Companies has been subject to an audit or administrative, judicial, or other proceeding relating to Taxes.

(d)

The Acquired Companies
are not a party to any tax allocation or sharing agreement.  To the Knowledge of the Sellers, the Acquired Companies have
not been a member of an Affiliated Group filing a consolidated federal Tax Return.

(e)

Except as set forth
on the Company Disclosure Schedule, the Acquired Companies have not agreed to make, nor are any of them required to make, any adjustment
under Section 481(a) of the Code (or any similar provision of applicable state, local or foreign Law) by reason of a change in
accounting method or otherwise, and the Internal Revenue Service has not proposed any such adjustment or change in accounting method. 
The Acquired Companies will not be required to include any item of income in, or exclude any item of deduction from, taxable income
for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (i) “closing agreement”
as described in Section 7121 of the Code (or any corresponding provision of state, local or foreign income Tax Law); (ii) installment
sale or open transaction disposition made on or prior to the Closing Date; or (iii) prepaid amount received on or prior to the
Closing Date.

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(f)

None of the Acquired
Companies has been the “distributing company” (within the meaning of Section 355(a)(1) of the Code) or the “controlled
corporation” (within the meaning of Section 355(a)(1) of the Code) (i) within the two-year period ending as of the date of
this Agreement or (ii) in a distribution that could otherwise constitute part of a “plan” or “series of transactions”
(within the meaning of Section 355(e) of the Code) in conjunction with this Agreement.

(g)

The Acquired Companies
have complied in all material respects with all obligations to withhold Taxes and have withheld from amounts paid or owing to any
employee, independent contractor, creditor, stockholder, or other third party and paid over to the proper Tax authority all amounts
required to have been withheld and paid over under the applicable Tax laws.

(h)

None of the Acquired
Companies has made any payments, is obligated to make any payments, and is a party to any Contract that could obligate it to make
any payments that will not be deductible under Code Sections 280G as a result of the consummation of the transactions contemplated
by this Agreement.

(i)

The Acquired Companies
have not engaged in any transaction identified as a “reportable transaction” for purposes of Section 1.6011-4(b) of
the treasury regulations promulgated under the Code.

(j)

Notwithstanding anything
to the contrary contained in this Agreement, the representations and warranties contained in this Section 4.9 are the sole
representations and warranties with respect to tax matters of the Acquired Companies.

4.10

Environmental Matters.

(a)

The Acquired Companies
are, and during the five (5) year period prior to the date hereof have been, in compliance in all material respects with all applicable
Environmental Laws. Without limiting the generality of the foregoing, the Acquired Companies have obtained, and are, and during
the five (5) year period prior to the date hereof have been, in compliance, in all material respects, with all Permits that are
required pursuant to Environmental Laws for the occupation of its facilities and the operation of its business and all such Permits
are valid and in full force and effect. All such Permits required under any Environmental Laws are listed in the Company Disclosure
Schedule and true, correct and complete copies of such Permits have been delivered to Buyer.

(b)

None of the Acquired
Companies has received written (or, to the Knowledge of the Sellers, oral) notice of any violations of applicable Environmental
Laws relating to the operation of the Business. There are no claims arising under or related to applicable Environmental Laws (“Environmental
Claims”) pending or, to the Knowledge of the Sellers, threatened against any of the Acquired Companies or against any
Person whose liability for any Environmental Claim has been retained or assumed by any Acquired Company or any real property which
any Acquired Company owns, leases or operates.

(c)

No Acquired Company
has treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled or released any Hazardous Materials
in a manner that has given rise to any Environmental Claim. There are no underground storage tanks on the facilities operated by
the Acquired Companies.

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(d)

Notwithstanding anything
to the contrary contained in this Agreement, the representations and warranties contained in this Section 4.10 are the sole
representations and warranties with respect to environmental matters of the Acquired Companies.

4.11

Intellectual Property.

(a)

Except as set forth
on the Company Disclosure Schedule, each Acquired Company is the sole owner or has the right to use pursuant to license, sublicense,
agreement, or permission on the basis of license agreements all Intellectual Property Rights necessary for the operation of its
business as it is currently conducted. None of the Company Intellectual Property Rights are licensed to an Acquired Company by
any Seller or any of its Affiliates and none is licensed by an Acquired Company to any Seller or any of its Affiliates. All issuance,
renewal, maintenance and other fees and payments that are or have become due with respect to Company Intellectual Property Rights
on or prior to the Closing have been timely paid by or on behalf of the Company, or accrued for in the Financial Statements.

(b)

To the Knowledge
of the Sellers, no Acquired Company has interfered with, infringed upon or misappropriated any Intellectual Property Rights of
third parties. No Acquired Company has received in the last five (5) years any written (or, to the Knowledge of the Sellers, oral)
charge, complaint, claim, demand, or notice alleging any such interference, infringement, misappropriation, or violation (including
any claim that an Acquired Company must license or refrain from using any Intellectual Property Rights of any third party). To
the Knowledge of the Sellers, no third party has interfered with, infringed upon or misappropriated any Intellectual Property Rights
of an Acquired Company.

(c)

The Company Disclosure
Schedule sets forth a true and complete list of all: (i) each patent or registration that has been issued to an Acquired Company,
each pending patent application or application for registration which an Acquired Company has made, (ii) each trade name and unregistered
trademark, service mark, trade dress and logo owned and/or used by an Acquired Company, (iii) each copyright and all applications,
registrations and renewals in connection with any copyright owned and/or used by an Acquired Company, (iv) any other Intellectual
Property Right owned and/or used by an Acquired Company that is registered or pending registration anywhere in the world, (v) each
license, assignment, Contract, consent or other permission that an Acquired Company has granted to any third party with respect
to its Intellectual Property Rights (together with any exceptions) and (vi) all material Intellectual Property Right licenses,
assignments, Contracts, consents or other permissions granted to an Acquired Company relating to the Intellectual Property Rights
of any third party (other than off-the-shelf software with a total annual replacement cost and/or license fee of less than $25,000),
and identifies the owner thereof. The Acquired Companies have no such patents, registrations, applications, licenses, assignments,
Contracts, or permissions (as amended to date), or any other written documentation evidencing ownership and prosecution of each
such item. With respect to each item of Intellectual Property Rights used by an Acquired Company and except as disclosed in the
Company Disclosure Schedule:

(i)

the item is valid,
subsisting, enforceable and in full force and effect;

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(ii)

(A) with respect to
the Company Intellectual Property Rights, the item is not subject to any outstanding Order, and (B) with respect to the Intellectual
Property Rights licensed by an Acquired Company, to the Knowledge of the Sellers, the item is not subject to any outstanding Order;

(iii)

(A) with respect to
the Company Intellectual Property Rights, no Action is pending or, to the Knowledge of the Sellers, is threatened that challenges
the legality, validity, enforceability, use, or ownership of the item, and (B) with respect to the Intellectual Property Rights
licensed by an Acquired Company, to the Knowledge of the Sellers, no Action is pending or is threatened that challenges the legality,
validity, enforceability, use, or ownership of the item; and

(iv)

no Acquired Company
has indemnified any Person for or against any interference, infringement, misappropriation, or other conflict with respect to the
item, other than pursuant to contractual protections entered into in the Ordinary Course of Business.

(d)

The Company has taken
all commercially reasonable precautions and actions to protect the proprietary nature of each material item of Company Intellectual
Property Rights, and to maintain in confidence all material trade secrets and Confidential Information of the Company’s business
comprising a part thereof.

(e)

Except as set forth
on the Company Disclosure Schedule, no open source materials are currently utilized in any way by an Acquired Company in the development
or use of any Intellectual Property Rights owned and/or used by it.

(f)

Notwithstanding anything
to the contrary contained in this Agreement, the representations and warranties contained in this Section 4.11 are the sole
representations and warranties with respect to intellectual property matters of the Acquired Companies.

4.12

Real Estate; Tangible
Assets.

(a)

None of the Acquired
Companies owns any real property.

(b)

The Company Disclosure
Schedule sets forth all real property that each of the Acquired Companies leases or subleases from any other Person (“Leased
Real Property”). With respect to each lease and sublease listed on the Company Disclosure Schedule, (i) each of the Acquired
Companies (as applicable) has a good and valid leasehold interest, free and clear of any and all Liens other than Permitted Liens
and (ii) each lease or sublease is the legal, valid, binding and enforceable obligation of the applicable Acquired Company and
is in full force and effect. The Company Disclosure Schedule lists the street address of each parcel of Leased Real Property, and
provides a list, as of the date of this Agreement, of all leases for each parcel of Leased Real Property. True, correct and complete
copies of all such leases have been delivered to Buyer.

(c)

No Acquired Company
is party to any Contract that would provide any Person (other than the Acquired Companies) the contractual right to use or occupy,
and no Person (other than the Acquired Companies) is using or occupying, any portion of the Leased Real Property.

    	20 

    	 

    

 

(d)

All facilities located
on the Leased Real Property (i) have received all approvals of Government Entities (including Permits) required in connection with
the ownership or operation thereof, (ii) have been operated and maintained in accordance with applicable Laws in all material respects,
and (iii) to the Knowledge of the Sellers, are in compliance with all applicable zoning and building Laws.

(e)

No real estate other
than the Leased Real Estate is currently used by the Acquired Companies to conduct their business as conducted on the date hereof
or on the Closing Date. The Leased Real Estate, and the buildings and other fixtures thereon, have been properly maintained in
all material respects, are in good order and repair (normal wear and tear excepted), are fit for the intended use and are in a
condition adequate to conduct the business of the Acquired Companies as currently conducted.

(f)

Each tangible asset
of the Acquired Companies has been maintained in accordance with normal industry practice, is in good operating condition and repair
(subject to normal wear and tear), is suitable for the purposes for which it presently is used and is located at the Leased Real
Property.

4.13

Litigation.
There is no (a) outstanding Order to which an Acquired Company or any of its assets or property are subject, (b) Action or Proceeding
pending or, to the Knowledge of the Sellers, threatened against any of the Acquired Companies by or before any Government Entity,
or (c) Action or Proceeding pending or, to the Knowledge of the Sellers, threatened against any of the Acquired Companies which
would give rise to any right of indemnification on the part of any officer, manager, employee or agent of any Acquired Company.

4.14

Employee and Labor
Relations.

(a)

The Company Disclosure
Schedule sets forth a true and complete list as of June 30, 2016 of (i) the employees employed by the Acquired Companies having
an annual base salary in calendar year 2016 of $75,000 or more, and (ii) the rate of all compensation due to be paid by the Acquired
Companies to each such employee in calendar year 2016, plus any bonus, contingent or deferred compensation related to calendar
year 2016. To the Knowledge of the Sellers, no employee listed on the Company Disclosure Schedule in connection with this Section
4.14(a) has indicated to an Acquired Company an intention to terminate employment with any of the Acquired Companies. No employee
listed on the Company Disclosure Schedule in connection with this Section 4.14(a), as of the date of this Agreement is on
leave of absence, workers’ compensation, family or medical leave, long or short-term disability or any other type of extended
leave, other than holiday, paid time off or sick days taken in the Ordinary Course of Business by any such employee.

(b)

The Acquired Companies
have complied in all material respects with all applicable Laws relating to employment practices. Except as set forth on the Company
Disclosure Schedule, the Acquired Companies do not have any temporary staffing or similar arrangements.

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(c)

There has not been
pending or existing during the twelve (12) month period preceding the date of this Agreement any strike, slowdown, work stoppage
or lockout involving the Acquired Companies.

(d)

As of the date of
this Agreement, there is no unfair labor practice charge or complaint against the Acquired Companies pending before the National
Labor Relations Board or similar governmental agency outside of the United States, and to the Knowledge of the Sellers, no such
charge or complaint has been made against the Acquired Companies during the twelve (12) months prior to the date of this Agreement.

(e)

No application or
petition for an election of or for certification of a collective bargaining agent relating to the Acquired Companies is pending
as of the date of this Agreement.

(f)

There has been no
charge of discrimination filed against any Acquired Company with the Equal Employment Opportunity Commission or similar Government
Entity during the last twelve (12) months prior to the date of this Agreement.

4.15

Employee Plans.

(a)

The Company Disclosure
Schedule sets forth each of the Employee Plans and Employee Benefit Arrangements. The Acquired Companies have made available to
Buyer currently effective copies of the Employee Plans and all amendments thereto, together with, where applicable, each Employee
Plan’s summary plan description and any summaries of material modifications thereto.

(b)

Neither the Acquired
Companies, nor any other Person or entity that, together with the Acquired Companies is treated as a single employer under Section
414(b) or (c) of the Code or Section 4001 of ERISA, has, during the six (6) year period preceding the Closing Date, incurred (i)
any Liability under Title IV of ERISA arising in connection with the termination of any plan covered or previously covered by Title
IV of ERISA; (ii) any Liability under Sections 412, 430, 431 or 432 of the Code; or (iii) any Liability as a result of the failure
to comply with the continuation of coverage requirements of Section 601 et seq. of ERISA and Section 4980B of the Code.

(c)

None of the Employee
Plans or Employee Benefit Arrangements covering the employees of the Acquired Companies provides for medical or death benefits
beyond the month of termination of service or retirement, other than (i) coverage mandated by applicable Law; and (ii) death
or retirement benefits under a benefit plan qualified under Section 401(a) of the Code.

(d)

None of the Employee
Plans covering any Business Employee is a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA (“Multiemployer
Plan”); and neither the Acquired Companies nor any other Person or entity that together with any Acquired Company is
treated as a single employer under Section 414(b) or Section 414(c) of the Code or Section 4001 of ERISA, has at any time during
the six (6) year period preceding the Closing Date, contributed to or been obligated to contribute to any Multiemployer Plan on
behalf of any employees of the Acquired Companies.

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(e)

Notwithstanding anything
to the contrary contained in this Agreement, the representations and warranties contained in this Section 4.15 are the sole
representations and warranties with respect to employee benefit matters of the Acquired Companies.

4.16

Government Contracts.

(a)

Sellers have delivered
or made available to Buyer a correct and complete copy of each active Government Contract entered into by the Company during the
two (2) year period prior to the date hereof which has generated or is reasonably expected to generate revenue of over $75,000
per year for either or both of the Acquired Companies, all of which are listed in the Company Disclosure Schedule (as amended to
date).

(b)

Except as set forth
in the Company Disclosure Schedule, as of the date hereof (i) all representations, warranties and certifications made by the Company
with respect to a Government Contract, including all invoices and claims arising therefrom, were proper and accurate in all material
respects as of their effective date, and the Company has complied in all material respects with such representations, warranties
and certifications; (ii) no Government Entity, prime contractor or higher-tier subcontractor under a Government Contract or any
other Person acting on behalf of the foregoing, has provided written notice to the Company of any actual or alleged violation or
breach of any statute, regulation, representation, certification, disclosure obligation, contract term, condition, clause, provision
or specification; (iii) there are no active Government Contracts pursuant to which the Company has experienced any material cost,
schedule, technical or quality problems; (iv)  no Government Contract that is currently active in performance has incurred
or currently projects any material losses; (v) no termination for default, notice of potential termination for default, cure notice,
show cause notice or other similar written notice has been issued and/or remains unresolved with respect to any Government Contract
and, to the Knowledge of the Sellers, no termination for default has been threatened with respect to any Government Contract; and
(vi) all of the Government Contracts (A) were legally awarded, (B) are binding on the Acquired Companies and, to the Knowledge
of the Seller Parties, the other parties thereto, and (C) are in full force and effect with respect to any Acquired Company, as
applicable, except as such enforceability may be limited by (x) applicable insolvency, bankruptcy, reorganization, moratorium,
or other similar Laws affecting creditors’ rights generally and (y) applicable equitable principles (whether considered in
a proceeding at Law or in equity).

(c)

Except as set forth
in the Company Disclosure Schedule, no consent, approval or authorization of, notification to, or designation, declaration, registration
or filing with, any Government Entity or other third party is required to be made or obtained on the part of the Company with respect
to the execution or delivery of this Agreement or the consummation of the Transactions.

(d)

The Company maintains
systems of internal controls that are in material compliance with all applicable requirements of all of the Government Contracts
and all applicable Laws. The Company is not, and has not been, party to any Action or Proceeding regarding any fraud, defective
pricing, mischarging, or improper payments on the part of the Company, and the Company has not taken any action nor is a party
to any Action or Proceeding that would be reasonably likely to give rise to (i) liability under the False Claims Act or (ii) a
claim for price adjustment under the Truth in Negotiations Act.

    	23 

    	 

    

(e)

The Company has not
made any mandatory disclosure under Federal Acquisition Regulation (“FAR”) 52.203-13(b)(3)(i) or FAR Part 3,
or any voluntary disclosure to any Government Entity with respect to any alleged unlawful conduct, misstatement or omission arising
under or relating to any Government Contract. The Company has undertaken the appropriate level of review or investigation, if required,
to determine whether the Company is required to make any disclosures to any Government Entity under FAR 52.203-13(b)(3)(i) or FAR
Part 3, and, to the Knowledge of the Sellers, there are no facts that would require mandatory disclosure under FAR 52.203-13(b)(3)(i)
or FAR Part 3.

4.17

Export
Control Matters; Trade Regulations.

(a)

Except as set forth
on the Company Disclosure Schedule, no Government Entity has communicated with the Company in a manner indicating that the Company
is required to register, obtain Permits, or take other actions pursuant to the Trade Regulations in connection with or as a result
of work performed by the Company or other Persons under the direction or supervision of the Company.

(b)

Except as set forth
on the Company Disclosure Schedule, the Company has not registered, obtained any Permits, or taken any other actions pursuant to
the Trade Regulations.

(c)

To the Knowledge
of the Sellers, the operations of the Company are, and have at all times been, in compliance in all material respects with all
Trade Regulations, and the operations of the Company are, and have at all times been, in compliance in all material respects with
all applicable foreign Laws, statutes, regulations, executive orders, rules, codes, or ordinances relating to the import or export
of goods, technology, or services or trading embargoes or restrictions. Consummation of the Transactions will not require re-transfer
or other authorizations to be issued under any such Laws.

4.18

Affiliate Transactions.
Except as set forth on the Company Disclosure Schedule, no officer, director, employee, shareholder or Affiliate of any of the
Acquired Companies or any individual related by blood, marriage or adoption to any such individual, or any entity in which any
such Person owns any beneficial interest, is a party to any Contract with any of the Acquired Companies or has any material interest
in any material assets or property used by the Acquired Companies.

    	24 

    	 

    

4.19

Insurance. The
Company Disclosure Schedule sets forth a list of each insurance policy currently maintained by the Acquired Companies with respect
to their respective properties, assets and business, which such policies are in full force and effect. Such policies are issued
in such types and amounts and covering such risks as are commercially reasonable. Sellers have delivered or made available to Buyer
a correct and complete copy of each such policy. With respect to each such insurance policy, except as set forth on the Company
Disclosure Schedule: (i) it is the legal, valid, binding and enforceable obligation of the applicable Acquired Company, and in
full force and effect; (ii) the consummation of the transactions contemplated hereby will not result in such insurance policy ceasing
to be legal, valid, binding, enforceable, and in full force and effect; (iii) neither any Acquired Company nor, to the Knowledge
of the Sellers, any other party thereto is in breach or default (including with respect to the payment of premiums or giving of
notices), and, to the Knowledge of the Sellers, no event has occurred which, with notice or the lapse of time, would constitute
such a breach or default, or permit termination, modification, or acceleration, thereof; and (iv) no Acquired Company has received
a written (or, to the Knowledge of the Sellers, oral) notice of cancellation or notice of failure to renew any insurance policy
or refusal of coverage thereunder or any other notice that such policies are no longer in full force or effect or that the issuer
of any such policy is no longer willing or able to perform its obligations thereunder. The Company does not self-insure and has
not self-insured in the five (5) year period prior to the date hereof.

4.20

Contracts.

(a)

The Company Disclosure
Schedule sets forth as of the date of this Agreement each of the following Contracts of the Acquired Companies (collectively, the
“Material Contracts”):

(i)

pension, profit sharing,
stock option, employee stock purchase or other plan or arrangement providing for deferred or other compensation to its current
or former directors, officers or employees or any other employee benefit plan, arrangement or practice, whether formal or informal;

(ii)

collective bargaining
agreement or any other contract with any labor union, or severance agreements, programs, policies or arrangements;

(iii)

management agreement
or contract for the employment of any officer, individual employee or other Person on a full-time, part-time, consulting or other
basis (A) providing annual cash or other compensation in excess of $75,000, (B) providing for the payment of any cash or other
compensation or benefits upon the consummation of the Transactions or (C) otherwise restricting its ability to terminate the employment
of any employee at any time for any lawful reason or for no reason without penalty or Liability;

(iv)

contract or agreement
involving any Government Entity which involves consideration in excess of $75,000 annually or not in the ordinary course of Business;

(v)

agreement or indenture
relating to borrowed money or other indebtedness or to mortgaging or pledging any material asset;

(vi)

contract or agreement
which involves consideration in excess of $75,000 annually between any Acquired Company and any of the 10 largest suppliers and
the 10 largest customers of the Acquired Companies (in each case as measured by dollar volume of business during the 2015 calendar
year);

(vii)

lease or agreement
under which any Acquired Company is: (A) lessee of or holds or operates any personal property, owned by any other party, except
for any lease of personal property under which the aggregate annual rental payments do not exceed $75,000 per year; or (B) lessor
of or permits any third party to hold or operate any property, real or personal, owned or controlled by any of the Acquired Companies;

    	25 

    	 

    

 

(viii)

any Contract concerning
exclusivity, non-competition or non-solicitation (excluding standard employee confidentiality agreements and excluding non-solicitation
provisions in Contracts entered into in the Ordinary Course of Business); and

(ix)

contract or agreement
which involves consideration in excess of $75,000 annually and not in the Ordinary Course of Business (other than those agreements
required to be disclosed or excepted pursuant to clauses (i) through (viii) above).

(b)

The Acquired Companies
have made available to Buyer true and complete copies of all of the written Material Contracts. With respect to each Material Contract,
as of the date of this Agreement, (i) such Material Contract is legal, valid, binding, enforceable, and in full force and effect
with respect to any Acquired Company, as applicable, except as such enforceability may be limited by (A) applicable insolvency,
bankruptcy, reorganization, moratorium, or other similar Laws affecting creditors’ rights generally and (B) applicable equitable
principles (whether considered in a proceeding at Law or in equity); (ii) no Acquired Company is in material breach or default
under any Material Contract; and (iii) to the Knowledge of the Sellers, no other party to any Material Contract is in material
breach or material default thereof.

4.21

Broker Fees.
Except as set forth on the Company Disclosure Schedule with respect to fees payable to KippsDeSanto & Co., which shall constitute
Closing Costs paid by the Sellers at the Closing, neither the Sellers nor any of the Acquired Companies has any Liability to pay
any fees or commissions to any broker, finder, or agent with respect to the Transactions for which Buyer could become liable or
obligated.

4.22

Inventory. All
inventory of the Acquired Companies consists of a quality and quantity usable and salable in the Ordinary Course of Business, except
for obsolete, damaged, defective or slow-moving items that have been written off or written down to fair market value or for which
adequate reserves have been established. All such inventory is owned by the Acquired Companies free and clear of all Liens except
Permitted Liens, and no inventory is held on a consignment basis.

4.23

Product Warranties.
Each of the products sold and services provided by the Acquired Companies meets, in all material respects, all applicable standards
for quality and workmanship prescribed by Law. No warranty claims outside the Ordinary Course of Business have been made within
the five (5) year period prior to the date hereof against any of the Acquired Companies in connection with the Business. There
exists no pending or, to the Knowledge of the Sellers, threatened Proceeding alleging product liability or warranty claims by or
before any court or Government Entity relating to any product or service alleged to have been distributed, completed or sold by
any Acquired Company.

    	26 

    	 

    

4.24

Accounts Receivable.
All accounts receivable that are reflected on the Financial Statements and the Latest Balance Sheet represent valid obligations
arising from sales actually made or services actually performed by the Acquired Companies in the Ordinary Course of Business. To
the Knowledge of the Sellers, there is no contest, claim, defense or right of setoff with regard to any such account receivable.
To the Knowledge of the Sellers, no Acquired Company has received any payments from customers or other third parties who have declared
bankruptcy or had insolvency Actions instituted against it or will declare bankruptcy or have insolvency Actions instituted against
it, within the applicable preference period under applicable Law.

4.25

Disclaimer of the
Acquired Companies. Except as otherwise specifically provided in ARTICLE III or this ARTICLE IV (as modified
by the Disclosure Schedules), the Purchased Shares are being acquired WITHOUT ANY OTHER EXPRESSED OR IMPLIED WARRANTY and neither
the Sellers, the Acquired Companies nor any directors, managers, partners, officers, employees, equityholders, optionholders, agents,
Affiliates or Representatives thereof, nor any other Person, has made or shall be deemed to have made any representation or warranty
to Buyer, express or implied, at Law or in equity, with respect to the Sellers, the Acquired Companies, the Business or the assets,
Liabilities, results of operations or financial condition of the Acquired Companies, including any representations and warranties
as to the accuracy or completeness of any Evaluation Material or any other information provided to Buyer or any of its Affiliates
or Representatives pursuant to the Confidentiality Agreement or as to the future sales, revenue, profitability or success of the
Business, or any representations or warranties arising from statute or otherwise in Law, from a course of dealing or a usage of
trade. All such other representations and warranties are expressly disclaimed by the Sellers.

Article
V

COVENANTS
AND OTHER AGREEMENTS

5.1

Conduct of Business.
From and after the date hereof and prior to the Closing Date, and except (i) as required by Law (provided, that any Party
availing itself of such exception must first consult with the other Party), (ii) as may be agreed in writing by the Sellers
and Buyer, or (iii) as expressly contemplated by the Transaction Documents:

(a)

The Sellers and the
Company covenant and agree with Buyer that the Business shall be conducted only in, and that the Acquired Companies shall not take
any action except in, the Ordinary Course of Business; and subject to the terms of this Agreement, the Company and the Sellers
agree with Buyer to, and the Sellers agree to cause the Company to, (i)  use reasonable efforts to preserve intact the business
organizations and goodwill of the Acquired Companies and maintain their assets and properties in good operating condition, repair
and continued maintenance, (ii) pay or perform its material Liabilities when due, (iii) use commercially reasonable efforts
to retain the services of the officers and key employees of the Acquired Companies and maintain the relationships and goodwill
of the Acquired Companies with their respective customers and suppliers and others with which it has business relationships, (iv)
comply with applicable Laws, and (v) maintain insurance coverage consistent with the Ordinary Course of Business.

(b)

The Sellers and the
Company agree that between the date hereof and the Closing Date, except as contemplated by the Transaction Documents or to facilitate
the consummation of the transactions contemplated thereunder, the Sellers and the Company shall not permit the Acquired Companies
to:

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(i)

split, combine, redeem,
repurchase or reclassify any of the Acquired Companies’ capital stock or issue or authorize or propose the issuance of any
other securities in respect of, in lieu of or in substitution for, shares of the Acquired Companies’ capital stock, or grant
any options or grant any depositary receipts for shares of the Acquired Companies’ capital stock;

(ii)

except as required
pursuant to existing employment agreements or Employee Plans or Employee Benefit Arrangements in effect prior to the execution
of this Agreement, or as otherwise required by Law, (A) materially increase the compensation, severance or other benefits payable
or to become payable to the directors, officers or employees, or former employees of any of the Acquired Companies, or (B) establish,
adopt, enter into, amend or terminate any collective bargaining agreement, plan, trust, fund, policy or arrangement for the benefit
of any current or former directors, officers or employees of any of the Acquired Companies, or any of their beneficiaries;

(iii)

enter into or make
any loans to any of the officers, directors, employees, agents or consultants of any of the Acquired Companies or any Affiliates
of any such Persons (other than loans or advances in the Ordinary Course of Business) or make any change in its existing borrowing
or lending arrangements for or on behalf of any of such Persons, except as required by the terms of any Employee Plan or Employee
Benefit Arrangement in effect prior to the execution of this Agreement;

(iv)

materially change accounting
policies or procedures or any of its methods of reporting income, deductions or other material items for income Tax purposes, except
as required by GAAP or applicable Law;

(v)

authorize, propose
or announce an intention to authorize or propose, or enter into agreements with respect to, any mergers, consolidations or business
combinations or material acquisitions of assets (other than the purchase of inventory in the Ordinary Course of Business) or securities;

(vi)

adopt any amendments
to the organizational documents of any Acquired Company;

(vii)

issue, sell, pledge,
dispose of or encumber, or authorize the issuance, sale, pledge, disposition or encumbrance of, any shares of capital stock of
an Acquired Company or any securities convertible into or exchangeable for any such shares;

(viii)

incur, assume, guarantee,
or otherwise become liable for any Indebtedness, except for Indebtedness incurred in the Ordinary Course of Business not in excess
of $75,000;

(ix)

form or cause to be
formed any other subsidiary;

(x)

make any loans, advances
or capital contributions to, or investments in, any other Person (other than in the Ordinary Course of Business);

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(xi)

sell, lease, license,
transfer, exchange or swap, mortgage or otherwise encumber (including securitizations), or subject to any Lien or otherwise dispose
of, any of its properties or assets, except (A) in the Ordinary Course of Business or (B) pursuant to existing agreements in effect
prior to the execution of this Agreement;

(xii)

enter into, modify,
amend, terminate or waive any rights under any Material Contract in any material respect outside the Ordinary Course of Business;

(xiii)

settle any Action other
than in the Ordinary Course of Business involving solely money damages not in excess of $75,000;

(xiv)

take (or authorize
or permit any other Person to take) or suffer any action that would have required disclosure pursuant to Section 4.5 had
such action occurred on or prior to the date hereof (but after the date of the Latest Balance Sheet); or

(xv)

authorize, commit to
or agree, in writing or otherwise, to take any of the foregoing actions.

5.2

No
Solicitation. Each of the Sellers and the Company agrees that, through the earlier of the Closing Date or the
termination of this Agreement in accordance with ARTICLE VII, such Party shall not, and such Party shall cause its
respective Representatives and Affiliates not to, directly or indirectly (i) solicit, initiate, encourage (including by
way of furnishing non-public information), facilitate or induce any inquiry with respect to, or the making, submission or
announcement of, any Alternative Proposal, (ii) participate in any discussions, negotiations or other communications
regarding, or furnish to any Person any non-public information with respect to, any Alternative Proposal or in response to
any inquiries or proposals that would reasonably be expected to lead to any Alternative Proposal, (iii) engage in
discussions, negotiations or other communications, or otherwise cooperate in any way, with any Person with respect to any
Alternative Proposal, except to notify such Person as to the existence of the provisions of this Section 5.2,
(iv) approve, endorse or recommend any Alternative Proposal, or (v) consummate or effect, or enter into any letter
of intent, agreement, commitment or similar document providing for, any Alternative Proposal. The Sellers and the
Company shall immediately terminate, and shall cause their respective Representatives and Affiliates to immediately
terminate, all discussions or negotiations, if any, that are ongoing as of the date hereof with any third party with respect
to an Alternative Proposal. The Sellers and the Company shall notify Buyer promptly if any such Alternative Proposal, or any
inquiry or other contact with any Person with respect thereto, is made. As used in this Agreement, “Alternative
Proposal” shall mean any proposal or offer made by any Person for the direct or indirect acquisition by any Person
of any stock or assets of one or both of the Acquired Companies, except for the sale of inventory of an Acquired Company in
the Ordinary Course of Business.

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5.3

Access. From
the date hereof through the earlier of the Closing Date or the termination of this Agreement in accordance with ARTICLE VII,
the Company shall, and the Sellers shall cause the Company to, afford to Buyer and to its Representatives reasonable access during
normal business hours, throughout the period from the date hereof until the Closing, to the Acquired Companies’ assets, properties,
contracts, commitments, documents, books and records, employees and Representatives, including to permit Buyer and its Representatives
to make such inspections as it may reasonably require, and shall use its reasonable best efforts to cause the Representatives of
the Sellers and the Acquired Companies to furnish promptly to Buyer or its Representatives such additional data and other information
as to the Acquired Companies’ business, assets, property and operations as Buyer or its Representatives may from time to
time reasonably request, except that nothing herein shall require the Sellers or the Acquired Companies to disclose any information
that, as determined in the reasonable discretion of the Sellers, acting in good faith, (a) would cause a risk of a loss of privilege
to the Party disclosing such data or information, or (b) would constitute a violation of applicable Laws, unless such information
is disclosed pursuant to a joint defense agreement entered into with Buyer. The information observed or learned of by, or otherwise
communicated to, Buyer and its Representatives pursuant to this Section 5.3 shall be subject to Section 5.12.

5.4

Notification of
Certain Matters. From the date hereof through the earlier of the Closing Date or the date of termination of this Agreement
in accordance with ARTICLE VII, the Sellers shall give prompt notice to Buyer, and Buyer shall give prompt notice to the
Sellers, of (a) the occurrence of any event known to it which would reasonably be expected to, individually or in the aggregate,
(i) in the case of the Sellers, result in a Company Material Adverse Change or Seller Material Adverse Change, or, in the
case of Buyer, significantly impair or delay the consummation of the transactions contemplated hereby or by any Transaction Document,
or (ii) cause any condition set forth in ARTICLE VI to be unsatisfied at any time prior to the Closing Date or incapable
of being satisfied or delay or frustrate the Closing in any respect; (b) any Action or Proceeding pending or, to the Knowledge
of the Sellers or the Knowledge of Buyer (as the case may be), threatened, which questions or challenges the validity of this Agreement
or seeks to enjoin the consummation of the transactions contemplated hereby; or (c) any fact or circumstance that would result
in any breach or inaccuracy of any of such Party’s representations and warranties under this Agreement; provided, however,
that the delivery of any notice pursuant to this Section 5.4 shall not (A) qualify, modify, amend or otherwise affect
any representations, warranties, covenants or other agreements of any party hereto set forth in this Agreement, any Transaction
Document, or any certificate or other instrument delivered in connection with the transactions contemplated hereby and the other
transactions contemplated hereby or thereby, (B) amend or otherwise affect the Disclosure Schedules hereto, (C) waive any
applicable closing condition, or (D) limit or otherwise affect the remedies available hereunder to the party receiving such
notice, nor shall the party giving such notice be prejudiced with respect to any such matters solely by virtue of having given
such notice.

5.5

Efforts; Regulatory
Approvals.

(a)

Each of the Parties
agrees to use its commercially reasonable efforts to prepare and file as promptly as practicable all documentation to effect all
necessary filings, notices, consents, waivers, approvals, authorizations, Permits or Orders from all applicable Government Entities
and otherwise to cause each of the conditions to Closing set forth in ARTICLE VI to be satisfied as soon as reasonably practicable.
In furtherance and not in limitation of the foregoing, each Party agrees to supply as promptly as reasonably practicable any additional
information and documentary material that may be requested by any Government Entity pursuant to applicable Laws.

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(b)

Further, and without
limiting the generality of the rest of this Section 5.5, each of the Parties shall reasonably cooperate with each other
in connection with any filing or submission and in connection with any investigation or other inquiry and shall promptly (i) furnish
to the other such necessary information and reasonable assistance as the other Parties may request in connection with the foregoing,
(ii) inform the other of any communication received from or given to any Government Entity or any material communication received
from or given to a customer, supplier or other vendor relating to any regulatory approval or review by any Government Entity, and
(iii) provide counsel for the other Parties with copies of all correspondence between such Party (and its advisors) with any Government
Entity and any other information supplied by such Party and such Party’s Affiliates to a Government Entity or received from
such a Government Entity in connection with the transactions contemplated by this Agreement; provided, however, that materials
may be withheld or redacted as necessary to comply with contractual arrangements and with applicable Law, and as necessary to address
reasonable attorney-client or other privilege or confidentiality concerns. Each Party shall, subject to applicable Law, permit
counsel for the other Parties to review in advance, and consider in good faith the views of the other parties in connection with,
any proposed written communication to any Government Entity or, in the case of any proceedings by a private party, any other Person,
in connection with the transactions contemplated hereby. The Parties shall consult with each other if practicable in advance of
any meeting, discussion, telephone call or conference with any Government Entity or, in connection with any proceeding by a private
party, with any other Person, and to the extent not expressly prohibited by the Government Entity or Person, applicable Law or
any Contract of the Acquired Companies, give the other Party the opportunity to attend and participate in such meetings and conferences,
in each case, regarding the transactions contemplated hereby; provided, however, that a Party may prohibit the other Party from
attending any such meeting or conference where commercially sensitive or privileged information may be discussed.

(c)

Each Party shall
not, and shall cause each of its respective Affiliates not to, take any action which is intended to or which would reasonably be
expected to adversely affect the ability of any of the Parties from obtaining (or cause delay in obtaining) any necessary approvals
or clearances of any Government Entity required for the transactions contemplated hereby, from performing its covenants and agreements
under this Agreement, or from consummating the transactions contemplated hereby. Each Party and its respective Affiliates shall
not directly or indirectly extend any waiting period under applicable Laws or enter into any agreement to delay or not to consummate
the transactions contemplated by this Agreement except with the prior written consent of the other Party. Notwithstanding anything
contained herein, Buyer shall be under no obligation (i) to sell, divest, license or dispose of any assets or businesses of Buyer
(or its Affiliates) or the Acquired Companies, (ii) to enter into any agreement to take or commit to take actions that limit Buyer
or its Affiliates’ freedom of action with respect to, or their ability to retain, any of the business, product lines or assets
of Buyer (or its Affiliates) or the Acquired Companies, or (iii) to institute or defend any Action or Proceeding, including appeals,
asserted in or before any Government Entity by any Party.

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5.6

Financial Statements.
No later than twenty (20) days after the completion of each fiscal month following the date hereof and prior to the Closing Date,
the Company shall (and the Sellers shall cause the Company to) deliver to Buyer an unaudited balance sheet of the Acquired Companies
as of the last day of such month, together with the related unaudited statements of income, stockholder’s equity and cash
flows (including the related notes, if any) in accordance with the format used by the Company for the Interim Financial Statements
(the “Monthly Financial Statements”). As used herein, and for purposes of, the representation under Section
4.4 (including for purposes of the “bring down” of such representation) the term “Financial Statements”
shall be deemed to include any Monthly Financial Statement delivered pursuant to this Section 5.6.

5.7

Transition.
The Sellers will not take any action after the Closing that is designed or intended to have the effect of discouraging any
lessor, licensor, customer, supplier, or other business associate of the Acquired Companies from maintaining the same business
relationships with the Acquired Companies after the Closing as it maintained prior to the Closing.

5.8

Noncompetition and
Nonsolicitation. 

(a)

Each Seller hereby
agrees that for a period beginning on the Closing Date and ending three (3) years after the Closing Date, such Seller will not,
and will cause its Affiliates not to, at any time directly or indirectly (other than ownership as a passive investor of less than
2% of the voting stock of a company listed on a national stock exchange):

(i)

own, manage, operate,
finance, control, act as consultant to or participate in the ownership, management, operation, financing, or control of, or otherwise
have an interest in any business that competes, or has the intention of using such Seller or such Affiliate to compete, anywhere
in the world, with the Business;

(ii)

sell or solicit the
sale of any product or service of any Person in existence or under development that competes with or is intended to compete with
any products or services of the Business anywhere in the world; and

(iii)

whether for such Seller’s
or its Affiliate’s own account or for the account of any other Person, intentionally interfere with the relationship of the
Company with, or endeavor to entice away from any of them, any Person or entity who, during the period of twelve months prior to
the Closing Date, is or was a customer, supplier, vendor or client of, and who is engaged in ongoing business with, the Company
with respect to the Business.

(b)

Each Seller hereby
agrees that for a period of two (2) years from the Closing Date, such Seller will not, and will cause its Affiliates not to, at
any time except as expressly permitted by Buyer or its successors or assigns in advance in writing, directly or indirectly, solicit
any employee of any Acquired Company as of the Closing Date (the “Restricted Persons”) to leave the employ of
Buyer or any of its Affiliates or hire any Restricted Person, or attempt to hire any Restricted Person in any capacity; provided,
however, that, the foregoing shall not prohibit (i) a general solicitation to the public by general advertising or similar
methods of solicitation (including by search firms) not specifically directed at the Restricted Persons, or (ii) the hiring or
solicitation of any Restricted Person who has ceased to be employed by, or provide services to, Buyer or its Affiliates.

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(c)

If it is judicially
determined, in a final, non-appealable judgment, that a Seller or any of its Affiliates has violated any of such Seller’s
obligations hereunder, then the period of the covenants contained herein automatically will be extended by a period of time equal
in length to the period during which such violation(s) occurred. Each Seller acknowledges and agrees that Buyer’s remedies
at law for any breach of any of such Seller’s obligations hereunder would be inadequate, and agree and consent that, in addition
to any other relief available to Buyer at law or in equity, temporary and permanent injunctive relief may be granted in a proceeding
brought to enforce any provision hereof without the necessity of proof of actual damage or the posting of a bond or other security.
The foregoing will not in any way relieve Buyer of the burden of proving that a breach by the Sellers of their respective obligations
hereunder occurred. If a court of competent jurisdiction finds the time limits or geographic provisions hereof to be so burdensome
as to be unenforceable, then the time and/or geographic limitations will be reduced to such extent as is necessary to enable the
court to enforce the intention of the restrictive covenants contained herein.

5.9

Release. Effective
as of the Closing, each Seller, on its own behalf and on behalf of its successors, assigns and Affiliates does hereby irrevocably,
unconditionally, voluntarily, knowingly, fully, finally and completely forever release and discharge each Acquired Company and
its Affiliates, successors, assigns and predecessors and their present and former owners, representatives, successors and assigns,
individually and collectively, but specifically excluding Buyer (each, a “Released Party”), from, against and
with respect to any and all actions, accounts, causes of action, complaints, charges, covenants, contracts, liabilities, obligations,
defenses, duties, executions, fees, injuries, interest, judgments, liabilities, penalties, promises, reimbursements, remedies,
suits, sums of money, and torts, of whatever kind or character, whether in law, equity or otherwise, direct or indirect, fixed
or contingent, foreseeable or unforeseeable, liquidated or unliquidated, known or unknown, matured or unmatured, absolute or contingent,
determined or determinable, that such Seller or owners, representatives, successors, assigns and Affiliates ever had or now has,
or may hereafter have or acquire, against the Released Parties that arise out of or in any way relate, directly or indirectly,
to any matter, cause or thing, act or failure to act whatsoever occurring at any time on or prior to the Closing Date, including
such Seller’s ownership of the shares in the Company or the ownership, operation, business, affairs, management, prospects
or financial condition of the Acquired Companies. Notwithstanding the foregoing, (a) this Section 5.9 shall not release
any Released Party from any future obligation set forth in this Agreement or any applicable Transaction Documents, and (b) with
respect to any Covered Persons, all rights of such Covered Persons expressly provided for in Section 5.16 shall be unaltered,
unimpaired and otherwise unaffected by this Section 5.9, and shall remain in full force and effect and are not released
or limited, as applicable, hereby.

5.10

Financing Matters.

(a)

The Buyer shall use
its good faith efforts to obtain the Financing. In order to assist with Buyer obtaining the Financing, the Sellers shall, and shall
cause the Acquired Companies to, at the sole cost and expense of Buyer, provide such reasonable assistance and cooperation as Buyer
and its Affiliates and Representatives may reasonably request, including, but not limited to, assistance in the preparation of
any offering memorandum or similar document, assisting with initial purchasers or placements agents, making senior management of
the Acquired Companies reasonably available for customary “roadshow” presentations and cooperation with prospective
lenders in performing their due diligence, entering into customary agreements with underwriters, initial purchasers or placement
agents, and entering into other definitive financing documents or other requested certificates or documents, including a customary
certificate of the chief financial officer of the Company with respect to solvency matters, comfort letters of accountants, legal
opinions and title documentation.

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(b)

Buyer shall promptly
(i) furnish to the Sellers copies of all written commitment letters, letters of intent, or other agreements in principle with respect
to all debt or equity financing reasonably expected to be obtained in connection with the Financing, and (ii) advise the Sellers
orally and, if requested by the Sellers, in writing of (A) any significant change in the status of any such financing arrangements,
or (B) to the Knowledge of Buyer, any other event which could reasonably be expected to materially delay or prevent the consummation
of the Financing. Buyer shall promptly provide the Sellers with copies of any written changes or termination of the commitments
described in clause (i) and any written commitments for alternate financing.

5.11

Disclosure Schedule
Updates. From time to time prior to the Closing, Sellers shall have the right (but not the obligation) to supplement or amend
the Company Disclosure Schedules with respect to any matter hereafter arising or of which the Sellers become aware after the date
hereof, which, if existing, occurring or known at the date of this Agreement, would have been required to be set forth or described
in the Company Disclosure Schedules (each a “Schedule Supplement”). Any disclosure in any such Schedule Supplement
shall not be deemed to have cured any inaccuracy in or breach of any representation or warranty contained in this Agreement, including
for purposes of the indemnification or termination rights contained in this Agreement or of determining whether or not the conditions
set forth in ARTICLE VI have been satisfied; provided, however, that if Buyer has the right to, but do not elect to, terminate
this Agreement within five (5) Business Days of its receipt of such Schedule Supplement, then Buyer shall be deemed to have irrevocably
waived any right to terminate this Agreement with respect to such matter and, further, shall have irrevocably waived its right
to indemnification under ARTICLE VII with respect to such matter.

5.12

Public Announcements;
Confidentiality.

(a)

None of the Sellers
or Buyer shall make, or permit any agent or Affiliate to make, any public statements, including any press releases, with respect
to this Agreement and the Transactions without the prior written consent of the other (which consent shall not be unreasonably
withheld or delayed), except as may be required by any applicable Law or Order, in which case the Party required to make the release
or announcement shall allow the other Party reasonable time to comment on such release or announcement in advance of such issuance.
Buyer and the Sellers shall jointly agree on the content and substance of all public announcements concerning the Transactions.
Notwithstanding the foregoing, the Parties agree that an announcement of the Transactions to the employees shall be made after
trading has closed on the Nasdaq Capital Market on a Business Day to be mutually agreed upon by the Sellers and Buyer, and that
the Form 8-K and press release associated with the Transactions shall be filed and released prior to the opening of trading on
the Nasdaq Capital Market on the following Business Day.

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(b)

The Parties acknowledge
that the information being provided to one another in connection with the Transactions (including the terms and conditions of this
Agreement and the other Transaction Documents) is subject to the terms of the Confidentiality Agreement, the terms of which are
incorporated herein by reference. Buyer agrees that it will only use and disclose the Transferred Information disclosed to it by
the Acquired Companies and the Sellers in connection with the Transactions or as otherwise permitted by applicable Privacy Laws.

(c)

If Buyer determines
based on the advice of counsel that it is required by applicable Law to file the Disclosure Schedules, Buyer shall submit a confidential
treatment request under Rule 406 of the Securities Act and Rule 24b-2 of the Exchange Act with respect to any information reasonably
identified by Sellers as sensitive and confidential. To the extent such treatment is denied by the SEC, Buyer shall be permitted
to file the Disclosure Schedules without any redaction which has been so denied.

5.13

Litigation Support.
In the event and for so long as any Party actively is contesting or defending against any third party Action or Proceeding in connection
with (a) the Transactions; or (b) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act, or transaction involving the Acquired Companies or the Sellers, Buyer agrees to (i) cooperate
with the contesting or defending party and its counsel; (ii) make available any employee then employed by Buyer to provide testimony,
to be deposed, to act as witnesses and to assist counsel; and (iii) provide access to the books and records as shall be necessary
in connection with the defense or contest, all at the sole cost and expense of the contesting or defending party.

5.14

Employee Matters.

(a)

For a period of ninety
(90) days after the Closing Date, Buyer shall not terminate Business Employees in such numbers as would trigger any Liabilities
under the Worker Adjustment, Retraining and Notification Act, 29 U.S.C. § 2101, et seq. (“WARN”) or any
state plant closing or other severance Law. Buyer shall, and shall cause the Acquired Companies to, comply with any notice or filing
requirements under WARN and any state plant closing or other severance Law occurring on or after the Closing Date. The Acquired
Companies shall provide Buyer at Closing with a list of all employment terminations for the ninety (90) days prior to the Closing
Date, and for each employment termination, the Acquired Companies shall provide the employee’s name, date of termination
and location of employment.

(b)

From and after the
Closing Date, Buyer shall, and shall cause the Acquired Companies to, honor (without modification) each written Contract between
the Acquired Companies and any Business Employee that (i) existed as of the date hereof; and (ii) is set forth on the Company Disclosure
Schedule.

(c)

During the twelve
(12) month period commencing at the Closing Date, Buyer shall provide, or shall cause the Acquired Companies to provide, to any
Business Employee compensation and benefits, including the Employee Plans and Employee Benefit Arrangements, that are in the aggregate,
substantially comparable to and no less favorable than the compensation and benefits being provided to Business Employees as of
the date of this Agreement; provided that nothing herein shall prohibit Buyer from replacing any such existing Employee
Plan or Employee Benefit Arrangement with a plan, policy program or arrangement which provide such Business Employees with benefits
that are in the aggregate substantially comparable to and no less favorable than the benefits that would have been provided under
such existing Employee Plan or Employee Benefit Arrangement.

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(d)

Without limiting
the generality of Section 5.14(c), Buyer shall cause any employee benefit plan, policy, program or arrangement as may be
maintained for Business Employees from time to time following the Closing Date (including plans, policies, programs or arrangements
providing severance benefits and vacation entitlement), to credit such Business Employees with their service performed for the
Acquired Companies prior to Closing as service with Buyer or the Acquired Companies, as the case may be, for purposes of determining
eligibility to participate, vesting and benefit accruals. Such service also shall apply for purposes of satisfying any waiting
periods, evidence of insurability requirements, or the application of any preexisting condition limitations. Buyer shall also honor,
or cause the Acquired Companies, as the case may be, to honor, all vacation, personal and sick days accrued by the Business Employees
under the Employee Plans and Employee Benefit Arrangements immediately prior to the Closing Date.

(e)

Without limiting
the generality of Section 5.14(c), Buyer shall cause the Acquired Companies to honor, in accordance with their terms, and
shall, or shall cause the Acquired Companies to, make required payments when due under, all Employee Plans and Employee Benefit
Arrangements maintained or contributed to by the Acquired Companies or to which the Acquired Companies are a party (including employment,
incentive and severance agreements and arrangements), that are applicable with respect to any Business Employee or any director
of any Acquired Company (whether current, former or retired) or their beneficiaries; provided  that the foregoing shall
not preclude Buyer or the Acquired Companies from amending or terminating any Employee Plan or Employee Benefit Arrangement in
accordance with its terms.

5.15

Record Retention.
The Parties agree that for a period of five (5) years after the Closing Date, or for a longer period if required by applicable
Law, without the prior written consent of the Sellers, neither Buyer nor any of its Affiliates shall dispose of or destroy any
of the books and records purchased hereunder which may be relevant to any legal, regulatory or Tax audit, investigation, inquiry
or requirement of any of the Sellers without first offering such records to the Sellers.

5.16

Indemnification
of Directors and Officers; Insurance.

(a)

Buyer agrees that
all rights to indemnification, advancement of expenses and exculpation now existing in favor of each individual who, as of the
Closing Date, is a current or former director or officer of the Acquired Companies (collectively, the “Covered Persons”)
pursuant to the respective charter documents, bylaws, limited liability company operating agreements, individual indemnity agreements,
board resolutions or otherwise, shall survive the Closing and shall continue in full force and effect in accordance with their
terms for a period of not less than six years from the Closing Date. Following the Closing, neither Buyer nor the Acquired Companies
shall amend, repeal or otherwise modify such arrangements in any manner that would adversely affect the rights of the Covered Persons
thereunder.

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(b)

Buyer shall cause
the Acquired Companies to honor, to the fullest extent permitted by applicable Law, all of the obligations of the Acquired Companies
to indemnify (including any obligations to advance funds for expenses) the Covered Persons to the extent that such obligations
of the Acquired Companies exist on the Closing Date, whether pursuant to charter documents, bylaws or limited liability company
operating agreements of the Acquired Companies, individual indemnity agreements, board resolutions or otherwise, and such obligations
shall survive the Closing and shall continue in full force and effect in accordance with the terms of such arrangements until the
expiration of the applicable statute of limitations with respect to any claims; provided that such indemnification rights
shall not apply to any Covered Person with respect to any Liability for which such Covered Person is obligated to indemnify Buyer
under ARTICLE VII of this Agreement.

(c)

In the event that
Buyer, the Acquired Companies or any of their respective successors or assigns after the Closing Date (i) consolidates with or
merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger;
or (ii) transfers or conveys all or a substantial portion of its properties and assets to any Person, then, and in each such case,
proper provision shall be made so that the successors and assigns of Buyer, the Acquired Companies or of their respective successors
or assigns assume the obligations of Buyer and/or the Acquired Companies or their respective successors or assigns as contemplated
by this Section 5.16.

(d)

Buyer and/or the
Acquired Companies or their respective successors or assigns shall pay all reasonable expenses, including, without limitation,
reasonable attorneys’ fees, that may be incurred by any Covered Person in enforcing the indemnity and other obligations provided
in this Section 5.16. The provisions of this Section 5.16 shall survive the consummation of the Closing and expressly
are intended to benefit each of the Covered Persons. Notwithstanding anything to the contrary, it is agreed that the rights of
a Covered Person under this Section 5.16 shall be in addition to, and not a limitation of, any other rights such Covered
Person may have under the charter documents, bylaws or limited liability company operating agreements of the Acquired Companies,
individual indemnity agreements, board resolutions or otherwise, and nothing in this Section 5.16 shall have the effect
of, or be construed as having the effect of, reducing the benefits to the Covered Persons under such arrangements.

(e)

Buyer hereby acknowledges
that the Covered Persons may have certain rights to indemnification, advancement of expenses and/or insurance provided by other
Persons. Buyer hereby agrees (i) that the Acquired Companies are the indemnitors of first resort (i.e., their obligations
to the Covered Persons are primary and any obligation of such other Persons to advance expenses or to provide indemnification for
the same expenses or Liabilities incurred by any such Covered Person are secondary); (ii) that the Acquired Companies shall
be required to advance the full amount of expenses incurred by any Covered Person and shall be liable for the full indemnifiable
amounts, in each case in accordance with the indemnification obligations described in this Section 5.16, without regard
to any rights any such Covered Person may have against any such other Person; and (iii) that Parties irrevocably waives, relinquishes
and releases (and shall cause the Acquired Companies to irrevocably waive, relinquish and release) such other Persons from any
and all claims against any such other Persons for contribution, subrogation or any other recovery of any kind in respect thereof.
Each of Buyer and the Acquired Companies further agrees that no advancement or payment by any of such other Persons on behalf of
any such Covered Persons with respect to any claim for which such Covered Person has sought indemnification from the Acquired Companies
shall affect the foregoing.

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5.17

Acknowledgement
of Personal Property. The Parties acknowledge and agree that the personal property set forth on Schedule 5.17 is personal
property owned by a Seller or its Affiliates and that such Seller or its Affiliates shall be entitled to remove such personal property
from the premises of the Acquired Companies.

5.18

Tax Matters.

(a)

Tax Periods Ending
on or Before the Closing Date. Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for
the Acquired Companies for all periods ending on or prior to the Closing Date (“Pre-Closing Tax Period”) that
are filed after the Closing Date. Such Tax Returns shall be prepared consistently with the past practice of the Acquired Companies,
unless otherwise required by applicable Law. Buyer shall permit Sellers to review and comment on each such Tax Return described
in the preceding sentence prior to filing and shall accept all comments that are reasonable. The Sellers, jointly and severally,
shall reimburse Buyer for Taxes of the Acquired Companies with respect to such periods within five (5) days of payment by Buyer
or the Acquired Companies of such Taxes, except to the extent such Taxes are taken into account in the adjustments contemplated
under Sections 1.5 through 1.8 (for the avoidance of doubt, the Sellers’ obligation to reimburse Buyer under
this Section 5.18(a) shall not be limited under the terms of ARTICLE VII).

(b)

Tax Periods Beginning
Before and Ending After the Closing Date. Buyer shall prepare or cause to be prepared and file or cause to be filed any Tax
Returns of the Acquired Companies for Tax periods that begin before the Closing Date and end after the Closing Date (a “Straddle
Tax Period”). Such Tax Returns shall be prepared consistently with the past practice of the Acquired Companies unless
otherwise required by applicable Law. Buyer shall permit Sellers to review and comment on each such Tax Return described in the
preceding sentence prior to filing and shall accept all comments that are reasonable. The Sellers, jointly and severally, shall
reimburse Buyer within five (5) days of the date on which Taxes are paid with respect to such periods an amount equal to the portion
of such Taxes which relates to the portion of such taxable period ending on the Closing Date, except to the extent such Taxes are
taken into account in the adjustments contemplated under Sections 1.5 through 1.8 (for the avoidance of doubt, the
Sellers’ obligation to reimburse Buyer under this Section 5.18(b) shall not be limited under the terms of ARTICLE
VII). For purposes of this Section 5.18, 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 shall (i) in the case of any Taxes other than the 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 the numerator
of which is the number of days in the taxable period ending on the Closing Date and 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. For purposes of this Section 5.18,
in the case of any Tax credit relating to a taxable period that begins before and ends after the Closing Date, the portion of such
Tax credit which relates to the portion of such taxable period ending on the Closing Date shall be the amount which bears the same
relationship to the total amount of such Tax credit as the amount of Taxes described in (y) above bears to the total amount of
Taxes for such taxable period.

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(c)

Cooperation on
Tax Matters.

(i)

Buyer, the Acquired
Companies and the Sellers shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with
the filing of Tax Returns pursuant to this Section 5.18 and any audit, Action or Proceeding, with respect to Taxes. Such
cooperation shall include the retention and (upon the other Party’s request) the provision of records and information which
are reasonably relevant to any such audit, Action or Proceeding and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided hereunder. The Acquired Companies and the Sellers agree
(A) to retain all books and records with respect to Tax matters pertinent to the Acquired Companies relating to any taxable period
beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by Buyer or the
Sellers, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into
with any taxing authority, and (B) to give the other Party reasonable written notice prior to transferring, destroying or discarding
any such books and records and, if the other Party so requests, the Acquired Companies or the Sellers, as the case may be, shall
allow the other Party to take possession of such books and records.

(ii)

Buyer and the Sellers
further agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any
Government Entity or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including
with respect to the Transactions).

(d)

Amended Tax Returns.

(i)

Any amended Tax Return
of any of the Acquired Companies or claim for Tax refund on behalf any of the Acquired Companies for any period ending on or prior
to the Closing Date shall be filed, or caused to be filed, only by Sellers. The Sellers shall not, without the prior written consent
of Buyer (which consent shall not be unreasonably withheld or delayed), make or cause to be made, any such filing, to the extent
such filing, if accepted, reasonably might change the Tax Liability of Buyer for any period ending after the Closing Date.

(ii)

Any amended Tax Return
of any Acquired Company or claim for Tax refund on behalf of an Acquired Company for any period ending after the Closing Date shall
be filed, or caused to be filed, only by Buyer. Buyer shall not, without the prior written consent of Sellers (which consent shall
not be unreasonably withheld or delayed), make or cause to be made, any such filing, to the extent such filing, if accepted, reasonably
might change the Tax Liability of the Sellers for any period or portion thereof ending on or prior to the Closing Date.

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(e)

Audits.

(i)

Buyer shall provide
the Sellers with notice of any written inquiries, audits, examinations or proposed adjustments by the Internal Revenue Service
(“IRS”) or any other taxing authority, which relate to any Pre-Closing Tax Periods within ten (10) days of the
receipt of such notice. Sellers shall have the sole right to represent the interests of the Acquired Companies in any Tax audit
or other proceeding relating to any Pre-Closing Tax Periods, to employ counsel of its choice at its own expense, and to settle
any issues and to take any other actions in connection with such proceedings relating to such taxable periods; provided
that the Sellers shall inform Buyer of the status of any such proceedings, shall provide Buyer (at Buyer’s cost and expense)
with copies of any pleadings, correspondence, and other documents as Buyer may reasonably request and shall consult with Buyer
prior to the settlement of any such proceedings and shall obtain the prior written consent of Buyer prior to the settlement of
any such proceedings that could reasonably be expected to adversely affect Buyer in a material manner in any taxable period ending
after the Closing Date, which consent shall not be unreasonably withheld or delayed; provided further that Buyer
and counsel of its own choosing shall have the right to participate in, but not direct, the prosecution or defense of such proceedings
at Buyer’s sole expense.

(ii)

Buyer and the Sellers
shall provide each other with notice of any written inquiries, audits, examinations or proposed adjustments by the IRS or any other
taxing authority that relate to any Straddle Tax Period within ten (10) days of the receipt of such notice. Buyer and the Sellers
shall jointly control the conduct of any Tax audits or other proceedings relating to Taxes for a Straddle Tax Period, and neither
Party shall settle any such Tax audit or other proceeding without the written consent of the other Party, which consent shall not
be unreasonably withheld or delayed.

(iii)

Buyer shall have the
right to control all other Tax audits or proceedings of the Acquired Companies. Buyer shall obtain the prior written consent of
Sellers prior to the settlement of any such proceedings that could reasonably be expected to increase the Sellers’ Tax Liability
for a Pre-Closing Tax Period, which consent shall not be unreasonably withheld or delayed.

(iv)

The Acquired Companies
shall execute and deliver to the Sellers such powers of attorney and other documents as may be necessary or appropriate to give
effect to the foregoing.

(f)

Certain Taxes.
All transfer, documentary, sales, use, stamp, registration and other such transfer-related Taxes and fees (including any penalties
and interest) incurred in connection with this Agreement shall be paid by the Sellers when due, and the Sellers will, at their
own respective expense, file all necessary Tax Returns and other documentation with respect to all such transfer, documentary,
sales, use, stamp, registration and other such transfer Taxes and fees, and, if required by applicable Law, Buyer or the Acquired
Companies will join in the execution of any such Tax Returns and other documentation.

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(g)

Tax Covenants.

(i)

Buyer covenants that
without obtaining the prior written consent of Sellers it will not, and will not cause or permit any Acquired Company or any Affiliate
of Buyer, to (A) take any action on or after the Closing Date other than in the ordinary course of business that could give
rise to any Tax Liability of the Sellers or any indemnification obligation of the Sellers under Section 7.1, or (B) make
or change any material Tax election (including a Section 338(g) election), amend any Tax Return, take any Tax position on any Tax
Return, or compromise or settle any Tax Liability, in each case if such action could have the effect of increasing the Tax Liability
of the Sellers or reducing any Tax asset of any Acquired Company with respect to any Pre-Closing Tax Period or portion of a Straddle
Tax Period ending on the Closing Date.

(ii)

After the Closing Date,
Buyer and the Acquired Companies will not, without obtaining the written consent of Sellers, agree to the waiver or any extension
of the statute of limitations relating to any Taxes of the Acquired Companies for any Pre-Closing Tax Period or any Straddle Tax
Period.

(iii)

The Sellers shall have
the right to (A) any Tax refunds received by any Acquired Company for any Pre-Closing Tax Period or portion of any Straddle Tax
Period that ends on the Closing Date (except to the extent such amounts are taken into consideration in calculating the Net Working
Capital) or (B) any credits against Taxes in lieu of refunds described in clause (A). Buyer shall pay such amounts to the Sellers
no later than ten (10) days after the receipt by any such Acquired Company of such Tax refunds or credits. Buyer will cooperate
with Sellers to prepare and file any Tax Returns required to claim Tax refunds that the Sellers are entitled to pursuant to this
Section 5.18(g)(iii).

(h)

Payment of Company
Tax Benefits. The Parties hereby agree and acknowledge that the Tax deductions associated with the Transaction Payments shall
be for the sole benefit of the Sellers and shall be allocated to the applicable Pre-Closing Tax Periods ending on the Closing Date
or portions of the applicable Straddle Tax Periods ending on the Closing Date, in each case to the extent permitted by applicable
Law and that notwithstanding anything to the contrary in this Agreement, the Sellers shall be entitled to the benefits of each
such Tax deduction. The method to compensate the Sellers for the benefit associated with Tax deductions that neither reduce amounts
the Sellers would otherwise have to pay pursuant to Section 5.18(a) or Section 5.18(b), nor are reflected as a reduction
in Taxes payable for purposes of determining Net Working Capital, is through the payment of the Company Tax Benefits. In the event
that the Tax deductions associated with the Transaction Payments result in a net operating loss of any of the Acquired Companies
for a Pre-Closing Tax Period ending on the Closing Date, such net operating loss shall, to the extent permitted by Law, be first
carried back to all available prior Pre-Closing Tax Periods of such Acquired Company, as applicable, to claim refunds for any Taxes
that were previously paid by the Acquired Companies in such Pre-Closing Tax Periods. Buyer shall pay or cause to be paid to the
Sellers the amount of any Company Tax Benefits within ten (10) days after such Company Tax Benefits are actually realized or obtained.
A Company Tax Benefit is actually realized or obtained only (i) upon the filing of a Tax Return (including a short period Tax Return)
that shows a reduced Tax Liability or (ii) upon receipt of a Tax refund.

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(i)

Tax Dispute Resolution
Mechanism. Any dispute among the Parties involving Taxes arising under this Agreement shall be resolved as follows: (i) the
Parties will in good faith attempt to negotiate a prompt resolution of the dispute; (ii) if the Parties are unable to negotiate
a resolution of the dispute within thirty (30) days, the dispute will be submitted to the national office of a firm of independent
accountants of nationally recognized standing reasonably satisfactory to Sellers and Buyer (the “Tax Dispute Accountant”);
(iii) the Tax Dispute Accountant shall resolve the dispute, in a fair and equitable manner and in accordance with applicable Tax
Law and the provisions of this Agreement, within thirty (30) days after the Parties have submitted the dispute to the Tax Dispute
Accountant, whose decision shall be final, conclusive and binding on the Parties, absent fraud or manifest error; (iv) any payment
to be made as a result of the resolution of a dispute shall be made, and any other action taken as a result of the resolution of
a dispute shall be taken, on or before the fifth (5th) day following the date on which the dispute is resolved (except
that if the resolution requires the filing of an amended Tax Return, such amended Tax Return shall be filed within thirty (30)
days following the date on which the dispute is resolved); and (v) the fees and expenses of the Tax Dispute Accountant shall be
paid by the Party who the Tax Dispute Accountant determines has derived the least benefit from the issues to be resolved by the
Tax Dispute Accountant; provided that, (A) if the Parties are unable to agree on a national office of a firm of independent
accountants of nationally recognized standing to act as Tax Dispute Accountant, Sellers and Buyer shall each select a national
office of a firm of independent accountants of nationally recognized standing and such firms together shall select the national
office of a firm of independent accountants of nationally recognized standing to act as the Tax Dispute Accountant; and (B) if
any Party does not select a national office of a firm of independent accountants of nationally recognized standing within ten (10)
days of written demand therefor by the other Party, the firm selected by the other Party shall act as the Tax Dispute Accountant.

5.19

Further Assurances.
From and after the Closing, Buyer and the Sellers shall execute and deliver such further instruments of conveyance and transfer
and take such other action as reasonably may be necessary to further effectuate the Transactions.

Article
VI

CONDITIONS
TO CLOSING; TERMINATION

6.1

Conditions to
Each Party’s Obligations. The respective obligations of the Sellers, the Company and Buyer to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment (or written waiver by all Parties) at or
prior to the Closing of the following conditions:

(a)

No Law shall be in
place or have been enacted, entered, promulgated or enforced by any court or other tribunal or Government Entity of competent jurisdiction
which prohibits the consummation of the transactions contemplated by this Agreement, and shall continue to be in effect; and

(b)

No Action or Proceeding
shall be pending or threatened in writing before any Government Entity in which an unfavorable judgment would prevent consummation
of the transactions contemplated by this Agreement, and no injunction or other Order preventing the consummation of the transactions
contemplated by this Agreement shall have been issued and remain in effect.

6.2

Conditions to Obligation
of the Sellers. The obligation of the Sellers and the Company to consummate the transactions contemplated by this Agreement
is further subject to the fulfillment (or written waiver by the Sellers) of the following conditions:

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(a)

Each of the representations
and warranties of Buyer contained in this Agreement shall be true and correct (without giving regard to any materiality or Material
Adverse Change qualifications set forth therein) as of the Closing Date with the same effect as though made on and as of the Closing
Date except (i) that the accuracy of representations and warranties that by their terms speak as of the date of this Agreement
or some other date will be determined as of such date and not as of the Closing Date and (ii) where any such failure of the representations
and warranties in the aggregate to be true and correct would not reasonably be expected to significantly impair or delay the consummation
of the transactions contemplated hereby; and

(b)

Buyer shall have
performed and complied in all material respects with all of its obligations, covenants and agreements required by this Agreement
to be performed or complied with by them at or prior to the Closing; and

(c)

Buyer shall have
taken the actions required to be taken by Buyer pursuant to Section 1.10 and Section 1.11.

6.3

Conditions to Obligation
of Buyer. The obligation of Buyer to consummate the transactions contemplated by this Agreement is subject to the fulfillment
(or written waiver by Buyer) of the following conditions:

(a)

Each of the representations
and warranties of the Sellers contained in this Agreement shall be true and correct (without giving regard to any materiality,
Company Material Adverse Change, or Seller Material Adverse Change qualifications set forth therein) as of the Closing Date with
the same effect as though made on and as of the Closing Date except (i) that the accuracy of representations and warranties that
by their terms speak as of the date of this Agreement or some other date will be determined as of such date and not as of the Closing
Date and (ii) where the failure to be so true and correct would not reasonably be expected, individually or in the aggregate, to
have a Company Material Adverse Change or Seller Material Adverse Change;

(b)

The Sellers and the
Company shall have performed and complied in all material respects with all of their respective obligations, covenants and agreements
required by this Agreement to be performed or complied with by it at or prior to the Closing Date;

(c)

The Sellers and the
Company shall have taken the actions required to be taken by the Sellers and the Company pursuant to Section 1.9 and Section
1.11;

(d)

Between the date
of this Agreement and the Closing Date, no change or event shall have occurred that has had or would be reasonably likely to have
a Company Material Adverse Change or Seller Material Adverse Change;

(e)

Prior to the Closing,
Buyer shall have obtained on terms and conditions acceptable to Buyer, in its sole and exclusive discretion, all of the financing
it needs in order to purchase the Purchased Shares and to otherwise consummate the transactions contemplated by this Agreement
(the “Financing”); and

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(f)

Buyer shall have
received the requisite stockholder approval for the Financing and/or the transactions contemplated by this Agreement, if required,
either at a special meeting of stockholders or pursuant to a written stockholder consent.

6.4

Frustration of Closing
Conditions. Neither the Sellers or Buyer may rely on the failure of any condition set forth in Section 6.1, Section
6.2, or Section 6.3, as the case may be (but specifically excluding Section 6.3(e)), to be satisfied if such
failure was caused by such Party’s (or any of its Affiliates’) breach of this Agreement or failure to act in good faith
or use its reasonable efforts to consummate the transactions contemplated by this Agreement.

6.5

Termination.
Anything to the contrary in this Agreement notwithstanding, this Agreement may be terminated and the
transactions contemplated by this Agreement abandoned at any time prior to the Closing:

(a)

by mutual written
consent of the Sellers and Buyer;

(b)

by the Sellers, if
any of Buyer’s representations and warranties contained in ARTICLE II of this Agreement shall fail to be true and
correct or Buyer shall have breached or failed to perform in any material respect any of its covenants or other agreements contained
in this Agreement, and such failure or breach would give rise to the failure of a condition set forth in Section 6.2(a)
or Section 6.2(b) and has not been cured by the earlier of (i) the date that is thirty (30) days after the date that the
Sellers have notified Buyer of such failure or breach and (ii) the Outside Date; provided, that the Sellers are not
then in breach of any of their representations, warranties, covenants or agreements contained in this Agreement such that the conditions
set forth in Section 6.3(a) or Section 6.3(b) would fail to be satisfied;

(c)

by Buyer, if any
of the representations and warranties contained in ARTICLE III or ARTICLE IV of this Agreement shall fail to be true
and correct or the Sellers shall have breached or failed to perform in any material respect any of their covenants or other agreements
contained in this Agreement, and such failure or breach would give rise to the failure of a condition set forth in Section 6.3(a),
Section 6.3(b), Section 6.3(c) or Section 6.3(d) and has not been cured by the earlier of (i) the date that
is thirty (30) days after the date that Buyer has notified the Sellers of such failure or breach and (ii) the Outside Date;
provided, that Buyer is not then in breach of any of its representations, warranties, covenants or agreements contained
in this Agreement such that the conditions set forth in Section 6.2(a) or Section 6.2(b) would fail to be satisfied;

(d)

by the Sellers, on
the one hand, or by Buyer, on the other hand, if the Closing shall not have occurred on or prior to December 31, 2016 (the “Outside
Date”); provided, however, that the right to terminate this Agreement under this Section 6.5(d)
shall not be available to any Party whose failure to perform any material covenant or obligation under this Agreement has been
the cause of, or resulted in, the failure of the Closing to occur on or before the Outside Date;

(e)

by the Sellers, on
the one hand, or by Buyer, on the other hand, if the Closing shall not have occurred on or prior to the Outside Date due to the
failure of the condition set forth in Section 6.3(e) to have been satisfied;

    	44 

    	 

    

 

(f)

by the Sellers, on
the one hand, or by Buyer, on the other hand, if (x) at a special meeting of the stockholders of Buyer, if required, such stockholders
do not approve of the Financing and/or the transactions contemplated by this Agreement, or (y) the Closing shall not have occurred
on or prior to the Outside Date due to the failure of the conditions set forth in Section 6.3(f) to have been satisfied;
or

(g)

by Buyer, if, after
the date of this Agreement, any change or event shall have occurred that has had or would be reasonably likely to have a Company
Material Adverse Change or Seller Material Adverse Change.

For purposes of clarity,
if (x) the Closing shall not have occurred on or prior to the Outside Date, (y) the conditions set forth in Section 6.1,
Section 6.3(a), (b), (c), and (d) have been satisfied, but (z) the conditions set forth in Section
6.3(e) or Section 6.3(f) have not been satisfied, any termination of this Agreement by the Sellers, on the one hand,
or by Buyer, on the other hand, pursuant to Section 6.5(d) shall be deemed to be a termination pursuant to Section 6.5(e)
or Section 6.5(f).

6.6

Effect of Termination.
If this Agreement is terminated and the transactions contemplated by this Agreement are abandoned as described in Section 6.5,
this Agreement shall become null and void and of no further force and effect, except for the provisions of Sections 5.12, 6.5,
6.6 and 6.7 and ARTICLE XI; provided, however, in the event this Agreement is terminated pursuant to Section 6.5(e)
or Section 6.5(f), then Buyer shall reimburse the Sellers and the Company for all of their documented out of pocket expenses,
including, without limitation, legal, accounting and travel expenses, up to Two Hundred Fifty Thousand Dollars ($250,000) within
three (3) Business Days of the later of (x) the termination date or (y) the date all reasonable documentation evidencing such expenses
has been delivered to Buyer. Nothing in this Section 6.6 shall be deemed to release any Party from any liability for fraud
or a willful breach by such Party of the terms and provisions of this Agreement.

6.7

Notice of Termination.
In the event of termination by the Sellers or by Buyer pursuant to Section 6.5, written notice of such termination shall
be given by the terminating Party to the other Party(ies) to this Agreement, and such written notice shall specify the specific
subsection(s) of Section 6.5 pursuant to which such terminating Party is terminating this Agreement.

Article
VII

INDEMNIFICATIONS;
SURVIVAL

7.1

Indemnification
by Sellers. Subject to the terms, conditions and limitations of this ARTICLE VII, following the Closing, Buyer and each
of its Affiliates, and each of their respective successors, assigns, officers, directors, managers, members, partners, equityholders,
employees, Representatives and agents, shall be indemnified:

(a)

by the Sellers, severally
(and not jointly), from and against any Loss suffered or incurred by any such Indemnified Person resulting from any breach of any
representation or warranty of such Seller contained in ARTICLE III of this Agreement;

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(b)

by the Sellers, severally
(and not jointly), from and against any Loss suffered or incurred by any such Indemnified Person resulting from the breach of any
post-Closing covenant of such Seller contained in this or any other Transaction Document to which such Seller is a party;

(c)

by the Sellers, jointly
and severally, from and against any Loss arising or resulting from or based upon any breach of any representation or warranty regarding
the Acquired Companies contained in ARTICLE IV of this Agreement as of the Closing Date;

(d)

by the Sellers, jointly
and severally, from and against any Loss arising or resulting from or based upon any bonuses payable to any employees or independent
contractors of any of the Acquired Companies and triggered by the Closing; and

(e)

by the Sellers, jointly
and severally, from and against any Loss arising or resulting from or based upon any misclassification of any Person providing
services to any of the Acquired Companies as independent contractors as opposed to “employees” for purposes of the
Code and the treasury regulations promulgated thereunder.

provided that
(x) there shall be no indemnification Liability under clause (a) or clause (c) above, unless (1) the Loss related to each individual
claim or series of related claims arising thereunder for which indemnification Liability would, but for this proviso, exist exceeds
Twenty Thousand Dollars ($20,000), and (2) the aggregate of all Losses arising under clause (a) or clause (c) above for which indemnification
Liability would, but for this proviso, exist exceeds an amount equal to One Hundred Thirty-Five Thousand Dollars ($135,000), after
which time only such Losses in excess of such amount will be recoverable by the Indemnified Parties and (y) the aggregate
Liability under clause (a) or clause (c) above shall in no event exceed Two Million Seven Hundred Thousand Dollars ($2,700,000);
provided further that the limitations set forth in clauses (x) and (y) above shall not apply to any Loss arising from actual
fraud or intentional misrepresentations or from a breach of Section 3.1 (Power and Authorization), Section 3.3 (Capital
Stock), Section 4.1 (Organization; Qualification; Corporate Power and Authorization), Section 4.2(a) (Capitalization)
(sentences one and two only), Section 4.9 (Tax Matters), Section 4.15 (Employee Plans), and Section 4.21 (Broker
Fees) (collectively, the “Fundamental Representations”). Notwithstanding anything herein to the contrary, except
in the case of actual fraud, the aggregate liability of the Sellers under this Section 7.1 shall in no event exceed the
Purchase Price.

7.2

Indemnification
by Buyer. Subject to the terms, conditions and limitations of this ARTICLE VII, following the Closing, Buyer and the
Acquired Companies, jointly and severally, shall indemnify the Sellers and each of their respective Affiliates, and each of their
respective successors, assigns, officers, directors, managers, members, partners, equityholders, employees, Representatives and
agents, and the Acquired Companies’ pre-Closing officers, directors, managers, members, partners, employees, Representatives
and agents, against, and hold them harmless from, any Loss suffered or incurred by any such Indemnified Person arising or resulting
from or based upon:

(a)

any breach of any
representation or warranty of Buyer contained in contained in ARTICLE II of this Agreement;

    	46 

    	 

    

 

(b)

the breach of any
post-Closing covenant of Buyer or the Acquired Companies contained in this Agreement or any other Transaction Document; and

(c)

any post-Closing
operations of the Acquired Companies and their Affiliates;

provided that
(x) there shall be no indemnification Liability under clause (a) above, unless (1) the Loss related to each individual claim or
series of related claims arising thereunder for which indemnification Liability would, but for this proviso, exist exceeds Twenty
Thousand Dollars ($20,000), and (2) the aggregate of all Losses arising under clause (a) above for which indemnification Liability
would, but for this proviso, exist exceeds an amount equal to One Hundred Thirty-Five Thousand Dollars ($135,000), after which
time only such Losses in excess of such amount will be recoverable by the Indemnified Parties and (y) the aggregate Liability
under clause (a) above shall in no event exceed Two Million Seven Hundred Thousand Dollars ($2,700,000); provided further
that the foregoing limitation shall not apply to any Loss arising actual fraud or intentional misrepresentations or from a breach
of Section 2.1 (Organization; Corporate Power and Authorization), and Section 2.3 (Broker Fees).

7.3

Losses Net of Insurance,
Etc. Subject to the terms and conditions of this ARTICLE VII, following the Closing:

(a)

For purposes of determining
(i) whether a breach of a representation or warranty exists solely for purposes of the indemnification provisions of this Agreement
and (ii) the amount of Losses arising from such a breach for which the Indemnified Parties are entitled to indemnification under
the indemnification provisions of this Agreement, the representations and warranties made by the Parties in this Agreement or any
other Transaction Document shall be construed as if any qualification or limitation that is based on materiality (including all
usages of “material”, “Company Material Adverse Change”, “Seller Material Adverse Change” or
similar qualifiers) were omitted from the text of such representation or warranty.

(b)

The amount of any
Loss for which indemnification is provided under this ARTICLE VII shall be net of any amounts actually recovered under insurance
policies in effect and applicable to such Loss.

(c)

Any payment or indemnity
required to be made pursuant to Section 7.1 or Section 7.2 shall be adjusted to take into account any reduction or
increase in Taxes that may be realized at any time by the Indemnified Person (which term shall, for purposes of this paragraph,
include the ultimate payer(s) of Taxes in the case of an Indemnified Person that is a branch or a disregarded entity or other pass-through
entity for any Tax purpose) as a result of the Loss giving rise to the payment or indemnity or as a result of the payment or indemnity.
In determining the amount necessary to be added to or subtracted from any payment or indemnity in order to accomplish the foregoing,
the Parties agree to treat all Taxes required to be paid by, and all reductions in Tax realized by, any Indemnified Person, as
if such Indemnified Person were subject to Tax at the highest marginal Tax rates (for both federal and state, as determined on
a combined basis) applicable to such Indemnified Person.

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(d)

In connection with
an Indemnified Person’s rights under this ARTICLE VII, an Indemnified Person may only seek actual damages and may
not seek any other damages, including but not limited to punitive, consequential (including lost profits) and incidental damages,
or damages argued to be associated with a diminution in value, and in particular, without limitation, no “multiple of profits”
or “multiple of cash flow” or similar valuation methodology shall be used in connection with the calculation of Losses
as to any matter under, relating to or arising out of the Transaction Documents or the Transactions.

(e)

Any Liability for
indemnification under this ARTICLE VII shall be determined without duplication of recovery by reason of the set of facts
giving rise to such Liability constituting a breach of more than one representation, warranty, covenant or undertaking, or one
or more rights to indemnification. Without limiting the generality of the foregoing and notwithstanding Section 7.1, Buyer
shall not be entitled to indemnification under this ARTICLE VII with respect to any Loss to the extent that any such Loss
would constitute a duplicative payment of amounts recovered as a purchase price adjustment pursuant to Section 1.8 or such
Loss is reflected as a Liability on the Latest Balance Sheet or reflected in the footnotes to the Financial Statements.

(f)

No Person shall be
entitled to indemnification under this ARTICLE VII with respect to any Loss that is attributable to any action taken or
omitted to be taken by such Person or any of its Affiliates. The Indemnified Person shall cooperate with each Indemnifying Person
with respect to resolving any Liabilities with respect to which such Person is obligated to indemnify the other Person, including
by making commercially reasonable efforts to mitigate or resolve any such Liabilities. In the event that the Indemnified Person
shall fail to cooperate and make such efforts to mitigate or resolve any such Liabilities, then notwithstanding anything else to
the contrary contained herein, each Indemnifying Person shall not be required to indemnify any Person for any Loss that could reasonably
be expected to have been avoided if the Indemnified Person had made such efforts. The Indemnified Person shall act in a commercially
reasonable manner in addressing any Liabilities, events or actions that may provide the basis for indemnification hereunder (that
is, such Indemnified Person shall respond to such Liability, event or action in the same manner that it would respond in the absence
of the indemnification provided for in this Agreement, but in no event less than a commercially reasonable response).

(g)

As between the Parties
and any Indemnified Person and Indemnifying Person, the indemnification provisions contained in this ARTICLE VII are intended
to provide the sole and exclusive remedy following the Closing as to all Losses any Party may incur arising from or relating to
the Transaction Documents (or the representations, warranties or covenants contained therein) or the Transactions, and each Party
(on behalf of itself and its Affiliates) hereby waives, to the full extent they may do so, any other rights or remedies that may
arise under any applicable statute, rule or regulation and hereby covenants that it and all of its Affiliates shall refrain from,
directly or indirectly, asserting any Action or Proceeding of any kind against any Person based on any matter purported to be waived
hereby. Nothing in this ARTICLE VII shall limit any Party’s right to seek and obtain (i) any equitable relief, including
specific performance, temporary restraining order or temporary or permanent injunction, or (ii) any remedy on account of fraud
or criminal conduct in connection with the execution and delivery of this Agreement of the performance of a Party’s obligation
hereunder.

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(h)

As between the Parties
and any Indemnified Person and Indemnifying Person, the sole source to satisfy any and all indemnification claims of Buyer or any
Indemnified Person pursuant to Section 7.1 shall be to set off against up to Two Million Seven Hundred Thousand Dollars
($2,700,000) of the Buyer Note, except for such indemnification claims based on actual fraud, intentional misrepresentations, breaches
of Fundamental Representations and except for such indemnification claims under Section 7.1(b). Notwithstanding anything
herein to the contrary, for any claims arising under Section 7.1(b) against a particular Seller, Buyer shall have the right
to, and shall only have the right to, make a claim against such Seller directly and not the Buyer Note or any other Seller.

(i)

Upon making any payment
to an Indemnified Person for any indemnification claim pursuant to this ARTICLE VII, the Indemnifying Person shall be subrogated,
to the extent of such payment, to any rights which the Indemnified Person or its Affiliates may have against any other Persons
with respect to the subject matter underlying such indemnification claim and the Indemnified Person shall take such actions as
the Indemnifying Person may reasonably require to perfect such subrogation or to pursue such rights against such other persons
as the Indemnified Person or its Affiliates may have.

(j)

The indemnities herein
are intended solely for the benefit of the Parties and the Persons expressly identified in Section 5.14 and Section 5.16
and this ARTICLE VII (and their permitted successors and assigns) and are in no way intended to, nor shall they, constitute
an agreement for the benefit of, or be enforceable by, any other Person.

7.4

Termination of Indemnification.
The obligations to indemnify and hold harmless an Indemnified Person pursuant to Section 7.1 and Section 7.2 shall
terminate on the date that the survival period for the applicable representation, warranty or covenant expires pursuant to Section
7.6; provided that such obligations to indemnify and hold harmless shall not terminate with respect to any specific
matter as to which the person to be indemnified shall have, before the expiration of the applicable period, previously made a claim
by delivering a written notice (a “Claim Notice”) to the Indemnifying Person containing (1) a detailed description
and, if known, the estimated amount of any Loss incurred or reasonably expected to be incurred by the Indemnified Person together
with such supporting documents reasonably available to such Indemnified Person; (2) a reasonable explanation of the basis for the
Claim Notice to the extent of the facts then known by the Indemnified Person; and (3) a demand for payment of such Loss.

7.5

Procedures Relating
to Indemnification.

(a)

In order for an Indemnified
Person to be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim
or demand made by any third Person against the Indemnified Person (a “Third-Party Claim”), such Indemnified
Person must provide the Indemnifying Person with a Claim Notice regarding the Third-Party Claim promptly and in any event within
ten (10) Business Days after receipt by such Indemnified Person of written notice of the Third-Party Claim; provided  that
failure to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying
Person shall have been actually prejudiced as a result of such failure (except that the Indemnifying Person shall not be liable
for any expense incurred during the period in which the Indemnified Person failed to give such notice). Thereafter, the Indemnified
Person shall deliver to the Indemnifying Person, within five (5) Business Days after the Indemnified Person’s receipt thereof,
copies of all notices and documents (including court papers) received by the Indemnified Person relating to the Third-Party Claim
together with such supporting documents reasonably available to such Indemnified Person. Notwithstanding the foregoing, any Third-Party
Claims with respect to Taxes shall be addressed in the manner set forth in Section 5.18(e).

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(b)

If a Third-Party
Claim is made against an Indemnified Person, the Indemnifying Person will be entitled to participate in the defense thereof and,
if it so chooses, to assume the defense thereof with counsel selected by the Indemnifying Person. If the Third-Party Claim includes
allegations for which the Indemnifying Person both would and would not be obligated to indemnify the Indemnified Person, the Indemnifying
Person and the Indemnified Person shall in that case jointly assume the defense thereof. Should the Indemnifying Person so elect
to assume the defense of a Third-Party Claim, notwithstanding anything to the contrary, the Indemnifying Person will not be liable
to the Indemnified Person for legal fees and expenses subsequently incurred by the Indemnified Person in connection with the defense
thereof. If the Indemnifying Person assumes such defense, the Indemnified Person shall have the right, at its own expense, to participate
in the defense thereof and, at its own expense, to employ counsel reasonably acceptable to the Indemnifying Person, separate from
the counsel employed by the Indemnifying Person, it being understood that the Indemnifying Person shall control such defense. The
Indemnifying Person shall be liable for the fees and expenses of counsel employed by the Indemnified Person for any period during
which the Indemnifying Person has not assumed the defense thereof (other than during any period in which the Indemnified Person
shall have failed to give notice of the Third-Party Claim as provided above). If the Indemnifying Person chooses to defend or prosecute
any Third-Party Claim, all the Parties shall cooperate in the defense or prosecution thereof. Such cooperation shall include the
retention and (upon the Indemnifying Person’s request) the provision to the Indemnifying Person of records and information
which are reasonably relevant to such Third-Party Claim, and making officers, directors, employees and agents of the Indemnified
Person available on a mutually convenient basis to provide information, testimony at depositions, hearings or trials, and such
other assistance as may be reasonably requested by the Indemnifying Person. Whether or not the Indemnifying Person shall have assumed
the defense of a Third-Party Claim, the Indemnified Person shall not admit any Liability with respect to, or settle, compromise
or discharge, such Third-Party Claim without the Indemnifying Person’s prior written consent (which consent shall not be
unreasonably withheld or delayed). The Indemnifying Person shall not admit any Liability with respect to, or settle, compromise
or discharge any Third-Party Claim without the Indemnified Person’s prior written consent (which consent shall not be unreasonably
withheld or delayed); provided that the Indemnified Person shall agree to any admission of Liability, settlement, compromise
or discharge of a Third-Party Claim that the Indemnifying Person may recommend and that by its terms obligates the Indemnifying
Person to pay the full amount of the Liability in connection with such Third-Party Claim and which releases the Indemnified Person
completely in connection with such Third-Party Claim.

7.6

Survival of Representations
and Warranties. All representations, warranties and covenants contained in this Agreement and the other Transaction Documents
shall survive the Closing and remain in full force and effect as follows: (a) for a period of fifteen (15) months following the
Closing Date, with respect to all representations and warranties (other than with respect to the Fundamental Representations which
shall survive the Closing and remain in full force and effect until the expiration of the applicable statute of limitations), or
(b) with respect to each other covenant or agreement contained in this Agreement or any other Transaction Document, until the last
date on which such covenant or agreement is to be performed or, if no such date is specified, for a period of twelve (12) months
following the Closing Date.

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7.7

Tax Treatment of
Indemnification Payments. Any indemnification payments made to Buyer pursuant to this Agreement shall be treated as an adjustment
to the final Purchase Price, unless otherwise required under applicable Tax Laws. 

Article
VIII

DEFINITIONS

For the purposes
of this Agreement, the following terms have the meanings set forth below:

“Acquired
Company(ies)” means the Company and the Subsidiary.

“Action
or Proceeding” means any action, suit, claim, hearing, proceeding or arbitration by any Person, or any investigation
or audit by any Government Entity.

“Affiliate”
means with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with
such first Person within the meaning of the Exchange.

“Affiliated
Group” means any affiliated group within the meaning of Section 1504(a) of the Code, or any similar group defined under
a similar provision of state, local or foreign Law.

“Business”
means the business of the Acquired Companies conducted on the date of this Agreement.

“Business
Day” means any day excluding Saturday, Sunday and any day that is a legal holiday under the Laws of the State of New
York or is a day on which banking institutions located in such State are authorized or required by Law to close.

“Business
Employee” means each individual who works primarily or exclusively for the Business and who, on the Closing Date, is
actively employed by the Acquired Companies, including any employee who is on vacation leave or jury duty, or on other authorized
leave of absence (other than long-term disability in cases in which the employee has no present expectation of continued employment),
family or workers’ compensation leave, or military leave as of the Closing Date, whether paid or unpaid; provided that
the term Business Employee shall exclude any other inactive or former employee, including any individual who (a) is on long-term
disability leave or unauthorized leave of absence, layoff with or without recall rights at the Closing Date; or (b) has been terminated
or has terminated his or her employment or retired before the Closing Date.

“Buyer Disclosure
Schedule” means the disclosure schedule constituting exceptions to and applicable disclosures associated with Buyer’s
representations and warranties set forth in ARTICLE II hereof, prepared and delivered by Buyer concurrently with the execution
of this Agreement, as the same may be amended or supplemented from time to time, as required and/or permitted herein.

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“Cash”
means, as of any date, any cash on hand, cash in bank or other accounts, readily marketable securities, and other cash equivalent
liquid assets of any nature as of such date, determined in accordance with GAAP applied in a manner consistent with past practice.

“Closing
Costs” means all fees and expenses incurred by any Acquired Company or any Seller in connection with the Transactions
or in connection with the proposed sale of the Acquired Companies, such as the fees and expenses of any investment bankers, lawyers,
accountants and other outside financial and other advisors, the fees and expenses of the electronic data room and any Transaction
related bonuses or other change of control payments.

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

“Common
Stock” means the authorized shares of common stock of the Company consisting of common stock, no par value per share.

“Company
Disclosure Schedule” means the disclosure schedule constituting exceptions to and applicable disclosures associated with
the Acquired Companies’ representations and warranties set forth in ARTICLE IV hereof, prepared and delivered by the
Acquired Companies concurrently with the execution of this Agreement, as the same may be amended and supplemented from time to
time, as required and/or permitted herein.

“Company
Intellectual Property Rights” means all of the Intellectual Property Rights owned by the Acquired Companies.

“Company
Material Adverse Change” means any material adverse change in the Business, results of operations or financial condition
of the Acquired Companies taken as a whole, other than any material adverse change or effect arising from or related to the following
(either alone or in combination): (a) any general condition affecting the industry in which the Business is engaged, (b) changes
in any Law or applicable accounting regulations or principles, (c) the announcement or pendency of any of the Transactions, (d)
any action taken by the Sellers or the Acquired Companies at Buyer’s request or pursuant to the Transaction Documents, (e)
acts of war or terrorism or any escalation or material worsening of any such acts of war or terrorism existing as of the date hereof,
(f) such change against which the Acquired Company is fully insured, (g) general economic, political and financial market changes,
foreign or domestic, (h) any changes in applicable Laws or accounting rules or principles, including changes in GAAP, and (i) any
matters specifically disclosed in the Disclosure Schedules; unless, in the cases of (a), (g) or (h) above, such changes or effects
would reasonably be likely to have a materially disproportionate adverse impact on the Business, results of operations or financial
condition of the Acquired Companies taken as a whole, relative to other affected participants in the industries in which the Acquired
Companies operate.

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“Company
Tax Benefits” means the amount of reduction in Tax Liability realized and any Tax refunds obtained in any Tax period
of any Acquired Company that is attributable to (i.e. would not be available but for) any deductions available to such Acquired
Company with respect to the option cancellation payments and the Transaction Payments; provided that no such reduction in
Tax Liability or Tax refunds shall be taken into account as Company Tax Benefits (x) to the extent reflected as a reduction in
Taxes payable for purposes of determining Net Working Capital, or (y) to the extent that they reduce amounts that the Sellers would
otherwise have to pay pursuant to Section 5.18(a) or Section 5.18(b).

“Confidential
Information Presentation” means the confidential information presentation provided to Buyer in expectation of the Transactions.

“Confidentiality
Agreement” means the Confidentiality Agreement regarding the confidentiality obligations of Buyer, executed by the Company
and Buyer as of September 10, 2015.

“Contracts”
means all written and oral binding executory contracts, agreements, subcontracts, indentures, notes, bonds (including surety bonds),
loans, instruments, leases, mortgages, franchises, licenses, purchase orders, sale orders, proposals, bids, understandings or commitments,
which are legally binding.

“Current
Assets” means, without duplication, the sum of (a) trade and other accounts receivable, (b) prepaid expenses (including
prepaid Taxes), (c) inventory and (d) other current assets, but excluding Cash; all as determined in accordance with GAAP applied
in a manner consistent with the preparation of the Financial Statements.

“Current
Liabilities” means, without duplication, the sum of (a) trade and other accounts payable; (b) accrued payroll and related
expenses; (c) other current accruals; (d) customer deposits; and (e) other current liabilities, but excluding any Indebtedness,
all as determined in accordance with GAAP applied in a manner consistent with the preparation of the Financial Statements.

“Employee
Benefit Arrangements” means each and all pension, supplemental pension, deferred compensation, option or other equity-based
program, accidental death and dismemberment, life and health insurance and benefits (including medical, dental, vision and hospitalization),
short- and long-term disability, fringe benefit, cafeteria plan, flexible spending account programs, severance and other employee
benefit arrangements, plans, contracts, policies or practices providing employee or executive compensation or benefits to any employee
of any of the Acquired Companies, other than the Employee Plans.

“Employee
Plans” means each and all “employee benefit plans,” as defined in Section 3(3) of ERISA, maintained or contributed
to by the Acquired Companies or in which the Acquired Companies participate or participated and which provides benefits to employees
of any Acquired Company.

“Environmental
Laws” means all federal, state, and local statutes, regulations and ordinances concerning the pollution or protection
of the environment, including the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response and Compensation, and Liability Act of 1980.

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

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“Evaluation
Material” means any information, documents or materials regarding the Acquired Companies or the Business furnished or
made available to Buyer and its Representatives in any “data rooms,” “virtual data rooms,” management presentations
or in any other form in expectation of, or in connection with, the Transactions, including, but not limited to, the Confidential
Information Presentation.

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

“GAAP”
means United States generally accepted accounting principles as in effect from time to time.

“Government
Contract” means any Contract between an Acquired Company, on the one hand, and (i) any Government Entity; (ii) any prime
contractor of a Government Entity in its capacity as a prime contractor; or (iii) any subcontractor at any tier with respect to
any Contract of a type described in clauses (i) or (ii) above, on the other hand. For the avoidance of doubt, a task, purchase
or delivery order under a Government Contract shall not constitute a separate Government Contract, for purposes of this definition,
but shall be part of the Government Contract to which it relates.

“Government
Entity” means any court, tribunal, arbitrator or any government or political subdivision thereof, whether federal, state,
county, local or foreign, or any agency, authority, official or instrumentality of such governmental or political subdivision,
or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government.

“Hazardous
Materials” means any toxic or hazardous substance, material, or waste, and any other contaminant or pollutant, whether
liquid, solid, semi solid, sludge and/or gaseous, including chemicals, compounds, by products, pesticides, asbestos containing
materials, petroleum or petroleum products, and polychlorinated biphenyls, and any other material or substance, whether waste materials,
raw materials or finished products regulated or governed by any Environmental Law.

“Indebtedness”
means, with respect to the Acquired Companies, without duplication: (i) all indebtedness for borrowed money, whether current, short-term,
or long-term, secured or unsecured (excluding trade accounts payable incurred in the Ordinary Course of Business); (ii) all indebtedness
for the deferred purchase price for purchases of property that is not evidenced by trade accounts payable incurred in the Ordinary
Course of Business (other than any such accounts payable owed to any Seller or any of such Seller’s Affiliates); (iii) any
Liability in respect of letters of credit (other than stand-by letters of credit in support of trade accounts payable incurred
in the Ordinary Course of Business); (iv) any Liability with respect to interest rate swaps, collars, caps and similar hedging
obligations; (v) any obligations under leases that are required to be accounted for as capital or financial leases under GAAP;
(vi) all off-balance sheet financing, including synthetic leases and project financing; (vii) all unearned income and all income
recorded on the books and records for services not yet rendered; (viii) accrued corporate income tax and other unpaid Taxes; (ix)
factored receivables; (x) sales bonuses or other payments made or payable to employees in connection with the transactions contemplated
by this Agreement, transaction costs and pension underfunding; (xi) any indebtedness referred to in clauses (i) through (x) above
that is directly or indirectly guaranteed by an Acquired Company; (xii) payment obligations under the Share Purchase Agreement,
dated as of June 15, 2013, as amended, between the Company and Natalja Cujeva, and (xiii) accrued and unpaid interest on, and prepayment
or termination premiums or fees, penalties or similar charges or expense reimbursements arising as a result of the discharge of
any such foregoing obligation.

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“Indemnified
Person” means any Person claiming indemnification under any provision of ARTICLE VII.

“Indemnifying
Person” means any Person(s) against whom a claim for indemnification is being asserted under any provision of ARTICLE
VII.

“Intellectual
Property Rights” means (a) all industrial designs and inventions (whether patentable or unpatentable and whether or not
reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, divisionals, reissues, substitutions and reexaminations
thereof, (b) all United States and foreign trademarks, service marks, certification marks, trade dress, designs, logos, trade names,
and corporate names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill
associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all
copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications,
registrations, and renewals in connection therewith, (e) all trade secrets and confidential business information (including technology,
ideas, research and development, know-how, formulae, compositions, engineering, manufacturing and production processes, procedures
and techniques, technical data, records of invention, invention disclosures, designs, plans, drawings, blueprints, specifications,
customer and supplier lists and related information, databases, pricing and cost information, and business and marketing plans
and proposals), and improvements thereto, (f) all computer software (in source code and object code form), including data, formulations
and analyses and related documentation, user manuals and training manuals, (g) all domain names, URL addresses, electronic mail
addresses and design rights (including any word, symbol, product configuration, icon and logo), (h) all other proprietary rights,
including all goodwill of the business and all rights to sue, recover damages or otherwise claim for past, present or future infringement
or unauthorized use or disclosure or breach of any of the assets, properties or rights described above, and (i) all copies and
tangible embodiments thereof (in whatever form or medium).

“Knowledge
of Sellers” means (a) as it applies to the representations and warranties made by any of the Acquired Companies in ARTICLE
IV, the knowledge of Joseph Menaker, Mark Lifshotz and Ēriks Bediķis, in each case after reasonable investigation
and inquiry; and (b) as it applies to representations and warranties made by a particular Seller in ARTICLE III, the knowledge
of such Seller, after reasonable investigation and inquiry (provided that the knowledge of any particular Seller shall not be imputed
to another Seller).

“Knowledge
of Buyer” or “Buyer’s Knowledge” means and shall be limited to the knowledge of J. James Gaynor
and Dorothy Cipolla, in each case after reasonable investigation and inquiry.

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“Latest
Balance Sheet” means the Acquired Companies’ unaudited consolidated balance sheet as prepared by management as
of June 30, 2016.

“Law”
means any law, statute, rule, regulation, ordinance and other pronouncement having the effect of law of the United States of America,
the Republic of Latvia, any other foreign country or any domestic or foreign state, county, city or other political subdivision
or of any Government Entity.

“Liability”
or “Liabilities” means any and all debts, liabilities and obligations of any nature whatsoever, whether accrued
or fixed, known or unknown, asserted or unasserted, absolute or contingent, liquidated or unliquidated, mature or unmatured or
determined or indeterminable, including any liability for Taxes.

“Lien”
means any mortgage, lien, pledge, charge, security interest, claim, contractual restriction, easement, right-of-way, option, hypothecation,
conditional sale or other title retention agreement or encumbrance of any kind.

“Loss”
means any direct or indirect Liability, indebtedness, claim, loss, damage, Lien, deficiency, obligation, judgment, penalty, responsibility
or other costs or expenses (including reasonable attorneys’ fees and expenses paid in connection with any of the foregoing).

“Net Working
Capital” means, for purposes of Section 1.5 above, the difference between (a) Current Assets of the Acquired Companies
as of the close of business on the Closing Date, and (b) Current Liabilities of the Acquired Companies as of the close of business
on the Closing Date.

“Neutral
Accounting Firm” means an independent accounting firm of nationally recognized standing that has not rendered services
to any of Buyer, the Acquired Companies or the Sellers, or any Affiliate thereof, within twenty-four (24) months prior to the date
hereof.

“Off-The-Shelf
Software” means shrinkwrap or clickwrap software licenses granted to any Acquired Company for third party software used
by any Acquired Company.

“Order”
means any writ, judgment, decree, injunction or similar order of any Government Entity, in each case whether preliminary or final.

“Ordinary
Course of Business” means the ordinary course of business of the Acquired Companies, consistent with past custom and
practice.

“Permits”
means all licenses, certificates of occupancy and other permits, consents and approvals required by any Government Entity to lawfully
operate the Business (including any pending applications for such licenses, certificates, permits, consents or approvals).

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“Permitted
Liens” means (a) Liens for Taxes or assessments and similar charges, which either are (i) not delinquent; or (ii) being
contested in good faith and by any appropriate Action or Proceeding, and adequate reserves (as determined in accordance with GAAP)
have been established on the Acquired Companies’ books with respect thereto; (b) interests or title of, or Liens to secure,
landlords, sublandlords, licensors, sublicensors or licensees under real estate leases, licenses or other rental or lease agreements;
(c) deposits or pledges made in connection with, or to secure payment of, utilities or similar services, workers’ compensation,
unemployment insurance, pension or other social security, governmental insurance and governmental benefits mandated under applicable
Laws, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, Government Contracts,
Government Bids, performance and return of money bonds and similar obligations; (d) mechanics’, materialmen’s or contractors’
Liens or any similar statutory Lien; (e) zoning, entitlement, building and other similar restrictions which are not violated by
the current conduct of the Business; (f) purchase money Liens in any property acquired by any Acquired Company in the Ordinary
Course of Business; (g) any items set forth on Schedule 8 attached hereto; and (h) easements, covenants, rights of way or
other encumbrances or restrictions, if any, that do not materially impair the use of the assets to which they relate to the Business,
taken as a whole, as conducted on the date hereof.

“Person”
means any individual, partnership, corporation, association, limited liability company, joint stock company, a trust, joint venture,
firm, association, unincorporated organization, Government Entity or other entity.

“Personal
Information” means the type of information regulated by Privacy Laws and collected, used, disclosed or retained by the
Acquired Companies, including information regarding the Business’ customers, suppliers, employees and agents, such as an
individual’s name, address, age, gender, identification number, income, family status, citizenship, employment, assets, liabilities,
source of funds, payment records, credit information, personal references and health records.

“Prime Rate”
means the prime rate of interest as from time to time published by The Wall Street Journal (Eastern Edition).

“Privacy
Laws” means all applicable Law in the United States and Europe governing the collection, use, disclosure and retention
of Personal Information.

“Pro Rata
Share” means the percentage set forth opposite a Seller’s name on Schedule 1.4(b) under the heading “Pro
Rata Share” and represents such Seller’s pro rata portion of the Closing Payment received by such Seller.

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

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

“Seller”
and “Sellers” have the meaning set forth in the recitals to this Agreement.

“Seller
Disclosure Schedule” means the disclosure schedule constituting exceptions to and applicable disclosures associated with
the Seller’s representations and warranties set forth in ARTICLE III hereof, prepared and delivered by the Sellers
concurrently with the execution of this Agreement, as the same may be amended or supplemented from time to time, as required and/or
permitted herein.

    	57 

    	 

    

 

“Seller
Material Adverse Change” means a material adverse change in the ability of the Sellers to perform their obligations under
this Agreement and the Transaction Documents or on the ability of the Sellers to consummate the Transactions.

“Subsidiary”
means ISP Optics Latvia, SIA, a limited liability company formed under the Laws of the Republic of Latvia and registered with the
commercial register under registration No. 40103009686.

“Target
Net Working Capital Ceiling” means $1,900,000.

“Target
Net Working Capital Floor” means $1,800,000.

“Tax”
or “Taxes” means: (i) any federal, state, local or foreign income, gross receipts, capital gains, license, occupancy,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including Taxes under Section
59A of the Code), Medicare, Medicaid, Affordable Care Act of 2010 obligation, customs duties, exercise duties, capital stock, net
worth, franchise, unincorporated business, profits, withholding, information, employment, unemployment, disability, workers’
compensation, social security, retirement, pension plan, general property, real property, personal property, intangible property,
unclaimed property, fuel, parking, ad valorem, sales, use, transfer, occupancy, registration, value added, alternative or add-on
minimum, accumulated earnings, personal holding company, estimated, or other tax, contributions, report, or assessment of any kind
whatsoever imposed by any governmental authority, including any estimated payments related thereto, any interest, penalty, assessment,
or addition thereto, whether disputed or not; and (ii) any obligations to indemnify or otherwise assume or succeed to an Tax liability
of any Person.

“Tax Returns”
means all returns and reports, amended returns, information returns, statements, declarations, estimates, schedules, notices, notifications,
forms, elections, certificates or other documents required to be filed or submitted to any Government Entity with respect to the
determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement
of, or compliance with, any Tax.

“Trade Regulations”
means all applicable federal, state and local Laws, statutes, regulations, executive orders, rules, codes, or ordinances enacted,
adopted, issued or promulgated by the United States or any United States state or local Government Entity, and all authorizations,
in each case relating to the import or export of goods, technology, or services or trading embargoes or other trading restrictions,
including the Export Administration Act, the Export Administration Regulations, the Arms Export Control Act, the International
Traffic in Arms Regulations, the Foreign Corrupt Practices Act, the Trading with the Enemy Act, the International Emergency Economic
Powers Act, and executive orders and regulations administered by the Office of Foreign Assets Control of the U.S. Department of
the Treasury.

“Transaction
Documents” means this Agreement, the Buyer Note and all other agreements, instruments, certificates and other documents
to be entered into or delivered by any Party, pursuant to any of the foregoing.

    	58 

    	 

    

 

“Transaction
Payments” means the Closing Costs, the accelerated write-off of deferred finance fees and loan costs, all other legal,
accounting, investment banking and other fees and expenses paid by the Sellers prior to the Closing or by the Acquired Companies
and any bonuses or other payments due to employees or other service providers, in each case, in connection with the Transactions
and the Closing.

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

“Transferred
Information” means all Personal Information to be disclosed or conveyed to Buyer or any of its Affiliates or Representatives
by or on behalf of the Acquired Companies as a result of or in conjunction with the compliance by the Sellers, the Acquired Companies
or Sellers with the terms of the Transaction Documents, and includes all such Personal Information disclosed to Buyer and its Affiliates
and Representatives during the period leading up to and including the Closing;

INDEX OF OTHER
DEFINED TERMS

	Term	Section Reference
	 	 
	Accounting Arbitrator	1.5(d)
	Adjustment Calculation	1.5(b)
	Agreement	Preamble
	Alternative Proposal	5.2
	Audited Financial Statements	4.4(a)(i)
	Buyer	Preamble
	Buyer Note	1.2(b)
	Cash Amount	1.2(a)
	Claim Notice	7.4
	Closing	1.3
	Closing Balance Sheet	1.5(b)
	Closing Date	1.3
	Closing Date Cash Calculation	1.6(b)
	Closing Date Debt Calculation	1.7(b)
	Closing Payment	1.2(a)
	Company	Preamble
	Covered Persons	5.16(a)
	Disclosure Schedules	9.11
	Environmental Claims	4.10(b)
	EST	1.5(a)
	Estimated Closing Date Cash	1.6(a)
	Estimated Closing Date Debt	1.7(a)
	Estimated Net Working Capital	1.5(a)
	FAR	4.16(e)
	Financial Statements	4.4(a)
	Financing	6.3(e)
	Fundamental Representations	7.1
	Interim Financial Statements	4.4(a)(iii)
	IRS	5.18(e)(i)
	Leased Real Property	4.12(b)
	 	 

    	59 

    	 

    

 

	LPTH SEC Documents	2.7
	Material Contracts	4.20
	Monthly Financial Statements	5.6
	Multiemployer Plan	4.15(d)
	Net Working Capital Calculation	1.5(b)
	Objection Notice	1.5(b)
	Outside Date	6.5(d)
	Party or Parties	Preamble
	Pre-Closing Tax Period	5.18(a)
	Purchase Price	1.2
	Purchased Shares	Preamble
	Released Party or Released Parties	5.9
	Restricted Persons	5.8(b)
	Schedule Supplement	5.11
	Seller or Sellers	Preamble
	Straddle Tax Period	5.18(b)
	Subsidiary Financial Statements	4.4(a)(ii)
	Tax Dispute Accountant	5.18(i)
	Third-Party Claim	7.5
	WARN	5.14(a)

Article
IX

MISCELLANEOUS

9.1

Expenses. Whether
or not the Transactions are consummated, and except as otherwise provided in this Agreement, each Party to this Agreement will
bear its respective fees, costs and expenses incurred in connection with the preparation, negotiation, execution and performance
of this Agreement or the Transactions (including legal, accounting and other professional fees).

9.2

Governing Law.
This Agreement will be governed by and construed in accordance with the internal Laws of the State of New York applicable to agreements
made and to be performed entirely within such State, without regard to the conflicts of Law principles that would require the application
of any other Law.

9.3

Jurisdiction; Service
of Process. Any Action or Proceeding arising out of or relating to this Agreement or any of the Transactions may be brought
in the federal and state courts located in New York, New York, and each of the Parties irrevocably submits to the exclusive jurisdiction
of such courts in any such Action or Proceeding, waives any objection it may now or hereafter have to venue or to convenience of
forum, agrees that all claims in respect of the Action or Proceeding shall be heard and determined only in any such court and agrees
not to bring any Action or Proceeding arising out of or relating to this Agreement or any of the Transactions in any other court.
The Parties agree that any or all of them may file a copy of this Section 9.3 with any court as written evidence of the
knowing, voluntary and bargained-for agreement among the Parties irrevocably to waive any objections to venue or to convenience
of forum. Process in any Action or Proceeding referred to in the first sentence of this Section 9.3 may be served on any
Party anywhere in the world.

    	60 

    	 

    

9.4

Waiver of Jury Trial.
THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY
AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION OR PROCEEDING WHATSOEVER BETWEEN
THEM RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION
BY A JUDGE SITTING WITHOUT A JURY.

9.5

Attorneys’
Fees. If any Action or Proceeding for the enforcement of this Agreement is brought with respect to or because of an alleged
dispute, breach, default or misrepresentation in connection with any of the provisions hereof, the successful or prevailing Party
shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that Action or Proceeding, in addition
to any other relief to which it may be entitled.

9.6

Waiver; Remedies
Cumulative. The rights and remedies of the Parties to this Agreement are cumulative and not alternative. Neither any failure
nor any delay by any Party in exercising any right, power or privilege under this Agreement or any of the other Transaction Documents
will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege
will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.
To the maximum extent permitted by applicable Law, (a) no claim or right arising out of this Agreement or any of the other Transaction
Documents can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing
signed by the other Parties; (b) no waiver that may be given by a Party will be applicable except in the specific instance for
which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of that Party or
of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement
or any of the other Transaction Documents.

9.7

Notices. All
notices or other communications required or permitted to be given hereunder shall be in writing and shall be deemed given to a
Party when (a) delivered by hand, (b) one Business Day after being sent by a nationally recognized overnight courier service (costs
prepaid), (c) sent by facsimile or email with confirmation of transmission by the transmitting equipment, or (d) received by the
addressee, if sent by certified mail, postage prepaid and return receipt requested, in each case to the following:

    	61 

    	 

    

 

if to Buyer, to:

LightPath Technologies, Inc.

2603 Challenger Tech Ct., Suite 100

Orlando, Florida 32826

Attention: 

J. James Gaynor

Tel:  

407-382-4003

Fax: 

407-382-4007

Email:

jgaynor@lightpath.com

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

Baker & Hostetler LLP

SunTrust Center

200 South Orange Ave., Suite 2300

Orlando, Florida 32801

Attention: 

Jeffrey E. Decker

Tel:  

407-649-4017

Fax: 

407-841-0168

Email:

jdecker@bakerlaw.com

to the Sellers, to:

69 Hallocks Run

Somers, NY 10589

Attention:

Joseph Menaker

Tel:  

914-591-3070

Fax: 

914-591-3715

Email:

josephm@ispoptics.com

515 Oradell Ave.

Oradell, NJ 07649

Attention:

Mark Lifshotz

Tel:  

914-591-3070

Fax: 

914-591-3715

Email:

markl@ispoptics.com

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

Blank Rome LLP

The Chrysler Building

405 Lexington Avenue

New York, NY 10174

Attention: Peter Schnur

Tel: (212) 885-5435

Email: PSchnur@blankrome.com

    	62 

    	 

    

 

Any Party may change
its contact information for notices and other communications hereunder by notice to the other Parties hereto in accordance with
this Section 9.7.

9.8

Assignment.
This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of the Parties hereto and their
respective successors and assigns; provided, that this Agreement and the rights and obligations hereunder shall not be assignable
or transferable by any Party without the prior written consent of the other Parties hereto. Notwithstanding the foregoing, Buyer
may (a) assign any or all of its rights and interests hereunder to one or more of its Affiliates, and (b) designate one or more
of its Affiliates to perform its obligations hereunder (in the case of both (a) and (b), Buyer nonetheless shall remain responsible
for the performance of all of Buyer’s obligations hereunder).

9.9

No Third-Party Beneficiaries.
Except for contemplated third party beneficiaries as expressly provided otherwise in this Agreement (including provisions benefiting
the Persons contained in Section 5.14 and Section 5.16 hereof and ARTICLE VII hereof), this Agreement is for
the sole benefit of the Parties hereto and their permitted successors and 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 assigns, any legal or equitable
rights, remedy or claim hereunder.

9.10

Amendments.
No amendment to this Agreement shall be effective unless it shall be in writing and signed by Buyer and Sellers.

9.11

Disclosure Schedules.
The Seller Disclosure Schedule and the Company Disclosure Schedule (collectively, the “Disclosure Schedules”)
shall be subject to the following terms and conditions: (a) no disclosure of any matter contained in the Disclosure Schedule shall
create an implication that such matter meets any standard of materiality (matters reflected in the Disclosure Schedule are not
necessarily limited to matters required by this Agreement to be reflected in the Disclosure Schedule; such additional matters are
set forth for informational purposes only and do not necessarily include other matters of a similar nature, nor shall the inclusion
of any item be construed as implying that any such item is “material” for any purpose); (b) any item disclosed in any
particular part of the Disclosure Schedules shall be deemed to be disclosed in all parts of the Disclosure Schedules to the extent
its relevance is reasonably apparent on its face, (c) any disclosures contained in the Disclosure Schedule which refer to a document
are qualified in their entirety by reference to the text of such document, a true and complete copy of which was included in the
due diligence information supplied to Buyer; and (d) headings and introductory language have been inserted on the sections of the
Disclosure Schedule for convenience of reference only and shall to no extent have the effect of amending or changing the express
description of the sections as set forth in this Agreement.

9.12

Non-Recourse.
Other than the express representations and warranties of the Sellers, and their Liability therefor, pursuant to this Agreement,
no past, present or future director, manager, officer, employee, incorporator, agent, attorney or Representative of the Acquired
Companies or any of their respective Affiliates shall have be deemed to (a) have made any representations or warranties in connection
with the Transactions, or (b) have any personal Liability to Buyer for any obligations or Liabilities of the Acquired Companies
under this Agreement for any claim based on, in respect of, or by reason of, the Transactions. It is further understood that any
certificate or certification contemplated by this Agreement and executed by an officer of a Party shall be deemed to have been
delivered only in such officer’s capacity as an officer of such Party (and not in his or her individual capacity) and shall
not entitle any Party to assert a claim against such officer in his or her individual capacity.

    	63 

    	 

    

9.13

Construction.
In construing this Agreement, including the Exhibits and Schedules and hereto, the following principles shall be followed: (a)
the terms “herein,” “hereof,” “hereby,” “hereunder” and other similar terms refer
to this Agreement as a whole and not only to the particular Article, Section or other subdivision in which any such terms may be
employed; (b) except as otherwise set forth herein, references to Articles, Sections, Schedules and Exhibits refer to the Articles,
Sections, Schedules and Exhibits of this Agreement, which are incorporated in and made a part of this Agreement; (c) a reference
to any Person shall include such Person’s predecessors; (d) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP; (e) no consideration shall be given to the headings of the Articles, Sections, Schedules,
Exhibits, subdivisions, subsections or clauses, which are inserted for convenience in locating the provisions of this Agreement
and not as an aid in its construction; (f) the word “includes” and “including” and their syntactical variants
mean “includes, but is not limited to” and “including, without limitation,” and corresponding syntactical
variant expressions; (g) a defined term has its defined meaning throughout this Agreement, regardless of whether it appears before
or after the place in this Agreement where it is defined, including in any Schedule or Exhibit; (h) the word “dollar”
and the symbol “$” refer to the lawful currency of the United States of America; and (i) the plural shall be deemed
to include the singular and vice versa.

9.14

Entire Agreement.
This Agreement (including any Exhibit or Schedule attached hereto) and the Transaction Documents contain the entire agreement and
understanding among the Parties hereto with respect to the subject matter hereof and, except as explicitly set forth herein, supersede
all prior and contemporaneous oral and written agreements and understandings relating to such subject matter.

9.15

Severability.
If any provision of this Agreement or the application of any such provision to any Person or circumstance shall be held invalid,
illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision hereof.

9.16

Mutual Drafting.
The Parties hereto are sophisticated and have been represented by counsel who have carefully negotiated the provisions hereof.
As a consequence, the Parties do not intend that the presumptions of any Laws or other rules relating to the interpretation of
contracts against the drafter of any particular clause should be applied to this Agreement and therefore waive their effects.

9.17

Counterparts; Facsimile.
This Agreement may be executed in one or more counterparts, including by facsimile or email, all of which shall be considered one
and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and
delivered to the other Party.

[SIGNATURES ON NEXT
PAGE]

    	64 

    	 

    

 

INTENDING TO BE LEGALLY
BOUND, the undersigned Buyer has executed this Stock Purchase Agreement as of the date first written above.

	 	BUYER: 
	 	 	 	 
	 	LIGHTPATH TECHNOLOGIES, INC.
	 	 	 	 
	 	 	 	 
	 	By:  	/s/ J. James Gaynor
	 	 	Name: 	J. James Gaynor
	 	 	Title:	President & CEO
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

[BUYER SIGNATURE
PAGE TO STOCK PURCHASE AGREEMENT]

    	 

    	 

    

 

INTENDING TO BE LEGALLY
BOUND, the undersigned Company has executed this Stock Purchase Agreement as of the date first written above.

	 	BUYER: 
	 	 	 	 
	 	ISP OPTICS CORPORATION
	 	 	 	 
	 	 	 	 
	 	By:  	/s/ Joseph Menaker
	 	 	Name: 	Joseph Menaker
	 	 	Title:	President
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

[COMPANY SIGNATURE PAGE TO STOCK PURCHASE
AGREEMENT]

    	 

    	 

    

 

INTENDING TO BE LEGALLY
BOUND, the undersigned Sellers have executed this Stock Purchase Agreement as of the date first written above.

SELLERS:

	/s/ Joseph Menaker	 	/s/ Mark Lifshotz
	Joseph Menaker	 	Mark Lifshotz

 

[SELLERS SIGNATURE
PAGE TO STOCK PURCHASE AGREEMENT]

    	 

    	 

    

 

Exhibit A

THIS PROMISSORY NOTE IS MADE AND ISSUED
PURSUANT TO THE PROVISIONS OF A STOCK PURCHASE AGREEMENT. THE MAKER MAY, IN THE MANNER AUTHORIZED IN THE STOCK PURCHASE AGREEMENT,
OFFSET AGAINST PAYMENTS DUE HEREUNDER ANY AMOUNTS DUE BY THE PAYEE TO THE MAKER ARISING UNDER THE STOCK PURCHASE AGREEMENT. ANY
SUCH AMOUNTS CLAIMED BY MAKER WHICH ARE OFFSET AGAINST THIS PROMISSORY NOTE SHALL REDUCE THE PRINCIPAL BALANCE OF THIS PROMISSORY
NOTE.

UNSECURED PROMISSORY NOTE

	U.S. $__,000,000.00	________, 2016
	 	New York, New York

FOR VALUE RECEIVED, the undersigned,
LightPath Technologies, Inc., a Delaware corporation (“Maker”), promises to pay to the order of Joseph
Menaker, an individual, and Mark Lifshotz, an individual (collectively, “Payee”), at __________________
or at such other place as Payee may designate, the principal sum of _____ Million Dollars ($__,000,000.00), with interest thereon
as provided in this Unsecured Promissory Note (“Note”).

1.

This Note is being
executed in connection with the closing of a Stock Purchase Agreement dated as of August 3, 2016 by and between Maker, ISP Optics
Corporation, a New York corporation (“ISP”) and all of the shareholders of ISP, including Payee (the “Purchase
Agreement”). All capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.
As is further set forth in the Purchase Agreement, this Note shall be delivered on the Closing Date, and the principal amount of
the Note may be adjusted in accordance with the Purchase Agreement.

2.

During the period commencing
on the date hereof and continuing until the fifteen month anniversary of the Closing Date (the “Initial Period”),
interest shall accrue on only that amount of the principal amount of this Note in excess of Two Million Seven Hundred Thousand
Dollars ($2,700,000) at an interest rate equal to ten percent (10%) per annum. After the Initial Period, interest shall accrue
on the entire unpaid principal amount of this Note from time to time outstanding, at an interest rate equal to ten percent (10%)
per annum. If any amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, such overdue amount shall bear interest at the rate equal to twelve percent (12%) per annum
from the date of such non-payment until such amount is paid in full. All interest shall be computed on the basis of a 365-day year
and the actual number of days elapsed.

3.

Interest shall be payable
to Payee semi-annually in arrears on each __________ and __________ that this Note is outstanding, commencing on the first such
date to occur after the Closing Date (each an “Interest Payment Date”). If any such Interest Payment Date is
not a Business Day, then such payment shall be due on the next succeeding Business Day. Any unpaid interest and principal, together
with any other amounts payable hereunder, shall be due and payable on the fifth anniversary of the date of this Note. All payments
under this Note shall first be applied to any accrued and unpaid interest and thereafter to the unpaid principal amount hereof.

    	  

    	 

    

4.

It shall be an “Event
of Default” under this Note if:

(a)

Maker fails to
make any payment when due under this Note and such payment is not cured within five (5) days after Maker’s receipt of written
notice of such failure.

(b)

Maker commences
any case, proceeding or other action (i) under any existing or future Law relating to bankruptcy, insolvency, reorganization, or
other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt
or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts or (ii) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
for it or for all or any substantial part of its assets, or Maker makes a general assignment for the benefit of its creditors;

(c)

there is commenced
against Maker any case, proceeding or other action of a nature referred to in Section 4(b) which (i) results in the entry of an
order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or unbonded for a period of
ninety (90) days;

(d)

there is commenced
against Maker any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar process against
all or any substantial part of its assets which results in the entry of an order for any such relief which has not been vacated,
discharged, or stayed or bonded pending appeal within ninety (90) days from the entry thereof;

(e)

Maker takes any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in Section 4(b),
(c) and (d);

(f)

Maker is generally
not, or shall be unable to, or admits in writing its inability to pay its debts as they become due; or

(g)

There occurs
a change of control of Maker as a result of (i) a sale of all or substantially all of the assets of Maker or (ii) a transaction
by and between Maker and any “Person” (having the meaning ascribed to such term in Section 3(a)(9) of the Exchange
Act and used in Sections 13(d) and 14(d) thereof, including a “group” within the meaning of Section 13(d)(3)), whereby
the stockholders of Maker immediately prior to such transaction own less than fifty percent (50%) of the total fair market value
or total voting power of the equity of the acquiring or surviving entity, as applicable.

    	2 

    	 

    

5.

Upon the occurrence
of an Event of Default, without any further act of Payee or any other Person, the entire unpaid and outstanding principal balance
of this Note, together with all accrued and unpaid interest and any and all other amounts payable hereunder, shall immediately
be due and payable, and Payee may exercise all or any of its rights under applicable Law.

6.

This Note may be prepaid
in whole or in part without penalty or premium. All references to Dollars herein are to lawful currency of the United States of
America.

7.

Any extension of this
Note granted to Maker by Payee shall not release Maker, or constitute a waiver, of any payment due on principal or interest, or
otherwise diminish the rights of Payee. The obligations evidenced or created by this Note, as well as all waivers of rights by
Maker contained herein, shall effectively bind and be the obligations and waivers of any and all others who may at any time become
liable for the payment of all or any part of this Note, including, without limitation, all endorsers and guarantors. Payee may
not assign or transfer, by operation of law or otherwise, this Note or any of Payee’s rights or obligations hereunder, in
whole or in part, without the express prior written consent of Maker. Subject to the foregoing, this Note shall be binding upon
and inure to the benefit of the Parties and their respective heirs, representatives, successors and permissible assigns.

8.

No delay or omission
on the part of Payee in exercising any of its remedies hereunder shall be deemed a continuing waiver of that right or any other
right. The acceptance of Payee of any payment pursuant to the terms of this Note which is less than payment in full of all amounts
due and payable at the time of such payment shall not constitute a waiver of the right to (a) collect such payment(s) in full and/or
(b) exercise any of the foregoing options at that time or at any subsequent time or nullify any prior exercise of any such option,
without the express written consent of Payee, except and as to the extent otherwise required by law.

9.

Nothing herein shall
be construed or operate as to require Maker, or any person liable for the payment of the Note, to pay interest or charges in an
amount or at a rate greater than the highest rate permissible under applicable law. Should any interest or other charges paid by
Maker result in the computation or earning of interest in excess of such rate, then any and all such excess shall be and the same
is hereby waived by Payee, and all such excess shall be automatically credited against the principal balance of this Note, and
any portion of said excess that exceeds the principal balance shall be paid by Payee to Maker.

10.

Any provision of this
Note may be amended, waived or modified only upon the written consent of Maker and Payee. If any provision of this Note is found
to be illegal or unenforceable, the other provisions shall remain effective and enforceable to the fullest extent permitted by
law. Maker and Payee have each had the opportunity to have independent legal counsel review and seek to revise this Note, and this
Note therefore shall not be interpreted against any party as the drafter. This Note shall be governed by, construed and enforced
in accordance with the laws of the State of New York.

11.

All notices or other
communications required or permitted hereunder shall be in writing and shall be deemed given or delivered in the manner provided
in the Purchase Agreement.

    	3 

    	 

    

 

IN WITNESS WHEREOF, Maker has executed
this Note in favor of Payee as of the date first written above.

	 	“MAKER”
	 	 
	 	LightPath Technologies, Inc., a Delaware corporation
	 	 
	 	 
	 	 
	 	By:
	 	Its:

 

    	4

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