Document:

Exhibit 10.8

 

BUSINESS ACQUISITION AGREEMENT 

 

 

BY AND BETWEEN 

 

 

CASTELLUM, INC. 

 

 

AND 

 

 

LEXINGTON SOLUTIONS GROUP, LLC 

 

 

February 11, 2022

 

    	 	 	 

     

    

 

	 	TABLE OF CONTENTS	 
	 	 	 
	DESCRIPTION	 	PAGE
	 
	ARTICLE I PURCHASE AND SALE OF ASSETS AND ASSUMPTION OF LIABILITIES	1
	Section 1.1	Purchase of Acquired Business	1
	Section 1.2	Closing	1
	Section 1.3	Acquisition Consideration	1
	Section 1.4	Payments in connection with Closing	2
	Section 1.5	Purchase Price Adjustment	2
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF SELLER	4
	Section 2.1	Organization	4
	Section 2.2	Authorization of Transaction	4
	Section 2.3	Noncontravention; Consents	4
	Section 2.4	Title to Acquired Business	5
	Section 2.5	Litigation	5
	Section 2.6	Brokers’ Fees	5
	Section 2.7	[Government Contracts	5
	Section 2.8	Compliance with Law	7
	Section 2.9	Assets Used in the Acquired Business	8
	Section 2.10	Taxes	8
	Section 2.11	No Other Agreements to Sell	8
	Section 2.12	Employees and Consultants	8
	Section 2.13	Employee Benefit Plans	9
	Section 2.14	CARES Act	10
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BUYER	11
	Section 3.1	Organization	11
	Section 3.2	Authorization of Transaction	11
	Section 3.3	Noncontravention; Consents	11
	Section 3.4	Litigation	11
	ARTICLE IV COVENANTS	11
	Section 4.1	General	11
	Section 4.2	Post-Closing Consents and Approvals; Nonassignable Contracts	11
	Section 4.3	Agreements Regarding Tax Matters	12

 

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	Section 4.4	Confidentiality	13
	Section 4.5	Employees	14
	Section 4.6	Non-Competition; Non-Solicitation	16
	Section 4.7	Efforts	16
	ARTICLE V REMEDIES	17
	Section 5.1	Survival	17
	Section 5.2	Indemnification	17
	Section 5.3	Limitations on Indemnification	18
	Section 5.4	Third-Party Claims	18
	Section 5.5	Exclusive Remedy	19
	Section 5.6	Payment and Limited Setoff	19
	ARTICLE VI CONDITIONS TO CLOSING	19
	Section 6.1	Conditions to Obligation of Buyer	19
	Section 6.2	Conditions to Obligation of Seller	20
	Section 6.3	Frustration of Closing Conditions	20
	ARTICLE VII TERMINATION	20
	Section 7.1	Grounds for Termination	20
	Section 7.2	Effect of Termination	21
	ARTICLE VIII MISCELLANEOUS	21
	Section 8.1	Notices	21
	Section 8.2	Expenses	22
	Section 8.3	Amendment; Assignment; Waivers	22
	Section 8.4	Entire Agreement; Severability	22
	Section 8.5	Specific Performance	23
	Section 8.6	Construction	23
	Section 8.7	Counterparts	23
	Section 8.8	No Third-Party Beneficiaries	24
	Section 8.9	Governing Law	24
	Section 8.10	Waiver of Jury Trial	24
	Section 8.11	Non-Recourse	24
	Section 8.12	Public Announcements	25

 

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SCHEDULES AND EXHIBITS: 

 

	Schedule 1.1	Acquired Business
	Schedule 2.7(b)(v)	Orders and Other Contracts
	Schedule 4.5	Transferred Employees
	Exhibit A	Definitions
	Exhibit B	Bill of Sale, Assignment and Assumption Agreement

 

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BUSINESS ACQUISITION AGREEMENT

 

This
BUSINESS ACQUISITION AGREEMENT (this “Agreement”),
dated as of February 11, 2022, is made by and between Castellum, Inc., a Nevada corporation (“Buyer”)
and Lexington Solutions Group, LLC, a Virginia limited liability company (the “Seller”).
Capitalized terms used herein shall have the meaning set forth on Exhibit A. 

 

RECITALS 

 

WHEREAS, this Agreement
contemplates a transaction in which the Buyer shall acquire substantially all of the assets and assume liabilities of the Seller
on the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual agreements contained herein, and for other good and valuable consideration, the value,
receipt and sufficiency of which are acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

ARTICLE I 

PURCHASE AND SALE OF ASSETS
AND ASSUMPTION OF LIABILITIES 

 

Section
1.1      Purchase of Acquired Business. On the terms and subject to the conditions set forth in
this Agreement, at the Closing, the Buyer agrees to purchase from the Seller, and the Seller hereby agrees to sell, transfer,
assign, convey and deliver to the Buyer, all of the right, title and interest in and to the assets described on Schedule 1.1,
free and clear of all Liens, and the Buyer will assume and agree to pay, discharge and perform when due, all of the Assumed
Liabilities (such assets and Assumed Liabilities, collectively the “Acquired
Business”). For the purpose of clarity,
notwithstanding anything to the contrary herein or in any other Ancillary Document, the Buyer shall not assume, be bound by or be
responsible for any Excluded Liabilities. 

  

Section
1.2     Closing. Unless this Agreement will have been terminated, the closing of the transactions
contemplated by this Agreement (the “Closing”)
shall take place no later than two (2) Business Days following the satisfaction or waiver of all the conditions to Closing set forth
in Article VI, or on such other date as may be agreed to by the Parties (the “Closing
Date’’). The Closing shall take place by conference call and electronic transmission of signatures. The Closing
will be deemed effective as of 12:01 a.m. (Eastern time) on the Closing Date.

 

Section
1.3       Acquisition Consideration . Subject to and in accordance with the terms and
conditions set forth herein, the aggregate consideration to be transferred to Seller in connection with the Acquired Contracts shall
consist of (i) twelve million five hundred thousand (12,500,000) shares of Buyer’s
Common Stock, validly issued and outstanding, fully paid, nonassessable, free and clear of all Encumbrances other than the transfer
and other restrictions pursuant to any State or federal securities Laws (the “Stock
Consideration”) with (x) twelve million shares of
Buyer’s Common Stock issued as set forth in Section 1.4 (the “Initial
Stock Consideration”) and, (y) subject to Section 1.5,
five hundred thousand (500,000) shares of Buyer’s Common Stock
(the “Holdback Stock Consideration”)
issued within 3 Business Days of the payment of the Second Tranche (as defined below) and (ii) seven hundred fifty thousand dollars
($ 780,000.00) (the “Cash
Consideration”) payable as follows: (x) two hundred
fifty thousand dollars ($250,000.00) plus or minus any applicable Closing Adjustment paid on the Closing Date as set forth in Section
1.4 (the  “Initial Cash
Consideration”); (y) two hundred fifty thousand
dollars ($250,000.00) plus or minus any applicable Post-Closing Adjustment paid on the date that is six (6) months after the Closing
Date (“Second Tranche”)
and (z) two hundred eighty thousand dollars ($280,000.00) paid on the date that is ten (10) months after the Closing Date. Together,
the Stock Consideration and the Cash Consideration shall be considered the “Purchase
Price”. 

 

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Section 1.4         Payments in connection with Closing.

 

Buyer shall:

 

(a)        within
three (3) Business Days of the Closing Date, deliver via book-entry to Seller the Initial Stock Consideration; and

 

(b)        on
the Closing Date deliver to Seller the Initial Cash Consideration.

 

Section 1.5         Purchase Price Adjustment.

 

(a)
       At least three (3) Business Days prior to the Closing, Seller and Buyer shall finalize
an estimated statement, which sets forth the Net Working Capital as of the Closing Date (the “Estimated
Closing Working Capital”).

 

(b)        At
least two (2) Business Days prior to the Closing, Seller and Buyer shall agree upon a flow of funds memorandum, which sets forth
all payments required to be made by or on behalf of all Parties at the Closing, including for each such payment an identification
of the payor, the payee, the amount and the wire transfer information.

 

(c)
       The Purchase Price shall be: (i) increased dollar-for-dollar by the amount that the Estimated
Closing Working Capital is greater than the Target Working Capital and such increase shall paid by Buyer in cash at Closing by
a corresponding increase to the Initial Cash Consideration, or (ii) decreased dollar-for-dollar by the amount that the Estimated
Closing Working Capital is less than the Target Working Capital and such decrease shall be paid by Seller at Closing by a corresponding
decrease to the Cash Consideration. The amount of any such adjustment pursuant to this Section 1.5(c) shall be referred
to herein as the “Closing Adjustment”.

 

(d)
       Prior to the payment of the Second Tranche, the Buyer shall prepare and deliver to the
Seller a Closing Statement (the “Closing Statement”)
which shall set forth the Net Working Capital as of the Closing Date (“Closing
Working Capital”). 

 

(e)
       The Second Tranche payment shall be (i) increased dollar-for-dollar by the amount that
the Closing Working Capital is greater than the Estimated Closing Working Capital or (ii) decreased dollar-for-dollar by the amount
that the Closing Working Capital is less than the Estimated Closing Working Capital. The amount of any such adjustment pursuant
to this Section 1.5(e) shall be referred to herein as the “Post-Closing
Adjustment”. Notwithstanding the foregoing, the first
$50,000 of such Post-Closing Adjustment shall be satisfied from the Holdback Stock Consideration and, to the extent, the Holdback
Stock Consideration is not sufficient to satisfy such amount, the Initial Stock Consideration. To the extent the Post-Closing Adjustment
is in excess of $50,000, the first $50,000 of such Post-Closing Adjustment shall be satisfied as set forth above and any remainder shall be
satisfied in cash and may be set off from amounts otherwise due the Seller from the Second Tranche.

 

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(a)
       The Seller shall have a period of thirty (30) days after receipt of the Closing Statement
to notify the Buyer of the Seller’s election to accept or
reject the Buyer’s calculation of the amount of the Net
Working Capital as of the Closing Date in a written notice (the “Response
Notice”). During such thirty (30)-day period, Buyer
shall provide the Seller reasonable access to information in its books and records that the Seller reasonably requests that Buyer
used to prepare the Closing Statement; provided, that Buyer shall not be required to provide access to information that
would jeopardize any attorney-client privilege, attorney work product protection or other similar privilege associated with such
information. In the case of a rejection, such Response Notice shall set forth the line item or items on the Closing Statement
that it is rejecting, the reasons and basis for such rejection in reasonable detail (including Buyer’s refusal to provide
Seller with sufficient access to books and records so as to evaluate the item) and the amount of the requested adjustment. In
the event that no Response Notice is received by the Buyer during such thirty (30)-day period, the Closing Statement and any required
adjustments resulting therefrom shall be final and binding on the parties hereto. In the event that the Seller shall timely deliver
a Response Notice rejecting the Buyer’s calculation of amount
of the Closing Working Capital, the Buyer and the Seller shall promptly (and in any event within fifteen (15) days following the
date upon which the Buyer received the Response Notice), attempt in good faith to make a joint determination of the Closing Working
Capital and such determination and any required adjustments resulting therefrom shall be final and binding on the Shareholder
and Buyer for purposes of this Section 1.5.

 

(b)
       In the event that the Seller and the Buyer shall be unable to agree upon a joint determination
of the Closing Working Capital within thirty (30) days following the date upon which the Buyer received the Response Notice, then
within fifteen (15) days after the expiration of such thirty (30)-day period, the Buyer and the Seller shall appoint by mutual
agreement the office of an impartial nationally recognized firm of independent certified public accountants other than any Seller’s
accountants or Buyer’s accountants (the “Accounting
Firm”) to resolve such dispute. 

 

(c)
       The Accounting Firm shall consider only those matters set forth in the Response Notice
upon which the Buyer and the Seller have disagreed (the “Disputed
Items”) and shall be required to resolve the Disputed
Items in accordance with the terms and provisions of this Agreement. In connection with the resolution of the Disputed Items by
the Accounting Firm: (i) each of the Buyer and the Seller shall furnish or cause to be furnished to the Accounting Firm a statement
setting forth in reasonable detail the Disputed Items and, to the extent practical, such Party’s proposed resolution of each
such Disputed Item; (ii) the Accounting Firm shall be permitted to ask questions of either Party and ask for additional information
from either Party relating to the Disputed Items; (iii) neither Party shall participate in ex parte communications with the Accounting
Firm; (iv) the Accounting Firm shall only decide the specific Disputed Items and the determination by the Accounting Firm for each
Disputed Item shall be equal to one of the values, or within the range between the values, assigned to such Disputed Item by the
Buyer and the Seller in the materials delivered to the Accounting Firm (or if the materials delivered to the Accounting Firm reflect
that either Party assigned multiple values at various times, such determination by the Accounting Firm shall be equal to one of,
or within the range between, the most recent values assigned by the Parties); (v) the Accounting Firm shall make its determination
for all remaining Disputed Items as of
the Closing based on the materials it receives in accordance with this Agreement and not pursuant to any independent review (provided
that the foregoing shall not preclude the Accounting Firm from independent research as to proper application of the terms of this
Agreement with respect to the Disputed Items and the amount of the Closing Working Capital) and (vi) the Parties shall use commercially
reasonable efforts to cause the Accounting Firm to deliver its final written report to the Parties within thirty (30) days of the
submission to the Accounting Firm of the Disputed Items, and shall be final and binding on the Parties for purposes of this Section
1.5. For the avoidance of doubt, the Accounting Firm shall act as an expert and not as an arbitrator and shall review only
those items that are in dispute.

 

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(d)        The
fees and expenses of the Accounting Firm shall be allocated to be paid by the Buyer, on the one hand, and/or the Shareholder, on
the other hand, respectively, based upon the percentage which the portion of the amount contested and not awarded to each Party
bears to the total amount contested by such Party, as finally determined by the Accounting Firm.

 

ARTICLE II 

REPRESENTATIONS AND WARRANTIES
OF SELLER 

 

Seller represents and warrants to the Buyer
as follows:

 

Section 2.1      Organization.
Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the Commonwealth
of Virginia. Seller is duly qualified or licensed to do business as a foreign company and is in good standing in each jurisdiction
in which the ownership or lease of the Acquired Business or the conduct of the Acquired Business requires such qualification or
license, except where the failure to be so qualified or be so licensed can be cured without a material cost or expense. Seller
has all requisite power and authority to carry on the Acquired Business as currently conducted and to own, lease or use, as the
case may be, the Acquired Business.

 

Section 2.2      Authorization
of Transaction. Seller has all requisite power and authority to execute, deliver and perform this Agreement and each of the
Ancillary Documents to which Seller is a party. All acts required to authorize the execution and delivery of this Agreement by
Seller have been taken. This Agreement constitutes, and each Ancillary Document when executed and delivered by Seller will constitute,
a valid and legally binding obligation of Seller (assuming that this Agreement and such Ancillary Documents constitute valid and
legally binding obligations of the other party or parties thereto), enforceable in accordance with its terms and conditions, except
as enforceability may be limited by the Enforceability Exceptions.

 

Section 2.3      Noncontravention;
Consents. The execution and delivery by Seller of this Agreement and the Ancillary Documents to which Seller is a party, and
the consummation by Seller of the Contemplated Transactions, do not: (a) violate any Law to which the Acquired Business is subject;
(b) conflict with or result in a breach of any provision of the certificate of organization or the operating agreement of Seller;
(c) create a breach, default, termination, cancellation or acceleration of any obligation of Seller arising under or pursuant to
any of the Acquired Business; (d) require any permit, notice to, or consent or approval of any Governmental Entity; or (e) result
in the creation or imposition of any Lien, other than a Permitted Lien, upon any of the Acquired Business, except, in the cases
of clauses (c)-(e), as would not, individually or in the aggregate, reasonably be likely
to be material to Seller. No transfer of any of the Acquired Business is being made and no obligation is being incurred in connection
with the Contemplated Transactions with the intent to hinder, delay or defraud any Person, including present or future creditors
of Seller.

 

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Section 2.4       Title
to Acquired Business. Seller has good title to all of the Acquired Business, free and clear of all Liens except for the Permitted
Liens. At the Closing, the Acquired Business shall be transferred to the Buyer free and clear of all Liens except for the Permitted
Liens.

 

Section 2.5        Litigation.
There are no Actions pending, or to the Knowledge of the Seller, threatened against Seller or any of its Affiliates involving,
relating to, or otherwise reasonably likely to affect the Acquired Business or the Contemplated Transactions. There are no unsatisfied
judgments of record or Government Orders relating to or reasonably likely to affect the Acquired Business.

 

Section
2.6      Brokers’ Fees.
Neither Seller, nor any of its Affiliates, have any liability to pay any fees or commissions to any broker, finder or similar agent
with respect to the Contemplated Transactions. 

 

Section 2.7        Government
Contracts.

 

(a)
       A true and complete copy of the Acquired Contracts, including any statements of work,
task or delivery orders thereunder and modifications or amendments thereto and any other agreements related to the Acquired Business,
has been delivered to the Buyer, to the extent the disclosure of each does not violate any laws or binding obligations. All material
documentation and correspondence related to the Acquired Contracts in Sellers’ possession,
including any financial records or other records required to be maintained by Seller under the Acquired Contracts or applicable
Laws have been delivered to the Buyer, to the extent the disclosure of each does not violate any laws or binding obligations. The
Acquired Contracts and any other contracts included in the Acquired Business constitute the legal, valid and binding obligations
of the Seller and the counter-party thereto, are in full force and effect, and are enforceable in accordance with their terms except
as limited by the Enforceability Exceptions. 

 

(b)        With
respect to the Acquired Contracts:

 

(i)        Seller
has materially complied with all terms and conditions of such Acquired Contracts and all Laws pertaining thereto;

 

(ii)
       all representations and certifications made by Seller in connection with such Acquired
Contracts were accurate and complete at the time they were made and Seller has materially complied with the representations and
certifications;

 

(iii)
       Seller has not received any written, or, to the Knowledge of the Seller, oral, notice
from the U.S. Government or other Person stating that Seller has breached, or alleging that Seller has breached, or may have breached,
or otherwise violated any Law pertaining to the Acquired Business or Acquired Contract, or certification, representation, clause,
provision or requirement pertaining to the Acquired Contract;

 

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(iv)
       Seller does not have any outstanding bids to perform services under such Acquired Contracts;

 

(v)        except
as set forth on Schedule 2.7(b)(v), Seller has not been awarded any statements of work, purchase orders, or task orders
and Seller does not have any subcontracts, teaming agreements, joint ventures, contractor team arrangements, work sharing, or similar
agreements or commitments of any kind (written or oral) with respect to such Acquired Contracts;

 

(vi)
       no termination for convenience, termination for default, cure notice, stop work notice
or show cause notice has been issued to Seller pertaining to such Acquired Contracts, and, to the Knowledge of the Seller, there
are no acts or omissions that would reasonably be expected to result in a termination for convenience, termination for default,
cure notice, stop work notice or show cause notice pertaining to such Acquired Contracts;

 

(vii)
       (A) all amounts previously billed by Seller to such Acquired Contracts have been properly
billed to such Acquired Contracts; (B) there does not exist and has not existed any material irregularity, misstatement or omission
arising under or relating to such Acquired Contracts that has led or could reasonably be expected to lead to any material damage,
penalty assessment, withholding, setoff, recoupment of payment or disallowance of cost; (C) no task order under such Acquired Contracts
has incurred costs that exceed such task order price or estimated cost; and (D) no task order under such Acquired Contracts has
incurred costs that exceed the amount of funding obligated under such task order; and

 

(viii)
       No Governmental Entity or any other Person whose consent is required for the Seller to
assign the Acquired Contract in connection with this Agreement has notified the Seller of its intent to refuse its consent to such
assignment, and to the Knowledge of the Seller, there exist no facts or circumstances indicating that any Governmental Entity or
any other Person whose consent is required for the Seller to assign the Acquired Contract intends to refuse to consent to such
assignment.

 

(c)       (i) There
are no outstanding claims against Seller, either by any Governmental Entity or by any other Person, arising under or relating to
any Acquired Contracts; (ii) there has not been any withholding or set-off of any payment by a Governmental Entity or any other
Person, nor, to the Knowledge of the Seller, has there been any attempt to withhold or set-off any money due under any Acquired
Contracts, and (iii) there have not been any disputes between Seller and any other Person, including any Governmental Entity, arising
under or relating to any Acquired Contracts.

 

(d)        Neither
Seller, any Principal of Seller, nor, to the Knowledge of the Seller, any employee of Seller who has performed services under any
Acquired Contracts is currently being or has been within the past three (3) years, audited or investigated with respect to such
Acquired Contracts by any Governmental Entity, and to the Knowledge of the Seller, no such audit or investigation is threatened.

 

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(e)
       Neither Seller, any Principal of Seller, nor, to the Knowledge of the Seller, any employee
of Seller who has performed services under any Acquired Contracts, is or has been under civil, administrative or criminal investigation
or indictment or has information with respect to any alleged fraudulent or criminal activity involving such Acquired Contracts
or the Acquired Business; and neither the Seller, any of its Principals, nor any employee of Seller who has performed services
under any Acquired Contracts, has made, nor is required to make, any disclosure to a Governmental Entity, an Inspector General
or a government contracting officer in connection with the Seller’s
performance of such Acquired Contracts under FAR Subpart 3.1003 or FAR 52.203-13. 

 

(f)        Neither
Seller, any Principal of Seller, nor any employee of Seller who has performed services under any Acquired Contracts, is currently
or within the past three (3) years has been suspended, debarred, proposed for debarment or otherwise been found nonresponsible
or otherwise ineligible for award of a government contract.

 

(g)        Seller
has not had access to non-public information or provided systems engineering, technical direction, consultation, technical evaluation,
source selection services or services of any type, or prepared specifications or statements of work, nor engaged in any other conduct
that would create, in connection with any Governmental Entity procurement, an organizational conflict of interest as defined in
the FAR Subpart 9.5, or other applicable Law or regulation.

 

(h)        Seller
and its respective officers, employees, agents, consultants, and, for the avoidance of doubt, the Transferred Employees as identified
in Section 4.5 herein, have complied in all material respects with the requirements of the National Industrial Security
Program Operating Manual, and possess all facility security clearances and personnel security clearances required to perform the
Acquired Contracts as being performed as of the Closing Date. The Seller is not required to possess or have employees with any
facility security clearances or personnel security clearances to perform the Acquired Contracts in the ordinary course of business,
except as set forth on Schedule 2.7(h).

 

      (i)           Schedule
2.7(i) sets forth all Government Furnished Equipment in the Seller’s
possession, together with the Acquired Contract under which it was provided and its current location. To the extent required,
Seller has certified to the applicable Governmental Entity in a timely manner that all Government Furnished Equipment is in good
working order, reasonable wear and tear excepted, and otherwise meets the requirements of the Acquired Contracts and all applicable
Laws. There are no outstanding loss, damage or destruction reports that have been or should have been submitted to any Governmental
Entity in respect of any Government Furnished Equipment. 

 

Section 2.8       Compliance
with Law. Seller has operated the Acquired Business in material compliance with all Laws applicable to the Acquired Business.
Neither Seller nor any of its Affiliates have received any written notice alleging non-compliance with any Laws applicable to the
Acquired Business.

 

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Section 2.9        Assets
Used in the Acquired Business. The Acquired Business constitutes all of the assets, licenses (including software), rights and
agreements which are primarily used by Seller or otherwise necessary to the operation of the Acquired Business.

 

Section 2.10      Taxes.
There are no ongoing or pending Tax audits by any taxing authority against Seller relating to the Acquired Business. There are
no Liens for Taxes upon the assets of the Acquired Business other than Liens for Taxes not yet due and payable or that are contested
in good faith by appropriate proceedings. Seller has withheld and collected all material Taxes required to have been withheld and
collected by it relating to the Transferred Employees and the Acquired Business and, to the extent required, has properly paid
or deposited such Taxes as required by applicable Law. Seller has filed all Tax Returns that were required to be filed with respect
to the Acquired Business prior to the Closing Date and paid all Taxes, whether or not shown as due on such Tax Returns, due with
respect to the Acquired Business.

 

Section 2.11     No
Other Agreements to Sell. Other than this Agreement, neither Seller nor any of its Affiliates has any legal obligation to any
other Person to sell, encumber or otherwise transfer the Acquired Contracts or the Acquired Business (in whole or in part).

 

Section
2.12      Employees and Consultants. Seller has provided the Buyer with a true, accurate and complete list of the names and
titles or job descriptions of each employee of the Seller wholly or primarily dedicated to the Acquired Business, each employee
of the Seller who devotes a material portion of his or her time to the Acquired Business and each consultant or independent contractor
of the Seller wholly or primarily dedicated to the Acquired Business, and for each such Person the annual base salary or wages
payable to each such individual for the current fiscal year. All such Persons classified by the Seller as independent contractors
have satisfied the requirements of applicable Law to be so classified and the Seller has fully and accurately reported each such
Person’s compensation on IRS Form 1099 when required to do
so. A list as described in this Section 2.12 is attached hereto as Schedule 2.12 including all Transferred Employees.
Each employee of the Acquired Business Acquired Business is employed at-will and may terminate his or her employment or be terminated
from such employment at any time for any or no reason with or without prior notice. There currently are no, and within the past
three (3) years there have not been any, actions, lawsuits, administrative charges, proceedings or investigations pending or,
to the knowledge of the Seller, threatened against the Seller before any federal, foreign, state or local court or agency concerning
alleged employment discrimination or any other matters relating to the employment of labor with respect to the Acquired Business.
The Seller is not nor has been a party to, and is or has not been bound by, or has been asked to negotiate a collective bargaining
agreement or other agreement or Contract with any labor organization with respect to the Acquired Business, nor is any such Contract,
as of the date of this Agreement, being negotiated. Within the past three (3) years the Seller has not experienced any work stoppages,
labor strikes, lock-outs, picketing or slowdowns due to labor disagreements and, to the knowledge of the Seller, none are threatened
as of the date of this Agreement with respect to the Acquired Business or any employee. The Seller has not incurred any liability
or obligation that remains unsatisfied under the federal Worker Adjustment and Retraining Notification Act of 1988, as amended
(the “WARN Act”),
and any similar state Laws. The Seller has made timely and proper payment of all amounts payable with respect to any employee,
consultant, contract worker or other service provider of the Acquired Business, including all wages, commissions, bonuses, severance
payments, independent contractor payments, reimbursements, other amounts due pursuant to any employment or services agreement,
withholding
for income and employment Taxes, or otherwise have made appropriate accruals on their books. No employee, consultant, contract
worker or other service provider of the Acquired Business is currently the subject of any complaint or investigation regarding
sexual harassment, or other discrimination, or retaliation with respect to such employee’s
employment by the Seller. No employee, consultant, contract worker or other service provider of the Acquired Business has given
the Seller notice terminating his or her employment or service, or terminating his or her employment or service upon a sale of,
or business combination relating to, the Acquired Business. 

 

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Section 2.13      Employee
Benefit Plans.

 

(a)
       The Seller has provided the Buyer with a true, accurate and complete list of each “employee
benefit plan” (as defined by Section 3(3) of ERISA), and
any other bonus, incentive or executive compensation, commission, deferred compensation, stock option or other equity-based compensation,
stock purchase, key man or other executive insurance, welfare, fringe benefit, post-retirement, scholarship, sick leave, vacation,
paid time off, individual employment, consulting, payroll practice, loan, change of control, or retention plan, agreement, policy
or arrangement that is (i) currently in effect or that has been approved for the benefit of current or former employee, consultant,
contract worker or other service provider of the Acquired Business, or their beneficiaries or dependents, or (ii) with respect
to which the Seller has any obligation to contribute on behalf of any employee, consultant, contract worker or other service provider
of the Acquired Business or any Liability related to any “ERISA
Affiliate” (defined to include, with respect to the Seller,
any trade or business, whether or not incorporated, other than the Seller, that has employees who are, or have been at any date
of determination occurring within the preceding six (6) years, treated pursuant to Section 4001(a)(14) of ERISA or Section 414(b)
of the Code as employees of a single employer that includes the Seller), (each, under Subsection (i) or (ii), an “Employee
Benefit Plan”). Each Employee Benefit Plan has been
operated and administered in all material respects in accordance with its terms and in material compliance with applicable Laws,
and each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination
letter, or is on the form of a prototype or volume submitter plan, as the case may be, subject to an opinion or advisory letter,
and nothing has occurred that could reasonably be expected to adversely affect the qualification of the Employee Benefit Plan under
Section 401(a) of the Code or the tax-exempt status of any related trust under Section 501(a) of the Code. 

 

                                (b)     The
Seller and each Employee Benefit Plan and each Employee Benefit Plan “sponsor”
or “administrator”
(within the meaning of Section 3(16) of ERISA) has complied in all material
respects with COBRA and all applicable state Laws regarding the continuation of group health plan coverage). 

 

(c)
       The Seller and the Seller’s
ERISA Affiliates, have had no obligation to contribute to or provide benefits pursuant to, or any other Liability with respect
to, (i) a defined benefit plan (as defined in Section 3(35) of ERISA), (ii) any plan subject to Section 412 of the Code, Section
302 of ERISA or Title IV of ERISA, (iii) a “multiple employer
welfare arrangement” (within the meaning of Section 3(40)
of ERISA), (iv) a “plan maintained by more than one employer”
(within the meaning of Section 413(c) of the Code), (v) a “multiemployer
plan” (within the meaning of Section 3(37) or 4001(a)(3)
of ERISA), or (vi) any common law theory of joint, dual or multiemployer Liability. 

 

    	 	9	 

     

    

 

(d)        Neither
the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby (either alone or in combination
with any other event) will (i) result in any payment becoming due to any employee, consultant, contract worker or other service
provider of the Acquired Business, (ii) increase the compensation or benefits payable, including equity benefits, under any Employee
Benefit Plan for any employee, consultant, contract worker or other service provider of the Acquired Business, (iii) result in
the acceleration of the time of payment, funding or vesting of any such compensation or benefits, including equity benefits, under
any Employee Benefit Plan, (iv) require any contributions or payments to fund any obligations under any Employee Benefit Plan except
as provided by applicable Law, or (v) entitle any employee, consultant, contract worker or other service provider of the Acquired
Business to terminate his employment or service.

 

(e)        There
is no agreement, plan, arrangement or other contract (including this Agreement or the arrangements contemplated thereby) covering
any employee, consultant, contract worker or other service provider of the Acquired Business that, considered individually or considered
collectively within any other such contracts, will, or could reasonably be expected to, give rise directly or indirectly to the
payment of any amount that would not be deductible pursuant to Section 280G of the Code. None of the Seller or any of its Affiliates
is a party to any contract, nor does it have any obligations (current or contingent), to compensate any employee, consultant, contract
worker or other service provider of the Acquired Business for excise taxes pursuant to Section 4999 of the Code as a result of
the consummation of the transactions contemplated by this Agreement.

 

(f)
       Each Employee Benefit Plan that is a “non-qualified
deferred compensation plan” (as such term is defined in Section
409A(d)(1) of the Code) (i) has, at all times, been administered in material compliance with the requirements of Section 409A of
the Code and applicable guidance issued thereunder, and (ii) is in a from which complies, in all material respects, with the requirements
of Section 409A of the Code, so that its terms and provisions comply with the requirements of Section 409A of the Code, in all
cases so that the additional tax described in Section 409A(a)(1)(B) of the Code will not be assessed against the individuals participating
in any such non-qualified deferred compensation plan with respect to benefits due or accruing thereunder. None of the Seller or
any of its Affiliates has any indemnity obligations for any Taxes owed with regard to any employee, consultant, contract worker
or other service provider of the Acquired Business imposed under Section 409A of the Code. 

 

Section
2.14      CARES Act. The Seller in connection with operating the Acquired Business has (i) properly complied with all applicable
Laws with respect to the deferral of the amount of the employer’s
share of any “applicable employment taxes” under
Section 2302 of the CARES Act, (ii) to the extent applicable, properly complied with all applicable Laws and duly accounted for
any available Tax credits under Sections 7001 through 7005 of the Families First Act and Section 2301 of the CARES Act and (iii)
not sought (nor has any Affiliate that would be aggregated with the Sellers and treated as one employer for purposes of Section
2301 of the CARES Act sought a covered loan under paragraph (36) of Section 7(a) of the Small Business Act (15 U.S.C. 636(a)),
as amended by Section 1102 of the CARES Act. 

 

    	 	10	 

     

    

 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES
OF THE BUYER 

 

The Buyer represents and warrants to the
Seller as follows:

 

Section 3.1       Organization.
The Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. The Buyer
has all requisite company power and authority to carry on its business as currently conducted and as proposed to be conducted
after the Closing.

 

Section 3.2       Authorization
of Transaction. The Buyer has all requisite corporate power and authority to execute, deliver and perform this Agreement and
each of the Ancillary Documents to which it is a party. All corporate acts required to authorize the execution and delivery of
this Agreement by the Buyer have been taken. This Agreement constitutes, and each Ancillary Document when executed and delivered
by the Buyer will constitute, a valid and legally binding obligation of the Buyer (assuming that this Agreement and such Ancillary
Documents will constitute valid and legally binding obligations of the other parties thereto), enforceable in accordance with its
terms and conditions, except as enforceability may be limited by the Enforceability Exceptions.

 

Section
3.3      Noncontravention; Consents. The execution and delivery by the Buyer of this Agreement and the Ancillary Documents
to which it is a party, and the consummation by the Buyer of the Contemplated Transactions, do not: (i) violate any Law to which
the Buyer or its assets are subject; (ii) conflict with or result in a breach of any provision of the certificate of incorporation
or the bylaws the Buyer; (iii) create a breach, default, termination, cancellation or acceleration of any obligation of the Buyer
arising under or pursuant to any contract to which the Buyer is bound or to which any of its assets are subject; or (iv) result
in the creation or imposition of any Lien upon the Buyer’s
assets except, in the cases of clauses (iii)-(iv), as would not, individually or in the aggregate, reasonably be likely to be
material to the Buyer. No notices, permits, consents, approvals, authorizations, qualifications or orders of Governmental Entities
or third parties are required for the consummation by the Buyer of the Contemplated Transactions. 

 

Section
3.4       Litigation. There is no Action pending or, to the knowledge of the Buyer, threatened against the Buyer which questions
or challenges the validity of this Agreement or any action taken or to be taken by the Buyer pursuant to this Agreement or in connection
with the Contemplated Transactions or that could reasonably be expected to materially and adversely affect the Buyer’s
ability to consummate the Contemplated Transactions. 

 

ARTICLE
IV 

COVENANTS

 

Section 4.1       General.
In the event that at any time after the Closing Date any further action is reasonably necessary to carry out the purposes of this
Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments
and documents) as the other Party reasonably may request.

 

Section 4.2        Post-Closing
Consents and Approvals; Nonassignable Contracts.

 

    	 	11	 

     

    

 

(a)        The
Seller shall provide to the Buyer all information and documents necessary, in the sole and unreviewable determination of the Buyer,
for the novation of certain Acquired Contracts. To obtain the approval of the novation of certain Acquired Contracts, and in the
event that any other consent, approval or authorization of any third party required in connection with the Contemplated Transactions
is not obtained by Seller on or prior to the Closing Date, or if any attempted assignment would be ineffective, Seller will use
commercially reasonable efforts, and the Buyer will cooperate in all commercially reasonable respects with Seller, to (i) obtain
all consents, novations and waivers and to resolve all impracticalities of assignment, novation or transfer necessary to convey
the Acquired Business to the Buyer at the earliest practicable date, (ii) provide to the Buyer the benefits of the Acquired Business,
(iii) cooperate in any reasonable and lawful arrangement designed to provide such benefits to the Buyer, and (iv) enforce at the
request of the Buyer and for the account of the Buyer, any rights of Seller arising from the Acquired Business. Once consent is
obtained, the respective contract or other agreement shall be deemed to have been automatically assigned and/or transferred to
the Buyer as of the date the consent is effective.

 

(b)
       As soon as commercially practicable following the date hereof, but no later than ten
(10) Business Days following the Closing Date, Seller, in cooperation with the Buyer, will in accordance with, and to the extent
required by, the National Industrial Security Program Operating Manual, submit in writing to DCSA such documentation and information
as may be required by DCSA in order to obtain DCSA’s approval
of the facility clearances and personal security clearances required by the Buyer to perform the Acquired Contracts (the “Security Clearance Approvals”).
Seller will reasonably cooperate with the Buyer, including by way of furnishing to the Buyer or the U.S. Government such documents
and other information as may be reasonably requested by the Buyer or the U.S. Government or required by Law, in connection with
the Security Clearance Approvals. Seller and the Buyer will each use commercially reasonable efforts to provide all reasonable
information and take all other commercially reasonable actions necessary to obtain the Security Clearance Approvals. 

 

Section 4.3        Agreements
Regarding Tax Matters.

 

(a)        Each
Party shall reasonably cooperate with the other Party in connection with the filing of any and all Tax Returns, related to, or
arising as a result of, the transactions contemplated in this Agreement.

 

(b)
       The Seller shall pay all state and local Taxes (other than taxes on net overall income)
that are required to be paid in respect of any transfer, sales, use, recording, value-added or similar state and local Taxes
(other than taxes on net overall income) that may be imposed by reason of the sale, assignment, transfer and delivery of the Acquired
Business (“Transfer Taxes”).
The Seller will timely file all Tax Returns required to be filed by it in connection with the payment of such Transfer
Taxes.

 

(c)
       No later than ninety (90) days after the Closing Date, the Buyer shall deliver to Seller
a statement (the “Allocation Statement”),
allocating the Purchase Price, Assumed Liabilities and other relevant items among the Acquired Business in accordance with Section
1060 of the Code and the regulations thereunder. Within thirty (30) days of delivery of the Allocation Statement, Seller shall
notify the Buyer of any proposed changes to the Allocation Statement. The Parties shall attempt in good faith to
agree to the Allocation Statement, but if the Parties cannot agree on the Allocation Statement within ten (10) days after notification
of a dispute by Seller, then upon the request of any Party, the Parties will resolve the dispute by way of arbitration by an independent
accounting firm mutually agreed upon by Buyer and Seller, provided that the fees, expenses, and costs of the independent accounting
firm arbitrator shall be borne equally by the Buyer, on the one hand, and Seller, on the other hand. The Parties shall make consistent
use of the allocation as finally determined under this Section 4.3(c) for all Tax purposes and in all filings, declarations
and reports with the IRS in respect thereof, including the reports required to be filed under Section 1060 of the Code. In connection
with any claim or proceeding related to the determination of any Tax, neither Buyer nor Seller shall contend or represent that
such allocation is not a correct allocation, unless otherwise required by Law.

 

    	 	12	 

     

    

 

(d)        The
Parties agree that the Acquired Business shall be acquired for income tax purposes on the Closing Date for all U.S. federal (and
applicable state and local) income tax purposes, and neither Party shall take any position contrary to the foregoing on any Tax
Return or before any taxing authority unless otherwise required pursuant to a determination (as such term is defined in Section
1313 of the Code).

 

Section 4.4        Confidentiality.

 

(a)        Each
Party acknowledges that such Party has had, and may continue to have, access to non-public information relating to the Acquired
Business (such information, along with the terms of this Agreement and the other Ancillary Documents, collectively the “Confidential
Information”); provided that the term “Confidential
Information” does not include information which (i) is or
hereafter becomes generally known or available to the public, other than through the improper disclosure by a Party of another
Party’s Confidential Information, in violation of this Agreement;
(ii) is acquired by a Party without restriction as to use or disclosure; (iii) is information independently developed by a third
party without assistance by a Party; or (iv) is disclosed by a Party with the prior written consent of the Party whose Confidential
Information will be subject to disclosure. 

 

(b)
       In connection therewith, each Party hereby covenants and agrees that, for a period of
two (2) years from and after the Closing Date, each Party shall keep and hold each other Party’s
Confidential Information in strict confidence and, except as otherwise provided in this Agreement, will not use for any purpose,
nor directly or indirectly disclose, distribute, publish, disseminate or otherwise make available to any third party, any of such
other Party’s Confidential Information without obtaining
such other Party’s prior written consent; provided, however,
that if a Party or any of its representatives are requested or required to disclose any of such other Party’s
Confidential Information by judicial or administrative process or by other requirements of Law, such Party shall, to the extent
permitted by Law and practicable, promptly notify such other Party and shall cooperate, at no expense to such Party, with such
other Party in its efforts to obtain a protective order or other appropriate remedy in respect of such Confidential Information
at issue; provided, further, that without prior notice to the other Party, a Party may disclose, to a regulatory authority
or self-regulatory organization, in each case having jurisdiction over such Party, Confidential Information pursuant to routine
regulatory oversight that does not target or refer to the other Party or Confidential Information. Notwithstanding the foregoing,
each Party may disclose
only that portion of such other Party’s Confidential Information
which such Party is required by judicial or administrative process or by other requirements of Law, to disclose.

 

    	 	13	 

     

    

 

Section 4.5        Employees.

 

(a)
       Commencing on the Closing Date, the Buyer shall offer employment to each employee of
the Acquired Business set forth on Schedule 4.5, with each employee who accepts such offer of employment being referred
to as a “Transferred Employee”.
Seller covenants that it will use its commercially reasonable efforts to cause each Transferred Employee to become employed by
the Buyer. The Seller shall be responsible for, and shall pay (consistent with current payroll practices), all salary, wages, bonus,
commission, deferred compensation, paid time off, health savings accounts balances, expense reimbursements, severance, benefits
and other remuneration with respect to any Transferred Employee occurring on or prior to the Closing (the “Final
Compensation”) in accordance with applicable Law.
For the avoidance of doubt, the payment of Final Compensation shall not be double counted with the Net Working Capital definition.
The Buyer shall not assume responsibility for any Transferred Employee until such employee commences employment with the Buyer
(each a “Transfer Date”)
and the Seller shall be responsible for all liabilities and obligations arising from or related to any and all employees of the
Acquired Business who do not receive an offer of employment from the Buyer or who decline the Buyer’s
offer of employment. 

 

(b)
       To the extent Seller is required under its employment policies, employment agreements,
and applicable Law, the Seller shall pay to each Transferred Employee an amount sufficient to compensate such Transferred Employee
for the accrued and unused vacation days which have accrued to such Transferred Employee prior to the Transferred Employee’s
Transfer Date. 

 

(c)        The
Seller shall pay pro rata accrued cash incentives to each Transferred Employee on the same basis, including the time of payment,
as in effect as of the Closing Date, for the applicable performance measurement period ending on December 31, 2022, pursuant to
any cash incentive, variable compensation or bonus program; provided, however, that any requirement that the Transferred Employee
be employed by Seller on the date of payment shall be waived.

 

(d)
       The Seller shall have the sole obligation to provide, and hereby agrees to provide, any
notice and other benefits that may be required under the WARN Act to any employee of the Acquired Business (including any Transferred
Employee), to the extent arising on or prior to such Transferred Employee becoes. The Buyer shall have the sole obligation to provide,
and hereby agrees to provide, any notice and other benefits that may be required under the WARN Act to any Transferred Employee
on or after such Transferred Employee’s Transfer Date. 

 

(e)        The
Seller shall retain each Employee Benefit Plan and shall retain all Liabilities in respect of benefits earned and accrued by the
employees, consultants, contract workers or other service providers of the Acquired Business under any such Employee Benefit Plan,
and neither the Buyer nor any of its Affiliates shall assume any Employee Benefit Plan or any Liabilities with respect thereto.
Without limiting the generality of the foregoing, the Seller shall be solely responsible for, and shall bear and discharge any
Liabilities for, claims of employees,
consultants, contract workers or other service providers of the Acquired Business and their eligible beneficiaries and dependents:
(i) under any Employee Benefit Plan that is incurred prior to a Transferred Employee’s
Transfer Date, and (ii) relating to COBRA coverage attributable to "qualifying events" occurring prior to the Transferred
Employees’ respective Transfer Dates. For purposes hereof,
unless specified otherwise by the applicable Employee Benefit Plan as in effect at such time (A) a medical, dental or vision claim
shall be considered incurred on the date when the services are rendered or supplies are provided, and not when the condition arose,
when the course of treatment began or when the claim for payment was submitted, (B) life, accidental death and dismemberment and
business travel accident insurance benefit claims shall be considered incurred upon the date of the event giving rise to the claim,
and (C) disability income benefit claims shall be considered incurred on the date that the initial event that gives rise to the
claim occurs. On the day before the applicable Transferred Employee’s
Transfer Date, each Transferred Employee shall cease active participation in and shall cease to accrue benefits under the Employee
Benefit Plan. All outstanding accrued compensation earned by a Transferred Employee under the Employee Benefits Plans shall vest
(to the extent not already vested), be paid and settled and no longer be outstanding immediately prior to the Transfer Date. 

 

    	 	14	 

     

    

 

(f)        Nothing
contained in this Agreement shall confer upon any employee, consultant, contract worker or other service provider of the Acquired
Business or Seller any right to employment with the Buyer or its Affiliates or to any employee benefits or compensation or remuneration,
nor shall anything herein interfere with the right of the Buyer or its Affiliates to relocate or terminate the employment of any
Transferred Employee at any time on or after the applicable Transfer Date.

 

(g)        If
any Transferred Employee is party to an agreement with the Seller that contains restrictive covenants that would otherwise prohibit
or restrict such Transferred Employee’s
employment with the Buyer, the Seller hereby waives its rights to enforce such restrictive covenants, effective at the the applicable
Transfer Date, solely with respect to any Transferred Employee’s
employment or services with the Buyer or any of its Affiliates. 

 

(h)        Nothing
in this Agreement, express or implied, is intended to confer upon any current or former employee, consultant, contract worker or other
service of Seller any rights or remedies of any nature or kind whatsoever under or by reason of this Agreement, including any rights
of employment or rights in or to any employee benefit or other compensation or remuneration plan, policy, agreement or arrangement. Notwithstanding
anything to the contrary in this Section 4.5, nothing in this Agreement, whether express or implied, shall be treated as an amendment
or other modification of, or limit the ability of the Seller, the Buyer or their respective Affiliates to amend, modify or terminate
any Employee Benefit Plan or any other employee benefit or other compensation or remuneration plan, policy, agreement or arrangement
of the Seller, the Buyer or their respective Affiliates. Each Transferred Employee will be deemed an employee at will of the Buyer and
nothing expressed or implied herein will obligate the Buyer to provide continued employment to any such Transferred Employee for any
specified period of time following the Closing Date.

 

(i)
           Nothing in this Agreement, express or implied, is intended to confer upon Buyer the right
to communicate with Seller’s employees prior to the Closing
Date without Seller’s prior written consent. 

 

    	 	15	 

     

    

 

Section 4.6         Non-Competition; Non-Solicitation.

 

(a)        For
a period of five (5) years commencing on the Closing Date (the “Restricted
Period”), Seller shall not, and shall not permit
any of its Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the Restricted Business in the
United States of America and its territories (the “Territory”);
(ii) have an interest in any Person that engages directly or indirectly in the Restricted Business in the Territory in any capacity,
including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) cause, induce or encourage
any material actual or prospective client, customer, supplier or licensor of the Acquired Business (including any existing or
former client or customer of Seller and any Person that becomes a client or customer of the Acquired Business after the Closing),
or any other Person who has a material business relationship with the Acquired Business, to terminate or modify any such actual
or prospective relationship. Notwithstanding the foregoing, Seller may own, directly or indirectly, solely as an investment, securities
of any Person traded on any national securities exchange if Seller is not a controlling Person of, or a member of a group which
controls, such Person and does not, directly or indirectly, own 2% or more of any class of securities of such Person. 

 

(b)        During
the Restricted Period, Seller shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit any person
who is offered employment by the Parties pursuant to Section 4.5(a) or is or was employed in the Acquired Business during the
Restricted Period, or encourage any such employee to leave such employment or hire any such employee who has left such employment, except
pursuant to a general solicitation which is not directed specifically to any such employees; provided, that nothing in this Section
4.6(b) shall prevent Seller or any of its Affiliates from hiring (i) after two (2) years from the date of termination of employment,
if any employee whose employment has been terminated by Buyer or (ii) after two (2) years from the date of termination of employment,
any employee whose employment has been terminated by the employee.

 

(c)        Seller
acknowledges that the restrictions contained in this Section 4.5(b) are reasonable and necessary to protect the legitimate
interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the transactions contemplated
by this Agreement. In the event that any covenant contained in this Section 4.5(b) should ever be adjudicated to exceed
the time, geographic, product or service or other limitations permitted by applicable Law in any jurisdiction, then any court is
expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time,
geographic, product or service or other limitations permitted by applicable Law. The covenants contained in this Section 4.5(b)
and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant
or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such
invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any
other jurisdiction.

 

Section 4.7        Efforts.

 

(a)        Subject
to the terms and conditions of this Agreement, each Party shall use its best efforts to cooperate fully with the other Parties,
to take, or cause to be taken, all actions and to do, or cause to be done, all things
reasonably necessary, proper or advisable under applicable Laws and regulations to consummate the transactions contemplated by
this Agreement (including the receipt of all applicable permits, notices to, or consents or approvals of any Governmental Entity
or prime contractor) and to comply as promptly as practicable with all requirements of Governmental Entities and prime contractors
applicable to the transactions contemplated by this Agreement.

 

    	 	16	 

     

    

 

(b)        Subject
to the terms and conditions of this Agreement, each Party shall use its best efforts to cooperate fully with the other Parties,
to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary, proper or advisable
under applicable Laws and regulations to facilitate the transfer of the Acquired Contracts including, without limitation, providing
Buyer with all documentation related to such Acquired Contract.

 

ARTICLE V 

REMEDIES 

 

Section
5.1        Survival. The representations and warranties of the Parties contained in this Agreement will survive until the twelve
(12) month anniversary of the Closing, except that (a) the representations and warranties under Section 2.1 (Organization),
Section 2.2 (Authorization of Transaction), Section 2.4 (Title to Acquired Business), Section 2.6
(Brokers’ Fees),
Section 2.10 (Taxes), Section 3.1 (Organization), and Section 3.2 (Authorization of Transaction)
(collectively, the “Fundamental Representations”)
shall survive for the applicable statute of limitations and (b) the Government Contract Matters Representations shall survive until
the date that is four (4) years from the date hereof. All covenants and agreements contained herein which by their terms contemplate
actions or impose obligations following the Closing (the “Post-Closing
Covenants”) shall survive the Closing and remain
in full force and effect in accordance with their terms and if no such term is provided, sixty (60) days after the expiration of
the applicable statute of limitations. In the event notice of any claim for indemnification under this Article V shall have
been given prior to the expiration of a particular representation, warranty, covenant or agreement and such claim has not been
finally resolved by the date of expiration of such representation, warranty, covenant or agreement, such representation, warranty,
covenant or agreement that is the subject of such claim shall survive, but only to the extent of, and in the amount of, the claim
as made prior to the expiration of such representation, warranty, covenant or agreement, until such claim is finally resolved.

 

Section 5.2         Indemnification.
Subject to the terms, conditions and limitations set forth in this Article V, from and after the Closing Date:

 

(a)
       Seller shall indemnify, defend and hold harmless the Buyer and its successors and
assigns (collectively, the “Buyer Indemnified
Parties”) from and against any Losses that are
imposed on or incurred by the Buyer Indemnified Parties arising out of or relating to: (i) any breach of any representation
or warranty made by Seller in this Agreement; (ii) any breach of or failure to perform any covenant or agreement of Seller
set forth in this Agreement (other than the Seller’s
Post-Closing Covenants); (iii) all Liabilities incurred, accrued or arising out of events that occurred prior to the Closing
Date in connection with the Seller’s ownership, use,
conduct or operation of the Acquired Business; and (iv) all Taxes (A) payable in respect of  the Acquired Business for all Tax periods (or portions thereof)
ending prior to the Closing Date and (B) of Seller;

 

    	 	17	 

     

    

 

(b)        Seller
shall indemnify, defend and hold harmless the Buyer Indemnified Parties from and against any Losses that are imposed on or incurred
by the Buyer Indemnified Parties arising out of or relating to any breach of or failure to perform any Post-Closing Covenant of
the Seller set forth in this Agreement; and

 

(c)
       the Buyer shall indemnify, defend and hold harmless Seller and its successors and
assigns (collectively, the “Seller Indemnified
Parties”) from and against any Losses that are
imposed on or incurred by the Seller Indemnified Parties arising out of or relating to: (i) any breach of any representation
or warranty made by the Buyer in this Agreement, (ii) any breach of or failure to perform any covenant or agreement of the
Buyer set forth in this Agreement, (iii) the Assumed Liabilities (iv) all Taxes payable in respect of the Acquired Business
for all Tax periods (or portions thereof) beginning as of the Closing Date and (v) all Losses incurred, accrued or arising
out of events that occurred on or after the Closing Date in connection with the Buyer’s
ownership, use, conduct or operation of the Acquired Business. 

 

Section 5.3        Limitations on Indemnification.

 

(a)
       Neither the Seller nor the Buyer shall be required to make payments in satisfaction
of claims for indemnification pursuant to Section 5.2 until the aggregate amount of Losses incurred by the Buyer Indemnified
Parties or the Seller Indemnified Parties, as applicable, exceeds one percent (1%) of the Purchase Price (the “Threshold
Amount”), in which case the Buyer Indemnified
Parties or Seller Indemnified Parties, as applicable, shall be entitled to indemnification pursuant to Section 5.2 for
all such Losses from the first dollar, subject to the other limitations herein.

 

(b)
       The aggregate amount of all payments made by (i) Seller in satisfaction of claims for
indemnification pursuant to Section 5.2(a) or Section 5.2(b) shall not exceed thirty percent (30%) of the Purchase
Price (the “Cap”);
provided, however, the Cap shall not apply with respect to any Losses resulting from breaches of the Seller’s
Government Contract Matters Representations, which shall not exceed fifty percent (50%) of the Purchase Price, provided, however,
the Cap shall not apply with respect to any Losses resulting from (A) breaches of the Seller’s
Fundamental Representations or (B) intentional misrepresentation or fraud, which shall not exceed the Purchase Price. 

 

(c)
       The aggregate amount of all payments made by the Buyer in satisfaction of claims for
indemnification pursuant to Section 5.2(c) shall not exceed the Cap; provided, however, the Cap shall not apply with
respect to any Losses resulting from (A) breaches of the Buyer’s
Fundamental Representations (B) intentional misrepresentation or fraud, which shall not exceed the Purchase Price or (C) Losses
described in Section 5.2(c)(v).

 

Section
5.4       Third-Party Claims. In order for a Party seeking indemnification pursuant to this Article
V (the “Indemnified Party”)
to be entitled to any indemnification provided for under this Article V in respect of a claim made against the Indemnified Party
by any Person who is not a party to this Agreement (a “Third-Party
Claim”), such Indemnified Party must notify the Party from
whom indemnification is sought pursuant to this Article V (the “Indemnifying Party”) in writing of the
Third-Party Claim, which such notice must include a reasonably detailed description of such claim, the amount of such claim (to the extent
then known) and the basis for indemnification hereunder and which such notice must be delivered within thirty (30) days following receipt
by such Indemnified Party of the notice of the Third-Party Claim; provided, however, that failure to give such notification
shall not affect the indemnification provided hereunder except in the event the Indemnifying Party shall have been actually materially
prejudiced as a result of such failure. In the event any Indemnified Party should have a claim against any Indemnifying Party under this
Article V that does not involve a Third-Party Claim, the Indemnified Party shall deliver notice of such claim to the Indemnifying
Party, which notice shall include a reasonably detailed description of such claim, the amount of such claim and the basis for indemnification
hereunder. 

 

    	 	18	 

     

    

 

Section 5.5       
Exclusive Remedy. Notwithstanding anything else contained in this Agreement to the contrary, after the Closing, except
as provided in Section 8.5 and except in the case of fraud, the indemnification pursuant to the provisions of this Article
V shall be the sole and exclusive remedy of the Parties with respect to any and all claims arising out of or in connection
with this Agreement, including in respect of any breach of any representation, warranty, covenant or other provision contained
in this Agreement or any certificate delivered pursuant hereto.

 

Section
5.6        Payment and Limited Setoff Rights. Subject to Buyer’s
limited setoff rights below, the Seller may, at its option, satisfy claims for Indemnification under this Article V by
transferring to Seller shares of Buyer’s Common Stock with
a value equal to the amount of such claim as determined on the date that the claim is finally determined. However, notwithstanding
the foregoing, the Buyer may, at its option, offset amounts due on to Buyer for against any amounts otherwise due to Seller including,
without limitation, the Cash Consideration, if paid. 

 

ARTICLE VI 

CONDITIONS TO CLOSING 

 

Section 6.1      Conditions
to Obligation of Buyer. The obligation of Buyer to consummate the transactions contemplated hereby is subject to the satisfaction
of the following further conditions:

 

(a)           (i)
Seller shall have performed and complied with all of its obligations hereunder required to be performed by it on or prior to the
Closing Date; (ii) the representations and warranties of Seller contained in this Agreement and in any certificate delivered by
Seller pursuant hereto shall be true and correct at and as of the Closing (without regard to any qualifications therein as to materiality
or material adverse effect), as though made at and as of the Closing Date (or, if made as of a specific date, at and as of such
date) and between the date hereof and the Closing Date, (iii) there shall not have occurred a material adverse effect with respect
to the Acquired Business; and (iv) Buyer shall have received a certificate signed by an officer of Seller to the foregoing effect;
and

 

    	 	19	 

     

    

 

(b)
       At the Closing, Seller will deliver to the Buyer: (i) the Bill of Sale duly executed
by Seller, (ii) the Assignment and Assumption Agreement, duly executed by Seller; (iii) a duly executed IRS Form W-9, dated as
of the Closing Date; (iv) all Government Furnished Equipment; (v) an employment agreement between Barton B. Brown II and the Buyer,
(vi) certificates signed by the secretary (or another proper officer) of the Seller, dated as of the Closing Date, attaching and
certifying (x) the organizational documents of Seller, (y) the resolutions of Seller’s
board of managers approving this Agreement, the Ancillary Documents to which Seller is a party and the Contemplated Transactions
and (z) the incumbency and signatures of the Persons signing this Agreement and any other agreement, document, instrument or certificate
contemplated to be entered into by Seller pursuant to the transaction contemplated in this Agreement, and (vi) the third-party
consents set forth on Schedule 6.1(b)(vi).1

 

Section 6.2     Conditions
to Obligation of Seller. The obligation of Seller to consummate the transactions contemplated hereby is subject to the satisfaction
of the following further conditions:

 

(a)        Buyer
shall have performed and complied with all of its obligations hereunder required to be performed by it at or prior to the Closing
Date and the representations and warranties of Buyer contained in this Agreement and in any certificate delivered by Buyer pursuant
hereto shall be true in all material respects at and as of the Closing, as if made at and as of such time (or if made as of a specific
date, at and as of such date) and Seller shall have received a certificate signed by an officer of Buyer to the foregoing effect.

 

(b)        Buyer
will deliver to Seller: (i) the Bill of Sale, Assignment and Assumption Agreement, duly executed by the Buyer; (ii) a certificate
from a duly authorized officer of the Buyer, dated as of the Closing Date, attaching and certifying (x) the organizational documents
of the Buyer, (y) the resolutions of the Buyer approving this Agreement, the Ancillary Documents to which the Buyer is a party
and the Contemplated Transactions and (z) the incumbency and signatures of the Persons signing this Agreement and any other agreement,
document, instrument or certificate contemplated to be entered into by the Buyer pursuant to the transaction contemplated in this
Agreement.

 

Section
6.3       Frustration of Closing Conditions. Neither Buyer nor Seller may rely on the failure of any condition set forth in
Section 6.1 or Section 6.2, as the case may be, to be satisfied if such failure was caused by such party’s
failure to comply with its obligations to consummate the transactions contemplated by this Agreement and the Transaction Agreements
as required by the provisions of this Agreement. 

 

ARTICLE VII 

TERMINATION 

 

Section 7.1        Grounds for Termination.
This Agreement may be terminated at any time prior to the Closing Date:

 

 

 

		1	NTD: to include Booz Allen contracts.

 

    	 	20	 

     

    

 

(a)        by
mutual written agreement of Seller and Buyer;

 

(b)        by
Buyer if the Acquired Business should experience a material adverse effect; or

 

(c)        if
the Contemplated Transactions are not consummated by August 31, 2022.

 

To effect the termination
of this Agreement pursuant to this Section 7.1, the terminating party shall give written notice of such termination to the
other party.

 

Section 7.2       Effect
of Termination. If this Agreement is terminated as permitted by Section 7.1, such termination shall be without liability
of any party hereto (or any equityholder, director, officer, employee, agent, consultant or representative of any such party) to
any other party to this Agreement; provided, however, that nothing herein shall relieve any party from liability for any
willful and material breach hereof. The provisions of Section 4.4 (Confidentiality), this Section 7.2 (Effect of
Termination) and Article VIII (Miscellaneous) shall survive any termination of this Agreement pursuant to Section 7.1.

 

ARTICLE
VIII 

MISCELLANEOUS

 

Section 8.1        Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made (a) on the date of delivery if delivered personally, or by electronic mail/PDF, upon confirmation of successful transmission,
(b) on the first (1st) Business Day following the date of dispatch if delivered by a recognized next-day courier service,
or (c) on the fifth (5th) Business Day following the date of mailing if delivered by registered or certified mail return
receipt requested, postage prepaid and shall be delivered personally or mailed by registered or certified mail (postage prepaid,
return receipt requested), sent by recognized next-day courier service or sent by electronic mail/PDF or facsimile, to the applicable
Party at the following addresses (or at such other address for a Party as shall be specified by like notice):

 

 

	If to Seller:	 
	 	 
	 	Barton B. Brown II
	 	Lexington Solutions Group, LLC
	 	245 Ebenezer Circle
	 	Lexington, VA 24450
	 	Email:
	 	Telephone No.:
	 	 
	with a copy (which shall not constitute notice) sent contemporaneously to:
	 	 
	 	Flora Pettit PC
	 	90 North Main Street
	 	P.O. Box 1287
	 	Harrisonburg, VA 22803
	 	Attn: Matthew Von Schuch
	 	E-mail: mvs@fplegal.com
	 	Telephone No.: 540.437.3123
	 	 
	If to Buyer:	 
	 	 
	 	Castellum, Inc.
	 	9812 Falls Road #299-114
	 	Potomac, MD 20854
	 	Attn: Jay Wright, General Counsel
	 	Email: jwright22@msn.com; jwright@castellumus.com
	 	Telephone No.: 301.524.4759
	 	 
	with a copy (which shall not constitute notice) sent contemporaneously to: 
	 	 
	 	Pillsbury Winthrop Shaw Pittman LLP
	 	1200 Seventeenth Street NW  
	 	Washington, D.C. 20036
	 	Attn: Nicole M. Islinger
	 	Email: Nicole.islinger@pillsburylaw.com  
	 	Telephone No.: 202.663.8207 

 

    	 	21	 

     

    

 

Section 8.2       Expenses.
Except as expressly provided in this Agreement, each of the Parties, and their respective Affiliates, will bear its own costs and
expenses (including legal, accounting and investment banking fees and expenses) incurred in connection with this Agreement and
the Contemplated Transactions.

 

Section
8.3      Amendment; Assignment; Waivers. Neither this Agreement nor any of the rights, interests or obligations provided
by this Agreement may be assigned by a Party (whether by operation of law or otherwise) without the prior written consent of the
other Parties, which consent shall not be unreasonably withheld or delayed; and provided, however, each Party may assign
this Agreement without the prior consent of the other Parties to one or more of such Party’s
Affiliates (in which case the Party shall remain responsible for the performance of all of its obligations hereunder). Subject
to the preceding sentence and except as otherwise expressly provided herein, this Agreement will be binding upon and inure to the
benefit of the Parties hereto and their respective successors and permitted assigns. This Agreement may be amended only by a written
instrument executed by the Parties. No waiver of any provision of this Agreement will be valid or binding unless it is in writing
and is executed and delivered by or on behalf of the Party against which it is sought to be enforced. 

 

Section 8.4       Entire
Agreement; Severability. This Agreement and the Ancillary Documents collectively constitute the entire agreement among the
Parties with respect to the subject matter hereof and supersede any prior and contemporaneous understandings, agreements or representations
by or among the Parties, written or oral, with respect to the subject matter hereof. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under Law, but if any provision of this Agreement is
held to be prohibited by or invalid under Law, such provision will
be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

 

    	 	22	 

     

    

 

Section 8.5        Specific
Performance. The Parties acknowledge and agree that a Party may be damaged irreparably in the event any of the provisions of
this Agreement is not performed in accordance with its specific terms or is otherwise breached or violated. Accordingly, the Parties
agree that, without posting bond or other undertaking, each Party may be entitled, subject to a determination by a court of competent
jurisdiction, to an injunction or injunctions to prevent breaches or violations of the provisions of this Agreement and to enforce
specifically this Agreement and the terms and provisions hereof in any judicial or administrative claim, action, suit, audit, assessment,
arbitration or inquiry, or any proceeding or investigation, by or before any third party or Governmental Entity instituted in any
court having jurisdiction over the Parties and the matter in addition to any other remedy to which it may be entitled, at law or
in equity.

 

Section
8.6       Construction. References to “applicable”
Law or Laws with respect to a particular Person, thing or matter shall
include only such Law or Laws as to which the Governmental Entity that enacted or promulgated such Law or Laws has jurisdiction
over such Person, thing or matter. Whenever the context requires, the singular number shall include the plural, and vice versa,
the masculine gender shall include the feminine and neuter genders, the feminine gender shall include the masculine and neuter
genders, and the neuter gender shall include the masculine and feminine genders. The words “include”
and “including”,
and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without
limitation.” Except as otherwise indicated, all references
in this Agreement to “Sections”,
“Schedules” and
“Exhibits” are
intended to refer to Sections, Schedules and Exhibits to this Agreement. The terms “hereof”,
“hereunder”,
“herein” and
words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Each Party
has participated in the drafting of this Agreement, which each Party acknowledges is the result of extensive negotiations between
the Parties, and consequently this Agreement shall be interpreted without reference to any rule or precept of Law to the effect
that any ambiguity in a document be construed against the drafter. When calculating the period of time before which, within which
or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating
such period will be excluded (for example, if any action is to be taken within two (2) days of a triggering event, and such event
occurs on a Tuesday, then the action must be taken by Thursday). The terms “provide,”
“provided,” and
“made available” and
similar expressions (regardless of whether capitalized or not) shall mean, when used with reference to documents or other materials
required to be provided or made available to the Buyer shall mean (unless context clearly indicates otherwise) delivered to Buyer
or, with respect to documents to be provided to the Buyer after the Closing Date, by the applicable date such document is required
to be provided. The descriptive headings of this Agreement are inserted for convenience only and will not constitute a part of
this Agreement. The Exhibits and Disclosure Schedules attached to this Agreement are made a part of this Agreement as if set forth
fully herein. 

 

Section 8.7       Counterparts.
This Agreement may be executed by facsimile transmission or electronic mail (as a Portable Document Format (PDF) file) and in one
or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts
have been signed by the Seller or the Buyer, on the one hand, and delivered to the Seller or the Buyer, on the other hand, it being
understood that all Parties need not sign the same counterpart. Signatures delivered
by facsimile transmission or electronic mail (as a PDF file) to another Party hereto shall have the same force and effect as any
other delivery of a manually signed counterpart of this Agreement.

 

    	 	23	 

     

    

 

Section 8.8       No
Third-Party Beneficiaries. This Agreement will not confer any rights or remedies upon any Person or entity other than the Parties
hereto and their respective successors and permitted assigns.

 

Section 8.9      Governing
Law. This Agreement and all claims or causes of action (whether in contract, tort or otherwise) that may be based upon, arise
out of or relate to this Agreement or the negotiation, execution, performance, non-performance, interpretation, termination of
construction hereof or thereof shall be construed in accordance with, and governed in all respects by, the internal Laws of the
State of Maryland (without giving effect to principles of conflicts of laws). Each Party irrevocably agrees that any legal action
or proceeding arising out of or in connection with this Agreement may be brought in any state or federal court located in Montgomery
County in the State of Maryland (or in any court in which appeal from such courts may be taken), and each party agrees not to assert,
by way of motion, as a defense, or otherwise, in any such action, suit or proceeding, any claim that it is not subject personally
to the jurisdiction of such court, that the action, suit or proceeding is brought in an inconvenient forum, that the venue of the
action, suit or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court,
and hereby agrees not to challenge such jurisdiction or venue by reason of any offsets or counterclaims in any such action, suit
or proceeding.

 

Section 8.10     Waiver
of Jury Trial. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES, AND SHALL CAUSE ITS INDEMNIFIED PARTIES TO IRREVOCABLY WAIVE,
ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE ANCILLARY DOCUMENTS AND/OR
THE CONTEMPLATED TRANSACTIONS.

 

Section 8.11     Non-Recourse.
This Agreement may only be enforced against, and any claim or cause of action based upon, arising out of, or related to this Agreement
may only be brought against, the entities that are expressly named as Parties hereto and their permitted successors and assigns
and then only with respect to the specific obligations set forth herein with respect to such Party. Except to the extent named
a Party to this Agreement (and then only to the extent of the specific obligations undertaken by such named Party in this Agreement
and not otherwise), or a successor or assign, no past, present or future director, officer, employee, incorporator, stockholder,
agent, attorney or Affiliate of any of the foregoing will have any liability (whether in contract, tort, equity or otherwise) for
any one or more of the representations, warranties, covenants, agreements or other obligations or liabilities of any one or more
of the Seller or the Buyer under this Agreement (whether for indemnification or otherwise).

 

 

    	 	24	 

     

    

 

               Section 8.12       Public
Announcements. None of the Parties shall, without the prior consent of the other Parties to this Agreement, issue any
press release or otherwise make any public statement with respect to this Agreement or the sale of the Acquired Business,
except as may be required by Law; provided that following the Closing Date such restriction shall not prevent the
Buyer from (i) notifying potential suppliers, partners or customers of the Acquired Business of the transfer of the Acquired
Business from the Seller to the Buyer, (ii) including the Acquired Contracts
on the Buyer’s public list of contracts (including on
the Buyer’s website) and (iii) issuing a press release
to comply with the accounting and the Securities and Exchange Commission disclosure obligations or the rules of any stock
exchange. 

 

(Signature Page Follows)

 

    	 	25	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Business Acquisition Agreement as of the date first written above.

 	 	BUYER: 
	 	 
	 	CASTELLUM, INC. 
	 	 	 
	 	By:	/s/ Mark Fuller 
	 	Name:	Mark Fuller
	 	Title:	Chief Executive Officer
	 	 	 
	 	SELLER: 
	 	 
	 	LEXINGTON SOLUTIONS GROUP, LLC 
	 	 	 
	 	By:	/s/ Barton B. Brown II 
	 	Name:	Barton B. Brown II 
	 	Title:	President

 

[Signature Page to Business Acquisition Agreement]

 

    	 	 	 

     

    

 

Schedule 1.1

 

Acquired Business

 

		1.	The Acquired Contracts.

 

		2.	All tangible assets of the Seller used primarily in connection with the Acquired Contracts other
than (a) all ownership and other rights with respect to any employee benefit plan of the Seller and any trusts or other assets
attributable thereto; and (b) all employee-related or employee benefit-related plans, agreements, files or records, other than
employment files or records related to the Transferred Employees.

 

		3.	Any rights and interests of the Seller
in any government furnished equipment in any way relating to the Acquired Contracts (the “Government
Furnished Equipment”). 

 

		4.	Any and all claims and rights of any kind against third parties exclusively relating to the Acquired
Contracts.

 

		5.	Any and all work product in progress and contract deliverables in progress exclusively related
to the Acquired Contracts.

 

		6.	The original proposal that the Seller submitted in connection with the Acquired Contracts, and
all files primarily related thereto.

 

		7.	All of the Seller’s
written or electronic information primarily relating to the Acquired

Contracts (including documentation,
databases, downloads, and customer files).

 

		8.	All correspondence with any Governmental Entity primarily regarding the Acquired Contracts.

 

		9.	All business development opportunities and operations primarily associated with the Acquired Contracts
and all records and files primarily related thereto.

 

		10.	The employment of the Transferred Employees on and following
the Transferred Employees respective Transfer Dates and the assignment of any and all independent contractors.

 

		11.	Any and all proposals (past or pending) created, owned,
or submitted by the Seller (collectively, the “Proposals”).

 

		12.	All goodwill associated with any of the foregoing.

 

		13.	All agreements listed on Schedule 2.7(b)(v), if
any.

 

		14.	Company cash and accounts receivable on the books and
records of the Company as of the Closing Date.

 

		15.	Company intellectual property and software (to the extent
assignable).

 

    	 	 	 

     

    

 

Schedule 2.7(b)(v)

 

Orders and Other Contracts

 

    	 	3	 

     

    

 

Schedule 4.5 

 

Transferred Employees.

 

See Attachment A.

 

    	 	4	 

     

    

 

Schedule 5.1(g)

 

Third-Party Consents

 

    	 	5	 

     

    

 

Exhibit A 

 

Definitions

 

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

 

“Acquired
Business” has the meaning set forth in Section
1.1.

 

“Acquired
Contracts” means Contract No. N0017819D8009 by and
between the Seller and the Naval Surface Warafare Center’s
Dahlgren Division, and Subcontract Nos. 109146SB2B, S901790BAH, A8158 by and between the Seller and Booz Allen Hamilton Inc. Unless
otherwise indicated, the term “Acquired Contracts”
includes any statement of work, task order, purchase order, delivery order
or similar issued under such contract. 

 

“Action”
means any claim, action, charge, grievance, suit or proceeding by or before
any

Governmental Entity or any arbitrator with
legal and binding authority over such matter.

 

“Affiliate”
has the meaning set forth in Rule l2b-2 of the regulations promulgated
under the Securities Exchange Act of 1934, as amended. 

 

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

 

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

 

“Ancillary
Documents” means the Bill of Sale, Assignment and
Assumption Agreement, and any other document to be delivered pursuant to this Agreement. 

 

“Assumed
Liabilities” means any and all Liabilities arising
after the Closing Date under/from the assets described on Schedule 1.1 and which are also not specifically Excluded Liabilities.

 

“Bill
of Sale, Assignment and Assumption Agreement” means
that certain Bill of Sale, Assignment and Assumption Agreement, dated as of the date hereof, by and between the Buyer and the Seller,
attached hereto as Exhibit B.

 

“Business
Day” means a day, other than a Saturday or Sunday
or a national holiday, on which commercial banks in Washington, D.C. are open for the general transaction of business. 

 

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

 

“Buyer
Indemnified Parties” has the meaning set forth in
Section 5.2(a).

 

“Buyer’s
Common Stock” means common stock of the Buyer par
value $0.0001 per share. 

 

“Cap”
has the meaning set forth in Section 5.3(b).

 

“Closing”
has the meaning set forth in Section 1.2.

 

“Closing
Date” has the meaning set forth in Section 1.2.

 

    	 	6	 

     

    

 

“Code”
means the Internal Revenue Code of 1986, as amended (together with all
rules and regulations promulgated thereunder), and any successor to such statute, rules or regulations. 

 

“Confidential
Information” has the meaning set forth in Section
4.4(a). 

 

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

 

“DCSA”
mean the Defense Counterintelligence and Security Agency. 

 

“Encumbrance”
means all mortgages, deeds of trust, collateral assignments, security
interests, Uniform Commercial Code financing statements, conditional or other sales agreements, liens, pledges, hypothecations,
claims, interference, options, rights of first refusal, preemptive rights, community property interests, restrictions of any nature,
any other encumbrances on or ownership interests in assets owned by the Seller (including any restriction on the voting of any
security, any restriction on the transfer of any security or other asset, any restriction on the possession, exercise or transfer)
as applicable. 

 

“Enforceability
Exceptions” means applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer and similar Laws of general applicability relating to or affecting creditors’
rights, or by general equity principles. 

 

“Excluded
Liabilities” means any and all Liabilities which
meet any of the following criteria: (i) arises or exists before the Closing Date, (ii) all Taxes (A) payable in respect of the
Acquired Business for all Tax periods (or portions thereof) ending prior to the Closing Date and (B) of Seller, (iii) constitutes
Final Compensation, or (iv) arises upon or prior to Closing associated with the employment, service or retention of any Transferred
Employee or other employee or any consultant, contract worker or other service provider of the Acquired Business and the provision
of employee benefits, compensation and other remuneration to such Transferred Employee, other employee or consultant, contract
worker or other service provider. 

 

“FAR”
means the Federal Acquisition Regulation. 

 

“Final
Compensation” has the meaning set forth in Section
4.5(a). 

 

“Fundamental
Representations” has the meaning set forth in Section
5.1. 

 

“GAAP”
means generally accepted accounting principles. 

 

“Government
Contract Matters Representations” means the representations
and warranties made in Section 2.7. 

 

“Government
Furnished Equipment” has the meaning set forth in
Schedule 1.1. 

 

“Government
Order” means any judgment, order, award, decree,
injunction or writ of any Governmental Entity issued against the Seller or any of the Seller’s
Affiliates relating to the Acquired Business or the Assumed Liabilities. 

 

    	 	7	 

     

    

 

“Governmental
Entity” means the United States, any state or other
political subdivision thereof and any other foreign or domestic entity exercising executive, legislative, judicial, regulatory
or administrative authority or functions of or pertaining to government, including any government authority, agency, department,
board, commission, court, tribunal or instrumentality of the United States or any foreign entity, any state of the United States,
or any political subdivision of any of the foregoing. 

 

“Indebtedness”
of any Person means, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by loan agreements, lines of credit, letters of credit,
notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, (c) all obligations
of such Person issued or assumed for deferred purchase price payments, (d) all obligations of such Person under leases required
to be capitalized in accordance with GAAP, as consistently applied by such Person, (e) all obligations created or arising under
any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights
and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property),
(f) all obligations of such Person or another Person secured by an Lien on any asset of such first Person, whether or not such
obligation is assumed by such first Person, (g) any prepayment fees or other fees, costs or expenses associated with payment of
any indebtedness and (h) any guaranty of any of the foregoing of any other Person. 

 

“Indemnified
Party” has the meaning set forth in Section 5.4.

 

“Indemnifying
Party” has the meaning set forth in Section 5.4.

 

“IRS”
means the Internal Revenue Service. 

 

“Knowledge
of the Seller” means that Barton B. Brown, II has
actual knowledge of the fact or other matter at issue; or would have actual knowledge of the fact or other matter at issue if he
would have made reasonable inquiry. 

 

“Law”
means any applicable federal, state, provincial, local or foreign law,
statute, rule, regulation, ordinance, permit, order, writ, injunction, judgment or decree of any Governmental Entity. 

 

“Liabilities”
means any claims, Indebtedness, expenses, assessments, penalties, damages,
losses, suits, options, obligations, payables or other liabilities, whether or not absolute, accrued, matured, due, contingent,
liquidated, asserted, known, suspected, fixed or otherwise, and whether known or unknown, including all costs and expenses related
thereto. 

 

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

 

“Losses”
means any losses, damages, Liabilities, awards, assessments, judgments,
Taxes, penalties, fines, costs and expenses (including reasonable and documented attorneys’ fees
and disbursements); provided that Losses shall not include punitive, special or exemplary damages unless such are paid in
connection with a Third-Party Claim. 

 

    	 	8	 

     

    

 

“Net
Working Capital” means cash plus current accounts
receivable (less than 90 days past due) minus current liabilities. 

 

                “Parties”
means the Seller and the Buyer together, and “Party”
means the Seller or the Buyer individually, as the case may be. 

 

“Permitted
Lien” means any (a) mechanics’,
materialmens’ or similar Liens with respect to amounts not
yet due or delinquent, and (b) Liens for Taxes not yet due and payable. 

 

“Person”
means an individual, partnership, corporation, limited liability company,
association, joint stock company, trust, joint venture, unincorporated organization, Governmental Entity or other legal individual
or entity. 

 

“Principal”
has the meaning ascribed to such term at FAR 2.101. 

 

“Purchase
Price” means the sum of all Stock Consideration and
Cash Consideration actually paid or disbursed to Seller (if any) pursuant to this Agreement. 

 

“Restricted
Business” means any bidding or participation in a
contract (whether as a prime contractor, sub-contractor, owner, or consultant) either directly or with a competitor against the
Acquired Contracts or other contracts covered by this Agreement including their successors, modifications, and/or re-competes during
the Restricted Period. 

 

“Restricted
Period” has the meaning set forth in Section 4.6(a).

 

“Security
Clearance Approvals” has the meaning set forth in
Section 4.2(b).

 

“Seller
Indemnified Parties” has the meaning set forth in
Section 5.2(c). 

 

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

 

“Target
Working Capital” means Four Hundred Thousand Dollars
($400,000.00)

 

“Tax”
or “Taxes”
means a tax or taxes of any kind or nature, or however denominated, including
liability for federal, state, provincial, local or foreign income, franchise, gross receipts, sales, use, transfer, registration,
business and occupation, value added, excise, severance, stamp, premium, windfall profit, customs, duties, real property, personal
property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax,
of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in respect of the foregoing,
whether disputed or not. 

 

“Tax
Return” means with respect to any Tax, any return,
report, statement, declaration, claim for refund, information return or document filed or required to be filed with any Governmental
Entity (including any schedule or attachment hereto and including any amendment thereof). 

 

“Territory”
has the meaning set forth in Section 4.6(a). 

 

    	 	9	 

     

    

 

“Third-Party
Claim” has the meaning set forth in Section 5.4.

 

“Transfer
Taxes” has the meaning set forth in Section 4.3(b).

 

“Transferred
Employees” has the meaning set forth in Section 4.5(a).

 

“U.S.
Government” means the government of the United States
of America. 

 

    	 	10	 

     

    

 

Exhibit B

 

Bill of Sale, Assignment and Assumption
AgreementExhibit 10.9

 

CASTELLUM,
Inc.

 

CASTELLUM,
Inc. 2021 STOCK INCENTIVE PLAN

 

1.           Purpose

 

The Castellum, Inc.
2021 Stock Incentive Plan is intended to promote the best interests of Castellum, Inc. (the “Corporation”) and
its stockholders by (i) assisting the Corporation and its Affiliates in the recruitment and retention of persons with ability and
initiative, (ii) providing an incentive to such persons to contribute to the growth and success of the Corporation’s businesses
by affording such persons equity participation in the Corporation and (iii) associating the interests of such persons with those
of the Corporation and its affiliates and stockholders.

 

2.           Definitions

 

As used in this Plan
the following definitions shall apply:

 

A.       “Affiliate”
means (i) any Subsidiary, (ii) any Parent, (iii) any entity (including, without limitation, a corporation, partnership or limited
liability company) which is directly or indirectly controlled fifty percent (50%) or more (whether by ownership of stock, assets
or an equivalent ownership interest or voting interest) by the Corporation or one of its Affiliates, (iv) any entity (including,
without limitation, a corporation, partnership or limited liability company) which directly or indirectly controls fifty percent
(50%) or more (whether by ownership of stock, assets or equivalent ownership interest or voting interest) of the Corporation or
one of its Affiliates, and (v) any other entity in which the Corporation or any of its Affiliates has a material equity interest
and which is designated as an “Affiliate” by resolution of the Committee. However, for purposes of granting Options
or Stock Appreciation Rights, an entity shall not be treated as an Affiliate unless the Corporation holds a “controlling
interest” in such entity, where the term “controlling interest” has the meaning provided in Treasury Regulation
section 1.414(c)-2(b)(2)(i), provided that the language “at least 50 percent” is used instead of “at least 80
percent” in Treasury Regulation Section 1.414(c)-2(b)(2)(i), and, provided further, that where the granting to such Participant
of Options or Stock Appreciation Rights with respect to the Common Stock is based upon a legitimate business criteria, the language
“at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation
Section 1.414(c)-2(b)(2)(i).

 

B.       “Board”
means the Board of Directors of the Corporation.

 

C.       “Cause”
means (i) in the case where the Participant does not have an employment agreement, consulting agreement or similar agreement in
effect with the Corporation or its Affiliate at the time of grant of the Option or Stock Award or where there is such an agreement
but it does not define “cause” (or words of like import), conduct related to the Participant’s service to the
Corporation or an Affiliate for which either criminal or civil penalties against the Participant may be sought, misconduct, insubordination,
material violation of the Corporation’s or its Affiliate’s policies, disclosing or misusing any confidential information
or material concerning the Corporation or an Affiliate or material breach of any employment agreement, consulting agreement or
similar agreement, or (ii) in the case where the Participant has an employment agreement, consulting agreement or similar agreement
in effect with the Corporation or its Affiliate at the time of grant of the Option or Stock Award that defines a termination for
“cause” (or words of like import), “cause” as defined in such agreement; provided, however, that with regard
to any agreement that defines “cause” on occurrence of or in connection with change of control, such definition of
“cause” shall not apply until a change of control actually occurs and then only with regard to a termination thereafter.
Notwithstanding the foregoing, in the case of an award which is intended to comply with Section 25102(o) of the California Corporations
Code, such event must also constitute “cause” under applicable law.

 

D.       “Code”
means the Internal Revenue Code of 1986, and any amendments thereto.

 

    	 		 

     

    

 

E.        “Committee”
means the Board or any Committee of the Board to which the Board has delegated any responsibility for the implementation, interpretation
or administration of the Plan.

 

F.       “Common
Stock” means the common stock, $0.0001 par value, of the Corporation.

 

G.       “Consultant”
means (i) any person performing consulting or advisory services for the Corporation or any Affiliate, or (ii) a director of an
Affiliate.

 

H.       “Continuous
Service” means that the Participant’s service with the Corporation or an Affiliate, whether as an employee, Director
or Consultant, is not interrupted or terminated. A Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Corporation or an Affiliate as an employee,
Director or Consultant or a change in the entity for which the Participant renders such service, provided that there is no interruption
or termination of the Participant’s Continuous Service. The Participant’s Continuous Service shall be deemed to have
terminated either upon an actual termination or upon the entity for which the Participant is performing services ceasing to be
an Affiliate of the Corporation. The Committee shall determine whether Continuous Service shall be considered interrupted in the
case of any leave of absence approved by the Corporation, including sick leave, military leave or any other personal leave. Except
to the extent determined otherwise by the Committee or pursuant to the terms of the Participant’s leave of absence, vesting
shall be tolled during the period of an unpaid leave of absence (except to the extent such vesting is required by law to be credited
upon the Participant’s return to Continuous Service, in which case vesting credit shall be received upon such return). Whether
a termination of Continuous Service shall have occurred for purposes of the Plan shall be determined by the Committee, which determination
shall be final, binding and conclusive. In the event that any award under the Plan is treated as nonqualified deferred compensation
subject to the provisions of Section 409A of the Code, a payment event by reason of a termination of Continuous Service shall,
if necessary to comply with Section 409A of the Code, occur with respect to such award only if such termination of Continuous Service
also qualifies as a separation from service within the meaning of Section 409A of the Code.

 

I.       “Corporation”
means Castellum, Inc., a Nevada corporation.

 

J.       “Corporation
Law” means the general corporation law of the jurisdiction of incorporation of the Corporation.

 

K.       “Director”
means a member of the Board.

 

L.       “Disability”
shall, except as otherwise provided in an award agreement, have the meaning provided for in Section 22(e)(3) of the Code or any
successor statute thereto. In the event that any award under the Plan is treated as nonqualified deferred compensation subject
to the provisions of Section 409A of the Code, a payment event by reason of a Disability shall, if necessary to comply with Section
409A of the Code, occur with respect to such award only if such Disability also qualifies the Participant as disabled within the
meaning of Section 409A(a)(2)(C) of the Code.

 

M.       “Eligible
Person” means an employee of the Corporation or an Affiliate (including an entity that becomes an Affiliate after the
adoption of this Plan), a Director or a Consultant to the Corporation or an Affiliate (including an entity that becomes an Affiliate
after the adoption of this Plan) .

 

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

 

O.       “Fair
Market Value” means, on any given date, the current fair market value of the shares of Common Stock determined as follows:

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	2	 

     

    

 

(i)       If
the Common Stock is traded on The NASDAQ Stock Market or is listed on a national securities exchange ,
the closing price for the day of determination as quoted on such market or exchange which is the primary market or exchange for
trading of the Common Stock or if no trading occurs on such date, the last day on which trading occurred, or such other appropriate
date as determined by the Committee in its discretion, as reported in The Wall Street Journal or such other source as the Committee
deems reliable;

 

(ii)       If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high and the low asked prices for the Common Stock for the day of determination; or

 

(iii)       In
the absence of an established market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith;
provided that Fair Market Value shall be determined in accordance with Section 422 of the Code or Section 409A of the Code, as
appropriate, and the regulations and guidance thereunder.

 

P.       “Immediate
Family Member” shall mean a person’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships.

 

Q.       “Incentive
Stock Option” means an Option (or portion thereof) intended to qualify for special tax treatment under Section 422 of
the Code.

 

R.       “Listing
Date” means the date on which the Corporation has a class of equity securities registered under Section 12 of the Securities
Act.

 

S.       “Nonqualified
Stock Option” means an Option (or portion thereof) which is not intended or does not for any reason qualify as an Incentive
Stock Option.

 

T.       “Option”
means any option to purchase shares of Common Stock granted under this Plan.

 

U.       “Other
Stock Award” means an award that is based in whole or in part by reference to Common Stock under Section 7.E.

 

V.       “Parent”
means any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation if each of
the corporations (other than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

W.       “Participant”
means an Eligible Person who is selected by the Committee to receive an Option or a Stock Award and is party to a Stock Option
Agreement or Stock Award Agreement required by the terms of such Option or Stock Award.

 

X.       “Plan”
means this Castellum, Inc. 2021 Stock Incentive Plan.

 

Y.       “Restricted
Stock Award” means an award of Common Stock under Section 7.B.

 

Z.       “Restricted
Stock Unit” means an award of an unfunded and unsecured right to receive shares of Common Stock (or cash or a combination
of shares and cash, as determined in the sole discretion of the Committee) upon settlement of the award under Section 7.D.

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	3	 

     

    

 

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

 

BB.       “Stock
Appreciation Right” means an award of a right of the Participant under Section 7.C. to receive a payment based on the
increase in the Fair Market Value of the shares of Common Stock covered by the award.

 

CC.       “Stock
Award” means a Stock Bonus Award, Restricted Stock Award, Stock Appreciation Right, Restricted Stock Unit Award or Other
Stock Award.

 

DD.       “Stock
Award Agreement” means an agreement (written or electronic) between the Corporation and a Participant setting forth the
specific terms and conditions of a Stock Award granted to the Participant under Section 7. Each Stock Award Agreement shall be
subject to the terms and conditions of the Plan and shall include such terms and conditions as the Committee shall authorize.

 

EE.       “Stock
Bonus Award” means an award of Common Stock under Section 7.A.

 

FF.       “Stock
Option Agreement” means an agreement (written or electronic) between the Corporation and a Participant setting forth
the specific terms and conditions of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the
terms and conditions of the Plan and shall include such terms and conditions as the Committee shall authorize.

 

GG.       “Subsidiary”
means any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation if each
of the corporations (other than the last corporation in the unbroken chain) owns stock possessing at least fifty percent (50%)
of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

HH.       “Ten
Percent Owner” means any Eligible Person owning at the time an Option is granted more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation or of a Parent or Subsidiary. An individual shall, in accordance
with Section 424(d) of the Code, be considered to own any voting stock owned (directly or indirectly) by or for his brothers, sisters,
spouse, ancestors and lineal descendants and any voting stock owned (directly or indirectly) by or for a corporation, partnership,
estate, or trust shall be considered as being owned proportionately by or for its stockholders, partners or beneficiaries.

 

 

		3.	Administration

 

A.          Delegation
of Administration. The Board shall be the sole Committee of the Plan unless the Board delegates all or any portion of its authority
to administer the Plan to another Committee. To the extent not prohibited by the charter or bylaws of the Corporation, the Board
may delegate all or a portion of its authority to administer the Plan to a committee of the Board appointed by the Board and constituted
in compliance with the Corporation Law. If permitted by the Corporation Law, and not prohibited by the charter or bylaws of the
Corporation, the Board may also delegate all or a portion of its authority to administer the Plan to an officer or officers of
the Corporation designated by the Board.

 

B.          Powers
of the Committee. Subject to the provisions of the Plan, and, in the case of a Committee appointed by the Board, the specific
duties delegated to such Committee, the Committee shall have the authority to implement, interpret and administer the Plan. Such
authority shall include, without limitation, the authority:

 

(i)      To construe and interpret all provisions of this Plan and all Stock Option Agreements and Stock
Award Agreements under this Plan.

 

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	4	 

     

    

 

(ii)       To
determine the Fair Market Value of Common Stock.

 

(iii)       To
select the Eligible Persons to whom Options or Stock Awards, are granted from time to time hereunder.

 

(iv)       To
determine the number of shares of Common Stock covered by an Option or Stock Award; determine whether an Option shall be an Incentive
Stock Option or Nonqualified Stock Option; and determine such other terms and conditions, not inconsistent with the terms of the
Plan, of each such Option or Stock Award. Such terms and conditions include, but are not limited to, the exercise price of an Option,
purchase price of Common Stock subject to a Stock Award, the time or times when Options or Stock Awards may be exercised or Common
Stock issued thereunder, the right of the Corporation to repurchase Common Stock issued pursuant to the exercise of an Option or
a Stock Award and other restrictions or limitations (in addition to those contained in the Plan) on the forfeitability or transferability
of Options, Stock Awards or Common Stock issued upon exercise of an Option or pursuant to a Stock Award. Such terms may include
conditions as shall be determined by the Committee and need not be uniform with respect to Participants.

 

(v)       To
accelerate the time at which any Option or Stock Award may be exercised, or the time at which a Stock Award or Common Stock issued
under the Plan may become transferable or nonforfeitable.

 

(vi)       To
amend, cancel, extend, renew, accept the surrender of, modify or accelerate the vesting of or lapse of restrictions on all or any
portion of an outstanding Option or Stock Award and to reduce the exercise price of any Option. Except as specifically permitted
by the Plan, the Stock Option Agreement or Stock Award Agreement or as required to comply with applicable law, regulation or rule,
no amendment, cancellation or modification shall, without a Participant’s consent, adversely affect any rights of the Participant;
provided, however, that an amendment or modification that may cause an Incentive Stock Option to become a Nonqualified Stock Option,
and any amendment or modification that is required to comply with the rules applicable to Incentive Stock Options, shall not be
treated as adversely affecting the rights of the Participant.

 

(vii)       To
prescribe the form of Stock Option Agreements and Stock Award Agreements; to adopt policies and procedures for the exercise of
Options or Stock Awards, including the satisfaction of withholding obligations; to adopt, amend, and rescind policies and procedures
pertaining to the administration of the Plan; and to make all other determinations necessary or advisable for the administration
of this Plan.

 

The express grant in
the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee; provided
that a Committee of the Board may not exercise any right or power reserved to the Board. Any decision made, or action taken, by
the Committee or in connection with the administration of this Plan shall be final, conclusive and binding on all persons having
an interest in the Plan.

 

C.       Administration
When Common Stock is Publicly Traded. On and following the Listing Date the Committee authorized by the Board to administer
the Plan shall, if so determined by the Board, consist of solely two (2) or more Non-Employee Directors (within the meaning of
Rule 16b-3 under the Exchange Act); provided that the Board may delegate administrative authority with respect to Eligible Persons
who are not subject to Section 16 of the Exchange Act to a committee of other than Non-Employee Directors.

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	5	 

     

    

 

		4.	Eligibility

 

A.          Eligibility
for Awards. Nonqualified Stock Options and Stock Awards may be granted to any Eligible Person selected by the Committee. Incentive
Stock Options may be granted only to employees of the Corporation or a Parent or Subsidiary.

 

B.          Eligibility
of Consultants. A Consultant shall be an Eligible Person only if the offer or sale of the Corporation’s securities would
be exempt from registration under Rule 701 under the Securities Act prior to the date the Corporation is required to file reports
under Section 13 or 15(d) of the Exchange Act, or eligible for registration on Form S-8 Registration Statement, on and following
the date the Corporation is required to file reports under Section 13 or 15(d) of the Exchange Act, because, in either case, of
the identity and nature of the service provided by such person, unless the Corporation determines that an offer or sale of the
Corporation’s securities to such person will satisfy another exemption from the registration under the Securities Act and
complies with the securities laws of all other jurisdictions applicable to such offer or sale.

 

C.          Substitution
Awards. The Committee may make Stock Awards and may grant Options under the Plan by assumption, substitution or replacement
of performance shares, phantom shares, stock awards, stock options, stock appreciation rights or similar awards granted by another
entity (including an Affiliate), if such assumption, substitution or replacement is in connection with an asset acquisition, stock
acquisition, merger, consolidation or similar transaction involving the Corporation (and/or its Affiliate) and such other entity
(and/or its affiliate). Notwithstanding any provision of the Plan (other than the maximum number of shares of Common Stock that
may be issued under the Plan), the terms of such assumed, substituted or replaced Stock Awards or Options shall be as the Committee,
in its discretion, determines is appropriate.

 

 

		5.	Common Stock Subject to Plan

 

A.          Share
Reserve. Subject to adjustment as provided in Section 8, the maximum aggregate number of shares of Common Stock that may be
(i) issued under this Plan pursuant to the exercise of Options, (ii) issued pursuant to Stock Bonus Awards, Restricted Stock Awards
and Other Stock Awards, and (iii) covered by Stock Appreciation Rights and Restricted Stock Unit Awards is fifty million (50,000,000)
shares. Notwithstanding the foregoing, subject to adjustment as provided in Section 8, no more than fifty million (50,000,000)
shares of Common Stock may be issued pursuant to the exercise of Incentive Stock Options and Section 5.B shall apply to such limit
to the extent permitted by Section 422 of the Code and regulations thereunder.

 

B.          Reversion
of Shares. If an Option or Stock Award is terminated, expires or becomes unexercisable, in whole or in part, for any reason,
the unissued or unpurchased shares of Common Stock (or shares subject to an unexercised Stock Appreciation Right or unsettled Restricted
Stock Unit Award) which were subject thereto shall become available for future grant under the Plan. Shares of Common Stock that
have been actually issued under the Plan shall not be returned to the share reserve for future grants under the Plan; except that
shares of Common Stock issued pursuant to a Stock Award which are forfeited back to the Corporation rather than vesting, shall
be returned to the share reserve for future grant under the Plan.

 

C.          Source
of Shares. Common Stock issued under the Plan may be shares of authorized and unissued Common Stock or shares of previously
issued Common Stock that have been reacquired by the Corporation.

 

		6.	Options

 

A.          Award.
In accordance with the provisions of Section 4, the Committee will designate each Eligible Person to whom an Option is to be granted
and will specify the number of shares of Common Stock covered by such Option. The Stock Option Agreement shall specify whether
the Option is an Incentive Stock Option or Nonqualified Stock Option, the vesting schedule (if any) applicable to such Option and
any other terms of such Option. No Option that is intended to be an Incentive Stock Option shall be invalid for failure to qualify
as an Incentive Stock Option. Shares of Common Stock issued pursuant to an Option may, but need not, be subject to a vesting schedule
and may, but need not, be subject to a share repurchase option in favor of the Corporation as determined by the Committee.

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	6	 

     

    

 

B.           Exercise
Price. The exercise price per share for Common Stock subject to an Option shall be determined by the Committee, but shall comply
with the following:

 

(i)       The
exercise price per share for Common Stock subject to a Nonqualified or Incentive Stock Option shall be determined by the Committee,
provided that the exercise price per share for Common Stock shall not be less than one hundred percent (100%) of the Fair Market
Value on the date of grant.

 

(ii)        The
exercise price per share for Common Stock subject to an Incentive Stock Option granted to a Participant who is or is deemed to
be a Ten Percent Owner on the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market
Value on the date of grant.

 

C.       Maximum
Option Period. The maximum period during which an Option may be exercised shall be determined by the Committee on the date
of grant, except that no Option that is intended to be an Incentive Stock Option shall be exercisable after the expiration of ten
(10) years from the date such Option was granted. In the case of an Incentive Stock Option that is granted to a Participant who
is or is deemed to be a Ten Percent Owner on the date of grant, such Option shall not be exercisable after the expiration of five
(5) years from the date of grant. The terms of any Option that is an Incentive Stock Option may provide that it is exercisable
for a period less than such maximum period.

 

D.       Maximum
Value of Options which are Incentive Stock Options. To the extent that the aggregate Fair Market Value of the Common Stock
with respect to which Incentive Stock Options granted to any person are exercisable for the first time during any calendar year
(under all stock option plans of the Corporation and its Parent (if any) or any of its Subsidiaries) exceeds $100,000 (or such
other amount provided in Section 422 of the Code), the Options are not Incentive Stock Options. For purposes of this section, the
Fair Market Value of the Common Stock will be determined as of the time the Incentive Stock Option with respect to the Common Stock
is granted. This section will be applied by taking Incentive Stock Options into account in the order in which they are granted.

 

E.       Nontransferability.
Options granted under this Plan which are intended to be Incentive Stock Options shall be nontransferable except by will or by
the laws of descent and distribution and during the lifetime of the Participant shall be exercisable by only the Participant to
whom the Incentive Stock Option is granted. If the Stock Option Agreement so provides or the Committee so approves, a Nonqualified
Stock Option may be transferred by a Participant to the Participant’s children, stepchildren, grandchildren, spouse, one
or more trusts for the benefit of such family members or a partnership in which such family members are the only partners; provided,
however, that Participant may not receive any consideration for the transfer and such transfers are limited to the extent permitted
by Rule 701 of the Securities Act and, if the Option is intended to satisfy the exemption under Section 25102(o) of the California
Corporations Code, Rule 260.140.41(c) of Title 10 of the California Code of Regulations. The holder of a Nonqualified Stock Option
transferred pursuant to this section shall be bound by the same terms and conditions that governed the Option during the period
that it was held by the Participant. Except to the extent transferability of a Nonqualified Stock Option is provided for in the
Stock Option Agreement or is approved by the Committee, during the lifetime of the Participant to whom the Nonqualified Stock Option
is granted, such Option may be exercised only by the Participant. No right or interest of a Participant in any Option shall be
liable for, or subject to, any lien, obligation, or liability of such Participant.

 

F.       Vesting
and Termination of Continuous Service. A Stock Option Agreement may provide for rules for vesting and termination of the Option
on a termination of Continuous Service. Except as provided in a Stock Option Agreement (including an amendment of a Stock Option
Agreement), the following rules shall apply:

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	7	 

     

    

 

(i)       Subject
to the rules of this paragraph, Options will vest as provided in the Stock Option Agreement. An Option will be exercisable only
to the extent that it is vested on the date of exercise. Except to the extent the Committee explicitly determines otherwise with
respect to an Option prior to the expiration or termination of the Option, vesting of an Option will cease on the date of the Participant’s
termination of Continuous Service and the Option will be exercisable only to the extent the Option is vested on the date of termination
of Continuous Service.

 

(ii)       If
the Participant’s termination of Continuous Service is for reason of death or Disability, the right to exercise the Option
(to the extent vested) will expire on the earlier of (i) the close of business at Corporation headquarters on the date that is
one (1) year after the date of the Participant’s termination of Continuous Service, or (ii) the expiration date under the
terms of the Agreement. Until the expiration date, the Participant’s heirs, legatees or legal representative may exercise
the Option, except to the extent the Option was previously transferred pursuant to Section 6.E.

 

(iii)       If
the Participant’s termination of Continuous Service is an involuntary termination without Cause or a voluntary termination
(other than a voluntary termination described in Section 6.F.(iv)), the Option will expire on the earlier of (i) the close of business
at Corporation headquarters on the date that is three (3) months after the date of the Participant’s termination of Continuous
Service, or (ii) the expiration date under the terms of the Agreement. The Option, to the extent that it is vested, may be exercised
prior to expiration. Notwithstanding any provision to the contrary, following termination of Continuous Service, a Participant
shall not be entitled to exercise any unvested portion of an Option and shall have no right to receive any compensation with respect
to such unvested portion. If the Participant’s termination of Continuous Service is an involuntary termination without Cause
or a voluntary termination (other than a voluntary termination described in Section 6.F.(iv)) and the Participant dies after his
or her termination of Continuous Service but before the right to exercise the Option has expired, the right to exercise the Option
(to the extent vested) shall expire on the earlier of (i) the close of business at Corporation headquarters on the date that is
one (1) year after the date of the Participant’s termination of Continuous Service or (ii) the date the Option expires under
the terms of the Stock Option Agreement, and, until expiration, the Participant’s heirs, legatees or legal representative
may exercise the Option, except to the extent the Option was previously transferred pursuant to Section 6.E.

 

(iv)       If
the Participant’s termination of Continuous Service is for Cause or is a voluntary termination at any time after an event
which would be grounds for termination of the Participant’s Continuous Service for Cause, the right to exercise the Option
shall expire as of the date of the Participant’s termination of Continuous Service.

 

G.       Non-Exempt
Employees. No Option, whether or not vested, granted to a Participant who is a non-exempt employee for purposes of the Fair
Labor Standards Act of 1938, as amended (the “FLSA”), shall be first exercisable for any shares of Common Stock
until at least six (6) months following the date of grant of the Option. Notwithstanding the foregoing, consistent with the provisions
of the Worker Economic Opportunity Act, (i) upon the Participant’s death or Disability, (ii) upon a corporate transaction
involving a change in corporate ownership which is described in Section 8.C. in which such Option is not assumed, continued, or
substituted, or (iii) upon the Participant’s retirement (as such term may be defined in the Participant’s Option Agreement
or in another applicable agreement or in accordance with the Corporation’s then current employment policies and guidelines),
any such vested Options may be exercised earlier than six (6) months following the date of grant. The foregoing provision is intended
to operate so that any income derived by a Participant who is a non-exempt employee in connection with the exercise or vesting
of an Option will be excluded from his or her regular rate of pay for purposes of the FLSA.

 

H.       Early
Exercise. An Option may, but need not, include a provision whereby the Participant may elect at any time before the Participant’s
Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option
prior to the full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject to a repurchase option
in favor of the Corporation (or its assignee) or to any other restriction the Board determines to be appropriate. The Corporation
shall not be required to exercise its repurchase right until at least six (6) months (or such longer or shorter period of time
required to avoid classification of the Option as a liability for financial accounting purposes) have elapsed following exercise
of the Option unless specifically provided otherwise in the Option Agreement.

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	8	 

     

    

 

I.       Exercise.
An Option shall be exercised by completion, execution and delivery of notice (written or electronic) to the Corporation of the
Option which states (i) the Option holder’s intent to exercise the Option, (ii) the number of shares of Common Stock with
respect to which the Option is being exercised, (iii) such other representations and agreements as may be required by the Corporation
and (iv) the method for satisfying any applicable tax withholding as provided in Section 9. Such notice of exercise shall be provided
on such form or by such method as the Committee may designate, and payment of the exercise price shall be made in accordance with
Section 6.J. Subject to the provisions of this Plan and the applicable Stock Option Agreement, an Option may be exercised to the
extent vested in whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee
shall determine. A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance
with this Plan and the applicable Stock Option Agreement with respect to the remaining shares subject to the Option. An Option
may not be exercised with respect to fractional shares of Common Stock.

 

J.       Payment.
Unless otherwise provided by the Stock Option Agreement, payment of the exercise price for an Option shall be made in cash or a
cash equivalent acceptable to the Committee. Payment of all or part of the exercise price of an Option may also be made, (i) with
the consent of the Committee, by surrendering shares of Common Stock to the Corporation, (ii) with the consent of the Committee,
by a full-recourse promissory note, (iii) if the Common Stock is traded on an established securities market, the payment of the
exercise price by a broker-dealer or by the Option holder with cash advanced by the broker-dealer if the exercise notice is accompanied
by the Option holder’s written irrevocable instructions to deliver the Common Stock acquired upon exercise of the Option
to the broker-dealer, or (iv) any other method acceptable to the Committee and provided for in the Stock Option Agreement. If Common
Stock is used to pay all or part of the exercise price, the sum of the cash or cash equivalent and the Fair Market Value (determined
as of the date of exercise) of the shares surrendered must not be less than the exercise price of the shares for which the Option
is being exercised. If all or part of the exercise price is to be paid with a full-recourse promissory note, the par value of the
Common Stock, if newly issued, shall be paid in cash or cash equivalents. The shares received upon exercise of the Option shall
be pledged as security for payment of the principal amount of the promissory note and interest thereon and the interest rate payable
under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional
interest under the Code. Subject to the foregoing, the Committee (at its sole discretion) shall specify the term, interest rate,
amortization requirements (if any) and other provisions of such note.

 

K.       Buyout
Provisions. The Committee may at any time offer to buy out an Option previously granted for a payment in cash, shares of Common
Stock or other property. Such buyout offer shall be on such terms and conditions as the Committee shall determine.

 

L.       Stockholder
Rights. No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the date of
exercise of such Option and the certificate for shares of Common Stock to be received on exercise of such Option has been issued
by the Corporation.

 

M.       Disposition
and Stock Certificate Legends for Incentive Stock Option Shares. A Participant shall notify the Corporation of any sale or
other disposition of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i) within
two (2) years of the grant of an Option or (ii) within one (1) year of the issuance of the Common Stock to the Participant. Such
notice shall be in writing and directed to the Secretary of the Corporation. The Corporation may require that certificates evidencing
shares of Common Stock purchased upon the exercise of an Incentive Stock Option issued under the Plan be endorsed with a legend
in substantially the following form:

 

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2021 Stock Incentive
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THE SHARES REPRESENTED
BY THIS CERTIFICATE WERE ISSUED UPON EXERCISE OF AN INCENTIVE STOCK OPTION, AND THE CORPORATION MUST BE NOTIFIED IF THE SHARES
SHALL BE TRANSFERRED BEFORE THE LATER OF THE TWO (2) YEAR ANNIVERSARY OF THE DATE OF GRANT OF THE OPTION OR THE ONE (1) YEAR ANNIVERSARY
OF THE DATE ON WHICH THE OPTION WAS EXERCISED. THE REGISTERED HOLDER MAY RECOGNIZE ORDINARY INCOME IF THE SHARES ARE TRANSFERRED
BEFORE SUCH DATE.

 

		7.	Stock Awards

 

A.          Stock
Bonus Awards. Each Stock Award Agreement for a Stock Bonus Award shall be in such form and shall contain such terms and conditions
as the Committee shall deem appropriate. The terms and conditions of Stock Award Agreements for Stock Bonus Awards may change from
time to time, and the terms and conditions of separate Stock Bonus Awards need not be identical, but each Stock Bonus Award shall
include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the
following provisions:

 

(i)       Consideration.
A Stock Bonus Award may be granted in consideration for past services actually rendered to the Corporation or an Affiliate for
its benefit.

 

(ii)       Vesting.
Shares of Common Stock granted under the Stock Bonus Award may, but need not, be subject to a vesting schedule and may, but need
not, be subject to a share repurchase option in favor of the Corporation as determined by the Committee.

 

(iii)       Participant’s
Termination of Service. In the event of a Participant’s termination of Continuous Service, the Corporation may reacquire
any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the
terms of the Stock Bonus Award.

 

(iv)       Transferability.
Rights to acquire shares of Common Stock under the Stock Bonus Award shall be transferable by the Participant only upon such terms
and conditions as are set forth in the Stock Award Agreement, as the Committee shall determine in its discretion, so long as Common
Stock granted under the Stock Bonus Award remains subject to the terms of the Stock Award Agreement.

 

B.          Restricted
Stock Awards. Each Stock Award Agreement for a Restricted Stock Award shall be in such form and shall contain such terms and
conditions as the Committee shall deem appropriate. The terms and conditions of the Stock Award Agreements for Restricted Stock
Awards may change from time to time, and the terms and conditions of separate Restricted Stock Awards need not be identical, but
each Restricted Stock Award shall include (through incorporation of the provisions hereof by references in the agreement or otherwise)
the substance of each of the following provisions.

 

(i)       Purchase
Price. The purchase price, if any, of a Restricted Stock Award shall be determined by the Committee.

 

(ii)       Consideration.
The purchase price of Common Stock acquired pursuant to the Restricted Stock Award shall be paid either: (i) in cash at the time
of purchase; (ii) at the discretion of the Committee, according to a deferred payment or other similar arrangement with the Participant;
or (iii) in any other form of legal consideration that may be acceptable to the Committee in its discretion; provided, however,
that payment of the Common Stock’s “par value” shall not be made by deferred payment.

 

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2021 Stock Incentive
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(iii)       Vesting.
Shares of Common Stock acquired under a Restricted Stock Award may, but need not, be subject to a share repurchase option in favor
of the Corporation in accordance with a vesting schedule to be determined by the Committee.

 

(iv)       Participant’s
Termination of Service. In the event of a Participant’s termination of Continuous Service, the Corporation may repurchase
or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of
termination under the terms of the Stock Award Agreement for such Restricted Stock Award.

 

(v)       Transferability.
Rights to acquire shares of Common Stock under a Restricted Stock Award shall be transferable by the Participant only upon such
terms and conditions as are set forth in the Stock Award Agreement for such Restricted Stock Award, as the Committee shall determine
in its discretion, so long as Common Stock granted under the Restricted Stock Award remains subject to the terms of the Stock Award
Agreement.

 

C.       Stock
Appreciation Rights. Each Stock Award Agreement for Stock Appreciation Rights shall be in such form and shall contain such
terms and conditions as the Committee shall deem appropriate. The terms and conditions of Stock Appreciation Rights may change
from time to time, and the terms and conditions of separate Stock Appreciation Rights need not be identical, but each Stock Appreciation
Right shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

 

(i)       Benefit
Provided. Each Stock Appreciation Right shall provide the Participant with the right to receive payment in cash or shares of
Common Stock having a Fair Market Value, as designated in the Stock Award Agreement for such Stock Appreciation Rights, of an amount
equal to the difference between the Fair Market Value of the Common Stock as of the date of grant of the Stock Appreciation Right
and the Fair Market Value of the Common Stock on the date of exercise of such Stock Appreciation Right.

 

(ii)       Tandem
Awards. Stock Appreciation Rights may be granted either alone or in tandem with other awards, including Options, under the
Plan.

 

(iii)       Vesting.
The Stock Award Agreement for a Stock Appreciation Right shall provide the vesting schedule applicable to such award and may, but
need not, provide that shares of Common Stock acquired upon exercising a Stock Appreciation Right are subject to a repurchase option
in favor of the Corporation.

 

(iv)       Participant’s
Termination of Service. In the event of a Participant’s termination of Continuous Service, the Corporation may repurchase
or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of
termination under the terms of the Stock Appreciation Right.

 

(v)       Transferability.
Rights to acquire cash or shares of Common Stock under a Stock Appreciation Rights shall be nontransferable except by will or by
the laws of descent and distribution and during the lifetime of the Participant shall be exercisable by only the Participant to
whom the Stock Appreciation Rights are granted.

 

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2021 Stock Incentive
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(vi)       Non-Exempt
Employees. No Stock Appreciation Right, whether or not vested, granted to a Participant who is a non-exempt employee for purposes
of the FLSA, shall be first exercisable until at least six (6) months following the date of grant of the Stock Appreciation Right.
Notwithstanding the foregoing, consistent with the provisions of the Worker Economic Opportunity Act, (i) upon the Participant’s
death or Disability, (ii) upon a corporate transaction involving a change in corporate ownership which is described in Section
8.C. in which such Stock Appreciation Right is not assumed, continued, or substituted, or (iii) upon the Participant’s retirement
(as such term may be defined in the Participant’s Stock Award Agreement or in another applicable agreement or in accordance
with the Corporation’s then current employment policies and guidelines), any such vested Stock Appreciation Right may be
exercised earlier than six (6) months following the date of grant. The foregoing provision is intended to operate so that any income
derived by a Participant who is a non-exempt employee in connection with the exercise or vesting of a Stock Appreciation Right
will be excluded from his or her regular rate of pay for purposes of the FLSA.

 

D.       Restricted
Stock Unit Awards. Each Stock Award Agreement for a Restricted Stock Unit Award shall be in such form and shall contain such
terms and conditions as the Committee shall deem appropriate. The terms and conditions of Stock Award Agreements for Restricted
Stock Unit Awards may change from time to time, and the terms and conditions of separate Restricted Stock Unit Awards need not
be identical, but each Restricted Stock Unit Award shall include (through incorporation of the provisions hereof by reference in
the agreement or otherwise) the substance of each of the following provisions:

(i)       Number
of Shares; Consideration. Each Stock Award Agreement for a Restricted Stock Unit Award shall specify the number of shares of
Common Stock that are subject to the Restricted Stock Unit Award and shall provide for the adjustment of such number in accordance
with Section 8. A Restricted Stock Unit Award may be granted in consideration for services actually rendered or to be rendered
to the Corporation or an Affiliate for its benefit.

 

(ii)       Vesting.
Each Award of Restricted Stock Units may, but need not, be subject to a vesting schedule and may, but need not, be subject to a
share repurchase option in favor of the Corporation as determined by the Committee.

 

(iii)       Settlement
of Restricted Stock Units. Settlement of Restricted Stock Units shall be as provided in the Stock Award Agreement for such
Restricted Stock Units. Settlement of the Restricted Stock Units may be made in the form of cash or whole shares of Common Stock
or a combination thereof, as determined by the Committee in its sole discretion.

 

(iv)       Participant’s
Termination of Service. Except as otherwise provided in the Stock Award Agreement, in the event of a Participant’s termination
of Continuous Service, any Restricted Stock Units held by such Participant which have not vested as of the date of termination
under the terms of the Stock Award Agreement shall be forfeited.

 

(v)       Transferability.
Unless otherwise provided in the Stock Award Agreement, Restricted Stock Units may not be transferred other than by beneficiary
designation, will or the laws of descent and distribution.

 

(vi)       Stockholder
Rights. No Participant shall have any rights as a stockholder with respect to shares covered by a Restricted Stock Unit Award
until such Participant receives such shares upon settlement of the Restricted Stock Unit Award. A Participant shall have no rights
under a Restricted Stock Unit Award other than those of a general creditor of the Corporation.

 

 

E.       Other
Stock Awards. The Committee may grant other forms of Stock Award under the Plan that are based in whole or in part on Common
Stock or the value thereof. Subject to the provisions of the Plan, the Committee shall have authority in its sole discretion to
determine the terms and conditions of such Other Stock Awards, including the number of shares (or the cash equivalent thereof)
to be granted pursuant to such Other Stock Awards.

 

Castellum, Inc.

2021 Stock Incentive
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8.          Changes
in Capital Structure

 

A.       No
Limitations of Rights. The existence of outstanding Options or Stock Awards shall not affect in any way the right or power
of the Corporation or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Corporation’s capital structure or its business, or any merger or consolidation of the Corporation, or any
issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof,
or the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or otherwise.

 

B.       Changes
in Capitalization. If the Corporation shall effect a subdivision, consolidation or reclassification of shares or other capital
readjustment, a stock split, a reverse stock split, the payment of a dividend in stock of the Corporation, a spin-off, the payment
of an extraordinary dividend or distribution in a form other than stock of the Corporation in an amount that has a material effect
on the fair market value of the Common Stock, or other increase or reduction of the number of shares of the Common Stock outstanding,
without receiving consideration therefore in money, services or property, then (i) the number, class, and per share price of shares
of Common Stock subject to outstanding Options and Stock Awards hereunder and (ii) the number and class of shares then reserved
for issuance under the Plan and the maximum number of shares for which awards may be granted to a Participant during a specified
time period shall be appropriately and proportionately adjusted. The conversion of convertible securities of the Corporation shall
not be treated as effected “without receiving consideration.” The Committee shall make such adjustments, and its determinations
shall be final, binding and conclusive. Any such adjustment of an Option or Stock Award which is not subject to Section 409A of
the Code shall be made in a manner which does not result in the Option or Stock Award being subject to Section 409A.

 

C.       Merger,
Consolidation, Asset Sale or Other Corporate Transaction. In the event that the Corporation is a party to a merger or other
consolidation, in the event of a transaction providing for the sale of all or substantially all of the Corporation’s stock
or assets, or in the event of such other corporate transaction, such as a separation or reorganization, outstanding Options and
Stock Awards shall be subject to such treatment as the Board shall determine. Such treatment may include one or more of the following:
(i) the continuation of the outstanding Options and Stock Awards by the Corporation, if the Corporation is a surviving entity;
(ii) the assumption of outstanding Options and Stock Awards by the surviving or successor entity or its parent; (iii) the substitution
by the surviving or successor entity or its parent of options or other awards with substantially the same terms for such outstanding
Options and Stock Awards; (iv) exercisability of such outstanding Options and Stock Awards to the extent vested and exercisable
under the terms of the Stock Option Agreement or Stock Award Agreement followed by the cancellation of such Options or Stock Award
(whether or not then exercisable); or (v) settlement of the intrinsic value of the outstanding Options and Stock Awards to the
extent vested and exercisable under the terms of the Stock Option Agreement or Stock Award Agreement, with payment made in cash,
cash equivalents or other property as determined by the Committee (including cash, cash equivalents or other property subject to
deferred vesting and delivery consistent with the vesting restrictions applicable to such Options and Stock Awards), and the cancellation
of such Options and Stock Awards (whether or not then exercisable). The value of any property provided in the settlement shall
be determined by the Board, and to extent permitted under Treasury Regulation Section 1.409A-3(i)(5)(iv) or otherwise without resulting
in taxation under Section 409A of the Code, the Board may provide for the payment of the value of a cancelled Option or Stock Award
to be made on a delayed basis in recognition of escrows, earn-outs, or other contingencies or holdbacks applicable to holders of
Common Stock in connection with the transaction. In each case, the surviving, acquiring or successor entity or its parent may choose
to assume or continue only a portion of an Option or Stock Award or substitute a similar award for only a portion of an Option
or Stock Award, or may assume, continue or substitute some Options or Stock Awards and not others, and in all cases unvested Options
or Stock Awards may be terminated without payment. The continuation, assumption or substitution of an Option which permits the
exercise of the Option prior to the vesting of the shares of Common Stock subject to such Option (i.e., an “early exercise
option”) may be made in a manner which permits exercise of such Option only to the extent it is vested. The actions under
this paragraph shall be effected in a manner which does not result in an Option or Stock Award which is not subject to Section
409A of the Code being subject to taxation under Section 409A of the Code. During the pendency of a transaction subject to this
Section 8.C., the Board shall have the discretion to suspend the rights of Participants to exercise outstanding Awards during a
limited period of time preceding the closing of the transaction if appropriate to facilitate closing of the transaction.

 

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D.       Limitation
on Adjustment. Except as previously expressly provided, neither the issuance by the Corporation of shares of stock of any class,
or securities convertible into shares of stock of any class, for cash or property, or for labor or services either upon direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Corporation
convertible into such shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor
the addition or deletion of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to,
the number, class or price of shares of Common Stock then subject to outstanding Options or Stock Awards.

 

9.          Withholding
of Taxes

 

The Corporation or
an Affiliate shall have the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment
owed to a Participant any amount that is necessary in order to satisfy any withholding requirement that the Corporation or Affiliate
in good faith believes is imposed upon it in connection with Federal, state, or local taxes, including transfer taxes, as a result
of the issuance of, or lapse of restrictions on, such Common Stock, or otherwise require such Participant to make provision for
payment of any such withholding amount. Subject to such conditions as may be established by the Committee, the Committee may permit
a Participant to (i) have Common Stock otherwise issuable under an Option or Stock Award withheld to the extent necessary to comply
with minimum statutory withholding rate requirements for supplemental income, (ii) tender back to the Corporation shares of Common
Stock received pursuant to an Option or Stock Award in an amount not in excess of the maximum statutory tax rates in the Participant’s
jurisdiction, (iii) deliver to the Corporation previously acquired Common Stock, (iv) have funds withheld from payments of wages,
salary or other cash compensation due the Participant, or (v) pay the Corporation or its Affiliate in cash, in order to satisfy
part or all of the obligations for any taxes required to be withheld or otherwise deducted and paid by the Corporation or its Affiliate
with respect to the Option or Stock Award.

 

10.         Transfer
Restrictions And Repurchase rights

 

A.       Transfer
Restrictions. No person who shall have acquired shares of Common Stock or shall have any right to acquire shares of Common
Stock under the Plan shall sell, assign, pledge or otherwise transfer (each, a “Transfer”) any such shares of
Common Stock or any right or interest therein (including, without limitation, any Option) (such shares or right or interest therein,
collectively, the “Securities”), whether voluntarily, involuntarily, by operation of law, by gift or otherwise,
without the prior written consent of the Corporation, evidenced by a writing approved by the Board (the “Transfer Restriction”).
The Transfer Restriction shall not apply to any of the following exempt Transfers:

 

(i)       A
person’s Transfer of any or all Securities held either during such person’s lifetime or on death by will or intestacy
(1) to such person’s Immediate Family, (2) to any custodian or trustee for the account or the benefit of such person or such
person’s Immediate Family, or (3) to any limited partnership or limited liability company with respect to which the ownership
interests are wholly owned by the person, members of such person’s Immediate Family or any trust for the account or benefit
of such person or such person’s Immediate Family;

 

(ii)       A
person’s bona fide pledge or mortgage of any Securities with a commercial lending institution that creates a mere security
interest, provided that any subsequent Transfer of such Securities by such institution shall be subject to this Section;

 

(iii)       A
person’s Transfer of any or all of such person’s Securities to the Corporation (or the Corporation’s assignee);
or

 

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2021 Stock Incentive
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(iv)       A
person’s Transfer of any or all of such person’s Securities in connection with a transaction subject to Section 8.C.
or compliance with such person’s obligations under an agreement with the Corporation compelling the person to sell such Securities
(e.g., a drag-along); provided that with respect to Transfers pursuant to subsections (i) and (ii) above, the Transferee shall
receive and hold such Securities subject to the provisions of this Section 10.A and there shall be no further Transfer of such
Securities except in accordance with this Section 10.A. The provisions of this Section 10.A may be waived with respect to any Transfer
by the Board. The provisions of this Section 10.A shall terminate immediately prior to the date of the closing of a firm commitment
underwritten public offering of the Corporation’s Common Stock pursuant to a registration statement filed with, and declared
effective by, the Securities and Exchange Commission under the Securities Act. Any Transfer or purported Transfer of Securities
of the Corporation shall be null and void unless the terms, conditions and provisions of this Section 10.A are strictly observed
and followed. The restrictions contained in this Section 10.A shall be in addition to any restrictions on transfer that may otherwise
be applicable, including without limitation those contained in the Corporation’s bylaws, the Stock Option Agreement, Stock
Award Agreement, or pursuant to applicable securities laws.

 

B.       Corporation’s
Right to Repurchase Shares. Shares of Common Stock acquired under the Plan shall also be subject to such forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions
shall be set forth in the applicable Stock Option Agreement or Stock Award Agreement and, unless otherwise provided in the Stock
Option Agreement or Stock Award Agreement, shall apply to any dividends paid with respect to such shares. Such restrictions shall
apply in addition to any restrictions otherwise applicable to holders of shares of Common Stock generally.

 

11.         Compliance
with Law and Approval of Regulatory Bodies

 

A.       General
Requirements. No Option or Stock Award shall be exercisable, no Common Stock shall be issued, no certificates for shares of
Common Stock shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal
and state laws and regulations (including, without limitation, withholding tax requirements), any listing agreement to which the
Corporation is a party, and the rules of all domestic stock exchanges or quotation systems on which the Corporation’s shares
may be listed. The Corporation shall have the right to rely on an opinion of its counsel as to such compliance. Any share certificate
issued to evidence Common Stock when a Stock Award is granted or for which an Option or Stock Award is exercised may bear such
legends and statements as the Committee may deem advisable to assure compliance with federal and state laws and regulations. No
Option or Stock Award shall be exercisable, no Stock Award shall be granted, no Common Stock shall be issued, no certificate for
shares shall be delivered, and no payment shall be made under this Plan until the Corporation has obtained such consent or approval
as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters.

 

B.       Voting
and Dividend Rights. Except as provided in the award agreement, the holders of shares of Common Stock acquired under the Plan
shall have the same voting, dividend and other rights as the Corporation’s other stockholders. A Stock Bonus Agreement or
Restricted Stock Agreement, however, may require that the holders of shares of Common Stock invest any cash dividends received
in additional shares of Common Stock. Such additional shares shall be subject to the same conditions and restrictions as the award
with respect to which the dividends were paid.

 

C.       Participant
Representations. The Committee may require that a Participant, as a condition to receipt or exercise of a particular award,
execute and deliver to the Corporation a written statement, in form satisfactory to the Committee, in which the Participant represents
and warrants that the shares are being acquired for such person’s own account, for investment only and not with a view to
the resale or distribution thereof. The Participant shall, at the request of the Committee, be required to represent and warrant
in writing that any subsequent resale or distribution of shares of Common Stock by the Participant shall be made only pursuant
to either (i) a registration statement on an appropriate form under the Securities Act of 1933, which registration statement has
become effective and is current with regard to the shares being sold, or (ii) a specific exemption from the registration requirements
of the Securities Act of 1933, but in claiming such exemption the Participant shall, prior to any offer of sale or sale of such
shares, obtain a prior favorable written opinion of counsel, in form and substance satisfactory to counsel for the Corporation,
as to the application of such exemption thereto.

 

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D.       Foreign
Participants. In order to facilitate the making of any award or combination of awards under the Plan, the Committee may provide
for such special terms for awards to Participants who are foreign nationals, or who are employed by the Corporation or any Affiliate
outside of the United States, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax
policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative versions
of, the Plan, including "sub-plans" to the Plan, as it may consider necessary or appropriate for such purposes without
thereby affecting the terms of the Plan as in effect for any other purpose, provided that no such supplements, amendments, restatements,
alternative versions or sub-plans shall include any provisions that are inconsistent with the Plan, unless the Plan may be amended
to eliminate such inconsistency without further approval by the stockholders of the Corporation.

 

		12.	General Provisions

 

A.       Effect
on Employment and Service. Neither the adoption of this Plan, its operation, nor any documents describing or referring to this
Plan (or any part thereof) shall (i) confer upon any individual any right to continue in the employ or service of the Corporation
or an Affiliate, (ii) in any way affect any right and power of the Corporation or an Affiliate to change an individual’s
duties or terminate the employment or service of any individual at any time with or without assigning a reason therefor or (iii)
except to the extent the Committee grants an Option or Stock Award to such individual, confer on any individual the right to participate
in the benefits of the Plan.

 

B.       Use
of Proceeds. The proceeds received by the Corporation from the sale of Common Stock pursuant to this Plan shall be used for
general corporate purposes.

 

C.       Unfunded
Plan. The Plan, insofar as it provides for grants, shall be unfunded, and the Corporation shall not be required to segregate
any assets that may at any time be represented by grants under this Plan. Any liability of the Corporation to any person with respect
to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan.
No such obligation of the Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any property of
the Corporation.

 

D.       409A
Compliance. It is the intent of the Corporation that all awards under the Plan that constitute “nonqualified deferred
compensation” within the meaning of Code Section 409A will satisfy the requirements of that section, and that all awards
under the Plan that can qualify for an exemption from the definition of “nonqualified deferred compensation” under
that section, including but not limited to Options, Stock Appreciation Rights and Restricted Stock Awards, will do so unless the
Committee has determined otherwise. Accordingly, the terms of the Plan and Award Agreements shall be interpreted in a manner consistent
with Code Section 409A and regulations thereunder.

 

E.       Rules
of Construction. Headings are given to the Sections of this Plan solely as a convenience to facilitate reference, and shall
not be used in interpreting, construing or enforcing any provision hereof. The reference to any statute, regulation, or other provision
of law shall be construed to refer to any amendment to or successor of such provision of law.

 

F.       Electronic
Delivery and Execution. Any reference herein to a “written” agreement or document shall include any agreement or
document delivered electronically or posted on the Corporation’s intranet (or other shared electronic medium controlled by
the Corporation to which the Participant has access). Documents may also be accepted by e-signature or other means of electronic
indications of acceptance as specified by the Committee.

 

G.       Choice
of Law. The Plan and, except to the extent that a Stock Option Agreement or Stock Award Agreement otherwise provides, all Stock
Option Agreements and Stock Award Agreements entered into under the Plan shall be governed by and interpreted under the laws of
the state of incorporation of Corporation excluding (to the greatest extent permissible by law) any rule of law that would cause
the application of the laws of any jurisdiction other than the laws of the jurisdiction of incorporation of the Corporation.

 

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		13.	Amendment and Termination

 

The Board may amend
or terminate this Plan from time to time; provided, however, that stockholder approval shall be required for any amendment that
(i) increases the aggregate number of shares of Common Stock that may be issued under the Plan or (ii) changes the class of employees
eligible to receive Incentive Stock Options, except as specifically permitted by the Plan, Stock Option Agreement or Stock Award
Agreement or as required to comply with any applicable law, regulation or rule, no amendment shall, without a Participant’s
consent, adversely affect any rights of such Participant under any Option or Stock Award outstanding at the time such amendment
is made; provided, however, that an amendment that may cause an Incentive Stock Option to become a Nonqualified Stock Option, and
any amendment that is required to comply with the rules applicable to Incentive Stock Options, shall not be treated as adversely
affecting the rights of the Participant. Stockholder approval shall also be required for any amendment if such approval is required
by the terms of any applicable law, regulation, or rule, including, without limitation, any stock market or securities on which
the Common Stock is publicly traded. Each such amendment shall be subject to the approval of the stockholders of the Corporation
within twelve (12) months of the date such amendment is adopted by the Board.

 

		14.	Effective Date of Plan and Duration of Plan

 

A.       The
Plan shall become effective as of October __, 2021 upon adoption by the Board, subject to approval within twelve (12) months by
the stockholders holding of a majority of the voting power of shares of the Corporation entitled to vote thereon. Unless and until
the plan has been approved by the stockholders of the Corporation, no Option or Stock Award may be exercised, and no shares of
Common Stock may be issued under the Plan. In the event that the stockholders of the Corporation shall not approve the Plan within
such twelve (12) month period, the Plan and any previously granted Option or Stock Award shall terminate.

 

B.       Unless
previously terminated, the Plan will terminate ten (10) years after the earlier of (i) the date the Plan is adopted by the Board,
or (ii) the date the Plan is approved by the stockholders, except that Options and Stock Awards that are granted under the Plan
prior to its termination will continue to be administered under the terms of the Plan until the Options and Stock Awards terminate
or are exercised.

 

* * * *

 

Castellum, Inc.

2021 Stock Incentive
Plan

 

    	 	17	 

     

    

 

Certification

 

The undersigned, Jay
Wright, Secretary of Castellum, Inc. (the “Corporation”) hereby certifies that the attached copy of the Castellum,
Inc. 2021 Stock Incentive Plan (the “Plan”) is a true and correct copy of the Plan as adopted by the Board of
Directors of the Corporation on October __, 2021.

 

	 	/s/ Jay Wright
	 	Jay Wright, Secretary of the Corporation

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