Document:

Execution
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SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of October 17, 2018, (the “Effective
Date”) between RONALD RUYLE, CHARLOTTE RUYLE, JERED RUYLE, and JANSON RUYLE (collectively, the “Seller(s)”),
and PARIS OXYGEN COMPANY, a Texas Corporation (the “Company”), and MAGNEGAS APPLIED TECHNOLOGY SOLUTIONS,
INC., a Delaware corporation (including its successors and assigns, the “Purchaser”).

 

RECITALS:

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an exemption from the registration requirements
of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”), the Seller(s) desires to sell
to the Purchaser, and the Purchaser desires to purchase from the Seller(s), securities of the Company, as more fully described
in this Agreement.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Seller(s), Company and each Purchaser agree as follows:

 

1)
PURCHASE AND SALE OF SECURITIES.

 

a)
Purchase of Shares of Capital Stock. Subject to the satisfaction (or waiver) of the conditions set forth in Section 6 below,
the Seller(s) will sell to the Purchaser, and the Purchaser agrees to purchase from the Seller(s) on the Closing Date (as defined
below) (i) such aggregate number of shares of Common Stock set forth opposite such Purchaser’s name in column (3) on the
Schedule of Purchasers (“Securities”).

 

b)
Closing. The closing (the “Closing”) of the purchase of the Securities by the Purchasers shall occur
at 3539 US HWY 271, Tyler, Texas 75708. The date and time of the Closing (the “Closing Date”) shall be 10:00
a.m., Pacific Standard Time, on the first (1st) Business Day (as defined below) on which the conditions to the Closing set forth
in Sections 5 and 6 below are satisfied or waived (or such other date as is mutually agreed to by the Seller(s) and the Purchaser).
As used herein “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required by law to remain closed.

 

c)
Purchase Price. The aggregate purchase price for the Securities to be purchased by the Purchaser shall be the amount set
forth opposite such Purchaser’s name in column (3) on the Schedule of Purchasers. The purchase price for the Securities
will be US $1,250,000 (the “Purchase Price”) in cash and payable as set forth on the Schedule of Purchasers.

 

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d)
Form of Payment. On the Closing Date, (i) the Purchaser shall pay the Purchase Price by wire transfer of immediately available
funds and (ii) the Seller(s) shall deliver to the Purchaser stock certificates with Stock Powers duly executed to effect the transfer
of the Securities to the Purchaser or its designee.

 

2)
PURCHASER’S REPRESENTATIONS AND WARRANTIES.

 

The
Purchaser represents and warrants to the Seller(s) that, as of the date hereof and as of the Closing Date:

 

a)
Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations
hereunder and thereunder.

 

b)
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Purchaser
and shall constitute the legal, valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance
with its respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.

 

c)
No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the consummation by the Purchaser
of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of the
Purchaser, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which the Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws) applicable to the Purchaser, except in the case of clauses (ii) and (iii)
above, for such conflicts, defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of the Purchaser to perform its obligations hereunder.

 

d)
Purchaser Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is (i) an
“Accredited Investor” as defined in Rule 501(a) under the Securities Act.

 

e)
Purchasers Investment Experience. The Purchaser, together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

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f)
No General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television
or radio or presented ay any seminar or any other general solicitation or general advertisement.

 

The
Company acknowledges and agrees that the representations contained in this Section 2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transactions contemplated hereby.

 

3)
REPRESENTATIONS AND WARRANTIES OF THE SELLER(S) AND COMPANY.

 

The
Seller(s) and Company represent and warrant, joint and severally, to the Purchasers that, as of the date hereof and as of the
Closing Date:

 

a) Organization
and Qualification. The Company is an entity duly organized and validly existing and in good standing under the laws of
the jurisdiction in which it is formed, and has the requisite power and authority to own its property and to carry on
business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign
entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the
business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be
in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this
Agreement, “Material Adverse Effect” means any material adverse effect (i.e., negative impact; broadly
construed) on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial
or otherwise) or prospects of the Company, individually or taken as a whole, (ii) the transactions contemplated hereby or in
any of the other Transaction Documents or any other agreements or instruments to be entered into in connection herewith or
therewith or (iii) the authority or ability of the Company to perform any of its obligations under any of the Transaction
Documents (as defined below). Other than the Persons (as defined below) set forth on Schedule 3(a), the Company has no
Subsidiaries. “Subsidiaries” means any Person in which the Company, directly or indirectly, (I) owns any
of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or
any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to
herein as a “Subsidiary.”

 

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b)
Authorization; Enforcement; Validity. The Seller(s) and the Company have the requisite power and authority to enter into
and perform their obligations under this Agreement and the other Transaction Documents in accordance with the terms hereof and
thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Seller(s) and the Company, and
the consummation by the Seller(s) and the Company of the transactions contemplated hereby and thereby have been duly consented
to by the Company’s board of directors or other governing body, as applicable, and no further filing, consent or authorization
is required by the Company, its board of directors or its stockholders or other governing body. This Agreement has been, and the
other Transaction Documents to which it is a party will be prior to the Closing, duly executed and delivered by the Seller(s)
and the Company, and constitutes the legal, valid and binding obligations of the Seller(s) and Company, enforceable against each
in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited
by federal or state securities law. “Transaction Documents” means, collectively, this Agreement and each of
the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions
contemplated hereby and thereby, as may be amended from time to time.

 

c)
Original Issuance of Securities. The Securities when originally issued were duly authorized, validly issued, fully paid
and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes,
rights of first refusal, encumbrances, security interests and other encumbrances (collectively “Liens”) with
respect to the issuance thereof. The original issuance by the Company of the Securities was effected pursuant to an exemption
from the registration requirements of Section 5 of the Securities Act.

 

d)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Charter (as defined
below) (including, without limitation, any certificate of designations contained therein), Bylaws (as defined below), certificate
of incorporation, memorandum of association, articles of association, bylaws or other organizational documents of the Company,
or any capital stock or other securities of the Company, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities
laws and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or by which
any property or asset of the Company is bound or affected.

 

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e) Consents.
The Company is not required to obtain any consent from, authorization or order of, or make any filing or registration with
any Governmental Entity (as defined below) or any regulatory or self-regulatory agency or any other Person in order for it to
execute, deliver or perform any of its respective obligations under or contemplated by the Transaction Documents, in each
case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to
the Closing Date. “Governmental Entity” means any nation, state, county, city, town, village, district, or
other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or
quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and
any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or
instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing.

 

f)
Acknowledgment Regarding Purchaser’s Purchase of Securities. The Seller(s) and Company acknowledge and agree that
each Purchaser is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and
the transactions contemplated hereby and thereby and that no Purchaser is (i) an officer or director of the Company, (ii) an “affiliate”
(as defined in Rule 144 promulgated under the Securities Act (or successor rule thereto) (collectively, “Rule 144”))
of the Company, or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares representing
the Securities (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)). The Seller(s) and Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Seller(s) or Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and any advice given by a Purchaser or any of its representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely incidental to such Purchaser’s purchase of the
Securities. The Seller(s) and Company further represent to the Purchaser that the Company’s decision to enter into the Transaction
Documents to which it is a party has been based solely on the independent evaluation by the Seller(s), Company and their respective
representatives.

 

g)
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Seller(s) or Company to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 3(g) that may be due in connection
with the transactions contemplated by the Transaction Documents.

 

h)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison
pill (including, without limitation, any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover provision under its organizational documents or the laws of the jurisdiction of its incorporation or otherwise which
is or could become applicable to any Purchaser as a result of the transactions contemplated by this Agreement, including, without
limitation, any Purchaser’s ownership of the Securities. The Company and its board of directors have taken all necessary
action, if any, in order to render inapplicable any stockholder rights agreement or similar arrangement relating to accumulations
of beneficial ownership of the Securities or a change in control of the Company.

 

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i)
Financial Statements. The Company’s fiscal year end is January 1. The Company has previously delivered to Purchaser
the following: audited balance sheet and statements of income, and cash flow of the Company as of and for the last three (3) fiscal
years (individually, “Financial Statement” and collectively the “Financial Statements”).
The Financial Statements were prepared in accordance with United States Generally Accepted Accounting Principles (“U.S.
GAAP”) applied on a consistent basis throughout the periods covered thereby, present fairly and accurately the financial
condition of the Company as of such dates and the results of operations for such periods and are correct and complete, and are
consistent with the books and records of the Company. The Company is not currently contemplating to amend or restate any of the
Financial Statements (including, without limitation, any notes or any letter of the independent accountants of the Company with
respect thereto), nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate
any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP. The
Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the
Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

 

j)
Absence of Certain Changes. Since the date of the Company’s most recent Financial Statement, there has been no Material
Adverse Change and no material adverse development in the business, assets, liabilities, properties, operations (including results
thereof), condition (financial or otherwise) or prospects of the Company. Since the date of the Company’s most recent Financial
Statement, the Company has not (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside
of the ordinary course of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary
course of business. The Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy,
insolvency, reorganization, receivership, liquidation or winding up, nor does the Company have any knowledge or reason to believe
that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact
which would reasonably lead a creditor to do so. The Company is not as of the date hereof, and after giving effect to the transactions
contemplated hereby to occur at the Closing, will not be Insolvent (as defined below). For purposes of this Section, “Insolvent”
means, (i) with respect to the Company, on a consolidated basis, (A) the present fair saleable value of the Company’s assets
is less than the amount required to pay the Company’s total Indebtedness (as defined below), (B) the Company is unable to
pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured
or (C) the Company intends to incur or believe that they will incur debts that would be beyond their ability to pay as such debts
mature; and (ii) with respect to the Company (A) the present fair saleable value of the Company’s assets is less than the
amount required to pay its respective total Indebtedness, (B) the Company is unable to pay its respective debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company intends to
incur or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature. The Company
has not engaged in any business or in any transaction, and is not about to engage in any business or in any transaction, for which
the Company’s remaining assets constitute unreasonably small capital with which to conduct the business in which it is engaged
as such business is now conducted and is proposed to be conducted.

 

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k)
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has
occurred or exists, or is reasonably expected to exist or occur with respect to the Seller(s), Company or any of their respective
businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise),
that (i) could have a Material Adverse Effect on the Purchaser’s purchase hereunder or (ii) could have a Material Adverse
Effect, generally.

 

l)
Conduct of Business; Regulatory Permits. The Company is not in violation of any term of or in default under its organizational
documents, any certificate of designations, preferences or rights of any other outstanding series of preferred stock of the Company
or Bylaws or its organizational charter, certificate of formation, memorandum of association, articles of association, certificate
of incorporation or articles of incorporation or bylaws, respectively. The Company is not in violation of any judgment, decree
or order or any statute, ordinance, rule or regulation applicable to the Company, and the Company will not conduct its business
in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate,
have a Material Adverse Effect. The Company possesses all certificates, authorizations and permits issued by the appropriate regulatory
authorities necessary to conduct its business, except where the failure to possess such certificates, authorizations or permits
would not have, individually or in the aggregate, a Material Adverse Effect, and the Company has not received any notice of proceedings
relating to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment,
judgment, injunction, order or decree binding upon the Company or to which the Company is a party which has or would reasonably
be expected to have the effect of prohibiting or materially impairing any business practice of the Company, any acquisition of
property by the Company or the conduct of business by the Company as currently conducted other than such effects, individually
or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse Effect on the Company.

 

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m)
Foreign Corrupt Practices. Neither the Seller(s), Company, or any director, officer, agent, employee, nor any other person
acting for or on behalf of the foregoing (individually and collectively, a “Company Affiliate”) have violated
the U.S. Foreign Corrupt Practices Act (the “FCPA”) or any other applicable anti-bribery or anti-corruption
laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given,
promised to give, or authorized the giving of anything of value, to any officer, employee or any other person acting in an official
capacity for any Governmental Entity to any political party or official thereof or to any candidate for political office (individually
and collectively, a “Government Official”) or to any person under circumstances where such Company Affiliate
knew or was aware of a high probability that all or a portion of such money or thing of value would be offered, given or promised,
directly or indirectly, to any Government Official, for the purpose of:

 

i)
(A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official
to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government
Official to influence or affect any act or decision of any Governmental Entity, or

 

ii)
assisting the Company in obtaining or retaining business for or with, or directing business to, the Company.

 

n)
Sarbanes-Oxley Act. The Company is in compliance with, or is exempt from, any and all applicable requirements of the Sarbanes-Oxley
Act of 2002, as amended, and any and all applicable rules and regulations promulgated thereunder.

 

o)
Transactions with Affiliates. Except as set forth on Schedule 3(o) attached hereto, no current or former employee,
partner, director, officer or stockholder (direct or indirect) of the Company, or any associate, or, to the knowledge of the Company,
any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of any of the foregoing, is
presently, or has ever been, (i) a party to any transaction with the Company (including any contract, agreement or other arrangement
providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring payments to,
any such director, officer or stockholder or such associate or affiliate or relative (other than for ordinary course services
as employees, officers or directors of the Company)) or (ii) the direct or indirect owner of an interest in any corporation, firm,
association or business organization which is a competitor, supplier or customer of the Company, nor does any such Person receive
income from any source other than the Company which relates to the business of the Company or should properly accrue to the Company.
No employee, officer, stockholder or director of the Company or member of his or her immediate family is indebted to the Company,
as the case may be, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to any of them, other
than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf of the Company,
and (iii) for other standard employee benefits made generally available to all employees or executives (including stock option
agreements outstanding under any stock option plan approved by the Board of Directors of the Company).

 

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p)
Equity Capitalization.

 

(1)
Definitions:

 

(a)
“Common Stock” means (x) the Company’s shares of common stock, no par value per share, and (y) any capital
stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common
stock.

 

(2)
Authorized and Outstanding Capital Stock. As of the Effective Date hereof, the authorized capital stock of the Company
consists of 1,000 shares of Common Stock, of which, 650 are issued and outstanding.

 

(3)
Valid Issuance; Available Shares; Affiliates. All of such outstanding shares are duly authorized and have been validly
issued and are fully paid and non-assessable. Schedule 3(p)(iii) sets forth the number of shares of Common Stock that are
(A) reserved for issuance pursuant to warrants, options, convertible securities or other similar instruments and (B) that are,
as of the date hereof, owned by Persons who are “affiliates” (as defined in Rule 405 of the Securities Act
and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s issued
and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates”
for purposes of federal securities laws) of the Company. To the Company’s knowledge, no Person owns 10% or more of the Company’s
issued and outstanding shares of Common Stock (calculated based on the assumption that all convertible securities, whether or
not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations
on exercise or conversion (including “blockers”) contained therein without conceding that such identified Person is
a 10% stockholder for purposes of federal securities laws).

 

(4) Existing
Securities; Obligations. Except as disclosed on Schedule 3(p)(iii), (A) none of the Company’s
shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted
by the Company; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares,
interests or capital stock of the Company, or contracts, commitments, understandings or arrangements by which the Company is
or may become bound to issue additional shares, interests or capital stock of the Company or options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or
exercisable or exchangeable for, any shares, interests or capital stock of the Company; (C) there are no agreements or
arrangements under which the Company is obligated to register the sale of any of their securities under the Securities Act;
(D) there are no outstanding securities or instruments of the Company which contain any redemption or similar provisions, and
there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a
security of the Company; (E) there are no securities or instruments containing anti-dilution or similar provisions that will
be triggered by the issuance of the securities; and (F) the Company does not have any stock appreciation rights or
“phantom stock” plans or agreements or any similar plan or agreement.

 

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(5)
Organizational Documents. The Seller(s) and the Company have furnished to the Purchasers true, correct and complete copies
of the Company’s organizational document, as amended and as in effect on the date hereof (the “Charter”),
and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms
of all convertible securities and the material rights of the holders thereof in respect thereto.

 

q)
Indebtedness and Other Contracts. The Company, (i) except as disclosed on Schedule 3(q), does not have any outstanding
debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness
of the Company or by which the Company is or may become bound, (ii) is a party to any contract, agreement or instrument, the violation
of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected
to result in a Material Adverse Effect, (iii) has any financing statements securing obligations in any amounts filed in connection
with the Company; (iv) is in violation of any term of, or in default under, any contract, agreement or instrument relating to
any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material
Adverse Effect, or (v) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which,
in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. For purposes of this Agreement:
(x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all
obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation,
“capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business
consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and
other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations
so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising
under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property
or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the Seller(s) or bank under
such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under
any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified
as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or
become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations
of others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent Obligation” means,
as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness,
lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability,
or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole
or in part) against loss with respect thereto. For purposes of this Agreement, “Person” means an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other
entity and any Governmental Entity or any department or agency thereof.

 

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r)
Litigation. There is no action, suit, arbitration, proceeding, inquiry or investigation before or by any court, public
board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company and Seller(s),
threatened against or affecting the Seller(s), the Company, the Securities or any of the Company’s officers or directors,
whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule 3(r).
No director, officer or employee of the Company has willfully violated 18 U.S.C. §1519 or engaged in spoliation of evidence
in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the knowledge of the
Company and Seller(s), there is not pending or contemplated, any investigation by the U.S Securities and Exchange Commission (“SEC”)
involving the Seller(s), Company, or any current or former director or officer of the Company. The SEC has not issued any stop
order or other order suspending the effectiveness of any registration statement filed by the Company under the Securities Act
or the Exchange Act. After reasonable inquiry of its employees, the Company is not aware of any fact which might result in or
form the basis for any such action, suit, arbitration, investigation, inquiry or other proceeding. The Company is not subject
to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity.

 

s)
Insurance. The Company is insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company is engaged.
The Company has not been refused any insurance coverage sought or applied for, and the Company has no any reason to believe that
it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

t)
Employee Relations. The Company is not a party to any collective bargaining agreement or employs any member of a union.
The Company believes that its relations with its employees is good. No executive officer or other key employee of the Company
has notified the Company that such officer intends to leave the Company or otherwise terminate such officer’s employment
with the Company. No executive officer or other key employee of the Company is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement,
or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or
other key employee (as the case may be) does not subject the Company to any liability with respect to any of the foregoing matters.
The Company is in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and
employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance
would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

    	 	 	11

    	 

    

 

u)
Title.

 

i)
Real Property. The Company holds good title to all real property, leases in real property, facilities or other interests
in real property owned or held by the Company (the “Real Property”) owned by the Company (as applicable). The
Real Property is free and clear of all Liens and is not subject to any rights of way, building use restrictions, exceptions, variances,
reservations, or limitations of any nature except for (a) Liens for current taxes not yet due and (b) zoning laws and other land
use restrictions that do not impair the present or anticipated use of the property subject thereto. Any Real Property held under
lease by the Company is held by it under valid, subsisting and enforceable leases with such exceptions as are not material and
do not interfere with the use made and proposed to be made of such property and buildings by the Company.

 

ii)
Fixtures and Equipment. The Company (as applicable) has good title to, or a valid leasehold interest in, the tangible personal
property, equipment, improvements, fixtures, and other personal property and appurtenances that are used by the Company in connection
with the conduct of its business (the “Fixtures and Equipment”). The Fixtures and Equipment are structurally
sound, are in good operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance
or repairs except for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s business
(as applicable) in the manner as conducted prior to the Closing. The Company owns all of its Fixtures and Equipment free and clear
of all Liens except for (a) liens for current taxes not yet due and (b) zoning laws and other land use restrictions that do not
impair the present or anticipated use of the property subject thereto.

 

v)
Intellectual Property Rights. The Company owns or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and
registrations therefor (“Intellectual Property Rights”) necessary to conduct its business as now conducted
and presently proposed to be conducted. Each of patents owned by the Company is listed on Schedule 3(v)(i). Except as set
forth in Schedule 3(v)(ii), none of the Company’s Intellectual Property Rights have expired or terminated or have
been abandoned or are expected to expire or terminate or are expected to be abandoned, within three (3) years from the date of
this Agreement. The Company does not have any knowledge of any infringement by the Company of Intellectual Property Rights of
others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company, being threatened, against
the Company regarding its Intellectual Property Rights. The Company is not aware of any facts or circumstances which might give
rise to any of the foregoing infringements or claims, actions or proceedings. The Company has taken reasonable security measures
to protect the secrecy, confidentiality and value of all of its Intellectual Property Rights.

 

    	 	 	12

    	 

    

 

w)
Environmental Laws.

 

i)
The Company (A) is in compliance with any and all Environmental Laws (as defined below), (B) has received all permits, licenses
or other approvals required of it under applicable Environmental Laws to conduct its businesses and (C) is in compliance with
all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the
failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term
“Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of
human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

ii)
No Hazardous Materials:

 

(1)
have been disposed of or otherwise released from any Real Property of the Company in violation of any Environmental Laws; or

 

(2)
are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation
of any Environmental Laws. No prior use by the Company of any Real Property has occurred that violates any Environmental Laws,
which violation would have a material adverse effect on the business of the Company.

 

iii)
The Company does not know of any other person who or entity which has stored, treated, recycled, disposed of or otherwise located
on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated biphenyls.

 

iv)
No Real Property is on any federal or state “Superfund” list or Liability Information System (“CERCLIS”)
list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related
Liens.

 

    	 	 	13

    	 

    

 

aa)
Tax Status. The Company (i) has timely made or filed all foreign, federal and state income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other governmental assessments
and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those
being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any
such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined in
Section 1297 of the Internal Revenue Code of 1986, as amended (the “Code”). The net operating loss carryforwards
(“NOLs”) for United States federal income tax purposes of the Company shall not be adversely effected by the
transactions contemplated hereby. The transactions contemplated hereby do not constitute an “ownership change” within
the meaning of Section 382 of the Code, thereby preserving the Company’s ability to utilize such NOLs.

 

bb)
Investment Company Status. The Company is not an “investment company,” an affiliate of an “investment
company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company
Act of 1940, as amended.

 

cc)
U.S. Real Property Holding Corporation. The Company is not, or has never been a U.S. Real Property Holding Corporation
within the meaning of Section 897 of the Code, and the Company shall so certify upon any Purchaser’s request.

 

dd)
Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required
to be paid in connection with the sale and transfer of the Securities to be sold to the Purchaser hereunder will be, or will have
been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

ee)
Bank Holding Company Act. The Company is not subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”)
and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither
the Company nor any of its affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares
of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject
to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its affiliates exercises a controlling influence
over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

ff)
Illegal or Unauthorized Payments; Political Contributions. Neither the Seller(s), nor the Company, to the best of the Company’s
knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other
representatives of the Company or any other business entity or enterprise with which the Seller(s) or Company is or has been affiliated
or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services,
whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any political organization,
or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving
the direct or indirect use of funds of the Company.

 

    	 	 	14

    	 

    

 

gg) Money
Laundering. The Seller(s) and the Company are in compliance with, and have not previously violated, the USA Patriot Act
of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without
limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign
Assets Control, including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg.
49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

hh)
Management. Except as set forth in Schedule 3(hh) hereto, during the past five (5) year period, no current or former
officer or director or, to the knowledge of the Company, no current ten percent (10%) or greater stockholder of the Company has
been the subject of:

 

i)
a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal
agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two (2) years
before the filing of such petition or such appointment, or any corporation or business association of which such person was an
executive officer at or within two (2) years before the time of the filing of such petition or such appointment;

 

ii)
a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do
not relate to driving while intoxicated or driving under the influence);

 

iii)
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining any such person from, or otherwise limiting, the following activities:

 

(1)
acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker,
leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated
person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated
person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in
or continuing any conduct or practice in connection with such activity;

 

(2)
engaging in any particular type of business practice; or

 

    	 	 	15

    	 

    

 

(3)
engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation
of securities laws or commodities laws;

 

iv)
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise
limiting for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub-paragraph,
or to be associated with persons engaged in any such activity;

 

v)
a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently
reversed, suspended or vacated; or

 

vi)
a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated
any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or
vacated.

 

ii)
No Disagreements with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents.

 

jj)
No Additional Agreements. The Company does not have any agreement or understanding with any Purchasers with respect to
the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

 

kk)
Public Utility Holding Act. The Company is not a “holding company,” or an “affiliate” of a “holding
company,” as such terms are defined in the Public Utility Holding Act of 2005.

 

ll)
Federal Power Act. The Company is not subject to regulation as a “public utility” under the Federal Power Act,
as amended.

 

mm)
Registration Rights. No holder of Securities of the Company has rights to the registration of any securities of the Company.

 

    	 	 	16

    	 

    

 

nn)
Disclosure. The Seller(s) and Company understand and confirm that the Purchaser will rely on the foregoing representations
in effecting transactions in Securities of the Company. All disclosure provided to the Purchaser regarding the Seller(s) and the
Company, their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or
on behalf of the Seller(s) and the Company is true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Seller(s)
and the Company to the Purchaser pursuant to or in connection with this Agreement and the other Transaction Documents, taken as
a whole, will be true and correct in all material respects as of the date on which such information is so provided and will not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading. All financial projections and forecasts
that have been prepared by or on behalf of the Seller(s) and the Company and made available to the Purchaser have been prepared
in good faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered
to each Purchaser, the Company’s best estimate of future financial performance (it being recognized that such financial
projections or forecasts are not to be viewed as facts and that the actual results during the period or periods covered by any
such financial projections or forecasts may differ from the projected or forecasted results). The Seller(s) and Company acknowledge
and agree that the Purchaser does not make or has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 2.

 

oo)
No General Solicitation. Neither the Seller(s), the Company nor any person acting on behalf of the Seller(s) or Company
has offered or sold any of the Securities by any form of general solicitation or general advertising.

 

pp)
Material Contracts; Customers; Suppliers.

 

i)
Schedule 3(ss)(i) attached hereto lists and briefly describes all Material Contracts as of the Closing Date. As used herein,
the term “Material Contract” shall mean a contract, agreement, instrument, arrangement, understanding, lease,
or rental agreement, whether written or verbal, to which the Company is a party, which (i) provides for aggregate payments by
or to the Company of U.S. $25,000.00 or more, or (ii) by its terms extends for a period ending (or is not otherwise terminable
for a period of) more than one year after the Closing Date. To the best knowledge of the Seller(s) and Company, each such contract
is enforceable pursuant to its terms and neither the Company nor any of the counter-parties to any such contract is in material
breach or violation of, or in default under, any provision of such Material Contracts. Except as set forth on Schedule 3(ss)(i)
with respect to any specific Material Contract, the Closing of the transactions contemplated by this Agreement do not require
prior notice to or consent from the counterparty to any Material Contract.

 

ii)
Schedule 3(ss)(ii) sets forth a list of customers of the Company, who have generated at least U.S. $25,000.00 or more in
sales for the Company during each of the fiscal years ending 2016 and 2017. Unless otherwise listed under Material Contracts in
Schedule 3(ss)(i), these customers are not subject to any contract with the Company that currently extends more than one
(1) year after the Closing Date.

 

    	 	 	17

    	 

    

 

iii)
Schedule 3(ss)(iii) sets forth a list of vendors or suppliers to the Company, based on the value of purchases in excess
of U.S. $25,000.00 or more made from such suppliers during the 2016 and 2017 fiscal years. Unless otherwise listed under Material
Contracts in Schedule 3(ss)(i), these vendors and suppliers are not subject to any contract with the Company that currently
extends more than one (1) year after the Closing Date.

 

qq)
Employee Benefits. Schedule 3(qq) lists each non-qualified deferred compensation plan, qualified defined contribution
retirement plan, qualified defined benefit retirement plan or other material fringe benefit plan or program that the Company maintains
or to which the Company contributes with regard to any individual employed with the Company (“Employee Benefit Plans”).
With respect to any Employee Benefit Plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974 (“ERISA”), which is subject to ERISA and which is sponsored, maintained or contributed to, or has been
sponsored, maintained or contributed to, since December 31, 2013, by the Company or any person deemed to be affiliated or aggregated
with the Company under Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986 (the “Code”) or
Section 4001(a)(14) of ERISA: (a) no unsatisfied withdrawal liability or obligation, within the meaning of Section 4201 of ERISA,
has been incurred, (b) no unsatisfied liability or obligation to the Pension Benefit Guaranty Corporation has been incurred by
the Corporation or any ERISA Affiliate, (c) no accumulated funding deficiency, whether or not waived, within the meaning of Section
302 of ERISA or Section 412 of the Code has been incurred, and (d) all contributions (including installments) to such plan required
by Section 302 of ERISA and Section 412 of the Code have been timely made. With respect to any Employee Benefit Plan, such plan
has been funded and maintained in compliance with all laws applicable thereto and the requirements of such plan’s governing
documents.

 

rr)
Receivables. The Company’s receivables, including all contracts in transit, manufacturer’s warranty receivables,
notes receivable, accounts receivable, trade account receivables, and insurance proceeds receivable (“Receivables”)
relate to the business of the Company, represent bona fide transactions, arose in the Company’s ordinary course of business
and are properly reflected on the Company’s books and records. No customer or supplier of the Company is entitled to any
payment terms other than terms in the Company’s ordinary course of business. Except as set forth on Schedule 3(qq),
all of the Receivables are good and collectible receivables, are current and be collected in accordance with past practice and
the terms of such Receivables (and in any event within six (6) months following the Closing Date) without any right to setoff
or counterclaim.

 

    	 	 	18

    	 

    

 

4)
REPRESENTATIONS AND WARRANTIES OF SELLER(S).

 

a)
Ownership of Securities and Capacity to Sell. Each Seller identified on Schedule 4(a) beneficially and of record
owns the amount and type of Securities set forth next to each respective Seller’s name, and each Seller has the full legal
right, power, and authority to sell, convey, assign, and transfer such Seller’s respective Securities to the Purchaser pursuant
to this Agreement free and clear of any Lien, claim, charge, encumbrance, or restriction whatsoever, so that upon delivery of
such Securities to the Purchaser, good, and valid title to such Securities will vest in Purchaser free and clear of any lien,
claim, charge, encumbrance, or restriction whatsoever.

 

b)
Authorization. Each Seller that is a natural person has full right, capacity and authority to enter into this Agreement
and the Transaction Documents (defined below) and to sell, assign, transfer and deliver the Securities to be sold by such Seller
hereunder and to perform its other obligations under this Agreement and each Transaction Document to which Seller is a party.
Each Seller that is a corporation or other legal person, has full corporate or partnership right, power and authority to enter
into this Agreement and the Transaction Documents and to consummate the transactions contemplated hereby, and all corporate resolutions
required to authorize such Sellers to consummate the transactions contemplated hereby have been now or will, as of the Closing
Date, have been adopted. Each Seller that is the trustee of a trust or executor of an estate has been duly designated as trustee
under the trust instruments or as fiduciary or power of attorney for such estate, and is properly authorized under such documents
or instruments to enter into this Agreement and the Transaction Documents and to consummate the transactions contemplated hereby
on behalf of each such Seller. Upon proper execution and delivery by such Seller, this Agreement constitutes the valid and binding
obligation of the Sellers, enforceable in accordance with its terms, except as the enforceability hereof may be subject to or
limited by applicable bankruptcy, insolvency, reorganization, or other similar laws affecting creditors’ rights generally
and to general principles of equity being applied at the discretion of the courts.

 

c)
Consents and Approvals. Neither the execution and delivery by any Seller of this Agreement, nor the consummation by any
Seller of the transactions contemplated hereby, nor compliance by any Seller with any of the provisions hereof will: (i) conflict
with or result in a breach of any provision of the Charter or Bylaws or other governing document of such Seller; (ii) violate
any order, writ, injunction, decree, judgment, ruling, law, rule or regulation of any court or governmental authority, applicable
to such Seller, or any of their respective properties or assets; (iii) require any consent, approval, or authorization of, or
notice to, or declaration, filing, or registration with, any governmental or regulatory authority; or (iv) violate or conflict
with, or result in a breach of, or constitute a default under, or require consents from any other party to, or result in a right
of termination or cancellation of, or result in acceleration of any right or creation of any lien under, any note, bond, mortgage,
indenture, deed of trust, license, franchise, permit, lease, contract, agreement, or other instrument or commitment or obligation
relating to which any Seller is or was a party or by which they or any of their respective properties or assets may be or was
bound or affected. The Securities constitute all of the Sellers’ equity ownership interests in the Company.

 

    	 	 	19

    	 

    

 

5)
PRE-CLOSING COVENANTS.

 

a)
At all times during the period between the execution of this Agreement and the Closing, each Seller shall or shall cause the Company
and the Company shall do (or refrain from doing) the following:

 

i)
continue to operate the Company’s business in the same manner as the business was operated prior to the date of this Agreement,
and the Sellers who are employees of the Company shall devote One Hundred Percent (100%) of their working time and attention to
the conduct of the business;

 

ii)
not start any new business, or accept or undertake any employment or provide any services related to any business of any other
person or entity (other than in the Company’s ordinary course of business);

 

iii)
not remove, sell or otherwise dispose of any assets, property or equipment of any nature of the Company used in the business,
except for the sale of its products, inventory and equipment and the payment of payables and other obligations in the ordinary
course of business consistent with past custom and practice;

 

iv)
not allow any unlawful activity to be conducted on or about the premises upon which the business is conducted or at any other
place where business activity is being conducted by the Company;

 

v)
maintain its general liability and property insurance carried as of the date hereof;

 

vi)
not change, alter or revise its employee manual (if any) for the employees of the Company;

 

vii)
not purchase any equipment out of the ordinary course of business consistent with past custom and practice;

 

viii)
not grant any options or warrants in Common Stock of the Company, nor issue any additional Common Stock or Preferred Stock of
the Company.

 

ix)
not make any distributions of cash, property or other dividends to the Sellers, except the Company may pay for salaries, expense
reimbursements and other benefits (including payments pursuant to the Company’s 401(k) Plan to Seller(s) who are employees
of the Company;

 

x)
pay the attorneys and accountants or other consultants fees for work in connection with this Agreement and the related transactions
described herein which are performed prior to the execution of this Agreement, up to a maximum of $3,000.00 in legal fees (work
following Closing shall be the responsibility of the Company);

 

    	 	 	20

    	 

    

 

xi)
continue to make payments to third parties in the normal course of business consistent with past custom and practice, including,
without limitation, to suppliers, on leases, and the payment of employee payroll type taxes and estimated or final payments with
respect to federal and state income or franchise and sales taxes, including establishing an escrow for taxes due with respect
to periods prior to the Closing; and,

 

xii)
Pay off or cancel any inter-company loans or obligations owed by the Company to the Seller(s) or any affiliate of the Seller(s)
or any affiliate of the Company.

 

xiii)
pay off or receive written confirmation that the $976,000 in accounts payable owed to Tyler Welders Supply, Inc. has been cancelled
and provide such written confirmation to the Buyer.

 

b)
None of the covenants to take actions or not take actions set forth in this Section 5 shall survive Closing.

 

6)
COVENANTS.

 

a)
Best Efforts. Each Purchaser shall use its best efforts to timely satisfy each of the covenants hereunder and conditions
to be satisfied by it as provided in Section 7 of this Agreement. The Company and Seller(s) shall use their best efforts to timely
satisfy each of the Pre-Closing Covenants, the covenants hereunder and conditions to be satisfied by it as provided in Section
8 of this Agreement.

 

b)
Blue Sky. The Seller(s) shall, on or before the Closing Date, take such action as the Seller(s) shall reasonably determine
is necessary in order to obtain an exemption for, or to, qualify the Securities for sale to the Purchaser at the Closing pursuant
to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to
obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Purchasers on or prior
to the Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make
all filings and reports relating to the offer and sale of the Securities required under all applicable securities laws (including,
without limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Seller(s)
shall comply with all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to
the offering and sale of the Securities to the Purchaser.

 

c)
Passive Foreign Investment Company. The Company shall conduct its business in such a manner as will ensure that the Company
will not be deemed to constitute a Passive Foreign Investment Company within the meaning of Section 1297 of the Code.

 

    	 	 	21

    	 

    

 

7)
CONDITIONS TO THE SELLER(S) OBLIGATION TO SELL.

 

a)
The obligation of the Seller(s) hereunder to sell the Securities to the Purchaser at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Seller(s)’
sole benefit and may be waived by the Seller(s) at any time in its sole discretion by providing each Purchaser with prior written
notice thereof:

 

i)
Such Purchaser shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the
Seller(s) and the Company, as applicable.

 

ii)
Such Purchaser shall have delivered to the Seller(s) the Purchase Price for the Securities being purchased by such Purchaser at
the Closing by wire transfer of immediately available funds.

 

iii)
The representations and warranties of such Purchaser shall be true and correct in all material respects as of the date when made
and as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of
a specific date, which shall be true and correct as of such specific date, and except for representations and warranties that
are qualified by materiality, in which case such representations and warranties shall be true and correct in all respects), and
such Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by such Purchaser at or prior to the Closing Date.

 

8)
CONDITIONS TO PURCHASER’S OBLIGATION TO
PURCHASE.

 

a)
The obligation of the Purchaser hereunder to purchase the Securities at the Closing is subject to the satisfaction, at or before
the Closing Date, of each of the following conditions, provided that these conditions are for the Purchaser’s sole benefit
and may be waived by the Purchaser at any time in its sole discretion by providing the Seller(s) or the Company (as applicable)
with prior written notice thereof:

 

i)
The Seller(s) and Company shall have duly executed and delivered to such Purchaser each of the Transaction Documents to which
it is a party and the Seller(s) shall have duly executed and delivered to such Purchaser the aggregate number of Securities set
forth on the Purchase Schedule, being purchased by the Purchaser at the Closing pursuant to this Agreement.

 

ii)
Such Purchaser shall have received the opinion of the Company’s Attorney, the Company’s counsel, dated as of the Closing
Date, in form and substance reasonably acceptable to such Purchaser.

 

iii)
The Company shall have delivered to such Purchaser a certificate evidencing the formation and good standing of the Company in
such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of
formation as of a date within ten (10) business days of the Closing Date.

 

    	 	 	22

    	 

    

 

iv)
The Company shall have delivered to such Purchaser a certificate evidencing the Company’s qualification as a foreign corporation
and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company conducts business
and is required to so qualify, as of a date within ten (10) business days of the Closing Date.

 

v)
The Company shall have delivered to such Purchaser a certified copy of its Charter (including any certificate of designations)
as certified by the Texas Secretary of State within ten (10) business days of the Closing Date.

 

vi)
The Company shall have delivered to such Purchaser a certificate, in form and substance reasonably acceptable to such Purchaser,
executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b)
as adopted by the Company’s board of directors in form and substance reasonably acceptable to such Purchaser, (ii) the Charter
of the Company and (iii) the Bylaws of the Company, each as in effect at the Closing.

 

vii)
Each and every representation and warranty of the Seller(s) and the Company shall be true and correct as of the date when made
and true and correct in all material respects as of the Closing Date as though originally made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such specific date, and except for representations
and warranties that are qualified by materiality, in which case such representations and warranties shall be true and correct
in all respects) and the Seller(s) and the Company shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions required to be performed, satisfied or complied with by the Seller(s) and Company at or prior to the
Closing Date. Such Purchaser shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated
as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Purchaser
in form and substance reasonably acceptable to such Purchaser.

 

viii)
The Seller(s) shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for the
sale of the Securities, including without limitation, if any.

 

ix)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

    	 	 	23

    	 

    

 

x)
Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or
result in a Material Adverse Effect.

 

xi)
Purchaser shall have obtained cash proceeds from a financing transaction sufficient to pay the Purchase Price to Seller(s).

 

xii)
The Company shall have delivered to such Purchaser such other documents, instruments or certificates relating to the transactions
contemplated by this Agreement as such Purchaser or its counsel may reasonably request.

 

9)
RESERVED.

 

10)
TERMINATION.

 

a)
This Agreement may be terminated at any time prior to the Closing:

 

i)
By mutual consent of Purchaser and Seller(s); or

 

ii)
By either the Seller(s), or Purchaser if, without fault of the terminating party, the Closing shall not have occurred by the date
for such Closing, which date may be extended only by mutual agreement of Purchaser and Seller(s).

 

iii)
By Seller(s) if Purchaser is unable to obtain the required financing or before Closing.

 

iv)
The date on which this Agreement is terminated pursuant to this Section is herein referred to as the “Termination Date.”

 

b)
Effect of Termination. Except for the obligations contained in Section 10(c) and Section 10(d) below, all obligations of
the parties hereto under this Agreement shall terminate as of the Termination Date, and there shall be no liability, except liability
for any breach of this Agreement prior to such termination, of any party to another party.

 

c)
Expenses on Termination. Each party hereto shall bear its own costs and expenses incurred by it in connection with the
termination of this Agreement in the event this Agreement is terminated.

 

d)
Confidentiality. Upon termination of this Agreement without Closing, the Purchaser, Seller(s) and Company will, and will
cause each of their respective affiliates, and their directors, officers, employees, agents, representatives and similarly situated
persons to: (a) treat and hold as confidential, and not use or disclose, all of the information concerning the Seller(s), the
Company and the business, the negotiation or existence and terms of this Agreement (“Confidential Information”),
and (b) deliver promptly to the Company or destroy, at the option and request of Seller(s), all tangible embodiments (and all
copies) of the Confidential Information which are in such Purchaser’s or Purchaser affiliated persons’ possession.
If the Purchaser is ever requested or required (by oral question or request for information or documents) to disclose any Confidential
Information, such Purchaser will notify the Seller(s) and the Company promptly of the request or requirement so that the Seller(s)
or the Company may seek an appropriate protective order from a court with competent jurisdiction or waive compliance with this
10(d).

 

    	 	 	24

    	 

    

 

11)
MISCELLANEOUS.

 

a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of Delaware. The Company hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts of Delaware, for the adjudication of any dispute hereunder or in connection herewith or under
any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein
shall be deemed or operate to preclude any Purchaser from bringing suit or taking other legal action against the Company in any
other jurisdiction to collect on the Company’s obligations to such Purchaser or to enforce a judgment or other court ruling
in favor of such Purchaser. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original
thereof.

 

    	 	 	25

    	 

    

 

c)
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to
include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,”
“include” and words of like import shall be construed broadly as if followed by the words “without limitation.”
The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement
instead of just the provision in which they are found.

 

d)
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

e)
Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto
and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the
Purchaser, the Seller(s), the Company, their affiliates and Persons acting on their behalf, including, without limitation, any
transactions by any Purchaser with respect to the Securities, and the other matters contained herein and therein, and this Agreement,
the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein. Except
as specifically set forth herein or therein, neither the Seller(s), the Company nor any Purchaser makes any representation, warranty,
covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement. No
provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Seller(s) or Company
and the Purchaser, and any amendment or waiver to any provision of this Agreement made in conformity with the provisions of this
Section 11(e) shall be binding on the Purchaser and holders of Securities, as applicable. The Company has not, directly or indirectly,
made any agreements with the Purchaser relating to the terms or conditions of the transactions contemplated by the Transaction
Documents except as set forth in the Transaction Documents. As a material inducement for the Purchaser to enter into this Agreement,
the Seller(s) and the Company expressly acknowledges and agrees that (x) no due diligence or other investigation or inquiry conducted
by the Purchaser, any of its advisors or any of its representatives shall affect such Purchaser’s right to rely on, or shall
modify or qualify in any manner or be an exception to any of, the Seller(s)’ and Company’s representations and warranties
contained in this Agreement or any other Transaction Document.

 

    	 	 	26

    	 

    

 

f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party) or electronic mail; or (iii) one (1) Business Day after deposit with an overnight courier service with
next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers
and e-mail addresses for such communications shall be:

 

If
to the Company:

 

Paris
Oxygen Company

P.O.
Box 750

Tyler, Texas 75710

Telephone:
(903) 593-7343

Attention:
Ronald Ruyle, President

E-Mail:
jered@tylerweldersgroup.com

 

If
to the Seller(s):

 

RONALD
RUYLE

10481
HWY 31E

Tyler,
Texas 75705

(903)
360-8977

 

CHARLOTTE
RUYLE

10481
HWY 31E

Tyler,
Texas 75705

(903)
530-8278

 

JERED
RUYLE

1715
Easy St.

Tyler,
Texas 75703

(903)
780-2165

 

JANSON
RUYLE

4308
Aberdeen Dr.

Tyler,
Texas 75703

(903)
330-0338

 

    	 	 	27

    	 

    

 

If
to the Purchaser:

 

MagneGas
Applied Technology Solutions, Inc.

11885
44th Street North

Clearwater,
FL 33762

Attention:
General Counsel

E-mail:
tylerwilson@magnegas.com

 

or
to such other address, e-mail address and/or facsimile number and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number and, with respect
to each facsimile transmission, an image of the first page of such transmission or (C) provided by an overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. The parties shall not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other parties.

 

h)
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than
the Indemnitees referred to in Section 11(k).

 

i)
Survival. The representations, warranties, agreements and covenants shall survive the Closing. Each Purchaser shall be
responsible only for its own representations, warranties, agreements and covenants hereunder.

 

j)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

    	 	 	28

    	 

    

 

k)
Indemnification.

 

i)
In consideration of the Purchaser’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Seller(s) and Company shall
defend, protect, indemnify and hold harmless the Purchaser and each holder of any Securities and all of their stockholders, partners,
members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other
representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee
is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements
(the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating
to (i) any misrepresentation or breach of any representation or warranty made by the Seller(s) and Company in any of the Transaction
Documents, (ii) any breach of any covenant, agreement or obligation of the Seller(s) or Company contained in any of the Transaction
Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party, including
for these purposes a derivative action brought on behalf of the Seller(s) or Company or which otherwise involves such Indemnitee
that arises out of or results from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents,
or (B) the status of such Purchaser or holder of the Securities either as an investor in the Company pursuant to this Agreement.
To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

ii)
Promptly after receipt by an Indemnitee under this Section 11(k) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof
is to be made against the Seller(s) or Company under this Section 11(k), deliver to the Seller(s) and Company a written notice
of the commencement thereof, and the Seller(s) and the Company shall have the right to participate in, and, to the extent the
Seller(s) or the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Seller(s)
or the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the
fees and expenses of such counsel to be paid by the Seller(s) or the Company if: (A) the Seller(s) or the Company has agreed in
writing to pay such fees and expenses; (B) the Seller(s) or Company shall have failed promptly to assume the defense of such Indemnified
Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (C) the named
parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company or the
Seller(s), and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnitee and the Company or the Seller(s) (in which case, if such Indemnitee notifies the Company or
Seller(s) in writing that it elects to employ separate counsel at the expense of the Seller(s) or the Company, then the Seller(s)
or Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Seller(s) or
the Company), provided further, that in the case of clause (C) above the Seller(s) or Company shall not be responsible for the
reasonable fees and expenses of more than one (1) separate legal counsel for the Indemnitees. The Indemnitee shall reasonably
cooperate with the Seller(s) or the Company in connection with any negotiation or defense of any such action or Indemnified Liability
by the Seller(s) or the Company and shall furnish to the Seller(s) or the Company all information reasonably available to the
Indemnitee which relates to such action or Indemnified Liability. The Seller(s) or the Company shall keep the Indemnitee reasonably
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. The Seller(s) or the
Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent,
provided, however, that the Seller(s) or the Company shall not unreasonably withhold, delay or condition its consent. The Seller(s)
or Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any
settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement
shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder,
the Seller(s) or the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the Seller(s) or Company
within a reasonable time of the commencement of any such action shall not relieve the Seller(s) or Company of any liability to
the Indemnitee under this Section 11(k), except to the extent that the Seller(s) or Company is materially and adversely prejudiced
in its ability to defend such action.

 

    	 	 	29

    	 

    

 

iii)
The indemnification required by this Section 11(k) shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, within ten (10) days after bills are received or Indemnified Liabilities are incurred.

 

iv)
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee
against the Seller(s), the Company or others, and (B) any liabilities the Seller(s) or the Company may be subject to
pursuant to the law.

 

l)
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall
limit the generality or applicability of a more general representation or warranty.

 

m)
Remedies. Each Purchaser and in the event of assignment by Purchaser of its rights and obligations hereunder, each holder
of Securities, shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such
holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under
any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and
to exercise all other rights granted by law. Furthermore, the Seller(s) and the Company recognize that in the event that it fails
to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law would inadequate
relief to the Purchasers. The Seller(s) and the Company therefore agree that the Purchasers shall be entitled to specific performance
and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any
such case without the necessity of proving actual damages and without posting a bond or other security. The remedies provided
in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under
this Agreement and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other
injunctive relief).

 

    	 	 	30

    	 

    

 

n)
Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
the Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and
the Seller(s) or Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Seller(s) or the Company, any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

o)
Payment Set Aside; Currency. To the extent that the Seller(s) or the Company makes a payment or payments to the Purchaser
hereunder or pursuant to any of the other Transaction Documents or the Purchaser enforce or exercise their rights hereunder or
thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded,
repaid or otherwise restored to the Seller(s) or the Company, a trustee, receiver or any other Person under any law (including,
without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent
of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such enforcement or setoff had not occurred. Unless otherwise expressly
indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S.
Dollars”), and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars.

 

p)
Fees and Expenses. Except as otherwise expressly provided in this Agreement, each party will bear its own costs and expenses
incurred in connection with the preparation, execution and performance of this Agreement and the transactions contemplated hereunder,
including all fees and expenses of agents, representatives, financial advisors, legal counsel and accountants.

 

q)
Confidentiality. The Seller(s) and the Company will, and will cause each of its respective affiliates, and its and their
directors, officers, employees, agents, representatives and similarly situated persons to: (a) treat and hold as confidential,
and not use or disclose, all of the information concerning the negotiation or existence and terms of this Agreement and the business
affairs of the Purchaser (“Confidential Information”), except for disclosures to their respective professional
advisors, and (b) deliver promptly to the Seller(s) or the Company or the Purchasers, as appropriate or destroy, at the option
and request of a Purchaser, all tangible embodiments (and all copies) of the Confidential Information which are in the Seller(s),
Company’s, or its affiliates possession. If the Seller(s) or the Company or its affiliates is ever requested or required
(by oral question or request for information or documents) to disclose any Confidential Information, the Company will notify the
Purchaser promptly of the request or requirement so that the Purchaser may seek an appropriate protective order from a court with
competent jurisdiction or waive compliance with this Section 11(q).

 

[Signature
Pages Follow]

 

[The
Remainder of This Page is Intentionally Blank]

 

    	 	 	31

    	 

    

 

IN
WITNESS WHEREOF, each Seller(s), Purchaser and the Company have caused their respective signature page to this Agreement to
be duly executed as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	PARIS
    OXYGEN COMPANY
	 	 	 
	 	By:	/s/
    Ronald Ruyle
	 	Name: 	Ronald
    Ruyle
	 	Title:	President

 

    	 	 	32

    	 

    

 

IN
WITNESS WHEREOF, each Seller(s), Purchaser and the Company have caused their respective signature page to this Agreement to
be duly executed as of the date first written above.

 

	 	SELLER(S):

        

	 	 
	 	/s/
    Ronald Ruyle
	 	RONALD
    RUYLE
	 	 
	 	/s/
    Charlotte Ruyle 
	 	CHARLOTTE
    RUYLE
	 	 
	 	/s/
                                         Jered Ruyle 

        

	 	JERED
    RUYLE
	 	 
	 	/s/
    Janson Ruyle 
	 	JANSON
    RUYLE

 

    	 	 	33

    	 

    

 

IN
WITNESS WHEREOF, each Seller(s), Purchaser and the Company have caused their respective signature page to this Agreement to
be duly executed as of the date first written above.

 

	 	PURCHASER:
	 	 	 
	 	MAGNEGAS APPLIED TECHNOLOGY

                                                                     SOLUTIONS, INC.

	 	 	 
	 	By:	/s/
                                         Ermanno Santilli                                           

        

	 	Name: 	Ermanno
                                         Santilli

        

	 	Title:	Chief
    Executive Officer

 

    	 	 	34

    	 

    

 

PURCHASE
SCHEDULE

 

	(1)	 	(2)	 	 	(3)	 	 	 	(4)	 	 	 	(5)	 	 	(6)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchaser	 	Seller	 	Aggregate
    Number of Securities	 	 	 	Date
    of Purchase	 	 	 	Purchase
    Price	 	 	Legal
    Representative’s Contact Information
	MagneGas
    Applied 	 	Ronald
    Ruyle	 	 	225	 	 	 	 	 	 	$	437,500	 	 	MagneGas
    Applied Technology Solutions, Inc. 

	Technology
    Solutions, Inc.	 	Charlotte
    Ruyle	 	 	225	 	 	 	 	 	 	$	437,500	 	 	11885
                                         44th Street N.

        Clearwater,
        FL 33762

	 	 	Jered
    Ruyle	 	 	100	 	 	 	 	 	 	$	187,500	 	 	Telephone:
                                         (509) 953-3059

        E-mail:

	 	 	Janson
    Ruyle	 	 	100	 	 	 	 	 	 	$	187,500	 	 	tylerwilson@magnegas.com
    
Attention: Tyler B. Wilson, Esq.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	 	 	650 	 	 	 	 	 	 	$	1,250,000	 	 	 

 

    	 	 	35

    	 

    

 

Schedule
3(a)

“Subsidiaries”

 

    	 	 	36

    	 

    

 

Schedule
3(o)

“Transactions
with Affiliates”

 

    	 	 	37

    	 

    

 

Schedule
3(p)(iii)

“Valid
Issuance; Available Shares; Affiliates”

 

    	 	 	38

    	 

    

 

Schedule
3(q)

“Other
Indebtedness and Contracts”

 

    	 	 	39

    	 

    

 

Schedule
3(r)

“Litigation”

 

    	 	 	40

    	 

    

 

Schedule
3(v)(i)

“Intellectual
Property”

 

    	 	 	41

    	 

    

 

Schedule
3(v)(ii)

“Expired
Intellectual Property Rights”

 

    	 	 	42

    	 

    

 

Schedule
3(hh)

“Bad-Actor
Disclosures”

 

    	 	 	43

    	 

    

 

Schedule
3(ss)(i)

“Material
Contracts”

 

    	 	 	44

    	 

    

 

Schedule
3(ss)(ii)

“Customers”

 

    	 	 	45

    	 

    

 

Schedule
3(ss)(iii)

“Suppliers”

 

    	 	 	46

    	 

    

 

Schedule
3(uu)

“Receivables”

 

    	 	 	47

    	 

    

 

Schedule
3(qq)

“Employee
Benefits”

 

    	 	 	48

    	 

    

 

Schedule
4(a)

“Selling
Securities Holders”

 

    	 	 	49EXHIBIT 4.3

Camtek Ltd.

2018 Share Incentive Plan

1.          Definitions

In this Plan, the capitalized terms shall have the meanings set forth in Annex A hereto, unless the context clearly indicates to the contrary.

2.          The Plan

	2.1	
Purpose

The purpose and intent of the Plan is to advance the interests of the Company by affording to selected employees, officers, directors, consultants and other services providers of the Company or any Affiliated Company an opportunity to acquire a proprietary interest in the Company or to increase their proprietary interest therein, as applicable, by the grant in their favor Options, Restricted Share, Restricted Share Units and Performance Based Awards, thus providing such Grantee an additional incentive to become, and to remain, employed and/or engaged by the Company or Affiliated Company, as the case may be, and encouraging such Grantee’s sense of proprietorship and stimulating his or her active interest in the success of the Company and the Affiliated Company by which such Grantee is employed or engaged.

	2.2	
Effective Date and Term

The Plan shall become effective as of the day it was adopted by the Board, and shall remain in effect until the earlier of (i) its termination by the Administrator; or (ii) the lapse of 10 years from the date the Plan is adopted by the Board.

3.          Administration

	3.1	
This Plan and any Sub-Plans shall be administered by the Administrator, subject to applicable Law and without the need for shareholder approval unless so required in order to comply with the provisions of applicable Mandatory Law.

	3.2	
Unless specifically required otherwise under applicable Mandatory Law, the Administrator shall have sole and full discretion and authority, without the need to submit its determinations or actions to the shareholders of the Company for their approval or authorization, at any time and from time to time, to determine: (i) the designation of Grantees; (ii) grant of Awards and the determination of the terms of each grant of Awards (which need not be identical), including without limitation the number of Awards to be granted in favor of each Grantee and the vesting schedule and the Exercise Price thereof, as applicable, and the documents to be executed by the Grantee; (iii) the determination of the applicable tax regimes to which the Awards will be subject; (iv)  the determination of the terms and form of the Award Agreement (which need not be identical), whether a general form or a specific form with respect to a certain Grantee and any other agreements or instruments under which Awards are made; (v)  the modification or amendment of the Exercise Period, vesting schedules (including by way of acceleration and/or performance criteria) and/or of the Exercise Price of Awards, including without limitation the reduction thereof and either prior to or following their grant; the repricing of Awards or any other action which is or may be treated as repricing under generally accepted accounting principles; the grant to the holder of an outstanding Awards, in exchange for such Award, of a new Award having a purchase price equal to, lower than or higher than the Exercise Price provided in the Award so surrendered and canceled, and containing such other terms and conditions as the Administrator may prescribe; (vi)  any other action and/or determination deemed by the Administrator to be required or advisable for the administration of the Plan and/or any Sub-Plan or Award Agreement; (vii)  the interpretation of the Plan, any Sub-Plans, and the Award Agreements; (viii) the adoption of Sub-Plans, including without limitation the determination, if the Administrator sees fit to so determine, that to the extent any terms of such Sub-Plan are inconsistent with the terms of this Plan, the terms of such Sub-Plan shall prevail; (ix) the extension of the period of the Plan or any Sub-Plans; and (x) any other matter which is necessary or desirable for, or incidental to, the administration of the Plan.

 

  

	3.3	
The Administrator may, without shareholder approval, amend, modify (including by adding new terms and rules), and/or cancel or terminate this Plan, any Sub-Plans, and any Awards granted under this Plan or any Sub-Plans, any of their terms, and/or any rules, guidelines or policies relating thereto. Notwithstanding the foregoing, (i) material amendments to the Plan or any Sub-Plans (but not the exercise of discretion under the Plan or any Sub-Plans) shall be subject to shareholder approval to the extent so required by applicable Mandatory Law; and (ii) no termination or amendment of the Plan or any Sub-Plan shall affect any then outstanding Awards nor the Administrator’s ability to exercise its powers with respect to such outstanding Awards granted prior to the date of such termination, unless expressly provided by the Administrator.

 

	3.4	
Unless otherwise determined by the Administrator, any amendment or modification of this Plan and/or any applicable Sub-Plan and/or Award Agreement shall apply to the relationship between the Grantee and the Company; and such amendment or modification shall be deemed to have been included, ab initio, in the Plan and any such applicable Sub-Plan and/or Award Agreement, and shall have full force and effect with respect to the relationship between the Company and the Grantee.

 

	3.5	
Notwithstanding anything to the contrary herein, any Award granted under the Plan to an Office Holder shall be subject to the terms of the Company’s Executives and Directors Compensation Policy, unless otherwise determined by the Administrator and approved in accordance with the provisions of the Companies Law.

4.          Eligibility

The persons eligible for participation in the Plan as Grantees include employees, officers, directors, consultants, and other service providers of the Company or any Affiliated Company (including persons who are responsible for or contribute to the management, growth or profitability of, or who provide substantial services to, the Company and/or any Affiliated Company). The Administrator, in its sole discretion shall select from time to time the individuals, from among the persons eligible to participate in the Plan, who shall receive Awards. In determining the persons in favor of whom Awards are to be granted, the number of Awards to be granted thereto and the terms of such grants, the Administrator may take into account the nature of the services rendered by such person, his/her present and future potential contribution to the Company and/or to the Affiliated Company by which he/she is employed or engaged, and such other factors as the Administrator in its discretion shall deem relevant.

 

5.          Pool

The maximum number of Shares that may be subject to Awards to be granted pursuant to this Plan shall be an amount per calendar year, commencing on the 2018 calendar year, equal to three and a half percent (3.5%) of the Company’s total issued and outstanding Share capital as of the 31st of December of the preceding calendar year, subject to adjustments as provided in Section 15 below. The amount stated above shall be re-set for each calendar year. It is clarified, that any balance of such amount not utilized in a certain calendar year cannot be utilized in any following calendar year.

 

Notwithstanding the above, for the 2018 calendar year the aforementioned amount will be reduced by the number of Shares subject to Awards granted by the Company during the 2018 calendar year under the “Camtek Ltd. 2007 Restricted Share Unit Plan” and the “Camtek 2014 Share Option Plan”.

 

Notwithstanding the above, equity-based awards assumed, substituted or granted by the Company as part of or in connection with a corporate transaction (including, without limitation, awards assumed or substituted from an entity merged into or with the Company or any of its Affiliated Companies, acquired by the Company or any of its Affiliated Companies, or otherwise involved in a similar corporate transaction) shall not count against the number of shares reserved and available for issuance pursuant to the Plan.

 

		
The Company shall at all times until the expiration or termination of this Plan keep reserved a sufficient number of Shares to meet the requirements of this Plan. Any of such Shares which, as of the expiration or termination of this Plan, remain unissued and not subject to outstanding Awards, shall at such time cease to be reserved for the purposes of this Plan. Should any Awards for any reason expire, terminate or be canceled prior to its exercise, issuance of its underlying Shares or relinquishment in full, such Award may be returned to the reserved pool and may again be granted under this Plan.

6.          Grant of Awards

	6.1	
Unless determined otherwise herein, the Awards shall be granted for no consideration.

	6.2	
Each Award granted pursuant to this Plan shall be evidenced by an applicable Award Agreement which shall state, inter alia, the type and number of Award, the vesting schedule, any restrictions if applicable, the Exercise Price, the tax treatment to which the Award is subject and such other terms and conditions as the Administrator in its discretion may prescribe.

	6.3	
Each Grantee shall be required to execute, in addition to the Award Agreement, any and all other documents required by the Company and/or Affiliated Company, whether before or after the grant of the Awards (including without limitation any customary documents and undertakings towards a trustee, if applicable, and/or the tax authorities). Notwithstanding anything to the contrary in this Plan or in any Sub-Plan, no Award shall be deemed granted unless all documents required by the Company and/or any Affiliated Company to be signed by the Grantee prior to or upon the grant of such Award, shall have been duly signed and delivered to the Company or such Affiliated Company.

 

  

	6.4	
Unless and until an Award shall have vested in the manner set forth below, and, if applicable, have been exercised in the manner set forth below, the Grantee will have no right to receive Exercised Shares and the Award will represent an unsecured obligation.

	7.	
Terms of Options

The Administrator at its sole and absolute discretion may decide to grant Options under the Plan. Unless otherwise determined by the Administrator and provided accordingly in the applicable Award Agreement, an Award Agreement for the grant of Options shall set forth, by appropriate language, the number of Options granted thereunder and the substance of all of the following provisions:

	7.1	
Exercise Price. The Exercise Price for each Grantee shall be as determined by the Administrator and specified in the applicable Award Agreement; provided, however, that unless otherwise determined by the Administrator, the Exercise Price shall be the Fair Market Value of the Shares on the Date of Grant.

 

	7.2	
Vesting.  Unless otherwise determined by the Administrator with respect to any specific Grantee and/or to any specific grant and provided accordingly in the applicable Award Agreement, the Options shall vest (become exercisable) according to the following four-year vesting schedule:   

 

	
Period of Grantee’s Continuous Service from the Start Date:

	
Portion of Total Number of Options that becomes Vested and Exercisable

	
Upon the completion of a full twelve (12) months of continuous Service

	
25%

	
Upon the completion of an additional full twelve (12) months of continuous Service 

(i.e. 24 months from the Start Date)

	
25%

	
Upon the lapse of each full additional month of the Grantee’s continuous Service 

thereafter, until all the Options are vested (i.e. 100% of the grant will be vested after 4 years)

	
1/48

The Administrator shall be entitled, but not obliged, at its sole discretion, to accelerate, in whole or in part, the vesting schedule of any Option, including, without limitation, in connection with a Corporate Transaction.

Without derogating from the generality of the foregoing, the Administrator shall be entitled, at its sole discretion, unless specifically required otherwise under applicable Mandatory Law, to accelerate, in whole or in part, the vesting schedule of any Option granted to an Office Holder of the Company, including, without limitation, in connection with a Corporate Transaction, under a Double Trigger mechanism.

	7.3	
Exercise Period. Unless expired earlier pursuant to either Section 7.6 or Section 15 below, unexercised Options shall expire and terminate and become null and void upon the lapse of seven (7) years from the Date of Grant (the “Expiration Date”). Each Option shall be exercisable from the date upon which it becomes vested until the Expiration Date of such Option (the “Exercise Period”).

 

	7.4	
Exercise Notice and Payment. Vested Options may be exercised at one time or from time to time during the Exercise Period, by giving an Exercise Notice to the Company, at its principal office, in accordance with the following terms, or such other procedures as shall be determined from time to time by the Administrator and notified in writing to the Grantees:

 

		(a)	
The Exercise Notice must be signed by the Grantee and must be delivered to the Company, prior to the termination of the Options, by certified or registered mail - return receipt requested, with a copy delivered to the Chief Financial Officer (or such other authorized representative) of the Affiliated Company with which the Grantee is employed or engaged, if applicable.

		(b)	
The Exercise Notice will specify the number of Vested Options being exercised.

		(c)	
The Exercise Notice will be accompanied by payment in full of the Exercise Price for the exercised Options. Payment will be made by wire transfer to the Company or by another payment instrument as determined by the Administrator or in the Grantee’s Award Agreement (such as, by way of example, cashless exercise), provided however, that in case of payment by check, the Options shall not be deemed exercised, and the Company shall not issue the Exercised Shares in respect thereof, until the check shall have been fully and irrevocably honored by the bank on which it was drawn.

	7.5	
Net Exercise. Notwithstanding the provisions of Section 7.4 above, the Administrator may determine that In lieu of exercising Options for cash, the Grantee may elect to receive Shares equal to the aggregate value of the Options (or the portion thereof being exercised) by written notice of such election to the Company, in which event the Company shall issue to the Grantee, for no additional consideration, that number of Shares computed using the following formula:

 

	
 

	
X =

	
Y (A - B)

	
 

	
 

	
 

	
 

	
 

	
 

	 	
A

	
 

	
 

	
 

	
 

	
 

 

Where

 

X =     The number of Shares to be issued to the Grantee.

 

Y =     The number of Vested Options that the Grantee wishes to exercise.

 

A =     The Fair Market Value of one (1) Share (on the date of such calculation).

 

B =     The Exercise Price.

 

	7.6	
The Company shall not be required to issue fractional shares upon the exercise of the Options. If any fractional Share would be deliverable upon exercise, such fraction shall be rounded up one-half or less, or otherwise rounded down, to the nearest whole number.

	7.7	
Termination of Options

		(a)	
Notwithstanding anything to the contrary, any Option granted in favor of any Grantee but not exercised by such Grantee within the Exercise Period and in strict accordance with the terms of the Plan, any applicable Sub-Plan and the applicable Award Agreement, shall, upon the lapse of the Exercise Period, immediately expire and terminate and become null and void.

 

  

		(b)	
Upon the termination of a Grantee's Service, for any reason whatsoever, any Options granted in favor of such Grantee which are not Vested Options, shall immediately expire and terminate and become null and void.

		(c)	
Additionally, in the event of the termination of a Grantee’s Service for Cause all of such Grantee’s Vested Options shall also, upon such termination for Cause, immediately expire and terminate and become null and void.

		(d)	
Unless otherwise determined by the Administrator, following termination of Grantee’s Service other than for Cause, the Expiration Date of such Grantee’s Vested Options shall be deemed the earlier of: (a) the Expiration Date of such Vested Options as was in effect immediately prior to such termination; or (b) three (3) calendar months following the date of such termination or, if such termination is the result of death or Disability of the Grantee, twelve (12) calendar months from the date of such termination.

	8.	
Restricted Share Units

The Administrator at its sole and absolute discretion may decide to grant under the Plan Restricted Share Units. Unless otherwise determined by the Administrator and provided accordingly in the applicable Award Agreement, an Award Agreement for the grant of Restricted Share Units shall set forth, by appropriate language, the number of Restricted Share Units granted thereunder and the substance of all of the following provisions:

	8.1	
Purchase Price. The purchase price for each RSU shall be no more than the underlying Share’s nominal value. For the removal of any doubt, the Administrator is authorized to determine that the purchase price of an RSU is to be $0.00 (zero).

	8.2	
Other terms. Unless otherwise determined by the Administrator with respect to any specific Grantee and/or to any specific grant and provided accordingly in the applicable Award Agreement, all other terms and conditions of the Plan applicable to Options, including without limitation, with respect to vesting, shall apply to RSUs, mutatis mutandis.

	8.3	
Upon vesting of a RSU, the Company shall issue to the Grantee on such vesting date one (1) Share (and/or any other new, substituted or additional securities or other property pursuant to an adjustment described in Section 15) for each RSU then becoming vested against payment by the Grantee of the nominal value of such shares and subject to the withholding of applicable taxes, if any. If permitted by the Administrator, the Grantee may elect, consistent with the requirements of any applicable Law, to defer receipt of all or any portion of the Shares or other property otherwise issuable to the Grantee pursuant to this Section, and such deferred issuance date(s) and amount(s) elected by the Grantee shall be set forth in the Award Agreement. Notwithstanding the foregoing, the Administrator, in its discretion, may provide for settlement of any RSU by payment to the Grantee in cash of an amount equal to the Fair Market Value on the payment date of Shares or other property otherwise issuable to the Grantee pursuant to this Section. Until the grant of RSUs is settled, the number of such RSUs shall be subject to adjustment pursuant to the terms in Section 15 hereto.

	8.4	
The Company shall not be required to issue fractional shares upon the vesting of the RSUs. If any fractional Share would be deliverable upon vesting, such fraction shall be rounded up one-half or less, or otherwise rounded down, to the nearest whole number.

 

  

	8.5	
Upon the termination of a Grantee's Service, for any reason whatsoever, any RSUs granted in favor of such Grantee which are not Vested RSUs, shall immediately expire and terminate and become null and void.

	9.	
Restricted Shares

The Administrator at its sole and absolute discretion may decide to grant under the Plan Restricted Shares. Unless otherwise determined by the Administrator and provided accordingly in the applicable Award Agreement, an Award Agreement for the grant of Restricted Shares shall set forth, by appropriate language, the number of Restricted Shares granted thereunder and the substance of all of the following provisions:

	9.1	
Purchase Price. The purchase price for each Restricted Share shall be as determined by the Administrator and specified in the applicable Award Agreement; provided, however, that unless otherwise determined by the Administrator, the purchase price shall be no more than the underlying Share’s nominal value. For the removal of any doubt, the Administrator is authorized to determine that the purchase price of a Restricted Share is to be $0.00 (zero).

	9.2	
Other terms. Unless otherwise determined by the Administrator with respect to any specific Grantee and/or to any specific grant and provided accordingly in the applicable Award Agreement, all other terms and conditions of the Plan applicable to Options, including without limitation, with respect to vesting, shall apply to Restricted Shares, mutatis mutandis.

	9.3	
Restrictions. Restricted Shares may not be sold, assigned, transferred, pledged or otherwise disposed of, except by will or the laws of descent and distribution, for such period as the Administrator shall determine from the date on which the Award is granted (the “Restricted Period”). The Administrator may also impose such additional or alternative restrictions and conditions on the Restricted Shares, as it deems appropriate, including the satisfaction of performance criteria. Such performance criteria may include, but are not limited to, sales, earnings before interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any of the foregoing, as determined by the Administrator. Certificates for shares issued pursuant to Restricted Share Awards shall bear an appropriate legend referring to such restrictions, and any attempt to dispose of any such shares in contravention of such restrictions shall be null and void and without effect. Such certificates may, if so determined by the Administrator, be held in escrow by an escrow agent appointed by the Administrator, or by a trustee. In determining the Restricted Period of an Award the Administrator may provide that the foregoing restrictions shall lapse with respect to specified percentages of the awarded Restricted Shares pursuant to any conditions as further determined by the Administrator (such as continuous service of the Grantee, performance criteria, etc.)

	9.4	
Voting Rights; Dividends and Distributions.  Except as provided in this Section and any Award Agreement, during the Restricted Period, the Grantee shall have all of the rights of a shareholder of the Company holding Shares, including the right to vote such Shares and to receive all dividends and other distributions paid with respect to such Shares.  However, in the event of a dividend or distribution paid in Shares or other property or any other adjustment made upon a change in the capital structure of the Company as described in Section 15, any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Grantee is entitled by reason of the Grantee’s award of Restricted Shares shall be immediately subject to the same terms and conditions as the Shares subject to the award of Restricted Shares with respect to which such dividends or distributions were paid or adjustments were made.

 

  

	9.5	
Forfeiture. Subject to such exceptions as may be determined by the Administrator, if the Grantee’s continuous employment with the Company or any Affiliated Company shall terminate for any reason prior to the expiration of the vesting date or Restricted Period of an Award or prior to the payment in full of the purchase price of any Restricted Shares with respect to which the vesting date or Restricted period has expired, any shares remaining subject to vesting or restrictions or with respect to which the purchase price has not been paid in full shall thereupon be forfeited and shall be deemed transferred to and required by, or cancelled by, as the case may be, the Company or any Affiliated Company at no cost to the Company or the Affiliated Company, subject to all Applicable Laws. Upon forfeiture of Restricted Shares the Grantee shall have no further rights with respect to such Restricted Shares. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.

	10.	
Performance Based Awards

	10.1	
Subject to the sole and absolute discretion and determination of the Administrator, the Administrator may decide to grant Awards under the Plan, the exercise or vesting of which, as applicable, shall be conditional upon the performance of the Company and/or an Affiliated Company and/or a division or other business unit of the Company or of an Affiliated Company and/or upon the performance of the Grantee, over such period and measured against such objective criteria as shall be determined by the Administrator and detailed in the Award Agreement (“Performance Based Award(s)”). In granting each Performance Based Award, the Administrator shall establish in writing the applicable performance period (“Performance Period”), performance formula (“Performance Formula”) and one or more performance goals (“Performance Goal(s)”) which, when measured at the end of the Performance Period, shall determine on the basis of said Performance Formula the extent to which the Performance Based Award has vested and/or become exercisable (collectively, the “Performance Conditions”). It is clarified, that Performance Conditions may be determined for an Award either in addition to, or in substitution for, a Vesting Period.

	10.2	
After a Performance Based Award has been granted, the Administrator may, in appropriate circumstances and subject to any other approval required in order to comply with Mandatory Law (for example, shareholders’ approval), amend any Performance Condition, at its sole and absolute discretion. Without derogating from the above, if the Administrator determines that a change in the business, operations, corporate structure or capital structure of the Company or the manner in which the Company or an Affiliated Company conducts its business, or other events or circumstances render a Performance Condition to be unsuitable, the Administrator may modify such Performance Condition in whole or in part, as the Administrator deems appropriate. If a Grantee is promoted, demoted or transferred to a different business unit or function during a Performance Period, the Administrator may determine that the Performance Condition or Performance Period are no longer appropriate and may: (i) adjust, change or eliminate the Performance Condition or the applicable Performance Period as it deems appropriate to make such conditions and period comparable to the initial conditions and period; or (ii) make a cash payment to the Grantee in an amount determined by the Administrator.

 

  

	10.3	
Performance Conditions shall not be automatically waived merely due to an event of (i) a Corporate Transaction; (ii) a Sale; or (iii) any other adjustment under Section 15 below.

	10.4	
Measurement of Performance Goals.  Performance Goals shall be established by the Administrator on the basis of targets to be attained with respect to one or more measures of business or financial performance that shall have the same meanings as used in the Company’s financial statements, or, if such terms are not used in the Company’s financial statements, they shall have the meaning applied pursuant to generally accepted accounting principles, or as used generally in the Company’s industry (“Performance Measures”). For purposes of the Plan, the Performance Measures applicable to a Performance Based Award shall be calculated in accordance with generally accepted accounting principles, excluding the effect (whether positive or negative) of any change in accounting standards or any extraordinary, unusual or nonrecurring item, as determined by the Administrator, occurring after the establishment of the Performance Goals applicable to the Performance Based Award including by way of example but without limitation the following: (a) asset write-downs or impairment charges; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results; (d) accruals for reorganization and restructuring programs; (e) acquisitions or divestitures; and (f) foreign exchange gains and losses. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of Performance Measures in order to prevent the dilution or enlargement of the Grantee’s rights with respect to a Performance Based Award.  Performance Measures may be one or more of the following, as determined by the Administrator: revenue; sales; expenses; operating income; gross margin; operating margin; earnings before any one or more of: share-based compensation expense, interest, taxes, depreciation and amortization; pre-tax profit; net operating income; net income; economic value added; free cash flow; operating cash flow; share price; earnings per share; return on shareholder equity; return on capital; return on assets; return on investment; employee satisfaction; employee retention; balance of cash, cash equivalents and marketable securities; market share; customer satisfaction; product development; research and development expenses; completion of an identified special project; completion of a joint venture or other Corporate Transaction and any other performance goals as determined by the Administrator.

	10.5	
Term of Performance Based Awards. Unless otherwise determined by the Administrator, anything herein to the contrary notwithstanding, and without derogating from the generality of the above, if any Performance Based Options granted have not been exercised and the Shares subject thereto not paid for within seven (7) years after the Date of Grant, such Performance Based Awards and the right to acquire such Shares shall terminate, all interests and rights of the Grantee in and to the same shall ipso facto expire, and the Shares subject to such Performance Based Awards shall again be available for grant under the Plan, any sub-plans of the Plan, as provided for in Section 5 herein.

	10.6	
All other terms and conditions of the Plan applicable to Awards, shall apply to Performance Based Awards, mutatis mutandis.

	11.	
Conditions of Issuance of Share

	11.1	
No Options shall be deemed exercised nor shall any Share be issued thereunder or in connection with any other Award, until the Company has been provided with confirmation by the applicable tax authorities or is otherwise under a tax arrangement, which either: (a) waives or defers the tax withholding obligation with respect to such exercise and issuance; or (b) confirms receipt of the payment of all the tax due with respect to such exercise; or (c) confirms the conclusion of another arrangement with the Grantee regarding the tax amounts, if any, that are to be withheld by the Company or any Affiliated Company under Law with respect to such Award, and which arrangement is satisfactory to the Company. If such confirmations/exemptions/arrangements are not available under the tax subjections of the Grantee, the Company shall be entitled to require as a condition of issuance that the Grantee remit an amount sufficient to satisfy all federal, state and other governmental withholding tax requirements related thereto. A determination of the Company’s counsel that a withholding tax is required in connection with the Awards shall be conclusive for the purposes of this requirement condition.

 

  

	11.2	
Furthermore, notwithstanding any other provision of this Plan, the Company shall have no obligation to issue or deliver Shares under the Plan unless the exercise of the Awards and the issuance and delivery of the underlying Shares comply with, and do not result in a breach of, all applicable Laws, to the satisfaction of the Company in its sole discretion, and have received, if deemed desirable by the Company, the approval of legal counsel for the Company with respect to such compliance. The Company may further require the Grantee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with applicable Laws.

	12.	
Transferability

	12.1	
The Awards are not publicly traded.

	12.2	
Without derogating from the above, other than by will or Laws of descent, neither the Awards nor any of the rights in connection therewith shall be assignable, transferable, made subject to attachment, lien or encumbrance of any kind, and the Grantee shall not grant with respect thereto any power of attorney or transfer deed, whether valid immediately or in the future.

	12.3	
Following the issuance of the Exercised Shares by virtue of the Vested Options or, when applicable, following the Restricted Period (with respect to the Restricted Shares), the Exercised Shares shall be transferable; provided, however, that the transfer of Exercised Shares by the Grantee may be subject to applicable securities regulations, lock-up periods, market stand-off provisions, and such other conditions and restrictions as may be included in the Company’s Articles of Association, the Plan, any applicable Sub-Plan, the applicable Award Agreement, and/or any conditions and restrictions included in the Company’s Insider Trade Policy, or similar document, if any, all as determined by the Administrator in its sole discretion. Upon request by the Company, the Grantee shall execute any agreement or document evidencing such transfer restrictions prior to the receipt of Exercised Shares hereunder.

	12.4	
No transfer of an Exercised Share or an Award by the Grantee by will or by the Laws of descent shall be effective against the Company, unless and until: (a) the Company shall have been furnished with written notice thereof, accompanied by an authenticated copy of probate of a will together with the will or inheritance order and/or such other evidence as the Administrator may deem necessary to establish the validity of the transfer; and (b) the contemplated transferee(s) shall have confirmed to the Company in writing its acceptance of the terms and conditions of the Plan, any applicable Sub-Plan and Award Agreement, with respect to such Share or Options being transferred, to the satisfaction of the Administrator.

 

  

	13.	
Rights as Shareholder

	13.1	
It is hereby clarified that a Grantee shall not, have any of the rights or privileges of a shareholder, including without limitation, a right to vote or receive dividend, with respect to the Shares underlying the Awards (except for Restricted Shares), until the Awards have been exercised or vested, as applicable, all restrictions applicable to any Shares had been removed, and the Exercised Shares are issued in the Grantee’s name.

	13.2	
Cash dividends paid or distributed, if any, with respect to the Exercised or Restricted Shares shall be remitted directly to the Grantee who is entitled to the Exercised or Restricted Shares for which the dividends are being paid or distributed, subject to any applicable taxation on such distribution of dividend, and the withholding thereof.

	13.3	
All bonus shares to be issued by the Company, if any, with regard to the Exercised or Restricted Shares held by a trustee, if any, shall be registered in the name of such trustee and all provisions applying to such Exercised Shares, shall apply to the bonus shares issued by virtue thereof, mutatis mutandis.

14.        Liquidation

Unless otherwise provided by the Administrator, in the event of the proposed dissolution or liquidation of the Company, all outstanding Awards will terminate immediately prior to the consummation of such proposed action. In such case, the Administrator may declare that any Award shall terminate as of a date fixed by the Board and give each Grantee the right to exercise his Award or have it vested, including Award that would not otherwise vest or be exercisable.

15.        Adjustments

	15.1	
The number of Shares covered by outstanding Awards, the number of Shares to which each outstanding Award is exercisable (in case of Options), together with those Shares otherwise reserved for the purposes of this Plan, shall be proportionately adjusted for any increase or decrease in the number of Shares resulting from a reorganization of the share capital of the Company by a share split, reverse share split, combination or reclassification of the shares, as well as for a distribution of bonus shares, in the same manner as if the Grantee held Shares.

Furthermore, in the event that the Company shall distribute cash or dividend in kind, the Administrator, at its sole and absolute discretion, may resolve either: (i) that the number of Shares underlying each outstanding Award, together with those Shares otherwise reserved for the purposes of this Plan, shall be proportionately adjusted, such that the total value of the Shares underlying each Award immediately following such distribution shall be increased, and shall equal the value of one Share, immediately prior to the distribution of such cash or other similar dividend. The calculation of said change in the value of the Shares shall correspond to the reduction in the price of a Share as a result of such distribution as recorded by stock exchange or electronic securities trading system (e.g., if the Company distributes a 2$ per share cash or other similar divided at a time when the Company’s share price is $5.5 per share, and as a result of such distribution, the share price is reduced to $3.5 per share, then the number of shares underlying each Award shall be 1.57 instead of 1); or (ii) that in lieu of the abovementioned adjustment, the amount or kind of dividend that would have been distributed to the Grantee with respect to the Shares underlying each outstanding Award, will be distributed to the Grantee together with the Exercised Shares (to the extent that such Awards vest and, if applicable, exercised), in which case the Grantee’s rights to such dividend shall be solely that of an unsecured general creditor of the Company. The Administrator shall be entitled to make all necessary arrangements to enable such distribution, until such time when the Grantee is entitled to exercise the Awards in accordance with the terms of the Plan.

 

Such adjustments shall be made by the Administrator, whose determination in this matter shall be final, binding and conclusive. No fractional Shares will be issued.

All provisions applying to the Exercised or Restricted Shares shall apply to all Shares received as a result of an adjustment as described above.

	15.2	
Corporate Transaction.

		
In the event of a Corporate Transaction, immediately prior to the effective date of such Corporate Transaction, each Award may, among other things, at the sole and absolute discretion of the Board, either:

		(a)	
Be substituted for a successor entity Award such that the Grantee may exercise the successor entity Award or have it become vested, as the case may be, for such number and class of securities of the successor entity which would have been issuable to the Grantee in consummation of such Corporate Transaction, had the Award vested or been exercised (as applicable), immediately prior to the effective date of such Corporate Transaction, given the exchange ratio or consideration paid in the Corporate Transaction, the vesting schedule and Performance Conditions (if any) of the Awards and such other terms and factors that the Administrator determines to be relevant for purposes of calculating the number of successor entity Awards granted to each Grantee; or

		(b)	
Be assumed by any successor entity such that the Grantee may exercise the Award or have his/her Award vest (as applicable), for such number and class of securities of the successor entity which would have been issuable to the Grantee in consummation of such Corporate Transaction, had the Award vested or been exercised immediately prior to the effective date of such Corporate Transaction, given the exchange ratio or consideration paid in the Corporate Transaction, the vesting schedule and Performance Conditions (if any) of the Awards and such other terms and factors that the Administrator determines to be relevant for this purpose.

In the event of a clause (a) or clause (b) action, appropriate adjustments shall be made to the Exercise Price per Share to reflect such action.

		(c)	
Determine that the Awards shall be cashed out for a consideration equal to the difference between the price per share received by the shareholders of the Company in the Corporate Transaction and the Exercise Price or nominal value, as the case may be, of such Award.

		(d)	
Immediately following the consummation of the Corporate Transaction and subject to the Administrator exercising one of the alternatives under sub-Section (a) or (b) above, all outstanding Awards shall terminate and cease to be outstanding, except to the extent assumed by a successor entity.

		(e)	
Notwithstanding the foregoing, and without derogating from the power of the Board or Administrator pursuant to the provisions of the Plan, the Board shall have full authority and sole discretion to determine that any of the provisions of Sections 15.2(a) or 15.2(b) above shall apply in the event of a Corporate Transaction in which the consideration received by the shareholders of the Company is not solely comprised of securities of a successor entity, or in which such consideration is solely cash or assets other than securities of a successor entity.

 

 

	15.3	
Sale.

Subject to any provision in the Articles of Association of the Company and to the Board’s sole and absolute discretion, in the event of a Sale, each Grantee shall be obligated to participate in the Sale and sell his or her Shares and/or Awards in the Company, provided, however, that each such Share or Award shall be sold at a price equal to that of any other Ordinary Share sold under the Sale (and, unless determined otherwise by the Board, less the applicable Exercise Price), while accounting for changes in such price due to the respective terms of any such Award, and subject to the absolute discretion of the Board.

For purposes of a Sale, whether “all or substantially all of the issued and outstanding share capital of the Company is to be sold”, shall be finally and conclusively determined by the Board in its absolute discretion.

	16.	
Cessation of Public Trade of the Company’s Shares

It is clarified that under certain circumstances, the Company may cease to exist as a public company and the Grantee is not relying on the fact that the Company is currently publicly traded.

In the event that the Company shall resolve to cancel the listing of its shares for trade or in the event that the Company's securities shall no longer be publicly traded, for any reason whatsoever, including in the event of a full purchase offer, the Administrator may determine, at its sole discretion, the method in which the Company shall engage with respect to unvested Awards, including an acceleration of the vesting schedule of such Awards. Additionally, the Administrator shall be entitled to determine, at its sole discretion, the rights lying under the Vested Options.

It is clarified that in any event, the Company shall not indemnify and shall not be required to indemnify the Grantees with respect to the results of the above actions, even if such action shall result in a change in the Awards’ original tax track, including an increase of the Grantee's tax liability with respect to the Awards.

It is clarified that in the event of a full purchase offer, the Grantee that has exercised his or her Awards to Shares as aforesaid, shall be obligated to join such a sale and sell all of his/her Shares in the Company, all under the same terms under which all other shareholders have agreed to sell their shares.

17.        No Interference

Neither the Plan nor any applicable Sub-Plan or Award Agreement shall affect, in any way, the rights or powers of the Company or its shareholders to make or to authorize any sale, transfer or change whatsoever in all or any part of the Company’s assets, obligations or business, or any other business, commercial or corporate act or proceeding, whether of a similar character or otherwise; any adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or business; any merger or consolidation of the Company; any issue of bonds, debentures, or shares; or the dissolution or liquidation of the Company; and none of the above acts or authorizations shall entitle the Grantee to any right or remedy, including without limitation any right of compensation for any dilution resulting from any issuance of any shares or of any other securities in the Company to any person or entity whatsoever.

 

18.        No Employment/Engagement/Continuance of Service Obligations

Nothing in the Plan, in any applicable Sub-Plan or Award Agreements, or in any Award granted hereunder shall be construed as guaranteeing the Grantee’s continuous employment, engagement or service with the Company or any Affiliated Company, and no obligation of the Company or any Affiliated Company as to the length of the Grantee’s employment, engagement or service or as to any other term of employment, engagement or service shall be implied by the same. The Company and its Affiliated Companies reserve the right to terminate the employment, engagement or service of any Grantee pursuant to such Grantee’s terms of employment, engagement or service and any law.

19.        No Representation

The Company does not and shall not, through this Plan, any applicable Sub-Plan or the applicable Award Agreement, make any representation towards any Grantee with respect to the Company, its business, its value or either its shares in general or the Exercised Shares in particular.

Each Grantee, upon entering into the applicable Award Agreement, shall represent and warrant toward the Company that his/her consent to the grant of the Awards issued in his/her favor and the exercise (if so exercised) thereof, neither is nor shall be made, in any respect, upon the basis of any representation or warranty made by the Company or by any of its directors, officers, shareholders or employees, and is and shall be made based only upon his/her examination and expectations of the Company, on an “as is” basis. Each Grantee shall waive any claim whatsoever of “non-conformity” of any kind, and any other cause of action or claim of any kind with respect to the Awards and/or their underlying Shares.

20.        Tax Consequences

	20.1	
Any and all tax and/or other mandatory payment consequences arising from the grant or exercise of any Award, the payment for or the transfer of the Exercised Shares to the Grantee, the sale of the Exercised Shares by the Grantee, or from any other event or act in connection therewith (including without limitation, in the event that the Awards do not qualify under the tax classification/tax track in which they were intended) (whether of the Company, any Affiliated Company, a trustee, if applicable, or the Grantee), shall be borne solely by the Grantee.

	20.2	
The Company, any Affiliated Company and the trustee, if applicable, may each withhold (including at source), deduct and/or set-off, from any payment made to the Grantee, the amount of the tax and/or other mandatory payment the withholding of which is required with respect to the Awards and/or the Exercised Shares under any applicable Law. The Company or an Affiliated Company may require the Grantee, through payroll withholding, cash payment or otherwise, to make adequate provision for any such tax withholding obligations of the Company, Affiliated Company or a trustee, if applicable, arising in connection with the Awards or the Exercised Shares. Without derogating from the aforesaid, each Grantee shall provide the Company and/or any applicable Affiliated Company with any executed documents, certificates and/or forms that may be required from time to time by the Company or such Affiliated Company in order to determine and/or establish the tax liability of such Grantee.

 

  

21.       Non-Exclusivity of the Plan

The adoption by the Board of this Plan and any Sub-Plans shall not be construed as amending, modifying or rescinding any previously approved incentive arrangements, or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including without limitation the grant of Shares and/or options for shares in the Company otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

	22.	
Governing Law and Government Regulations

This Plan and all instruments issued thereunder or in connection therewith, shall be governed by, and interpreted in accordance with, the laws of the State of Israel. Further, this Plan, the grant and exercise of Awards hereunder, and the obligation of the Company to deliver Shares under such Awards, shall be subject to all applicable laws, rules and regulations, whether of the State of Israel or of the United States or any other state having jurisdiction over the Company and the Grantee, including the registration of the shares under the United States Securities Act of 1933, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

ANNEX A

Capitalized Terms used in the Camtek Ltd. 2018 Share Incentive Plan, shall have the meanings set forth below:

	1.1	
“Administrator” – means (i) the Board; or (ii) the Company’s Compensation Committee or a committee of the Board appointed by the Board for the purpose of the administration of the Plan, if appointed, to the extent acting in accordance with specific authorization and guidelines provided by the Board for such purpose and subject to any restriction under applicable law.

	1.2	
“Affiliated Company” – means any present or future entity (a) which holds a controlling interest in the Company; (b) in which the Company holds a controlling interest; (c) in which a controlling interest is held by another entity, who also holds a controlling interest in the Company; or (d) which has been designated an “Affiliated Company” by resolution of the Board.

	1.3	
“Award” – means any equity related award, including any type of Option and/or Restricted Share and/or Restricted Share Unit and/or any other Share-based award and/or other right or benefit, granted to a Grantee under the Plan, including any equity related award that is Performance Based Award.

	1.4	
“Award Agreement” – with respect to any Grantee, means a written agreement or other written instrument, executed by and between the Company and the Grantee, which shall set forth the terms and conditions with respect to the Awards. The Award Agreement will be in such form approved by the Administrator, which may be a general form or a specific form with respect to a certain Grantee.

	1.5	
“Board” – means the Board of Directors of the Company.

	1.6	
“Cause” – means (a) the conviction of the Grantee for any felony involving moral turpitude or affecting the Company or any Affiliated Company; (b) the embezzlement of funds of the Company or any Affiliated Company; (c) any breach of the Grantee’s fiduciary duties or duties of care towards the Company or any Affiliated Company (including without limitation any disclosure of confidential information of the Company or any Affiliated Company or any breach of a non-competition undertaking); (d) any conduct in bad faith reasonably determined by the Board to be materially detrimental to the Company or, with respect to any Affiliated Company, reasonably determined by the Board of Directors of such Affiliated Company to be materially detrimental to either the Company or such Affiliated Company; or (e) any other event classified under any applicable agreement between the Grantee and the Company or the Affiliated Company, as applicable, as a “Cause” for termination or by other language of similar substance.

	1.7	
“Companies Law” – means the Israeli Companies Law, 5759 – 1999, as amended from time to time, and the rules and regulations promulgated thereunder.

	1.8	
“Company” – means Camtek Ltd., a company organized under the laws of the State of Israel.

 

  

	1.9	
“Corporate Transaction” – means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

		(i)	
a sale or other disposition of all or substantially all, as determined by the Board in its discretion, of the consolidated assets of the Company and its subsidiaries;

		(ii)	
a sale or other disposition of at least fifty percent (50%) of the outstanding securities of the Company;

		(iii)	
a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

		(iv)	
a merger, consolidation or reorganization following which the Company is the surviving corporation but the Ordinary Shares of the Company outstanding immediately preceding the merger, consolidation or reorganization are converted or exchanged by virtue of the merger, consolidation or reorganization into other property, whether in the form of securities, cash or otherwise.

	1.10	
“Date of Grant” – means the date determined by the Administrator to be the effective date of the grant of Awards to a Grantee, or, if the Administrator has not determined such effective date, the date of the resolution of the Administrator approving the grant of such Awards. Provided, however, that the Date of Grant shall not occur prior to the date on which the Company has obtained all approvals required in connection with the grant of such Awards, including without limitation, where applicable, an approval by the applicable stock exchange with respect to the listing of the Exercised Shared for trading at such a stock exchange.

	1.11	
“Disability” – means the inability to engage in any substantial gainful occupation for which the Grantee is suited by education, training or experience, by reason of any medically determinable physical or mental impairment that is expected to result in such person’s death or to continue for a period of six (6) consecutive months or more.

	1.12	
“Double Trigger” - means that if following the closing of a Corporate Transaction: (i) the Officer Holder is not offered to continue to be employed by the Company (or the surviving entity following the merger) in a comparable or more senior functions, duties or responsibilities and/or on comparable or favorable terms; or (ii) within 12 months following the closing of said Corporate Transaction the Office Holder's employment with the Company (or the surviving entity following merger) is terminated not for Cause (as such term is defined in such Office Holder’s applicable employment agreement); or (iii) within 12 months following the closing of said Corporate Transaction the Company (or the surviving entity following the merger) initiates a demotion (or a notice thereof) in the Office Holder's functions, duties or responsibilities and/or in the Office Holder’s compensation, then, under such circumstances, the applicable Office Holder shall be entitled to acceleration of the vesting of his Awards.

	1.13	
“Exercise Notice” – means a written notice of exercise of an Award, delivered by a Grantee to the Company.

	1.14	
“Exercise Price” – means (i) the purchase price per Share subject to an Award; or (ii) the nominal par value per Share to be paid upon the vesting of an Award that does not require exercise by the Grantee, to the extent the Grantee is required to pay such nominal value hereunder, as applicable.

	1.15	
“Exercised Share” – means a Share issued upon the exercise of an Award or vesting of an Award, as applicable, or, if applicable, a freely transferable Share issued to a Grantee not resulting from another type of Award.

 

  

	1.16	
“Fair Market Value” - for as long as the Company's Shares are traded on NASDAQ, the fair market value shall be equal to the average of the closing prices of one Share of the Company, as quoted on the NASDAQ market, during the 30 consecutive calendar days preceding the Date of Grant.

	1.17	
“Grantee” – a person or entity to whom Awards are granted under the Plan.

	1.18	
“Law” – means any laws, rules and/or regulations and/or rules, regulations, guidelines and/or requirements of any relevant securities and exchange and/or tax commission and/or authority and/or any relevant stock exchange or quotations systems.

	1.19	
“Mandatory Law” – means provisions of Law which may not be contrarily addressed or regulated by the determination and/or consent of the Company and/or other parties.

“Office Holder” - includes the chief executive officer, the chief business manager, a vice general manager, deputy general manager or any other person fulfilling any of the foregoing positions (even if such person’s title is different), as well as a director or any manager that reports directly to the chief executive officer.

	1.20	
“Option” – means an option granted within the framework of this Plan, which imparts the right to purchase one Share.

	1.21	
“Plan” – means this Camtek Ltd. 2018 Share Incentive Plan, as may be amended from time to time as set forth herein.

	1.22	
“Restricted Share” – means a Share granted within the framework of this Plan that is not fully transferable until certain conditions have been met all pursuant to Section 9 of the Plan.

	1.23	
“Restricted Share Unit” or “RSU” – means a Restricted Share Unit granted within the framework of this Plan, which imparts the right, subject to the terms of the Plan, to receive one Share all pursuant to Section 8 of the Plan.

	1.24	
“Sale” – means the sale of all or substantially all of the issued and outstanding share capital of the Company.

	1.25	
“Service” – means a Grantee’s employment or engagement by the Company or an Affiliated Company. Service shall be deemed terminated upon the effective date of the termination of the employment/engagement relationship. A Grantee’s Service shall not be deemed terminated or interrupted solely as a result of a change in the capacity in which the Grantee renders Service to the Company or an Affiliated Company (i.e., as an employee, officer, director, consultant, etc.); nor shall it be deemed terminated or interrupted due solely to a change in the identity of the specific entity (out of the Company and its Affiliated Companies) to which the Grantee renders such Service, provided that there is no actual interruption or termination of the continuous provision by the Grantee of such Service to any of the Company and its Affiliated Companies. Furthermore, a Grantee’s Service with the Company or Affiliated Company shall not be deemed terminated or interrupted as a result of any military leave, sick leave, or other bona fide leave of absence taken by the Grantee and approved by the Company or such Affiliated Company by which the Grantee is employed or engaged, as applicable; provided, however, that if any such leave exceeds ninety (90) days, then on the ninety-first (91st) day of such leave the Grantee’s Service shall be deemed to have terminated unless the Grantee’s right to return to Service with the Company or such Affiliated Company is secured by statute or contract. Notwithstanding the foregoing, unless otherwise designated by the Company or Affiliated Company, as the case may be, or required by Law, time spent in a leave of absence shall not be treated as time spent providing Service for the purposes of calculating accrued vesting rights under the vesting schedule of the Options. Without derogating from the aforesaid, the Service of a Grantee to an Affiliated Company shall also be deemed terminated in the event that such Affiliated Company for which the Grantee performs Service ceases to fall within the definition of an “Affiliated Company” under this Plan, effective as of the date said Affiliated Company ceases to be such. In all other cases in which any doubt may arise regarding the termination of a Grantee’s Service or the effective date of such termination, or the implications of absence from Service on vesting, the Administrator, in its discretion, shall determine whether the Grantee’s Service has terminated and the effective date of such termination and the implications, if any, on vesting.

 

  

	1.26	
“Share” – means an Ordinary Share of the Company, par value of NIS 0.01 each, to which, subject to the provisions herein, are attached the rights specified in the Company’s Articles of Association, as may be amended from time to time

	1.27	
“Start Date” – means the Date of Grant, unless otherwise determined by the Administrator (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law), and provided accordingly in the applicable Award Agreement.

	1.28	
“Sub-Plan” - any supplements or sub-plans to the Plan adopted by the Board, applicable to Grantees employed in a certain country or region or subject to the laws of a certain country or region, as deemed by the Board to be necessary or desirable to comply with the laws of such region or country, or to accommodate the tax policy or custom thereof, which, if and to the extent applicable to any particular Grantee, shall constitute an integral part of the Plan.

	1.29	
“Vested Award” – means an Award which the Grantee is entitled to exercise into Exercised Shares in accordance with the provisions of Section 7.2 of the Plan or, if inconsistent with the provisions of Section 7.2 of the Plan, the provisions of the Award Agreement of such Grantee.

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