Document:

ex_143029.htm

Exhibit 10.2

 

AWARD AGREEMENT

 

This Award Agreement (this “Agreement”) is made as of January 27, 2018 (“Grant Date”), between TSS, Inc. (the “Company”) and Kieran Brennan (the “Executive”). The Board of Directors of the Company has authorized the grant to the Executive of (a) restricted shares (the “Restricted Stock”) of the Company’s common stock (“Common Stock”) and (b) an option (the “Option”) to purchase shares of Common Stock, subject to the terms and provisions of this Agreement. For the avoidance of doubt, neither the Restricted Stock nor the Option is being granted under the Company’s 2015 Omnibus Incentive Compensation Plan. The Company and the Executive have entered into that certain Executive Employment Agreement effective as of the date hereof (the “Employment Agreement”). Capitalized terms used in this Agreement and not otherwise defined in this Agreement shall have the meanings set forth in the Employment Agreement.

 

The Company and the Executive agree as follows:

 

	
			1.

				
			The Company grants to the Executive, subject to the terms and conditions of this Agreement, 200,000 shares of Restricted Stock. The Executive may exercise full voting rights with respect to the Restricted Stock. The Restricted Stock shall be forfeited automatically on the Termination Date. Unless forfeited in accordance with the immediately preceding sentence, the following shares of Restricted Stock shall become fully vested and no longer subject to forfeiture in accordance with the following:

			

 

(a) all of the shares of Restricted Stock shall become fully vested upon the occurrence of a Change in Control of the Company,

 

(b) 100,000 shares of Restricted Stock shall become fully vested on January 17, 2019, and

 

(e) 100,000 shares of Restricted Stock shall become fully vested on January 17, 2020.

 

The Company shall retain any certificates representing the Restricted Stock until the Restricted Stock becomes fully vested and no longer subject to forfeiture.

 

	
			2.

				
			The Company grants to the Executive, subject to the terms and conditions of this Agreement, an Option to purchase 250,000 shares of Common Stock (“Option Shares”) in installments as set forth in the following sentence at an exercise price per share of $0.49 (the “Exercise Price”), which is equal to the volume weighted average price per share of the Common Stock reported daily on the OTCQB marketplace during the 30 calendar days immediately preceding the Grant Date. The Option shall become exercisable and may be exercised in installments in accordance with the following schedule: (a) with respect to 83,333 Option Shares, on January 17, 2019; (b) with respect to 83,333 Option Shares, on January 17, 2020; and (c) with respect to 83,334 Option Shares, on January 17, 2021. Notwithstanding the foregoing, the Option shall become immediately exercisable upon the occurrence of a Change in Control of the Company. The Option may not be exercised after January 17, 2028.

			

 

 

 

 

	
			3.

				
			Except as otherwise set forth in this Agreement, the Option shall terminate effective the close of business on the Termination Date, except (a) to the extent previously exercised, (b) as provided in paragraph 5 of this Agreement, and (c) in the case termination of employment by the Company other than for Cause, for a period of 60 days thereafter the Executive shall be entitled to exercise that portion of the Option that was exercisable at the close of business on the Termination Date, provided that in no event may any portion of the Option be exercised after January 17, 2028.

			

 

	
			4.

				
			The Option is nontransferable otherwise than by will or the laws of descent and distribution, and, during the lifetime of the Executive, the Option may be exercised only by the Executive or, during the period the Executive is under a legal disability, by the Executive’s guardian or legal representative. Except as provided above, neither the Restricted Stock nor the Option may be assigned, transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.

			

 

	
			5.

				
			If the Executive dies without the Option having been exercised in full, the executor or administrator of the Executive’s estate or the person who inherits the right to exercise the Option by bequest or inheritance shall have the right within three years of the Executive’s death to purchase the number of Option Shares the Executive was entitled to purchase at the date of death, after which the Option will lapse, provided that in no event may the Option be exercised after January 17, 2028.

			

 

	
			6.

				
			The Option shall be exercised by the delivery of a written notice of exercise to the Company, setting forth the number of Option Shares with respect to which the Option is to be exercised, accompanied by full payment for the Option Shares. The Exercise Price shall be payable to the Company in full either: (a) in cash or its equivalent, (b) by tendering previously acquired shares of Common Stock having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price (provided that the shares that are tendered must have been held by the Executive for at least six (6) months prior to their tender to satisfy the Exercise Price), (c) by withholding shares of Common Stock issuable pursuant to the exercise of the Option having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price, or (d) such other methods as the Company shall authorize. The Company may permit the exercise of the Option upon the receipt from a third party of payment (or a commitment to make payment) in full in cash for the Exercise Price prior to the issuance of the Option Shares in the manner and subject to the procedures as may be established by the Company. As soon as practicable after receipt of a written notification of exercise and full payment, the Company shall deliver to the Executive, in the Executive’s name, certificates in an appropriate amount based upon the number of Option Shares purchased under the Option. For purposes of this Agreement, “Fair Market Value” means the fair market value of a share of Common Stock as determined in good faith by the Company’s Board of Directors.

			

 

	
			7.

				
			The Option may be exercised non-sequentially in respect of any other option to acquire Common Stock granted to the Executive, whether in the Executive’s possession or hereafter acquired.

			

 

	
			8.

				
			At the time the Restricted Stock vests or the Option is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Executive hereby authorizes withholding from payroll or any other payment of any kind due the Executive and otherwise agrees to make adequate provision for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in connection with the Restricted Stock or the Option. The Company may require the Executive to make a cash payment to cover any withholding tax obligation as a condition of issuance of share certificates representing Option Shares or upon the vesting of Restricted Stock.

			

 

2

 

 

The Company may permit the Executive to satisfy, in whole or in part, any withholding tax obligation that may arise in connection with the vesting of Restricted Stock or the exercise of the Option either by electing to have the Company withhold from the shares of Common Stock to be issued upon vesting or exercise, as the case may be, that number of shares of Common Stock, or by electing to deliver to the Company already-owned shares of Common Stock, in either case having a Fair Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due. If the Executive elects to satisfy the tax withholding obligation by having the Company withhold shares of Common Stock upon the vesting of the Restricted Stock or the exercise of the Option, the number of shares of Common Stock to be withheld shall be based on the minimum estimated federal, state and local taxes payable by the Exercise as a result of the vesting of the Restricted Stock or the exercise of the Option.

 

	
			9.

				
			The Executive acknowledges and agrees that any sales of shares of Common Stock shall be made in accordance with the requirements of the Securities Act of 1933, as amended. The Company intends to file a registration statement with the Securities and Exchange Commission with respect to the Common Stock to be issued hereunder. The Company intends to maintain this registration statement but has no obligation to do so. If the Company fails to file such registration statement or the registration statement ceases to be effective for any reason or there is a restriction under foreign law, the Executive will not be able to transfer or sell any of the shares of Common Stock issued to the Executive under this Agreement unless exemptions from registration or filings under applicable securities laws are available. The Company shall not be obligated to either issue the Common Stock or permit the resale of any shares of Common Stock if such issuance or resale would violate any applicable securities law, rule or regulation.

			

 

	
			10.

				
			Nothing in this Agreement shall interfere with or limit in any way the right of the Company to terminate the Executive’s employment at any time, nor confer upon the Executive any right to continue in the employ of the Company.

			

 

	
			11.

				
			No provision of this Agreement may be amended unless such amendment is in writing and signed by the Executive and the Company.

			

 

	
			12.

				
			All obligations of the Company under this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

			

 

	
			13.

				
			To the extent not preempted by federal law, this Agreement shall be construed in accordance with and governed by the laws of the State of Delaware, without giving effect to the conflict of laws principles thereof.

			

 

3

 

 

The undersigned parties have executed this Agreement as of the day and year first above written.

 

	 	TSS, INC.	 
	 	 	 
	 	By:	/s/ Anthony Angelini	 
	 	 	Anthony Angelini	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Kieran Brennan	 
	 	Kieran Brennan	 

 

4Exhibit 10.1

 

 

 

ASSET PURCHASE AGREEMENT

 

by and between

 

CBM BIOPHARMA, INC.

as Seller

 

and

 

SPHERIX INCORPORATED

as Buyer

 

Dated as of May 15, 2019

 

     

    

    

 

ASSET PURCHASE AGREEMENT

 

This ASSET PURCHASE
AGREEMENT (this “Agreement”) is made and entered into as of May 15, 2019, by and between CBM BIOPHARMA,
INC., a Delaware corporation (“Seller”), and SPHERIX INCORPORATED, a Delaware corporation
(“Buyer”).

 

RECITALS

 

WHEREAS, Seller
is engaged in the business of licensing certain inventions, including, but not limited to, patents and other intellectual property
related to pioneering drug compounds that were developed at the University of Wake Forest and the University of Texas at Austin,
in the areas of acute myeloid leukemia (AML), acute lymphoblastic leukemia (ALL), acral lentiginous melanoma and pancreatic cancer
(the “Business”);

 

WHEREAS, Seller
desires to sell and cause to be transferred to Buyer, and Buyer desires to purchase and accept the transfer from Seller, substantially
all of Seller’s assets, properties and rights, subject to the terms and conditions set forth herein; and

 

WHEREAS, certain
capitalized terms used herein are defined in Annex I.

 

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

 

ARTICLE
I

PURCHASE AND SALE OF PURCHASED ASSETS

 

1.1.         Purchase
and Sale of Purchased Assets. Upon the terms and subject to the conditions set forth herein, and in reliance upon the representations
and warranties contained herein, at the Closing, Seller will sell, convey, assign, transfer and deliver to Buyer, and Buyer will
purchase and acquire from Seller, free and clear of any and all Liens, all of Seller’s rights, title and interests in and
to all of the assets, properties, contracts and rights of Seller (other than the Excluded Assets) (collectively, the “Purchased
Assets”), including the following to the extent they exist:

 

(a)      all
rights of Seller in, to and under any Contract of any kind or character to which Seller is a party, or by which Seller or any of
the Purchased Assets may be bound or affected (other than the Excluded Contracts) (each, a “Purchased Contract”);

 

(b)      all
“general intangibles” (as defined in the Uniform Commercial Code);

 

(c)      all
rights, if any, to any Intellectual Property, including all Patents, Copyrights, Trade Secrets, inventions and processes, Trademarks,
trademarks, service marks, logos, brand names, assumed names, domain names, URLs, websites, software, technology rights and licenses,
and all registrations and applications therefor, together with the goodwill symbolized thereby;

 

(d)      all
of the following which pertain to the Purchased Assets, Assumed Liabilities or the Business: books, records, manuals and other
materials, files, originals and copies of all Purchased Contracts, purchase orders, invoices, items of payment, tax receipts, computer
tapes, disks, other storage media and records, advertising matter, catalogues, price lists, correspondence, memoranda, forecast,
price lists, sales records, customer and client lists, customer relationship management data, vendor and supplier lists, financial
records, mailing lists, lists of customers and suppliers, distribution lists, photographs, sales and promotional materials and
records, purchasing materials and records, personnel records, credit records, quality control records and procedures, research
and development files, records, data, trademark files and disclosures, media materials and plates, sales order files and litigation
files (other than litigation files exclusively relating to Excluded Assets or Retained Liabilities);

 

     

    

    

 

(e)      all
rights to indemnification, warranties, guarantees, claims, causes of action, choses in action, rights of recovery, rights of setoff,
rights of recoupment and other rights of any kind against suppliers, manufacturers, contractors or other third parties relating
to the Purchased Assets or the Assumed Liabilities; and

 

(f)       all
goodwill associated with the Business or the Purchased Assets.

 

1.2.         Excluded
Assets. Notwithstanding anything to the contrary contained in Section 1.1, Seller shall retain all of its right, title
and interest in and to, and shall not sell, transfer, assign, convey or deliver to Buyer at the Closing, and the Purchased Assets
shall not include, the following (collectively, the “Excluded Assets”):

 

(a)      any
cash or cash equivalents, including any marketable securities, of Seller;

 

(b)      any
bank or brokerage accounts of Seller (the “Retained Bank Account”);

 

(c)      the
Organizational Documents, qualification to conduct business as a foreign corporation, arrangements with registered agents relating
to foreign qualifications, taxpayer and other identification numbers, minute books, equity interests transfer books, books and
records relating to Taxes, and any other documents relating to the organization, maintenance and existence of Seller as a corporation;

 

(d)      any
rights of Seller under this Agreement or any Ancillary Document to which Seller is a party or any other agreement between Seller
and Buyer;

 

(e)      all
rights of Seller under any Contract that is listed on Schedule 1.2(e) (collectively, the “Excluded Contracts”);

 

(f)       all
Tax assets (including duty and Tax refunds and prepayments and Tax losses of Seller incurred prior to the Closing Date) of Seller
or any of its Affiliates;

 

(g)      all
rights to any action, suit or claim of any nature available to or being pursued by Seller, whether arising by way of counterclaim
or otherwise that are unrelated to the Purchased Assets; and

 

(h)      any
other assets, properties and rights used by Seller in its businesses other than the Business.

 

1.3.         Assumption
of Assumed Liabilities. On the terms and subject to the conditions contained in this Agreement, effective at the Closing, Buyer
will assume and thereafter pay, perform or otherwise discharge only the following Liabilities of Seller (collectively, the “Assumed
Liabilities”):

  

(a)      all
obligations of Seller to be performed under the Purchased Contracts (excluding, for the avoidance of doubt, Excluded Contracts)
for periods after the Closing, but excluding any Liability, whether incurred or arising prior to, on or after the Closing Date,
in connection with any actual or alleged breach, default or other failure to perform under any Purchased Contract or violation
of Law, in any case, occurring or alleged to have occurred at or prior to the Closing;

 

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(b)      all
Liabilities and obligations to the extent arising from or related to the operation of the Business after the Closing (other than
in connection with the Purchased Contracts), but excluding any Liability, whether incurred or arising prior to, on or after the
Closing Date, in connection with any actual or alleged breach, default or other failure to perform under any Purchased Contract
or violation of Law occurring or alleged to have occurred at or prior to the Closing;

 

(c)      all
liabilities and obligations of Buyer or its Affiliates relating to employee benefits, compensation or other arrangements with respect
to any Transferred Employee arising on or after the Closing but not including any bonus payments payable thereunder as a result
of the transactions contemplated hereunder (ie. change of control);

 

(d)      all
liabilities and obligations for (i) Taxes relating to the Business, the Purchased Assets or the Assumed Liabilities for any taxable
period ending after the Closing Date and (ii) Taxes for which Buyer is liable pursuant to this Agreement;

 

(e)      all
other liabilities and obligations arising out of or relating to Buyer’s ownership or operation of the Business and the Purchased
Assets on or after the Closing;

 

(f)       all
liabilities and obligations of Seller set forth on Section 1.3(f) of the Disclosure Schedules.

 

1.4.         Retained
Liabilities. Except for the Assumed Liabilities as provided in Section 1.3, Buyer shall not assume and shall not be
responsible for, any Liabilities of Seller (or any Affiliate or predecessor thereof), all of which Liabilities shall be and remain
the sole responsibility of Seller (or its Affiliate) (the “Retained Liabilities”), including all of the
following Liabilities:

 

(a)      any
trade payables and other current liabilities and any Liabilities under any Purchased Contract for any period at or prior to the
Closing (regardless of any contrary provisions in any instrument of assumption or conveyance), including for such purposes any
Liabilities that arise as a result of the transactions contemplated hereunder, including bonus payments for a change of control;

 

(b)      any
Liability, whether incurred or arising prior to, on or after the Closing Date, in connection with any actual or alleged breach,
default or other failure to perform under any Purchased Contract or violation of Law occurring or alleged to have occurred at or
prior to the Closing;

 

(c)      all
Liabilities in respect of Actions of or involving third parties against Seller arising out of incidents or events occurring at
or prior to the Closing, including all workers compensation, general liability and other insurance claims with an incident date
on or prior to the Closing Date;

  

(d)      any
Liability for any Indebtedness;

 

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(e)      any
labor or employment related Liabilities (including accrued vacation pay, and severance and other payments payable to Employees
in connection with termination of such employment and all bonuses or other payments payable to such Employees as a result of the
transactions contemplated hereunder), Action, judgments, damages, costs, expenses (including any Action for severance pay, accrued
vacation pay or wrongful discharge), grievances, unfair labor practices and violations of any applicable Law or Order by reason
of any act, omission or matter occurring at or prior to the Closing relating to any Employees or their respective Representatives;

 

(f)       any
Liability with respect to Employees that do not become Transferred Employees at the Closing in accordance with Section 6.7;

 

(g)      any
Liability with respect to self-insured retention, retrospective premiums and/or deductibles, if applicable, for claims arising
from or relating to the period at or prior to the Closing;

 

(h)      all
Taxes now or hereafter owed by Seller, or attributable to the Business or the ownership, operation or use of the Purchased Assets
relating to any period up to and including the Closing Date, including liabilities and obligations for Transfer Taxes resulting
from the transactions contemplated by this Agreement;

 

(i)       any
Liability imposed upon or incurred by Buyer or its Affiliates by operation of any applicable Law or Order which Liability, if not
for the operation of such Law or Order, would have been a Retained Liability;

 

(j)       any
Liabilities of Seller under this Agreement or any Ancillary Document to which Seller is a party or any other agreement between
Seller and Buyer;

 

(k)      any
Liability to the extent related to an Excluded Asset (including Excluded Contracts); and

 

(l)       any
Liability relating to or arising from the Business for periods at or prior to the Closing.

 

1.5.         Consents
Not Obtained. In the event that Seller fails to obtain prior to the Closing (or otherwise fails to have in full force and effect
at the Closing) any consent (including any consent to an assignment of a Contract), Permit, waiver, authorization, order or other
approval required to consummate the transactions contemplated by this Agreement without breaching a Purchased Contract or otherwise
adversely affecting the ability of Buyer to operate the Business after the Closing or the rights of Buyer with respect to the Purchased
Assets, the Assumed Liabilities or otherwise under this Agreement (any of the foregoing, a “Necessary Consent”),
this Agreement shall not constitute an agreement to sell, convey, assign, transfer or deliver any interest in any such instrument,
Contract, Permit or other Purchased Asset for which a Necessary Consent is not obtained and in effect as of the Closing, and Seller
and Buyer shall, from and after the Closing, continue to use its commercially reasonable efforts to obtain any such Necessary Consent
for the benefit of Buyer under the terms and conditions substantially the same as those existing under the applicable Purchased
Asset as of the Closing. Once a Necessary Consent is obtained, the applicable Purchased Asset will be deemed to have been automatically
assigned and transferred to Buyer on the terms set forth in this Agreement, effective as of the date of assignment. If any Necessary
Consent is not obtained and in full force and effect as of the Closing and as a result thereof, the assignment or transfer of a
Purchased Asset is ineffective or the rights or obligations of Buyer with respect to a Purchased Asset or Assumed Liability or
Buyer’s ability to operate the Business after the Closing are otherwise adversely affected, at Buyer’s request, Seller
will enter into a mutually agreeable and reasonable arrangement with Buyer under which (i) Buyer will obtain the benefits and assume,
perform and/or promptly reimburse Seller for the obligations thereunder (to the extent otherwise constituting Assumed Liabilities)
in accordance with this Agreement, including subcontracting, sublicensing or subleasing to Buyer, or (ii) Seller will enforce for
the benefit, and at the direction, of Buyer any and all rights of Seller thereunder, with Buyer assuming Seller’s obligations
thereunder (to the extent otherwise constituting Assumed Liabilities).

 

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ARTICLE
II

PURCHASE PRICE

 

2.1.         Purchase
Price. Subject to the Closing, in consideration of the sale, assignment, transfer and delivery to Buyer of the Purchased Assets
in accordance with and subject to the terms and conditions of this Agreement, at the Closing, Buyer shall:

 

(a)       assume
the Assumed Liabilities in accordance with and subject to the terms and conditions of this Agreement;

 

(b)       pay
to Seller an amount equal to Eight Million U.S. Dollars ($8,000,000) (the “Purchase Price”) consisting
of (i) an aggregate number of shares of common stock, par value $0.0001 per share, of Buyer (the “Buyer Common Stock”)
as shall be equal to Seven Million U.S. Dollars ($7,000,000) (the “Stock Consideration”) consisting of
(A) an aggregate number of shares of Buyer Common Stock equal to 9.9% of the issued and outstanding shares of Buyer Common Stock
(“Common Stock”) as of the Closing Date (the “Common Stock Consideration”),
and (B) such number of shares of Buyer Preferred Stock (the “Preferred Stock Consideration”) as shall
be equal to the Stock Consideration less the value of the shares of Buyer Common Stock comprising the Common Stock Consideration,
with each share constituting the Stock Consideration valued at Buyer Common Stock Price, and (ii) cash consideration in the amount
of One Million U.S. Dollars ($1,000,000) (the “Cash Consideration Amount”, and together with the Stock
Consideration, the “Purchase Consideration”);

 

(c)       hold
back and retain the Cash Consideration Amount from the Purchase Consideration. The Cash Consideration Amount shall become payable
to Seller upon the consummation by Buyer of the first Qualified Financing after the Closing Date. Upon consummation of a Qualified
Financing by Buyer, Buyer shall retain the first Two Million Dollars ($2,000,000) of gross proceeds received in connection with
such Qualified Financing and Seller shall receive 100% of the gross proceeds of such Qualified Financing received by Buyer in excess
of Two Million Dollars ($2,000,000) as well as the gross proceeds of any subsequent equity financings by Buyer until the Cash Consideration
Amount is satisfied in full. The Cash Consideration Amount shall be paid by wire transfer of immediately available funds to such
account or accounts as designated by Buyer, within five (5) Business days of the closing of the applicable Qualified Financing
and/or equity financing; and

 

(d)       deposit
with the Escrow Agent such number of shares of Buyer Preferred Stock as shall equal ten percent (10%) of the Stock Consideration
deliverable to Seller (including any equity securities paid as dividends or distributions with respect to such shares or into which
such shares are exchanged or converted, the “Escrow Shares”) to hold in escrow in a segregated escrow
account (the “Escrow Account”) in accordance with the terms of the Escrow Agreement and this Agreement.

  

2.2.         [RESERVED]

 

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2.3.         Escrow.

 

(a)       At
the Closing, Buyer and Seller shall enter into an Escrow Agreement in the form attached as Exhibit A hereto (the “Escrow
Agreement”) with a mutually agreeable escrow agent (together with any successor escrow agent, the “Escrow
Agent”), pursuant to which Buyer shall, at the Closing, deliver, or cause to be delivered, the Escrow Shares to the
Escrow Agent, to be held by the Escrow Agent in the Escrow Account, together with any interest and earnings thereon, and disbursed
therefrom in accordance with the terms and conditions of this Agreement and the Escrow Agreement. The Escrow Shares shall serve
as a source of security for Seller’s obligations after the Closing under this Agreement, including its indemnification obligations
under ARTICLE VII.

 

(b)       The
Escrow Shares shall no longer be subject to any claim that is first made after the date which is six (6) months after the Closing
Date (the “Expiration Date”); provided, however, with respect to any claims made in accordance
with this Agreement on or prior to the Expiration Date (including those that are revised or adjusted in accordance with ARTICLE
VII after the Expiration Date) that remain unresolved as of the end of the Expiration Date (“Pending Claims”),
all or a portion of the Escrow Shares reasonably necessary to satisfy such Pending Claims (as determined with respect to any indemnification
claims based on the amount of the indemnification claim included in the Claim Notice provided by a Buyer Indemnitee under ARTICLE
VII, as it may be revised or adjusted in accordance with ARTICLE VII) shall remain in the Escrow Account until such
time as such Pending Claim shall have been finally resolved pursuant to the provisions of this Agreement. After the Expiration
Date, any Escrow Shares remaining in the Escrow Account that are not subject to (i) Pending Claims or (ii) resolved but unpaid
claims in favor of Buyer or other Buyer Indemnitees, shall be disbursed by the Escrow Agent to Seller, after receipt by the Escrow
Agent of joint written instructions by Buyer and Seller. Promptly after the final resolution of all Pending Claims and the payment
of all obligations in connection therewith, the Escrow Agent shall disburse any Escrow Shares remaining in the Escrow Account to
Seller upon receipt of joint written instruction by Buyer and Seller to the Escrow Agent.

 

ARTICLE
III

CLOSING

 

3.1.         Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) will take place at the
offices of Ellenoff, Grossman & Schole LLP, 1345 Avenue of the Americas, New York, NY 10105, on a date and at a time to be
agreed upon by Seller and Buyer, which date shall be no later than the second (2nd) Business Day after all the Closing conditions
to this Agreement have been satisfied or waived. By mutual agreement of the parties, the Closing may take place by conference call
and facsimile (or other electronic transmission of signature pages) with exchange of original signatures by mail if requested.
The date on which the Closing actually occurs will be referred to as the “Closing Date”. The parties
agree that to the extent permitted by applicable Law and GAAP, the Closing will be deemed effective as of 11:59 p.m. (New York
City time) on the Closing Date.

 

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

 

(a)       the
Bill of Sale and Assignment and Assumption Agreement between Buyer and Seller in the form attached as Exhibit B hereto (the
“Bill of Sale”), duly executed by Seller, and any other instruments of transfer reasonably requested
by Buyer to evidence the transfer of the Purchased Assets to Buyer (including assignments with respect to any Intellectual Property
registered, recorded or filed with any Governmental Authority, in form suitable for registration, recordation or filing with such
Governmental Authority), in each case duly executed by Seller;

 

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(b)       the
Escrow Agreement between Buyer, Seller and Escrow Agent, duly executed by Seller and the Escrow Agent;

 

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

 

(d)       a
certificate from Seller’s secretary certifying to (i) the resolutions of Seller’s board of directors (or similar governing
board or Person) and stockholders authorizing the execution, delivery and performance of this Agreement and each of the Ancillary
Documents to which it is a party or by which it is bound, and the consummation of each of the transactions contemplated hereby
and thereby, and (ii) the incumbency of officers authorized to execute this Agreement or any Ancillary Document to which Seller
is a party or by which it is bound;

 

(e)       a
certificate from Seller’s chief executive officer certifying as to the amount of the Purchased Receivables as of the Closing,
along with reasonable documentation therefor; and

 

(f)        a
leak-out agreement of Seller in form of Exhibit E attached hereto; and

 

(g)       such
other documents and instruments as may be required by any other provision of this Agreement or as may reasonably be required to
consummate the transactions contemplated by this Agreement and the Ancillary Documents.

 

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

 

(a)       Certificates
evidencing the Common Stock Consideration and the Preferred Stock Consideration in the amounts required by Section 2.1 to
be delivered by Buyer at the Closing;

 

(b)       the
Bill of Sale duly executed by Buyer, and any other instruments of transfer reasonably requested by Seller to evidence the assumption
of the Assumed Liabilities by Buyer, in each case duly executed by Buyer;

 

(c)       a
copy of the Certificate of Designation evidencing the Preferred Stock Consideration certified as of a date no later than the Closing
Date from the proper state official of its jurisdiction of organization;

 

(d)       each
of the following documents, duly executed by Buyer: (i) the Escrow Agreement; and (ii) the Employee Agreements with the Transferred
Employees; and

 

(e)       a
certificate from Buyer’s secretary certifying to (i) the resolutions of Buyer’s board of directors authorizing the
execution, delivery and performance of this Agreement and each of the Ancillary Documents to which it is a party or by which it
is bound, and the consummation of each of the transactions contemplated hereby and thereby, and (ii) the incumbency of officers
authorized to execute this Agreement or any Ancillary Document to which Buyer is a party or by which it is bound.

 

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ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller represents and
warrants to Buyer that the statements contained in this ARTICLE IV, and the information in the Disclosure Schedules referenced
therein, are true and correct as of the date hereof and the Closing, except to the extent that a representation and warranty contained
in this ARTICLE IV expressly states that such representation and warranty is current as of an earlier date and then such
statements contained in this ARTICLE IV are true and correct as of such earlier date or time:

 

4.1.       Organization
and Qualification. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State
of Delaware, and has full corporate power and authority to own the assets owned by it and conduct its business as and where it
is being conducted by it. Seller is duly licensed or qualified to do business, and is in good standing as a foreign entity, in
all jurisdictions in which its assets or business makes such licensing or qualification necessary.

 

4.2.       Authorization.
Seller has full corporate power and authority to enter into this Agreement and the Ancillary Documents to which it is a party and
to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution
and delivery of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of Seller, including requisite approval by Seller’s
board of directors (or similar governing board or Person) and stockholders. This Agreement and each Ancillary Document to which
Seller is a party has been duly executed and delivered by Seller and constitutes a legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and general principles
of equity (regardless of whether enforceability is considered in a proceeding at law or in equity).

 

4.3.       Subsidiaries.
Seller does not have any Subsidiaries or have any ownership interest in any other Person; provided, that, notwithstanding anything
to the contrary contained in this Agreement, in the event of the breach of the foregoing representation and warranty, without limiting
any rights or remedies available under this Agreement or applicable Law, any reference in this Agreement to the Business or the
assets, properties, contracts, rights, Liabilities, business, operations, condition or employees of Seller will include those of
its Subsidiaries to the extent reasonably applicable.

 

4.4.       Non-Contravention.
Neither the execution, delivery and performance of this Agreement or any Ancillary Documents by Seller, nor the consummation of
the transactions contemplated hereby or thereby, will (a) violate or conflict with, any provision of the Organizational Documents
of Seller, (b) violate or conflict with any Law or Order to which Seller, the Business or the Purchased Assets are bound or subject,
(c) with or without giving notice or the lapse of time or both, breach or conflict with, constitute or create a default under,
or give rise to any right of termination, cancellation or acceleration of any obligation or result in a loss of a material benefit
under, or give rise to any obligation of Seller (or Buyer as the assignee thereof) to make any payment under, or to the increased,
additional, accelerated or guaranteed rights or entitlements of any Person under, any of the terms, conditions or provisions of
any Contract, agreement, or other commitment to which Seller is a party or by which Seller, the Business or the Purchased Assets
are bound, (d) result in the imposition of a Lien on any Purchased Asset or (e) require any filing with, or Permit, consent or
approval of, or the giving of any notice to, any Governmental Authority or other Person.

 

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4.5.       Absence
of Changes. Since December 31, 2018, (a) Seller has conducted its business only in the Ordinary Course and (b) there has not
been any change or development which, individually or in the aggregate, has had, and would reasonably be expected to have a Material
Adverse Effect. Without limiting the previous sentence, since December 31, 2018, Seller has not approved, taken or otherwise effected
any of the following transactions or actions: (i) sold, transferred, leased or otherwise disposed of any material assets that would
constitute Purchased Assets if owned by Seller on the Closing Date; (ii) permitted any of the Purchased Assets to be subject to
any Lien (other than the Permitted Liens) other than in the Ordinary Course; (iii) cancelled or compromised any debt or claim or
waived or released any material right of Seller in connection with the Business; (iii) changed or modified in any material respects
the credit, collection or payment policies, procedures or practices of the Business, including accelerating collections of receivables
of the Business; (iv) failed to pay any creditor, customer or subcontractor of Seller in connection with the Business when due,
unless such amount was being contested in good faith by Seller (and which contest has otherwise been disclosed to Buyer); or (v)
changed Seller’s accounting principles applicable to the Business, except insofar as may have been required by a change in
GAAP.

 

4.6.       Title
to and Sufficiency of Assets. Seller has good and marketable title to, or other legal rights to possess and use, all of the
Purchased Assets, free and clear of all Liens except for Permitted Liens. Upon delivery of the Purchased Assets to Buyer at the
Closing in accordance with this Agreement, good and marketable title to all of the Purchased Assets owned by Seller and a legal
right to possess and use all of the Purchased Assets leased or licensed by Seller, free and clear of all Liens (other than Liens
incurred or imposed by Buyer), will pass to Buyer. Except for the Excluded Assets, the Purchased Assets constitute all of the assets,
rights and properties that are used in or are necessary for the operation of the Business as it is currently conducted.

 

4.7.       Properties.
There is no tangible personal property (including furniture, fixtures, equipment, facsimile machines, printers, copiers and related
software and supplies, together with all deposits and prepaid assets associated therewith) owned by Seller for use in connection
with the Business. Seller does not own and has never owned any real property or any interest in real property.

 

4.8.       Intellectual
Property. Schedule 4.8 sets forth: (i) all U.S. and foreign registrations of Intellectual Property (and applications
therefor) owned or licensed by Seller or otherwise used or held for use by Seller in which Seller is the owner, applicant, licensee
or assignee (“Registered IP”); (ii) all material unregistered Intellectual Property owned or purported
to be owned by Seller; and (iii) all licenses, sublicenses and other agreements or permissions (“IP Licenses”)
(other than shrink wrap licenses or other similar licenses for commercial off-the-shelf software with an annual license fee of
Five Thousand U.S. Dollars ($5,000) or less (which are not required to be listed, but are “IP Licenses” as that term
is used herein)), under which Seller is a licensee or otherwise is authorized to use any Intellectual Property. All Registered
IP is valid and in force and owned exclusively by Seller without obligation to pay royalties, licensing fees or other fees, or
otherwise account to any other Person with respect to such Registered IP. Seller owns, free and clear of all royalties or other
Liens (other than Permitted Liens), has valid and enforceable rights in, and has the unrestricted right to use, sell, license,
transfer or assign, all Intellectual Property currently used, licensed or held for use by Seller, and previously used or licensed
by Seller (except for the Intellectual Property that is the subject of the IP Licenses) (“Seller IP”),
and there are no agreements which restrict or limit the use of Seller IP by Seller (or Buyer as its assignee). Seller IP is valid
and enforceable, and to the Knowledge of Seller, Seller IP does not violate any Trade Secret agreement and does not infringe on
any Intellectual Property or proprietary rights of any Person in any country. Seller has not licensed or sublicensed out any of
its owned or licensed Intellectual Property. Seller has a valid and enforceable license to use all Intellectual Property that is
the subject of the IP Licenses. Seller has performed all obligations imposed on it in the IP Licenses, has made all payments required
to date, and is not, nor, to the Knowledge of Seller, is any other party thereto, in breach or default thereunder, nor has any
event occurred that with notice or lapse of time or both would constitute a default thereunder. All commercially reasonable and
desirable action to maintain and protect Seller IP has been taken by Seller, and all maintenance fees, Taxes, annuities and renewal
fees have been paid and all other necessary actions to maintain Seller IP have been taken through the Closing. Seller has not interfered
with, infringed upon or misappropriated any Intellectual Property rights of third parties in connection with the ownership of the
Purchased Assets or the operation of the Business, and Seller has not received any notice of claim that any of Seller IP has expired,
is not valid or enforceable in any country or that it or the operation of the Business infringes upon, conflicts with or misappropriates
any Intellectual Property of any third party, and no such claims or controversies currently exist. Seller has not given any notice
of infringement to any third party with respect to any Seller IP nor become aware of facts or circumstances evidencing the infringement
by any third party of any Seller IP. To the Knowledge of Seller, (i) there has been no misappropriation of any Trade Secrets or
other confidential Seller IP by any current or former employee, independent contractor, consultant or agent of Seller, or by any
other Person, (ii) no current or former employee, independent contractor, consultant or agent of Seller has misappropriated any
Trade Secrets of any other Person in the course of his, her or its performance as an employee, independent contractor, consultant
or agent of Seller, (iii) no current or former employee, independent contractor, consultant or agent of Seller is in default or
breach of any term of any employment agreement, non-disclosure agreement, non-compete obligation, assignment of invention agreement
or similar agreement or contract with Seller relating in any way to the protection, ownership, development, use or transfer of
Seller IP and (iv) each employee, consultant and independent contractor of Seller has assigned to Seller all Intellectual Property
arising from the services performed for Seller by such Person. Seller is not a party to any Contract that requires Seller to assign
to any Person any of its rights in any Intellectual Property developed by Seller under such Contract. No Person has obtained unauthorized
access to third party information and data in Seller’s possession, nor has there been any other compromise of the security,
confidentiality or integrity of such information or data. No computer and information technology hardware or equipment, including
any servers, computers, monitors, computer accessories, tablets and mobile phones is currently being used by Seller in connection
with the Business.

 

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4.9.       Contracts.
Schedule 4.9 contains a complete, current and correct list of all Contracts to which Seller is a party or by which any
of its properties or assets are bound. True and correct copies of all such Contracts have been provided to Buyer (along with any
amendments thereto), including written summaries of oral Contracts. Each such Contract is a valid, binding and enforceable obligation
of Seller and, to Seller’s Knowledge, of the other party or parties thereto, except as the enforceability thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’
rights generally and general principles of equity (regardless of whether enforceability is considered in a proceeding at law or
in equity), and each such Contract is in full force and effect. Neither Seller nor, to Seller’s Knowledge, any other party
thereto is in material breach of or default under any term of any such Contract or has repudiated any term of any such Contract.
During the three (3) year period prior to the date of this Agreement, Seller has not received any written or, to Seller’s
Knowledge, oral notice of termination, cancellation or non-renewal, or request to materially amend or modify the terms thereof,
that is currently in effect with respect to any such Contract. To Seller’s Knowledge, no event has occurred which either
entitles, or would, with notice or lapse of time or both, entitle any party to any such Contract to declare a material breach or
default under any such Contract or to accelerate, or which does accelerate, the maturity of any obligation of Seller (or its assignee)
under any such Contract. To the Knowledge of Seller, there is no reason to believe that any such Contract with a customer will
not remain in effect after the Closing or continue to generate substantially the same or more revenue after the Closing through
the remainder of its term as it currently generates. No such Contract contains any covenant (i) limiting in any respect the right
of Seller or its Affiliates (or Buyer as assignee thereof) to engage in any line of business, to make use of any of its Intellectual
Property or compete with any Person in any line of business or in any geographic region, (ii) imposing non-solicitation restrictions
on Seller or its Affiliates (or Buyer as the assignee thereof), (iii) granting to the other party any exclusivity or similar provisions
or rights or any other restriction on future contracting, or (iv) providing “most favored customers” or other preferential
pricing terms for the services of Seller or its Affiliates (or Buyer as the assignee thereof).

 

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4.10.       Litigation.
There is no (a) Action of any nature pending or, to the Knowledge of Seller, threatened, nor to the Knowledge of Seller is there
any reasonable basis for any Action to be made, or (b) Order now pending or previously rendered, since incorporation, in either
case of (a) or (b), by or against Seller or any of its Affiliates or any of their respective properties or assets or, to Seller’s
Knowledge, any of their respective current or former managers, officers or equity holders which, if adversely determined, would
reasonably be expected to affect any of the Business, the Purchased Assets or the Assumed Liabilities.

 

4.11.       Compliance
with Laws; Permits. Seller is in compliance with, and has complied since incorporation, in all material respects with all Laws
and Orders in respect of the operation, activities, conduct and transactions of the Business and the ownership, operation, use
or possession of the Purchased Assets. None of the operation, activity, conduct and transactions of the Business or the ownership,
operation, use or possession of the Purchased Assets conflicts with the rights of any other Person or violates, or with or without
the giving of notice or passage of time, or both, will violate, conflict with or result in a default, right to accelerate or loss
of rights under, any terms or provisions of any Lien, Contract or any Law or Order to which Seller is a party or by which Seller,
the Business or any of the Purchased Assets may be bound or affected. Seller has not received any written or, to the Knowledge
of Seller, oral notice of any actual or alleged violation or non-compliance with applicable Laws. Seller owns or possesses all
right, title and interest in all Permits required to own the Purchased Assets and conduct the Business as now being conducted.

 

4.12.       Employees;
Consultants; Labor Matters.

 

(a)       Schedule
4.12(a) contains a complete and correct list of all employees of Seller whose employment relates to the Business (collectively,
the “Employees”), (i) showing for each Employee the Employee’s name, job title or description,
salary level (including any non-discretionary bonus or deferred compensation arrangements), accrued vacation and sick pay, and
(ii) also showing any bonus, commission or other remuneration other than salary paid during the calendar year ending December 31,
2018 or during the calendar year 2019. No Employee is a party to a written employment agreement or contract with Seller and each
Employee is employed “at will.” Each Employee has entered into Seller’s standard form of employee non-disclosure
agreement with Seller, a copy of which has been previously delivered to Buyer.

 

(b)       Schedule
4.12(b) contains a list of all consultants and independent contractors currently engaged by Seller in connection with the Business,
along with the position, date of retention and rate of remuneration, most recent increase (or decrease) in remuneration and amount
thereof, for each such Person. All of such consultants and independent contractors are a party to a written Contract with Seller,
which have been provided to Buyer (along with any amendments thereto). Each such independent contractor has entered into customary
covenants regarding confidentiality with Seller, a copy of which has been previously delivered to Buyer.

 

4.13.       Tax
Matters. Seller has timely filed all Tax Returns required to have been filed by it, all such Tax Returns are accurate and complete
in all material respects and Seller has paid all Taxes owed by it which were due and payable (whether or not shown on any Tax Return).
Seller has complied with all applicable Laws relating to Tax. There is no current Action against or affecting Seller, the Business
or the Purchased Assets by a Governmental Authority in a jurisdiction where Seller does not file Tax Returns that Seller is or
may be subject to taxation by that jurisdiction, and there are no pending or ongoing audits or assessments of Seller’s Tax
Returns by a Governmental Authority. There are no Liens for Taxes upon the Purchased Assets, except for Permitted Liens. Seller
is not a real property holding company within the meaning of Section 897 of the Code.

 

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4.14.       Environmental
Matters. In connection with Seller’s ownership of the Purchased Assets and the operation of the Business on or prior
to the Closing Date: (i) Seller has complied in all respects with all applicable Environmental Laws; (ii) Seller has not received
notice of any Actions pending or threatened against Seller or the Purchased Assets relating to any Environmental Conditions or
any applicable Environmental Laws or related Permits; and (iii) to Seller’s Knowledge, Seller does not have any environmental
audits, environmental assessments, reports, sampling results, correspondence with Governmental Authorities or other environmental
documents relating to Seller’s past or current properties, facilities or operation. Except for de minimis quantities of Hazardous
Materials used, stored, disposed, or present in compliance with Environmental Laws on or about premises owned or leased by Seller,
to Seller’s Knowledge, there are no Hazardous Materials that are being stored or are otherwise present on, under or about
premises owned or leased by Seller. Seller has not operated any above-ground or underground tanks, drum storage areas, disposal
sites, or landfills, or created any Environmental Conditions at premises owned or leased by Seller. To the Knowledge of Seller,
Seller has not released any Hazardous Materials on, under or about any real property constituting or connected with premises owned
or leased by Seller, that requires investigation or remediation pursuant to Environmental Law or that otherwise is in violation
of any requirement of any Environmental Law.

 

4.15.       Insurance.
Seller has maintained, since incorporation, insurance in amounts sufficient for the Business and the Purchased Assets and in such
amounts and covering such risks as are usually carried by companies engaged in similar businesses and owning similar properties
in the same general areas in the Business operates.

 

4.16.       Transactions
with Related Persons. No Affiliate of Seller, nor any officer, manager, director, employee, trustee or beneficiary of Seller
or its Affiliate, nor any immediate family member of any of the foregoing (whether directly or indirectly through an Affiliate
of such Person) (each of the foregoing, a “Related Person”) is presently, or in the past three (3) years
has been, a party to any transaction or has an outstanding Contract or other arrangement or commitment with Seller that relates
to the Business or the Purchased Assets, and no Related Person owns any property or right (including Intellectual Property) which
is used in the Business. The Purchased Assets do not include any receivable or other obligation from a Related Person, and the
Assumed Liabilities do not include any payable or other obligation or commitment to any Related Person.

 

4.17.       Solvency.
Seller is not entering into this Agreement with the intent to hinder, delay or defraud any Person to which Seller is, or may become,
indebted. After the Closing and after giving effect to this Agreement and the other transactions contemplated hereby, Seller expects
and believes in good faith that it will not be insolvent (either because its financial condition will be such that the sum of its
debts is greater than the fair value of its assets or because the present fair salable value of its assets would be less than the
amount required to pay its probable liability on debts as they become absolute and matured).

 

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

 

4.19.       Disclosure.
No representations or warranties by Seller in this Agreement contains any untrue statement of material fact or omits or will omit
to state, when read in conjunction with all of the information contained in this Agreement, any fact necessary in order to make
the statements or facts herein not materially misleading.

 

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4.20.       Own
Account. Seller understands that the securities constituting the Stock Consideration are “restricted securities”
and have not been registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder
(“Securities Act”) or any applicable state securities law and is acquiring the Stock Consideration as
principal for its own account and not with a view to or for distributing or reselling such Stock Consideration or any part thereof
in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of the
Stock Consideration in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Stock Consideration in violation of
the Securities Act or any applicable state securities law.

 

4.21.       Seller
Status. Seller is an “accredited investor” as defined in Rule 501 under the Securities Act.

 

4.22.       Experience
of Seller. Seller, either alone or 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 Stock
Consideration, and has so evaluated the merits and risks of such investment. Seller is able to bear the economic risk of an investment
in the Stock Consideration and, at the present time, is able to afford a complete loss of such investment.

 

4.23.       General
Solicitation. Seller is not purchasing the Stock Consideration as a result of any advertisement, article, notice or other communication
regarding the Stock Consideration published in any newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or, to the knowledge of Seller, any other general solicitation or general advertisement.

 

4.24.       Access
to Information. Seller acknowledges that it has had the opportunity to review the this Agreement and the Ancillary Documents
(including all exhibits and schedules thereto) and the SEC Reports (as defined in Section 5.7) and has been afforded (i) the opportunity
to ask such questions as it has deemed necessary of, and to receive answers from, representatives of Buyer concerning the terms
and conditions of the offering of the Stock Consideration and the merits and risks of investing in the Stock Consideration; (ii)
access to information about Buyer and its financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that Buyer
possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with
respect to the investment.

 

4.25.       No
Other Representations and Warranties. Except for the representations and warranties contained in this ARTICLE IV (including
the related portions of the Disclosure Schedules), neither Seller nor any other Person has made or makes any other express or implied
representation or warranty, either written or oral, on behalf of Seller, including any representation or warranty as to the accuracy
or completeness of any information regarding the Business and the Purchased Assets furnished or made available to Buyer (including
any information, documents or material made available in connection with the transactions contemplated hereby) or as to the future
revenue, profitability or success of the Business, or any representation or warranty arising from statute or otherwise in law.

 

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ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and
warrants to Seller that the statements contained in this ARTICLE V, and the information in the Disclosure Schedules, if
any, referenced therein, except as set forth in the SEC Reports (as defined below), are true and correct as of the date hereof
and as of the Closing, except to the extent that a representation and warranty contained in this ARTICLE V expressly states
that such representation and warranty is current as of an earlier date and then such statements contained in this ARTICLE V
are true and correct as of such earlier date or time:

 

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

 

5.2.       Authorization.
Buyer has full corporate power and authority to enter into this Agreement and the Ancillary Documents to which it is a party
and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Ancillary
Documents to which Buyer is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized
by all necessary corporate action on the part of Buyer. This Agreement and each Ancillary Document to which Buyer is a party has
been duly executed and delivered by Buyer and constitutes a legal, valid and binding obligation of Buyer, enforceable against Buyer
in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and general principles of equity (regardless
of whether enforceability is considered in a proceeding at law or in equity).

 

5.3.       Non-Contravention.
Neither the execution and delivery of this Agreement or any Ancillary Document by Buyer, nor the consummation of the transactions
contemplated hereby or thereby, will violate or conflict with (a) any provision of Buyer’s Organizational Documents, (b)
any Law or Order to which Buyer or any of its business or assets are bound or subject or (c) any Contract or Permit to which Buyer
is a party or by which it or any of its properties may be bound or affected, other than, in the cases of clauses (a) through (c),
such violations and conflicts which would not reasonably be expected to have a Buyer Material Adverse Effect.

 

5.4.       Filings,
Consents and Approvals. Buyer is not required to obtain any consent, waiver, authorization or order of, give any notice to,
or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person
in connection with the execution, delivery and performance by Buyer of the this Agreement or any Ancillary Document by Buyer, other
than: (i) the filings required pursuant to applicable securities laws, including the filings with the Securities and Exchange Commission
(“Commission”), (ii) the notice and/or application(s) to each applicable Trading Market for the issuance
and sale of the Securities and the listing of the Underlying Shares for trading thereon in the time and manner required thereby,
(iii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws
and (iv) Required Buyer Stockholder Approval (as defined in Section 8.1(e) and collectively with clauses (i) through (iii), the
“Required Approvals”).

 

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5.5.       Issuance
of the Stock Consideration. The Stock Consideration is duly authorized and, at the Closing, will be duly and validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by Buyer other than restrictions on transfer provided for in
this Agreement. The Underlying Shares, when issued in accordance with the terms of this Agreement or any Ancillary Document by
Buyer, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by Buyer other than restrictions
on transfer provided for in the this Agreement or any Ancillary Document by Buyer. Buyer has reserved from its duly authorized
capital stock a number of shares of Common Stock for issuance of the Underlying Shares in full.

 

5.6.       Capitalization.
The capitalization of Buyer as of the date hereof is as set forth in the SEC Reports. Buyer has not issued any capital stock since
its most recently filed periodic report under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder (“Exchange Act”), other than pursuant to the exercise of employee stock options under Buyer’s
stock option plans, the issuance of shares of Common Stock to employees pursuant to Buyer’s employee stock purchase plans
and pursuant to the conversion and/or exercise of securities convertible or exercisable into Common Stock (“Common
Stock Equivalents”) outstanding as of the date of the most recently filed periodic report under the Exchange Act.
No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by the this Agreement or any Ancillary Document by Buyer. Except as a result of the purchase and sale
of the Stock Consideration, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary of Buyer,
or contracts, commitments, understandings or arrangements by which Buyer or any Subsidiary is or may become bound to issue additional
shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Stock Consideration
will not obligate Buyer to issue shares of Common Stock or other securities to any Person (other than Buyer). There are no outstanding
securities or instruments of Buyer with any provision that adjusts the exercise, conversion, exchange or reset price of such security
or instrument upon an issuance of securities by Buyer. There are no outstanding securities or instruments of Buyer that contain
any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which Buyer is
or may become bound to redeem a security of Buyer. Buyer does not have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of Buyer are duly authorized,
validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none
of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors of Buyer or others is required for the issuance
and sale of the Stock Consideration. There are no stockholders agreements, voting agreements or other similar agreements with respect
to Buyer’s capital stock to which Buyer is a party or, to the knowledge of Buyer, between or among any of Buyer’s stockholders.

 

5.7.       SEC
Reports; Financial Statements. Buyer has filed all reports, schedules, forms, statements and other documents required to be
filed by Buyer under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two
years preceding the date hereof (or such shorter period as Buyer was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports
complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of Buyer included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of Buyer and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

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5.8.       Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as set forth in the SEC Reports, (i) there has been no event, occurrence or development that has
had or that could reasonably be expected to result in a Buyer Material Adverse Effect, (ii) Buyer has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in Buyer’s financial statements pursuant to GAAP or disclosed
in filings made with the Commission, (iii) Buyer has not altered its method of accounting, (iv) Buyer has not declared or made
any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase
or redeem any shares of its capital stock and (v) Buyer has not issued any equity securities to any officer, director or Affiliate,
except pursuant to existing Buyer stock option plans. Buyer does not have pending before the Commission any request for confidential
treatment of information.

 

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

 

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

 

5.11.     Compliance.
Neither Buyer nor any Subsidiary of Buyer: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by Buyer or any Subsidiary under), nor has Buyer or
any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether
or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator
or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental
authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection,
occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have
or reasonably be expected to result in a Buyer Material Adverse Effect.

 

5.12.     Regulatory
Permits. Buyer and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither Buyer nor any Subsidiary of Buyer has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

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5.13.     Insurance.
Buyer and its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as are prudent and customary in the businesses in which Buyer and its Subsidiaries are engaged, including, but not
limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither Buyer nor any
Subsidiary has any reason to believe that it will not be able 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 without a significant
increase in cost.

 

5.14.     Sarbanes-Oxley;
Internal Accounting Controls. Buyer and its Subsidiaries are in compliance with any and all applicable requirements of the
Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.

 

5.15.     Private
Placement. Assuming the accuracy of Buyer’s representations and warranties set forth in ARTICLE IV, no registration under
the Securities Act is required for the issuance of the Stock Consideration by Buyer to Seller as contemplated hereby.

 

5.16.     Solvency.
Immediately after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall: (a) be able to pay its
debts as they become due; (b) own property that has a fair saleable value greater than the amounts required to pay its debts (including
a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to carry on its business. No
transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated hereby
with the intent to hinder, delay or defraud either present or future creditors of Buyer or Seller. In connection with the transactions
contemplated hereby, Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

 

5.17.     Independent
Investigation. Buyer has conducted its own independent investigation, review and analysis of the Business and the Purchased
Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records,
and other documents and data of Seller for such purpose. Buyer acknowledges and agrees that: (a) in making its decision to enter
into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon its own investigation
and the express representations and warranties of Seller set forth in ARTICLE IV of this Agreement (including related portions
of the Disclosure Schedules); and (b) neither Seller nor any other Person has made any representation or warranty as to Seller,
the Business, the Purchased Assets or this Agreement, except as expressly set forth in ARTICLE IV of this Agreement (including
the related portions of the Disclosure Schedules).

 

5.18.     General
Solicitation. Neither Buyer nor any Person acting on behalf of Buyer has offered or sold any of the Stock Consideration by
any form of general solicitation or general advertising.

 

5.19.     Acknowledgment
Regarding Buyer’s Purchase of Stock Consideration. Buyer acknowledges and agrees that the Seller is acting solely in
the capacity of an arm’s length purchaser with respect to this Agreement or any Ancillary Document by Buyer and the transactions
contemplated thereby. Buyer further acknowledges that Seller is not acting as a financial advisor or fiduciary of Buyer (or in
any similar capacity) with respect to the this Agreement or any Ancillary Document by Buyer and the transactions contemplated thereby
and any advice given by any Buyer or any of their respective representatives or agents in connection with the this Agreement or
any Ancillary Document by Buyer and the transactions contemplated thereby is merely incidental to Seller’s acceptance of
the Stock Consideration. Buyer further represents to Seller that Buyer’s decision to enter into this Agreement and the other
this Agreement or any Ancillary Document by Buyer has been based solely on the independent evaluation of the transactions contemplated
hereby by Buyer and its representatives.

 

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5.20.     No
Other Representations or Warranties. Except for the representations and warranties contained in this Agreement (including the
Disclosure Schedules hereto), the Ancillary Documents or in any document, exhibit, annex, statement, certificate or schedule which
is furnished or to be furnished by Buyer pursuant to Section 3.3 in connection with the Closing, neither Buyer, nor any
of its Representatives, nor any other Person on behalf of Buyer, makes any express or implied representation or warranty to Seller,
at law or in equity, in respect of Buyer, its operations, business, assets, liabilities, capitalization, condition or prospects
or the Ancillary Documents or the transactions contemplated by this Agreement or the Ancillary Documents, and Buyer hereby disclaims
any such representation or warranty.

 

ARTICLE
VI COVENANTS

 

6.1.       Further
Assurances. In the event that at any time after the Closing any further action is reasonably necessary to carry out the purposes
of this Agreement, each of the parties will take such further action (including the execution and delivery of such further instruments
and documents) as the other parties reasonably may request, at the sole cost and expense of the requesting party (unless otherwise
specified herein or unless such requesting party is entitled to indemnification therefor under ARTICLE VII in which case,
the costs and expense will be borne by the parties as set forth in ARTICLE VII).

 

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

 

6.3.       Confidentiality.
Seller shall, and shall cause its Representatives to: (a) treat and hold in strict confidence any Confidential Information, and
will not use for any purpose (other than in furtherance of its authorized duties on behalf of Buyer or its Affiliates), nor directly
or indirectly disclose, distribute, publish, disseminate or otherwise make available to any third party any of the Confidential
Information without Buyer’s prior written consent; (b) in the event that Seller becomes legally compelled to disclose any
Confidential Information, to provide Buyer with prompt written notice of such requirement so that Buyer or an Affiliate thereof
may seek a protective order or other remedy or so that Buyer may waive compliance with this Section 6.3; (c) in the event
that such protective order or other remedy is not obtained, or Buyer waives compliance with this Section 6.3, to furnish
only that portion of such Confidential Information which is legally required to be provided as advised in writing by outside counsel
and to exercise their commercially reasonable efforts to obtain assurances that confidential treatment will be accorded such Confidential
Information; and (d) upon request of Buyer, to promptly furnish to Buyer or destroy (at the election of Buyer) any and all copies
(in whatever form or medium) of all Confidential Information, including any analyses, compilations, studies or other documents
prepared, in whole or in part, on the basis thereof.

 

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

 

6.5.       Post-Closing
Receipts and Possession of Assets. If after the Closing Date any party or its Affiliate receives any funds properly belonging
to another party in accordance with the terms of this Agreement, the receiving party will promptly advise such other party, will
segregate and hold such funds in trust for the benefit of such other party and will promptly deliver such funds, together with
any interest earned thereon, to an account or accounts designated in writing by such other party. In the event that after the Closing
Date, Buyer or its Affiliates receives or otherwise is in possession of any Excluded Asset, Buyer shall promptly notify Seller
of its receipt or possession of the Excluded Asset and transfer, at Seller’s expense, such Excluded Asset to Seller. In the
event that after the Closing Date, Seller or its Affiliates receives or otherwise is in possession of any Purchased Asset, Seller
shall promptly notify Buyer of its receipt or possession of the Purchased Asset and transfer, at Buyer’s expense (unless
such receipt or possession is a result of a breach of this Agreement by Seller, in which case, at Seller’s expense), such
Purchased Asset to Buyer.

 

6.6.       Allocation
of Purchase Price. Within one hundred twenty (120) days after the Closing Date, Buyer will provide to Seller copies of an IRS
Form 8594 and any required exhibits thereto, prepared in accordance with Section 1060 of the Code, with Buyer’s proposed
allocation of the Purchase Price, all other capitalizable costs, including the amount of Assumed Liabilities among the Purchased
Assets (the “Allocation”). Seller will review the Allocation and, to the extent Seller disagrees with
the content of the Allocation, Seller will, within twenty (20) days after receipt of the Allocation, provide written notice to
Buyer of such disagreement or will be deemed to have indicated its concurrence therewith. Seller and Buyer will attempt in good
faith to resolve any such disagreement. Upon the final agreement or determination of the Allocation or any modification thereof,
Buyer and Seller will report the allocation of the total consideration among the Purchased Assets in a manner consistent with such
Allocation or modification and will act in accordance with such Allocation in the preparation and timely filing of all income Tax
returns (including filing IRS Form 8594 with their respective federal income Tax returns for the taxable year that includes the
Closing Date and any other forms or statements required by the Code or any Taxing Authority). Each of Buyer and Seller agrees to
promptly provide the other party with any additional information and reasonable assistance required to complete IRS Form 8594 or
compute Taxes and other taxes arising in connection with (or otherwise affected by) the transactions contemplated by this Agreement.
Buyer and Seller will promptly inform one another in writing of any challenge by any Taxing Authority to any Allocation made pursuant
to this Section 6.6 and agree to consult with and keep one another informed with respect to the status of, and any discussion,
proposal or submission with respect to, any such challenge.

 

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6.7.         Business
Employees. Seller shall terminate the employment or service of all Employees listed on Schedule 6.7 as of the Closing,
and will use its commercially reasonable efforts to cause such Employees to make available their employment services to Buyer after
the Closing. Any such Employees who accept any offer that may be made by Buyer for employment and commence employment immediately
after the Closing will be collectively referred to as the “Transferred Employees”. Nothing in this Agreement
will impose on Buyer any obligation to make any offer to any Employee (including those listed on Schedule 6.7) or to retain
any Transferred Employee in its employ after the Closing, or to continue to provide the same compensation or benefits that were
provided by Buyer immediately following the Closing, and except as may be limited by applicable Law or Contracts with any such
Transferred Employee, Buyer shall have the right at any time after the Closing to terminate the employment of, and alter the terms
and conditions of employment (including with respect to compensation and benefits) of, any Transferred Employee. Except to the
extent otherwise expressly agreed in writing by Buyer, Transferred Employees will be at-will employees who are terminable at-will
in the discretion of Buyer. Nothing express or implied in this Agreement will confer upon any Employee any rights or remedies,
including any right to employment, or continued employment for any specified period, of any nature or kind whatsoever under or
by any reason of this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Buyer and its Affiliates
will have no Liability or responsibility with respect to any Employee that does not receive an offer of employment from Buyer or
that does not accept Buyer’s offer of employment, and Seller shall be solely responsible for all Liabilities relating to
any Employees that are not Transferred Employees and the termination of any such Employees by Seller at or prior to the Closing,
including any Liabilities or obligations with respect to COBRA. Buyer has no non-competition or non-solicitation agreements with
any of the Transferred Employees.

 

6.8.         Employment
Related Taxes. Payroll withholding and Tax reporting by Seller with respect to each Transferred Employee shall be terminated
on the later of the Closing Date or such Person’s date of hire by Buyer. Seller represents and covenants to Buyer that there
is no unemployment insurance history and fund balance (including all rights to state unemployment tax accounts relating to the
Transferred Employees).

 

6.9.         Seller
will pay over to appropriate Governmental Authorities, in accordance with all applicable Laws and Orders, all amounts required
to be withheld on or before the Closing Date or such later date. Seller shall issue, by the date prescribed by the applicable IRS
requirements, Forms W-2 for wages paid to such Transferred Employees through the Closing Date or such later date. Buyer shall be
responsible for all payroll withholding and Tax reporting with respect to the Transferred Employees from and after their date of
hire by Buyer. Seller will supply Buyer with such information in their possession regarding the Transferred Employees for the period
between January 1, 2019 and the date of their hire by Buyer as may be reasonably necessary for Buyer to carry out its payroll tax
withholding and reporting responsibilities. In every state in which Seller has reported payroll and/or operative state unemployment
tax accounts, to the extent requested by Buyer, Seller agrees to cooperate with Buyer to facilitate Buyer obtaining successor state
unemployment tax account treatment in all such jurisdictions in a timely and complete manner without reservation, interference
or limitation.

 

6.10.       Merger
Agreement. The parties hereby agree that that certain Agreement and Plan of Merger, by and between Buyer and Seller, dated
as of October 10, 2018 (the “Merger Agreement”), including all schedules and exhibits thereto, and all
ancillary agreements contemplated thereby (collectively, the “Merger Transaction Documents”), are hereby
terminated in their entirety effective immediately on the date hereof and, notwithstanding anything to the contrary in the Merger
Transaction Documents, shall be of no further force or effect whatsoever. In addition, in consideration of entering into of this
Agreement, Buyer and Seller hereby waive the Purchaser Termination Fee (as defined in the Merger Agreement) as detailed in Section
8.2 of the Merger Agreement.

 

6.11.       Supplement
to Disclosure Schedules. From time to time prior to the Closing, either party shall have the right (but not the obligation)
to supplement or amend the Disclosure Schedules hereto with respect to any matter hereafter arising or of which it becomes aware
after the date hereof (each a “Schedule Supplement”). Any disclosure in any such Schedule Supplement shall not
be deemed to have cured any inaccuracy in or breach of any representation or warranty contained in this Agreement, including for
purposes of the indemnification or termination rights contained in this Agreement or of determining whether or not the conditions
set forth herein have been satisfied; provided, however, that if such party has the right to, but does not elect to, terminate
this Agreement within three (3) Business Days of its receipt of such Schedule Supplement, then such party r shall be deemed to
have irrevocably waived any right to terminate this Agreement with respect to such matter and, further, shall have irrevocably
waived its right to indemnification under ARTICLE VII of this Agreement with respect to such matter.

 

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6.12.       Transfer
Restrictions.

 

(a)       The
Stock Consideration and Underlying Shares may only be disposed of in compliance with state and federal securities laws. In connection
with any transfer of Stock Consideration or the Underlying Shares other than pursuant to an effective registration statement or
Rule 144 under the Securities Act, to Buyer or to an Affiliate of Seller, Buyer may require the transferor thereof to provide to
Buyer an opinion of counsel reasonably acceptable to Buyer, the form and substance of which opinion shall be reasonably satisfactory
to Buyer, to the effect that such transfer does not require registration of such transferred Stock Consideration and/or Underlying
Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms
of this Agreement.

 

(b)       Seller
agrees to the imprinting, so long as is required by this Section 6.11, of a legend on any of the Stock Consideration and Underlying
Shares in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED
BY SUCH SECURITIES

 

ARTICLE
VII

INDEMNIFICATION

 

7.1.         Survival.
All representations and warranties of Seller and Buyer contained in this Agreement (including all schedules, exhibits and annexes
hereto and all certificates, documents, instruments and undertakings furnished pursuant to this Agreement) shall survive the Closing
through and until the 6-month anniversary of the Closing Date; provided, however, that (i) the representations and
warranties contained in Sections 4.8 (Intellectual Property), 4.13 (Tax Matters), and 4.14 (Environmental
Matters) shall survive until sixty (60) days after the expiration of the applicable statute of limitations and (ii) the representations
and warranties contained in Sections 4.1 (Organization and Qualification), 4.2 (Authorization), 4.3 (Subsidiaries),
4.6 (Title to and Sufficiency of Assets), 4.18 (No Brokers), 5.1 (Organization and Qualification), 5.2 (Authorization),
5.5 (Issuance of Stock Consideration) and 5.10 (No Brokers) will survive indefinitely (the representations and warranties
referenced in subsections (i) and (ii), the “Special Representations”) and (iii) claims for fraud will
also survive indefinitely, in each case, the date until each such representation shall survive is herein referred to as the “Survival
Date”) (If written notice of a claim for breach of any representation or warranty has been given on or before the
applicable Survival Date for such representation or warranty, then the relevant representations and warranties shall survive as
to such claim, until the claim has been finally resolved. All covenants, obligations and agreements of the parties contained in
this Agreement (including all schedules, exhibits and annexes hereto and all certificates, documents, instruments and undertakings
furnished pursuant to this Agreement), including any indemnification obligations, shall survive the Closing and continue until
fully performed in accordance with their terms. For the avoidance of doubt, a claim for indemnification under any subsection of
Section 7.2 or Section 7.3 other than, in each case, clauses (a) or (b) may be made at any time.

 

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7.2.         Indemnification
by Seller. Except as otherwise limited by this ARTICLE VII, Seller shall indemnify, defend and hold harmless Buyer and
its Representatives and any successor or assign thereof (collectively, the “Buyer Indemnitees”) from
and against, and pay or reimburse Buyer Indemnitees for, any and all losses, Actions, Orders, Liabilities, damages (including consequential
damages), diminution in value, Taxes, interest, penalties, Liens, amounts paid in settlement and reasonable costs and expenses
(including reasonable expenses of investigation and court costs and reasonable attorneys’ fees and expenses), (any of the
foregoing, a “Loss”) suffered or incurred by, or imposed upon, any Buyer Indemnitee arising in whole
or in part out of or resulting directly or indirectly from: (a) any inaccuracy in or breach of any representation or warranty made
by Seller in this Agreement (including all schedules, exhibits and annexes hereto and all certificates, documents, instruments
and undertakings furnished pursuant to this Agreement to which Seller is a party or made in connection herewith); (b) any nonfulfillment
or breach of any covenant, obligation or agreement made by or on behalf of Seller in this Agreement (including all schedules, exhibits
and annexes hereto and all certificates, documents, instruments and undertakings furnished pursuant to this Agreement to which
Seller is a party or made in connection herewith and therewith), including Seller’s obligations with respect to Transfer
Taxes under Section 10.1; (c) the existence of, or the failure of Seller to pay, perform or discharge when due, any Retained
Liability after the Closing; or (d) enforcing Buyer Indemnitees’ indemnification rights provided for hereunder.

 

7.3.         Indemnification
by Buyer. Except as otherwise limited by this ARTICLE VII, Buyer shall indemnify, defend and hold harmless Seller and
its Representatives and any successor or permitted assign thereof (collectively, the “Seller Indemnitees”)
from and against, and pay or reimburse Seller Indemnitees for, any and all Losses, suffered or incurred by, or imposed upon, any
Seller Indemnitee arising in whole or in part out of or resulting directly or indirectly from: (a) any inaccuracy in or breach
of any representation or warranty made by Buyer in this Agreement (including all schedules, exhibits and annexes hereto and all
certificates, documents, instruments and undertakings furnished pursuant to this Agreement to which Buyer is a party or made in
connection herewith); (b) any nonfulfillment or breach of any covenant, obligation or agreement made by or on behalf of Buyer in
this Agreement (including all schedules, exhibits and annexes hereto and all certificates, documents, instruments and undertakings
furnished pursuant to this Agreement to which Buyer is a party or made in connection herewith and therewith); (c) the existence
of, or the failure of Buyer to pay, perform or discharge when due, any Assumed Liability after the Closing; or (d) enforcing Seller
Indemnitees’ indemnification rights provided for hereunder.

 

7.4.         Indemnification
Procedures.

 

(a)       For
the purposes of this Agreement, (i) the term “Indemnitee” shall refer to the Person or Persons indemnified,
or entitled, or claiming to be entitled, to be indemnified, pursuant to the provisions of Section 7.2 or 7.3, as
the case may be, and (ii) the term “Indemnitor” shall refer to the Person or Persons having the actual
or alleged obligation to indemnify pursuant to such provisions.

 

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(b)       In
order to make a claim for indemnification hereunder, the Indemnitee must provide written notice (a “Claim Notice”)
of such claim to the Indemnitor (and with respect to any claim against Seller prior to the Expiration Date, the Escrow Agent),
which Claim Notice shall include (i) a reasonable description of the facts and circumstances which relate to the subject matter
of such indemnification claim to the extent then known and (ii) the amount of Losses suffered by the Indemnitee in connection with
the claim to the extent known or reasonably estimable (provided, that the Indemnitee may thereafter in good faith adjust the amount
of Losses with respect to the claim by providing a revised Claim Notice to the Indemnitor and, if applicable, the Escrow Agent);
provided, that the copy of any Claim Notice provided to the Escrow Agent shall be redacted for any confidential or proprietary
information of the Indemnitor or the Indemnitees described in clause (i) above.

 

(c)       In
the case of any claim for indemnification under this Agreement arising from a claim of a third party (including any Governmental
Authority), an Indemnitee must give a Claim Notice the Indemnitor of such third party claim promptly (and in any event within thirty
(30) days) after the Indemnitee’s receipt of notice of such claim; provided, that the failure to timely provide such
notice will not relieve an Indemnitor of its indemnification obligations except to the extent that the Indemnitor is actually harmed
thereby. The Indemnitor will have the right to defend and to direct the defense against any such claim in its name and at its expense,
and with counsel selected by the Indemnitor unless: (i) the Indemnitor fails to acknowledge fully its obligations to the Indemnitee
within fifteen (15) days after receiving notice of such third party claim or contests, in whole or in part, its indemnification
obligations therefor; (ii) if the Indemnitor is Seller, (A) the applicable third party claimant is a Governmental Authority or
a then-current customer of Buyer or any of its Affiliates or (B) an adverse judgment with respect to the claim will establish a
precedent materially adverse to the continuing business interests of Buyer or its Affiliates; (iii) there is a conflict of interest
between the Indemnitor and the Indemnitee in the conduct of such defense such that representation of both Indemnitor and Indemnitee
by the same counsel would violate professional standards of conduct for attorneys in the jurisdiction where the Indemnitor’s
counsel is practicing on behalf of the Indemnitor; (iv) the applicable third party alleges claims of fraud, willful misconduct
or intentional misrepresentation; (v) such claim is criminal in nature, could reasonably be expected to lead to criminal proceedings,
or seeks an injunction or other equitable relief against the Indemnitee; or (vi) the claim seeks or is reasonably expected to seek
damages or other amounts that would result in all or any portion of the Indemnitee’s right to indemnification for such claim
(when combined in the aggregate with the amount of all other pending and finally determined claims against the Indemnitor) being
either (A) if the Indemnitor is Seller, in excess of the then remaining Escrow Shares unless Seller provides evidence reasonably
acceptable to Buyer of Seller’s ability to pay all potential amounts with respect to such claim and all other pending and
finally determined claims against Seller, along with security or an escrow arrangement reasonably acceptable to Buyer for such
amounts, or (B) limited by the Indemnification Cap. If the Indemnitor elects, and is entitled, to compromise or defend such claim,
it will within fifteen (15) days (or sooner, if the nature of the claim so requires) notify the Indemnitee of its intent to do
so, and the Indemnitee will, at the request and expense of the Indemnitor, cooperate in the defense of such claim. If the Indemnitor
elects not to, or is not entitled under this Section 7.4(c) to, compromise or defend such claim, fails to notify the Indemnitee
of its election as herein provided or refuses to acknowledge or contests its obligation to indemnify under this Agreement, the
Indemnitee may pay, compromise or defend such claim. Notwithstanding anything to the contrary contained herein, the Indemnitor
will have no indemnification obligations with respect to any such claim which has been or will be settled by the Indemnitee without
the prior written consent of the Indemnitor (which consent will not be unreasonably withheld, delayed or conditioned); provided,
however, that notwithstanding the foregoing, the Indemnitee will not be required to refrain from paying any claim which
has matured by a court judgment or decree, unless an appeal is duly taken therefrom and exercise thereof has been stayed, nor will
it be required to refrain from paying any claim where the delay in paying such claim would result in the foreclosure of a Lien
upon any of the property or assets then held by the Indemnitee or where any delay in payment would cause the Indemnitee material
economic loss. The Indemnitor’s right to direct the defense will include the right to compromise or enter into an agreement
settling any claim by a third party; provided, further, that no such compromise or settlement will obligate the Indemnitee
to agree to any settlement that requires the taking or restriction of any action (including the payment of money and competition
restrictions) by the Indemnitee (other than the delivery of a release for such claim and customary confidentiality obligations),
except with the prior written consent of the Indemnitee (such consent not to be unreasonably withheld, conditioned or delayed).
Notwithstanding the Indemnitor’s right to compromise or settle in accordance with the immediately preceding sentence, the
Indemnitor may not settle or compromise any claim over the objection of the Indemnitee; provided, however, that consent
by the Indemnitee to settlement or compromise will not be unreasonably withheld, delayed or conditioned. The Indemnitee will have
the right to participate in the defense of any claim with counsel selected by it subject to the Indemnitor’s right to direct
the defense. The fees and disbursements of such counsel will be at the expense of the Indemnitee; provided, however,
that, in the case of any claim which seeks injunctive or other equitable relief against the Indemnitee, the fees and disbursements
of such counsel will be at the expense of the Indemnitor.

 

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(d)       With
respect to any direct indemnification claim under this Agreement that does not arise from a third-party claim, the Indemnitor will
have a period of thirty (30) days after receipt of the Claim Notice within which to respond thereto. If the Indemnitor does not
respond within such thirty (30) days, the Indemnitor will be deemed to have accepted responsibility for the Losses set forth in
the Claim Notice and will have no further right to contest the validity of the Claim Notice. If the Indemnitor responds within
such thirty (30) days after the receipt of the Claim Notice and rejects such claim in whole or in part, the Indemnitee will be
free to pursue such remedies as may be available to it under this Agreement, any Ancillary Documents or applicable Law.

 

7.5.         Limitations
on Indemnification. No Indemnitor shall be liable for an indemnification claim made under clause (a) of Section 7.2
or Section 7.3, as the case may be: (a) for which a claim for indemnification is not asserted hereunder on or before the
applicable Survival Date; (b) unless and until the aggregate amount of Losses incurred by Buyer Indemnitees in the aggregate under
clause (a) of Section 7.2 or by Seller Indemnitees in the aggregate under clause (a) of Section 7.3, as applicable,
exceeds Fifty Thousand U.S. Dollars ($50,000) (the “Basket”) in which case the applicable Indemnitor
shall be obligated to the applicable Indemnitee for the amount of all Losses of such Indemnitees from the first dollar of Losses
of the Indemnitees required to reach the Basket; or (c) to the extent Losses incurred by Buyer Indemnitees in the aggregate under
clause (a) of Section 7.2 or by Seller Indemnitees in the aggregate under clause (a) of Section 7.3, as applicable,
exceed an amount equal to the value of the Escrow Shares (the “Indemnification Cap”). Notwithstanding
the foregoing: (i) the Indemnification Cap shall not apply to indemnification claims to the extent amounts are actually paid under
insurance maintained by the Indemnitor (or any of its Affiliates); and (ii) the Basket and the Indemnification Cap shall not apply
to indemnification claims that are based in whole or in part upon fraud, willful misconduct or intentional misrepresentation. The
Indemnification Cap and Basket shall apply only to indemnification claims made under clause (a) of Section 7.2 or Section
7.3 and shall not affect or apply to any other indemnification claim made pursuant to this Agreement, including those asserted
under any other clause of Section 7.2 or Section 7.3.

 

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7.6.         General
Indemnification Provisions. The amount of any Losses suffered or incurred by any Indemnitee shall be reduced by the amount
of any insurance proceeds or other cash receipts paid to the Indemnitee or any Affiliate thereof as a reimbursement with respect
to such Losses (and no right of subrogation shall accrue to any insurer hereunder, except to the extent that such waiver of subrogation
would prejudice any applicable insurance coverage), including any indemnification received by the Indemnitee or such Affiliate
from an unrelated party with respect to such Losses, net of the costs of collection and any related anticipated future increases
in insurance premiums resulting from such Loss or insurance payment. No investigation or knowledge by a party of a breach of a
representation or warranty of another party hereto shall affect the representations and warranties of the breaching party or the
recourse available to such first party under any provision of this Agreement (including this ARTICLE VII) with respect thereto.
For all purposes of this ARTICLE VII including for purposes determining whether there has been a breach giving rise to the
indemnification claim and the amount of Losses, all of the representations, warranties and covenants set forth in this Agreement
(including the schedules, exhibits and annexes hereto) that are qualified by materiality, Material Adverse Effect or words of similar
import or effect will be deemed to have been made without any such qualification. Unless otherwise required by applicable Law,
all indemnification payments will constitute adjustments to the Purchase Price for all Tax purposes, and no party may take a position
inconsistent with such characterization. In any claim for indemnification under this Agreement, no Person shall be required to
indemnify any Person for punitive damages or special damages, unless such punitive damages, or special damages are actually awarded
to a third party.

 

7.7.         Escrow;
Timing of Payment; Right to Set-Off. All claims for indemnification by a Buyer Indemnitee pursuant to this ARTICLE VII
shall first be asserted against the Escrow Shares in accordance with this Agreement and the Escrow Agreement. With respect to any
indemnification payment that includes Escrow Shares, the value of each Escrow Share for purposes of determining the indemnification
payment shall be Buyer Common Stock Price on the date hereof . Any indemnification obligation of an Indemnitor under this ARTICLE
VII will be paid within five (5) Business Days after the determination of such obligation in accordance with Section 7.4
(and Buyer and Seller will provide or cause to be provided to the Escrow Agent any written instructions or other information or
documents required by the Escrow Agent to do so). The provisions of this ARTICLE VII notwithstanding, at the sole discretion
of Buyer and without limiting any other rights of Buyer Indemnitees under this Agreement or any Ancillary Document or at law or
equity, to the extent that a Buyer Indemnitee is determined in accordance with this Agreement to be entitled to indemnification
hereunder, if Seller fails or refuses to promptly indemnify such Buyer Indemnitee as provided herein then Buyer (or any other Buyer
Indemnitee) may offset the full amount to which such Buyer Indemnitee is entitled, in whole or in part, by reducing the amount
of any payment or other obligation due to Seller pursuant to this Agreement or any Ancillary Document, and any amounts owed by
Buyer pursuant to any outstanding indemnification claim by a Seller Indemnitee.

 

7.8.         Exclusive
Remedies. Except as otherwise set forth herein, the parties acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims (other than claims arising from intentional fraud on the part of a party hereto in connection with
the transactions contemplated by this Agreement)] for any breach of any representation, warranty, covenant, agreement or obligation
set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions
set forth in this ARTICLE VII. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under
Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation
set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and
their Affiliates and each of their respective Representatives arising under or based upon any Law, except pursuant to the indemnification
provisions set forth in this ARTICLE VII. Nothing in this Section 7.8 shall limit any Person’s right to seek and obtain any
equitable relief to which any Person shall be entitled pursuant to this Agreement.

 

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7.9.         Non-Compete;
Non-Solicit. For a period of 2 years following the Closing Date, Seller covenants and agrees with Buyer that Seller (a) will
not directly or indirectly own, manage, operate or consult with a business substantially similar to, or competitive with, the Business
and (b) will not solicit for employment any Transferred Employee.

 

ARTICLE
VIII

CLOSING CONDITIONS

 

8.1.         Conditions
to Each Party’s Obligations. The obligations of each party to consummate the transactions described herein shall be subject
to the satisfaction or written waiver (where permissible) by Buyer and Seller of the following conditions:

 

(a)       All
Consents required to be obtained from or made with any Governmental Authority in order to consummate the transactions contemplated
by this Agreement, shall have been obtained or made.

 

(b)       The
Consents required to be obtained from or made with any third Person (other than a Governmental Authority) in order to consummate
the transactions contemplated by this Agreement shall have each been obtained or made.

 

(c)       No
Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Law (whether temporary, preliminary or
permanent) or Order that is then in effect and which has the effect of making the transactions or agreements contemplated by this
Agreement illegal or which otherwise prevents or prohibits consummation of the transactions contemplated by this Agreement.

 

(d)       There
shall not be any pending Action brought by a third-party non-Affiliate to enjoin or otherwise restrict the consummation of the
Closing.

 

(e)       Buyer
shall have held a special meeting of its stockholders (the “Buyer Special Meeting”) in accordance with
the Delaware General Corporation Law (“DGCL”), Nasdaq Stock Market Rules and Buyer’s Organization
Documents, and the issuance of the Stock Consideration shall have been submitted to the vote of the stockholders of Buyer at Buyer
Special Meeting in accordance with the a proxy statement filed with the Commission and shall have been approved by the requisite
vote of the stockholders of Buyer at Buyer Special Meeting (the “Required Buyer Stockholder Approval”).

 

8.2.         Conditions
to Obligations of Seller. In addition to the conditions specified in ARTICLE VIII, the obligations of Seller to consummate
the transactions contemplated by this Agreement are subject to the satisfaction or written waiver (by Seller) of the following
conditions:

 

(a)       All
of the representations and warranties of Buyer set forth in this Agreement and in any certificate delivered by Buyer pursuant hereto
shall be true and correct on and as of the date of this Agreement and on and as of the Closing Date as if made on the Closing Date,
except for (i) those representations and warranties that address matters only as of a particular date (which representations and
warranties shall have been accurate as of such date), and (ii) any failures to be true and correct that (without giving effect
to any qualifications or limitations as to materiality or Material Adverse Effect), individually or in the aggregate, have not
had and would not reasonably be expected to have a Material Adverse Effect on, or with respect to, Buyer and that do not materially
and adversely affect Buyer’s ability to consummate the transactions contemplated hereby.

 

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(b)       Buyer
shall have performed in all material respects all of Buyer’s obligations and complied in all material respects with all of
Buyer’s agreements and covenants under this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

(c)       No
Material Adverse Effect shall have occurred with respect to Buyer since the date of this Agreement.

 

8.3.         Conditions
to Obligations of Buyer. In addition to the conditions specified in ARTICLE VIII, the obligations of Buyer to consummate
the transactions contemplated by this Agreement are subject to the satisfaction or written waiver (by Buyer) of the following conditions:

 

(a)       All
of the representations and warranties of Seller set forth in this Agreement and in any certificate delivered by Seller, shall be
true and correct on and as of the date of this Agreement and on and as of the Closing Date as if made on the Closing Date, except
for (i) those representations and warranties that address matters only as of a particular date (which representations and warranties
shall have been accurate as of such date), and (ii) any failures to be true and correct that (without giving effect to any qualifications
or limitations as to materiality or Material Adverse Effect), individually or in the aggregate, have not had and would not reasonably
be expected to have a Material Adverse Effect on, or with respect to, Seller and that do not materially and adversely affect Seller’s
and each stockholder of Seller’s ability to consummate the transactions contemplated hereby.

 

(b)       Seller
shall have performed in all material respects all of its obligations and complied in all material respects with all of its agreements
and covenants under this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

(c)       No
Material Adverse Effect shall have occurred with respect to Seller since the date of this Agreement.

 

(d)       Seller’s
Stockholder’s shall have held a stockholder meeting or shall have taken action by written consent in lieu of a meeting in
accordance with the DGCL and Seller’s Organization Documents, and the execution and delivery of this Agreement and each Ancillary
Document to which Seller is a party or bound, the performance by Seller of its obligations hereunder and thereunder and the consummation
of the transactions contemplated hereby and thereby, including the transactions contemplated hereunder, shall have been approved
by the requisite vote or consent of the holders of the stockholders of Seller.

 

8.4.         Frustration
of Conditions. Notwithstanding anything contained herein to the contrary, no party may rely on the failure of any condition
set forth in this ARTICLE VIII to be satisfied if such failure was caused by the failure of such party or its Affiliates
(or with respect to Seller, any stockholder of Seller) failure to comply with or perform any of its covenants or obligations set
forth in this Agreement.

 

ARTICLE
IX

TERMINATION

 

9.1.         Termination.
This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing as
follows:

 

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

 

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(b)       by
written notice by Buyer or Seller if any of the conditions to the Closing set forth in ARTICLE VIII have not been satisfied
or waived by December 31, 2019 (the “Outside Date”); provided, however, the right
to terminate this Agreement under this Section 9.1(b) shall not be available to a Party if the breach or violation by such
Party or its Affiliates of any representation, warranty, covenant or obligation under this Agreement was the cause of, or resulted
in, the failure of the Closing to occur on or before the Outside Date;

 

(c)       by
written notice by either Buyer or Seller if a Governmental Authority of competent jurisdiction shall have issued an Order or taken
any other action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement, and
such Order or other action has become final and non-appealable; provided, however, that the right to terminate
this Agreement pursuant to this Section 9.1(c) shall not be available to a Party if the failure by such Party or its Affiliates
to comply with any provision of this Agreement has been a substantial cause of, or substantially resulted in, such action by such
Governmental Authority;

 

(d)       by
written notice by Seller, if (i) there has been a material breach by Buyer of any of its representations, warranties, covenants
or agreements contained in this Agreement, or if any representation or warranty of Buyer shall have become materially untrue or
materially inaccurate, in any case, which would result in a failure of a condition set forth in Section 7.2(a) or Section
7.2(b) to be satisfied (treating the Closing Date for such purposes as the date of this Agreement or, if later, the date of
such breach), and (ii) the breach or inaccuracy is incapable of being cured or is not cured within the earlier of (A) twenty (20)
days after written notice of such breach or inaccuracy is provided by Seller or (B) the Outside Date;

 

(e)       by
written notice by Buyer, if (i) there has been a breach by Seller of any of its representations, warranties, covenants or agreements
contained in this Agreement, or if any representation or warranty of such Parties shall have become untrue or inaccurate, in any
case, which would result in a failure of a condition set forth in Section 7.3(a) or Section 7.3(b) to be satisfied
(treating the Closing Date for such purposes as the date of this Agreement or, if later, the date of such breach), and (ii) the
breach or inaccuracy is incapable of being cured or is not cured within the earlier of (A) twenty (20) days after written notice
of such breach or inaccuracy is provided by Buyer or (B) the Outside Date;

 

(f)        by
written notice by Buyer if there shall have been a Material Adverse Effect on Seller or its Subsidiaries following the date of
this Agreement which is uncured and continuing; or

 

(g)       by
written notice by either Buyer or Seller, if Buyer Special Meeting has been held (including any adjournment or postponement thereof),
has concluded, Buyer’s stockholders have duly voted, and the Required Buyer Stockholder Approval was not obtained.

 

9.2.         Effect
of Termination. This Agreement may only be terminated in the circumstances described in Section 9.1 and pursuant to
a written notice delivered by the applicable party to the other applicable party, which sets forth the basis for such termination,
including the provision of Section 9.1 under which such termination is made. In the event of the valid termination of this
Agreement pursuant to Section 9.1, this Agreement shall forthwith become void, and there shall be no Liability on the part
of any party or any of their respective Representatives, and all rights and obligations of each party shall cease, except: (i)
Sections 6.2, 6.3, ARTICLE X and this Section 9.2 shall survive the termination of this Agreement,
and (ii) nothing herein shall relieve any party from Liability for any willful breach of any representation, warranty, covenant
or obligation under this Agreement or any fraud claim against such party, in either case, prior to termination of this Agreement
(in each case of clauses (i) and (ii) above, subject to ARTICLE VIII). Without limiting the foregoing, and except as provided
in Section 10.1 and this Section, but subject to ARTICLE VIII, the parties’ sole right prior to the Closing
with respect to any breach of any representation, warranty, covenant or other agreement contained in this Agreement by another
party or with respect to the transactions contemplated by this Agreement shall be the right, if applicable, to terminate this Agreement
pursuant to Section 9.1.

 

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ARTICLE
X

GENERAL PROVISIONS

 

10.1.       Expenses.
Except as otherwise expressly provided in this Agreement, each party will pay all fees and expenses incurred by it in connection
with the negotiation, execution, delivery of, and the performance under, this Agreement and the Ancillary Documents and the consummation
of the transactions contemplated hereby and thereby. Notwithstanding the foregoing, all Taxes imposed in connection with the transfer
of the Purchased Assets and the Assumed Liabilities (“Transfer Taxes”), whether such Taxes are assessed
initially against Buyer or any Affiliate of Buyer or Seller or any Affiliate of Seller, shall be borne and paid by Seller.

 

10.2.       Notices.
Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing and shall be deemed
to have been given, (i) when received if given in person or by courier or a courier service, (ii) on the date of transmission if
sent by facsimile or email (with affirmative confirmation of receipt, and provided, that the party providing notice shall within
two (2) Business Days provide notice by another method under this Section 10.2) or (iii) three (3) Business Days after being
deposited in the U.S. mail, certified or registered mail, postage prepaid (or at such other address for a party as shall be specified
by like notice):

 

	
        If to Seller, to:

         

        CBM Biopharma, Inc.

One Rockefeller Plaza, Suite 1039

        New York, NY 10020

        Attn: Scott Wilfong, CEO

        Telephone No: (425) 223-0234

        Email: scott.wilfong@gmail.com

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

         

        Sheppard Mullin

30 Rockefeller Plaza, 39th Floor

        New York, NY 10112

        Attn: Richard A. Friedman, Esq.

        Facsimile No.: (212) 655-1729

        Telephone No.: (212) 634-3031

        Email: rafriedman@sheppardmullin.com

         

	
        If to Buyer, to:

         

        Spherix Incorporated

One Rockefeller Plaza, 11th Floor

        New York, NY 10020

Attention: Anthony Hayes, CEO

Telephone No.: (212) 745-1372

        Email: ahayes@spherix.com

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

         

        Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas, 11th Floor

New York, New York 10105

Attention: Robert F. Charron, Esq.

Facsimile No.: (212) 401-4741

        Telephone No.: (212) 370-1300

        Email: rcharron@egsllp.com

         

 

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10.3.       Interpretation.
The parties acknowledge and agree that: (a) this Agreement and the Ancillary Documents are the result of negotiations between the
parties and will not be deemed or construed as having been drafted by any one party, (b) each party and its counsel have reviewed
and negotiated the terms and provisions of this Agreement (including any schedules, exhibits and annexes attached hereto) and the
Ancillary Documents and have contributed to their revision, (c) the rule of construction to the effect that any ambiguities are
resolved against the drafting party will not be employed in the interpretation of this Agreement or the other Ancillary Documents,
and (d) the terms and provisions of this Agreement and the Ancillary Documents will be construed fairly as to all parties hereto
and not in favor of or against any party, regardless of which party was generally responsible for the preparation of this Agreement
or such Ancillary Document. The table of contents and the headings and subheadings of this Agreement are for reference and convenience
purposes only and in no way modify, interpret or construe the meaning of specific provisions of the Agreement. In this Agreement,
unless the context otherwise requires: (i) whenever required by the context, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural
and vice versa; (ii) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Agreement, and reference to a Person in a particular capacity excludes such Person
in any other capacity; (iii) any accounting term used and not otherwise defined in this Agreement or any Ancillary Document has
the meaning assigned to such term in accordance with GAAP; (iv) “including” (and with correlative meaning “include”)
means including without limiting the generality of any description preceding or succeeding such term and shall be deemed in each
case to be followed by the words “without limitation”; (v) the words “herein,” “hereto,” and
“hereby” and other words of similar import in this Agreement shall be deemed in each case to refer to this Agreement
as a whole and not to any particular Section or other subdivision of this Agreement; (vi) the word “if” and other words
of similar import when used herein shall be deemed in each case to be followed by the phrase “and only if”; (vii) the
term “or” means “and/or”; (viii) reference to any statute includes any rules and regulations promulgated
thereunder; (ix) any agreement, instrument, insurance policy, Law or Order defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement, instrument, insurance policy, Law or Order as from time to time amended,
modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes,
regulations, rules or orders) by succession of comparable successor statutes, regulations, rules or orders and references to all
attachments thereto and instruments incorporated therein; and (x) except as otherwise indicated, all references in this Agreement
to the words “Section,” “Schedule”, “Exhibit”, “Annex” are intended to refer to
sections, schedules, exhibits and annexes to this Agreement.

 

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

 

10.5.       Assignment.
This Agreement may not be assigned by any party without the prior written consent of the other parties hereto, and any attempted
assignment in violation of this Section 10.5 shall be null and void ab initio; provided, however, that after
the Closing, Buyer may assign its rights and benefits hereunder (i) to any Affiliate of Buyer (provided, that Buyer shall remain
primarily responsible for its obligations hereunder) or (ii) to any Person acquiring all or substantially all of the Purchased
Assets or all or substantially all of the assets of Buyer and its Subsidiaries taken as a whole (provided that the assignee expressly
assumes the obligations of the assignor hereunder). Subject to the preceding sentence, this Agreement will apply to, be binding
in all respects upon and inure to the benefit of the successors and permitted assigns of each party hereto.

 

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

 

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

 

10.8.       Remedies.
Except as specifically set forth in this Agreement, any party having any rights under any provision of this Agreement will have
all rights and remedies set forth in this Agreement and all rights and remedies which such party may have been granted at any time
under any other contract or agreement and all of the rights which such party may have under any applicable Law. Except as specifically
set forth in this Agreement, any such party will be entitled to (a) enforce such rights specifically, without posting a bond or
other security or proving that monetary damages would be inadequate (including Buyer’s right to equitable relief, including
injunction and specific enforcement, in the event of any breach of Section 6.3 hereof), (b) to recover damages by reason
of a breach of any provision of this Agreement and (c) to exercise all other rights granted by applicable Law. The exercise of
any remedy by a party will not preclude the exercise of any other remedy by such party.

 

10.9.       Dispute
Resolution. Any and all disputes, controversies and claims (other than applications for a temporary restraining order, preliminary
injunction, permanent injunction or other equitable relief or an application for enforcement of a resolution under this Section
10.9) arising out of, related to, or in connection with this Agreement or the transactions contemplated hereby (a “Dispute”)
shall be governed by this Section 10.9. A party must, in the first instance, provide written notice of any Disputes to the
other parties subject to such Dispute, which notice must provide a reasonably detailed description of the matters subject to the
Dispute. The parties involved in such Dispute shall seek to resolve the Dispute on an amicable basis within ten (10) Business Days
of the notice of such Dispute being received by such other parties subject to such Dispute (the “Resolution Period”);
provided, that if any Dispute would reasonably be expected to have become moot or otherwise irrelevant if not decided within
sixty (60) days after the occurrence of such Dispute, then there shall be no Resolution Period with respect to such Dispute. Any
Dispute that is not resolved during the Resolution Period may immediately be referred to and finally resolved by arbitration pursuant
to the then-existing Expedited Procedures of the Commercial Arbitration Rules (the “AAA Procedures”)
of the American Arbitration Association (the “AAA”). Any party involved in such Dispute may submit the
Dispute to the AAA to commence the proceedings after the Resolution Period. To the extent that the AAA Procedures and this Agreement
are in conflict, the terms of this Agreement shall control. The arbitration shall be conducted by one arbitrator nominated by the
AAA promptly (but in any event within five (5) Business Days) after the submission of the Dispute to the AAA and reasonably acceptable
to each party subject to the Dispute, which arbitrator shall be a commercial lawyer with substantial experience arbitrating disputes
under acquisition agreements. The arbitrator shall accept his or her appointment and begin the arbitration process promptly (but
in any event within five (5) Business Days) after his or her nomination and acceptance by the parties subject to the Dispute. The
proceedings shall be streamlined and efficient. The arbitrator shall decide the Dispute in accordance with the substantive law
of the State of New York. Time is of the essence. Each party shall submit a proposal for resolution of the Dispute to the arbitrator
within twenty (20) Business Days after confirmation of the appointment of the arbitrator. The arbitrator shall have the power to
order any party to do, or to refrain from doing, anything consistent with this Agreement, the Ancillary Documents and applicable
Law, including to perform its contractual obligation(s); provided, that the arbitrator shall be limited to ordering pursuant to
the foregoing power (and, for the avoidance of doubt, shall order) the relevant party (or parties, as applicable) to comply with
only one or the other of the proposals. The arbitrator’s award shall be in writing and shall include a reasonable explanation
of the arbitrator’s reason(s) for selecting one or the other proposal. The seat of arbitration shall be in New York County,
State of New York. Judgment on the arbitration award may be entered in any court having jurisdiction over the subject matter of
controversy.

 

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10.10.    Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware (without giving effect to its choice of law principles). Except
as expressly set forth in this Agreement, including Section 10.9 hereof, for purposes of any Action arising out of or in
connection with this Agreement or any transaction contemplated hereby, each of the parties hereto (a) irrevocably submits to the
exclusive jurisdiction and venue of any state or federal court located within New York County in the State of New York (or in any
appellate courts thereof), (b) agrees that service of any process, summons, notice or document by U.S. registered mail to such
party’s respective address set forth in Section 10.2 shall be effective service of process for any Action with respect
to any matters to which it has submitted to jurisdiction in this Section 10.10, and (c) waives and covenants not to assert
or plead, by way of motion, as a defense or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction
of such court, that the Action is brought in an inconvenient forum, that the venue of the Action is improper or that this Agreement
or the subject matter hereof may not be enforced in or by such court, and hereby agrees not to challenge such jurisdiction or venue
by reason of any offsets or counterclaims in any such Action. Each party hereto agrees that a final judgement in any such Action
shall be conclusive and may be enforced in each other jurisdiction by suit on the judgment or in any other manner provided by law
or in equity. Each party hereto hereby knowingly, voluntarily and intentionally waives
any right such party may have to a trial by jury in respect to any litigation based hereon, or arising out of, under, or in connection
with this Agreement and any agreement contemplated to be executed in connection herewith, or any course of conduct, course of dealing,
statements (whether verbal or written) or actions of any party in connection with such agreements, in each case, whether now existing
or hereafter arising and whether in tort, contract or otherwise. Each party hereto acknowledges that it has been informed by the
other parties hereto that this Section 10.10 constitutes a material inducement upon which they are relying and will rely
in entering into this Agreement.

 

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

 

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

 

    32

     

    

 

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

 

    33

     

    

 

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

 

	 	Seller:
	 	 	 
	 	CBM
                                         BIOPHARMA, INC., a Delaware corporation
	 	 	 
		By:	/s/ Scott Wilfong
	 	Name: 	Scott Wilfong
	 	Title:	CEO
	 	 
	 	Buyer:
	 	 	 
	 	SHPERIX INCORPORATED,
a Delaware corporation
	 	 	 
		By:	/s/ Anthony Hayes
	 	Name: 	Anthony Hayes
	 	Title:	CEO

 

[Signature Page to Asset Purchase Agreement] 

 

     

     

    

 

Annex I

Definitions

 

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

 

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

 

“Affiliate”
means, as applied to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect
common control with, such Person, where “control” (including with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

 

“Ancillary
Document” means each agreement, instrument or document attached hereto as an exhibit, including the Bill of Sale,
the Certificate of Designation, the Escrow Agreement, the Employee Agreements, and the other agreements, certificates and instruments
to be executed or delivered by any of the parties hereto in connection with or pursuant to this Agreement.

 

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

 

“Buyer Common
Stock Price” means an amount equal to $3.61 per share; provided, that in the event that any equity securities
are issued or issuable by Buyer (or its successor) after the Closing with respect to shares of Buyer Common Stock (whether by
way of any equity dividend, equity split or reverse equity split or in exchange for or upon conversion of such shares or otherwise
in connection with a combination of shares, recapitalization, merger, consolidation or other corporation reorganization), Buyer
Common Stock Price thereafter will be equitably adjusted for any such events are reasonably determined in good faith by Buyer.

 

“Buyer Preferred
Stock” means the shares of Buyer’s Series L Convertible Preferred Stock issued or issuable hereunder having
the rights, preferences and privileges set forth in the Certificate of Designation.

 

“Certificate
of Designation” means the certificate of designation of preferences, rights and limitations of Buyer Preferred Stock
to be filed prior to the Closing with the Secretary of State of Nevada, in the form of Exhibit D attached hereto.

 

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

 

“Confidential
Information” means the terms and provisions of this Agreement and any information concerning the Purchased Assets,
the Assumed Liabilities or the Business or, to the extent disclosed in connection with this Agreement or the Ancillary Documents
or the transactions contemplated hereby or thereby, Buyer or its Affiliates that is not generally available to the public, including
Trade Secrets, customer lists, details of customer or consultant contracts, pricing policies, operational methods and marketing
plans or strategies, and any information disclosed to Seller or Buyer or their respective Affiliates by third parties to the extent
that they have an obligation of confidentiality in connection therewith; provided, however, that Confidential Information
shall not include any information which, at the time of disclosure, is generally available publicly and was not disclosed in breach
of this Agreement by Seller or its Representatives.

 

 

     

     

    

 

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

 

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

 

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

 

“Employee
Agreements” means the offer letters and agreements of employment between Buyer and each of the Transferred Employees,
in the forms reasonably agreed to by Buyer (the) duly executed by each such Transferred Employee set forth on Exhibit C.

 

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

 

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

 

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

 

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

 

“Governmental
Authority” means any federal or national, state or provincial, municipal or local government, governmental authority,
regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, political subdivision,
court, tribunal, official arbitrator or arbitral body in each case whether domestic or foreign.

 

     

     

    

 

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

 

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

 

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

 

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

 

“Knowledge”
means: (i) with respect to Seller, the knowledge of a particular matter by any of the directors or officers of Seller, after reasonable
inquiry; and (ii) with respect to Buyer, the actual knowledge of a particular matter by any of the officers of Buyer, after reasonable
inquiry.

 

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

 

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

 

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

 

     

     

    

 

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

 

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

 

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

 

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

 

“Organizational
Documents” means a company’s certificate of incorporation, certificate of formation, articles of organization
or other equivalent charter document and bylaws, operating agreement or other equivalent document.

 

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

 

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

 

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

 

     

     

    

 

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

 

“Qualified
Financing” means, the sale by Buyer of Buyer Common Stock, Series L convertible preferred stock or any other equity
or equity-linked financing of Buyer to investors in one or more transactions after the date hereof for which Buyer receives aggregate
gross proceeds of greater than Two Million U.S. Dollars ($2,000,000).

 

“Representative”
means, as to any Person, such Person’s Affiliates and the managers, directors, officers, employees, independent contractors,
consultants, advisors (including financial advisors, counsel and accountants), agents and other representatives of such Person
and its Affiliates.

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

“Trade Secrets”
means, as they exist in any jurisdiction throughout the world, any trade secrets, confidential business information, concepts,
ideas, designs, research or development information, processes, procedures, techniques, technical information, specifications,
operating and maintenance manuals, engineering drawings, methods, know-how, data, mask works, discoveries, inventions, modifications,
extensions, improvements, and any other information, however documented, that is a trade secret within the meaning of the applicable
trade secret protection Laws, including the Uniform Trade Secrets Act.

 

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

 

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

 

“Transaction
Expenses” means the aggregate of (i) all fees, commissions, costs and expenses incurred by or on behalf of Seller
in connection with the negotiation, execution or performance of this Agreement or the Ancillary Documents or the consummation of
the transactions contemplated hereby or thereby (or incurred in connection with the transactions hereunder or thereunder) including
any of the foregoing payable to legal counsel, accountants, investment bankers, financial advisors, brokers, finders, or consultants,
and (ii) any Transfer Taxes, whether such Taxes are assessed initially against Buyer or Seller or any of their respective Affiliates.

 

“Underlying
Shares” means the shares of Buyer Common Stock issued and issuable upon conversion of Buyer Preferred Stock and issued
and issuable in lieu of the cash payment of dividends on the Preferred Stock in accordance with the terms of the Certificate of
Designation.

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