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FORM OF OFFICER INDEMNIFICATION AGREEMENT

This Indemnification Agreement (“Agreement”) is made as of ___________, 20__ by and between FARO Technologies, Inc., a Florida corporation (the “Company”), and [Name of Indemnitee] (“Indemnitee”).

RECITALS

WHEREAS, the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company;

WHEREAS, in order to induce Indemnitee to provide or continue to provide services to the Company, the Company wishes to provide for the indemnification of, and advancement of expenses to, Indemnitee to the maximum extent permitted by law;

WHEREAS, the Amended and Restated Articles of Incorporation (as amended and in effect from time to time, the “Charter”) and the Amended and Restated By-laws (as amended and in effect from time to time, the “Bylaws”) of the Company require indemnification of the officers and directors of the Company, and Indemnitee may also be entitled to indemnification pursuant to the Florida Business Corporation Act (the “FBCA”); 

WHEREAS, the Charter, the Bylaws and the FBCA expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting and retaining highly qualified persons such as Indemnitee is detrimental to the best interests of the Company’s shareholders;

WHEREAS, it is reasonable and prudent for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, regardless of any amendment or revocation of the Charter or the Bylaws, so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

WHEREAS, this Agreement is a supplement to and in furtherance of the indemnification provided in the Charter, the Bylaws and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.Services to the Company.  Indemnitee agrees to serve as [a director and][1] an officer of the Company.  Indemnitee may at any time and for any reason resign from [any] such position (subject to any other contractual obligation or any obligation imposed by law), in which event the Company shall have no obligation under this Agreement to 

continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. 

Section 2.Definitions.

As used in this Agreement:

(a)“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended, as in effect on the date of this Agreement; provided, however, that no Person who is a director or officer of the Company shall be deemed an Affiliate or an Associate of any other director or officer of the Company solely as a result of his or her position as director or officer of the Company.

(b)A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “Beneficially Own” and have “Beneficial Ownership” of, any securities:

(i)which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, Beneficially Owns (as determined pursuant to Rule 13d-3 of the Rules under the Exchange Act, as in effect on the date of this Agreement);

(ii)which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has: (A) the legal, equitable or contractual right or obligation to acquire (whether directly or indirectly and whether exercisable immediately or only after the passage of time, compliance with regulatory requirements, satisfaction of one or more conditions (whether or not within the control of such Person) or otherwise) upon the exercise of any conversion rights, exchange rights, rights, warrants or options, or otherwise; (B) the right to vote pursuant to any agreement, arrangement or understanding (whether or not in writing); or (C) the right to dispose of pursuant to any agreement, arrangement or understanding (whether or not in writing) (other than customary arrangements with and between underwriters and selling group members with respect to a bona fide public offering of securities); 

(iii)which are Beneficially Owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting or disposing of any securities of the Company; or

(iv)that are the subject of a derivative transaction entered into by such Person or any of such Person’s Affiliates or Associates, including, for these purposes, any derivative security acquired by such Person or any of such Person’s Affiliates or Associates that gives such Person or any of such Person’s Affiliates or Associates the economic equivalent of ownership of an amount of securities due to the fact that the value of the derivative security is explicitly determined by reference to the price or value of such securities, or that provides such Person or any of such Person’s Affiliates or Associates an opportunity, directly or indirectly, to profit or to share in any profit derived from any change in the value of such securities, in any case without regard to whether (A) such derivative security conveys any voting rights in such securities to such Person or any of such Person’s Affiliates or Associates; (B) the derivative security is required to be, or capable of being, settled through delivery of such securities; or (C) such Person or any of such Person’s Affiliates or Associates may have entered into other transactions that hedge the economic effect of such derivative security;

Notwithstanding the foregoing, no Person engaged in business as an underwriter of securities shall be deemed the Beneficial Owner of any securities acquired through such Person’s participation as an underwriter in good faith in a firm commitment underwriting.

(c)“Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i)Acquisition of Stock by Third Party. Any Person is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors, provided that a Change in Control shall be deemed to have occurred if subsequent to such reduction such Person becomes the Beneficial Owner, directly or indirectly, of any additional securities of the Company conferring upon such Person any additional voting power;

(ii)Change in Board of Directors. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(c)(i), 2(c)(iii) or 2(c)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election 

or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

(iii)Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or successor entity) more than 50% of the combined voting power of the voting securities of the surviving or successor entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving or successor entity;

(iv)Liquidation. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale, lease, exchange or other transfer by the Company, in one or a series of related transactions, of all or substantially all of the Company’s assets; and

(v)Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

(d)“Corporate Status” describes the status of a person as a current or former [director or] officer of the Company or current or former director, manager, partner, officer, employee, agent or trustee of any other Enterprise which such person is or was serving at the request of the Company.

(e)“Enforcement Expenses” shall include all reasonable attorneys’ fees, court costs, transcript costs, fees of experts, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other out-of-pocket disbursements or expenses of the types customarily incurred in connection with an action to enforce indemnification or advancement rights, or an appeal from such action.  Expenses, however, shall not include fees, salaries, wages or benefits owed to Indemnitee.

(f)“Enterprise” shall mean any corporation (other than the Company), partnership, joint venture, trust, employee benefit plan, limited liability company, or other legal entity of which Indemnitee is or was serving at the request of the Company as a director, manager, partner, officer, employee, agent or trustee.

(g)“Expenses” shall include all reasonable attorneys’ fees, court costs, transcript costs, fees of experts, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other out-of-

pocket disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding or an appeal resulting from a Proceeding.  Expenses, however, shall not include amounts paid in settlement by Indemnitee, the amount of judgments or fines against Indemnitee or fees, salaries, wages or benefits owed to Indemnitee.

(h)“Independent Counsel” means a law firm, or a partner (or, if applicable, member or shareholder) of such a law firm, that is experienced in matters of Florida corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Company, any subsidiary of the Company, any Enterprise or Indemnitee in any matter material to any such party; or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(i)“Person” shall mean (i) an individual, a corporation, a partnership, a limited liability company, an association, a joint stock company, a trust, a business trust, a government or political subdivision, any unincorporated organization, or any other association or entity including any successor (by merger or otherwise) thereof or thereto, and (ii) a “group” as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

(j)The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, regulatory or investigative nature, and whether formal or informal, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was [a director or] an officer of the Company or is or was serving at the request of the Company as a director, manager, partner, officer, employee, agent or trustee of any Enterprise or by reason of any action taken by Indemnitee or of any action taken on his or her part while acting as [a director or] an officer of the Company or while serving at the request of the Company as a director, manager, partner, officer, employee, agent or trustee of any Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement; provided, however, that the term “Proceeding” shall not include any action, suit or arbitration, or part thereof, initiated by Indemnitee to enforce 

Indemnitee’s rights under this Agreement as provided for in Section 12(a) of this Agreement.

Section 3.Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee to the extent set forth in this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines, penalties, excise taxes, and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful.  

Section 4.Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee to the extent set forth in this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Florida Court (as hereinafter defined) shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the Florida Court (as hereinafter defined) shall deem proper.

Section 5.Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provisions of this Agreement and except as provided in Section 7, to the extent that Indemnitee is a party to or a participant in any Proceeding and is successful in such Proceeding or in defense of any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on his or her behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 6.Reimbursement for Expenses of a Witness or in Response to a Subpoena.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee, by reason of his or her Corporate Status, (i) is a witness in any Proceeding to which 

Indemnitee is not a party and is not threatened to be made a party or (ii) receives a subpoena with respect to any Proceeding to which Indemnitee is not a party and is not threatened to be made a party, the Company shall reimburse Indemnitee for all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection therewith.    

Section 7.Exclusions.  Notwithstanding any provision in this Agreement to the contrary, the Company shall not be obligated under this Agreement:  

(a)to indemnify for amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received such amounts under any insurance policy, contract, agreement or otherwise;

(b)to indemnify for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law, or from the purchase or sale by Indemnitee of such securities in violation of Section 306 of the Sarbanes-Oxley Act of 2002 (“SOX”);

(c)to indemnify for any reimbursement of, or payment to, the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company pursuant to Section 304 of SOX or any formal policy of the Company adopted by the Board (or a committee thereof), or any other remuneration paid to Indemnitee if it shall be determined by a final judgment or other final adjudication that such remuneration was in violation of law; 

(d)to indemnify with respect to any Proceeding, or part thereof, brought by Indemnitee against the Company, any legal entity which it controls, any director or officer thereof or any third party, unless (i) the Board has consented to the initiation of such Proceeding or part thereof and (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law; provided, however, that this Section 7(d) shall not apply to (A) counterclaims or affirmative defenses asserted by Indemnitee in an action brought against Indemnitee or (B) any action brought by Indemnitee for indemnification or advancement from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company in the suit for which indemnification or advancement is being sought as described in Section 12; or

(e)to provide any indemnification or advancement of expenses that is prohibited by applicable law (as such law exists at the time payment would otherwise be required pursuant to this Agreement).

Section 8.Advancement of Expenses.  Subject to Section 9(b), the Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made as incurred, and such advancement shall be made within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances (including any invoices received by Indemnitee, which such invoices may be redacted as necessary to avoid the waiver of any privilege accorded by applicable law) from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee’s (i) ability to repay the expenses, (ii) ultimate entitlement to indemnification under the other provisions of this Agreement, and (iii) entitlement to and availability of insurance coverage, including advancement, payment or reimbursement of defense costs, expenses or covered loss under the provisions of any applicable insurance policy (including, without limitation, whether such advancement, payment or reimbursement is withheld, conditioned or delayed by the insurer(s)).  The obligation of the Company to make advances pursuant to this Section 8 shall be conditioned upon delivery to the Company of an undertaking in writing by or on behalf of Indemnitee in which Indemnitee undertakes to the fullest extent required by law to repay the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company.  No other form of undertaking shall be required.  The right to advances under this paragraph shall in all events continue until final disposition of any Proceeding, including any appeal therein.  Nothing in this Section 8 shall limit Indemnitee’s right to advancement pursuant to Section 12(e) of this Agreement.

Section 9.Procedure for Notification and Defense of Claim.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request therefor specifying the basis for the claim, the amounts for which Indemnitee is seeking payment under this Agreement, and all documentation related thereto as reasonably requested by the Company.
  
(b)In the event that the Company shall be obligated hereunder to provide indemnification for or make any advancement of Expenses with respect to any Proceeding, the Company shall be entitled to assume the defense of such Proceeding, or any claim, issue or matter therein, with counsel approved by Indemnitee (which approval shall not be unreasonably withheld or delayed) upon the delivery to Indemnitee of written notice of the Company’s election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees or expenses of separate counsel subsequently employed by or on behalf of Indemnitee with respect to the same Proceeding; provided that (i) Indemnitee shall have the right to employ separate counsel in any such Proceeding at Indemnitee’s expense and (ii) if (A) the employment of separate counsel by Indemnitee has been previously authorized by the Company and the Company has agreed, as part of such authorization to cover the cost of such separate counsel, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in 

the conduct of such defense, (C) the Company shall not continue to retain such counsel to defend such Proceeding, or (D) a Change in Control shall have occurred, then the fees and expenses actually and reasonably incurred by Indemnitee with respect to his or her separate counsel shall be Expenses hereunder.  

(c)In the event that the Company does not assume the defense in a Proceeding pursuant to paragraph (b) above, then the Company will be entitled to participate in the Proceeding at its own expense.

(d)The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s prior written consent (which consent shall not be unreasonably withheld or delayed).  Without limiting the generality of the foregoing, the fact that an insurer under an applicable insurance policy delays or is unwilling to consent to such settlement or is or may be in breach of its obligations under such policy, or the fact that directors’ and officers’ liability insurance is otherwise unavailable or not maintained by the Company, may not be taken into account by the Company in determining whether to provide its consent. The Company shall not, without the prior written consent of Indemnitee (which consent shall not be unreasonably withheld or delayed), enter into any settlement which (i) includes an admission of fault of Indemnitee, any non-monetary remedy imposed on Indemnitee or any monetary damages for which Indemnitee is not wholly and actually indemnified hereunder or (ii) with respect to any Proceeding with respect to which Indemnitee may be or is made a party or may be otherwise entitled to seek indemnification hereunder, does not include the full release of Indemnitee from all liability in respect of such Proceeding.

Section 10.Procedure Upon Application for Indemnification.

(a)Upon written request by Indemnitee for indemnification pursuant to Section 9(a), a determination, if such determination is required by applicable law, with respect to Indemnitee’s entitlement to indemnification hereunder shall be made in the specific case by one of the following methods: [(x) if a Change in Control shall have occurred and indemnification is being requested by Indemnitee hereunder in his or her capacity as a director of the Company, by Independent Counsel in a written opinion to the Board; or (y) in any other case,] (i) by a majority vote of the disinterested directors, even though the disinterested directors represent less than a quorum of the Board; (ii) by a committee of disinterested directors designated by a majority vote of the directors; or (iii) if there are no disinterested directors or if the disinterested directors of the Board, by a majority vote of such disinterested directors, so direct, by Independent Counsel in a written opinion to the Board.  For purposes hereof, disinterested directors are those members of the Board who are not parties to the action, suit or proceeding in respect of which indemnification is sought.  In the case that such determination is made by Independent Counsel, a copy of Independent Counsel’s written opinion shall be delivered to Indemnitee and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within thirty (30) days after such determination in accordance with Section 

12(a)(iii).  Indemnitee shall cooperate with the Independent Counsel or the Company, as applicable, in making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such Independent Counsel or the Company, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  The Company shall likewise cooperate with Indemnitee and Independent Counsel, if applicable, in making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such counsel and Indemnitee, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to the Company and reasonably necessary to such determination.  Any out-of-pocket costs or expenses (including reasonable attorneys’ fees and disbursements) actually and reasonably incurred by Indemnitee in so cooperating with the Independent Counsel or the Company shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

(b)If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a), the Independent Counsel shall be selected by the Board[; provided that, if a Change in Control shall have occurred and indemnification is being requested by Indemnitee hereunder in his or her capacity as a director of the Company, the Independent Counsel shall be selected by Indemnitee].  Indemnitee [or the Company, as the case may be,] may, within ten (10) days after written notice of such selection, deliver to the Company [or Indemnitee, as the case may be,] a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Florida Court (as hereinafter defined) has determined that such objection is without merit.  If, in circumstances where an Independent Counsel is to be selected and within twenty (20) days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 9(a), and (ii) the final disposition of the Proceeding, including any appeal therein, no Independent Counsel shall have been selected without objection, either Indemnitee or the Company may petition the Florida Court for resolution of any objection which shall have been made by Indemnitee or the Company to the selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Florida Court or by such other person as the Florida Court shall designate.   The person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 10(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

(c)Notwithstanding anything to the contrary contained in this Agreement, the determination of entitlement to indemnification under this Agreement shall be made without regard to the Indemnitee’s entitlement to and availability of insurance coverage, including advancement, payment or reimbursement of defense costs, expenses or covered loss under the provisions of any applicable insurance policy (including, without limitation, whether such advancement, payment or reimbursement is withheld, conditioned or delayed by the insurer(s)).

Section 11.Presumptions and Effect of Certain Proceedings. 

(a)To the extent permitted by applicable law, in making a determination with respect to entitlement to indemnification hereunder, it shall be presumed that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof and the burden of persuasion by clear and convincing evidence to overcome that presumption in connection with the making of any determination contrary to that presumption.   

(b)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of guilty, nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

(c)Indemnitee shall be presumed to have acted in good faith if Indemnitee’s actions were based in good faith reliance on (i) the records or books of account of the Company or any other Enterprise, including financial statements, or on information supplied to Indemnitee by the directors, officers, agents or employees of the Company or any other Enterprise in the course of their duties, or on information or records given or reports made to the Company or any other Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Company or such other Enterprise or (ii) with the advice of legal counsel for the Company or any other Enterprise selected with reasonable care by the Company or such other Enterprise. The provisions of this Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. In addition, the knowledge and/or actions, or failure to act, of any director, manager, partner, officer, employee, agent or trustee of the Company, any subsidiary of the Company, or any Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 11(c) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

Section 12.Remedies of Indemnitee.

(a)Subject to Section 12(f), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(a) of this Agreement within sixty (60) days after receipt by the Company of the request for indemnification for which a determination is to be made other than by Independent Counsel, (iv) payment of indemnification or reimbursement of expenses is not made pursuant to Section 5 or 6 or the last sentence of Section 10(a) of this Agreement within thirty (30) days after receipt by the Company of a written request therefor (including any invoices received by Indemnitee, which such invoices may be redacted as necessary to avoid the waiver of any privilege accorded by applicable law) or (v) payment of indemnification pursuant to Section 3 or 4 of this Agreement is not made within thirty (30) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by the Florida Court (as hereinafter defined) as to whether he or she is entitled to such indemnification or advancement.  Alternatively, Indemnitee, at his or her option, may seek in arbitration (to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association) an award as to whether he or she is entitled to such indemnification or advancement.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing time limitation shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights under Section 5 of this Agreement.  The Company shall not oppose Indemnitee’s right to so seek any such adjudication or award in arbitration.

(b)In the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 12, the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement, as the case may be

(c)If a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d)The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or 

before any such arbitrator that the Company is bound by all the provisions of this Agreement.  

(e)The Company shall indemnify Indemnitee to the fullest extent permitted by law against any and all Enforcement Expenses and, if requested by Indemnitee, shall (within thirty (30) days after receipt by the Company of a written request therefor) advance, as from time to time submitted, to the extent not prohibited by law, such Enforcement Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company in the suit for which indemnification or advancement is being sought.  Each such written request for advancement shall include the respective invoices received by Indemnitee in connection with such Enforcement Expenses but, in the case of any invoice in connection with legal services, any references to legal work performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law need not be included with the respective invoice.

(f)Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding, including any appeal therein.

Section 13.Non-exclusivity; Survival of Rights; Insurance; Subrogation.

(a)The rights of indemnification and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter, the Bylaws, any agreement, a vote of shareholders or a resolution of directors, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Florida law, whether by statute or judicial decision, permits greater indemnification or advancement than would be afforded currently under the Charter, Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

(b)To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, managers, partners, officers, employees, agents or trustees of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, manager, partner, officer, employee, agent or trustee under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in 

effect, the Company shall give prompt notice of such claim to the insurers in accordance with the procedures set forth in the respective policies.   The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Upon request of Indemnitee, the Company shall also promptly provide to Indemnitee: (i) copies of all of the Company’s potentially applicable directors’ and officers’ liability insurance policies, (ii) copies of such notices delivered to the applicable insurers, and (iii) copies of all subsequent communications and correspondence between the Company and such insurers regarding the Proceeding.

(c)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action reasonably necessary to secure such rights, including execution of such documents as are reasonably necessary to enable the Company to bring suit to enforce such rights.

(d)The Company’s obligation to provide indemnification or advancement hereunder to Indemnitee who is or was serving at the request of the Company as a director, manager, partner, officer, employee, agent or trustee of any other Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement from such other Enterprise.

Section 14.Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee is no longer servicing the Company as either a director or an officer of the Company or (b) one (1) year after the final termination of any Proceeding, including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto.  This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his or her heirs, executors and administrators.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place, but the failure of the successor to provide such written agreement shall not in any way limit the obligations of such successor under this Agreement.

Section 15.Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent 

of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 16.Enforcement.

(a)The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to serve as [a director and] an officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as [a director and] an officer of the Company.

(b)This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Charter, the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

Section 17.Modification and Waiver.  No supplement, modification or amendment, or waiver of any provision, of this Agreement shall be binding unless executed in writing by the parties thereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.  No supplement, modification or amendment of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee prior to such supplement, modification or amendment.

Section 18.Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification, reimbursement or advancement as provided hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise.  

Section 19.Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (iii) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (iv) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:

(a)If to Indemnitee, at such address as Indemnitee shall provide to the Company.

(b)If to the Company to:

FARO Technologies, Inc.
250 Technology Park
Lake Mary, Florida 32746
Attention: President
or to any other address as may have been furnished to Indemnitee by the Company.

Section 20.Contribution.  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Proceeding in such proportion as is deemed fair and reasonable in light of all of the circumstances in order to reflect (i) the relative benefits received by the Company and Indemnitee in connection with the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transactions.

Section 21.Internal Revenue Code Section 409A.  The Company intends for this Agreement to comply with the indemnification exception under Section 1.409A-1(b)(10) of the regulations promulgated under the Internal Revenue Code of 1986, as amended (the “Code”), which provides that indemnification of, or the purchase of an insurance policy providing for payments of, all or part of the expenses incurred or damages paid or payable by Indemnitee with respect to a bona fide claim against Indemnitee or the Company do not provide for a deferral of compensation, subject to Section 409A of the Code, where such claim is based on actions or failures to act by Indemnitee in his or her capacity as a service provider of the Company.  The parties intend that this Agreement be interpreted and construed with such intent

Section 22.Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in a state court of the State of Florida or in the District Court for the Middle District of Florida, Orlando Division (any of such courts herein referred to as the “Florida Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Florida Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) consent to service of process at the address set forth in Section 19 of this Agreement with the same legal force and validity as if served upon such party personally within the State of Florida, (iv) waive any objection to the laying of venue of any such action or proceeding in the Florida Court, and (v) waive, and agree not to plead or to make, 

any claim that any such action or proceeding brought in the Florida Court has been brought in an improper or inconvenient forum.

Section 23.Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 24.Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Delivery of an executed counterpart’s signature page of this Agreement, by facsimile, electronic mail in portable document format (.pdf) or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, has the same effect as delivery of an executed original of this Agreement for all purposes. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 25.Monetary Damages Insufficient/Specific Enforcement.  The Company and Indemnitee agree that a monetary remedy for breach of this Agreement may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm (having agreed that actual and irreparable harm will result in not forcing the Company to specifically perform its obligations pursuant to this Agreement) and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he or she may be entitled. The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Florida Court, and the Company hereby waives any such requirement of a bond or undertaking.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

                                                                        FARO TECHNOLOGIES, INC.

                                                                        By:                                                                  
                                                                            Name: Michael Burger                                                                                                                           Title: President and Chief Executive Officer

                                                                             [Name of Indemnitee]Exhibit
10.1

 

 

 

LIVEXLIVE
MEDIA, INC

9200
Sunset Boulevard, Suite #1201

West
Hollywood, CA 90069

 

October
22, 2020

 

Custom
Personalization Solutions, LLC

3349
North Elston Ave

Chicago,
Ill 60618

Attn:
Scott Norman

 

Dear
Mr. Norman

 

This
letter of intent (this “Letter”) sets forth the terms of a proposed acquisition (the “Acquisition”)
by LiveXLive Media, Inc., a Delaware corporation (“LXL Media”), or its subsidiary (“LXL Subsidiary”
and together with LXL Media, “Buyer”), of 100% of the issued and outstanding membership interests of Custom
Personalization Solutions, LLC (the “Company”).

 

This
Letter shall constitute a binding agreement and create legally enforceable obligations against the parties with respect to the
Acquisition in accordance with the terms thereof, regardless of whether the Parties later execute or fail to execute the Definitive
Agreement (as defined below). The closing of the Acquisition shall be subject to approval by the Board of Directors of Buyer and
the Company (which shall be obtained prior to execution of the Definitive Agreement) and satisfactory completion of business and
legal due diligence by Buyer.

 

Part
I of this Letter summarizes the principal terms of the proposed Acquisition. Part II of this Letter contains certain terms, conditions
and covenants. The Parties shall fully cooperate with each other and use their reasonable best efforts to prepare, execute and
deliver a definitive agreement with respect to the Acquisition on the terms herein (the “Definitive Agreement”) and
all other documents necessary or desirable to effect the transactions contemplated hereunder as soon as possible and to thereafter
satisfy each of the conditions to the closing specified thereunder, subject to Section 14 of the Part II below. Buyer will prepare
the initial draft of the Definitive Agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

     

     

    

 

PART
I

 

The
following paragraphs of this Letter are legally binding and enforceable agreements of Buyer, Company and Sellers.

 

		1.	BASIC
                                         TRANSACTION

 

Buyer
will acquire 100% of the issued and outstanding membership interests of the Company from the holders thereof (collectively, “Sellers”)
via a membership interest purchase agreement or a reverse triangular merger (or some other mutually agreed upon structure) in
consideration for $6,000,000 worth of LXL Media’s shares of restricted common stock, $0.001 par value per share (the “Shares”),
subject to a working capital adjustment to be determined after diligence and subject to the below requirements (the “Purchase
Price”). The Shares shall be priced based on the Volume-Weighted Average Closing Price (as defined below) and shall
be subject to a lock-up period of 12 months from the closing date, such that no Shares can be sold, transferred, assigned, hypothecated,
or in any way disposed of, or any right or interest therein, whether voluntarily or by operation of law, or by gift or otherwise
prior to the expiration of such period.

 

Buyer
will deliver $4,500,000 worth of Shares at closing. Buyer will deliver remaining $1,500,000 worth of Shares if (i) the Company
reports GAAP revenue of $20,000,000 and $1,000,000 of EBITDA for the year ended December 31, 2020, and (ii) at the closing of
the Acquisition, the Company’s target working capital is $2,700,000 (including $800,000 of cash) and the Company has no
more than $1,300,000 in debt.

 

At
closing, ten percent (10%) of the Purchase Price (the “Escrow Amount”) shall be deducted from the closing payment
and placed into an escrow account to provide a ready source of funds in the event of any adjustments and to secure the performance
of Sellers’ obligations under the Definitive Agreement. The Escrow Amount will be paid to the Sellers twelve (12) months
after the date of closing, other than amounts with respect to outstanding and bona fide indemnification claims as of the end of
such 12-month period, which amounts will be distributed when such claims have been resolved.

 

“Volume-Weighted
Average Closing Price” means the volume-weighted (based on the number of shares of LXL Media’s common stock traded
on each day that the closing price is used in this calculation) average of the closing sale prices per share of LXL Media’s
common stock on the securities exchange or automated quotation system where LXL Media’s common stock is then listed or quoted,
as applicable, for the ten (10) consecutive trading days ending on the last trading day immediately preceding the closing of the
Acquisition.”

 

		2.	NON-COMPETITION
                                         AND SOLICITATION AGREEMENTS

 

The
Definitive Agreement shall contain non-competition and non-solicitation provisions binding upon each Seller and his, her or its
affiliates and such officers and employees of the Company (subject to applicable laws and regulations and such officers and employees
completing new employment agreements) as Buyer may reasonably require (the “Restricted Parties”), pursuant
to which the Restricted Parties would agree, for the three (3) year period (in respect of Sellers’ covenants) and for the
one (1) year period (in respect of the officers and employees’ covenants) following the closing, not to be involved in any
respect with any business in direct competition with the music streaming and live music events, festival and merchandising business
of the Company and its subsidiaries (as of the closing) and not to directly or indirectly solicit, recruit or hire employees of
the Company and its subsidiaries (as of the closing) (subject to customary exceptions for general solicitation).

 

    -2- 

     

    

 

		3.	OTHER
                                         TERMS

 

The
Company and the Sellers shall make customary and standard representations and warranties to Buyer and would provide appropriate
covenants, indemnities and other protections for the benefit of Buyer. The Sellers will provide customary representations and
warranties in a standard letter of transmittal. The survival period for non-fundamental representations and warranties shall be
twelve (12) months (or, if longer, 90 days after completion of the first audit of the Company (or surviving entity) following
the closing). The general survival period for fundamental business and operational representations and warranties would be twenty-four
(24) months. The general survival period for tax related representations and warranties would be the expiration of the applicable
statute of limitations. The Definitive Agreement will contain customary limitations on indemnification for a transaction of this
nature. The Sellers shall jointly and severally indemnify Buyer for any damages suffered by Buyer in connection with the Definitive
Agreement; provided, however, the aggregate liability of each Seller shall not exceed their respective pro rata
portion of the Purchase Price.

 

		4.	CONDITIONS

 

The
parties agree to prepare and negotiate in good faith a Definitive Agreement and applicable ancillary documents which will reflect
the terms set forth in this Letter, and shall contain terms, conditions, representations, warranties, agreements, covenants and
legal opinions customary and appropriate for a transaction of the type contemplated hereunder, including, without limitation,
those set forth in this Letter.

 

The
consummation by Buyer of the Acquisition would be subject to the satisfaction of the following conditions:

 

(a) satisfactory
completion of Buyer’s due diligence regarding the Company and the Acquisition;

 

(b) receipt
of all necessary material consents and approvals of third parties;

 

(c) absence
of any material adverse change in the business, financial condition, prospects or operations of the Company (or any of its subsidiaries);

 

(d) absence
of any injunction or restraining order prohibiting the Acquisition or any portion thereof;

 

(e) accuracy
of the Company’s and Sellers’ representations and warranties, and compliance by the Company and the Sellers of all
covenants or other obligations required to be performed or complied with by or as of the closing date, in each case except where
such inaccuracy or failure to perform or comply would not reasonably be expected to have a material adverse effect on Buyer or
the Company;

 

    -3- 

     

    

 

(f) delivery
of customary ancillary documents, including letters of transmittal, information statements, closing certificates and other documentation
as may be reasonably required by either Party or its respective counsel;

 

(g) delivery
by the Company of its historical financial statements (including, without limitation, for the years ended December 31, 2018 and
2019, and necessary interim financial statements to conform with SEC 8-K requirements, all prepared in accordance with GAAP) as
Buyer may reasonably require;

 

(h) Employment
Agreements with certain key employees which are in effect as of the closing date, in such form as reasonably satisfactory to Buyer;

 

(i) executed
amendments to applicable material contracts to the reasonable satisfaction of Buyer; and

 

 (j) approval of Buyer’s and Company’s Board of Directors.

 

		5.	ACCESS

 

Promptly
after this Letter is signed by the Parties, Buyer will begin a due diligence review with respect to the Company in order to determine
whether or not it is willing to proceed with the Acquisition and for the purpose of enabling it to ensure that the Definitive
Agreement contains all provisions which it deems appropriate in view of the results of such investigation. Sellers and their respective
Representatives (as defined below) will, and shall cause the Company and its Representatives, cooperate with such investigation
and will provide Buyer with such access to Sellers’ and the Companies’ properties, records, and management employees
as Buyer may reasonably request. The Parties understand that, as a result of such investigation, Buyer may determine that it is
not willing to proceed with the Acquisition or that it is not willing to do so on the terms set forth in this Letter.

 

PART
II

 

The
following paragraphs of this Letter are legally binding and enforceable agreements of Buyer, Company and Sellers.

 

		6.	CONFIDENTIALITY

 

Reference
is hereby made to that certain Mutual Non-Disclosure Agreement, dated ___________ (the “ NDA”), by and between
the Company and Buyer, the terms of which are incorporated by reference as if set forth in full herein.

 

    -4- 

     

    

 

		7.	EXCLUSIVE
                                         DEALING

 

The
Company and their respective Representatives each acknowledges that the Buyer will be required to spend substantial time and effort
in conducting due diligence and may incur substantial fees and expenses in connection with such due diligence efforts, the preparation
of the Definitive Agreement, and related matters. Accordingly, for a period from and after the date of this Letter is executed
by all Parties (the “Execution Date”) and ending on the earlier of (i) the date that is forty-five (45) days
from the Execution Date, provided that such forty-five (45) day period shall be extended for thirty (30) days if the Parties mutually
agree in writing and are engaged in good faith negotiations regarding the Definitive Agreement (the “Exclusivity Period”),
(ii) the Termination Date (as defined in Section 15 below), or (iii) the execution and delivery of the Definitive Agreement between
the Parties.

 

(a) During
the Exclusivity Period the Company, Sellers nor any of their respective employees, officers, directors, shareholders, affiliates,
agents or representatives nor their respective employees, officers, directors, shareholders, affiliates, agents or representatives
(collectively, the “Representatives”) will, directly or indirectly, through any director, officer, agent, financial
adviser, third party or otherwise, solicit or entertain offers from, negotiate with or enter into any discussions or negotiations
with respect thereto with any person other than Buyer, or in any manner encourage, discuss, accept, or consider any proposal,
formal or informal, of any other person relating to the offering, sale, divestiture or acquisition of all or any portion of the
Company and/or its respective capital stock, assets or its business, whether directly or indirectly and whether through purchase,
merger, consolidation, combination or otherwise in whatever form (other than sales of inventory in the ordinary course of the
Company’s business, as applicable) or enter into any other transaction that would preclude the consummation of the Acquisition
with Buyer consistent with the terms set forth in this Letter. The Sellers hereby agree that any action taken by any of the Representatives
of the Sellers or their respective affiliates or Representatives that would constitute a breach of this Letter if taken by any
of the Sellers or the Company, will constitute a breach of this Letter by the Sellers and the Company.

 

(b) The
Company, will immediately notify Buyer in writing regarding any inquiry, offer, proposal or contact during the Exclusivity Period
between the Company and/or their respective Representatives and any other person regarding any such inquiry, offer, proposal or
contract or any related event, transaction or item, including the material terms thereof.

 

(c) The
Parties shall fully cooperate with each other and use their reasonable best efforts to execute and deliver the Definitive Agreement
and all other documents necessary or desirable to effect the transactions contemplated hereunder as soon as possible and to thereafter
satisfy each of the conditions to the closing specified thereunder, subject to Section 14 of this Part II below.

 

		8.	CONDUCT
                                         OF BUSINESS

 

During
the period from the date of this Letter until the Termination Date, Company shall continue to operate its business and maintain
in the ordinary course of business, consistent with past practice, and will refrain from any extraordinary transactions. The Company
shall (i) use Commercially Reasonable Efforts to preserve intact their respective business organization and employees and other
business relationships; (ii) maintain its respective books, records and accounts in accordance with generally accepted accounting
principles, consistent with past practice; (iii) use Commercially Reasonable Efforts to maintain its respective current financial
condition, including working capital levels; (iv) not incur any additional indebtedness or enter into any agreements to raise
capital or sell any stock of the Company; (v), file for bankruptcy or other business reorganizational activities; and (vi) not
declare or make any dividend or stock distributions.

 

    -5- 

     

    

 

		9.	APPROVALS;
                                         FURTHER ASSURANCES

 

Upon
the terms and subject to the conditions of this Letter, the Company, the Sellers and the Buyer shall, use their respective Commercially
Reasonable Efforts to take, or cause to be taken, all appropriate action, and to do, or cause to be done, all things necessary,
proper or advisable under applicable laws to consummate and make effective the transactions, including obtaining all waivers,
licenses, permits, consents, approvals, authorizations, qualifications and orders of any Governmental Authority and parties to
applicable contracts with the Company, and/or any subsidiaries as may be necessary for the consummation of the transactions contemplated
hereunder. In furtherance of the foregoing, the Company and the Sellers shall, use their respective Commercially Reasonable Efforts
to file, and to cause each of their respective affiliates to file in conjunction with such party, all applications, requests,
notices, consents and other filings with any applicable governmental authority or third party whose approval is required in connection
with the consummation of the Transaction. The Company and the Sellers will furnish to Buyer and its representatives such necessary
information and assistance as Buyer may reasonably request in connection with the preparation of any necessary filings or submissions
by Buyer to any governmental authority or third party in order to obtain the governmental authorizations and consents referred
to in this Letter. The Company and the Sellers will use their Commercially Reasonable Efforts to do and perform, or cause to be
done and performed, all such further acts and things and shall prepare, execute and deliver the Financial Statements and all such
other agreements, certificates, instruments or documents as Buyer may reasonably request in order to carry out the intent and
purposes of this Letter and the consummation of the transactions contemplated hereby. “Commercially Reasonable Efforts”
means the reasonable best efforts that a reasonably prudent person would, at the time of executing this Letter, contemplate using
in similar circumstances in an effort to achieve the applicable desired result set forth in this Letter in a reasonably expeditious
manner.

 

		10.	DISCLOSURE

 

Except
as and to the extent required by law, without the prior written consent of the other Party, none of Buyer, the Company or the
Sellers will make, and will direct their respective Affiliates not to make, directly or indirectly, any public comment, statement,
announcement or communication with respect to, or otherwise to disclose or to permit the disclosure of the existence, the execution
or the terms of this Letter, nature of discussions regarding this Letter or the transactions contemplated hereunder, the fact
that a possible transaction between the Parties or any of the terms, conditions, status or other aspects of the transaction proposed
in or contemplated by this Letter. The Company acknowledges that LXL Media will have reporting obligations with respect to the
execution of this Letter as required by Form 8-K promulgated under the Securities Exchange Act of 1934, as amended. If Buyer,
the Company or the Sellers are required by law to make any such disclosure, such person must first provide to the other party
reasonable prior notice of the content of the proposed disclosure, the reasons that such disclosure is required by law, and the
time and place that the disclosure will be made. Buyer and the Company shall, and the Company shall cause the Sellers to, use
their respective best efforts to cooperate with the other party, to allow the other party to seek non-disclosure of such information.
In the event Buyer, the Company or the Sellers, as applicable, is required to disclose such information, it shall disclose no
more than what is legally required.

 

    -6- 

     

    

 

		11.	COSTS

 

Buyer,
the Company and the Sellers will each be responsible for and bear all of their respective costs and expenses (including any broker’s
or finder’s fees and the expenses of its representatives and agents) incurred at any time in connection with this Letter
and pursuing or consummating the Acquisition, whether or not the transactions contemplated here are consummated.

 

		12.	ENTIRE
                                         AGREEMENT

 

This
Letter, together with NDA, constitute the entire agreement among the Parties, and supersede all prior oral or written agreements,
understandings, representations and warranties, and courses of conduct and dealing between the Parties on the subject matter hereof.
This Letter may be amended or modified only by a writing executed by the Parties.

 

		13.	GOVERNING
                                         LAW; JURISDICTION: SERVICE OF PROCESS

 

This
Letter will be governed by and construed under the laws of the State of Delaware without regard to conflicts of laws principles.
Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Letter may be brought
against a Party in the courts of the State of Delaware, or, if such Party has or can acquire jurisdiction, in the United States
District Court for the State of Delaware, and each Party consents to the jurisdiction of such courts (and of the appropriate appellate
courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred
to in the preceding sentence may be served on any Party anywhere in the world.

 

		14.	TERMINATION

 

This
Letter and the obligations of the Parties hereunder will automatically terminate the next day after the Exclusivity Period (unless
otherwise mutually determined by the Parties in writing prior thereto), and may be terminated (i) prior thereto only by Buyer
at any time, for any reason or no reason, upon written notice to the company, and (ii) after the Exclusivity Period by any Party,
for any reason or no reason, with or without cause, at any time (such date in clause (i) or (ii) being referred to herein as the
“Termination Date”). Upon termination of this Letter agreement the Parties will have no further obligations
hereunder except as stated in Sections 6, 7 and 10 through 17 (inclusive) of this Letter, which will survive any such termination;
provided, however, that the termination of this Letter will not affect the liability of a Party for any breach of this Letter
prior to the termination.

 

    -7- 

     

    

 

		15.	SEVERABILITY.

 

If
any provision of this Letter is determined to be illegal, invalid, or unenforceable, then such determination does not affect the
legality, validity, or enforceability of the other provisions of this Letter, all of which remain in full force and effect. Each
of the Parties agrees that in the event of any such determination the Parties will negotiate to modify this Letter so as to effect
the original intent of the Parties as close as possible to the fullest extent permitted by applicable law.

 

		16.	PREVAILING
                                         PARTY.

 

If
any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any Party to enforce its
rights under this Letter against the other Party, all fees, costs and expenses, including, without limitation, reasonable attorneys’
fees and court costs, incurred by the prevailing Party in such litigation, action, arbitration or proceeding shall be reimbursed
by the losing Party.

 

		17.	COUNTERPARTS

 

This
Letter may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Letter and all
of which, when taken together, will be deemed to constitute one and the same agreement (facsimile signatures will have the same
effect as originals).

 

[Signature
Page Follows]

 

    -8- 

     

    

 

If
you are in agreement with the foregoing, please sign and return one copy of this Letter on or before ____, 2020, which thereupon
will constitute our agreement with respect to its subject matter.

 

	 	Very truly yours,
	 	 
	 	LiveXLive Media, Inc.
	 	 
	 	By:	/s/ Jerome N. Gold
	 	Name:	Jerome N. Gold
	 	Title:	Chief Strategy Officer

 

Duly
executed and agreed to on October 22, 2020:

 

Custom
Personalization Solutions, LLC

 

	By:	 /s/ Scott Norman	 
	Name:	 Scott Norman	 
	Title:	Authorized Signatory

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