Document:

Exhibit 10.7

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of August 31, 2021, is made by and between Simplicity
Esports and Gaming Company, a Delaware corporation (the “Company”), and LGH Investments, LLC (the “Holder”).
The Company and the Holder are hereinafter sometimes collectively referred to as the “Parties” and each a “Party”
to this Agreement.

 

RECITALS

 

WHEREAS,
the Company’s Board of Directors (the “Board”) has unanimously approved, upon the terms and subject to the conditions
of, that certain Securities Purchase Agreement, of even date herewith, by and between the Holder and the Company (the “Securities
Purchase Agreement”), that the Company shall issue and sell to Holder a convertible promissory note in the principal amount
of $200,000.00 (the “Note”), (together with the Note, and any shares of common stock in the Company issuable upon
conversion, the “Securities”), to the Holder; and

 

WHEREAS,
to induce the Holder to execute and deliver the Securities Purchase Agreement and this Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations
promulgated thereunder, and applicable state securities laws, with respect to the shares of Securities issuable pursuant to the Securities
Purchase Agreement.

 

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

 

1.
Definitions. As used in this Agreement, the following terms shall have the following meanings:

 

a.
“Closing Date” has the meaning given in the Securities Purchase Agreement.

 

b.
“Effective Date” shall mean the date the SEC declares the Registration Statement effective and the Company has filed
all necessary amendments, including the letter to request accelerated effectiveness and the Prospectus covering the resale of Registrable
Securities.

 

c.
“Filing Date” shall mean the date the Registration Statement has been filed with the SEC (as determined by EDGAR)
and no stop order of acceptance has been issued by the SEC.

 

d.
“Person” means a corporation, a limited liability company, an association, a partnership, an organization, a business,
an individual, a governmental or political subdivision thereof or a governmental agency.

 

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e.
“Principal Market” means any of the New York Stock Exchange (including NYSE American), any tier of the Nasdaq
Stock Market, or any tier of the OTC Markets, whichever is the principal market on which the Securities are listed.

 

f.
“Purchase Amount” means the Purchase Price, as such term is defined in the Securities Purchase Agreement.

 

g.
“Register”, “Registered” and “Registration” refer to a registration effected
by preparing and filing with the SEC one or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415
under the Securities Act or any successor rule providing for Note securities on a continuous basis (“Rule 415”), and
effectiveness of such Registration Statement(s).

 

h.
“Registrable Securities” means the shares of Common Stock issued or issuable (i) pursuant to the Securities Purchase
Agreement, including shares issued pursuant to any conversion of the Note, and (ii) any shares of capital stock issued or issuable with
respect to the Securities as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, which
have not been (x) included in a Registration Statement that has been declared effective by the SEC, (y) sold under circumstances meeting
all of the applicable conditions of Rule 144, promulgated under the Securities Act or (z) saleable without limitation as to time, manner
and volume pursuant to Rule 144(k) (or any similar provision then in force) under the Securities Act. In addition, the Registrable Securities
shall include the shares of Common Stock owned by the Holder and any shares of Common Stock issuable upon conversion or exercise of any
existing securities between the Holder and the Company.

 

i.
“Registration Statement” means a registration statement of the Company filed with the SEC under the Securities Act.

 

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

 

All
capitalized terms used but not defined in this Agreement shall have the meaning ascribed to them in the Securities Purchase Agreement;
provided however, that any references to Fixed Conversion Price shall have the meaning ascribed to them in the Note.

 

For
the purposes of determining dates for penalties or filing deadlines, as outlined in this Agreement, both Parties agree that the date
given by the SEC shall constitute the official date.

 

2.
Registration.

 

a.
Mandatory Registration. Pursuant to the terms and conditions herein, the Company shall prepare and file with the SEC a Registration
Statement or Registration Statements (as is necessary) covering the resale of all of the Registrable Securities, which Registration Statement(s)
shall state that, in accordance with Rule 415 promulgated under the Securities Act, such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon stock splits, stock dividends or similar transactions. The Company
shall initially register for resale all of the Registrable Securities, or an amount equal to the maximum amount allowed under Rule 415
(a)(1)(i) as interpreted by the SEC. In the event the Company cannot register sufficient shares to cover the Registerable Securities,
due to the remaining number of authorized shares of Common Stock being insufficient, the Company will use its commercially reasonable
efforts to register the maximum number of shares of Common Stock it can, based upon the remaining balance of authorized shares of Common
Stock and will use its commercially reasonable efforts to increase the number of its authorized shares of Common Stock as soon as reasonably
practicable.

 

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b.
The Company shall use its commercially reasonable efforts to have the Registration Statement filed with the SEC within ninety (90) days
following the Closing Date (the “Filing Deadline”). If the Registration Statement covering the Registrable Securities
required to be filed by the Company pursuant to Section 2(a) hereof is not filed by the Filing Deadline, then the Company shall
pay the Holder the sum of one percent (1%) of the Purchase Amount as liquidated damages, and not as a penalty. The liquidated damages
set forth in this Section 2(b) shall be paid, at the Holder’s option, in cash or shares of Common Stock priced at the Fixed
Conversion Price, or in portions thereof. Failure of the Company to make payment within five (5) business days of the Filing Deadline
shall be considered a breach of this Agreement.

 

Notwithstanding
the foregoing, the amounts payable by the Company pursuant to this Section 2 shall not be payable to the extent any delay in the
filing of the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Holder or is otherwise
attributable to the Holder.

 

The
Company acknowledges that its failure to have the Registration Statement filed by the Filing Deadline will cause the Holder to suffer
irreparable harm, and, that damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include
in this Agreement a provision for liquidated damages. The Parties acknowledge and agree that the liquidated damages provision set forth
in this Section 2(b) represents the Parties’ good faith effort to quantify such damages and, as such, agree that the form
and amount of such liquidated damages are reasonable and will not constitute a penalty. The payment of liquidated damages shall not relieve
the Company from its obligations to register the Registrable Securities and deliver the Registrable Securities and the Securities pursuant
to the terms of this Agreement and the Securities Purchase Agreement.

 

c.
The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective by the SEC within one
hundred twenty (120) calendar days after the Closing Date (the “Effective Deadline”). If the Registration Statement
covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof has not become effective
by the Effective Deadline, then the Company shall pay the Holder the sum of one percent (1%) of the Purchase Amount as liquidated damages,
and not as a penalty. The liquidated damages set forth in this Section 2(c) shall be paid, at the Holder’s option, in cash
or shares of Common Stock priced at the Fixed Conversion Price, or portion thereof. Failure of the Company to make payment within five
(5) business days of the date the Registration Statement is declared effective by the SEC shall be considered a breach of this Agreement.

 

If
the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof
has become effective, and, thereafter, the Holder’s right to sell is suspended, for any reason, then the Company shall pay the
Holder the sum of one percent (1%) of the Purchase Amount (the “Suspension Damages”). The Suspension Damages shall
be paid, at the Holder’s option, in cash or shares of Common Stock priced at the Fixed Conversion Price, or portion thereof. Failure
of the Company to make payment of the Suspension Damages within five (5) business days after they become payable shall be considered
a breach of this Agreement.

 

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Notwithstanding
the foregoing, the amounts payable by the Company pursuant to this Section 2(c) shall not be payable to the extent any delay in
the effectiveness of the Registration Statement or any suspension of the effectiveness occurs because of an act of, or a failure to act
or to act timely by the Holder or is otherwise attributable to the Holder.

 

Further,
if the Registration Statement prohibits, or otherwise limits, the ability of the Holder to sell any of the Registrable Securities at
the prevailing market price (each or any, a “Price Restriction”), the Company’s obligations under this Section 2(c)
shall not be met. For avoidance of doubt, the Registration Statement will not be considered effective for purposes of this Agreement
if there is a Price Restriction on the Registrable Securities, despite the Registration Statement being otherwise declared effective
by the SEC.

 

The
Company acknowledges that its failure to have the Registration Statement become effective by the Effective Deadline or to permit the
suspension of the effectiveness of the Registration Statement, will cause the Holder to suffer irreparable harm and, that damages will
be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement a provision for liquidated
damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section 2(c) represents the
Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such liquidated damages are
reasonable and will not constitute a penalty. The payment of liquidated damages shall not relieve the Company from its obligations to
register the Registrable Securities and deliver the Registrable Securities and the Securities pursuant to the terms of this Agreement
and the Securities Purchase Agreement.

 

d.
The Company agrees to only register such securities as are necessary to meet its obligations to the Holder hereunder including the Securities
and any other of the Company’s securities held by the Holder, and agrees not to register additional securities without the Holder’s
prior written consent to be agreed upon in writing by the Holder before the Filing Date. Furthermore, the Company agrees that it will
not file any other Registration Statement, including those on Form S-8 or Form S-4, for other securities, for a period of twelve (12)
months from the Closing Date, unless it has the prior written approval from the Holder. Failure to obtain prior written approval from
the Holder will cause the Holder to suffer damages that will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate
to include a provision for liquidated damages and the Company agrees to pay the Holder the sum of one percent (1%) of the Purchase Amount
as liquidated damages and not as a penalty for each thirty (30) calendar day period, pro rata, compounded daily, until the unauthorized
Registration Statement is withdrawn.

 

3.
Related Obligations.

 

At
such time as the Company is obligated to prepare and file a Registration Statement with the SEC pursuant to Section 2(a) hereof,
the Company will use its commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with
the intended method of disposition thereof and, with respect thereto, the Company shall have the following obligations:

 

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a.
The Company shall use its commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities
to keep such Registration Statement effective pursuant to Rule 415 under the Securities Act until the date on which the Holder shall
have sold all the Registrable Securities or the shares of Common Stock included therein otherwise cease to be Registrable Securities
(the “Registration Period”), which Registration Statement (including any amendments or supplements thereto and prospectuses
contained therein) shall, as of the date thereof, not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not
misleading.

 

b.
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424
under the Securities Act, as may be necessary to keep such Registration Statement effective during the Registration Period, and, during
such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by
such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the Holder as set forth in such Registration Statement. In the event the number of shares of Registrable
Securities available under a Registration Statement filed pursuant to this Agreement is at any time insufficient to cover all of the
Registrable Securities, the Company shall amend such Registration Statement, or file a new Registration Statement (on the short form
available therefor, if applicable), or both, so as to cover all of the Registrable Securities, in each case, as soon as practicable,
but in any event within thirty (30) calendar days after the necessity therefor arises (based on relevant factors on which the Company
reasonably elects to rely), assuming the Company has sufficient authorized shares at that time, and if it does not, within thirty (30)
calendar days after such shares are authorized. The Company shall use it commercially reasonable efforts to cause such amendment and/or
new Registration Statement to become effective as soon as practicable following the filing thereof.

 

c
The Company shall furnish to the Holder and its legal counsel without charge and upon request (i) promptly after the same is prepared
and filed with the SEC at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements
and schedules, all documents incorporated therein by reference and all exhibits, the prospectus included in such Registration Statement
(including each preliminary prospectus) and, with regards to such Registration Statement(s), any correspondence by or on behalf of the
Company to the SEC or the staff of the SEC and any correspondence from the SEC or the staff of the SEC to the Company or its representatives,
(ii) upon the effectiveness of any Registration Statement, a copy of the prospectus included in such Registration Statement and all amendments
and supplements thereto (or such other number of copies as the Holder may reasonably request) and (iii) such other documents, including
copies of any preliminary or final prospectus, as the Holder may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities. The Company filing the documents described in this paragraph through EDGAR shall constitute delivery.

 

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d.
[RESERVED]

 

e.
The Company shall immediately notify the Holder in writing of the happening of any event as a result of which the prospectus included
in a Registration Statement, as then in effect, would then contain an untrue statement of a material fact or omission to state a material
fact, which would otherwise be required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading; and, as a result, is required to be supplemented or as a result of which the Registration
Statement is required to be amended (“Registration Default”) and use all diligent efforts to promptly prepare any
necessary supplement to such prospectus or amendment to such Registration Statement and take any other necessary steps to cure the Registration
Default, (which, if such Registration Statement is on Form S-3, may consist of a document to be filed by the Company with the SEC pursuant
to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and to
be incorporated by reference in the prospectus) to correct such untrue statement or omission, and deliver one (1) copy of such supplement
or amendment to Holder (or such other number of copies as Holder may reasonably request; delivery via EDGAR shall constitute delivery).
Failure to cure the Registration Default within five (5) business days shall result in the Company paying liquidated damages of one percent
(1%) of the Purchase Amount for each thirty (30) calendar day period or portion thereof, beginning on the date of suspension. The Company
shall also promptly notify Holder in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall
be delivered to Holder by facsimile on the same day of such effectiveness and by overnight mail); (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or related information; (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate; (iv) in the event the Registration Statement
is no longer effective; or (v) the Registration Statement is stale for a period of more than five (5) trading days as a result of the
Company’s failure to timely file its financials with the SEC.

 

The
Company acknowledges that its failure to cure the Registration Default within five (5) business days will cause the Holder irreparable
harm, and that damages will be difficult to ascertain. Accordingly, the Parties agree that it is appropriate to include in this Agreement
a provision for liquidated damages. The Parties acknowledge and agree that the liquidated damages provision set forth in this Section
4(e) represents the Parties’ good faith effort to quantify such damages and, as such, agree that the form and amount of such
liquidated damages are reasonable and will not constitute a penalty.

 

It
is the intention of the Parties that interest payable under any of the terms of this Agreement shall not exceed the maximum amount permitted
under any applicable law. If a law, which applies to this Agreement which sets the maximum interest amount, is finally interpreted so
that the interest in connection with this Agreement exceeds the permitted limits, then: (1) any such interest shall be reduced by the
amount necessary to reduce the interest to the permitted limit; and (2) any sums already collected (if any) from the Company which exceed
the permitted limits will be refunded to the Company. The Holder may choose to make this refund by reducing the amount that the Company
owes under this Agreement or by making a direct payment to the Company. If a refund reduces the amount that the Company owes the Holder,
the reduction will be treated as a partial payment. In the event that any provision of this Agreement is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if
possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of
this Agreement will not in any way be affected or impaired thereby.

 

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f.
The Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and
to notify the Holder of the issuance of such order and the resolution thereof. The Company will immediately notify the Holder of a proceeding,
or threat of proceeding of which the Company becomes aware, the result of which could affect the effectiveness of the registration statement.

 

g.
The Company shall permit the Holder and its counsel, of the Holder’s choosing, to review and comment upon all Registration Statements,
amendments and supplements, at least seven (7) days prior to filing. The Company shall not file any Registration Statement with which
Holder or its counsel reasonably objects.

 

h.
The Company shall make available for inspection by (i) the Holder and (ii) one firm of attorneys and one firm of accountants or other
agents retained by the Holder at Holder’s expense (collectively, the “Inspectors”) all pertinent financial and
other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall
be reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information
which any Inspector may reasonably request; provided, however, that each Inspector shall hold in strict confidence and shall not make
any disclosure (except to the Holder) or use of any Record or other information which the Company determines in good faith to be confidential,
and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act, (b) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the
information in such Records has been made generally available to the public other than by disclosure in violation of this or any other
agreement of which the Inspector has knowledge. The Holder agrees that it shall, upon learning that disclosure of such Records is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the
Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed
confidential.

 

i.
The Company shall hold in confidence and not make any disclosure of information concerning the Holder unless (i) disclosure of such information
is necessary to comply with federal or state securities laws or in connection with fulfilling the obligations of the Company hereunder,
(ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii)
the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body
of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning
a Holder is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice
to the Holder and allow the Holder, at the Holder’s expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

 

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j.
If necessary, the Company shall use its commercially reasonable efforts to secure designation and quotation of all the Registrable Securities
covered by any Registration Statement on the Principal Market. If, despite the Company’s commercially reasonable efforts, the Company
is unsuccessful in satisfying this obligation, it shall use its commercially reasonable efforts to cause all the Registrable Securities
covered by any Registration Statement to be listed on each other national securities exchange and automated quotation system, if any,
on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities
is then permitted under the rules of such exchange or system. If, despite the Company’s commercially reasonable efforts, the Company
is unsuccessful in satisfying its obligation in this Section, it will use its commercially reasonable efforts to secure the inclusion
for quotation with Pink Sheets, LLC. The Company shall pay all fees and expenses in connection with satisfying its obligation under this
Section 3(j).

 

k.
The Company shall cooperate with the Holder to facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be
in such denominations or amounts, as the case may be, as the Holder may reasonably request and registered in such names of the Persons
who shall acquire such Registrable Securities from the Holder, as the Holder may request.

 

l.
The Company shall provide a transfer agent for all the Registrable Securities not later than the Effective Date of the first Registration
Statement filed pursuant hereto.

 

m.
If requested by the Holder, the Company shall (i) as soon as reasonably practical, incorporate in a prospectus supplement or post-effective
amendment such information as Holder reasonably determines should be included therein relating to the sale and distribution of Registrable
Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as notified of the matters
to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration
Statement if reasonably requested by Holder.

 

n.
The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the
disposition of such Registrable Securities.

 

o.
The Company shall make available to the Holder as soon as reasonably practical, but not later than ninety (90) calendar days after the
close of the period covered thereby, an earnings statement (in form complying with the provisions of Rule 158 under the Securities Act)
covering a 12-month period beginning not later than the first day of the Company’s fiscal quarter next following the effective
date of any Registration Statement. Filing via EDGAR shall constitute delivery.

 

p.
The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the SEC in
connection with any registration hereunder.

 

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q.
Within five (5) business days after the Registration Statement which includes Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities,
with copies to the Holder, confirmation that such Registration Statement has been declared effective by the SEC in the form attached
hereto as Exhibit A.

 

r.
After the SEC declares the Registration Statement cleared of all comments and the Company’s acceptance of the effectiveness of
the Registration Statement, the Company shall file a prospectus covering the resale of the Registrable Securities (the “Prospectus”)
within five (5) trading days.

 

s.
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Holder of the Registrable
Securities pursuant to a Registration Statement.

 

t.
In addition to the obligation to register the Registerable Securities under a Registration Statement hereunder, so long as any amounts
remain outstanding under the Note, Holder shall also have the right to obtain any unallocated shares under any outstanding effective
registration statement of the Company for any conversions under the Note. The Company shall first offer allocation of any unallocated
shares to Holder before allocating them to any other person. Further, any Registered Securities offered by the Company, shall first be
made to the Holder. Holder shall have five (5) business days to either accept the offer of Registered Securities, in whole or in part,
or to decline such offer. The Company shall be able to offer and sell any number of Registered Securities offered to, but not purchased
by, Holder after five (5) business days.

 

4.
Obligations Of The Holder.

 

a.
At least five (5) calendar days prior to the first anticipated filing date of a Registration Statement, the Company shall notify the
Holder in writing of the information the Company requires from the Holder. It shall be a condition precedent to the obligations of the
Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities that the Holder furnishes
to the Company that information regarding itself, the Registrable Securities and the intended method of disposition of the Registrable
Securities as shall reasonably be required to effect the registration of such Registrable Securities and the Holder shall execute such
documents in connection with such registration as the Company may reasonably request. The Holder covenants and agrees that, in connection
with any resale of Registrable Securities by it pursuant to a Registration Statement, it shall comply with the “Plan of Distribution”
section of the current prospectus relating to such Registration Statement.

 

b.
The Holder, by the Holder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
thereby in connection with the preparation and filing of any Registration Statement hereunder and in responding to SEC comments in connection
therewith.

 

c.
The Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(f) hereof or the first sentence of Section 3(e) hereof, the Holder will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until Holder’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 3(f) hereof or the first sentence of Section 3(e) hereof.

 

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5.
Expenses Of Registration.

 

All
expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Section 2 and Section 3 hereof, including, without limitation, all registration, listing and qualifications fees, printing
and accounting fees, and reasonable fees and disbursements of counsel for the Company shall be paid by, and are the sole obligation of,
the Company, other than as specifically set forth herein.

 

6.
Indemnification.

 

In
the event any Registrable Securities are included in a Registration Statement under this Agreement:

 

a.
To the fullest extent permitted by law, the Company agrees to indemnify, hold harmless and defend the Holder, the directors, officers,
partners, employees, counsel, agents, representatives of, and each Person, if any, who controls, Holder within the meaning of the Securities
Act or the Exchange Act (each, a “Holder Indemnified Party”), against any losses, claims, damages, liabilities, judgments,
fines, penalties, charges, costs, attorneys’ fees, amounts paid in settlement or expenses, joint or several (collectively, “Claims”),
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may
become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or
are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement or any post-effective
amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue
sky” Laws of any jurisdiction in which the Holder has requested in writing that the Company register or qualify the Registrable
Securities (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which the statements therein were made, not
misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state
therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other
Law, including, without limitation, any state securities Law, or any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to the Registration Statement, and the Company shall notify Purchaser promptly of the institution, threat
or assertion of any proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company
is aware (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to the restrictions
set forth in Section 6(d) hereof with respect to the number of legal counsel, the Company shall reimburse the Holder and each
such controlling person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim related to a Violation. Notwithstanding anything
to the contrary contained herein, the indemnification agreement contained in this Section 6(a) (i) shall not apply to a Claim arising
out of or based upon a Violation which is due to the inclusion in the Registration Statement of the information furnished to the Company
by any Holder Indemnified Party expressly for use in connection with the preparation of the Registration Statement or any such amendment
thereof or supplement thereto; (ii) shall not be available to the extent such Claim is based on (a) a failure of the Holder to deliver
or to cause to be delivered the prospectus made available by the Company or (b) the Holder Indemnified Party’s use of an incorrect
prospectus despite being promptly advised in advance by the Company in writing not to use such incorrect prospectus; (iii) any claims
based on the manner of sale of the Registrable Securities by the Holder or of the Holder’s failure to register as a dealer under
applicable securities Laws; (iv) any omission of the Holder to notify the Company of any material fact that should be stated in the Registration
Statement or prospectus relating to the Holder or the manner of sale; and (v) any amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Holder Indemnified Party and shall survive
the resale of the Registrable Securities by the Holder pursuant to the Registration Statement.

 

    	10

     

    

 

b.
Holder agrees to indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the
Company, the officers, directors, members, partners, agents and employees (and any other individuals or entities with a functionally
equivalent role of a person holding such titles, notwithstanding a lack of such title or any other title) of the Company, each individual
or entity who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, members, partners, agents and employees (and any other individuals or entities with a functionally equivalent role
of a person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling individual (each a
“Company Indemnified Party”) against any Claim or Indemnified Damages to which any of them may become subject insofar
as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,
that such Violation is incurred, arises out of or related to (1) any untrue or alleged untrue statement of a material fact contained
in a Registration Statement, any related prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any such prospectus or supplement thereto, in light of the circumstances under which they
were made) not misleading or (2) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state
securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, but
only to the extent that such untrue statements or omissions are based upon information regarding Holder furnished to the Company by Holder
for use therein, and the Holder will reimburse any legal or other expenses reasonably incurred by any Company Indemnified Party in connection
with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) shall
not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Holder,
which consent shall not be unreasonably withheld. Holder shall notify the Company promptly of the institution, threat or assertion of
any proceeding arising from or in connection with the transactions contemplated by this Agreement of which Holder is aware.

 

c.
Any indemnity hereunder shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder Indemnified
Party or Company Indemnified Party (each, an “Indemnified Party”), as applicable, and shall survive the resale of
the Registrable Securities by the Holder pursuant to the Registration Statement. Notwithstanding anything to the contrary contained herein,
the indemnification agreement contained in this Section 6 with respect to any preliminary prospectus shall not inure to the benefit of
any Indemnified Party if the untrue statement or omission of material fact contained in the preliminary prospectus were corrected on
a timely basis in the prospectus, as then amended or supplemented. This indemnification provision shall apply separately to each Holder
and liability hereunder shall not be joint and several.

 

d.
Promptly after receipt by an Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such Indemnified Party shall, if a Claim in respect thereof is to
be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Party
shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable
opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Party and any other party represented
by such counsel in such proceeding. The indemnifying party shall pay for only one separate legal counsel for the Indemnified Parties,
as applicable, and such counsel shall be selected by the Holder, if the Holder is entitled to indemnification hereunder, or the Company,
if the Company is entitled to indemnification hereunder, as applicable. The Indemnified Party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party which relates to such action or claim. The indemnifying party shall
keep the Indemnified Party fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided,
however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the consent of the Indemnified Party, consent to entry of any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such Claim. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights
of the Indemnified Party with respect to all third parties, firms or corporations relating to the matter for which indemnification has
been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action
shall not relieve such indemnifying party of any liability to the Indemnified Party under this Section 6, except to the extent
that the indemnifying party is actually prejudiced in its ability to defend such action.

 

    	11

     

    

 

e.
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

f.
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party against
the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

7.
Contribution.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 hereof to the fullest extent permitted
by law; provided, however, that: (i) no contribution shall be made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Section 6 hereof; (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8.
Reports Under The Exchange Act. 

 

With
a view to making available to the Holders the benefits of Rule 144 under the Securities Act or any similar rule or regulation of the
SEC that may at any time permit the Holders to sell securities of the Company to the public without registration (“Rule 144”)
the Company agrees to:

 

a.
make and keep public information available, as those terms are understood and defined in Rule 144;

 

b.
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements and the filing of such reports and other documents as are required by
the applicable provisions of Rule 144; and

 

c.
furnish to the Holder so long as the Holder owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Holders to sell such securities pursuant to Rule 144 without registration.

 

9.
No Assignment Of Registration Rights.

 

The
registration rights and obligations under this Agreement shall not be assignable.

 

    	12

     

    

 

10.
Amendment Of Registration Rights.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of both the Company and the Holder. Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon the Holder and the Company. No such amendment shall be effective to the extent that it applies
to less than all of the Holders of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent
to a waiver or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the Parties
to this Agreement.

 

11.
Miscellaneous.

 

a.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided a confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party); or (iii)
one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive
the same. The addresses for such communications are as set forth on the signature page to this Agreement. Each Party shall provide five
(5) business days prior notice to the other Party of any change in address, phone number or facsimile number.

 

b.
Failure of any Party to exercise any right or remedy under this Agreement or otherwise, or delay by a Party in exercising such right
or remedy, shall not operate as a waiver thereof.

 

c.
This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law.
The Parties submit to the jurisdiction of the state of California and federal courts in the county of San Diego, California, and agree
that any legal action or proceeding relating to this Agreement may be brought in those courts.

 

d.
This Agreement, the Note, and the Securities Purchase Agreement constitute the entire set of agreements among the Parties hereto with
respect to the subject matter hereof and thereof and supersede all prior agreements and understandings among the Parties hereto with
respect to the subject matter hereof and there. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein or in the Note, or the Securities Purchase Agreement.

 

e.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

f.
This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument. Execution and
delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a Party shall constitute a valid and binding
execution and delivery of this Agreement by such Party. Such facsimile copies shall constitute enforceable original documents.

 

    	13

     

    

 

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

 

h.
The language used in this Agreement will be deemed to be the language chosen by the Parties to express their mutual intent and no rules
of strict construction will be applied against any Party.

 

i.
The Company hereby represent and warrants to the Holder that: (i) it has voluntarily entered into this Agreement of its own freewill,
(ii) it is not entering into this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to the Company,
and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company with respect to
this Agreement, and represent the Company in connection with its entering into this Agreement.

 

j.
Notwithstanding anything in this Agreement to the contrary, the Parties hereto hereby acknowledge and agree to the following: (i) the
Holder makes no representations or covenants that it will not engage in trading in the securities of the Company; (ii) the Company has
not and shall not provide material non-public information to the Holder unless prior thereto the Holder shall have executed a written
agreement regarding the confidentiality and use of such information; and (iii) the Company understands and confirms that the Holder will
be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Holder effects any transactions in the securities
of the Company.

 

12.
Waiver.

 

Any
Party’s delay or failure at any time or times hereafter to require strict performance by other Party of any undertakings, agreements
or covenants shall not waive, affect, or diminish any right of the first Party under this Agreement to demand strict compliance and performance
herewith. Any waiver by a Party of any breach under this Agreement (an “Event of Default”) shall not waive or affect
any other Event of Default, whether such Event of Default is prior or subsequent thereto and whether of the same or a different type.
None of the undertakings, agreements and covenants of a Party contained in this Agreement, and no Event of Default by a Party, shall
be deemed to have been waived by the other Party other than in a writing signed by the waiving Party. This Agreement may not be amended,
changed or modified other than by an instrument in writing specifying such amendment and signed by both Parties.

 

13.
Payment Of Liquidated Damages.

 

Any
liquidated damages or other fees incurred herein by the Company for failure to act in a timely manner shall be charged to the Purchase
Amount, unless specifically noted otherwise. The Holder reserves the rights to take payment of such amounts in cash or in Securities
priced at the Fixed Conversion Price.

 

[Signature
Page Follows]

 

    	14

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Registration Rights Agreement to be duly executed on the day and year first
above written.

 

	 	THE
    COMPANY:
	 	 
	 	SIMPLICITY
    ESPORTS AND GAMING COMPANY 
	 	 	 
	 	By:	/s/
    Roman Franklin
	 	Name:	Roman
    Franklin
	 	Title:	 Chief Executive Officer
	 	Address:	7000 West Palmetto Park Road, Suite 505
	 	 	Boca
Raton, Florida 33433
	 	 	 

 

	 	HOLDER:
	 	 	 
	 	LGH
    Investments, LLC
	 	(entity
    name, if applicable)
	 	 	 
	 	By:	/s/
    Luke Hoppel
	 	Name:	Luke
    Hoppel, Manager 
	 	Address:
    	 
	 	 	

  

    	15

     

    

 

EXHIBIT
A

 

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

 

Date:
__________

 

[TRANSFER
AGENT]

 

Re:
Simplicity Esports and Gaming Company

 

Ladies
and Gentlemen:

 

We
are counsel to Simplicity Esports and Gaming Company, a Delaware corporation (the “Company”), and have represented
the Company in connection with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into
by and among the Company and LGH Investments, LLC (the “Holder”), pursuant to which the Company has agreed to issue to the
Holder, a Convertible Promissory Note (the “Securities”) on the terms and conditions set forth in the Securities Purchase
Agreement. Pursuant to the Securities Purchase Agreement, the Company also has entered into a Registration Rights Agreement with the
Holder (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register
the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of the Common Stock of the Company
issued or issuable under the Securities Purchase Agreement, or the Note under the Securities Act of 1933, as amended (the “Securities
Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ___, 20__,
the Company filed a Registration Statement on Form ________ (File No. 333-________) (the “Registration Statement”)
with the United States Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which
names the Holder as a selling shareholder thereunder.

 

In
connection with the foregoing, we advise you that the Registration Statement has become effective under the Securities Act at [enter
the time of effectiveness] on [enter the date of effectiveness] and to the best of our knowledge, after telephonic inquiry of a member
of the SEC’s staff, no stop order suspending its effectiveness has been issued and no proceedings for that purpose are pending
before, or threatened by, the SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration
Statement.

 

	 	Very
    truly yours,
	 	 
	 	[Company
    Counsel]
	 	 	 
	 	By:	         

 

    	16Exhibit
10.1

 

DATED

 

01/09/2021

 

Share
purchase agreement

 

between

 

RAHIM
SHAH

 

and

 

FTFT
UK LIMITED

 

     

     

    

 

CONTENTS

 

 

 

CLAUSE

 

	1.	Interpretation	3
	2.	Conditions
    precedent	8
	3.	Sale
    and purchase	10
	4.	Purchase
    Price	10
	5.	Completion	10
	6.	Warranties	12
	7.	Limitations
    on claims	15
	8.	Property	16
	9.	Tax
    Covenant	16
	10.	Indemnities	16
	11.	Restrictions
    on the Seller	17
	12.	Confidentiality
    and announcements	19
	13.	Further
    assurance	21
	14.	Assignment	21
	15.	No
    agency	22
	16.	Entire
    agreement	22
	17.	Variation
    and waiver	22
	18.	Costs	23
	19.	Notices	23
	20.	Interest	25
	21.	Severance	25
	22.	Agreement
    survives Completion	25
	23.	Third
    party rights	25
	24.	Counterparts	26
	25.	Rights
    and remedies	26
	26.	Inadequacy
    of damages	26
	27.	Governing
    law and jurisdiction	26

 

    2

     

    

 

This
agreement is dated

 

Parties

 

		(1)	RAHIM
                                            SHAH of Unit 421, Jhumat House 160 London Road, Barking, Essex IG11 8BB England (Seller)

 

		(2)	FTFT
                                            UK LIMITED incorporated and registered in England and Wales with company number 13543436
                                            whose registered office is at Salisbury House Unit 562, 31 London Wall, London, United Kingdom,
                                            EC2M 5PS (Buyer)

 

BACKGROUND

 

		(A)	The
                                            Company is a private company limited by shares incorporated in England and Wales.

 

		(B)	The
                                            Company has an issued share capital of £121,800 divided into 121,800 shares of £1.00
                                            each.

 

		(C)	Further
                                            particulars of the Company at the date of this agreement are set out in Schedule 1.

 

		(D)	The
                                            Seller is the owner, or is otherwise able to procure the transfer, of the legal and beneficial
                                            title to the Sale Shares.

 

		(E)	The
                                            Seller has agreed to sell and the Buyer has agreed to buy the Sale Shares subject to the
                                            terms and conditions of this agreement.

 

Agreed
terms

 

		1.	Interpretation

 

		1.1	The
                                            definitions and rules of interpretation in this clause apply in this agreement.

 

			Accounts: the
                                                                                                                                            company accounts of the Company for the accounting period ended on the Accounts Date, including the statement of financial position
                                                                                                                                            as at the Accounts Date, and the income statement and statement of other comprehensive income, the statement of cash flows and
                                                                                                                                            statement of changes in equity for the accounting period ended on the Accounts Date, and the related notes to the accounts as
                                                                                                                                            required by law and applicable accounting standards, copies of which are included in the Disclosure Bundle.

 

			Accounts Date:
                                                                                                                                            28.02.2021.

 

			Business: the
                                                                                                                                            business carried on by the Company, namely operation of an authorised payment institution, or any part of it.

 

    3

     

    

 

			Business Day:
                                                                                                                                            a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

 

Buyer’s
Solicitors: Neil G Budd Limited trading as Budd Legal of Salisbury House, 31 London Wall, London EC2M 5PS.

 

CA
2006: the Companies Act 2006.

 

Claim:
a claim for breach of any of the Warranties.

 

Collateral
Contract: a contract made on the date of this agreement between the parties relating to payment of the Purchase Price.

 

 Company: Khyber Money Exchange Ltd, a company incorporated and registered in England and Wales with company number 06832517 whose registered office is at Unit 421, 160 London Road, Barking, England, IG11 8BB, further details of which are set out in Schedule 1.

 

 Completion: completion of the sale and purchase of the Sale Shares in accordance with this agreement, by the payment of agreed consideration being Euros €685,000.

 

 Completion Date: has the meaning given in clause 5.2.

 

 Conditions: the conditions to Completion, being the matters set out in Part 1 of Schedule 2.

 

 Connected: has, in relation to a person, the meaning given in section 1122 of the CTA 2010.

 

 Control: has the meaning given in section 1124 of the CTA 2010, and the expression change of Control shall be construed accordingly.

 

 CTA 2009: the Corporation Tax Act 2009.

 

 CTA 2010: the Corporation Tax Act 2010.

 

 Data Protection Laws: has the meaning given in paragraph 25.1 of Part 1 of Schedule 4.

 

 Director: each person who is a director or shadow director of the Company, as set out in Schedule 1.

 

 Disclosed: fairly, fully, clearly and accurately disclosed (with sufficient details to identify the nature and scope of the matter disclosed) in or under the Disclosure Letter.

 

 Disclosure Bundle: the bundle of documents annexed to the Disclosure Letter.

 

 Disclosure Letter: the letter from the Seller to the Buyer with the same date as this agreement and described as the Disclosure Letter, together with the Disclosure Bundle.

 

 Employee: has the meaning given in paragraph 26.1 of Part 1 of Schedule 4.

 

Encumbrance:
any interest or equity of any person (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge,
lien, assignment, hypothecation, security interest, title retention or any other security agreement or arrangement.

 

    4

     

    

 

 “Euro” and “€”: the currency adopted by those nations participating in the third stage of the economic and monetary union provisions of the Treaty on European Union, signed at Maastricht on February 7, 1992.

 

FRS
102: Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland as issued by
the Financial Reporting Council of the UK and in force for the accounting period ended on the Accounts Date.

 

“FXSoft
Contract”: a contract dated 27 December 2015 made between the Company and FX Soft Limited (a company located at Peshawar, Pakistan).

 

 “GBP” and “£”: means the lawful currency of the United Kingdom

 

 Group: in relation to a company, that company, any subsidiary undertaking or any parent undertaking from time to time of that company, and any subsidiary undertaking from time to time of a parent undertaking of that company. Each company in a Group is a member of the Group.

 

 HMRC: HM Revenue & Customs.

 

 holding company: has the meaning given in clause 1.11.

 

 IHTA 1984: the Inheritance Tax Act 1984.

 

 Indemnity Claim: a claim for breach of any of the indemnities in clause 10.

 

 Intellectual Property Rights: has the meaning given in paragraph 23.1 of Part 1 of Schedule 4.

 

 Interim Period: the period from (and including) the date of this agreement up to (and including) the Completion Date or, if earlier, the date of termination of this agreement in accordance with its terms.

 

 ITEPA 2003: the Income Tax (Earnings and Pensions) Act 2003.

 

 Longstop Date: the date which is six months after the date of this agreement or such other date as may be agreed by the Buyer and the Seller in writing.

 

 parent undertaking: a parent undertaking as defined in section 1162 of the CA 2006.

 

 Previous Accounts: the accounts equivalent to the Accounts in respect of the accounting period immediately preceding the accounting period ended on the Accounts Date.

 

 Previously-owned Land and Buildings: has the meaning given in paragraph 28.1 of Part 1 of Schedule 4.

 

 Properties: has the meaning given in paragraph 28.1 of Part 1 of Schedule 4.

 

 Purchase Price: has the meaning given in clause 4.1.

 

    5

     

    

 

 Representative Body: has the meaning given in paragraph 26.1 of Part 1 of Schedule 4.

 

 Sale Shares: the 121,800 ordinary shares of £1 each in the Company, in respect of which 21,800 are issued and fully paid and 100,000 are issued and unpaid, and which comprise the whole of the issued share capital of the Company.

 

Seller’s
Solicitors: Zoi Bilderberg Solicitors of Olympic House, 28-42 St Clements Rd, Ilford, Essex, IG1 1BA.

 

 subsidiary: has the meaning given in clause 1.11.

 

 subsidiary undertaking: a subsidiary undertaking as defined in section 1162 of the CA 2006.

 

 Tax: has the meaning given in paragraph 1.1 of Schedule 5.

 

 Tax Authority: has the meaning given in paragraph 1.1 of Schedule 5.

 

 Tax Covenant: the tax covenant set out in Schedule 5.

 

 Tax Statute: has the meaning given in paragraph 1.1 of Schedule 5.

 

 Tax Warranties: the Warranties set out in Part 2 of Schedule 4.

 

 TCGA 1992: the Taxation of Chargeable Gains Act 1992.

 

 TIOPA 2010: the Taxation (International and Other Provisions) Act 2010.

 

 TMA 1970: the Taxes Management Act 1970.

 

 Transaction: the transaction contemplated by this agreement or any part of that transaction.

 

 Transaction Documents: this agreement, the Disclosure Letter and any other document to be entered into pursuant to this agreement in connection with the Transaction.

 

 VATA 1994: the Value Added Tax Act 1994.

 

 Warranties: the warranties and representations given by the Seller pursuant to clause 6 and set out in Schedule 4.

 

 Worker: has the meaning given in paragraph 26.1 of Part 1 of Schedule 4.

 

		1.2	Clause,
                                            Schedule and paragraph headings shall not affect the interpretation of this agreement.

 

		1.3	References
                                            to clauses and Schedules are to the clauses of and Schedules to this agreement and references
                                            to paragraphs are to paragraphs of the relevant Schedule.

 

		1.4	The
                                            Schedules form part of this agreement and shall have effect as if set out in full in the
                                            body of this agreement. Any reference to this agreement includes the Schedules.

 

    6

     

    

 

		1.5	A
                                            reference to this agreement or any other agreement or document referred to in this agreement,
                                            is a reference to this agreement or such other agreement or document as varied or novated
                                            (in each case, other than in breach of the provisions of this agreement) from time to time.

 

		1.6	Unless
                                            the context otherwise requires, words in the singular shall include the plural and the plural
                                            shall include the singular.

 

		1.7	Unless
                                            the context otherwise requires, a reference to one gender shall include a reference to the
                                            other genders.

 

		1.8	A
                                            person includes a natural person, corporate or unincorporated body (whether or not
                                            having separate legal personality).

 

		1.9	This
                                            agreement shall be binding on, and enure to the benefit of, the parties to this agreement
                                            and their respective successors and permitted assigns, and references to a party shall
                                            include that party’s successors and permitted assigns.

 

		1.10	A
                                            reference to a company shall include any company, corporation or other body corporate,
                                            wherever and however incorporated or established.

 

		1.11	A
                                            reference to a holding company or a subsidiary means a holding company or a
                                            subsidiary (as the case may be) as defined in section 1159 of the CA 2006 and for the purposes
                                            only of the membership requirement contained in sections 1159(1)(b) and (c), a company shall
                                            be treated as a member of another company even if its shares in that other company are registered
                                            in the name of:

 

		(a)	another
person (or its nominee), by way of security or in connection with the taking of security; or

 

		(b)	its
nominee.

 

		1.12	Unless
                                            expressly provided otherwise in this agreement, a reference to writing or written
                                            includes fax and email.

 

		1.13	Any
                                            words following the terms including, include, in particular, for example or any similar
                                            expression shall be construed as illustrative and shall not limit the sense of the words,
                                            description, definition, phrase or term preceding those terms.

 

		1.14	References
                                            to a document in agreed form are to that document in the form agreed by the parties
                                            and initialled by them or on their behalf for identification.

 

    7

     

    

 

		1.15	Unless
                                            the context requires otherwise, a reference to any legislation or legislative provision includes:

 

		(a)	such
legislation or legislative provision as amended, extended or re-enacted from time to time;

 

		(b)	all
subordinate legislation made from time to time under that legislation or legislative provision.

 

		1.16	Any
                                            reference to an English legal term for any action, remedy, method of judicial proceeding,
                                            legal document, legal status, court, official or any legal concept or thing shall, in respect
                                            of any jurisdiction other than England, be deemed to include a reference to that which most
                                            nearly approximates to the English legal term in that jurisdiction.

 

		1.17	Any
                                            obligation on a party not to do something includes an obligation not to allow that thing
                                            to be done.

 

		1.18	Any
                                            amount expressed to be in Euros shall, to the extent that it requires, in whole or in part,
                                            to be expressed in any other currency in order to give full effect to this agreement, be
                                            deemed for that purpose to have been converted into the relevant currency immediately before
                                            the close of business on the date of this agreement (or, if that is not a Business Day, the
                                            Business Day immediately following it). Subject to any applicable legal requirements governing
                                            conversions into that currency, the rate of exchange shall be Barclays Bank plc’s spot
                                            rate for the purchase of that currency with the relevant currency at the time of the deemed
                                            conversion.

 

		2.	Conditions
precedent

 

		2.1	Completion
                                            is subject to and conditional upon the Conditions being satisfied by or before 6.00pm UK
                                            time on the Longstop Date.

 

		2.2	This
                                            agreement shall automatically terminate and cease to have effect (except as provided in clause
                                            2.3) at 6.00pm UK time on the Longstop Date if any of the Conditions are not satisfied, by
                                            or before that date.

 

		2.3	If
                                            this agreement terminates in accordance with clause 2.2, or is terminated pursuant to clause
                                            5.4(c) or clause 6.6(a), it will immediately cease to have any further force and effect except
                                            for:

 

		(a)	any
provision of this agreement that expressly or by implication is intended to come into or continue in force on or after termination (including
clause 1 (Interpretation), clause 2.2 and this clause 2.3 (Conditions precedent), clause 7 (Limitations on claims), clause 12 (Confidentiality
and announcements) and clause 16 (Entire agreement) to clause 27 (Governing law and jurisdiction) (inclusive)), each of which shall remain
in full force and effect; and

 

		(b)	any
rights, remedies, obligations or liabilities of the parties that have accrued before termination.

 

    8

     

    

 

		2.4	The
                                            Seller and the Buyer shall use their best endeavours to procure (so far as it lies within
                                            their respective powers so to do) that the Conditions are satisfied as soon as practicable.

 

		2.5	The
                                            Buyer and the Seller shall co-operate fully in all actions necessary to procure the satisfaction
                                            of the Conditions including (but not limited to) the provision by the parties of all information
                                            reasonably necessary to make any notification or filing that the Buyer deems to be necessary
                                            or as required by any relevant authority, keeping the other party informed of the progress
                                            of any notification or filing and providing such other assistance as may reasonably be required.

 

		2.6	The
                                            Seller shall promptly notify the Buyer and the Buyer shall promptly notify the Seller in
                                            writing if he or it (as the case may be) becomes aware of any fact, event, matter or circumstance
                                            that:

 

		(a)	has
prevented or might reasonably be expected to prevent any of the Conditions from being satisfied by or before the Longstop Date; or

 

		(b)	has
caused or might reasonably be expected to cause the Condition referred to in Schedule 2 Part 1 paragraph 1 to cease to be satisfied at
any time during the Interim Period

 

		2.7	At
                                            all times during the Interim Period, the Seller shall:

 

		(a)	comply
with the undertakings and obligations set out in Part 2 of Schedule 2; and

 

		(b)	promptly
notify the Buyer in writing of any event, matter or circumstance which constitutes or may reasonably be expected to constitute a breach
of any of the undertakings or obligations set out in Part 2 of Schedule 2, including sufficient detail to enable the Buyer to make an
informed assessment of the nature, scope and impact of the notified breach or anticipated breach.

 

		2.8	The
obligation of the Seller to complete the sale of the Shares under this Agreement is subject to the satisfaction of the following condition
precedent by the Buyer, on or before the Completion Date, each of which is acknowledged to be for the exclusive benefit of the Seller
and may be waived by the Seller entirely or in part: The Buyer will provide to the Seller a certificate from an officer of the Buyer
confirming to the best of their knowledge, information and belief (after due inquiry), the truth and correctness in all aspects of those
warranties given by the Buyer in this Agreement.

 

    9

     

    

 

		3.	Sale
and purchase

 

		3.1	On
the terms of this agreement and subject to the Conditions, at Completion the Seller shall sell and the Buyer shall buy the Sale Shares
with full title guarantee and free from all Encumbrances, together with all rights that attach (or may in the future attach) to the Sale
Shares including, in particular, the right to receive all dividends and distributions declared, made or paid on or after the Completion
Date.

 

		3.2	The
                                            Buyer is not obliged to complete the purchase of any of the Sale Shares under clause 3.1
                                            unless the purchase of all of such Sale Shares is completed simultaneously.

 

		4.	Purchase
Price

 

		4.1	The
                                            total consideration for the sale of the Sale Shares is the sum of Euros €685,000 (Purchase
                                            Price).

 

		4.2	The
                                            Purchase Price shall be deemed to be reduced by the amount of any payment made to the Buyer
                                            for each and any:

 

		(a)	Claim;
or

 

		(b)	Indemnity
Claim; or

 

		(c)	claim
under the Tax Covenant.

 

		5.	Completion

 

		5.1	Unless
                                            this agreement has been terminated in accordance with its terms, Completion shall take place
                                            on the Completion Date at such place as is agreed by the parties.

 

		5.2	The
                                            Completion Date shall be 60 days after the date of this agreement, unless:

 

		(a)	the
Conditions are not satisfied at that date, in which event the Completion Date shall be:

 

		(i)	the
                                            Business Day following the date on which all of the Conditions are satisfied or waived (provided
                                            this occurs on or before the Longstop Date); or

 

		(ii)	any
                                            other date agreed by the Seller and the Buyer in writing; or

 

		(b)	Completion
is deferred in accordance with clause 5.4, in which event the Completion Date shall be the date to which Completion is so deferred.

 

		5.3	At
                                            Completion:

 

		(a)	the
Seller shall:

 

		(i)	deliver
                                            or cause to be delivered to the Buyer the items listed in paragraph 1 of Schedule 3;

 

    10

     

    

 

		(ii)	procure
                                            that a board meeting of the Company is held at which the matters set out in paragraph 2 of
                                            Schedule 3 are carried out; and

 

		(iii)	deliver
                                            any other documents referred to in this agreement as being required to be delivered by the
                                            Seller at Completion; and

 

		(b)	the
Buyer shall (subject to the Seller complying with clause 5.3(a)) pay the Purchase Price in accordance with the Collateral Contract and
deliver to the Seller any Transaction Documents to be delivered by the Buyer at Completion.

 

		5.4	If
                                            the Seller does not comply with its obligations in clause 5.3 in any material respect, the
                                            Buyer may (at its sole discretion and without prejudice to any other rights or remedies it
                                            has, including the right to claim damages for breach of this agreement):

 

		(a)	proceed
to Completion;

 

		(b)	defer
Completion to a date no more than 28 days after the date on which Completion would otherwise have taken place; or

 

		(c)	terminate
this agreement by notice in writing to the Seller (in which case clause 2.3 shall apply).

 

		5.5	The
                                            Buyer may defer Completion under clause 5.4(b) only once, but otherwise this clause 5 applies
                                            to a Completion so deferred as it applies where Completion has not been deferred.

 

		5.6	As
                                            soon as possible after Completion, the Seller shall send to the Buyer (at an address in England
                                            specified by the Buyer) all records, correspondence, documents, files, memoranda and other
                                            papers relating to the Company which are not kept at any of the Property and which are not
                                            required to be delivered at Completion.

 

		5.7	The
Parties agree that it is their mutual intention that on Completion the Company shall have as many zero book value accounts as possible,
having regard to the requirement that the Business shall be conducted during the Interim Period as stated in Part 2 of Schedule 2. The
Seller shall be entitled to remove surplus funds from its bank accounts provided that such removal does not affect the operational efficiency
of the Business and, in particular, ensuring that the Company’s bank accounts remain fully functional. The Buyer shall carry out
an audit of the Company’s books and records following Completion and shall pay to the Seller, within seven (7) Business Days after
Completion, any sums above zero held in the Company’s bank accounts.

 

		5.8	On
                                            the Completion Date, the Buyer shall, in addition to the Purchase Price which shall be paid
                                            in accordance with the Collateral Contract, deposit £400,000 with the Buyer’s
                                            Solicitors. The Buyer shall procure that the said £400,000 will be held by the Buyer’s
                                            Solicitors for seven (7) Business Days whilst the Buyer carry out the audit mentioned in
                                            clause 5.7. Following completion of the audit:

 

		(a)	if
the amount held in such accounts (the “Cash Flow Amount”) is calculated to be exactly £400,000, the Buyer shall
procure that the Buyer’s Solicitors, in settlement of the Cash Flow Amount, will pay the same amount to the Seller’s Solicitors;

 

    11

     

    

 

		(b)	if
the account balance calculations show the Cash Flow Amount to be less than £400,000, the Buyer shall procure that the Buyer’s
Solicitors will make the appropriate deduction and pay to the Seller’s Solicitors the Cash Flow Amount; and

 

		(c)	if
the account balance calculations show the Cash Flow Amount to be an amount more than £400,000, the Buyer will pay the additional
amount to the Buyer’s Solicitors and procure that the Buyer’s Solicitors will pay to the Seller’s Solicitors the full
Cash Flow Amount.

 

		6.	Warranties

 

		6.1	The
                                            Seller acknowledges that the Buyer is entering into this agreement on the basis of, and in
                                            reliance on, the Warranties. The warranties given in this Agreement are the only warranties
                                            given by the Seller. No other representation or warranty, either expressed or implied, has
                                            been given by the Seller to the Buyer.

 

		6.2	The
                                            Seller warrants and represents to the Buyer that except as Disclosed, each Warranty is true,
                                            accurate and not misleading as at the date of this agreement.

 

		6.3	The
                                            Seller further warrants and represents to the Buyer that each of the Warranties will be true,
                                            accurate and not misleading throughout the Interim Period. For this purpose, each of the
                                            Warranties shall be deemed to be repeated on each day of the Interim Period by reference
                                            to the facts and circumstances then subsisting. Any reference made to the date of this agreement
                                            (whether express or implied) in relation to any Warranty shall be construed, in connection
                                            with the repetition of the Warranties, as a reference to the date of such repetition.

 

		6.4	The
                                            Seller shall not (and shall procure that the Company shall not) do anything during the Interim
                                            Period that would be inconsistent with any term of this agreement including any of the Warranties,
                                            or cause any Warranty to be untrue, inaccurate or misleading.

 

		6.5	If
                                            at any time during the Interim Period the Seller becomes aware of a fact or circumstance
                                            which constitutes (or which is reasonably expected to constitute) a breach of Warranty, or
                                            which would cause (or is reasonably expected to cause) a Warranty to be untrue, inaccurate
                                            or misleading, he shall promptly:

 

		(a)	notify
the Buyer in writing of the relevant fact or circumstance in sufficient detail to enable the Buyer to make an accurate assessment of
the situation; and

 

		(b)	if
requested by the Buyer, use his best endeavours to remedy or prevent (as the case may be) the notified breach or anticipated breach.

 

    12

     

    

 

		6.6	If
                                            at any time during the Interim Period it becomes apparent that a Warranty has been breached,
                                            is untrue, inaccurate or misleading, or that the Seller has breached any other term of this
                                            agreement (including any of the Seller’s obligations and undertakings in Part 2 of
                                            Schedule 2) the Buyer may (at its sole discretion and without prejudice to any other rights
                                            or remedies it has, including the right to claim damages for breach of this agreement):

 

		(a)	terminate
this agreement by notice in writing to the Seller (in which case clause 2.3 shall apply); or

 

		(b)	proceed
to Completion.

 

		6.7	Without
                                            prejudice to the Buyer’s right to claim on any other basis, or to take advantage of
                                            any other remedies available to it, if any Warranty is proven to be untrue, inaccurate or
                                            misleading, the Seller shall pay to the Buyer on demand:

 

		(a)	the
amount necessary to put the Company into the position it would have been in if the Warranty had not been untrue, inaccurate or misleading;

 

		(b)	all
reasonable costs and expenses (including damages, legal and other professional fees and costs, penalties, expenses and consequential
losses whether arising directly or indirectly) incurred by the Buyer or the Company as a result of the Warranty being untrue, inaccurate
or misleading (including a reasonable amount in respect of management time); and

 

		(c)	if
any sum payable under clause 6.7(a) or clause 6.7(b) is subject to Tax in the hands of the Buyer, the additional amount required to ensure
that the net amount received by the Buyer is the amount that the Buyer would have received if the payment was not subject to Tax.

 

		6.8	Warranties
                                            qualified by the expression so far as the Seller is aware or any similar expression
                                            are deemed to be given to the best of the knowledge, information and belief of the Seller
                                            after due and careful enquiries were made of the professional advisers to the Company including
                                            (but not limited to) their legal advisers, accountants and auditors.

 

		6.9	Each
                                            of the Warranties is separate and, unless otherwise specifically provided, is not limited
                                            by reference to any other Warranty or any other provision in this agreement.

 

		6.10	Except
                                            for the matters Disclosed, no information of which the Buyer (or any of its agents or advisers)
                                            has knowledge (in each case whether actual, constructive or imputed), or which could have
                                            been discovered (whether by investigation made by the Buyer or on its behalf), shall prejudice
                                            or prevent any Claim or reduce the amount recoverable under any Claim.

 

    13

     

    

 

		6.11	The
                                            Seller agrees that the supply of any information by or on behalf of the Company, or any of
                                            its employees, directors, agents or officers (Officers) to the Seller or its advisers
                                            in connection with the Warranties, the Disclosure Letter or otherwise shall not constitute
                                            a warranty, representation or guarantee as to the accuracy of such information in favour
                                            of the Seller. The Seller unconditionally and irrevocably waives all and any rights and claims
                                            that he may have against the Company in connection with the preparation of the Disclosure
                                            Letter, or agreeing the terms of this agreement, and further undertakes to the Buyer and
                                            the Company not to make any such claims.

 

		6.12	For
                                            the avoidance of doubt, the rights and remedies of the Buyer in respect of any Claim or claim
                                            under the Tax Covenant shall not be affected by Completion, or any termination of (or the
                                            Buyer’s failure to terminate) this agreement.

 

		6.13	The
Buyer warrants to the Seller the following:

 

		(a)	The
                                            Buyer has full legal authority to enter into and carry out its obligations under this Agreement.

 

		(b)	The
                                            Buyer has all necessary corporate power, authority and capacity to enter into this Agreement
                                            and to carry out its obligations under this Agreement. The execution and delivery of this
                                            Agreement, and this transaction has been duly authorised by all necessary corporate action
                                            on the part of the Buyer.

 

		(c)	The
                                            Buyer has funds available to pay the full Purchase Price and any expenses accumulated by
                                            the Buyer in connection with this Agreement and the Buyer has not incurred any obligation,
                                            commitment, restriction, or liability of any kind, absolute or contingent, present or future,
                                            which would adversely affect its ability to perform its obligations under this Agreement.

 

		(d)	This
                                            Agreement has been duly executed by the Buyer and constitutes a legal and binding obligation
                                            of the Buyer, enforceable in accordance with its terms, except as enforcement may be limited
                                            by bankruptcy and insolvency, by other laws affecting the rights of creditors generally,
                                            and by equitable remedies granted by a court of competent jurisdiction.

 

		6.14	The
warranties given in this Agreement are the only warranties given by the Buyer. The Buyer has given no other warranty, either expressed
or implied, to the Seller.

 

		6.15	The
Buyer warrants to the Seller that each of the warranties made by it is accurate and not misleading at the date of Completion. The Buyer
acknowledges that the Seller is entering into this Agreement in reliance on each warranty.

 

		6.16	The
Buyer’s warranties will survive the Completion Date of this Agreement.

 

    14

     

    

 

		6.17	The
Transfer of Undertakings (Protection of Employment) (“TUPE” Regulations) may apply to this Agreement if the Buyer
will be restructuring the business after the Completion Date. The Buyer will bear any risk associated with TUPE liability relating to
activities carried out after the Completion Date and the Buyer warrants that it will comply with all TUPE requirements and that the Buyer
will indemnify the Seller from any TUPE liabilities that may arise in relation to activities carried out after the Completion Date.

 

		6.18	The
Buyer will indemnify the Seller against any claim originating or relating to the employment of any of the employees for the period of
employment starting the day after the Completion Date including claims related to any failure on the part of the Buyer to comply with
the duties and obligations of the TUPE Regulations.

 

		6.19	The
Buyer will be solely responsible for the following costs incurred or owed after the Completion Date: any employee remuneration (including
all salaries, benefits, bonuses, share bonuses and share options), statutory and regulatory contributions or other remuneration owed
to employees in respect of any period after the Completion Date.

 

		6.20	The
Buyer agrees that the Seller shall be entitled to retain the trading name Remit Masters and the domain name remitmasters.com.

 

		7.	Limitations
on claims

 

		7.1	Save
                                            as provided in clause 7.6, this clause 7 limits the liability of the Seller in relation to
                                            any Claim and (where specifically provided) any claim under the Tax Covenant.

 

		7.2	The
                                            aggregate liability of the Seller for all Claims shall not exceed an amount equal to the
                                            Purchase Price.

 

		7.3	The
                                            Seller shall not be liable for a Claim unless:

 

		(a)	the
Seller’s liability in respect of such Claim (together with any connected Claims) exceeds £5,000; and

 

		(b)	the
amount of the Seller’s liability in respect of such Claim, either individually or when aggregated with the Seller’s liability
for all other Claims (other than those excluded under clause 7.3(a)) exceeds £5,000, in which case the Seller shall be liable for
the whole amount of the Claim and not just the amount above the threshold specified in this clause 7.3(b).

 

For
the purposes of this clause 7.3, a Claim is connected with another Claim if the Claims arise from the same facts, events or circumstances.

 

    15

     

    

 

		7.4	The
                                            Seller shall not be liable for a Claim unless notice in writing summarising the nature of
                                            the Claim (in so far as it is known to the Buyer) and, as far as is reasonably practicable,
                                            the amount claimed, has been given by or on behalf of the Buyer to the Seller:

 

		(a)	in
the case of a Claim for breach of the Tax Warranties, on or before the seventh anniversary of Completion; or

 

		(b)	in
any other case, within the period of three years commencing on the Completion Date.

 

		7.5	The
                                            Seller shall not be liable for a Claim if and to the extent that the Claim:

 

		(a)	arises
from facts, events or circumstances that have been Disclosed; or

 

		(b)	relates
to a matter specifically and fully provided for in the Accounts.

 

		7.6	Nothing
                                            in this clause 7 or Schedule 5 applies to exclude or limit the liability of the Seller:

 

		(a)	if
and to the extent that a Claim or a claim under the Tax Covenant arises or is delayed as a result of dishonesty, fraud, wilful misconduct
or wilful concealment by the Seller, its agents or advisers; or

 

		(b)	for
any Claim made under the Warranties in paragraph 1 to paragraph 6 of Part 1 of Schedule 4.

 

		7.7	The
                                            Seller shall not plead the Limitation Act 1980 in respect of any claims made under the Tax
                                            Warranties or Tax Covenant in respect of any claims made within seven years of the date hereof.

 

		8.	Property

 

The
provisions of Schedule 8 apply in this agreement in relation to the Property.

 

		9.	Tax
Covenant

 

The
provisions of Schedule 5 apply in this agreement in relation to Tax.

 

		10.	Indemnities

 

		10.1	Without
                                            limiting any other rights or remedies the Buyer may have, the Seller shall indemnify the
                                            Buyer and the Company against, and shall pay to the Buyer a sum equal to, all liabilities,
                                            costs, expenses, damages and losses (including but not limited to any direct, indirect or
                                            consequential losses, loss of profit, loss of reputation and all interest, penalties and
                                            legal costs (calculated on a full indemnity basis) and all other reasonable professional
                                            costs and expenses) suffered or incurred by the Buyer or the Company arising out of or in
                                            connection with any liability for underpayment of tax.

 

    16

     

    

 

		10.2	Any
                                            payment made by the Seller in respect of an Indemnity Claim shall include:

 

		(a)	an
amount in respect of all costs and expenses incurred by the Buyer or the Company in bringing the relevant Indemnity Claim (including
a reasonable amount in respect of management time); and

 

		(b)	any
amount necessary to ensure that, after the deduction of any Tax due on the payment, the Buyer or the Company (as the case may be) is
left with the same amount it would have had if the payment was not subject to Tax.

 

		11.	Restrictions
on the Seller

 

		11.1	In
                                            this clause, the following words and expressions shall have the following meanings:

 

 Prospective Customer: a person who is at Completion, or who has been at any time during the period of 6 months immediately preceding the Completion Date, in discussions with the Company with a view to becoming a client or customer of the Company.

 

 Restricted Business: any business that is or would be in competition with any part of the Business, as it is being carried on at the Completion Date.

 

 Restricted Customer: any person who is at Completion, or who has been at any time during the period of 24 months immediately preceding the Completion Date, a client or customer of, or in the habit of dealing with, the Company.

 

 Restricted Person: any person who is at Completion, or who has been at any time during the period of 6 months immediately preceding the Completion Date, employed or directly or indirectly engaged by the Company in an executive, managerial, sales or technical role or at an annual rate of remuneration (including commission, if any,) not less than £10,000.

 

		11.2	The
                                            Seller undertakes to each of the Buyer and the Company that he shall not:

 

		(a)	at
                                            any time during the period of 24 months commencing on the Completion Date in the United Kingdom,
                                            carry on or be engaged, concerned or interested in, or in any way assist, a Restricted Business.

 

		(b)	at
any time during the period of 24 months commencing on the Completion Date:

 

		(i)	canvass,
                                            solicit or otherwise seek the custom of any Restricted Customer or Prospective Customer with
                                            a view to providing goods or services to them in competition with the Business; or

 

		(ii)	induce
                                            or attempt to induce a Restricted Customer or Prospective Customer to cease or refrain from
                                            conducting business with, or to reduce the amount of business conducted with, or to vary
                                            adversely the terms upon which he conducts business with, the Company, or do any other thing
                                            which is reasonably likely to have such an effect;

 

    17

     

    

 

		(c)	at
any time during the period of 24 months commencing on the Completion Date, have any business dealings with a Restricted Customer or a
Prospective Customer in connection with the provision of goods or services to them in competition with the Business;

 

		(d)	at
                                            any time during the period of 24 months commencing on the Completion Date, have any business
                                            dealings with, or solicit, entice or attempt to entice away, any person who is at Completion,
                                            or has been at any time during the period of 6 months immediately preceding the Completion
                                            Date, a supplier of goods or services to the Company, if such dealings, solicitation or enticement
                                            causes or is reasonably likely to cause such supplier to cease supplying, or to reduce its
                                            supply of goods or services to, the Company, or to vary adversely the terms upon which it
                                            conducts business with the Company;

 

		(e)	at
any time during the period of 24 months commencing on the Completion Date, offer employment to, enter into a contract for the services
of, or otherwise entice or attempt to entice away from the Company, any Restricted Person, or procure or facilitate the making of any
such offer or attempt by any other person;

 

		(f)	at
any time after Completion, use in the course of any business:

 

		(i)	the
                                            word “Khyber”;

 

		(ii)	any
                                            trade or service mark, business or domain name, design or logo which, at Completion, is being
                                            or has been used by the Company in connection with the Business; or

 

		(iii)	anything
                                            which, in the reasonable opinion of the Buyer, is capable of confusion with any of the words,
                                            marks, names, designs or logos referred to in clause 11.2(f)(i) or clause 11.2(f)(ii);

 

		(g)	at
any time after Completion, do or say anything which may be harmful to the reputation of the Company; or

 

		(h)	at
any time after Completion, present itself or permit himself to be presented as:

 

		(i)	connected
                                            in any capacity with the Company; or

 

		(ii)	interested
                                            or concerned in any way in the Sale Shares (or any of them).

 

		11.3	The
                                            undertakings in clause 11.2 are intended for the benefit of, and shall be enforceable by,
                                            each of the Buyer and the Company and shall apply to actions carried out by the Seller in
                                            any capacity (including as shareholder, partner, director, principal, consultant, officer,
                                            agent or otherwise) and whether directly or indirectly, on its own behalf or on behalf of,
                                            or jointly with, any other person.

 

		11.4	Nothing
                                            in clause 11.2 shall prevent the Seller from holding for investment purposes only:

 

		(a)	units
of any authorised unit trust; or

 

    18

     

    

 

		(b)	any
class of shares or securities of any company traded on a recognised investment exchange (within the meaning of the Financial Services
and Markets Act 2000).

 

		11.5	Each
                                            of the undertakings in clause 11.2 is a separate undertaking by the Seller and shall be enforceable
                                            by the Buyer and the Company separately and independently of their right to enforce any one
                                            or more of the other undertakings contained in that clause.

 

		11.6	The
                                            parties acknowledge that the Seller has confidential information relating to the Business
                                            and that the Buyer is entitled to protect the goodwill of the Business as a result of buying
                                            the Sale Shares. Accordingly, each of the undertakings in clause 11.2 is considered fair
                                            and reasonable by the parties.

 

		11.7	The
                                            consideration for the undertakings in clause 11.2 is included in the Purchase Price.

 

		12.	Confidentiality
and announcements

 

		12.1	The
                                            Seller undertakes to each of the Buyer and the Company that he shall:

 

		(a)	keep
confidential the terms of this agreement and the other Transaction Documents, and all confidential information, know how and trade secrets
in its knowledge or possession concerning the business, affairs, customers, clients or suppliers of the Company or any member of the
Buyer’s Group;

 

		(b)	not
disclose any of the information referred to in clause 12.1(a) (whether in whole or in part) to any third party, except as expressly permitted
by this clause 12; and

 

		(c)	not
make any use of any of the information referred to in clause 12.1(a), other than to the extent necessary for the purpose of exercising
or performing its rights and obligations under this agreement.

 

		12.2	Notwithstanding
                                            any other provision of this agreement, the Seller shall not be obliged to keep confidential
                                            or to restrict its use of any information that:

 

		(a)	is
or becomes generally available to the public other than as a result of its disclosure by the Seller (or any person to whom he has disclosed
the information in accordance with clause 12.3(a)) in breach of this agreement); or

 

		(b)	was,
is or becomes available to the Seller on a non-confidential basis from a person who, to the Seller’s knowledge, is not bound by
a confidentiality agreement and is not otherwise prohibited from disclosing the information to the Seller.

 

    19

     

    

 

		12.3	The
                                            Seller may disclose any information that he is otherwise required to keep confidential under
                                            this clause 12:

 

		(a)	to
any advisers who need to know such information for the purposes of advising on this agreement or facilitating the Transaction, provided
that the Seller informs the recipients of the confidential nature of the information before disclosure and procures that the recipients
shall, in relation to any such information disclosed to them, comply with the obligations set out in this clause 12 as if they were the
Seller. The Seller shall, at all times, be liable for the failure of such recipients to comply with the obligations set out in this clause;

 

		(b)	with
the prior consent in writing of the Buyer;

 

		(c)	if
and to the extent that the disclosure is required:

 

		(i)	by
                                            the laws of any jurisdiction to which he is subject;

 

		(ii)	by
                                            an order of any court of competent jurisdiction, or any regulatory, judicial, governmental
                                            or similar body, or any Tax Authority or securities exchange of competent jurisdiction;

 

		(iii)	to
                                            make any filing with, or obtain any authorisation from, any regulatory, governmental or similar
                                            body, or any Tax Authority or securities exchange of competent jurisdiction; or

 

		(iv)	to
                                            protect his interest in any legal proceedings,

 

provided
that in each case (and to the extent it is legally permitted to do so) the Seller gives the Buyer as much notice of the disclosure as
possible and, where notice of disclosure is not prohibited and is given in accordance with this clause, he takes into account the reasonable
requests of the Buyer concerning the content of the disclosure.

 

		12.4	Each
                                            party shall supply the other party with such information about itself or this agreement as
                                            the other party may reasonably require for the purposes of satisfying the requirements of
                                            any law or any judicial, governmental, regulatory or similar body or any Tax Authority or
                                            securities exchange of competent jurisdiction.

 

		12.5	Subject
                                            to clause 12.6 the Seller shall not make, or permit any person to make, any public announcement,
                                            communication or circular concerning this agreement or the Transaction (announcement)
                                            without the prior written consent of the Buyer.

 

		12.6	Nothing
                                            in clause 12.5 shall prevent the Seller from making an announcement required by law or any
                                            governmental or regulatory authority (including any Tax Authority), any securities exchange,
                                            or any court or other authority of competent jurisdiction provided that the party required
                                            to make the announcement consults with the other party and takes into account its reasonable
                                            requests concerning the content of the announcement before it is made.

 

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		12.7	The
Buyer undertakes to the Seller and the Company that if for whatever reason the Company shares are not transferred to the Buyer, it shall:

 

		(a)	keep
                                            confidential the terms of this agreement and the other Transaction Documents, and all confidential
                                            information, know how and trade secrets in its knowledge or possession concerning the business,
                                            affairs, customers, clients or suppliers of the Company;

 

		(b)	not
                                            disclose or use any of the information obtained as a result of these negotiations or this
                                            agreement (whether in whole or in part) to any third party, except as required in order to
                                            comply with applicable law or the requirements of any governmental body or legally-constituted
                                            public authority; and

 

		(c)	not
                                            make any use of any of the information obtained as a result of these negotiations or this
                                            agreement, other than to the extent necessary for the purpose of exercising or performing
                                            its rights and obligations under this agreement.

 

		13.	Further
assurance

 

		13.1	At
                                            its own expense, the Seller shall (and shall use reasonable endeavours to procure that any
                                            relevant third party shall) promptly execute and deliver such documents and perform such
                                            acts as the Buyer may require from time to time for the purpose of giving full effect to
                                            this agreement.

 

		13.2	The
                                            Seller undertakes to the Buyer that if and for so long as he remains the registered holder
                                            of any of the Sale Shares after Completion, he shall:

 

		(a)	hold
such Sale Shares together with all dividends and any other distributions of profits or other assets in respect of such Sale Shares, and
all rights arising out of or in connection with them, in trust for the Buyer;

 

		(b)	deal
with and dispose of such Sale Shares, dividends, distributions, assets and rights as the Buyer shall direct;

 

		(c)	exercise
all voting rights attached to such Sale Shares in such manner as the Buyer shall direct; and

 

		(d)	if
required by the Buyer, execute all instruments of proxy or other documents as may be necessary to enable the Buyer to attend and vote
at any meeting of the Company.

 

		14.	Assignment

 

		14.1	Subject
                                            to the further provisions of this clause 14, no party shall assign, transfer, mortgage, charge,
                                            declare a trust of, or deal in any other manner with any or all of its rights and obligations
                                            under this agreement or any other Transaction Document.

 

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		14.2	The
                                            Buyer may assign or transfer its rights (but not its obligations) under this agreement or
                                            any other Transaction Document to:

 

		(a)	another
member of its Group; or

 

		(b)	any
person to whom the Sale Shares are sold or transferred by the Buyer following Completion.

 

		14.3	The
                                            Buyer may grant security over, or assign by way of security, any or all of its rights under
                                            this agreement or any other Transaction Document for the purposes of, or in connection with,
                                            the financing (whether in whole or in part) of the Transaction. On the enforcement of any
                                            security of the kind referred to in this clause, the Buyer, or any administrative receiver
                                            of the Buyer or any person having the benefit of such security, may assign any or all of
                                            the relevant rights to any person, but the Seller’s liability to any assignee in respect
                                            of those rights shall not be greater than if no assignment had taken place.

 

		14.4	If
                                            there is an assignment or transfer of the Buyer’s rights under this agreement in accordance
                                            with clause 14.2 or clause 14.3:

 

		(a)	the
Seller may discharge its obligations under this agreement to the Buyer until he receives notice of the assignment or transfer; and

 

		(b)	the
assignee or transferee may enforce this agreement as if it were named in this agreement as the Buyer, but the Buyer shall remain liable
for any obligations under this agreement.

 

		15.	No
agency

 

Each
party confirms it is acting on its own behalf in relation to the Transaction and not for the benefit of any other person.

 

		16.	Entire
agreement

 

This
agreement (together with the other Transaction Documents) constitutes the entire agreement between the parties and supersedes and extinguishes
all previous discussions, correspondence, negotiations, drafts, agreements, promises, assurances, warranties, representations and understandings
between them, whether written or oral, relating to their subject matter.

 

		17.	Variation
and waiver

 

		17.1	No
                                            variation of this agreement shall be effective unless it is in writing and signed by the
                                            parties (or their authorised representatives).

 

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		17.2	A
                                            waiver of any right or remedy under this agreement or by law is only effective if given in
                                            writing and signed by the person waiving such right or remedy. Any such waiver shall apply
                                            only to the circumstances for which it is given and shall not be deemed a waiver of any subsequent
                                            breach or default.

 

		17.3	A
                                            failure or delay by any person to exercise any right or remedy provided under this agreement
                                            or by law shall not constitute a waiver of that or any other right or remedy, nor shall it
                                            prevent or restrict any further exercise of that or any other right or remedy. No single
                                            or partial exercise of any right or remedy provided under this agreement or by law shall
                                            prevent or restrict the further exercise of that or any other right or remedy.

 

		17.4	A
                                            party that waives a right or remedy provided under this agreement or by law in relation to
                                            one party, or takes or fails to take any action against that party, does not affect its rights
                                            in relation to any other party.

 

		18.	Costs

 

		18.1	Except
                                            as expressly provided in this agreement, each party shall pay its own costs and expenses
                                            incurred in connection with the negotiation, preparation and execution of this agreement
                                            (and the other Transaction Documents).

 

		18.2	Without
                                            prejudice to any other right or remedy the Buyer may have, the Seller shall indemnify the
                                            Buyer against all costs and expenses incurred by the Buyer in investigating the affairs of
                                            the Company and in negotiating, preparing, executing, rescinding or terminating this agreement
                                            (and the other Transaction Documents) in the event that the Buyer terminates this agreement
                                            in accordance with clause 5.4 or clause 6.6.

 

		18.3	Each
Party (the “Indemnifying Party”) shall indemnify the other (the “Indemnified Party”) against all
costs and expenses incurred by the Indemnified Party in relation to any third party proceedings brought against the Indemnified Party
following Completion as a result of the Indemnifying Party’s wilful misconduct.

 

		19.	Notices

 

		19.1	For
                                            the purposes of this clause 19, but subject to clause 19.6, notice includes any other
                                            communication.

 

		19.2	A
                                            notice given to a party under or in connection with this agreement:

 

		(a)	shall
be in writing and in English;

 

		(b)	shall
be signed by or on behalf of the party giving it;

 

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		(c)	shall
be sent to the party for the attention of the contact and to the address or email address specified in clause 19.3, or such other contact,
address or email address as that party may notify in accordance with clause 19.4; and

 

		(d)	shall
be:

 

		(i)	sent
                                            by pre-paid first class post or another next working day delivery service providing proof
                                            of delivery;

 

		(ii)	sent
                                            by pre-paid airmail providing proof of delivery; or

 

		(iii)	sent
                                            by email;

 

		(e)	is
deemed received as set out in clause 19.5 if prepared and sent in accordance with this clause.

 

		19.3	The
                                            addresses, email addresses and contacts for service of notices are:

 

		(a)	Seller

 

		(i)	address:

 

		(ii)	for
                                            the attention of:

 

		(iii)	email
                                            address:

 

		(b)	Buyer

 

		(i)	address:

 

		(ii)	for
                                            the attention of:

 

		(iii)	email
                                            address:

 

		19.4	A
                                            party may change its details for service of notices as specified in clause 19.3 by giving
                                            notice, the change taking effect for the party notified of the change at 9.00 am on the later
                                            of:

 

		(a)	the
date, if any, specified in the notice as the effective date for the change; and

 

		(b)	the
date five Business Days after deemed receipt of the notice.

 

		19.5	A
                                            notice is deemed to have been received:

 

		(a)	if
sent by pre-paid first class post or another next working day delivery service providing proof of delivery, at 9.00 am on the Business
Day after posting;

 

		(b)	if
sent by pre-paid airmail providing proof of delivery, at 9.00 am on the fifth Business Day after posting; or

 

		(c)	if
sent by email, at the time of transmission,

 

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provided
that if deemed receipt under the previous paragraphs of this clause 19.5 would occur outside Usual Business Hours, the notice shall be
deemed to have been received when Usual Business Hours next recommence. For the purposes of this clause, Usual Business Hours means
9.00 am to 5.30 pm local time on any day which is not a Saturday, Sunday or public holiday in the place of receipt of the notice (which,
in the case of service of a notice by email shall be deemed to be the same place as is specified for service of notices on the relevant
party by hand or post).

 

		19.6	This
                                            clause 19 does not apply to the service of any proceedings or other documents in any legal
                                            action [or, where applicable, any arbitration or other method of dispute resolution.

 

		20.	Interest

 

		20.1	If
                                            either party fails to make any payment due to the other party under this agreement by the
                                            due date then the defaulting party shall pay interest on the overdue sum from the due date
                                            until payment of the overdue sum, whether before or after judgment.

 

		20.2	Interest
                                            under this clause will accrue each day at 4% a year above the Bank of England’s base
                                            rate from time to time, but at 4% a year for any period when that base rate is below 0%.

 

		20.3	In
                                            relation to payments disputed in good faith, interest under this clause is payable only after
                                            the dispute is resolved, on sums found or agreed to be due, from 7 days after the dispute
                                            is resolved until payment.

 

		21.	Severance

 

If
any provision or part-provision of this agreement is or becomes invalid, illegal or unenforceable, it shall be deemed deleted, but that
shall not affect the validity and enforceability of the rest of this agreement.

 

		22.	Agreement
survives Completion

 

This
agreement (other than obligations that have already been fully performed) remains in full force after Completion.

 

		23.	Third
party rights

 

		23.1	Except
                                            as expressly provided in clause 23.2, this agreement does not give rise to any rights under
                                            the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this agreement.

 

    25

     

    

 

		23.2	The following provisions are intended to benefit future buyers of the
                                            Sale Shares and (to the extent that they are identified in the relevant clauses as recipients
                                            of rights or benefits under that clause), the Company and the Officers (as defined in clause
                                            6.11), and shall be enforceable by each of them to the fullest extent permitted by law:

 

		(a)	clause
                                            6 and Schedule 4 (Warranties), subject to clause 7 (Limitations
                                            on claims);

 

		(b)	clause 9 and Schedule 5 (Tax Covenant);

 

		(c)	clause 10 (Indemnities);

 

		(d)	clause 11 (Restrictions on the Seller);

 

		(e)	clause 12 (Confidentiality and announcements); and

 

		(f)	clause 20 (Interest).

 

		23.3	The rights of the parties to rescind or vary this agreement are not subject
                                            to the consent of any other person.

 

		24.	Counterparts

 

		24.1	This agreement may be executed in any number of counterparts, each of
                                            which shall constitute a duplicate original, but all the counterparts shall together constitute
                                            the one agreement.

 

		24.2	Transmission of the executed signature page of a counterpart of this
                                            agreement by email (in PDF, JPEG or other agreed format) shall take effect as the transmission
                                            of a “wet-ink” counterpart of this agreement.

 

		25.	Rights and remedies

 

Except as expressly provided in this agreement, the rights
and remedies provided under this agreement are in addition to, and not exclusive of, any rights or remedies provided by law.

 

		26.	Inadequacy of damages

 

Without prejudice to any other rights or remedies that the
Buyer may have, the Seller acknowledges and agrees that damages alone would not be an adequate remedy for any breach of the terms of
clause 11 or clause 12. Accordingly, the Buyer shall be entitled to the remedies of injunction, specific performance or other equitable
relief for any threatened or actual breach of the terms of clause 11 or clause 12 of this agreement.

 

		27.	Governing law and jurisdiction

 

		27.1	This agreement and any dispute or claim (including non-contractual disputes
                                            or claims) arising out of or in connection with it or its subject matter or formation shall
                                            be governed by and construed in accordance with the law of England and Wales.

 

		27.2	Each party irrevocably agrees that the courts of England and Wales shall
                                            have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes
                                            or claims) arising out of or in connection with this agreement or its subject matter or formation.

 

This agreement has been entered into on the date stated at the beginning
of it.

 

    26

     

    

 

Schedule 1 Particulars of the
Company

 

	Name:
	Khyber
    Money Exchange Ltd
	Registered
    number:	06832517
	Registered
    office:	Unit
    421, 160 London Road, Barking, England, IG11 8BB
	Issued
    share capital:	Amount: £121,800

                                                                                               

    Divided into: 121,800 shares of £1 each

	Registered
    shareholder(s) (and number of Sale Shares held):	Mr
    Rahim Shah – 121,800 shares of £1 each
	Beneficial
    owner(s) of Sale Shares (if different) and number of Sale Shares beneficially owned:	N/A
    
	Directors
    and shadow directors:	Mr
    Rahim Shah
	Secretary:	None
	Auditor:	ABM
    Global Accountants of Suite 3G & 3H, Docklands Business Centre, 10 Tiller Road Canary Wharf, London E14 8PX
	Registered
    charges:	None

 

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Schedule 2 Completion Conditions
and conduct of business

 

Part 1 Conditions to Completion

 

		1.	Approval to change of control of the Company is given by the Financial
                                            Conduct Authority pursuant to the Payment Services Regulations 2017

 

		2.	Seller shall terminate his rights as signatory to the account with Muthoot
                                            Finserve USA Inc and procure that a replacement signatory nominated by the Buyer shall be
                                            granted signatory rights to such account.

 

		3.	Without prejudice to paragraph 2 above, provide confirmation to the Buyer’s
                                            reasonable satisfaction that all credentials, access rights and other rights of existing
                                            agents and associates of the Seller and/or the Company have been revoked.

 

Part 2 Conduct of business
during the Interim Period

 

		1.	Conduct of business in the Interim Period

 

At all times during the Interim Period, the Seller shall:

 

		1.1	procure that the Company carries on the Business in the normal course
                                            and in the manner provided in this Part 2 of Schedule 2;

 

		1.2	use his best endeavours to maintain the trade and trade connections of
                                            the Company;

 

		1.3	promptly notify the Buyer in writing of any material change in the Business,
                                            financial position or assets of the Company;

 

		1.4	promptly provide
                                            the Buyer, its agents and representatives with such information relating to any changes to
                                            the major business and affairs of the Company, and such access to hard copies of their books
                                            and records relating to such changes to major business and affairs as the Buyer may require
                                            from time to time and be lawfully entitled to receive; 

 

		1.5	not induce, or attempt to induce (whether directly or indirectly), any
                                            of the employees of the Company to terminate their employment;

 

		1.6	ensure that the FXSoft Contract remains in full force and effect.

 

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		2.	Matters subject to the Buyer’s consent

 

During the Interim Period, the Seller shall procure that
except with the prior written consent of the Buyer not to be unreasonably withheld, the Company shall not (nor shall it agree to):

 

		2.1	dispose of any material assets used or required for the operation of the
                                            Business;

 

		2.2	allot any shares or other securities or repurchase, redeem or agree to
                                            repurchase or redeem any of its shares;

 

		2.3	pass any resolution of its members;

 

		2.4	appoint any person as a director of the Company;

 

		2.5	enter into, modify or agree to terminate any Material Contract (as defined
                                            in paragraph 12.1 of Part 1 of Schedule 4 unless the same is reasonably required for the
                                            benefit of the Company in which event that Buyer shall be notified of such modification or
                                            termination;

 

		2.6	borrow any sum in excess of the amounts borrowed in the ordinary course
                                            of the Business and available to it at the date of this agreement unless such sum is repaid
                                            prior to Completion so that on Completion the Company is free of debt;

 

		2.7	make any loan or cancel, release or assign any indebtedness owed to it
                                            or any claims held by it;

 

		2.8	enter into any lease, lease-hire or hire-purchase agreement or agreement
                                            for payment on deferred terms;

 

		2.9	make any distribution (other than payment of dividends of its assets;

 

		2.10	make any alterations to the terms of employment or engagement (including
                                            benefits) of any of its Directors, Employees or Workers;

 

		2.11	other than to the extent required to comply with a legislative requirement,
                                            amend any agreements or arrangements for the payment of pensions or other benefits on retirement
                                            to any of its current or former employees or directors (or any of their dependants);

 

		2.12	provide any non-contractual benefit to any Director, Employee, Worker
                                            or their dependants;

 

		2.13	dismiss any of its Employees or employ or engage (or offer to employ
                                            or engage) any person;

 

    29

     

    

 

		2.14	enter into agreement with a Representative Body;

 

		2.15	create any Encumbrance over any of its assets or its undertaking;

 

		2.16	give any financial or performance guarantee, or any similar security
                                            or indemnity;

 

		2.17	commence, settle or agree to settle any legal proceedings relating to
                                            the Business, or otherwise concerning the Company other than in the ordinary course of business;

 

		2.18	grant, modify, agree to terminate or permit the lapse of any of its Intellectual
                                            Property Rights, or enter into any agreement relating to any such rights or make any changes
                                            to its software or other information technology;

 

		2.19	pay any management charge to the Seller;

 

		2.20	incur any liability to the Seller, other than trading liabilities incurred
                                            in the normal course of the Business;

 

		2.21	vary the terms on which it holds the Property, or settle any rent review;

 

		2.22	make any material change to the accounting procedures, principles or
                                            policies by reference to which its accounts are drawn up; or

 

		2.23	permit any of its insurance policies to lapse or do anything which would
                                            reduce the amount or scope of cover or make any of its insurance policies void or voidable.

 

		3.	Access and information relating to Employee and Workers

 

During the Interim Period, the Seller
shall at its own expense, and subject to the requirements of the Data Protection Laws, provide the Buyer with such information or documents
as it may reasonably require relating to the terms of employment or any other matter concerning any Employee or Worker.

 

		4.	Access to Customer data

 

		4.1	During the Interim Period the Seller shall not, without the Buyer’s
                                            prior written consent, utilise any data held by the Company in respect of its customers other
                                            than where required for compliance by the Company with any legal or regulatory requirement
                                            or otherwise in the proper conduct of the Company’s business.

 

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Schedule 3 Seller’s obligations
at Completion and after Completion

 

		1.	Documents to be delivered at Completion

 

At Completion, and upon the Buyer paying the Purchase Price
in full to the Seller, the Seller shall deliver (or cause to be delivered) to the Buyer:

 

		1.1	a transfer of the Sale Shares, duly signed by the Seller in favour of
                                            the Buyer (or its nominee);

 

		1.2	the definitive share certificates for the Sale Shares or an indemnity,
                                            in agreed form, for any lost certificates;

 

		1.3	any waivers, consents or other documents required to enable the Buyer
                                            (or its nominee) to be registered as the holder of the Sale Shares, in each case in agreed
                                            form, and including an irrevocable waiver of any pre-emption right or other restriction on
                                            the transfer of the Sale Shares conferred on any person who is not a party to this agreement,
                                            duly signed by the holder of such right or restriction;

 

		1.4	an irrevocable power of attorney, in agreed form, duly executed by the
                                            Seller in favour of the Buyer (or its nominee) to secure its interest in the Sale Shares
                                            pending registration of the transfer in the Company’s register of members;

 

		1.5	the
                                            original of any power of attorney under which this agreement or any of the documents to be
                                            delivered to the Buyer under this paragraph 1 have
                                            been executed;

 

		1.6	the registers, minute books and other records required to be kept by the
                                            Company under the CA 2006, in each case properly written up as at the Completion Date, together
                                            with the common seals (if any), certificates of incorporation and any certificates of incorporation
                                            on change of name for each of the Company;

 

		1.7	resignation letters, in agreed form and executed as a deed, from the Directors,
                                            resigning from their respective offices and employment with the Company

 

		1.8	signed
                                            minutes, in agreed form, of each of the board meetings held by the Company as required by
                                            paragraph 2 of this Schedule
                                            3;

 

		1.9	in relation to the Company:

 

		(a)	statements from each bank at which it has an account, giving the
                                            balance of each account at the close of business on the last Business Day before Completion;

 

		(b)	all cheque books in current use and written confirmation that no
                                            cheques have been written since the statements delivered above were prepared;

 

    31

     

    

 

		(c)	details of its cash book balances; and

 

		(d)	reconciliation statements reconciling the cash book balances and
                                            the cheque books with the bank statements delivered above;

 

		1.10	all documents relating to the Property;

 

		1.11	evidence, in agreed form, that all debts and accounts between the Company
                                            and the Seller have been fully paid or otherwise discharged;

 

		1.12	evidence, in agreed form, of the release of all guarantees or other security
                                            given by the Company in respect of the liabilities or obligations of the Seller, or of any
                                            other third party;

 

		1.13	a duly executed deed of release, in agreed form, of all and any claims
                                            that the Seller has or may have against the Company;

 

		1.14	all charges, mortgages, debentures and guarantees to which the Company
                                            is a party and, in relation to each such instrument and any covenants connected with it a
                                            discharge or release in agreed form, duly executed by the relevant lender or charge holder;

 

		1.15	all policies and procedural documentation relating to the Business;

 

		1.16	all records for the five years preceding Completion which are required
                                            to be maintained in relation to the Business under The Payment Services Regulations 2017
                                            or other applicable law in the United Kingdom;

 

		1.17	all records which are held by the Company in accordance with applicable
                                            law in relation to any jurisdiction outside the United Kingdom in which the Company has at
                                            any time conducted business;

 

		1.18	confirmations from any third-party payee or payor (as applicable) in
                                            respect of all receivables and payments made during the Interim Period; and

 

		1.19	such other documents as shall be reasonably requested by the Buyer.

 

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		2.	Completion board meetings

 

The Seller shall provide a resolution of the Company at
Completion in a form approved by the Buyer at which the following matters are approved:

 

		2.1	the registration of the transfer of the Sale Shares delivered in accordance
                                            with paragraph 1.1 of this Schedule 3, subject only to the transfers being duly stamped at
                                            the Buyer’s cost;

 

		2.2	acceptance of the resignations referred to in paragraph 1.7 of this Schedule
                                            3;

 

		2.3	the appointment of the persons nominated by the Buyer as directors of
                                            the Company;

 

		2.4	changing the accounting reference date of the Company to such date as
                                            is required by the Buyer (subject always to the requirements of the CA 2006);

 

		2.5	changing the registered office of the Company to such address as is required
                                            by the Buyer; and

 

		2.6	revoking all existing instructions and authorities to the bankers of the
                                            Company and replacing them with new instructions and authorities as the Buyer requires.

 

		3.	Post Completion

 

		3.1	The Seller shall, following Completion, provide not less than five (5)
                                            days of training to the Buyer’s representative on use of the IT Systems at no cost
                                            to the Buyer.

 

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Schedule 4 Warranties

 

Part 1 General Warranties

 

		1.	Power to sell the Sale Shares

 

		1.1	The Seller has taken all necessary actions and has all requisite power
                                            and authority to enter into and perform this agreement and each of the other Transaction
                                            Documents to which he is a party in accordance with their respective terms.

 

		1.2	This agreement and each of the other Transaction Documents to which he
                                            is a party constitute (or shall constitute when executed) valid, legal and binding obligations
                                            on the Seller in accordance with their respective terms.

 

		1.3	The execution and delivery by the Seller of this agreement and each of
                                            the other Transaction Documents to which he is a party, and compliance with their respective
                                            terms shall not breach or constitute a default:

 

		(a)	under any agreement or instrument to which the Seller is a party
                                            or by which the Seller is bound; or

 

		(b)	of any order, judgment, decree or other restriction applicable
                                            to the Seller.

 

		2.	Shares in the Company

 

		2.1	The Sale Shares constitute the whole of the allotted and issued share
                                            capital of the Company and are fully paid or credited as fully paid.

 

		2.2	The Seller is the sole legal and beneficial owner of the Sale Shares and
                                            is entitled to transfer the legal and beneficial title to the Sale Shares to the Buyer free
                                            from all Encumbrances, without the consent of any other person.

 

		2.3	No person has any right to require, at any time, the transfer, creation,
                                            issue or allotment of any share, loan capital or other securities of the Company (or any
                                            rights or interest in them), and neither the Seller nor the Company has agreed to confer
                                            any such rights, and no person has claimed any such rights.

 

		2.4	No Encumbrance has been granted to any person or otherwise exists affecting:

 

		(a)	the Sale Shares; or

 

		(b)	any unissued shares, debentures or other unissued securities of
                                            the Company.

 

No commitment to create any such Encumbrance has been given,
nor has any person claimed any right to such an Encumbrance.

 

		2.5	The Company:

 

		(a)	does not hold or beneficially own, and has not agreed to acquire,
                                            any shares, loan capital or any other securities in any company;

 

    34

     

    

 

		(b)	has not at any time had any subsidiary or subsidiary undertaking;

 

		(c)	is not, and has not agreed to become, a member of any limited liability
                                            partnership, partnership or other unincorporated association, joint venture or consortium
                                            (other than recognised trade associations);

 

		(d)	does not control or takes part in the management of any company
                                            or business organisation, nor has it agreed to do so;

 

		(e)	is not, in relation to any company or limited liability partnership
                                            registered in the UK, a registrable relevant legal entity within the meaning of section 790C
                                            of the CA 2006; or

 

		(f)	does not have any branch or permanent establishment outside the
                                            United Kingdom.

 

		2.6	The Company has not at any time:

 

		(a)	purchased, redeemed, reduced, forfeited or repaid any of its own
                                            share capital; or

 

		(b)	given any financial assistance in contravention of any applicable
                                            law or regulation; or

 

		(c)	allotted or issued any securities that are convertible into shares.

 

		2.7	No shares in the capital of the Company have been issued, and no transfer
                                            of any such shares has been registered, except in accordance with all applicable laws and
                                            the memorandum and articles of association of the Company, and all such transfers have been
                                            duly stamped (where applicable).

 

		2.8	No warning notice or restrictions notice has been issued under Schedule
                                            1B (Enforcement of disclosure requirements) of the CA 2006 in respect of any shares or voting
                                            rights in, or any right to appoint or remove any member of the board of directors of, the
                                            Company.

 

		3.	Constitutional and corporate documents

 

		3.1	Copies of the memorandum and articles of association (or other constitutional
                                            and corporate documents) of the Company have been Disclosed. Such copy documents:

 

		(a)	are true, accurate and complete in all respects;

 

		(b)	have attached to them copies of all resolutions and agreements
                                            required by applicable law to be so attached; and

 

    35

     

    

 

		(c)	fully set out all the rights and restrictions attaching to each
                                            class of shares in the capital of the Company.

 

		3.2	The register of members, register of people with significant control (PSC
                                            Register) and all other statutory books and registers of the Company:

 

		(a)	have been properly kept in accordance with all applicable laws;

 

		(b)	are correctly written up to date; and

 

		(c)	contain a true, complete and accurate record of all matters and
                                            information which should be contained in them.

 

No notice or allegation has been received that any such
registers or books are incorrect or should be rectified.

 

		3.3	In relation to its PSC Register, the Company has at all times complied
                                            with its duties under section 790D (Duty to investigate and obtain information) and section
                                            790E (Duty to keep information up-to-date) of the CA 2006.

 

		3.4	All returns, particulars, resolutions and other documents that the Company
                                            is required by law to file with, or deliver to, any authority in any jurisdiction (including,
                                            in particular, the Registrar of Companies in England and Wales) have been correctly made
                                            up and duly filed or delivered.

 

		3.5	All dividends or distributions declared, made or paid by the Company have
                                            been declared, made or paid in accordance with its memorandum and articles of association,
                                            all applicable laws and regulations and any agreements or arrangements made with any third
                                            party regulating the payment of dividends and distributions.

 

		3.6	All deeds and documents belonging to the Company or to which it is a party,
                                            are in the possession of the Company.

 

		4.	Information

 

		4.1	The particulars of the Company set out in Schedule 1 are true, accurate,
                                            complete and not misleading.

 

		4.2	All information given by or on behalf of the Seller (or his agents or
                                            advisers) to the Buyer (or its agents or advisers) in the course of the negotiations leading
                                            up to this agreement was, when given, and is now, true, accurate, complete and not misleading.

 

		4.3	All information contained in the Disclosure Letter is true, accurate,
                                            complete and not misleading.

 

    36

     

    

 

		4.4	There is no information that has not been Disclosed which, if Disclosed,
                                            might reasonably be expected to affect the willingness of the Buyer to enter into the Transaction
                                            on the terms of this agreement.

 

		5.	Compliance with laws

 

		5.1	The Company has at all times conducted its business in accordance with,
                                            and has acted in compliance with, all applicable laws and regulations of any relevant jurisdiction.

 

		5.2	Neither the Company nor any of its directors or employees (current or
                                            past), has been convicted of an offence in relation to the business or affairs of the Company.

 

		6.	Licences and consents

 

		6.1	The Company holds all licences, consents, permits and authorities necessary
                                            to carry on its business in the places and in the manner in which it is carried on at the
                                            date of this agreement (Consents). Details of the Consents and copies of all related
                                            documentation have been Disclosed.

 

		6.2	Each of the Consents is valid and subsisting, and the Company is not in
                                            breach of the terms or conditions of the Consents (or any of them).

 

		6.3	There is no reason why any of the Consents may be revoked, suspended or
                                            cancelled (in whole or in part), or may not be renewed on the same terms.

 

		7.	Insurance

 

		7.1	The Company maintains, and has at all material times maintained, adequate
                                            insurance cover against all losses and liabilities, including business interruption, and
                                            all other risks that are normally insured against by a person carrying on the same type of
                                            business as the Business.

 

		7.2	The Disclosure Letter includes complete and accurate details of all insurance
                                            policies maintained by or on behalf of the Company (Policies).

 

		7.3	The Policies are in full force and effect, all premiums due on them have
                                            been paid and all other conditions of the Policies have been performed and observed.

 

		7.4	The Company has not done, or omitted to do, anything that may result in
                                            an increase in the premium payable for any of the Policies, or that may adversely affect
                                            the renewal of any of the Policies.

 

		7.5	None of the Policies:

 

		(a)	are subject to any special or unusual terms or restrictions, or
                                            to the payment of any premium in excess of the normal rate;

 

    37

     

    

 

		(b)	are void or voidable, and nothing has been done, or omitted to
                                            be done, which could make any of them void or voidable; or

 

		(c)	are capable of being terminated, or will otherwise cease to be
                                            available to the Company as a result of Completion.

 

		7.6	There are no outstanding claims under, or in respect of the validity of,
                                            any of the Policies and, so far as the Seller is aware, there are no circumstances likely
                                            to give rise to a claim under any of the Policies.

 

		8.	Powers of attorney and power to bind

 

		8.1	There are no powers of attorney granted by the Company which are currently
                                            in force.

 

		8.2	No person is entitled or authorised in any capacity to bind or commit
                                            the Company to any obligation outside the ordinary course of the Business.

 

		9.	Disputes and investigations

 

		9.1	Neither
                                            the Company nor its Director, nor any other person for whose acts the Company may be vicariously
                                            liable, is engaged or involved in, or otherwise subject to any of the following matters (such
                                            matters being referred to in this paragraph 9 as
                                            Proceedings):

 

		(a)	any litigation or administrative, mediation, arbitration or other
                                            proceedings, or any claims, actions or hearings before any court, tribunal or any governmental,
                                            regulatory or similar body, or any department, board or agency (except for debt collection
                                            in the normal course of business); or

 

		(b)	any dispute with, or any investigation, inquiry or enforcement
                                            proceedings by, any governmental, regulatory or similar body or agency in any jurisdiction.

 

		9.2	No Proceedings have been threatened or are pending by or against the Company,
                                            any Director or any other person for whose acts the Company may be vicariously liable, and
                                            there are no circumstances likely to give rise to any such Proceedings.

 

		9.3	The Company:

 

		(a)	is not affected by any subsisting or pending judgment, order or
                                            other decision or ruling of a court, tribunal or arbitrator, or of any governmental, regulatory
                                            or similar body or agency in any jurisdiction; or

 

		(b)	has given to any court, tribunal or arbitrator, or any governmental,
                                            regulatory or similar body or agency in any jurisdiction, or to any other third party a subsisting
                                            undertaking arising out of, or in connection with, any Proceedings.

 

    38

     

    

 

		10.	Defective services

 

		10.1	The Company has not supplied any services that were at the time they
                                            were supplied defective, or that did not comply with any:

 

		(a)	warranties or representations expressly or impliedly made by or
                                            on behalf of the Company in connection with such or services; or

 

		(b)	laws, regulations, standards and requirements applicable to such
                                            or services.

 

		10.2	No proceedings have been started, are pending or have been threatened
                                            against the Company in respect of any services supplied by the Company.

 

		10.3	There are no disputes between the Company and any of its customers, clients
                                            or any other third parties in connection with any services supplied by the Company.

 

		11.	Customers and suppliers

 

		11.1	The definition in this paragraph applies in this agreement.

 

Material Counterparty: any customer,
client or supplier of the Company who is of material importance to the business or profits of the Company during the period of 12 months
ending on the date of this agreement.

 

		11.2	In the period of 12 months ending on the date of this agreement:

 

		(a)	no Material Counterparty has ceased, or threatened to cease to
                                            do business with, or reduced, or threatened to reduce in any material respect the extent
                                            to which it does business with, the Company;

 

		(b)	there has been no material adverse change in the basis or terms
                                            on which any Material Counterparty does business with the Company; and

 

		(c)	the Business has not been materially affected in an adverse manner
                                            as a result of (either individually or in combination) the loss of, or a reduction in trading
                                            with, any customer, client or supplier of the Company, or a change in the terms on which
                                            any such customer, client or supplier does business with the Company.

 

		11.3	None of the matters referred to in paragraph 11.2 above is likely to
                                            occur.

 

		11.4	So far as the Seller is aware, no customer or client of the Company who
                                            is a Material Counterparty is subject to a relevant insolvency procedure within the meaning
                                            of section 233B(2) of the Insolvency Act 1986.

 

    39

     

    

 

		12.	Contracts

 

		12.1	The definition in this paragraph applies in this agreement.

 

Material Contract: any agreement,
arrangement, understanding or commitment that the Company is a party to or bound by, that is of material importance to the business,
profits or assets of the Company.

 

		12.2	Except as Disclosed, the Company is not a party to, or otherwise subject
                                            to any agreement, arrangement, understanding or commitment which:

 

		(a)	is a Material Contract;

 

		(b)	is of an unusual or exceptional nature;

 

		(c)	is not in the ordinary and usual course of the Business;

 

		(d)	may be terminated as a result of a change of Control of the Company;

 

		(e)	restricts the freedom of the Company to carry on the Business in
                                            any part of the world in such manner as it thinks fit;

 

		(f)	involves agency or distributorship;

 

		(g)	involves partnership, joint venture, consortium, joint development,
                                            shareholder or similar arrangements;

 

		(h)	involves the grant of any sole or exclusive rights by or to the
                                            Company;

 

		(i)	is incapable of complete performance in accordance with its terms
                                            within six months after the date on which it was entered into;

 

		(j)	cannot be readily fulfilled or performed by the Company on time
                                            and without undue or unusual expenditure of money and effort;

 

		(k)	involves or is likely to involve an aggregate consideration payable
                                            by or to the Company in excess of £10,000;

 

		(l)	requires the Company to pay any commission, finder’s fee, royalty
                                            or the like;

 

		(m)	is for the supply of goods and/or services by or to the Company
                                            on terms under which retrospective or future discounts, price reductions or other financial
                                            incentives are given;

 

		(n)	is not on arm’s-length terms;

 

		(o)	is a finance lease, hire purchase, rental or credit sale agreement,
                                            or which otherwise provides for the purchase or right to purchase any asset by instalment
                                            payments; or

 

		(p)	involves other obligations or liabilities that ought reasonably
                                            to be made known to the Buyer.

 

    40

     

    

 

		12.3	There are no outstanding or ongoing negotiations of material importance
                                            to the business, profits or assets of the Company, or any outstanding quotations or tenders
                                            for a contract that, if accepted, would give rise to a Material Contract, or a contract of
                                            any other type as referred to in paragraph 12.2 of Part 1 of this Schedule 4.

 

		12.4	Each Material Contract is in full force and effect and binding on the
                                            parties to it.

 

		12.5	Neither the Company nor any counterparty is (or will, with the lapse
                                            of time, be) in default of any:

 

		(a)	Material Contract; or

 

		(b)	other agreement, arrangement, undertaking or commitment a default
                                            of which would be material having regard to the trading, profits or financial position of
                                            the Company.

 

No such default has been threatened, and there are no facts
or circumstances likely to give rise to any such default.

 

		12.6	No notice of termination of a Material Contract has been received or
                                            served by the Company, and there are no grounds for the termination, rescission, avoidance,
                                            repudiation or a material change in the terms of any such contract.

 

		13.	Transactions with the Seller and Seller’s interests

 

		13.1	There is no outstanding indebtedness or other liability (actual or contingent)
                                            and no outstanding contract, commitment or arrangement between the Company and the Seller.

 

		13.2	The Seller is not entitled to a claim of any nature against the Company
                                            and has not assigned to any person the benefit of any such claim.

 

		13.3	The Seller is not at the date of this agreement, nor has been at any
                                            time during the period of three years immediately preceding the date of this agreement, concerned,
                                            interested or engaged, directly or indirectly and in whatever capacity, in any other business
                                            similar to or competitive with the Business.

 

		14.	Finance and guarantees

 

		14.1	The Disclosure Letter contains full particulars of all:

 

		(a)	money borrowed by the Company; and

 

		(b)	loans, overdrafts or other financial facilities currently outstanding
                                            or available to the Company (Financial Facilities), including copies of all documents
                                            relating to such Financial Facilities.

 

    41

     

    

 

		14.2	The total amount borrowed by the Company (whether pursuant to the Financial
                                            Facilities or otherwise) does not exceed any limitations on the borrowing powers of the Company
                                            contained in:

 

		(a)	its articles of association; or

 

		(b)	any debenture or other deed or document binding on the Company.

 

		14.3	There are no circumstances or matters which could affect the continuance
                                            of any of the Financial Facilities, or which may result in an amendment of their terms.

 

		14.4	No indebtedness of the Company is due and payable and no Encumbrance
                                            over any of the assets of the Company is now enforceable, whether by virtue of the stated
                                            maturity date of the indebtedness having been reached or otherwise.

 

		14.5	The Company has not received any notice (whose terms have not been fully
                                            complied with or carried out) from any creditor requiring any payment to be made in respect
                                            of any indebtedness (whether arising pursuant to the Financial Facilities or otherwise),
                                            or intimating the enforcement of any Encumbrance which it holds over the assets of the Company.

 

		14.6	Except as Disclosed, no Encumbrance, guarantee, indemnity or other similar
                                            security arrangement has been given or entered into (or agreed to be given or entered into)
                                            by the Company or any third party in respect of the borrowings or other obligations of the
                                            Company (whether arising pursuant to the Financial Facilities or otherwise).

 

		14.7	The Company has not given or entered into (or agreed to give or enter
                                            into) any Encumbrance, guarantee, indemnity or other similar security arrangement in respect
                                            of the indebtedness of, or the default in the performance of any obligation by, any other
                                            person.

 

		14.8	The Company has not:

 

		(a)	factored or discounted any of its debts;

 

		(b)	engaged in financing of a type which would not need to be shown
                                            or fully reflected in the Accounts; or

 

		(c)	waived any right of set-off it may have against any third party.

 

		14.9	The Company does not have any outstanding loan capital and has not lent
                                            any money that has not been repaid, and there are no debts owing to the Company other than
                                            debts that have arisen in the normal course of the Business.

 

		14.10	The debts owing to the Company as reflected in the Accounts, and all
                                            debts subsequently recorded in the books of the Company since the Accounts Date:

 

		(a)	have been realised, or will within three months after the date
                                            of this agreement realise in cash their full amount as included in those Accounts or books;

 

    42

     

    

 

		(b)	have not been outstanding (in whole or in part) for more than two
                                            months from its due date for payment; and

 

		(c)	are not subject to any right of set-off or counterclaim.

 

		14.11	The Company is not subject to any arrangement for receipt or repayment
                                            of any grant, subsidy or financial assistance from any government department or other body.

 

		14.12	Particulars of the balances of all the bank accounts of the Company,
                                            showing the position as at the day immediately preceding the date of this agreement, have
                                            been Disclosed and the Company does not have any other bank account. Since the date of those
                                            particulars, there have been no payments out of those bank accounts other than routine payments
                                            in the ordinary course of the Business.

 

		14.13	Having regard to the existing banking and other facilities available
                                            to it, the Company has sufficient working capital for the purposes of:

 

		(a)	continuing to carry on the Business in its present form and at
                                            its present level of turnover during the period of 12 months following the date of this agreement;
                                            and

 

		(b)	executing, carrying out and fulfilling in accordance with their
                                            respective terms all orders, projects and contractual obligations which have been placed
                                            with or undertaken by the Company.

 

		15.	Liabilities

 

		15.1	The Company does not have any liabilities (including contingent liabilities)
                                            other than as disclosed in the Accounts or incurred in the ordinary and proper course of
                                            the Business since the Accounts Date.

 

		15.2	No sum is owing by the Company to its auditors, solicitors or other professional
                                            advisers, and no accrual ought properly to be made by it in respect of any such sum.

 

		16.	Effect of the Transaction

 

		16.1	Neither the acquisition of the Sale Shares by the Buyer, nor compliance
                                            with the terms of this agreement will:

 

		(a)	cause the Company to lose the benefit of any asset, right or privilege
                                            it presently enjoys;

 

		(b)	relieve any person of any obligation to the Company (whether contractual
                                            or otherwise), or enable any person to determine any such obligation or any right or benefit
                                            enjoyed by the Company, or to exercise any other right in respect of the Company;

 

    43

     

    

 

		(c)	result in any customer, client or supplier being entitled to cease
                                            dealing with the Company, or reducing its level of business, or changing the terms on which
                                            it deals, with the Company;

 

		(d)	result in the loss or impairment of, or any default under, any
                                            licence, authorisation or consent required by the Company;

 

		(e)	result in any officer or senior employee leaving the Company;

 

		(f)	result in the creation, imposition, crystallisation or enforcement
                                            of any Encumbrance on any of the assets of the Company;

 

		(g)	result in any present or future indebtedness of the Company becoming
                                            due and payable or capable of being declared due and payable prior to its stated maturity
                                            date, or cause any Financial Facility to be terminated or withdrawn;

 

		(h)	entitle any person to receive from the Company any finder’s fee,
                                            brokerage or other commission in connection with the Transaction;

 

		(i)	give rise to, or cause to become exercisable, any right of pre-emption
                                            over the Sale Shares; or

 

		(j)	entitle any person to acquire, or affect the entitlement of any
                                            person to acquire, shares in the Company.

 

		17.	Insolvency

 

		17.1	The Company:

 

		(a)	is not insolvent or unable to pay its debts within the meaning
                                            of the Insolvency Act 1986 or any other applicable insolvency legislation; or

 

		(b)	has stopped paying its debts as they fall due.

 

		17.2	No step has been taken in any applicable jurisdiction to initiate any
                                            process by or under which:

 

		(a)	the ability of the creditors of the Company to take any action
                                            to enforce their debts is suspended, restricted or prevented, including (without limitation)
                                            pursuant to a moratorium under Part A1 of the Insolvency Act 1986;

 

		(b)	some or all of the creditors of the Company accept, by agreement
                                            or in pursuance of a court order, an amount less than the sums owing to them in satisfaction
                                            of those sums, or make any other compromise or arrangement with the Company;

 

		(c)	a person is appointed to manage the affairs, business and assets
                                            of the Company on behalf of its creditors; or

 

    44

     

    

 

		(d)	the holder of a charge over any of the assets of the Company is
                                            appointed to control the business and/or any assets of the Company.

 

		17.3	In relation to the Company:

 

		(a)	no administrator has been appointed;

 

		(b)	no documents have been filed with the court for the appointment
                                            of an administrator; and

 

		(c)	no notice of an intention to appoint an administrator has been
                                            given by the relevant company, its directors or by a qualifying floating charge holder (as
                                            defined in paragraph 14 of Schedule B1 to the Insolvency Act 1986).

 

		17.4	No process has been initiated which could lead to the Company being dissolved
                                            and its assets being distributed among their creditors, shareholders or other contributors.

 

		17.5	No distress, execution or other process has been levied or enforced on,
                                            and no creditor or encumbrancer has taken control of, any goods or assets of the Company.

 

		17.6	No analogous event to any of the events referred to in paragraph 17.1
                                            to paragraph 17.5 above has occurred in relation to the Seller.

 

		18.	Accounts

 

		18.1	The Accounts:

 

		(a)	show a true and fair view of the state of affairs of the Company
                                            as at the Accounts Date, and of its profit or loss and total comprehensive income for the
                                            accounting period ended on the Accounts Date;

 

		(b)	have been properly prepared in accordance with FRS 102 using appropriate
                                            accounting policies and estimation techniques as required by section 10 of FRS 102;

 

		(c)	comply with the requirements of the CA 2006 and all other applicable
                                            law and regulations in the UK;

 

		(d)	(save as the Accounts expressly disclose) are not affected by any
                                            extraordinary, exceptional or non-recurring items; and

 

		(e)	(save as the Accounts expressly disclose) have been prepared using
                                            the same accounting policies and estimation techniques as those adopted and applied in preparing
                                            the Previous Accounts.

 

		18.2	The Accounts have been audited by an individual or firm registered to
                                            act as auditors in the UK and the auditors’ reports thereon are unmodified.

 

    45

     

    

 

		18.3	The Accounts (together in each case with the related directors’ reports
                                            and auditors’ reports) have been:

 

		(a)	circulated to every person entitled to receive a copy in accordance
                                            with section 423 of the CA 2006;

 

		(b)	laid before the Company in general meeting, where required by the
                                            CA 2006 or the articles of association of the relevant company; and

 

		(c)	filed with the Registrar of Companies,

 

in each case in accordance with the relevant requirements
of the CA 2006 and all other applicable laws and regulations in the UK.

 

		18.4	The Accounts:

 

		(a)	charge depreciation and amortisation on non-current assets at a
                                            suitable rate such that all non-current assets will be written down to nil or a realisable
                                            residual value at the end of their useful lives as required by sections 17 and 18 of FRS
                                            102;

 

		(b)	reflect all impairments to the recoverable amounts of non-current
                                            assets as required by section 27 of FRS 102, whether or not there were any indicators of
                                            impairment at the Accounts Date;

 

		(c)	make proper and adequate provision for credit risk such that all
                                            receivables are stated at no more than their recoverable amount at the Accounts Date;

 

		(d)	classify and measure all financial instruments according to the
                                            requirements of sections 11 and 12 of FRS 102;

 

		(e)	have correctly allocated overheads to the cost of inventory based
                                            on normal levels of activity, make proper provision against or have written off all obsolete
                                            or slow-moving inventory, and show all items of inventory at the lower of cost and estimated
                                            selling price less costs to complete or sell at the Accounts Date as required by section
                                            13 of FRS 102;

 

		(f)	include all known liabilities and all provisions as required by
                                            section 21 of FRS 102;

 

		(g)	provide for all Tax in respect of which the Company is accountable,
                                            including deferred tax, as required by section 29 of FRS 102;

 

		(h)	include in the notes disclosure of all contingent liabilities as
                                            required by section 21 of FRS 102;

 

		(i)	include in the notes all related party disclosures as required
                                            by section 33 of FRS 102; and

 

    46

     

    

 

		(j)	have dealt with all events after the Accounts Date up to the date
                                            of approval of the relevant accounts by the board of directors as required by section 32
                                            of FRS 102.

 

		18.5	The Management Accounts have been prepared on a basis consistent with
                                            that employed in preparing the Accounts and fairly represent the assets and liabilities and
                                            the profits and losses of the Company as at the date and in respect of the period to which
                                            they relate.

 

		19.	Changes since the Accounts Date

 

Since the Accounts Date:

 

		19.1	the Company has conducted the Business in the normal course and as a
                                            going concern;

 

		19.2	there has been no material adverse change in the turnover, financial
                                            position or prospects of the Company;

 

		19.3	the Company has not issued or agreed to issue any share or loan capital;

 

		19.4	no dividend or other distribution of profits or assets has been, or agreed
                                            to be, declared, made or paid by the Company;

 

		19.5	the Company has not borrowed or raised any money or given or taken any
                                            form of financial security;

 

		19.6	no capital expenditure has been incurred on any individual item by the
                                            Company in excess of £5000 and the Company has not acquired, invested or disposed of
                                            (or agreed to acquire, invest or dispose of) any individual item in excess of £5000;

 

		19.7	no shareholder resolutions of the Company have been passed;

 

		19.8	the Company has paid its creditors within the applicable periods agreed
                                            with the relevant creditor and there are no amounts owing by the Company which have been
                                            outstanding for more than 60 days; and

 

		19.9	there has been no reduction in the value of the net assets of the Company
                                            determined in accordance with the same accounting principles and policies as those applied
                                            in the Accounts (and on the basis that each of the assets is valued at a figure no greater
                                            than the value attributed to it in the Accounts or, in the case of any of the assets acquired
                                            by the Company after the Accounts Date, at a figure no greater than cost).

 

    47

     

    

 

		20.	Financial and other records

 

		20.1	All financial and other records of the Company (Records):

 

		(a)	have been properly prepared and maintained;

 

		(b)	constitute an accurate record of all matters required by law to
                                            appear in them, and in the case of the accounting records, comply with the requirements of
                                            sections 386 and 388 of the CA 2006;

 

		(c)	do not contain any material inaccuracies or discrepancies; and

 

		(d)	are in the possession of the Company.

 

		20.2	No notice has been received or allegation made that any of the Records
                                            are incorrect or should be rectified.

 

		20.3	To the extent that any of the Records are maintained or stored electronically:

 

		(a)	the Company is the owner of any hardware and software required
                                            to access, maintain, copy and use such Records, and such ownership is not shared with any
                                            other person; and

 

		(b)	such Records are adequately backed-up.

 

		21.	Assets

 

		21.1	The assets included in the Accounts, together with any assets acquired
                                            since the Accounts Date and all other assets used by the Company in connection with the Business
                                            (except for those disposed of since the Accounts Date in the normal course of business) are:

 

		(a)	legally and beneficially owned by the Company, and the Company
                                            has good and marketable title to such assets;

 

		(b)	not the subject of any lease, lease hire agreement, hire purchase
                                            agreement or agreement for payment on deferred terms, or any licence or factoring arrangement;
                                            and

 

		(c)	in the possession and control of the Company.

 

		21.2	Except as Disclosed, none of the assets, undertaking or goodwill of the
                                            Company is subject to an Encumbrance or any agreement or commitment to create an Encumbrance,
                                            and no person has claimed to be entitled to create such an Encumbrance.

 

		21.3	The assets owned by the Company comprise all the assets necessary for
                                            the continuation of the Business as it is carried on at the date of this agreement.

 

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		22.	Plant and equipment

 

		22.1	The plant office and other equipment used by the Company in connection
                                            with the Business are:

 

		(a)	in good working order and have been regularly and properly maintained;

 

		(b)	capable, and will continue to be capable, of doing the work for
                                            which they were designed; and

 

		(c)	not surplus to the current or proposed requirements of the Company.

 

		23.	Intellectual property

 

		23.1	The definition in this paragraph apply in this agreement:

 

Intellectual Property Rights: patents,
rights to inventions, copyright and related rights, trade marks, business names and domain names, rights in get-up, goodwill and the
right to sue for passing off rights in designs, rights in computer software, database rights, rights to use, and protect the confidentiality
of, confidential information (including know-how and trade secrets), and all other intellectual property rights, in each case whether
registered or unregistered and including all applications and rights to apply for and be granted, renewals or extensions of, and rights
to claim priority from, such rights and all similar or equivalent rights or forms of protection which subsist or will subsist now or
in the future in any part of the world.

 

		23.2	Complete and accurate particulars are set out in Part 1 and Part 2 of
                                            Schedule 6 respectively of all registered Intellectual Property Rights (including applications
                                            for such rights) and material unregistered Intellectual Property Rights owned by the Company.

 

		23.3	Complete and accurate particulars are set out in Part 3 and Part 4 of
                                            Schedule 6 respectively of all material licences, agreements, authorisations and permissions
                                            (in whatever form and whether express or implied) under which the Company:

 

		(a)	uses or exploits Intellectual Property Rights owned by any other
                                            person; or

 

		(b)	has licensed or agreed to license Intellectual Property Rights
                                            to, or otherwise permitted the use of any Intellectual Property Rights by, any other person.

 

		23.4	The Company does not require the use of any Intellectual Property Rights
                                            in order to carry on the Business in the manner in which it was operated at and before the
                                            date of this agreement and to fulfil any currently existing plans or proposals, other than
                                            those rights which:

 

		(a)	it is currently able to exercise, without restriction, in relation
                                            to the Intellectual Property Rights which it owns; and

 

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		(b)	are currently granted to it under the licences set out in Part
                                            3 of Schedule 6.

 

		23.5	The Intellectual Property Rights set out in Part 1 and Part 2 of Schedule
                                            6 are valid, subsisting and enforceable and nothing has been done, or not been done, as a
                                            result of which any of them has ceased or might cease to be valid, subsisting or enforceable.

 

		23.6	The agreements and licences set out in Part 3 and Part 4 of Schedule
                                            6:

 

		(a)	are valid and binding and recorded in writing;

 

		(b)	have, where required, been duly recorded or registered;

 

		(c)	have not been the subject of any breach or default by any party
                                            or of any event which, with the giving of notice or lapse of time, would constitute a default;
                                            and

 

		(d)	are not the subject of any claim, dispute or proceeding, pending
                                            or threatened.

 

		23.7	The activities of the Company have not:

 

		(a)	infringed, do not infringe and are not likely to infringe the Intellectual
                                            Property Rights of any third party;

 

		(b)	constituted, do not constitute and are not likely to constitute
                                            any breach of confidence, passing off or actionable act of unfair competition; or

 

		(c)	given and do not give rise to any obligation to pay any royalty,
                                            fee, compensation or any other sum whatsoever.

 

		24.	Information technology

 

		24.1	The definitions in this paragraph apply in this agreement.

 

Domain Names:
the internet domain names associated with the Business including those set out in Part 3 of Schedule 7.

 

Good Industry Practice: the exercise
of that degree of skill, care, prudence, efficiency, foresight and timeliness as would be expected from a leading company within the
relevant industry or business sector.

 

IT Contracts: all agreements or
arrangements under which any third party provides or will provide any element of, or services relating to, the IT Systems, including
leasing, hire purchase, licensing, maintenance, website hosting, outsourcing, security, back-up, disaster recovery, insurance, cloud
computing and other types of services agreements.

 

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IT Systems: the network and information
systems that are owned, used or held for use by the Company, including: (i) all computer hardware (including network and telecommunications
equipment and related peripherals) and mobile devices; (ii) all software (including associated user manuals, object code and other materials
sufficient to enable a reasonably skilled programmer to maintain and modify the software but excluding the source code) and firmware (Software);
and (iii) all databases (Databases).

 

Social Media Account: any user account,
profile, page or other similar presence on an online communication channel incorporating user-generated content in connection with the
Business.

 

		24.2	Complete
and accurate particulars of the IT Systems and the IT Contracts are set out in Part 1 and Part 2 of Schedule 7. The
Seller has no reason to believe that any of the IT Contracts are not adequate for the purposes of the Business as it is operated at and
before the date of this agreement.

 

		24.3	Except to the extent provided for in the IT Contracts (details of which have been disclosed  Part
2 of  Schedule 7), the Company is the owner of and in unrestricted possession of
the IT Systems free from Encumbrances.

 

		24.4	The IT Contracts are valid and binding and recorded in writing, and no act or omission has occurred which would, if necessary, with
the giving of notice or lapse of time, constitute a breach of any of them.

 

		24.5	There are and have been no claims, disputes or proceedings arising or threatened under any of the IT Contracts or in respect of the
IT Systems.

 

		24.6	All elements of the IT Systems:

 

		(a)	are not defective in any material respect and have not been materially defective or materially failed to function during the last
one year;

 

		(b)	have sufficient capacity, scalability and performance (without modification) to meet the current and foreseeable requirements of the
Business;

 

		(c)	include sufficient user information (including supplier’s recommendations) reduced to writing and in a commonly-readable format, which
is within the possession and control of the Company, to enable reasonably skilled personnel in the field to use and operate the IT Systems
without the need for further assistance (User Information); and

 

		(d)	meet all applicable regulatory requirements, including (in respect of any element of the IT Systems which processes personal data)
the requirement for privacy by design and privacy by default.

 

		(e)	all leap years will be recognised as such.

 

		24.7	The IT Systems are capable of:

 

		(a)	performing their functions in multiple currencies, including the Euro and the GBP;

 

		(b)	satisfying the conversion and rounding rules in EU Regulation 1103/97 and any other applicable legal requirements relating to the
Euro and the GBP;

 

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		(c)	displaying and printing the generally accepted symbols for the Euro, the GBP and any other currency; and

 

		(d)	processing the generally accepted codes for the Euro, the GBP and any other currency.

 

		24.8	Complete and accurate particulars of all
                                            Social Media Accounts and Domain Names are set out in Part 3 of Schedule 7. All Social Media
                                            Accounts and Domain Names are controlled and administered by the Company and used exclusively
                                            in connection with the Business.

 

		24.9	The Company:

 

		(a)	is the current registrant and user of each Domain Name and Social Media Account, and has not sold, transferred, licensed, charged
or otherwise encumbered any Domain Name or Social Media Account, or allowed a Domain Name or Social Media Account to be used by any third
party;

 

		(b)	has in its control and possession sufficient information, passwords and access codes to allow it to access, edit, control and/or administer
each Domain Name and Social Media Account, including after the date of this agreement;

 

		(c)	has not committed any breaches, and is currently not in breach, of any agreement with the registrar of any Domain Name or provider
of any Social Media Account; and

 

		(d)	has completed all necessary formalities (including the payment of all relevant fees) in order to affect any renewals of the Domain
Names or Social Media Accounts which were due prior to the date of this agreement.

 

		24.10	No person has used the Social Media Accounts to infringe or misuse or misappropriate the rights of any other person or to defame,
libel or slander such person, or to make any unauthorised statement about, or on behalf of, or in connection with, the Business, or the
Company.

 

		24.11	The Company has in place:

 

		(a)	a fully documented disaster recovery plan which, in conjunction with any necessary agreements with third party service providers,
would enable the Business to continue if there were significant damage to or destruction of some or all of the IT Systems;

 

		(b)	a monitoring programme which enables the Company to effectively detect, prioritise, and report security incidents on a continuous
24/7 basis; and

 

		(c)	a data security breach and response plan which enables the Company to effectively mitigate any security incident and the effects of
any security incident on the Business.

 

		25.	Data protection and privacy

 

		25.1	The definitions in this paragraph apply in this agreement.

 

Data Protection Laws: all laws (whether
of the UK or any other jurisdiction) relating to the use, protection and privacy of Personal Data (including the privacy of electronic
communications) which are from time to time applicable to the Company (or any part of its business).

 

Personal Data: has the meaning given
to that term in Article 4 of the UK GDPR.

 

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Processor: has the meaning given
in paragraph  25.4(a) of  Part 1 of this
 Schedule 4.

 

Supervisory Authority: any local,
national, supranational, state, governmental or quasi-governmental agency, body, department, board, official or entity exercising regulatory
or supervisory authority pursuant to any Data Protection Laws, including the Information Commissioner’s Office in the UK.

 

UK GDPR: has the meaning given to
it in section 3(10) (as supplemented by section 205(4)) of the Data Protection Act 2018.

 

		25.2	The Company has at all times complied with the Data Protection Laws in all respects.

 

		25.3	The Company has:

 

		(a)	introduced and applied appropriate data protection policies and procedures concerning the collection, use, storage, retention and
security of Personal Data, and implemented regular staff training, use testing, audits or other documented mechanisms to ensure and monitor
compliance with such policies and procedures;

 

		(b)	appointed a data protection officer if required to do so under the Data Protection Laws;

 

		(c)	maintained complete, accurate and up to date records of all their Personal Data processing activities as required by the Data Protection
Laws;

 

		(d)	implemented appropriate technical and organisational measures to protect against the unauthorised or unlawful processing of, or accidental
loss or damage to, any Personal Data processed by the Company, and ensure a level of security appropriate to the risk represented by the
processing and the nature of the Personal Data to be protected; and

 

		(e)	put in place an adequate data breach response plan (including maintaining a record of personal data breaches) that enables the Company
to comply with the related requirements of the Data Protection Laws.

 

		25.4	The Company has:

 

		(a)	undertaken appropriate due diligence on any third parties it has appointed to process Personal Data (Processors); and

 

		(b)	an agreement in place with each Processor which complies with all applicable requirements of the Data Protection Laws.

 

		25.5	The Company has complied with all applicable requirements under the Data Protection Laws relating to the disclosure or transfer of
Personal Data outside the UK.

 

		25.6	The Company has complied with all data subject requests, including any requests for access to Personal Data, the cessation of specified
processing activities or the rectification or erasure of any Personal Data, in each case in accordance with the requirements of the Data
Protection Laws, and there are no such requests outstanding at the date of this agreement.

 

		25.7	The Company has not suffered any breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised
disclosure of, or access to any Personal Data.

 

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		25.8	The Company has not received any:

 

		(a)	notice, request, correspondence or other communication from any Supervisory Authority, or been subject to any enforcement action (including
any fines or other sanctions), in each case relating to a breach or alleged breach of its obligations under the Data Protection Laws;
or

 

		(b)	claim, complaint, correspondence or other communication from a data subject or any other person claiming a right to compensation under
the Data Protection Laws, or alleging any breach of the Data Protection Laws,

 

and, so far as the Seller is aware, there is no fact or circumstance
that may lead to any such notice, request, correspondence, communication, claim, complaint or enforcement action.

 

		25.9	The Company has duly complied with all applicable notification or registration obligations and paid the appropriate level of fees
or charges in respect of their processing activities, in each case as required by the Data Protection Laws.

 

		26.	Employment

 

		26.1	The definitions in this paragraph apply in this agreement.

 

Employee: any person employed by
the Company under a contract of employment.

 

Employment Laws: all laws applying
in England and Wales from time to time which affect contractual or other relations between an employer and their employees or workers
including all legislation and any claim arising under European treaty provisions or directives (as any such treaties or directives apply
in England and Wales from time to time, including as retained, amended, extended, re-enacted or otherwise given effect on or after 11pm
on 31 January 2020) which, in either case, are enforceable against the Company by any Employee or Worker.

 

Representative Body: any trade union,
staff association, staff council, works council, information and consultation body and any other worker representatives relating to any
person employed or engaged by or in the Company.

 

Worker: any person who is not an
Employee and personally performs work for the Company but who is not in business on their own account or in a client/customer relationship.

 

		26.2	No notice to terminate the contract of any Employee or Worker (whether given by the Company or by the Employee or Worker) is pending,
outstanding or threatened and no dispute under any Employment Laws or otherwise is outstanding between the Company and any current or
former:

 

		(a)	Employee relating to their employment, its termination or any reference given by the Company regarding such Employee; or

 

		(b)	Worker relating to their contract, its termination or any reference given by the Company regarding such Worker.

 

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		26.3	No questionnaire has been served on the Company by an Employee or Worker under any Employment Laws that remains unanswered in full
or in part.

 

		26.4	Every Employee or Worker who requires permission to work in the UK has current and appropriate permission to work in the UK.

 

		26.5	No offer of employment or engagement has been made by the Company that has not yet been accepted, or that has been accepted but where
the employment or engagement has not yet started.

 

		26.6	The acquisition of the Sale Shares by the Buyer and compliance with the terms of this agreement will not entitle any Director, officer
or Employee of the Company to terminate their employment or receive any payment or other benefit.

 

		26.7	All contracts between the Company and its Employees and Workers are terminable at any time on not more than three months’ notice without
compensation (other than for unfair dismissal or a statutory redundancy payment) or any liability on the part of the Company other than
wages, commission or pension.

 

		26.8	All contracts between the Company and its Directors, Employees or Workers comply with any relevant requirements of section 188 of
the CA 2006.

 

		26.9	The Company is not a party to, bound by or proposing to introduce in respect of any of its Directors or Employees any redundancy payment
scheme in addition to statutory redundancy pay, nor is there any agreed procedure for redundancy selection.

 

		26.10	Neither the Company (nor any predecessor or owner of any part of their respective businesses) has been a party to a relevant transfer
for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 affecting any of the Employees or any other
persons engaged in the Business and no event has occurred that may involve such persons in the future being a party to such a transfer.
No such persons have had their terms or employment varied for any reason as a result of or connected with such a transfer.

 

		26.11	There are no cash incentive schemes or arrangements (including any commission, profit sharing or bonus scheme) established by the
Company in which any Director or former director of the Company or any Employee or Worker (or any of their respective associates or nominees)
participates or has participated.

 

		26.12	The Company is not a party to, bound by or proposing to introduce for the benefit of any Directors, Employees or Workers or former
directors, Employees or Workers (or any of their respective associates or nominees), any cash incentive scheme or arrangement (including
any commission, profit sharing or bonus scheme).

 

		26.13	The Company has not incurred any actual or contingent liability in connection with any termination of employment of its Employees
(including redundancy payments) or for failure to comply with any order for the reinstatement or re-engagement of any Employee.

 

		26.14	The Company has not incurred any liability for failure to provide information or to consult with Employees under any Employment Laws.

 

		26.15	The Company has not made or agreed to make a payment or provided or agreed to provide a benefit to any Director, officer, Employee,
Worker or former director, officer, Employee or Worker, or to their dependants in connection with the actual or proposed termination or
suspension of employment or variation of an employment contract.

 

		26.16	The Company is not involved in any material industrial or trade dispute or negotiation regarding a claim with any Representative Body
and there is nothing likely to give rise to such a dispute or claim.

 

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		26.17	The Company has not:

 

		(a)	altered any of the terms of employment or engagement of any Employee or Worker; or

 

		(b)	offered, promised or agreed to any future variation in the terms of employment or engagement of any Employee or Worker.

 

		26.18	The Company has not transferred or agreed to transfer any Employee or Worker from working for the Company, or induced any Employee
or Worker to resign their employment with the Company.

 

		26.19	There are no sums owing to any current or former Employee or Worker other than reimbursement of expenses, wages for the current salary
period and holiday pay for the current holiday year.

 

		26.20	The Company has afforded all Employees and Workers the right to paid holiday under regulations 13 and 13A of the Working Time Regulations
1998 (SI 1998/1833) (WTR 1998), and have not deterred or prevented any Employee or Worker from taking such holiday whether or not requested.

 

		26.21	In the two years preceding the date of this agreement, in respect of each of the Employees and Workers, all holiday pay for periods
of holiday taken under regulation 13 of the WTR 1998 has been calculated and paid in accordance with Directive 2003/88/EC of the European
Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time.

 

		26.22	There are no loans to any current or former director or employee of the Company (or to any nominees or associates of such directors
or employees) made or arranged by the Company.

 

		26.23	In respect of each Employee and Worker, the Company has:

 

		(a)	performed all obligations and duties they are required to perform (and settled all outstanding claims), and

 

		(b)	maintained adequate, suitable and up-to-date records.

 

		26.24	No Employee is subject to a current disciplinary warning or procedure.

 

		26.25	There are no shares, securities or interests in them held by or for any current, former or proposed employee or director of the Company.

 

		27.	Retirement benefits

 

		27.1	The Company has complied with their automatic enrolment obligations as required by the Pensions Act 2008 (PA 2008) and associated
legislation. No notices, fines, or other sanctions have been issued by the Pensions Regulator and no instances of non-compliance with
the automatic enrolment obligations have been notified to the Pension Regulator in respect of the Company. No Employee is a member of
a pension scheme in respect of which the Company complied with its automatic enrolment obligations.

 

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		28.	Property

 

		28.1	The definitions in this paragraph apply in this agreement.

 

Lease: the lease under which the
Property is held.

 

Property: the leasehold property
set out in  Schedule 8.

 

Previously-owned Land and Buildings:
any land and buildings that have, at any time before the date of this agreement, been owned (under whatever tenure), occupied or used
by the Company, but which are no longer owned, occupied or used by the Company.

 

		28.2	The particulars of the Property set out in  Schedule 8 are true, complete and accurate.

 

		28.3	The Property is actively used by the Company in connection with the Business.

 

		28.4	The Property is the only land and buildings owned, used or occupied by the Company.

 

		28.5	The Company does not have any right of ownership, right of use, option, right of first refusal or contractual obligation to purchase,
or any other legal or equitable right, estate or interest in, or affecting, any land or buildings other than the Property.

 

		28.6	Neither the Company nor any other company that has at any time been a subsidiary of the Company has any actual or contingent liability
in respect of Previously-owned Land and Buildings.

 

		28.7	Neither the Company nor any other company that has at any time been a subsidiary of the Company has given any guarantee or indemnity
for any liability relating to the Property or any Previously-owned Land and Buildings or any other land or buildings.

 

		28.8	All written replies to written enquiries given by or on behalf of the Seller or the Company in relation to the Property in response
to any written enquiries raised by or on behalf of the Buyer in relation to the Property were complete and accurate at the date they were
given, and would still be complete and accurate if the replies were instead being given on the date of this agreement.

 

		28.9	All rent and all other sums payable under the Lease (Lease Sums) have been paid as and when they became due and no Lease Sums
have been:

 

		(a)	set off or withheld; or

 

		(b)	commuted, waived or paid in advance of the due date for payment.

 

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		28.10	The Property is not subject to the payment of any outgoings other than rent and all outgoings have been paid when due and none is
disputed.

 

Part 2 Tax Warranties

 

		1.	General

 

		1.1	All notices, returns (including any land transaction returns), reports, accounts, computations, statements, assessments, claims, disclaimers,
elections and registrations and any other necessary information which have, or should have, been submitted by the Company to any Tax Authority
for the purposes of Tax have been made on a proper basis, were submitted within applicable time limits and were accurate and complete
in all material respects. None of the above is, or is likely to be, the subject of any material dispute with any Tax Authority.

 

		1.2	All Tax (whether of the UK or elsewhere), for which the Company has been liable to account, has been duly paid (insofar as such Tax
ought to have been paid) and no penalties, fines, surcharges or interest have been incurred.

 

		1.3	The Company maintains complete and accurate records, invoices and other information in relation to Tax, that meet all legal requirements
and enable the tax liabilities of the Company to be calculated accurately in all material respects.

 

		1.4	All Tax and national insurance contributions deductible under the PAYE system, and/or any other Tax Statute have, so far as required
to be deducted, been deducted from all payments made (or treated as made) by the Company. All amounts due to be paid to the relevant Tax
Authority on or before the date of this agreement have been so paid.

 

		1.5	The Company is not, or will become liable, to make to any person (including any Tax Authority) any payment in respect of any liability
to Tax which is primarily or directly chargeable against, or attributable to, any other person (other than the Company).

 

		1.6	The Accounts make full provision or reserve within generally accepted accounting principles for all Tax for which the Company is accountable
at that date. Proper provision has been made and shown in the Accounts for deferred tax in accordance with generally accepted accounting
principles.

 

		2.	Chargeable gains

 

The book value shown in, or adopted for the purposes, of
the Accounts as the value of each of the assets of the Company, on the disposal of which a chargeable gain or allowable loss could arise,
does not exceed the amount which on a disposal of such asset at the date of this agreement would be deductible, in each case, disregarding
any statutory right to claim any allowance or relief other than amounts deductible under section 38 of TCGA 1992.

 

		3.	Capital losses

 

Details of all capital losses available for carry-forward
by the Company are set out in the Disclosure Letter.

 

		4.	Capital allowances

 

The Company has not claimed first-year tax credits within
the meaning of Schedule A1 of the Capital Allowances Act 2001 (CAA 2001), business renovation allowances under Part 3A of CAA 2001,
flat conversion allowances under Part 4A of CAA 2001 or owns any asset, which if disposed of at the date of this agreement for its book
value as shown in, or adopted for the purpose of, the Accounts, or for the value of consideration actually given for it on its acquisition
(if such asset were acquired since the Accounts Date), would give rise to a balancing charge under CAA 2001 (or any other legislation
relating to capital allowances) or other clawback of relief.

 

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		5.	Distributions and other payments

 

		5.1	No distribution or deemed distribution, within the meaning of section 1000 or sections 1022-1027 of CTA 2010, has been made (or will
be deemed to have been made) by the Company, except dividends shown in their audited accounts, and the Company is not bound to make any
such distribution.

 

		5.2	The Company has not, within the period of seven years preceding the date of this agreement, been engaged in, nor been a party to,
any of the transactions set out in Chapter 5 of Part 23 of CTA 2010 (demergers).

 

		6.	Loan relationships

 

All financing costs, including interest, discounts and premiums
payable by the Company in respect of its loan relationships within the meaning of section 302 of CTA 2009 are eligible to be brought into
account by the Company as a debit for the purposes of Part 5 of CTA 2009 at the time, and to the extent that such debits are recognised
in the statutory accounts of the Company.

 

		7.	Close companies

 

Any loans or advances made, or agreed to be made, by the
Company within sections 455, 459 and 460 of CTA 2010 have been disclosed in the Disclosure Letter. The Company has not released or written
off, or agreed to release or write off, the whole or any part of any such loans or advances.

 

		8.	Group relief

 

The Company is not, or will be, obliged to make or be entitled
to receive any payment for the surrender of group relief as defined in section 183 of CTA 2010 in respect of any period ending on or before
Completion, or any payment for the surrender of the benefit of an amount of advance corporation tax or any repayment of such a payment.

 

		9.	Groups of companies

 

		9.1	The Company has not entered into, or agreed to enter into, an election pursuant to section 171A of TCGA 1992, paragraph 16 of Schedule
26 to the Finance Act 2008, or section 792 of CTA 2009 (or paragraph 66 of Schedule 29 to the Finance Act 2002).

 

		9.2	Neither the execution nor completion of this agreement, nor any other event since the Accounts Date, will result in any chargeable
asset being deemed to have been disposed of and re-acquired by the Company for Tax purposes or to the clawback of any relief previously
given.

 

		9.3	The Company has never been party to any arrangements pursuant to sections 59F of TMA 1970 (group payment arrangements).

 

		10.	Intangible assets

 

		10.1	The Company does not hold or has ever held any right to which Part 8A of CTA 2010 applies or an exclusive licence in respect of such
right within section 357BA of CTA 2010.

 

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		11.	Company residence and overseas interests

 

		11.1	The Company has, throughout the past seven years, been resident in the UK for corporation tax purposes and have not, at any time in
the past seven years, been treated as resident in any other jurisdiction for the purposes of any double taxation arrangements or for any
other tax purposes.

 

		11.2	The Company does not hold, or within the last seven years has held, shares in a company which is not resident in the UK, a material
interest in an offshore fund, or a permanent establishment outside the UK.

 

		12.	Transfer pricing

 

All transactions or arrangements made by the Company have
been made on fully arm’s length terms. There are no circumstances in which Part 4 of TIOPA 2010 or any other rule or provision could apply
causing any Tax Authority to make an adjustment to the terms on which such transaction or arrangement is treated as being made for Tax
purposes.

 

		13.	Anti-avoidance

 

		13.1	The Company has not been a party to, nor has been otherwise involved in, any transaction, scheme or arrangement containing steps or
stages that have no commercial purpose or designed wholly or mainly for the purpose of avoiding or deferring Tax or reducing a liability
to Tax or amounts to be accounted for under PAYE.

 

		14.	Inheritance tax

 

		14.1	No asset owned by the Company, nor the Sale Shares, is subject to any Inland Revenue charge as mentioned in sections 237 and 238 of
IHTA 1984 or is liable to be subject to any sale, mortgage or charge by virtue of section 212(1) of IHTA 1984.

 

		15.	Value Added Tax

 

		15.1	The Company is a taxable person and is registered for the purposes of VAT with quarterly prescribed accounting periods.

 

		15.2	The Company is not or has been in the period of six years ending with the date of Completion, a member of a group of companies for
the purposes of section 43 of VATA 1994.

 

		15.3	All supplies made by the Company are taxable supplies. The Company has not been, or will be, denied full credit for all input tax
paid or suffered by it.

 

		15.4	The Company does not own any assets which are capital items subject to the capital goods scheme under Part XV of the VAT Regulations
1995, nor has exercised any option to tax under Part 1 of Schedule 10 to VATA 1994.

 

		16.	Stamp duty, stamp duty land tax, land transaction tax and stamp duty reserve tax

 

		16.1	Any document that may be necessary or desirable in proving the title of the Company to any asset which is owned by the Company at
the date of this agreement, is duly stamped for stamp duty purposes. No such documents which are outside the UK would attract stamp duty
if they were brought into the UK.

 

		16.2	Neither entering into this agreement nor Completion will result in the withdrawal of a stamp duty, stamp duty land tax or land transaction
tax relief granted on or before Completion which will affect the Company.

 

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Schedule 5 Tax Covenant

 

		1.	Interpretation

 

		1.1	The following definitions and rules of interpretation apply in this Tax Covenant.

 

Accounts Relief:

 

		a)	any Relief (including the right to a repayment of Tax) shown
as an asset in the Accounts; and

 

		b)	any Relief taken into account in computing (and so reducing
or eliminating) any provision for deferred Tax in the Accounts.

 

Buyer’s Relief:

 

		a)	any Accounts Relief;

 

		b)	any Relief arising in connection with any Event occurring after
Completion; and

 

		c)	any Relief, whenever arising, of the Buyer or any member of
the Buyer’s Tax Group other than the Company.

 

Buyer’s Tax Group: the Buyer and
any other company or companies that are, from time to time, treated as members of the same Group as, or otherwise connected or associated
in any way with, the Buyer for any Tax purpose.

 

Dispute: any dispute, appeal, negotiations
or other proceedings in connection with a Tax Claim.

 

Event: includes (without limitation),
the expiry of a period of time, the Company becoming or ceasing to be associated with any other person for any Tax purpose or ceasing
to be, or becoming, resident in any country for any Tax purpose, the death, winding up or dissolution of any person, the earning, receipt
or accrual for any Tax purpose of any income, profit or gains, the incurring of any loss or expenditure, and any transaction (including
the execution and completion of this agreement), event, act or omission whatsoever, and any reference to an Event occurring on or before
a particular date shall include Events that, for Tax purposes, are deemed to have, or are treated or regarded as having, occurred on or
before that date.

 

Group Relief: any or all of the
following:

 

		a)	relief surrendered or claimed under Part 5 of CTA 2010 (Chapter
IV of Part X of the Income and Corporation Taxes Act 1988);

 

		b)	advance corporation tax capable of being surrendered or claimed
under regulation 13 of the Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999 (SI 1999/358);

 

		c)	a Tax refund capable of being surrendered or claimed under section
963 of the CTA 2010 (section 102 of the Finance Act 1989);

 

		d)	the notional transfer of an asset or reallocation of a gain
or loss under sections 171A or 179A of TCGA 1992 and the notional reallocation of a gain under section 792 of the CTA 2009 (paragraph
66 of Schedule 29 to the Finance Act 2002 for accounting periods ending before 1 April 2009); and

 

		e)	any other Relief available between members of a group for Tax
purposes.

 

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Liability for Tax:

 

		a)	any liability of the Company to make an actual payment of, or
in respect of, or on account of, Tax whether or not the same is primarily payable by the Company and whether or not the Company has,
or may have, any right of reimbursement against any other person, in which case the amount of the Liability for Tax will be the amount
of the actual payment;

 

		b)	the Loss, otherwise than by use or setting off, of any Accounts
Relief, in which case, the amount of the Liability for Tax will be the amount of Tax that would (on the basis of Tax rates current at
the date of that Loss) have been saved but for that Loss, assuming for this purpose that the Company had sufficient profits or was otherwise
in a position to use the Relief, or where the Relief is the right to repayment of Tax or to a payment in respect of Tax, the amount of
the repayment or payment; and

 

		c)	the use or setting off of any Buyer’s Relief where, but for
that set off or use, the Company would have had a liability to make a payment of or in respect of Tax for which the Buyer would have
been able to make a claim against the Seller under this Tax Covenant, in which case, the amount of the Liability for Tax will be the
amount of Tax for which the Seller would have been liable but for the setting off or use.

 

Loss: includes absence, failure
to obtain, non-existence, non-availability, reduction, modification, loss, counteraction, nullification, utilisation, disallowance, withdrawal
or clawback for whatever reason.

 

Overprovision: the amount by which
any provision for tax (other than deferred tax) in the Accounts is overstated, except where that overstatement arises due to:

 

		a)	a change in law;

 

		b)	a change in the accounting bases on which the Company values
its assets; or

 

		c)	a voluntary act or omission of the Buyer,

 

that, in each case, occurs after Completion.

 

Relief: includes any loss, relief,
allowance, credit, exemption or set off for Tax or any deduction in computing income, profits or gains for the purposes of Tax and any
right to a repayment of Tax or to a payment in respect of Tax.

 

Saving:
the reduction or elimination of any liability of the Company to make an actual payment of corporation tax (at a time when the Company
is a member of the Buyer’s Tax Group) for which the Seller would not have been liable under paragraph 2,
by the use of any Relief arising wholly as a result of a Liability for Tax for which the Seller has made a payment under paragraph 2
of this Tax Covenant.

 

Tax: all forms of tax and statutory,
governmental, state, federal, provincial, local, government or municipal charges, duties, imposts, contributions, levies, withholdings
or liabilities wherever chargeable and whether of the UK or any other jurisdiction (including, for the avoidance of doubt, National Insurance
contributions in the UK and corresponding obligations elsewhere) and any penalty, fine, surcharge, interest, charges or costs relating
to it (including interest and penalties arising from the failure of the Company to make adequate instalment payments under the Corporation
Tax (Instalments Payments) Regulations 1998 (SI 1998/3175) in any period ending on or before Completion).

 

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Tax Authority: any government, state
or municipality or any local, state, federal or other fiscal, revenue, customs or excise authority, body or official competent to impose,
administer, levy, assess or collect Tax in the UK or elsewhere.

 

Tax Claim: any assessment, notice,
demand, letter or other document issued or action taken by or on behalf of any Tax Authority, self-assessment or other occurrence from
which it appears that the Company or the Buyer is or may be subject to a Liability for Tax or other liability for which the Seller is
or may be liable under this Tax Covenant.

 

Tax Statute: any directive, statute,
enactment, law or regulation wherever enacted or issued, coming into force or entered into providing for or imposing any Tax, including
orders, regulations, instruments, bye-laws or other subordinate legislation made under the relevant statute or statutory provision and
any directive, statute, enactment, law, order, regulation or provision that amends, extends, consolidates or replaces the same or that
was amended, extended, consolidated or replaced by the same.

 

VAT: value added tax or equivalent
tax in any other jurisdiction.

 

		1.2	References to gross receipts, income, profits or gains earned, accrued or received shall include any gross receipts, income, profits
or gains deemed under the relevant Tax Statute to have been, or treated or regarded as, earned, accrued or received.

 

		1.3	References to a repayment of Tax shall include any repayment supplement or interest in respect of it.

 

		1.4	Any reference to something occurring in the ordinary course of business shall not include:

 

		(a)	anything that involves, or leads directly or indirectly to, any liability of the Company to Tax that is (or but for an election would
have been) the primary liability of, or properly attributable to, or due from another person (other than a member of the Buyer’s Tax Group);

 

		(b)	anything that relates to or involves the acquisition or disposal (or deemed acquisition or disposal) of an asset or the supply of
services (including the lending of money, or the hiring or licensing of tangible or intangible property) in a transaction that is not
entered into on arm’s length terms;

 

		(c)	anything that relates to or involves the making of a distribution or deemed distribution for Tax purposes, the creation, cancellation
or reorganisation of share or loan capital, the creation, cancellation or repayment of any intra-group debt or the Company becoming or
ceasing to be, or being treated as ceasing to be, a member of a group of companies, or becoming or ceasing to be associated or connected
with any other company for any Tax purposes;

 

		(d)	anything that relates to any scheme, transaction or arrangement that gives rise, or may give rise, to a Liability for Tax under any
anti-avoidance legislation, that is designed partly or wholly (or contains steps or stages designed partly or wholly) to avoid, reduce
or defer a Liability for Tax, or that gives rise to a duty to notify a Tax Authority under any legislation introduced to counter tax avoidance;

 

		(e)	anything that gives rise to a Liability for Tax on deemed (as opposed to actual) profits or if and to the extent that it gives rise
to a Liability for Tax on an amount of profits greater than the difference between the sale proceeds of an asset and the amount attributable
to that asset in the Accounts or, in the case of an asset acquired since the Accounts Date, the cost of that asset;

 

		(f)	anything that involves, or leads directly or indirectly to, a change of residence of the Company for Tax purposes; or

 

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		(g)	any liability arising as a result of the failure to properly deduct or account for Tax, or to comply with the provisions of any Tax
legislation or subordinate legislation (including regulations) and any act, omission or transaction that gives rise to any fine, penalty,
surcharge, interest or other imposition relating to any Tax.

 

		1.5	Unless the contrary intention appears, words and expressions defined in this agreement have the same meaning in this Tax Covenant
and any provisions in this agreement concerning matters of construction or interpretation also apply in this Tax Covenant.

 

		1.6	Any stamp duty charged on any document (or in the case of a document that is outside the UK, any stamp duty that would be charged
on the document if it were brought into the UK) that is necessary to establish the title of the Company to any asset, and any interest,
fine or penalty relating to the stamp duty, shall be deemed to be a liability of the Company to make an actual payment of Tax because
of an Event arising on the last day on which it would have been necessary to pay the stamp duty to avoid any liability to interest or
penalties arising on it.

 

		1.7	References to the due date for payment of any Tax shall mean the last day on which that Tax may, by law, be paid without incurring
any penalty, fine, surcharge, interest, charges, costs or other similar imposition (after taking into account any postponement of the
date that was obtained for the payment of that Tax).

 

		2.	Covenant

 

Subject to the provisions of this Tax Covenant,
the Seller covenants to pay to the Buyer (for the Buyer to forward on to the relevant Tax Authority) an amount equal to any:

 

		2.1	liability for Tax resulting from, or by reference to, any Event occurring on or before Completion or in respect of any gross receipts,
income, profits or gains earned, accrued or received by the Company on or before Completion;

 

		2.2	liability for Tax, including liability for payments in respect of Tax that arises solely due to the relationship for Tax purposes
before Completion of the Company with any person other than a member of the Buyer’s Tax Group, whether arising before or after Completion;

 

		2.3	Liability for Tax that arises due to any Event that occurs after Completion under a legally binding obligation (whether or not conditional)
entered into by the Company on or before Completion otherwise than in the ordinary course of business;

 

		2.4	liability for Tax that is a liability of the Company to account for income tax or National Insurance contributions (NICs), whether
arising before or after Completion, in respect of the grant, exercise, surrender, exchange or other disposal of an option or other right
to acquire securities, or in respect of any acquisition, holding, variation or disposal of employment-related securities (as defined for
the purposes of Part 7 of ITEPA 2003) where the acquisition of the security or the grant of the option, or other right to acquire the
security occurred on or before Completion;

 

		2.5	liability for Tax under Part 7A of ITEPA 2003, whether arising before or after Completion, including any liability arising as a consequence
of any payments or loans made to, any assets made available or transferred to, or any assets earmarked (however informally) for the benefit
of any employee or former employee of the Company, or for the benefit of any relevant person, by an employee benefit trust (EBT) or another
third party where the arrangement giving rise to the charge was entered into at a time when the third party was acting on the instructions
of, or for the benefit of, the Seller or an associate of the Seller;

 

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		2.6	liability for Tax being a liability for inheritance tax that:

 

		(a)	is a liability of the Company and arises because of a transfer of value occurring (or being deemed to occur) on or before Completion
(whether or not in conjunction with the death of any person whenever it happens);

 

		(b)	gives rise, at Completion, to a charge on, or a power to sell, mortgage or charge, any of the Sale Shares or assets of the Company;
or

 

		(c)	gives rise after Completion to a charge on, or a power to sell, mortgage or charge, any of the Sale Shares or assets of the Company
because of the death of any person within seven years of a transfer of value that occurred before Completion;

 

and in determining for the purposes of this paragraph  2.6
whether a charge on, or power to sell, mortgage or charge any of the shares or assets of the Company exists at any time, the fact that
the inheritance tax is not yet payable, or may be paid by instalments, shall be disregarded, and the inheritance tax shall be treated
as becoming due, and a charge or power to sell, mortgage or charge as arising, on the date of the transfer of value or other date or event
on or in respect of which it becomes payable or arises, and the provisions of section 213 of the IHTA 1984 shall not apply;

 

		2.7	liability of the Company to make a payment, or to make a repayment of the whole or any part of any payment, to any person (other than
a member of the Buyer’s Tax Group) in respect of Group Relief under any arrangement or agreement entered into by the Company on
or before Completion save where and to the extent that the payment or repayment is reflected in the Accounts;

 

		2.8	loss, in whole or in part, of the right of the Company to receive any payment (other than from a member of the Buyer’s Tax Group)
for Group Relief under any arrangement or agreement entered into on or before Completion where the payment was taken into account in the
Accounts; and

 

		2.9	costs and expenses (including legal costs on a full indemnity basis), properly incurred by the Buyer, the Company or any member of
the Buyer’s Tax Group in connection with any Liability for Tax or other liability in respect of which the Seller is liable under this
Schedule, any Tax Claim or taking or defending any action under this Schedule.

 

		3.	Payment date and interest

 

		3.1	Payment by the Seller in respect of any liability under this Schedule must be made in cleared and immediately available funds on:

 

		(a)	in the case of a Liability for Tax that involves an actual payment of or in respect of Tax, seven Business Days after the date on
which the Buyer serves notice on the Seller requesting payment provided the Buyer provides documentary evidence that there is a tax payment
due;

 

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		(b)	in the case of the loss of a right to repayment of Tax or a liability under paragraph  2.7,
paragraph  2.8 or paragraph 2.9 seven Business Days following the date on which the Buyer
serves notice on the Seller requesting payment;

 

		(c)	in a case that involves the loss of a Relief (other than a right to repayment of Tax), the later of seven Business Days after the
date on which the Buyer serves notice on the Seller requesting payment and the last date on which the Tax is or would have been required
to be paid to the relevant Tax Authority in respect of the earlier of:

 

		(i)	the period in which the Loss of the Relief gives rise to an actual liability to pay Tax; or

 

		(ii)	the period in which the Loss of the Relief occurs (assuming for this purpose that the Company had sufficient profits or was otherwise
in a position to use the Relief);

 

		(d)	in a case that falls within paragraph (c) of the definition of Liability for Tax, the date on which the Tax saved by the Company is
or would have been required to be paid to the relevant Tax Authority.

 

		3.2	If the Liability for Tax is a liability to corporation tax payable by instalments under the Corporation Tax (Instalment Payments)
Regulations 1998 (SI 1998/3175):

 

		(a)	the notice served by the Buyer on the Seller under paragraph  3.1 shall state the
amount of the liability due for payment on each instalment date for the accounting period in which the Liability for Tax arises; and

 

		(b)	the due dates for payment of the Tax in paragraph  3.1(a) to paragraph  3.1(d)
shall be the due dates for payment of each of the instalments.

 

		3.3	Any dispute about the amount stated in any notice served on the Seller under paragraph  3.1(b)
to paragraph  3.1(d) shall be determined by the auditors of the Company for the time being,
acting as experts and not as arbitrators (the Seller and the Buyer sharing equally the costs of that determination).

 

		3.4	If any amount due from the Seller under this Tax Covenant is not paid on
the date specified in paragraph  3.1, then, except where and to the extent that the Seller’s
liability under paragraph 2 includes interest and penalties to compensate
the Buyer for the late payment, the amount due shall bear interest (to accrue on a daily basis and before as well as after any judgment)
at the rate of 4% a year over the base rate from time to time of Barclays Bank PLC or (in the absence of that) at any similar rate as
the Buyer shall select from the day following the due date up to, and including, the day of actual payment of those sums, any interest
to be compounded quarterly.

 

		4.	Exclusions

 

		4.1	The covenant contained in paragraph 2 above
shall not cover any Liability for Tax if and to the extent that:

 

		(a)	specific provision or reserve (other than a provision for deferred tax) for the liability is made or reflected in the Accounts;

 

		(b)	the Liability for Tax was paid on or before the Accounts Date and the Accounts reflected that payment;

 

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		(c)	it arises as a result of a transaction in the ordinary course of business of the Company between the Accounts Date and Completion;

 

		(d)	it arises or is increased only as a result of any change in the law or rates of Tax (other than a change targeted specifically at
countering a tax avoidance scheme) announced and coming into force after Completion, or the withdrawal of any extra-statutory concession
previously made by a Tax Authority (whether or not the change is retrospective in whole or in part), provided that this paragraph  4.1(d)
will not apply to any payment made under paragraph  11;

 

		(e)	it would not have arisen but for a change in accounting policies (including a change in accounting reference date) or the accounting
bases on which the Company values its assets (other than a change made to comply with UK GAAP) after Completion.

 

		4.2	For the purposes of paragraph  4.1(h), an act will not be regarded as voluntary if
undertaken under a legally binding obligation entered into by the Company on or before Completion or imposed on the Company by any legislation
whether coming into force before, on or after Completion, or to avoid or mitigate a penalty imposable by any legislation, or if carried
out at the written request of the Seller.

 

		5.	Limitations

 

		5.1	The liability of the Seller under paragraph 2 will
terminate on:

 

		(a)	seventh anniversary of Completion, for any claim under paragraph 2
for a liability arising from a loss of Tax caused fraudulently or deliberately
by the Company or any related person, including a liability arising from an arrangement caught by Part 7A of ITEPA 2003 or from the failure
of the Company to comply with an obligation under sections 309, 310 or 313 of the Finance Act 2004 to disclose information about a tax
avoidance scheme to which it was a party; or

 

		(b)	the seventh anniversary of Completion (in any other case),

 

except
for any claim under paragraph 2 of which written notice is given to the
Seller before that relevant date containing, if and to the extent reasonably practicable, a description of that claim and the estimated
total amount of the claim.

 

		6.	Overprovisions

 

		6.1	If, on or before the seventh anniversary of Completion, the auditors for the time being of the Company determine (at the request and
expense of the Seller) that there is an Overprovision, then:

 

		(a)	the amount of any Overprovision shall first be set off against any payment then due from the Seller under this Tax Covenant;

 

		(b)	if there is an excess, a refund shall be made to the Seller of any previous payment or payments made by the Seller under this Tax
Covenant (and not previously refunded under this Tax Covenant) up to the amount of that excess; and

 

		(c)	if the excess referred to in paragraph  6.1(b) is not exhausted, the remainder of
that excess will be carried forward and set off against any future payment or payments that become due from the Seller under this Tax
Covenant.

 

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		6.2	After the Company’s auditors have made a determination under paragraph  6.1, the Seller
or the Buyer may, at any time before the seventh anniversary of Completion, request the auditors for the time being of the Company to
review and, if necessary and as appropriate, amend the original determination (at the expense of the party requesting the review, or where
a payment becomes due under this paragraph  6.2, at the expense of the party required
to make that payment) and an adjusting payment equal to the amount of any disparity between the original and revised determinations shall
be made by or to the Seller as soon as reasonably practicable.

 

		7.	Savings

 

		7.1	If, on or before the seventh anniversary of Completion, the Company’s auditors for the time being determine (at the request and expense
of the Seller) that a Saving has arisen, the Buyer shall, as soon as reasonably practicable, repay to the Seller, after deduction of any
amounts then due by the Seller, the lesser of:

 

		(a)	the amount of the Saving (as determined by the auditors) less any costs incurred by the Buyer, the Company; and

 

		(b)	the amount paid by the Seller under paragraph 2 for
the Liability for Tax which gave rise to the Saving less any part of that amount previously repaid to the Seller under any provision of
this Tax Covenant or otherwise.

 

		7.2	After the Company’s auditors have made a determination under paragraph  7.1, the Seller
or the Buyer may, at any time before the seventh anniversary of Completion, request the auditors for the time being of the Company to
review and, if necessary and as appropriate, amend the original determination (at the expense of the party requesting the review, or where
a payment becomes due under this paragraph  7.2, at the expense of the party required
to make that payment) and an adjusting payment equal to the amount of any disparity between the original and revised determinations shall
be made by or to the Seller as soon as reasonably practicable.

 

		8.	Recovery from third parties

 

		8.1	Where the Seller has paid an amount under paragraph 2 for
any Liability for Tax and the Buyer or the Company is, or becomes, entitled to recover from some other person that is not the Buyer or
the Company or any other company in the Buyer’s Tax Group, any amount for any Liability for Tax, the Buyer shall or shall procure that
the Company shall:

 

		(a)	notify the Seller of its entitlement as soon as reasonably practicable; and

 

		(b)	if required by the Seller and, subject to the Buyer and the Company being secured and indemnified by the Seller against any Tax that
may be suffered on receipt of that amount and any costs and expenses incurred in recovering that amount, take, or procure that the Company
takes, all reasonable steps to enforce that recovery against the person in question (keeping the Seller fully informed of the progress
of any action taken) provided that the Buyer shall not be required to take any action under this paragraph  8.1
against:

 

		(i)	a Tax Authority; or

 

		(ii)	a person who gave Tax advice to the Company on or before Completion,

 

that, in the Buyer’s reasonable opinion, is likely to harm
its or the Company’s commercial or employment relationship (potential or actual) with that or any other person.

 

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		8.2	If the Buyer or the Company recovers any amount referred to in paragraph  8.1, the
Buyer shall account to the Seller for the lesser of:

 

		(a)	any amount recovered (including any related interest or related repayment supplement) less any Tax suffered in respect of that amount
and any costs and expenses incurred in recovering that amount (except where and to the extent that amount has already been made good by
the Seller under paragraph  8.1(b)); and

 

		(b)	the amount paid by the Seller under paragraph 2 in
respect of the Liability for Tax in question.

 

		9.	Corporation tax returns

 

		9.1	The Buyer will have exclusive conduct of all Tax affairs of the Company after Completion.

 

		9.2	The Seller or its duly authorised agent shall, at the Seller’s cost and expense, prepare all documents and shall have conduct of all
matters (including correspondence) relating to the corporation tax returns and computations of the Company for all accounting periods
ended on or before Completion provided that the Seller shall not, without the prior written consent of the Buyer (not to be unreasonably
withheld or delayed), transmit any communication (written or otherwise) to the relevant Tax Authority or agree any matter with the relevant
Tax Authority.

 

		9.3	The Seller shall take all reasonable steps to ensure that the corporation tax returns and computations of the Company for all accounting
periods ended on or before Completion are prepared and submitted to the relevant Tax Authority as soon as possible.

 

		9.4	For the avoidance of doubt:

 

		(a)	where any matter gives rise to a Tax Claim, the provisions of paragraph  10
shall take precedence over the provisions of this paragraph 9; and

 

		(b)	the provisions of this paragraph 9 shall
not prejudice the rights of the Buyer to make a claim under this Tax Covenant for any Liability for Tax.

 

		10.	Conduct of Tax Claims

 

		10.1	If the Seller becomes aware of a Tax Claim, he shall notify the Buyer in writing as soon as reasonably practicable.

 

		10.2	Subject to paragraph  10.3, if the Seller indemnifies and secures the Buyer, the Company
to the Buyer’s reasonable satisfaction against all liabilities, costs, damages or expenses that may be incurred (including any additional
Liability for Tax), the Buyer shall take and shall procure that the Company shall take any action that the Seller may reasonably request
by notice in writing given to the Buyer to avoid, dispute, defend, resist, appeal or request an internal HMRC review, or compromise any
Tax Claim.

 

		10.3	Neither the Buyer nor the Company shall be obliged to appeal or procure an appeal against any assessment to Tax if the Buyer, having
given the Seller written notice of that assessment, does not receive written instructions to do so from the Seller within ten Business
Days.

 

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		10.4	Without prejudice to the liability of the Seller under this Schedule, the Buyer shall not be obliged to take, or procure the taking
of, any action under paragraph  10.2 in respect of any Tax Claim:

 

		(a)	if the Seller does not request the Buyer to take any action under paragraph  10.2
or fails to indemnify and secure the Buyer or the Company to the Buyer’s reasonable satisfaction in a reasonable period of time (starting
with the date of the notice given to the Seller) considering the nature of the Tax Claim and the existence of any time limit for avoiding,
disputing, defending, resisting, appealing, seeking a review or compromising that Tax Claim, and that period will not, in any event, exceed
ten Business Days;

 

		(b)	where the Seller (or the Company before Completion) has been engaged in fraudulent conduct or deliberate default relating to the Liability
for Tax that is the subject matter of the Dispute; or

 

		(c)	if the Dispute involves an appeal against a determination by the Tax Chamber of the First-tier Tribunal or higher tribunal, unless
the Seller has obtained the opinion of Tax counsel of at least five years’ standing that the appeal has a reasonable prospect of success.

 

		10.5	If paragraph  10.2 does not apply by virtue of any provision in paragraph  10.4,
the Buyer, or the Company shall have the absolute conduct of the Dispute (without prejudice to its rights under this Tax Covenant) and
shall be free to pay or settle the Tax Claim on any terms that the Buyer or the Company in its absolute discretion considers fit.

 

		10.6	Neither the Buyer nor the Company shall be liable to the Seller for non-compliance with any of the provisions of this paragraph  10
if the Buyer or the Company has acted in good faith in accordance with the instructions of the Seller.

 

		11.	Grossing up

 

		11.1	All amounts due under this Tax Covenant from the Seller to the Buyer shall be paid in full, without any set-off, counterclaim, deduction
or withholding (other than any deduction or withholding of tax required by law). If any deductions or withholdings are required by law
to be made from any of the sums payable under this Tax Covenant, the Seller shall provide any evidence of the relevant withholding as
the Buyer may reasonably require and shall pay to the Buyer any sum as will, after the deduction or withholding is made, leave the Buyer
with the same amount as it would have been entitled to receive without that deduction or withholding.

 

		11.2	If any sum payable by the Seller to the Buyer under this agreement is subject to Tax in the hands of the Buyer, the Seller shall pay
any additional amount required to ensure that the net amount received by the Buyer shall be the amount that the Buyer would have received
if the payment was not subject to Tax.

 

		11.3	If the Buyer would, but for the availability of a Buyer’s Relief, incur a Tax liability falling within paragraph  11.2,
it shall be deemed for the purposes of that paragraph  11.2 to have incurred and paid
that liability.

 

		12.	General

 

		12.1	All payments made by the Seller to the Buyer or by the Buyer to the Seller in accordance with this Tax Covenant will be treated, if
possible, as an adjustment to the Purchase Price for the Sale Shares.

 

		12.2	The Buyer shall in its absolute discretion decide whether to make a claim under this Schedule or the Tax Warranties or both.

 

    70

     

    

 

	Signed by RAHIM SHAH	 	...........................................
	 	 	 
	Signed by Xiaochen Zhao	 	...........................................
	for and on behalf of FTFT UK LIMITED	 	Director

 

 

71

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