Document:

Exhibit 10.1

 

 

  

 

 

 

 

 

 

 

 

INTEREST PURCHASE AGREEMENT 

 

AMONG

 

LOGICMARK, LLC

  

THE
MEMBERS OF LOGICMARK, LLC

  

AND

 

NXt-ID,
inc.

 

 

 

 

May 17, 2016

 

 

 

  

 

 

 

 

 

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	1.	DEFINITIONS	1
	 	 	 
	2.	BASIC TRANSACTION	7
	(a)	Purchase and Sale of Interests	7
	(b)	Unadjusted Purchase Price; Signing Shares	7
	(c)	Closing	8
	(d)	Deliveries at Closing	8
	(e)	Determination of Closing Date Balance Sheet	9
	(f)	Post-Closing Working Capital Adjustment	10
	(g)	Intentionally Omitted	10
	(h)	Earn-Out Payments	10
	(i)	Allocation	12
	 	 	 
	3.	LOGICMARK’S REPRESENTATIONS AND WARRANTIES	13
	(a)	Organization, Qualification, and Corporate Power	13
	(b)	Authorization of Transaction	13
	(c)	Non-Contravention	13
	(d)	Brokers’ Fees	13
	(e)	Title to Assets	14
	(f)	Capitalization; Subsidiaries	14
	(g)	Financial Statements	14
	(h)	Events Subsequent to Most Recent Fiscal Month End	14
	(i)	Legal Compliance	15
	(j)	Tax Matters	15
	(k)	Real Property	16
	(l)	Intellectual Property	16
	(m)	Inventory	17
	(n)	Contracts	17
	(o)	Powers of Attorney	18
	(p)	Litigation	18
	(q)	Employees	19
	(r)	Employee Benefits	19
	(s)	Environmental Matters	19
	(t)	Certain Business Relationships with Logicmark	20
	(u)	Customers and Suppliers	20
	(v)	Disclaimer of Other Representations and Warranties	20
	 	 	 
	4.	SELLERS’ REPRESENTATIONS AND WARRANTIES	20
	(a)	Authorization of Transaction	20
	(b)	Non-Contravention	21
	(c)	Brokers’ Fees	21
	(d)	Title to Interests	21
	(e)	Disclaimer of Other Representations and Warranties	21

 

     

     

    

 

	5.	BUYER’S REPRESENTATIONS AND WARRANTIES	22
	(a)	Organization of Buyer	22
	(b)	Authorization of Transaction	22
	(c)	Non-Contravention	22
	(d)	Brokers’ Fees	22
	(e)	Investment Purpose	22
	(f)	Filings, Consents and Approvals	22
	(g)	Issuance of Shares	22
	 	 	 
	6.	POST-CLOSING COVENANTS	23
	(a)	Pre-Closing Covenants	23
	(b)	Further Assurances	25
	(c)	Restrictive Covenants	25
	(d)	Confidentiality	26
	(e)	Employee Matters	26
	(f)	Inspection of Records	27
	(g)	Tax Matters	27
	(h)	Release	28
	(i)	Indemnification of Managers and Officers	28
	(j)	Special Contract Matters	29
	 	 	 
	7.	CONDITIONS TO OBLIGATION TO CLOSE	30
	(a)	Conditions to Buyer’s Obligation	30
	(b)	Conditions to Seller’s Obligation	31
	 	 	 
	8.	REMEDIES FOR BREACHES OF THIS AGREEMENT	32
	(a)	Survival of Representations and Warranties	32
	(b)	Indemnification Provisions for Buyer’s Benefit	33
	(c)	Indemnification Provisions for Seller’s Benefit	34
	(d)	Matters Involving Third Parties	34
	(e)	Determination of Adverse Consequences	35
	(f)	Exclusive Remedy	36
	(g)	Recoupment Against Escrow Agreement	36
	(h)	Purchase Price Adjustment	36
	 	 	 
	9.	MISCELLANEOUS	37
	(a)	Press Releases and Public Announcements	37
	(b)	No Third-Party Beneficiaries	37
	(c)	Entire Agreement	37
	(d)	Succession and Assignment	37
	(e)	Counterparts	37
	(f)	Headings	37
	(g)	Notices	38
	(h)	Governing Law	39

 

    	 	ii	 

     

    

 

	(i)	Amendments and Waivers	39
	(j)	Severability	39
	(k)	Expenses	39
	(l)	Construction	39
	(m)	Incorporation of Exhibits, Annexes, and Schedules	39
	(n)	Disclosure	40
	(o)	Submission to Jurisdiction	40
	(p)	Seller Representative	40
	(q)	Legal Representation	42
	(r)	Termination	42
	(s)	Break-Up Shares	43

 

	Exhibit A	–	Form of Escrow Agreement
	Exhibit B	–	Form of Warrant
	Exhibit C	–	Form of Limited Liability Company Interest Assignment
	Exhibit D	–	Calculation of Closing Date Net Working Capital
	Exhibit E	–	Employment Agreement
	Exhibit F	–	Consulting Agreement
	Annex I	–	Sellers’ Ownership of Interests and Pro Rata Share

 

Disclosure
Schedules

Schedule
6(c) – Restricted Sellers

Schedule
6(e) – Employee Matters

Schedule
7(a) – Buyer’s Required Consents

Schedule
7(b) – Sellers’ Required Consents

 

    	 	iii	 

     

    

 

INTEREST
PURCHASE AGREEMENT

 

This
INTEREST PURCHASE AGREEMENT (this “Agreement”) is entered into as of May 17, 2016, by and among NXT-ID, Inc.,
a Delaware corporation (“Buyer”), LOGICMARK, LLC, a Delaware limited liability company (“Logicmark”
or the “Company”), and each of LOGICMARK INVESTMENT PARTNERS, LLC, a Delaware limited liability company, GOTTLIEB
FAMILY, LLC, a Virginia limited liability company, BEN CORNETT, KEVIN O’CONNOR and GENERATION3 PARTNERS I, LLC, a Delaware
limited liability company (each, as a “Seller” and, together, the “Sellers”), and LOGICMARK
INVESTMENT PARTNERS, LLC, a Delaware limited liability company, as Seller Representative. Buyer, Logicmark and Sellers are referred
to collectively herein as the “Parties” and each, individually, as a “Party”.

 

RECITALS:

 

WHEREAS,
Logicmark is engaged in the business of manufacturing and selling a variety of emergency personal response devices (the “Business”);

 

WHEREAS,
Sellers own all of the issued and outstanding limited liability company membership interests of Logicmark (the “Interests”);
and

 

WHEREAS,
Sellers desire to sell and assign to Buyer the Interests, and Buyer desires to purchase the Interests, all on the terms and subject
to the conditions contained in this Agreement.

 

Now,
therefore, in consideration of the premises and
the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the
Parties agree as follows:

 

AGREEMENTS:

 

1.       Definitions.

 

“2016
Earn-Out Payment” has the meaning set forth in Section 2(h).

 

“2017
Earn-Out Payment” has the meaning set forth in Section 2(h).

 

“Acquisition
Proposal” has the meaning set forth in Section 6(a).

 

“Actual
Value” has the meaning set forth in Section 2(e).

 

“Adverse
Consequences” means all damages, dues, penalties, fines, costs, liabilities, obligations, taxes, liens, losses, expenses,
and fees, including court costs and reasonable attorneys’ fees and expenses.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act of 1934, as amended.

 

“Break-Up
Shares” has the meaning set forth in Section 2(b).

 

    	 	1	 

     

    

 

“Business”
has the meaning set forth in the recitals.

 

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

 

“Cash
and Cash Equivalents” means the sum of the fair market value (expressed in United States dollars) of all cash and cash
equivalents of any kind (including, without limitation, all bank account balances, marketable securities, short term investments
and certificates of deposit) of the Company through the Closing Date.

“Catchup
Amount” has the meaning set forth in Section 2(h).

 

“Change
of Control” has the meaning set forth in Section 2(h).

 

“Closing”
has the meaning set forth in Section 2(c).

 

“Closing
Date” has the meaning set forth in Section 2(c).

 

“Closing
Date Net Working Capital” means the amount of the difference, if any, of (x) the Company’s current assets (which
shall include undeposited funds), minus (y) the Company’s current liabilities, as determined from the Closing Date Balance
Sheet. Exhibit D hereto sets forth an example of the calculation of the Closing Date Net Working Capital. Such calculation
is included for reference purposes only, and neither Sellers nor the Company makes any representation or warranty, and will not
incur any liability, in respect thereof.

 

“Closing
Date Balance Sheet” has the meaning set forth in Section 2(e).

 

“COBRA”
means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code Section 4980B and of any similar state law.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common
Stock” has the meaning set forth in Section 2(b).

 

“Company”
has the meaning set forth in the preface.

 

“Company
Released Parties” has the meaning set forth in Section 6(h).

 

“Company
Releasing Parties” the meaning set forth in Section 6(h).

 

“Confidential
Information” means any confidential information of Seller; provided such information shall not include information that
(a) becomes generally available to the public on a non-confidential basis, other than as result of a breach of this Agreement;
(b) is approved for release by written authorization of the Disclosing Party, but only to the extent of such authorization, or
(c) is required to be disclosed by applicable law, rule, regulation, or valid order of a court or other governmental or regulatory
body or authority.

 

    	 	2	 

     

    

 

“Consulting
Agreement” has the meaning set forth in Section 7(a).

 

“D&O
Indemnified Persons” has the meaning set forth in Section 6(i).

 

“Deductible”
has the meaning set forth in Section 8(b)(i)(A).

 

“Disclosure
Schedule” has the meaning set forth in Section 3.

 

“Draft
Closing Date Balance Sheet” has the meaning set forth in Section 2(e).

 

“Earn-Out
Payment” has the meaning set forth in Section 2(h).

 

“Earn-Out
Statement” has the meaning set forth in Section 2(h).

 

“Employee
Benefit Plan” means any “employee benefit plan” (as such term is defined in ERISA Section 3(3)) and any
other material employee benefit plan, program or arrangement.

 

“Employee
Welfare Benefit Plan” has the meaning set forth in ERISA Section 3(1).

 

“Employment
Agreement” has the meaning set forth in Section 7(a).

 

“Environmental
Requirements” means all federal, state and local statutes, regulations, and ordinances concerning pollution, or protection
of the environment as enacted and in effect on or prior to the Closing Date.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means each entity that is treated as a single employer with Seller for purposes of Code Section 414.

 

“Escrow
Account” has the meaning set forth in Section 8(g).

 

“Escrow
Account Portion” has the meaning set forth in Section 8(g).

 

“Escrow
Agent” has the meaning set forth in Section 2(b).

 

“Escrow
Agreement” means the escrow agreement entered into concurrently herewith and attached hereto as Exhibit A.

 

“Escrow
Amount” means, (a) from the date hereof until June 30, 2017, $1,500,000, (b) from July 1, 2017 until December 31, 2017,
$750,000, and (c) thereafter, $0.

 

“Financial
Statements” has the meaning set forth in Section 3(g).

 

“Form
8-K” has the meaning set forth in Section 5(f).

 

    	 	3	 

     

    

 

“GAAP”
means United States generally accepted accounting principles as in effect from time to time, consistently applied.

 

“Gross
Profit” means the Business’s gross profit, calculated on a GAAP basis, consistent with the Logicmark’s past
practices.

 

“High
Value” has the meaning set forth in Section 2(e).

 

“Income
Tax” means any federal, state, local, or foreign income tax measured by or imposed on net income, including any interest,
penalty, or addition thereto, whether disputed or not.

 

“Income
Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to
Income Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Indebtedness”
means, with respect to any Person at any date, without duplication, (i) all obligations of such Person for borrowed money or in
respect of loans or advances, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments
or debt securities, (iii) all obligations in respect of letters of credit and bankers’ acceptances issued for the account
of such Person, (iv) all obligations arising from cash/book overdrafts, (v) all obligations of such Person secured by a Lien,
(vi) all guaranties of such Person in connection with any of the foregoing, (vii) all obligations required to be recorded as capital
leases in accordance with GAAP as of the date of determination of such Indebtedness, and (viii) all obligations for the deferred
purchase price of property or services with respect to which a Person is liable, contingently or otherwise, as obligor or otherwise
(other than current liabilities incurred in the Ordinary Course of Business), including all deferred purchase price liabilities
related to past acquisitions, whether contingent or otherwise (including any “earn-out” or similar payments or obligations
at the maximum amount payable in respect thereof).

 

“Indemnified
Party” has the meaning set forth in Section 8(d).

 

“Indemnifying
Party” has the meaning set forth in Section 8(d).

 

“Intellectual
Property” means all patents, patent applications, trademarks and service marks and the goodwill of the Business associated
therewith, and all registrations and applications therefor, copyrights, copyright registrations and applications, domain names
and trade secrets.

 

“Interests”
has the meaning set forth in the recitals.

 

“Knowledge
of Logicmark” means the actual knowledge of Ben Cornett, Kevin O’Connor and William Vranek or any member of the
Company’s Board of Directors, without independent investigation.

 

“Leased
Real Property” means all leasehold estates in real property that are held by the Company and used in the business of
Seller.

 

    	 	4	 

     

    

 

“Leases”
means all written leases or subleases pursuant to which the Company leases any Leased Real Property.

 

“Lien”
means any mortgage, pledge, lien, encumbrance, charge, or other security interest, other than (a) liens for Taxes not yet due
and payable or for Taxes that the taxpayer is contesting in good faith through appropriate proceedings, (b) purchase money liens
and liens securing rental payments under capital lease arrangements, or (c) other liens arising in the Ordinary Course of Business
and not incurred in connection with the borrowing of money.

 

“Logicmark”
has the meaning set forth in the preface.

 

“Low
Value” has the meaning set forth in Section 2(e).

 

“Make
Whole Amount” has the meaning set forth in Section 6(a).

 

“Market
Option Proceeds” has the meaning set forth in Section 6(a).

 

“Market
Option Notice” has the meaning set forth in Section 6(a).

 

“Material
Adverse Effect” or “Material Adverse Change” means any effect or change that would be materially
adverse to the business of Logicmark, taken as a whole, or to the ability of any Seller to consummate timely the transactions
contemplated hereby; provided that none of the following shall be deemed to constitute, and none of the following shall be taken
into account in determining whether there has been, a Material Adverse Effect or Material Adverse Change: (a) any adverse change,
event, development, or effect (whether short-term or long-term) arising from or relating to (i) general business or economic conditions,
including such conditions related to the business or industries in which Seller operates, (ii) national or international political
or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the declaration
of a national emergency or war, or the occurrence of any military or terrorist attack upon the U.S., or any of its territories,
possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the U.S., (iii) financial,
banking, or securities markets (including any disruption thereof and any decline in the price of any security or any market index),
(iv) changes in U.S. generally accepted accounting principles, (v) changes in laws, rules, regulations, orders, or other binding
directives issued by any governmental entity, or (vi) the taking of any action contemplated by this Agreement and the other agreements
contemplated hereby.

 

“Material
Contracts” has the meaning set forth in Section 3(n).

 

“Most
Recent Balance Sheet” means the balance sheet contained within the Most Recent Financial Statements.

 

“Most
Recent Financial Statements” has the meaning set forth in Section 3(g).

 

“Most
Recent Fiscal Month End” has the meaning set forth in Section 3(g).

 

    	 	5	 

     

    

 

“Most
Recent Year Financial Statements” has the meaning set forth in Section 3(g).

 

“Ordinary
Course of Business” means the ordinary course of business consistent with past custom and practice.

 

“Owned
Real Property” means all real property owned by Seller and used in the business of Seller.

 

“Party”
has the meaning set forth in the preface.

 

“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, any other business entity, or a governmental entity.

 

“Price
Per Share” has the meaning set forth in Section 2(b).

 

“Pro
Rata Share” means, with respect to each Seller, the specified percentage indicated on Annex I hereto, subject
to update from time to time by written notice to Buyer by the Seller Representative.

 

“Purchase
Price” has the meaning set forth in Section 2(f).

 

“Put
Date” has the meaning set forth in Section 6(a).

 

“Put
Shares” has the meaning set forth in Section 6(a).

 

“Real
Property” has the meaning set forth in Section 3(k).

 

“Registration
Statement” has the meaning set forth
in Section 5(f).

 

“Released
Claims” the meaning set forth in Section 6(h).

 

“Restricted
Seller” has the meaning set forth in Section 6(c).

 

“SEC”
has the meaning set forth in Section 5(f).

 

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

 

“Seller
Representative” means Logicmark Investment Partners, LLC, a Delaware limited liability company.

 

“Sellers”
has the meaning set forth in the preface.

 

“Signing
Shares” has the meaning set forth in Section 2(b).

 

“Special
Contract” has the meaning set forth in Section 3(n).

 

    	 	6	 

     

    

 

“Special
Contract Representation” has the meaning set forth in Section 8(a).

 

“Target
Net Working Capital” means $1,650,000.

 

“Tax”
or “Taxes” means any federal, state or local income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, escheat, customs duties, capital stock, franchise, profits, withholding,
social security, unemployment, disability, real property, personal property, sales, use, margin, transfer, registration, ad valorem,
value added, or alternative minimum tax.

 

“Tax
Return” means any required return, declaration, report, claim for refund, or information return or statement relating
to Taxes.

 

“Third-Party
Claim” has the meaning set forth in Section 8(d).

 

“Tier
1 Catchup Amount” has the meaning set forth in Section 2(h).

 

“Tier
2 Catchup Amount” has the meaning set forth in Section 2(h).

 

“Trading
Day” has the meaning set forth in Section 2(b).

 

“Transaction
Documents” has the meaning set forth in Section 9(p).

 

“Unadjusted
Purchase Price” has the meaning set forth in Section 2(b).

 

“WARN
Act” means the Worker Adjustment and Retraining Notification Act of 1988, as amended, or any similar foreign, state,
or local law, regulation, or ordinance.

 

“Warrant”
means the warrant entered into with each Seller concurrently herewith and attached hereto as Exhibit B.

 

2.       Basic
Transaction.

 

(a)     Purchase
and Sale of Interests. On and subject to the terms and conditions of this Agreement, each Seller agrees to assign, convey,
deliver and transfer the Interests held by such Seller to Buyer at Closing free and clear of any and all Liens, and Buyer agrees
to purchase and acquire the Interests from each Seller in exchange for the consideration specified in this Section 2. 

 

(b)       Unadjusted
Purchase Price; Signing Shares. The aggregate purchase price for all of the Interests shall be (i) the Signing Shares and
(ii) $20,000,000 (collectively, the “Unadjusted Purchase Price”), which Unadjusted Purchase Price shall be
payable by Buyer at Closing as follows, and subject to adjustment after the Closing pursuant to Section 2(e) and Section
2(f):

 

(i)      Buyer
shall pay to each Seller (or its designees) at the Closing such Seller’s Pro Rata Share as specified on Annex I of
an amount equal to the Unadjusted Purchase Price, less the Escrow Amount, in cash payable by wire transfer or delivery
of other immediately available funds to an account or accounts designated by Sellers;

 

    	 	7	 

     

    

 

(ii)      Buyer
agrees to pay to JPMorgan Chase Bank, N.A., as escrow agent (the “Escrow Agent”), at the Closing an aggregate
amount equal to the Escrow Amount in cash payable by wire transfer or delivery of other immediately available funds for deposit
and administration by the Escrow Agent pursuant to the terms of the Escrow Agreement;

 

(iii)     Buyer
agrees to pay to each Seller (or its designees) such Seller’s Pro Rata Share as specified on Annex I of the Earn-Out
Payments payable pursuant to Section 2(h);

 

(iv)    Upon
execution and delivery of this Agreement, Buyer agrees to issue to each Seller (or its designees) such Seller’s Pro Rata
Share as specified on Annex I of an aggregate of $300,000 of shares of common stock of Buyer (“Common Stock”)
at the Price Per Share (the “Signing Shares”) and deliver stock certificates to the Seller Representative evidencing
the Signing Shares. For purposes hereof, “Price Per Share” means the volume-weighted average price on the Nasdaq
Capital Market for the five (5) Trading Days prior to the date of this Agreement; “Trading Day” means a day
on which the Nasdaq Capital Market (or other market or exchange on which the Common Stock is listed or quoted for trading on the
date in question) is open for trading; provided, that in the event that the Common Stock is not listed or quoted for trading on
a Trading Market on the date in question, then Trading Day shall mean a business day; and

 

(v)      Upon
execution and delivery of this Agreement, Buyer agrees to issue to each Seller (or its designees) a Warrant exercisable without
cash for its Pro Rata Share of the number of shares of fully registered, freely tradable shares of Common Stock equal to (A) $600,000
divided by (B) the Price Per Share (subject to customary adjustments) (the “Break-Up Shares”), which Warrants
shall become exercisable in accordance with Section 9(s).

 

(c)      Closing.
 The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices
of Patzik, Frank & Samotny Ltd., in Chicago, Illinois commencing at 10:00 a.m. local time on the earlier of
(i) June 30, 2016 or (ii) the date upon which the conditions to Closing set forth in Section 7 of this Agreement shall
have been satisfied or, to the extent permitted hereunder, waived by the appropriate party (other than those conditions that by
their nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permitted hereunder, waiver
of any such conditions), or on such other date, at such other time or place or in such other manner, as the Parties shall mutually
agree, unless this Agreement has been terminated pursuant to its terms prior to the Closing; provided, however,
subject to the Parties’ termination rights under Section 9(r), that the date of the Closing shall be automatically
extended from time to time for so long as any of the conditions to the obligations of the Parties to consummate the transactions
contemplated hereby (other than conditions with respect to actions the respective Parties will take at the Closing itself) shall
not be satisfied or waived as provided herein. The date on which the Closing occurs in accordance with the preceding sentence
is referred to in this Agreement as the “Closing Date”.

 

(d)      Deliveries
at Closing. At the Closing: (i) Sellers will deliver to Buyer the various certificates, instruments, and documents referred
to in Section 7(a); (ii) Buyer will deliver to Sellers the various certificates, instruments, and documents referred to
in Section 7(b); (iii) Sellers will execute, acknowledge (if appropriate), and deliver to Buyer (A) the limited liability
company interest assignment in the form attached as Exhibit C, and (B) such other instruments of sale, transfer, conveyance,
and assignment as Buyer and its counsel may reasonably request; and (iv) Buyer will execute, acknowledge (if appropriate), and
deliver to Seller such instruments of assumption as Seller and its counsel may reasonably request.

 

    	 	8	 

     

    

 

(e)      Determination
of Closing Date Balance Sheet.

 

(i)       Within
forty-five (45) days after the Closing Date, Buyer will prepare and deliver to Seller Representative a draft balance sheet (the
“Draft Closing Date Balance Sheet”) for Logicmark as of the opening of business on the Closing Date (determined
on a pro forma basis as though the Parties had not consummated the transactions contemplated by this Agreement), together with
a calculation of the Closing Date Net Working Capital. Buyer will prepare the Draft Closing Date Balance Sheet and Closing Date
Net Working Capital in accordance with Exhibit D. Notwithstanding, or without limitation, as the case may be, of the foregoing,
the Draft Closing Date Balance Sheet shall exclude the impact of any changes in the operation of the Business implemented by Buyer.

 

(ii)      If
Seller Representative has
any objections to the Draft Closing Date Balance Sheet (or Earn-Out Statement), Seller Representative
shall deliver a statement describing its objections to Buyer within forty-five (45) days
after receipt thereof. Buyer and Seller Representative shall use reasonable efforts to
resolve any objections themselves. If the Parties do not obtain a final resolution within thirty (30) days after Buyer has received
any statement of objections, however, Buyer and Seller Representative shall submit all
unresolved disputes to CohnReznick LLP (or similar firm in the event such firm is unwilling to serve or is not independent of
the Buyer and Sellers) (the “Arbitrating Accounting Firm”) to resolve
any remaining objections in accordance with the terms of this Agreement. The determination of the Arbitrating Accounting Firm
shall be set forth in writing and shall be conclusive and binding upon the Parties. Buyer shall revise the Draft Closing Date
Balance Sheet (or Earn-Out Statement) as appropriate to reflect the resolution of any objections
thereto pursuant to this Section 2(e)(ii). The “Closing Date Balance Sheet” shall mean the Draft Closing
Date Balance Sheet together with any revisions thereto pursuant to this Section 2(e)(ii).

 

(iii)     In
the event the Buyer and Seller Representative submit any unresolved objections regarding the Draft Closing Date Balance Sheet
(or Earn-Out Statement) to the Arbitration Accounting Firm for resolution as provided in Section
2(e)(ii), Buyer and Sellers shall
share responsibility for the fees and expenses of the Arbitrating Accounting Firm as follows:

 

(A)      if
the Arbitrating Accounting Firm resolves all of the remaining objections in favor of Buyer (the Closing Date Net Working Capital
(or Earn-Out Payment) so determined is referred to herein as the “Low Value”),
Sellers shall be responsible for all of the fees and expenses of the Arbitrating Accounting Firm;

 

(B)        if
the Arbitrating Accounting Firm resolves all of the remaining objections in favor of Sellers (the Closing Date Net Working
Capital (or Earn-Out Payment) so determined is referred to herein as the “High
Value”), Buyer shall be responsible for all of the fees and expenses of the Arbitrating Accounting Firm; and

 

    	 	9	 

     

    

 

(C)        if
the Arbitrating Accounting Firm resolves some of the remaining objections in favor of Buyer and some objections in favor of Sellers
(the Closing Date Net Working Capital (or Earn-Out Payment) so determined is referred to herein
as the “Actual Value”), Sellers shall be responsible for that fraction of the fees and expenses of the Arbitrating
Accounting Firm equal to (x) the difference between the High Value and the Actual Value over (y) the difference between the High
Value and the Low Value, and Buyer shall be responsible for the remainder of the fees and expenses.

 

(iv)     Buyer
shall make the work papers, back-up materials, indemnification letters and financial statements and information used in preparing
the Draft Closing Date Balance Sheet (or Earn-Out Statement) (and shall send Seller Representative
electronic copies thereof at Seller Representative’s request), and the books, records, and financial staff of Buyer
available to Seller Representative and
its accountants and other representatives at reasonable times and upon reasonable notice at any time during the review by Seller
Representative of the Draft Closing Date Balance Sheet (or Earn-Out
Statement), and the resolution by the Parties of any objections thereto. 

 

(f)        Post-Closing
Working Capital Adjustment. The Unadjusted Purchase Price shall be adjusted as follows: 

 

(i)      If
and to the extent (A) the Closing Date Net Working Capital exceeds (B) Target Net Working Capital, then Buyer will pay to each
Seller such Seller’s Pro Rata Share of an amount equal to such excess by wire transfer or delivery of other immediately
available funds within three (3) business days after the date on which the Closing Date Net Working Capital finally is determined
pursuant to Section 2(e). 

 

(ii)      If
and to the extent (A) the Closing Date Net Working Capital is less than (B) Target Net Working Capital, then each Seller shall
pay, or direct the Escrow Agent to release from the Escrow Amount, to Buyer such Seller’s Pro Rata Share of an amount equal
to such deficiency by wire transfer or delivery of other immediately available funds within three (3) business days after the
date on which the Closing Date Net Working Capital finally is determined pursuant to Section 2(e). 

 

The
Unadjusted Purchase Price as so adjusted is referred to herein as the “Purchase Price”.

 

(g)      [Intentionally
Omitted]. 

 

(h)       Earn
Out Payments. As additional consideration for the Interests, Buyer shall pay each Seller such Seller’s Pro Rata Share
of the amounts determined as provided below (each an “Earn-Out Payment”). 

 

(i)      2016
Earn-Out Payment. Buyer shall pay each Seller such Seller’s Pro Rata Share of an Earn-Out Payment based on Gross
Profit for calendar year 2016 (“2016 Gross Profit”) as follows (the “2016
Earn-Out Payment”):

 

(A)      If
2016 Gross Profit is less than or equal to $8,500,000, then the 2016 Earn-Out Payment will be $0; 

 

    	 	10	 

     

    

 

(B)        If
2016 Gross Profit is greater than $8,500,000 but less than or equal to $9,082,836, then the 2016 Earn-Out Payment will be paid
on a straight-line sliding scale with $0 as the minimum and $750,000 as the maximum 2016 Earn-Out Payment. To the extent that
less than the full 2016 Earn-Out Payment of $750,000 is paid under this clause (B), the amount of such shortfall shall
be the “Tier 1 Catchup Amount”; 

 

(C)       If
2016 Gross Profit is greater than $9,082,836 but less than $9,582,836, the 2016 Earn-Out Payment will be (1) $750,000 plus, (2)
for each dollar of 2016 Gross Profit between $9,082,836 and $9,582,836, an additional payment on a straight-line sliding scale
with $0 as the minimum and $750,000 as the maximum payment under this clause (C)(2), and with $1,500,000 being the maximum
2016 Earn-Out Payment. To the extent that less than the full portion of the 2016 Earn-Out Payment of $750,000 is paid under clause
(C)(2), the amount of such shortfall shall be the “Tier 2 Catchup Amount” and the sum of the Tier 1 Catchup
Amount and the Tier 2 Catchup Amount shall be the “Catchup Amount”; and

 

(D)      If
2016 Gross Profit is greater than $9,582,836, the 2016 Earn-Out Payment shall be $1,500,000.

 

(ii)      2017
Earn-Out Payment. Buyer shall pay each Seller such Seller’s Pro Rata Share of an Earn-Out Payment (the “2017
Earn-Out Payment”) based on Gross
Profit for calendar year 2017 (“2017 Gross Profit”) as follows:

 

(A)       If
2017 Gross Profit is less than or equal to $9,500,000, then the 2017 Earn-Out Payment will be $0; 

 

(B)        If
2017 Gross Profit is greater than $9,500,000 but less than or equal to $10,097,000, then the 2017 Earn-Out Payment will be paid
on a straight-line sliding scale with $0 as the minimum and the sum of $2,250,000 plus the Tier 1 Catchup Amount as the maximum
2017 Earn-Out Payment; 

 

(C)        If
2017 Gross Profit is greater than $10,097,000 but less than or equal to $10,597,000, then the 2017 Earn-Out Payment will be the
sum of (1) $2,250,000 plus the Tier 1 Catchup Amount plus, (2) for each dollar of 2017 Gross Profit between $10,097,000 and $10,597,000,
an additional payment on a straight-line sliding scale with $0 as the minimum and the sum of $750,000 plus the Tier 2 Catchup
Amount as the maximum payment under this clause (C)(2), and with the sum of $3,000,000 plus the Catchup Amount being the
maximum 2017 Earn-Out Payment; and

 

(D)       If
2017 Gross Profit is greater than $10,597,000, then the 2017 Earn-Out Payment will be the sum of (1) $3,000,000 plus the Catchup
Amount, plus (2) an amount equal to $0.30 for every dollar of 2017 Gross Profit over and above $10,597,000, with $2,000,000 as
the maximum payment under this clause (D)(2), and with the sum of $5,000,000 plus the Catchup Amount being the maximum
2017 Earn-Out Payment.

 

    	 	11	 

     

    

 

(iii)      Timing
of Payment. All Earn-Out Payments shall be made in cash, by wire transfer of immediately available funds to the account or
accounts specified in writing by Sellers to Buyer, within three (3) days of the earliest of (A) the expiration of the periods
described in Section 2(e)(ii) in which Sellers may dispute the calculation of any Earn-Out Payment, (B) the date on which
the Parties agree on any Earn-Out Payment, or (C) the date on which the decision of the Arbitrating Accounting Firm is rendered.

 

(iv)      Earn-Out
Statement. At the time of filing of the Buyer’s Annual Report on Form 10-K, but not later than ninety-five (95) days
after the end of each of calendar years 2016 and 2017, Buyer shall prepare and deliver to Seller Representative (1) an audited
income statement of Buyer for such period and (2) a statement setting forth Buyer’s calculation of the Gross Profit for
such period (together, the “Earn-Out Statement”). Each Earn-Out Statement shall be prepared from the books
and records of Logicmark and fairly present its results of operations for the relevant calendar year in accordance with GAAP,
consistently applied. Any objection by Sellers, and the resolution of any dispute between the Parties, regarding any Earn-Out
Statement shall be resolved in accordance with Section 2(e)(ii). In addition, Buyer shall provide Sellers with periodic
reports of Gross Profit for each calendar quarter, prepared consistent with the manner in which the Earn-Out Statement is prepared,
not later than fifty (50) days after the end of each such calendar quarter.

 

(v)       Post-Closing
Operation of the Business. From and after the Closing through calendar year 2017, Buyer shall operate the Business in good
faith and in the ordinary course of business and reasonably consistent with past practices of Logicmark prior to the Closing and
shall not, directly or indirectly, take any actions in bad faith that could unreasonably restrict the achievement of Earn-Out
Payments, or which could have the purpose of avoiding or reducing any of the Earn-Out Payments hereunder. Without limiting the
generality of the foregoing, Buyer agrees to operate the Business in a separate Subsidiary through calendar year 2017.

 

(vi)      Acceleration
Upon Change of Control. In the event of a Change of Control, then Buyer shall pay to Sellers at the closing of the Change
of Control the maximum amount of the Earn-Out Payments (less the amount of any Earn-Out Payments already paid) to the Sellers.
For purposes hereof, “Change of Control” means, whether effected in a single or series of transactions, any
(A) any consolidation or merger of Buyer or Logicmark with or into any other entity, other than an Affiliate of Buyer; (B) any
assignment, sale or transfer of more than fifty percent (50%) of Buyer’s or Logicmark’s equity securities to one Person
or a group of Affiliated Persons which results in such Person(s) exercising voting control over more than fifty percent (50%)
of Buyer’s voting equity securities; or (C) a sale, lease, conveyance or other disposition of all or substantially all of
the assets of Buyer’s or Logicmark’s outside of the ordinary course of business.

 

(i)        Allocation.
Buyer and Seller Representative agree to allocate the Purchase Price among the Interests, for all accounting and tax purposes,
in accordance with their respective fair market values, as set forth in the allocation schedules set forth in Annex I hereto.

 

    	 	12	 

     

    

 

3.       Logicmark’s
Representations and Warranties. Logicmark represents and warrants to Buyer that the statements contained in this Section
3 are correct and complete as of the Closing Date, except as set forth in the disclosure schedule delivered by Logicmark to
Buyer on the date hereof (the “Disclosure Schedule”).

 

(a)      Organization,
Qualification, and Corporate Power. Logicmark is a limited liability company duly organized, validly existing, and
in good standing under the laws of the State of Delaware. Logicmark is duly authorized to conduct business and is in good
standing under the laws of each jurisdiction where such qualification is required, except where the lack of such qualification
would not have a Material Adverse Effect. Logicmark has full limited liability company power and authority necessary to carry
on the business in which it is engaged and to own and use the properties owned and used by it.

 

(b)      Authorization
of Transaction. Logicmark has full power and authority (including full corporate or other entity power and authority)
to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally
binding obligation of Logicmark, enforceable in accordance with its terms and conditions, except to the extent that such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws, rules and regulations affecting
the rights of creditors generally, and general principles of equity, good faith and fair dealing. Logicmark need not give
any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency
in order to consummate the transactions contemplated by this Agreement. The execution, delivery and performance of this Agreement
and all other agreements contemplated hereby have been duly authorized by Logicmark.

 

(c)       Non-Contravention.
To the Knowledge of Logicmark, neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge, or other restriction of any government, governmental agency, or court to which Logicmark is subject or any provision of
the certificate of formation or limited liability company agreement or partnership agreement of any Seller or (ii) conflict with,
result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice under any Material Contract (or result in the imposition of any Lien upon
any of its assets), except where the violation, conflict, breach, default, acceleration, termination, modification, cancellation,
failure to give notice, or Lien would not have a Material Adverse Effect. Logicmark does not need to give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the Parties
to consummate the transactions contemplated by this Agreement, except where the failure to give notice, to file, or to obtain
any authorization, consent, or approval would not have a Material Adverse Effect.

 

(d)       Brokers’
Fees. Logicmark has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect
to the transactions contemplated by this Agreement.

 

    	 	13	 

     

    

 

(e)       Title
to Assets. Logicmark has good and marketable title to, or a valid leasehold interest in, all assets and properties of Logicmark
that are necessary or useful for the conduct of its business as presently conducted, free and clear of any and all Liens.

 

(f)        Capitalization;
Subsidiaries.

 

(i)       The
issued and outstanding Interests in Logicmark consist of 1,100 Interests (including 100 “profits interests”), all
such Interests being uncertificated and allocated among the Sellers as set forth on Annex I attached hereto. All of the
outstanding Interests have been duly authorized and are validly issued, and have not been issued in violation of any preemptive
rights, rights of first refusal or similar rights. There are no existing (i) options, warrants, calls, subscriptions or other
rights, convertible securities, agreements or commitments of any character obligating Logicmark to issue, transfer or sell any
ownership units or other equity interest in Logicmark or securities convertible into or exchangeable for such ownership units
or equity interests; (ii) contractual obligations of Logicmark to repurchase, redeem or otherwise acquire any ownership units
of Logicmark or (iii) voting trusts or similar agreements to which Logicmark is a party with respect to the voting of the ownership
units of Logicmark.

 

(ii)      Logicmark
does not have any subsidiaries.

 

(g)      Financial
Statements. Attached to Section 3(g) of the Disclosure Schedule are the following financial statements (collectively
the “Financial Statements”): (i) audited balance sheets and statements of income, statement of members’
equity, and cash flow as of and for the fiscal years ended December 31, 2013 and December 31, 2014 for Seller; (ii) unaudited
balance sheet and statement of income, statement of members’ equity, and cash flow as of and for the fiscal year ended December
31, 2015 (the “Most Recent Year Financial Statements”); and (iii) unaudited balance sheet and statement of
income, and cash flow (the “Most Recent Financial Statements”) as of and for the three months ended
March 31, 2016 (the “Most Recent Fiscal Month End”) for Logicmark. Except as set forth on Section 3(g)
of the Disclosure Schedule, the Financial Statements (including the notes thereto) have been prepared in accordance with GAAP
and present fairly the financial condition of Logicmark as of such dates and the results of operations of Logicmark; provided,
however, that the Most Recent Year Financial Statements and Most Recent Financial Statements are subject to normal year-end adjustments
and lack footnotes and other presentation items. All Indebtedness of the Company as of immediately prior to the Closing (including
the outstanding amount thereof) is set forth on Section 3(g) of the Disclosure Schedule.

 

(h)       Events
Subsequent to Most Recent Fiscal Month End. Since the Most Recent Fiscal Month End, there has not been any Material Adverse
Change and since that date:

 

(i)       Logicmark
has not sold, leased, transferred, or assigned any material assets, tangible or intangible, outside the Ordinary Course of Business;

 

(ii)       Logicmark
has not accelerated, terminated, made material modifications to, or canceled any material agreement, contract, lease, or license
to which Logicmark is a party or by which it is bound;

 

    	 	14	 

     

    

 

(iii)      Logicmark
has not imposed any Lien upon any material portion of its assets, tangible or intangible;

 

(iv)      Logicmark
has not made any material capital expenditures outside the Ordinary Course of Business;

 

(v)       Logicmark
has not made any material capital investment in, or any material loan to, any other Person outside the Ordinary Course of Business;

 

(vi)      Logicmark
has not created, incurred, assumed, or guaranteed more than $50,000 in aggregate indebtedness for borrowed money and capitalized
lease obligations;

 

(vii)     there
has been no change made or authorized in the charter or bylaws of Logicmark;

 

(viii)    Logicmark
has not experienced any material damage, destruction, or loss (whether or not covered by insurance) to its property; or

 

(ix)       Logicmark
has not granted any increase in the base compensation of any of its directors, officers, and employees outside the Ordinary Course
of Business.

 

(i)        Legal
Compliance. To the Knowledge of Logicmark, Logicmark has complied with all applicable laws (including rules, regulations,
codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local, and foreign
governments (and all agencies thereof), except where the failure to comply would not have a Material Adverse Effect.

 

(j)        Tax
Matters.

 

(i)        Logicmark has filed all federal and state Income Tax Returns and all other material Tax Returns that it was required to file
prior to the date hereof. All such Tax Returns were complete and accurate in all material respects. All Taxes due and owing by
Logicmark shown on any Tax Return have been paid. Logicmark currently is not the beneficiary of any extension of time within which
to file any Tax Return. There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of Logicmark.

 

(ii)       There is no material dispute or claim concerning any Tax liability of Logicmark either (A) claimed or raised by any authority
in writing or (B) as to which there is Knowledge of Logicmark based upon personal contact with an authorized agent of such authority.
To the Knowledge of Logicmark, there are no matters under discussion between Logicmark and any Tax Authority with respect to Taxes
that are likely to result in an additional liability for Taxes with respect to Logicmark.

 

(iii)      Logicmark has delivered or made available to Buyer accurate copies of all federal and state Income Tax Returns for Logicmark
since December 31, 2012. Logicmark has not waived any statute of limitations in respect of Taxes or agreed to any extension of
time with respect to a Tax assessment or deficiency.

 

    	 	15	 

     

    

 

(iv)      Logicmark is not a party to or bound by any tax allocation or sharing agreement.

 

(v)       There are no Liens for Taxes upon any property or asset of Logicmark.

 

(k)       Real
Property.

 

(i)        There
is no Owned Real Property.

 

(ii)       Section 3(k)(ii) of the Disclosure Schedule sets forth the address of each parcel of Leased Real Property, and a true
and complete list of all Leases for each such parcel of Leased Real Property. Logicmark has delivered to Buyer a true and complete
copy of each Lease document.

 

(iii)      The Leased Real Property identified in Section 3(k)(ii) of the Disclosure Schedule (collectively, the “Real
Property”) comprise all of the real property used in the business of Logicmark; and Logicmark is not a party to any
agreement or option to purchase any real property or interest therein.

 

(l)        Intellectual
Property.

 

(i)
      During the four (4) year period immediately preceding the date hereof, Logicmark has not received any written notice alleging
that Logicmark has interfered with, infringed upon, misappropriated, or violated any material Intellectual Property rights of
third parties in any material respect, other than accusations of infringement that have been withdrawn by the party giving any
such notice. Logicmark’s use of its Intellectual Property does not infringe upon any of U.S. Patent Nos. (a) 7,933,579,
7,231,200, RE 41,392, 7,315,736, RE 41,845 and 5,432,825. To the Knowledge of Logicmark, no third party has interfered with, infringed
upon, misappropriated, or violated any material Intellectual Property rights of Logicmark in any material respect.

 

(ii)       Section 3(l)(ii) of the Disclosure Schedule identifies each material patent, material trade name or registered trademark,
service mark, corporate name, Internet domain name, and material computer software item (other than commercially available off-the-shelf
software) owned by Logicmark or used by Logicmark in connection with its business. With respect to each item of Intellectual Property
identified in Section 3(l)(ii) of the Disclosure Schedule:

 

(A)
     Logicmark possesses all right, title, and interest in and to, or the right to use, the item;

 

(B)
     the item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge;

 

(C)        no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or, to the Knowledge of
Logicmark, is threatened that challenges the legality, validity, enforceability, access, use, or ownership of the item; and

 

    	 	16	 

     

    

 

(D)
     Logicmark has never agreed to indemnify any Person for or against any interference, infringement, dilution, misappropriation,
or other conflict with respect to the item.

 

(iii)    
Section 3(l)(iii) of the Disclosure Schedule identifies each material item of Intellectual Property (other than commercially
available off-the-shelf software) that any third party owns and that Logicmark accesses or uses pursuant to license, sublicense,
agreement, covenant not to sue, or permission. Logicmark has delivered to Buyer correct and complete copies of all such licenses,
sublicenses, agreements, covenants not to sue, and permissions (as amended to date). With respect to each item of Intellectual
Property identified in Section 3(l)(iii) of the Disclosure Schedule:

 

(A)
     the license, sublicense, agreement, covenant not to sue, or permission covering the item is legal, valid, binding, enforceable,
and in full force and effect in all material respects, except that enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws, rules and regulations affecting the rights of creditors generally, and general principles
of equity, good faith and fair dealing;

 

(B)        to the Knowledge of Logicmark, no party to the license, sublicense, agreement, covenant not to sue, or permission is in material
breach or default, and no event has occurred that with notice or lapse of time would constitute a material breach or default or
permit termination, modification, or acceleration thereunder; and

 

(C)        Logicmark has not granted any sublicense or similar right with respect to the license, sublicense, agreement, covenant not
to sue, or permission.

 

(m)      Inventory.
The inventory of Logicmark consists of supplies and purchased parts, goods in process, and finished goods, all of which is in
merchantable condition such that it can be sold in the Ordinary Course of Business, except for slow moving, obsolete, damaged
or defective items that have been written off or written down to fair market value or for which adequate reserves have been established.

 

(n)       Contracts.
Section 3(n) of the Disclosure Schedule lists the following contracts and other agreements to which Logicmark is a party
(“Material Contracts”):

 

(i)        any agreement (or group of related agreements) for the lease of personal property to or from any Person providing for lease
payments in excess of $50,000 per annum;

 

(ii)
    any agreement (or group of related agreements) for the purchase or sale of raw materials, commodities, supplies, products,
or other personal property, or for the furnishing or receipt of services, the performance of which will extend over a period of
more than one (1) year or involve consideration in excess of $50,000;

 

(iii)
    any agreement concerning a partnership or joint venture;

 

    	 	17	 

     

    

 

(iv)
    any agreement (or group of related agreements) under which it has created, incurred, assumed, or guaranteed any indebtedness
for borrowed money, or any capitalized lease obligation, in excess of $50,000;

 

(v)
     any material agreement concerning confidentiality or non-competition;

 

(vi)
    any material agreement with an Affiliate of Logicmark;

 

(vii)
  any profit sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance, or other material
plan or arrangement for the benefit of its current or former directors, officers, and employees;

 

(viii)
  any collective bargaining agreement;

 

(ix)
     any agreement for the employment of any individual on a full-time, part-time, consulting, or other basis providing annual
compensation in excess of $50,000 or providing material severance benefits;

 

(x)
     any agreement under which it has advanced or loaned any amount to any of its directors, officers, and employees outside the
Ordinary Course of Business;

 

(xi)
    any agreement under which Logicmark has advanced or loaned any other Person amounts in the aggregate exceeding $50,000; or

 

(xii)
  any other agreement (or group of related agreements) the performance of which involves consideration in excess of $50,000.

 

Logicmark
has delivered to Buyer a correct and complete copy of each written agreement listed in Section 3(n) of the Disclosure Schedule.
With respect to each such agreement, to the Knowledge of Logicmark: (A) the agreement is legal, valid, binding, enforceable, and
in full force and effect in all material respects, except that enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws, rules and regulations affecting the rights of creditors generally, and general principles
of equity, good faith and fair dealing; (B) no party is in material breach or default, and no event has occurred that with notice
or lapse of time would constitute a material breach or default, or permit termination, modification, or acceleration, under the
agreement; and (C) no party has repudiated any material provision of the agreement. To the Knowledge of Logicmark, there is no
reason to believe Logicmark will not be re-awarded the contract specified on Section 3(n)(xiii) of the Disclosure Schedule
(the “Special Contract”). Logicmark has at all times been, and currently is, in compliance with “Section
B of the Addenda” to the Special Contract.

 

(o)       Powers
of Attorney. To the Knowledge of Logicmark, there are no material outstanding powers of attorney executed on behalf of Logicmark.

 

(p)       Litigation.
Section 3(p) of the Disclosure Schedule sets forth each instance in which Logicmark (i) is subject to any outstanding injunction,
judgment, order, decree, ruling, or charge or (ii) is a party to any action, suit, proceeding, hearing, or investigation of, in,
or before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction, except where
the injunction, judgment, order, decree, ruling, action, suit, proceeding, hearing, or investigation would not have a Material
Adverse Effect.

 

    	 	18	 

     

    

 

(q)       Employees.
To the Knowledge of Logicmark, no executive, key employee, or significant group of employees plans to terminate employment with
Logicmark during the next twelve (12) months. Logicmark is not a party to or bound by any collective bargaining agreement, nor
has it experienced any strike or material grievance, claim of unfair labor practices, or other collective bargaining dispute within
the past three (3) years. To the Knowledge of Logicmark, there are no organizational efforts presently being made or threatened
by or on behalf of any labor union with respect to employees of Logicmark.

 

(r)       Employee
Benefits.

 

(i)        Section 3(r) of the Disclosure Schedule lists each Employee Benefit Plan that Logicmark maintains or to which Logicmark
contributes.

 

(A)      To the Knowledge of Logicmark, each such Employee Benefit Plan (and each related trust, insurance contract, or fund) has been
maintained, funded and administered in accordance with the terms of such Employee Benefit Plan and complies in form and in operation
in all respects with the applicable requirements of ERISA and the Code, except where the failure to comply would not have a Material
Adverse Effect.

 

(B)
     All premiums or other payments that are due have been paid with respect to each such Employee Benefit Plan that is an Employee
Welfare Benefit Plan.

 

(C)
     Each such Employee Benefit Plan that is intended to meet the requirements of a “qualified plan” under Code Section
401(a) has received a determination letter from the Internal Revenue Service to the effect that it meets the requirements of Code
Section 401(a).

 

(ii)
    With respect to each such Employee Benefit Plan that Logicmark and any ERISA Affiliate maintains, or has maintained during
the prior six (6) years or to which any of them contributes, or has been required to contribute during the prior six (6) years,
no action, suit, proceeding, hearing, or investigation with respect to the administration or the investment of the assets of any
such Employee Benefit Plan (other than routine claims for benefits) is pending, except where the action, suit, proceeding, hearing,
or investigation would not have a Material Adverse Effect.

 

(s)       Environmental
Matters.

 

(i)
      To the Knowledge of Logicmark, Logicmark is in compliance, in each case in all material respects, with Environmental Requirements,
except for such non-compliance as would not have a Material Adverse Effect.

 

    	 	19	 

     

    

 

(ii)
     Logicmark has not received any written notice, report, or other information regarding any actual or alleged material violation
of Environmental Requirements, or any material liabilities or potential material liabilities, including any material investigatory,
remedial, or corrective obligations, relating to Logicmark or its facilities arising under Environmental Requirements, the subject
of which would have a Material Adverse Effect.

 

(iii)
    This Section 3(s) contains the sole and exclusive representations and warranties of Logicmark with respect to any environmental
matters, including without limitation any arising under any Environmental Requirements.

 

(t)       Certain
Business Relationships with Logicmark. No Affiliate of Logicmark has been involved in any material business arrangement or
relationship with Logicmark within the past twelve (12) months and no Affiliate of Logicmark owns any material asset, tangible
or intangible, that is used in the business of Logicmark.

 

(u)       Customers
and Suppliers.

 

(i)       Section
3(u) of the Disclosure Schedule lists the ten (10) largest customers and the ten (10) largest suppliers of Logicmark for each
of the two (2) most recent fiscal years ending December 31, 2014 and December 31, 2015, based on total revenues
for such periods. 

 

(ii)      Since
the date of the Most Recent Financial Statements, no material supplier of Logicmark has indicated in writing or, to the Knowledge
of Logicmark, verbally that it shall stop, or materially decrease the rate of, supplying materials, products or services to Logicmark,
and no customer listed on Section 3(u) of the Disclosure Schedule has indicated in writing or, to the Knowledge of Logicmark,
verbally that it shall stop, or materially decrease the rate of, buying materials, products or services from Logicmark.

 

(v)       Disclaimer
of Other Representations and Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS SECTION 3, LOGICMARK DOES
NOT MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF LOGICMARK OR ANY OF ITS ASSETS,
LIABILITIES OR OPERATIONS, INCLUDING WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ANY SUCH OTHER
REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED, IT BEING UNDERSTOOD THAT BUYER IS OTHERWISE PURCHASING THE INTERESTS
ON AN “AS-IS, WHERE-IS” BASIS.

 

4.      Sellers’
Representations and Warranties. Each Seller represents and warrants to Buyer that the statements contained in this Section
4 are correct and complete as of the date of this Agreement.

 

(a)      Authorization
of Transaction. Such Seller has full power and authority (including full corporate or other entity power and authority)
to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally
binding obligation of such Seller, enforceable in accordance with its terms and conditions, except to the extent that such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws, rules and regulations affecting
the rights of creditors generally, and general principles of equity, good faith and fair dealing. Such Seller need not give any
notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in
order to consummate the transactions contemplated by this Agreement. The execution, delivery and performance of this Agreement
and all other agreements contemplated hereby have been duly authorized by such Seller.

 

    	 	20	 

     

    

 

(b)       Non-Contravention.
To the actual knowledge of such Seller, neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling,
charge, or other restriction of any government, governmental agency, or court to which such Seller is subject or any provision
of the certificate of formation or limited liability company of such Seller or (ii) result in the imposition of any Lien upon
any of its Interests, except where the violation, conflict, breach, default, acceleration, termination, modification, cancellation,
failure to give notice, or Lien would not have a Material Adverse Effect. Such Seller does not need to give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the Parties
to consummate the transactions contemplated by this Agreement, except where the failure to give notice, to file, or to obtain
any authorization, consent, or approval would not have a Material Adverse Effect.

 

(c)      Brokers’
Fees. Such Seller has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect
to the transactions contemplated by this Agreement for which Buyer could become liable.

 

(d)      Title
to Interests. Such Seller is the sole record and beneficial owner of the Interests set forth opposite such Seller's name on
Annex I attached hereto. Such Seller’s Interests are owned by such Seller free and clear of all Liens, other than
restrictions imposed by federal or state securities laws. Upon the consummation of the transactions contemplated hereby, Buyer
will acquire good title to the Interests owned by such Seller and shown on Annex I to be transferred to Buyer, free and
clear of all Liens, other than restrictions imposed by federal or state securities laws.

 

(e)       Disclaimer
of Other Representations and Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS SECTION 4, SELLERS DO NOT
MAKE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF LOGICMARK OR THE INTERESTS, INCLUDING
WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ANY SUCH OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY
EXPRESSLY DISCLAIMED, IT BEING UNDERSTOOD THAT BUYER IS OTHERWISE PURCHASING THE INTERESTS ON AN “AS-IS, WHERE-IS”
BASIS.

 

    	 	21	 

     

    

 

5.      Buyer’s
Representations and Warranties. Buyer represents and warrants to Sellers that the statements contained in this Section
5 are correct and complete as of the date of this Agreement.

 

(a)     Organization
of Buyer. Buyer is a Delaware corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction
of its incorporation (or other formation).

 

(b)      Authorization
of Transaction. Buyer has full power and authority (including full corporate or other entity power and authority) to execute
and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and legally binding
obligation of Buyer, enforceable in accordance with its terms and conditions, except to the extent that such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium and similar laws, rules and regulations affecting
the rights of creditors generally, and general principles of equity, good faith and fair dealing. Buyer need not give any notice
to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order
to consummate the transactions contemplated by this Agreement. The execution, delivery and performance of this Agreement and all
other agreements contemplated hereby have been duly authorized by Buyer.

 

(c)      Non-Contravention.
Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate
any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any
government, governmental agency, or court to which Buyer is subject or any provision of its charter, bylaws, or other governing
documents or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any
party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which Buyer is a party or by which it is bound or to which any of its assets is subject.

 

(d)       Brokers’
Fees. Buyer has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to
the transactions contemplated by this Agreement.

 

(e)       Investment
Purpose. Buyer is acquiring the Interests for its own account as principal, with no view to any resale or distribution of
any of the Interests or any beneficial interest in any Interests, and Buyer has no present intent, agreement or understanding
to sell, pledge or otherwise dispose of any Interests or any beneficial interest in any Interests to any other Person.

 

(f)        Filings,
Consents and Approvals. Buyer is not required to obtain any consent, waiver, authorization
or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by Buyer of the Transaction Documents and
the issuance of the Signing Shares, the Warrants and the Break-Up Shares, other than (i) the filing of a form 8-K (the “Form
8-K”) with the U.S. Securities and Exchange Commission (the “SEC”) and (ii) the filing of a registration
statement on Form S-1 to register the Signing Shares and Break-Up Shares with the SEC (the “Registration Statement”).

 

(g)      Issuance
of Shares. The Signing Shares and the Break-Up Shares are duly authorized and, when issued
in accordance with this Agreement or the Warrants, will be (i) duly and validly issued, fully paid and non-assessable, (ii) free
and clear of all Liens, (iii) free of preemptive rights or purchase option, call, right of first refusal or any similar rights,
(iv) subject to applicable securities laws, freely transferable without further action by Buyer or any other third party; (v)
issued in compliance with all securities laws, other applicable law and the rules and regulations of Nasdaq; and (vi) upon the
effectiveness of the Registration Statement, fully registered and freely tradable by Sellers. The issuance and sale of the Signing
Shares, the Warrants and the Break-Up Shares will not obligate Buyer to issue shares of capital stock or other securities to any
Person (other than the Sellers) and will not result in a right of any holder of Buyer securities to adjust the exercise, conversion,
exchange or reset price under any of such securities. Buyer has the number of authorized shares of capital stock necessary to
enable Buyer to issue the Signing Shares and Break-Up Shares. 

 

    	 	22	 

     

    

 

6.       Covenants.
The Parties agree as follows:

 

(a)       Pre-Closing
Covenants.

 

(i)       Continued
Efforts. From the date hereof until the earlier of the Closing or termination of this Agreement, each Party shall cooperate
and use commercially reasonable best efforts to cause the conditions to Closing set forth in Section 7 to be satisfied;
provided, however, the foregoing shall not obligate any Party to waive any of its conditions to Closing.

 

(ii)       No
Solicitation.

 

a.         For
purposes of this Agreement, “Acquisition Proposal” means (other than the transactions contemplated by this
Agreement) any inquiry, proposal or offer, or any indication of interest in making an offer or proposal, from any Person or group
at any time relating to a merger, reorganization, recapitalization, consolidation, share exchange, business combination or similar
transaction, including any single or multi-step transaction or series of related transactions involving the Company on one hand,
and any third Person, on the other hand, or the acquisition or purchase of fifty percent (50%) or more of the Company’s
assets, and any exchange offer that, if consummated, would result in a third Person beneficially owning fifty percent (50%) or
more of voting interests of the Company.

 

b.          From
the date hereof until the earlier of (i) the Closing or (ii) the termination of this Agreement, the Company and the Sellers shall
not intentionally, directly or indirectly, (A) solicit, assist, initiate or facilitate the making, submission or announcement
of, or encourage, any Acquisition Proposal, (B) furnish any non-public information regarding the Company to any Person or group
(other than a Party to this Agreement or their respective representatives) in connection with or in response to an Acquisition
Proposal, (C) engage or participate in discussions or negotiations with any Person or group with respect to, or that would reasonably
be expected to lead to, an Acquisition Proposal, (D) approve, endorse or recommend, or publicly propose to approve, endorse or
recommend, any Acquisition Proposal, or (E) negotiate or enter into any letter of intent, agreement in principle, acquisition
agreement or other similar agreement related to any Acquisition Proposal.

 

    	 	23	 

     

    

 

c.         The
Sellers or the Company shall notify the Buyer as promptly as practicable of the receipt by such Party of (i) any bona fide Acquisition
Proposal, and (ii) any request for non-public information relating to such Party in connection with respect to an Acquisition
Proposal specifying in the material terms and conditions thereof (including a copy thereof if in writing or a written summary
thereof if verbal) and the identity of the party making such inquiry, proposal, offer or request for information.

 

(iii)     Access.
From the date hereof until the earlier of the Closing or termination of this Agreement, each of the Company and Sellers shall
permit representatives of the Buyer upon reasonable prior written notice to have reasonable access during normal business hours
to all premises, properties, personnel, books, records, contracts, and documents of or pertaining to the Company.

 

(iv)     Preservation
of Business. From the date hereof until the earlier of the Closing or termination of this Agreement, each of the Company and
Sellers shall, and shall cause their respective Affiliates to, except as otherwise permitted by the terms of this Agreement, use
commercially reasonable efforts to operate the Company only in the Ordinary Course of Business and shall use reasonable commercial
efforts to preserve intact its business organization. From the date hereof until the earlier of the Closing or termination of
this Agreement, the Company may not incur any material indebtedness or material liabilities outside of its Ordinary Course of
Business without the written consent of Buyer, which consent will not be unreasonably withheld, conditioned or delayed. Notwithstanding
the foregoing, Buyer agrees that Sellers shall be entitled to be paid or distributed all of the Company’s Cash and Cash
Equivalents and the Company shall be entitled to make one or more distributions of Cash and Cash Equivalents on or prior to Closing.

 

(v)       Notices.
From time to time prior to the Closing, the Sellers may notify Buyer with respect to any matter hereafter arising or any information
obtained after the date hereof that, if existing, occurring or known at or prior to the date of this Agreement, would have been
required to be disclosed in the Disclosure Schedules or that is necessary to the complete or correct any information in the Disclosure
Schedules or any representation of warranty of the Sellers or the Company that has been rendered inaccurate thereby, and the disclosure
relative to the Sellers’ and the Company’s representations and warranties shall be deemed modified and supplemented
as indicated in such notice for purposes of Section 8.

 

(vi)     Form
8-K; Registration Statement; Put Shares.

 

(A)      The
Buyer shall provide Sellers with a reasonable opportunity to review and be consulted on the Form 8-K and the Registration Statement
prior to making such filings with the SEC and on any SEC comments and Buyer responses thereto. Subject to the foregoing, the Buyer
shall file the Registration Statement with the SEC as soon as reasonably practicable after the date of this Agreement and use
its commercially reasonable best efforts to cause the Registration Statement to be declared effective as promptly as possible
after the filing thereof. Buyer shall keep the Registration Statement continuously
effective until either the Signing Shares and Break-Up Shares (if the Break-Up Shares are issued) (together, the “Put
Shares”) have been sold by Sellers or the Buyer’s transfer
agent has removed the restrictive legend on the Put Shares and the Put Shares remain freely tradable by Sellers pursuant to Rule
144 promulgated under the Securities Act. At
all times prior to the termination of Buyer’s obligation to issue the Break-Up Shares
pursuant to the Warrants, Buyer shall take all action necessary to reserve and keep available out of its authorized and
unissued Common Stock a number of shares of Common Stock sufficient permit Buyer to issue (free of preemptive rights) the Break-Up
Shares.

 

    	 	24	 

     

    

 

(B)       If
the Registration Statement shall not have been declared effective by the ninetieth (90th) day following the date of
this Agreement (the “Put Date”), each Seller shall have the right, upon written notice to Buyer delivered at
any time prior to Sellers’ receipt of the Market Option Notice, to require the Buyer to repurchase any or all of the Put
Shares at the Price Per Share. Buyer shall purchase and pay for such Put Shares in cash, payable by wire transfer or delivery
of other immediately available funds to an account or accounts designated by the selling Sellers, upon delivery to Buyer of the
stock certificate(s) evidencing, and executed stock power(s) for, such Put Shares.

 

(C)       If
the Registration Statement shall not have been declared effective by the Put Date, then on such date as either (1) the Registration
Statement becomes effective and the Put Shares are freely tradable by Sellers pursuant to the Registration Statement, or (2) the
Buyer’s transfer agent has removed the restrictive legend on the Put Shares and the Put Shares are freely tradable by Sellers
pursuant to Rule 144 promulgated under the Securities Act, Buyer shall notify Sellers in writing thereof (the “Market
Option Notice”) and the Buyer shall be obligated to pay to each Seller the Make Whole Amount as provided herein. The
“Make Whole Amount” means, for each Put Share sold during the Make Whole Period, the following amount, if positive:
(a) the Price Per Share minus (b) the net proceeds (i.e., net of broker commissions and fees) realized by such Seller on the sale
of each such Put Share (“Market Option Proceeds”) that is sold within thirty (30) Trading Days after the Sellers’
receipt of the Market Option Notice (which shall be extended for any period after the Market Option Notice that the Put Shares
become not freely tradable for any reason) (the “Make Whole Period”). Buyer shall pay the Make Whole Amount
to each Seller in cash, payable by wire transfer or delivery of other immediately available funds to an account or accounts designated
by such Seller, upon notice to Buyer of such Seller’s Market Option Proceeds.

 

(b)       Further
Assurances. In case at any time after the Closing any further actions are necessary to carry out the purposes of this Agreement,
each of the Parties will take such further actions (including the execution and delivery of such further instruments and documents)
as any other Party may reasonably request, all at the sole cost and expense of the requesting Party (unless the requesting Party
is entitled to indemnification therefor under Section 8 below).

 

(c)      Restrictive
Covenants. Each Seller specified on Schedule 6(c)(i) hereto agrees, for the lesser of three (3) years from and after
the Closing Date or the longest time permitted by applicable law, and each Seller specified on Schedule 6(c)(ii) hereto
(together with each Seller specified on Schedule 6(c)(i) hereto, a “Restricted Seller”) agrees, for
the lesser of one (1) year from and after the Closing Date or the longest time permitted by applicable law, as follows:

 

(i)      Such
Restricted Seller shall not engage, anywhere in the United States, in any business that is competitive with the Business as conducted
on the Closing Date;

 

    	 	25	 

     

    

 

(ii)      Such
Restricted Seller shall not solicit any sales representative, supplier, vendor, customer, prospective
customer, lessor or service provider to discontinue such relationship with Buyer; and

 

(iii)     Such
Restricted Seller shall not solicit for employment or employ any
employee of Buyer; provided the foregoing shall not apply to any employee solicited or employed as a result of general
employment solicitation or use of placement agencies.

 

Each
Seller acknowledges and agrees that the Buyer would be damaged irreparably in the event any of the provisions of this Section
6(c) is not performed in accordance with its specific terms or is otherwise breached. Accordingly, each Seller agrees that
the Buyer shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Section 6(c)
and to enforce specifically the terms and provisions hereof in any action instituted in any court in the United States or in any
state having jurisdiction over the parties and the matter in addition to any other remedy to which it may be entitled pursuant
hereto or otherwise at law or in equity.

 

(d)      Confidentiality.
As a further inducement for Buyer to enter into this Agreement, each Seller agrees that for the longest period permitted by law
after the Closing Date, each Seller shall hold in strictest confidence, and not, without the prior written approval of Buyer,
disclose to any Person other than Buyer (other than as required by law) any Confidential Information.

 

(e)       Employee
Matters.

 

(i)       Buyer
agrees that Buyer shall cause the Company to provide the Company’s employees with (i) base salary or wage rates, equity
compensation, incentive compensation opportunity and other cash compensation that, in the aggregate, are not less than those in
effect for such employees immediately prior to the Closing Date; and (ii) employee benefits (including retirement benefits) that,
in the aggregate, are no less favorable in the aggregate than those provided to the Company’s employees immediately prior
to the Closing Date. With respect to any employee benefits that are provided to Company’s employees after the Closing, service
accrued by such employees during employment with the Company prior to the Closing Date shall be recognized for all purposes to
the same extent recognized by the Company immediately prior to the Closing Date. With respect to any medical, dental or other
welfare benefits that are provided at any time to the Company’s employees after the Closing, any applicable pre-existing
condition exclusions and waiting periods (except to the extent such limitations or waiting periods are already in effect with
respect to such employees and have not been satisfied immediately prior to the Closing Date) shall be waived, and such employees
shall be provided with credit for any co-payments and deductibles paid prior to the Closing Date in satisfying any applicable
deductible or out-of-pocket requirements under any welfare plans that such employees are eligible to participate in after the
Closing Date.

 

(ii)       Buyer
agrees to,
and shall cause the Company to, honor
in accordance with their terms, all employment, severance
and other incentive agreements, plans and arrangements,
postretirement medical, dental and life insurance arrangements
and all supplemental pension plans, as amended through the date hereof, for the benefit of any employees
and former employees of the Company, each of which is set forth on Section 6(e) of the Disclosure Schedule. 

 

    	 	26	 

     

    

 

(f)        Inspection
of Records. Sellers, Buyer and their respective Affiliates shall each retain and make their respective books and records (including
work papers in the possession of their respective accountants) relating to the Company available for inspection by the other Parties,
or by their duly accredited representatives, for reasonable business purposes at all reasonable times during normal business hours,
for a seven (7) year period after the Closing Date, with respect to all transactions of the Company occurring prior to and those
relating to the Closing, and the historical financial condition, assets, liabilities, operations and cash flows of the Company.
In the case of records owned by a Seller, such records shall be made available at such Seller’s executive offices, and in
the case of records owned by Buyer, such records shall be made available at Buyer’s executive office. As used in this subsection,
the right of inspection includes the right to make extracts or copies. The representatives of a Party inspecting the records of
the other Party shall be reasonably satisfactory to the other Party. If a Seller shall desire to dispose of such books and records
or any portions thereof prior to the expiration of such seven (7) year period, such Seller shall, prior to such disposition, give
Buyer a reasonable opportunity, at Buyer’s expense, to remove or make copies of such books and records or portions thereof.
No Seller shall be required to retain originals or copies of any books and records delivered to Buyer in connection with the transactions
contemplated by this Agreement.

 

(g)       Tax
Matters.

 

(i)        Tax
Returns. Sellers shall prepare and file, or cause to be prepared and filed, all Tax Returns for the Company for all periods
ending on or before the Closing Date. Buyer shall prepare and file, or cause to be prepared and filed, all Tax Returns for the
Company for all periods ending after the Closing Date. In the case of Tax Returns filed by Buyer for periods starting on or before
the Closing Date and ending after the Closing Date, Buyer shall provide Sellers with an opportunity to review and comment on such
Tax Returns no less than thirty (30) days prior to the due date thereof. Buyer shall make, or cause to be made, any changes to
such Tax Returns reasonably requested by Sellers. As soon as practicable, but in any event within fifteen (15) days after either
Sellers’ or Buyer’s request, as the case may be, Buyer shall deliver to Sellers or Sellers shall deliver to Buyer,
as the case may be, such information and other data relating to the Tax Returns and Taxes of the Company and shall provide such
other assistance as may reasonably be requested, to cause the completion and filing of all Tax Returns or to respond to audits
by any taxing authorities with respect to any Tax Returns or taxable periods or to otherwise enable Sellers, Buyer or the Company
to satisfy their accounting or Tax requirements. 

 

(ii)       Contests.
Whenever any taxing authority asserts a claim, makes an assessment, or otherwise disputes the amount of Taxes for which Sellers
are or may be liable, Buyer shall promptly inform Sellers, and Sellers shall have the right to control any resulting proceedings
and to determine whether and when to settle any such claim, assessment or dispute to the extent such proceedings or determinations
affect the amount of Taxes for which any Seller may be liable. Whenever any taxing authority asserts a claim, makes an assessment
or otherwise disputes the amount of Taxes for which Buyer is liable, Buyer shall have the right to control any resulting proceedings
and to determine whether and when to settle any such claim, assessment or dispute, except to the extent such proceedings affect
the amount of Taxes for which Sellers are liable.

 

    	 	27	 

     

    

 

(iii)      Survival
of Obligations. The obligations of the parties set forth in this Section 6(g) shall be unconditional and absolute,
and shall remain in effect until the expiration of the applicable statute of limitations.

 

(h)       Release.
Effective upon the Closing, each of Buyer, the Company, on its own behalf and on behalf of its successors and assigns (the “Company
Releasing Parties”), hereby fully releases, remises, acquits and discharges forever, irrevocably and unconditionally,
each of the Sellers and the Seller Representative, and their respective past, present and future parents, subsidiaries, Affiliates,
related parties, successors and assigns, and their past, present and future directors, officers, stockholders, partners, members,
employees, agents, attorneys, representatives, successors, beneficiaries, heirs and assigns (collectively, the “Company
Released Parties”) from, against and with respect to any and all actions, agreements, causes of action, complaints,
charges, claims, covenants, contracts, costs, damages, demands, debts, defenses, duties, expenses, fees, injuries, interest, judgments,
liabilities, losses, obligations, penalties, promises, reimbursements, remedies, suits, sums of money and torts of any kind and
nature whatsoever, whether in law, equity or otherwise, direct or indirect, fixed or contingent, foreseeable or unforeseeable,
liquidated or unliquidated, known or unknown, matured or unmatured, absolute or contingent, determined or determinable (collectively,
the “Released Claims”), which any of the Company Releasing Parties ever had or now has, or may hereafter have
or acquire, against the Company Released Parties for or by reason of any matter, cause or thing whatsoever; provided, however,
that this Section 6(h) will not be construed to release any of the Company Released Parties
from his, her or its obligations under this Agreement or the other Transaction Documents.

 

(i)        Indemnification
of Managers and Officers.

 

(i)       After
the Closing, Buyer and the Company shall, jointly and severally, indemnify and hold harmless each present (as of the Closing)
or former officer, manager, director, employee, investor or consultant of the Company (the “D&O Indemnified Persons”),
against all Adverse Consequences incurred in connection with any claim, action, proceeding or investigation, whether civil, criminal,
administrative or investigative, arising out of or pertaining to (A) the fact that the D&O Indemnified
Person is or was an officer, manager, director, employee, investor or consultant of the Company and (B) matters existing or occurring
at or prior to the Closing (including this Agreement and the transactions and actions contemplated hereby), whether asserted or
claimed prior to, at or after the Closing, to the fullest extent permitted under applicable law. Each D&O Indemnified Person
will be entitled to advancement of expenses incurred in the defense of any claim, action, proceeding or investigation from Buyer
or the Company within ten (10) business days of receipt by Buyer or the Company from the D&O Indemnified Person of a request.

 

(ii)      To
the fullest extent permitted by applicable law, Buyer shall, and shall cause the Company to, honor all of its obligations to indemnify
(including any obligations to advance funds for expenses) the D&O Indemnified Persons for acts or omissions by such D&O
Indemnified Persons occurring prior to the Closing to the extent that such obligations of the Company exist on the date of this
Agreement, whether pursuant to its certificate of formation and limited liability company agreement, indemnity or indemnification
agreements, board (or similar governing body) resolution or otherwise, and such obligations shall survive the Closing and shall
continue in full force and effect in accordance with the terms of the certificate of formation and limited liability company agreement
of the Company, as the case may be, and such board (or similar governing body) resolutions or indemnity or indemnification agreements
from the Closing until the expiration of the applicable statute of limitations with respect to any claims against such D&O
Indemnified Persons arising out of such acts or omissions.

 

    	 	28	 

     

    

 

(iii)     Buyer
shall cause the Company to maintain in effect (A) in its certificate of formation and limited liability
company agreement, the current provisions regarding elimination of liability of managers and, as applicable, indemnification of,
and advancement of expenses to, D&O Indemnified Persons and (B) the current policies of directors’ and officers’
liability insurance and fiduciary liability insurance maintained for the benefit of each Person who is now or has been prior to
the date hereof or who becomes prior to the Closing a D&O Indemnified Person of the Company (provided that the Company may
substitute policies of at least the same coverage and amounts containing terms and conditions which are, in the aggregate, no
less advantageous to the insured) with respect to claims arising from facts or events that occurred on or before the Closing.

 

(iv)     Notwithstanding
anything to the contrary herein, if any D&O Indemnified Person is entitled to be reimbursed or indemnified by any Person other
than the Buyer or the Company, such D&O Indemnified Person shall not be required to recover from or be indemnified by, or
to seek such recovery or indemnification from, any such other Person prior to or as a condition to being indemnified as described
in this Section 6(i). In the event that Buyer or the Company
or any of their respective successors or assigns (A) consolidates with or merges into any other Person
and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (B) transfers or conveys
all or substantially all of its properties and assets to any Person, then, and in each such case, proper provision shall be made
so that the successors or assigns of the Buyer or the Company, as the case may be, shall succeed to the obligations set forth
in this Section 6(i).

 

(v)      Subject
to the terms of this Section 6(i), Sellers each agree that, upon and effective as of the Closing, the limited liability
company agreement of Logicmark shall otherwise be terminated.

 

(j)       Special
Contract Matters. Buyer agrees that it shall not directly or indirectly take any action, or fail to take any action, that
would, or would reasonably be expected to, result in any liability to any Seller hereunder for a breach of the Special Contract
Representation. Buyer shall promptly notify the Seller Representative of any audit, investigation, proceeding, hearing, claim
or other action arising out of or pertaining to the Special Contract. The Seller Representative will have the right to assume
and control the response to and defense of such matter and Buyer shall fully cooperate with the Seller Representative therein.
Such cooperation shall include access during normal business hours afforded to the Seller Representative and its agents and representatives
to, and reasonable retention by the Seller Representative of, records and information and making employees available on a reasonably
convenient basis.

 

    	 	29	 

     

    

 

7.       Conditions
to Obligation to Close.

 

(a)       Conditions
to Buyer’s Obligation. Buyer’s obligation to consummate the transactions to be performed by it in connection
with the Closing is subject to satisfaction of the following conditions:

 

(i)       Sellers
shall have delivered to Buyer the instruments and documents referred to in Section 2(d);

 

(ii)      The
Parties shall have received all authorizations, consents and approvals of governments and governmental agencies set forth on Schedule
7(a) attached hereto;

 

(iii)     Sellers
shall have delivered to Buyer the Escrow Agreement executed by Sellers who are party thereto;

 

(iv)     Sellers
shall have delivered to Buyer the Employment Agreement between Buyer and Kevin O’Connor in the form attached hereto as Exhibit
E (the “Employment Agreement”) executed by Kevin O’Connor;

 

(v)      Sellers
shall have delivered to Buyer the Consulting Agreement among Buyer and William Vranek in the form attached hereto as Exhibit
F (the “Consulting Agreement”) executed by William Vranek;

 

(vi)     Sellers
shall have delivered to Buyer copies of the certificate of formation of the Company certified on or soon before the Closing Date
by the Secretary of State of the State of Delaware;

 

(vii)    Sellers
shall have delivered to Buyer copies of the certificate of good standing of the Company issued on or soon before the Closing Date
by the Secretary of State of the State of Delaware;

 

(viii)   Sellers
shall have delivered to Buyer an executed amendment to the Company’s existing Lease with EZ Watch Acquisition, LLC permitting
Buyer to terminate such Lease at any time after six (6) months after the Closing Date without penalty upon thirty (30) days written
notice to the landlord and with no other material changes to such Lease;

 

(ix)      Sellers
shall have delivered to Buyer evidence of release of all Liens on the assets and properties of the Company for Indebtedness set
forth on Section 3(g) of the Disclosure Schedule, subject to full payment pursuant to the payoff letter with respect to
such Indebtedness;

 

(x)       Sellers
shall have delivered to Buyer a certificate of the secretary or an assistant secretary of the Company, dated the Closing Date,
in form and substance reasonably satisfactory to Buyer, as to: (A) no amendments to the certificate of formation of the Company
since the date specified in clause (vii) above; (B) the limited liability company agreement of the Company; and (C) any resolutions
of the managers of the Company relating to this Agreement and the transactions contemplated hereby;

 

    	 	30	 

     

    

 

(xi)      The
representations and warranties of the Sellers and the Company contained in this Agreement shall be true in all respects, on and
as of the Closing Date, with the same force and effect as though made on and as of the Closing Date (except to the extent expressly
made as of an earlier date, in which case at and as of such date), except where the failure to be true, individually or in the
aggregate, has not had and would not reasonably be expected to result in a Material Adverse Effect. The Sellers and the Company
shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be
performed or complied with by them on or prior to the Closing Date. The Company shall have delivered to the Buyer a certificate,
dated the Closing Date, to the foregoing effect;

 

(xii)     Since
the date of this Agreement, no action, suit or proceeding shall have been instituted by any governmental or regulatory body to
restrain, modify or prevent the carrying out of the transactions contemplated by this Agreement or to seek damages or a discovery
order in connection with such transactions, or which has or would reasonably be expected to have a Material Adverse Effect;

 

(xiii)    There
shall not have been any occurrence, event, incident, action, failure to act, or transaction since the date hereof that constitutes
a Material Adverse Effect;

 

(xiv)    Buyer
shall have received the proceeds of a financing in an amount sufficient to pay the Unadjusted Purchase Price due at Closing.

 

Buyer
may waive any condition specified in this Section 7(a) if it executes a writing so stating at or prior to the Closing.

 

(b)      Conditions
to Sellers’ Obligation. Sellers’ obligation to consummate the transactions to be performed by them in connection
with the Closing is subject to satisfaction of the following conditions:

 

(i)       Buyer
shall have paid the Unadjusted Purchase Price as provided in Section 2(b);

 

(ii)      Buyer
shall have delivered to Sellers the instruments and documents referred to in Section 2(d);

 

(iii)     The
Parties shall have received all authorizations, consents, and approvals of governments and governmental agencies set forth on
Schedule 7(b) attached hereto;

 

(iv)     Buyer
shall have delivered to Sellers the Escrow Agreement executed by Buyer and Escrow Agent;

 

(v)      Buyer
shall have delivered to Sellers the Employment Agreement executed by Buyer;

 

(vi)     Buyer
shall have delivered to Sellers the Consulting Agreement executed by Buyer;

 

    	 	31	 

     

    

 

(vii)    Buyer
shall have delivered to Sellers copies of the charter or other organizational document of Buyer certified on or soon before the
Closing Date by the Secretary of State of Buyer’s organization;

 

(viii)   Buyer
shall have delivered to Sellers copies of the certificate of good standing of Buyer issued on or soon before the Closing Date
by the Secretary of State of the State of Buyer’s state of organization;

 

(ix)      Buyer
shall have delivered to Sellers a certificate of the secretary or an assistant secretary of Buyer, dated the Closing Date, in
form and substance reasonably satisfactory to Seller, as to: (A) no amendments to the charter or other organizational document
of Buyer since the date specified in clause (vii) above; (B) the bylaws or limited liability company agreement of Buyer; and (C)
any resolutions of the directors or managers of Buyer relating to this Agreement and the transactions contemplated hereby;

 

(x)       The
representations and warranties of Buyer contained in this Agreement shall be true in all respects, on and as of the Closing Date,
with the same force and effect as though made on and as of the Closing Date (except to the extent expressly made as of an earlier
date, in which case at and as of such date), except where the failure to be true, individually or in the aggregate, has not had
and would not reasonably be expected to result in a material adverse effect on the assets, properties, business, operations or
condition (financial or otherwise) of Buyer. Buyer shall have performed and complied in all material respects with all covenants
and agreements required by this Agreement to be performed or complied with by it on or prior to the Closing Date. Buyer shall
have delivered to Sellers a certificate, dated the Closing Date, to the foregoing effect; and

 

(xi)      Since
the date of this Agreement, no action, suit or proceeding shall have been instituted by any governmental or regulatory body to
restrain, modify or prevent the carrying out of the transactions contemplated by this Agreement or to seek damages or a discovery
order in connection with such transactions, or which has or would reasonably be expected to have a materially adverse effect on
the assets, properties, business, operations or condition (financial or otherwise) of Buyer.

 

Seller
Representative may waive any condition specified in this Section 7(b) if it executes a writing so stating at or prior to
the Closing.

 

8.       Remedies
for Breaches of This Agreement.

 

(a)      Survival
of Representations and Warranties. All of the representations and warranties of the Company contained in Section
3 (other than Section 3(a) (Organization, Qualification, and Corporate Power), Section 3(b) (Authorization of
Transaction), Section 3(d) (Brokers’ Fees), Section 3(e) (Title to Assets) and Section 3(f) (Capitalization;
Subsidiaries)) shall survive the Closing hereunder (unless Buyer knew of any misrepresentation or breach of warranty at the time
of Closing) and continue in full force and effect until June 30, 2017. The representations and warranties of the Company contained
in the last sentence of Section 3(n) (the “Special Contract Representation”) shall survive the Closing
hereunder (unless Buyer knew of any misrepresentation or breach of warranty at the time of Closing) and continue in full force
and effect until December 31, 2017. All of the representations and warranties of Buyer contained in Section 5, each Seller
in Section 4 or of the Company in Section 3(a) (Organization, Qualification, and Corporate Power), Section 3(b)
(Authorization of Transaction), Section 3(d) (Brokers’ Fees), Section 3(e) (Title to Assets), and Section
3(f) (Capitalization; Subsidiaries) (collectively, the “Fundamental Representations”) shall survive the
Closing (unless the damaged Party knew of any misrepresentation or breach of warranty at the time of Closing) and continue in
full force and effect for a period of three (3) years following the Closing (subject to any applicable statute of limitations).

 

    	 	32	 

     

    

 

(b)      Indemnification
Provisions for Buyer’s Benefit.

 

(i)       In
the event Logicmark or a Seller breaches any of the Fundamental Representations or covenants contained herein, and provided that
Buyer makes a written claim for indemnification against Sellers pursuant to Section 9(g) within the survival period (if
there is an applicable survival period pursuant to Section 8(a)), then Sellers shall indemnify Buyer from and against any
Adverse Consequences Buyer shall suffer (but excluding any Adverse Consequences Buyer shall suffer after the end of any applicable
survival period) caused proximately by such breach. In the event Logicmark or a Seller breaches any of its representations or
warranties contained herein (other than a Fundamental Representation), and provided that Buyer makes a written claim for indemnification
against Sellers pursuant to Section 9(g) within the survival period (if there is an applicable survival period pursuant
to Section 8(a)), then, subject to the limitations set forth in this Section 8, Sellers shall indemnify Buyer from
and against any Adverse Consequences Buyer shall suffer (but excluding any Adverse Consequences Buyer shall suffer after the end
of any applicable survival period) caused proximately by such breach; provided, however, that Sellers shall not have any obligation
to indemnify Buyer from and against any Adverse Consequences caused by such breach:

 

(A)      until
the aggregate amount of all Adverse Consequences exceeds $100,000 in the aggregate (the “Deductible”) (after
which point Sellers will be obligated to indemnify Buyer from and against all such Adverse Consequences in excess of the Deductible);
provided the Deductible shall not apply to the Special Contract Representation; and

 

(B)       to
the extent the Adverse Consequences Buyer has suffered by reason of all such breaches exceed an aggregate ceiling equal to the
Escrow Amount (after which point Sellers will have no obligation to indemnify Buyer from and against further such Adverse Consequences).

 

(ii)      Notwithstanding
anything to the contrary herein (other than in the case of fraud, criminal activity or willful misconduct or with respect to the
Fundamental Representations):

 

(A)      In
no event shall Buyer be entitled to recover (1) more than the amount of cash then in the Escrow
Account or (2) Adverse Consequences from any source other than the Escrow Account.

 

    	 	33	 

     

    

 

(B)       With
respect to each Seller, the Buyer shall only be entitled to recover from the Escrow Account (with respect to all breaches of the
representations and warranties made by such Seller in Section 4 or the Company in Section
3) up to an amount equal to the product of the Escrow Amount multiplied by such Seller’s Pro Rata Share.

 

(C)       In
no event shall Buyer be entitled to recover any amount of Adverse Consequences for any inaccuracy
in or breach of any representation or warranty contained herein if Buyer knew of such inaccuracy or breach at or prior
to the time of Closing.

 

(iii)     Notwithstanding
anything to the contrary herein, the maximum aggregate liability of each Seller for Adverse Consequences arising out of or resulting
from claims hereunder shall be the net cash amount of the Purchase Price actually received by such Seller hereunder.

 

(c)       Indemnification
Provisions for Seller’s Benefit. In the event Buyer breaches any of its representations, warranties or covenants contained
herein, and provided that a Seller makes a written claim for indemnification against Buyer pursuant to Section 9(g) within
the survival period (if there is an applicable survival period pursuant to Section 8(a)), then Buyer shall indemnify Sellers
from and against the entirety of any Adverse Consequences suffered by Sellers (but excluding any Adverse Consequences suffered
after the end of any applicable survival period) that is caused proximately by such breach.

 

(d)      Matters
Involving Third Parties.

 

(i)        If
any third party shall notify any Party (the “Indemnified Party”) with respect to any matter (a “Third-Party
Claim”) which may give rise to a claim for indemnification against any other Party (the “Indemnifying Party”)
under this Section 8, then the Indemnified Party shall promptly (and in any event within five (5) business days after receiving
notice of the Third-Party Claim) notify each Indemnifying Party thereof in writing.

 

(ii)      Any
Indemnifying Party will have the right at any time to assume and thereafter conduct the defense of the Third-Party Claim with
counsel of his, her, or its choice; provided, however, that the Indemnifying Party will not consent to the entry of any judgment
or enter into any settlement with respect to the Third-Party Claim without the prior written consent of the Indemnified Party
(not to be unreasonably conditioned, delayed or withheld) unless the judgment or proposed settlement involves only the payment
of money damages and does not impose an injunction or other equitable relief upon the Indemnified Party.

 

(iii)     Unless
and until an Indemnifying Party assumes the defense of the Third-Party Claim as provided in Section 8(d)(ii), however,
the Indemnified Party may defend against the Third-Party Claim in any manner the Indemnified Party may reasonably deem appropriate.
If the Indemnifying Party assumes the defense of a Third Party Claim, the fees and expenses of counsel chosen by the Indemnifying
Party shall be paid from the Escrow Amount and the Indemnified Party shall have the right to participate in but not control such
defense through counsel chosen by the Indemnified Party; provided that the fees and expenses of such counsel shall be borne
by the Indemnified Party.

 

    	 	34	 

     

    

 

(iv)     In
no event will the Indemnified Party consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party
Claim without the prior written consent of the Indemnifying Party (not to be unreasonably conditioned, delayed withheld).

 

(v)      The
Indemnified Party shall cooperate in all reasonable respects with the Indemnifying Party and its attorneys in the investigation,
trial and defense of any Third Party Claim and any appeal arising therefrom and shall furnish such records, information and testimony,
and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection
therewith. Such cooperation shall include access during normal business hours afforded to the Indemnifying Party and its agents
and representatives to, and reasonable retention by the Indemnified Party of, records and information which have been identified
by the Indemnifying Party as being reasonably relevant to such Third Party Claim, and making employees available on a reasonably
convenient basis to provide additional information and explanation of any material provided hereunder.

 

(e)       Determination
of Adverse Consequences.

 

(i)       All
indemnification payments under this Section 8 shall be paid by the Indemnifying Party net of any Tax benefits and insurance
coverage actually received by the Indemnified Party. All indemnification payments under this Section 8 shall be deemed
adjustments to the Purchase Price.

 

(ii)      In
no event shall any Party hereunder be liable to another Party hereunder (including, without limitation, liability to indemnify
such other Party) for punitive, special, exemplary, incidental, unforeseen or consequential damages (including, without limitation,
for lost profit or revenue) or for any multiple of damages or any multiple of earnings or EBITDA.

 

(iii)     In
no event shall any Adverse Consequences be recoverable under this Section 8 for any breach, inaccuracy, nonfulfillment
or failure to perform under one Section or provision of this Agreement to the extent any Party or Indemnifying Party has already
made payment, or any Party or Indemnified Party has already received payment, in respect of the matter giving rise to such Adverse
Consequences under another Section or provision of this Agreement (including any amounts that would otherwise have constituted
Adverse Consequences but were taken into account in determining the Purchase Price pursuant to Sections 2(e) and 2(f)).
The Indemnified Party shall not be entitled to indemnification for any Adverse Consequences to the extent reflected or accrued
in the calculation of the Closing Date Net Working Capital.

 

(iv)     No
Indemnifying Party shall be liable (A) for any Adverse Consequences that is contingent unless and until such contingent Adverse
Consequences become an actual liability and is due and payable or (B) to pay any amount in discharge of a claim under this Section
8 unless and until the Adverse Consequences in respect of which the claim is made has become due and payable.

 

(v)      Notwithstanding
anything to the contrary contained herein, upon the Indemnified Party becoming aware of any claim as to which indemnification
may be sought by the Indemnified Party, Indemnified Party shall utilize all reasonable efforts, consistent with normal practices
and policies and good commercial practice, to mitigate any Adverse Consequences (including, without limitation, by pursuing available
insurance coverages and indemnification from third parties), and any Adverse Consequences to the extent directly resulting from
such Indemnified Party’s failure to comply with the foregoing shall be excluded from the Adverse Consequences recoverable
by such Indemnified Party from the Indemnifying Party hereunder.

 

    	 	35	 

     

    

 

(f)       Exclusive
Remedy. The Parties acknowledge and agree that the foregoing indemnification provisions in this Section 8
shall be the exclusive remedy of the Parties under this Agreement, the negotiation and execution of this Agreement, the performance
by the Parties of their respective obligations hereunder, and the transactions contemplated by this Agreement (other than claims
arising from fraud, criminal activity or willful misconduct on the part of a Party in connection with the transactions contemplated
by this Agreement), except as set forth in Section 6(c). Buyer may not avoid the limitations on liability, recovery and
recourse set forth in this Section 8 by seeking damages for breach of contract, tort or pursuant to any other theory or
liability.

 

(g)      Recoupment
Against Escrow Agreement.

 

(i)       Other
than in the case of fraud, criminal activity or willful misconduct, any indemnification or other amounts to which Buyer is entitled
under or related to this Agreement, including any Adverse Consequences it may suffer as a result of the breach of any representation,
warranty or covenant of Sellers contained herein, shall be recoverable solely from the Escrow Amount (which shall be Buyer’s
sole source of recovery and recourse with respect to Adverse Consequences arising from breaches of Seller’s representations
and warranties, other than Fundamental Representations) in accordance with the terms of the Escrow Agreement.

 

(ii)      When
determining the amounts payable to Buyer under this Section 8 (and distributable to the Sellers under the Escrow Agreement),
it is hereby agreed that: (i) the escrow account established under the Escrow Agreement (the “Escrow
Account”) shall be comprised of multiple sub-accounts so that each Seller shall be deemed to have its own account with
an initial balance equal to the product of the Escrow Amount multiplied by such Seller’s Pro Rata Share (such amount with
respect to each Seller is referred to as, the “Escrow Account Portion”); (ii) if amounts are to be disbursed
from the Escrow Account (other than amounts to be disbursed as a result of a breach of a representation or warranty of such Seller
in  Section 4), then the amount to be disbursed shall be allocated among each of the Sellers
pro rata based upon each such Seller’s Pro Rata Share and the Escrow Account Portion of each Seller (if any) shall be reduced
by an amount equal to the product of the amount of such disbursement multiplied by such Seller’s Pro Rata Share (or such
lesser amount that is equal to such Seller’s Escrow Account Portion) and distributed to Buyer; and (iii) if amounts
are to be disbursed from the Escrow Account as a result of a breach of a covenant by a Seller or breach of a representation or
warranty of such Seller in Section 4, then the Escrow Account Portion of such Seller (if any), but not any other Seller,
shall be reduced by such amount (or such lesser amount that is equal to such Seller’s Escrow Account Portion) and distributed
to Buyer.

 

(h)      Purchase
Price Adjustment. Notwithstanding anything to the contrary herein, no Seller shall be obligated to indemnify Buyer against
any Adverse Consequences as a result of, or based upon or arising from, any claim or liability (i) that was known by Buyer at
or prior to the time of Closing or, (ii) to the extent unknown at or prior to the time of Closing, to the extent such claim or
liability is taken into account in determining the Purchase Price, including any adjustment to the Unadjusted Purchase Price pursuant
to Sections 2(e) and 2(f).

 

    	 	36	 

     

    

 

9.      Miscellaneous.

 

(a)      Press
Releases and Public Announcements. No Party shall issue any press release or make any public announcement relating to the
subject matter of this Agreement without the prior written approval of Buyer and Seller, except as may be required by applicable
law, rule or regulation, in which case the disclosing party shall notify the other party at least one (1) business day prior to
making any required disclosure.

 

(b)      No
Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and
their respective successors and permitted assigns.

 

(c)       Entire
Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the Parties
and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent
they relate in any way to the subject matter hereof; provided, however, that nothing herein shall void or otherwise relieve Buyer
from its obligations under that certain Confidentiality Agreement dated September 9, 2015 and joinder thereto dated September
30, 2015, which shall remain in full force and effect after Closing in accordance with the terms thereof.

 

(d)       Succession
and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or any of his, her, or its rights, interests, or obligations
hereunder without the prior written approval of Buyer and Seller Representative.

 

(e)       Counterparts.
This Agreement may be executed in one or more counterparts (including by means of facsimile or email of a .pdf copy), each of
which shall be deemed an original but all of which together will constitute one and the same instrument.

 

(f)        Headings.
The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

    	 	37	 

     

    

 

(g)       Notices.
All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given (i) when delivered personally to the recipient, (ii) one (1) business
day after being sent to the recipient by reputable overnight courier service (charges prepaid), (iii) one (1) business day after
being sent to the recipient by facsimile transmission or electronic mail (with confirmation of transmission), or (iv) four (4)
business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid,
and addressed to the intended recipient as set forth below:

  

	If
    to Sellers:	c/o
    Logicmark, LLC
	 	1359
    Barclay Boulevard
	 	Buffalo
    Grove, Illinois 60089
	 	Email:	swuellner@promusequity.com
	 	 	bnagler@gen3cap.com
	 	Attn:	Sarah
    Wuellner
	 	 	Brandon
    Nagler
	 	 	 
	Copy
    to:	Patzik,
    Frank & Samotny Ltd.
	 	150
    South Wacker Drive, Suite 1500
	 	Chicago,
    Illinois 60606
	 	Email:	apatzik@pfs-law.com
	 	Attn:	Alan
    B. Patzik, Esq.
	 	 	 
	If
    to Seller	 	 
	Representative:	Logicmark
    Investment Partners, LLC
	 	1359
    Barclay Boulevard
	 	Buffalo
    Grove, Illinois 60089
	 	Email:	swuellner@promusequity.com
	 	 	bnagler@gen3cap.com
	 	Attn:  	Sarah
    Wuellner
	 	 	Brandon
    Nagler
	 	 	 
	Copy
    to:	Patzik, Frank & Samotny Ltd.
		150 South Wacker Drive, Suite 1500 
	 	Chicago, Illinois 60606
	 	Email:	apatzik@pfs-law.com
	 	Attn:	Alan
    B. Patzik, Esq.
	 	 	 
	If
    to Buyer:	Nxt-ID,
    Inc.
	 	285
    North Drive, Suite D
	 	Melbourne,
    FL 32934
	 	Email:	gino@nxt-id.com
	 	Attn:	Gino
    Pereira
	 	 	 
	Copy
    to:	Robinson
    Brog Leinwand Greene Genovese & Gluck P.C.
	 	875
    3rd Avenue, 9th Floor
	 	New York, NY 10022
	 	Email:	ded@robinsonbrog.com
	 	Attn:
    	David
    E. Danovitch, Esq.

 

Any
Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered
by giving the other Parties notice in the manner herein set forth.

 

    	 	38	 

     

    

 

(h)      Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without
giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware.

 

(i)       Amendments
and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed
by Buyer and Seller Representative (on behalf of Sellers). No waiver by any Party of any provision of this Agreement or any default,
misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall
be in writing and signed by the Party making such waiver nor shall such waiver be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

 

(j)       Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

 

(k)      
Expenses. The Parties will each bear their own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby. Without limiting the generality of the foregoing,
all transfer, documentary, sales, use, stamp, registration and other such Taxes, and all conveyance fees, recording charges
and other fees and charges (including any penalties and interest) incurred in connection with the consummation of the
transactions contemplated by this Agreement shall be paid by Buyer when due, and Buyer shall, at its own expense, file all
necessary Tax Returns and other documentation with respect to all such Taxes, fees and charges, and, if required by
applicable law, the Parties will, and will cause their Affiliates to, join in the execution of any such Tax Returns and other
documentation. Buyer acknowledges and understands that all fees and expenses incurred by the Company in connection with the
transactions contemplated hereby shall be paid by the Company.

 

(l)        Construction.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this
Agreement.

 

(m)      Incorporation
of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and Schedules identified in this Agreement are incorporated herein
by reference and made a part hereof. For the purposes of this Agreement, any matter that is disclosed in a particular Schedule
(including any Disclosure Schedule) to this Agreement shall be deemed to have been included in the other Schedules,
notwithstanding the omission of a cross reference thereto, so long as the relevance of such matter to such other Schedules
is reasonably apparent. Disclosure of any fact or item in any Schedule shall not necessarily mean that such fact or item is material
to the Company. In particular, (i) certain matters may be disclosed on Schedules
that may not be required to be disclosed because of certain minimum thresholds or materiality standards set forth in this Agreement,
(ii) the disclosure of any such matter does not mean that it meets or surpasses any such minimum
thresholds or materiality standards and (iii) no disclosure in Schedules
relating to any possible breach or violation of any Contract or law shall be construed as an admission or indication that any
such breach or violation exists or has actually occurred. In no event shall the listing of such matters in any Schedule be deemed
or interpreted to expand the scope of Seller’s representations and warranties contained in this Agreement. Each Schedule
is qualified in its entirety by reference to specific provisions of the Agreement and does not constitute, and shall not be construed
as constituting, representations, warranties or covenants of a Party, except as and to the extent provided in this Agreement.
Matters reflected in a Schedule are not necessarily limited to matters required by this Agreement to be disclosed in such Schedules.

 

    	 	39	 

     

    

 

(n)       Disclosure.
The Parties hereby acknowledge and agree that if, on or before the Closing Date, Buyer or any of its representatives, has actual
knowledge of any violation or breach by the Company or any Seller of any representation, warranty, covenant, obligation or agreement
contained in this Agreement or the Exhibits, Annexes and Schedules hereto, or the other documents,
instruments and certificates delivered hereunder and thereunder, then Buyer shall be deemed to have waived such violation or breach
and Buyer shall not be entitled to be indemnified pursuant to this Agreement, to sue for, or bring an arbitration claim for, damages
or to assert any other right or remedy for any Adverse Consequences arising from any matters relating to such violation or breach,
notwithstanding anything to the contrary contained herein or in any document, agreement, instrument or certificate delivered pursuant
hereto. Buyer shall be deemed to have actual knowledge of all documents and information provided or made available to any of them
in connection with this Agreement or the Exhibits, Annexes and Schedules hereto, or the other documents,
instruments and certificates delivered hereunder and thereunder, and the transactions contemplated hereby and thereby, including
without limitation, any information, document or material made available on CD-ROM, in certain “data rooms”, in management
presentations or in environmental reports.

 

(o)      Submission
to Jurisdiction. Each of the Parties submits to the exclusive jurisdiction of any state or federal court sitting in Chicago,
Illinois, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the
action or proceeding shall be heard and determined in any such court. Each of the Parties waives any defense of inconvenient forum
to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required
of any other Party with respect thereto. Each Party agrees that a final judgment in any action or proceeding so brought shall
be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or in equity.

 

(p)       Seller
Representative.

 

(i)       Each
Seller, for itself or himself and for its or his successors and assigns, hereby irrevocably makes, constitutes and appoints the
Seller Representative to act for and on behalf of such Seller with respect to any claim or matter arising under this Agreement,
the Escrow Agreement, and each other agreement, document, certificate and instrument to be executed by any Seller at or prior
to the Closing (the “Transaction Documents”), and the Seller Representative hereby accepts such appointment.
Each Seller acknowledges that the appointment of the Seller Representative is coupled with an interest and may not be revoked.

 

    	 	40	 

     

    

 

(ii)      In
furtherance of the appointment of the Seller Representative, each Seller, fully and without restriction: (A) agrees to be bound
by all notices given and received and agreements and determinations made by and documents executed and delivered by the Seller
Representative under the Transaction Documents; and (B) authorizes the Seller Representative to (1) deliver to Buyer all certificates
and documents to be delivered to Buyer by Sellers pursuant to the Transaction Documents, together with any certificates and documents
executed by Sellers and deposited with the Seller Representative for such purpose, (2) dispute or refrain from disputing any claim
made by Buyer under the Transaction Documents, (3) negotiate and compromise any dispute which may arise under the Transaction
Documents, (4) pay any amounts due Buyer from Sellers under the Transaction Documents, (5) exercise or refrain from exercising
any remedies available to Sellers under the Transaction Documents, (6) sign any releases or other documents with respect to any
such dispute or remedy, (7) waive any condition contained in the Transaction Documents, (8) give such notices and instructions
and do or refrain from doing such other things as the Seller Representative, in its sole discretion, deems necessary or appropriate
to carry out the provisions of the Transaction Documents, (9) petition the Escrow Agent for the release of any or all funds due
to Sellers under the Escrow Agreement and, subject to the Seller Representative's other responsibilities under this subsection,
pay to each Seller such Seller's Pro Rata Share of such funds, (10) receive all amounts payable by Buyer to Sellers under the
Transaction Documents on behalf of Sellers and, subject to the Seller Representative's other responsibilities under this subsection,
pay to each Seller such Seller's Pro Rata Share of such amounts, (11) pay out of funds coming into the hands of the Seller Representative
from Buyer or the Escrow Agent all fees and expenses of Sellers (and of the Seller Representative acting in such capacity) incurred
in connection with the transactions contemplated by the Transaction Documents, including the fees and expenses of counsel, accountants,
investment bankers and other professional advisors retained by or on behalf of Sellers in connection with such transactions, (12)
retain such counsel, accountants and other professional advisors as the Seller Representative reasonably deems necessary to assist
it in the performance of its duties hereunder and pay the fees, costs and expenses thereof out of the funds coming into the hands
of the Seller Representative and (13) retain out of funds coming into the hands of the Seller Representative from Buyer or the
Escrow Agent such amounts as the Seller Representative, in its sole discretion, deems appropriate to be held as reserves for expected
or potential future expenses or Liabilities of Sellers hereunder. Except for any obligations for which Sellers are severally,
but not jointly, liable, payments made by the Seller Representative under this subsection will be considered to be paid by all
Sellers in accordance with their respective Pro Rata Shares.

 

(iii)     If
the Seller Representative resigns, ceases to be a legal entity, dies or becomes incapacitated, its or his successor will be appointed
within fifteen (15) days of such event by Sellers owning a majority of the Interests immediately prior to the Closing. The decisions
and actions of any successor Seller Representative will be, for all purposes, those of the Seller Representative as if originally
named herein. The death or incapacity of any Seller will not terminate the authority and agency of the Seller Representative.
Any successor Seller Representative will provide Buyer with prompt written notice of its or his appointment.

 

(iv)     Buyer
will be entitled to rely exclusively upon any communication given or other action taken by the Seller Representative and will
not be liable to Sellers or any other Person for any action taken or not taken in reliance upon the Seller Representative. Buyer
will not be obligated to inquire as to the authority of the Seller Representative with respect to the taking of any action that
the Seller Representative takes on behalf of Sellers.

 

    	 	41	 

     

    

 

(v)      Sellers
will, severally and not jointly in accordance with their respective Pro Rata Shares, indemnify the Seller Representative and hold
it or him harmless against any and all Adverse Consequences incurred without gross negligence or bad faith on the part of the
Seller Representative and arising out of or in connection with its or his duties as the Seller Representative.

 

(q)      Legal
Representation. Buyer agrees that, following the Closing, Patzik, Frank & Samotny Ltd. may serve as counsel to the Sellers,
Seller Representative and its Affiliates in connection with any matters related to this Agreement and the transactions contemplated
hereby, including any litigation, claim or obligation arising out of or relating to this Agreement or the transactions contemplated
by this Agreement, notwithstanding any representation by Patzik, Frank & Samotny Ltd. prior to the Closing of the Company
and any Sellers. Buyer and the Company hereby (i) waive any claim they have or may have that Patzik, Frank & Samotny Ltd.
has a conflict of interest or is otherwise prohibited from engaging in such representation and (ii) agree that, in the event that
such a dispute arises after the Closing between Buyer or any the Company and a Seller, the Seller Representative or any of its
Affiliates, Patzik, Frank & Samotny Ltd. may represent such Seller, the Seller Representative or any of its Affiliates in
such dispute even though the interests of such Person(s) may be directly adverse to Buyer or the Company and even though Patzik,
Frank & Samotny Ltd. may have represented the Company in a matter substantially related to such dispute. Buyer represents
that Buyer's own attorney has explained and helped Buyer evaluate the implications and risks of waiving the right to assert a
future conflict against Patzik, Frank & Samotny Ltd., and Buyer’s consent with respect to this waiver is fully informed.
Buyer and the Company also further agree that, as to all communications among Patzik, Frank & Samotny Ltd. and any of the
Company, Sellers and/or any Seller's Affiliates and representatives, that relate in any way to the transactions contemplated by
this Agreement, the attorney-client privilege and the expectation of client confidence belongs to the Seller Representative and
may be controlled by the Seller Representative and will not pass to or be claimed by Buyer or the Company. In addition, all of
the client files and records in the possession of Patzik, Frank & Samotny Ltd. related to this Agreement and the transactions
contemplated hereby will continue to be property of (and be controlled by) the Seller Representative and the Company will not
have any access to them without the Seller Representative's express prior written consent.

 

(r)       Termination.
Without prejudice to other remedies which may be available to the Parties by law or this Agreement, this Agreement may be terminated
and the transactions may be abandoned prior to Closing:

 

(i)       by
mutual written consent of the Parties;

 

(ii)      by
any Party, by written notice to the others, if:

 

(1)       the
Closing shall not have been consummated on or before June 30, 2016, unless extended by written agreement of the Parties; provided,
however, that the right to terminate this Agreement under this Section shall not be available to any Party whose uncured
failure to perform or comply with any of its obligations under this Agreement shall have been the cause of, or shall have resulted
in, the failure of the Closing to occur by such date; or

 

    	 	42	 

     

    

 

(2)       any
governmental authority shall have enacted, promulgated, issued, entered or enforced (A) any law prohibiting the transactions
or making them illegal, or (B) any injunction, judgment, order or ruling or taking any other action, in each case, permanently
enjoining, restraining or prohibiting the transactions, which shall have become final and nonappealable;

 

(iii)
    by the Buyer in the event of a breach of this Agreement by Sellers or the Company, which breach would cause any of the conditions
set forth in Section 7(a) to become incapable of fulfillment and cannot be cured or remains
uncured by the Closing Date; or

 

(iv)    by
the Seller Representative in the event of a breach of this Agreement by Buyer, which breach would cause any of the conditions
set forth in Section 7(b) to become incapable of fulfillment and cannot be cured or remains uncured by the Closing Date.

 

In
the event of any termination of the Agreement as provided above, then all further obligations of the Parties under this Agreement
shall terminate without further liability on the part of any Party to the others, other than as to Break-Up Shares pursuant to
Section 9(s), the provisions of Section 6(a)(vi) or liability for any fraudulent misrepresentation or intentional
breach or default of any warranty, representation, covenant or obligation given, occurring or arising pursuant to this Agreement
prior to the date of termination.

 

(s)       Break-Up
Shares. In the event this Agreement is terminated for any reason other than pursuant to Section 9(r)(iii), then
the Warrants shall immediately become fully exercisable for all or any portion of the Break-Up Shares.

 

[Signature
Page Follows]

 

    	 	43	 

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Interest Purchase Agreement as of the date first above written:

 

	BUYER:	 
	 	 	 
	NXT-ID, INC.	 
	 	 	 
	By:	       	 
	Name:	 	 
	Title:	 	 
	 	 	 
	THE COMPANY:	 
	 	 	 
	LOGICMARK, LLC	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	SELLERS:	 
	 	 	 
	LOGICMARK INVESTMENT PARTNERS, LLC	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	GOTTLIEB FAMILY, LLC	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	 	 	 
	 	 
	BEN CORNETT	 
	 	 
	 	 	 
	 	 
	KEVIN O’CONNOR	 

 

    	 	44	 

     

    

 

	GENERATION3 PARTNERS I, LLC	 
	 	 	 
	By:	        	 
	Name:	 	 
	Title:	 	 
	 	 	 
	SELLER REPRESENTATIVE:	 
	 	 	 
	LOGICMARK INVESTMENT PARTNERS, LLC	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

[Continued
Signature Page to Interest Purchase Agreement]

 

 

45SEC Exhibit

SECOND AMENDMENT TO  
THIRD AMENDED AND RESTATED  
LOAN AND SECURITY AGREEMENT
This SECOND AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of May 18, 2016 (this “Amendment”) is made among CONN’S, INC., a Delaware corporation (the “Parent”), CONN APPLIANCES, INC., a Texas corporation (“CAI”), CONN CREDIT I, LP, a Texas limited partnership (“CCI”), CONN CREDIT CORPORATION, INC., a Texas corporation (“CCCI”, together with CAI and CCI, individually, a “Borrower” and collectively, the “Borrowers”), the banks and other financial institutions identified as “Lenders” on the signature pages hereof (the “Lenders”) and BANK OF AMERICA, N.A., a national banking association, as Administrative Agent for the Lenders (“Agent”).
Background
A.    Parent, Borrowers, Agent and Lenders have entered into a Third Amended and Restated Loan and Security Agreement, dated as of October 30, 2015 (as amended, modified or supplemented from time to time, the “Loan Agreement”).  All capitalized terms used and not otherwise defined in this Amendment are used as defined in the Loan Agreement.
B.    Agent and Lenders have agreed to amend certain terms of the Loan Agreement subject to the terms and conditions set forth herein.
NOW THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties herein set forth and for other good and valuable consideration, Parent, Borrowers, Agent and Lenders hereto hereby agree as follows:
Agreement
1.Amendments to the Loan Agreement.  
(a)    New Definitions.  Section 1.1 of the Loan Agreement is hereby amended by adding the following definitions thereto in alphabetical order as follows:
ABS Contract Balance:  as of any date of determination, the Gross Contract Payments (less all unearned interest, fees and charges) as determined with respect to each Securitization Subsidiary.
ABS Contract Book Value: as of any date of determination with respect to each Securitization Subsidiary, the ABS Contract Balance minus the loss reserve (as required to be maintained under GAAP) for such Securitization Subsidiary.
ABS Gross Residual Interest: as of any date of determination with respect to each Securitization Subsidiary, the ABS Contract Balance of such Securitization Subsidiary, minus outstanding indebtedness of the applicable 

1

Securitization Subsidiary, plus ABS Qualified Cash of such Securitization Subsidiary. 
ABS Net Book Value:  as of any date of determination with respect to each Securitization Subsidiary, the total assets of such Securitization Subsidiary minus the total liabilities of such Securitization Subsidiary, all as determined under GAAP.
Availability Block: $15,000,000; provided that such amount shall be reduced to $10,000,000 upon the satisfaction of each of the following conditions: (i) the financial statements and Compliance Certificate delivered by Parent to Agent pursuant to Section 10.1.2 for the month ending July 31, 2017 reflect that Parent has achieved an Interest Coverage Ratio of equal to or greater than 1.25:1.00, and (ii) no Default or Event of Default exists at the time of such reduction; provided, further, that such amount shall be reduced to $0 upon satisfaction of each of the following conditions: (1) Borrowers have requested that the Availability Block be reduced to $0 which request may only be made immediately after the financial statements and Compliance Certificate delivered by Parent to Agent pursuant to Section 10.1.2 for two consecutive fiscal quarters reflect that Parent has achieved a minimum Interest Coverage Ratio of at least 2.00:1.00, and (2) no Default or Event of Default exists at the time of such reduction.
(b)    Applicable Margin.  The definition of “Applicable Margin” as set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following is substituted therefor:
Applicable Margin: the margin set forth in the chart below, as determined by the Average Quarterly Availability Percentage for the most recently ended Fiscal Quarter:
	
				
	Level
	Average Quarterly Availability Percentage

	Base Rate Revolver Loans
	LIBOR Revolver Loans

	I
	Greater than 66%
	1.75%
	2.75%

	II
	Less than or equal to 66% but greater than 33%
	2.00%
	3.00%

	III
	Less than or equal to 33%
	2.25%
	3.25%

The margins shall be subject to increase or decrease on the first day of the calendar month following Agent’s determination of the Average Quarterly Availability Percentage.  If any Borrowing Base Report has not been received on the due dates thereof, then the margins shall be determined as if Level III were applicable, from such day until the first day of the calendar month 

2

following actual receipt and determination of the Average Quarterly Availability Percentage by Agent.
(c)    Borrowing Base.  The definitions of “Borrowing Base”, “CAI Borrowing Base”, and “CCI Borrowing Base” as set forth in Section 1.1 of the Loan Agreement are hereby deleted in their entirety and the following are substituted therefor:
Borrowing Base: on any date of determination, an amount equal to the lesser of (a) the aggregate amount of Revolver Commitments; or (b) (i) the sum of the CCI Borrowing Base, plus the CAI Borrowing Base, minus the Availability Block (without duplication).
CAI Borrowing Base: the sum of the Credit Card Account Formula Amount, plus the Inventory Formula Amount, minus any CAI Availability Reserve, minus any portion of the Availability Block applicable to CAI as determined by Agent in its discretion (without duplication).
CCI Borrowing Base: the sum of the Contract Advance Rate Amount, minus any CCI Availability Reserve, minus any portion of the Availability Block applicable to CCI as determined by Agent in its discretion (without duplication).
(d)    EBITDA.  The definition of “EBITDA” as set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following is substituted therefor:
EBITDA: for any period of measurement, determined on a consolidated basis for Parent and its Subsidiaries derived from financial statements prepared in accordance with GAAP, net income, calculated before (i) Interest Expense, (ii) provision for income taxes, (iii) depreciation and amortization expense, (iv) stock based compensation, (v) gains or losses arising from the sale of capital assets, (vi) any extraordinary gains or losses (in each case, to the extent included in determining net income),  (vii) non-cash non-recurring losses or expenses (in excess of non-recurring gains) not to exceed 15% of EBITDA for the then ending 4 Fiscal Quarters (as determined prior to giving effect to this clause (vii) and after deducting any amounts added to the calculation of EBITDA under this clause (vii) for the prior 3 Fiscal Quarters) and reduced on a Fiscal Quarter basis or such other determination date by an amount equal to (if a positive result) the sum of the EBITDA Loss Reserve measured as of the end of any Fiscal Quarter or such other determination date, minus Parent and its Subsidiaries’ recorded loss reserve measured as of the end of the same Fiscal Quarter or such other determination date, (viii) any increases in loss reserve resulting solely from a Borrower’s repurchase of Contracts subject to a Permitted ABS Transaction occurring after such Permitted ABS Transaction has been deconsolidated from the Parent and its Subsidiaries financial statements prepared in accordance with GAAP; and (ix) any gain or loss from the Ordinary Course of Business sale of residual 

3

interests of cash flows subject to a Permitted ABS Transaction and provided, that the sum of the proceeds (before offering expenses) received under this clause (ix) plus the proceeds (before offering expenses) received from the applicable Permitted ABS Transaction shall at no time be less than 75% of the ABS Contract Balance of the applicable Permitted ABS Transaction on the closing date thereof.
(e)    Interest Coverage Ratio.  The definition of “Interest Coverage Ratio” as set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following is substituted therefor:
Interest Coverage Ratio: the ratio, determined as of the end of any Fiscal Quarter on a consolidated basis for Parent and its Subsidiaries (including EBITDA and Interest Expense under the Existing Securitization Facility and any other Permitted ABS Transactions whether or not consolidated in Parent’s financial statements), of (a) EBITDA to (b) Interest Expense.
(f)    Permitted Distributions.  The definition of “Permitted Distributions” as set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following is substituted therefor:
Permitted Distribution: (a) Distributions declared and made by Parent or any of its Subsidiaries solely for the purpose of making, or permitting Parent to make, payments on account of obligations owed under any HY Notes which payments are permitted to be made under Section 10.2.8(c), and (b) other Distributions declared and made by Parent or any Borrower which are approved by Parent’s board of directors, so long as immediately before and after giving effect thereto, (i) no Event of Default exists, (ii) the sum of (w) Qualified Cash, plus (x) Availability is greater than the greater of (A) 33% of the sum of (y) Qualified Cash, plus (z) the Borrowing Base and (B) $175,000,000 and (iii) financial statements and Compliance Certificates delivered by Parent to Agent pursuant to Section 10.1.2 reflect that Parent has achieved an Interest Coverage Ratio of greater than 2.50:1.00 for two consecutive Fiscal Quarters.
(g)    Financial and Other Information.  Section 10.1.2 of the Loan Agreement is hereby amended by amending and restating clauses (j) and (k) and adding clause (l) thereto as follows:
(j)    evidence as to Borrowers' compliance with Consumer Finance Laws as reasonably requested by Agent from time to time, including opinions of counsel regarding any changes in Contracts, Credit and Collection Guidelines or business practices; 
(k)    together with each Compliance Certificate delivered pursuant to Section 10.1.2(d), a report of ABS Contract Balance, ABS Contract Book 

4

Value, ABS Gross Residual Interest and ABS Net Book Value with respect to each Securitization Subsidiary measured as of the end of each Fiscal Quarter of Parent; and
(l)    such other reports and information (financial or otherwise) as Agent may reasonably request (at its reasonable discretion or at the reasonable request of any Lender) from time to time in connection with any Collateral or the financial condition or business of Parent, any Borrower or any of their respective Subsidiaries.
(h)    Minimum Interest Coverage Ratio.  Section 10.3.1 of the Loan Agreement is hereby deleted in its entirety and the following is substituted therefor:
10.3.1 Minimum Interest Coverage Ratio. Commencing with the Fiscal Quarter ending April 30, 2016, maintain an Interest Coverage Ratio at least the ratio set forth below for each Fiscal Quarter, measured on a quarterly basis as of the last day of each Fiscal Quarter:
	
		
	Fiscal Quarter Ending
	Minimum Interest Coverage Ratio

	April 30, 2016
	Not Tested

	July 31, 2016
	1.00:1.00

	October 31, 2016
	1.00:1.00

	January 31, 2017
	1.00:1.00

	April 30, 2017
	1.00:1.00

	July 31, 2017
	1.25:1.00

	October 31, 2017
	1.25:1.00

	January 31, 2018
	1.25:1.00

	April 30, 2018
	1.25:1.00

	July 31, 2018
	1.25:1.00

	October 31, 2018
	1.25:1.00

	 
	 

Notwithstanding the above, once the Availability Block is reduced to $0, the minimum Interest Coverage Ratio requirement for the Fiscal Quarter in which such reduction occurs and for all Fiscal Quarters thereafter shall be 2.00:1.00.
2.    Representations and Warranties; No Default.  Each of the Parent and the Borrowers, hereby represents and warrants as of the effectiveness of this Amendment that:
(i)    no Default or Event of Default exists; and
(ii)    its representations and warranties set forth in Section 9 of the Loan Agreement (as amended hereby) are true and correct as of the date hereof, as though made on and as of such date (except to the extent such representations and warranties relate solely to an earlier date and then as of such earlier date).

5

3.    Effectiveness.  This Amendment (and the consents and waivers set forth herein) shall become effective, as of the date first set forth above upon receipt by the Agent of:
(a)    Executed counterparts hereof from Parent, the Borrowers and each of the Required Lenders;
(b)    A reaffirmation of its obligations under the Guaranty, duly executed by each Guarantor; and
(c)    An executed fee letter in form and substance satisfactory to Agent.
4.    Binding Effect; Ratification 
(a)    Upon the effectiveness of this Amendment and thereafter this Amendment shall be binding on the Agent, Parent, Borrowers and Lenders and their respective successors and assigns.
(b)    On and after the execution and delivery hereof, this Amendment shall be a part of the Loan Agreement and each reference in the Loan Agreement to “this Loan Agreement” or “hereof”, “hereunder” or words of like import, and each reference in any other Loan Document to the Loan Agreement shall mean and be a reference to such Loan Agreement as amended hereby.
(c)    Except as expressly amended hereby, the Loan Agreement shall remain in full force and effect and is hereby ratified and confirmed by the parties hereto.
5.    Miscellaneous.  (i)  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS.  EACH OF THE PARTIES TO THIS AMENDMENT AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER LOS ANGELES COUNTY, CALIFORNIA IN ANY PROCEEDING OR DISPUTE RELATING IN ANY WAY TO THIS AMENDMENT OR ANY LOAN DOCUMENT AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT.  EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.
(b)    All reasonable costs and expenses incurred by the Agent in connection with this Amendment (including reasonable attorneys’ costs) shall be paid by the Borrowers.
(c)    Headings used herein are for convenience of reference only and shall not affect the meaning of this Amendment.

6

(d)    This Amendment may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement.
[Signature Pages Follow]
 

7

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.
PARENT:

CONN’S, INC.,
a Delaware corporation

By:  /s/ Thomas R. Moran            
Name:    Thomas R. Moran
		
	Title:
	Executive Vice President, Chief Financial Officer 

BORROWERS:

CONN APPLIANCES, INC.,
a Texas corporation

By:  /s/ Thomas R. Moran            
Name:    Thomas R. Moran
		
	Title:
	Executive Vice President, Chief Financial Officer 

CONN CREDIT I, LP,
a Texas limited partnership

By:    Conn Credit Corporation, Inc.,
a Texas corporation,
its sole general partner

By:  /s/ Thomas R. Moran            
Name:    Thomas R. Moran
		
	Title:
	Executive Vice President, Chief Financial Officer 

CONN CREDIT CORPORATION, INC.,
a Texas corporation

By:  /s/ Thomas R. Moran            
Name:    Thomas R. Moran
		
	Title:
	Executive Vice President, Chief Financial Officer 

AGENT AND LENDERS:

BANK OF AMERICA, N.A.,
as Agent and a Lender

By: /s/ Carlos Gil            
Name: Carlos Gil
Title: Senior Vice President

JPMORGAN CHASE BANK, N.A.,
as a Lender

By:  /s/ Jennifer Heard        
Name:     Jennifer Heard            
Title: Authorized Officer

REGIONS BANK,
as a Lender

By: /s/ Evie Krimm            
Name: Evie Krimm            
Title: Vice President            

MUFG UNION BANK, N.A.,
as a Lender

By:  /s/ Nadia Mitevska        
Name: Nadia Mitevska        
Title: Vice President            

COMPASS BANK,
as a Lender

By:  Michael Sheff            
Name: Michael Sheff            
Title: Senior Vice President        

ZB, N.A. dba Amegy Bank,
as a Lender

By:  Mark L. Wayne            
Name: Mark L. Wayne        
Title: SVP                

FIRST TENNESSEE BANK NATIONAL ASSOCIATION,
as a Lender

By: /s/ Daniel McCarthy        
Name:     Daniel McCarthy        
Title: VP                

SYNOVUS BANK,
as a Lender

By: /s/ David W. Bowman        
Name: David W. Bowman        
Title: Director                 

MB FINANCIAL BANK, N.A.,
as a Lender

By:  /s/ Pavo Hrkac            
Name: Pavo Hrkac            
Title: AVP                 

CATHAY BANK,
as a Lender

By:  /s/ Humberto Campos        
Name: Humberto Campos        
Title: Vice President            

CITY NATIONAL BANK,
as a Lender

By:  /s/ David Knoblauch        
Name:     David Knoblauch        
Title: SVP

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