Document:

Exhibit 4.1

 

DESCRIPTION OF Enzo
Biochem, Inc.’s SECURITIES

 

Description
of Capital Stock

The following is a
brief description of the common stock, par value $0.01 per share, of Enzo Biochem, Inc. (the “Company,” “we,”
or “our”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act
of 1934, as amended.

Pursuant to our Certificate
of Incorporation, as amended, the total amount of our authorized capital stock is 100,000,000 shares, which consists of 75,000,000
shares of authorized common stock, par value $0.01 per share, and 25,000,000 shares of authorized preferred stock, par value $0.01
per share. As of November 19, 2019, we had outstanding 47,556,807 shares of common stock and no shares of preferred stock. As of
November 19, 2019, we had approximately 902 holders of record of our common stock.

The following summary
of our capital stock does not purport to be complete and is subject to and qualified in its entirety by, our Certificate of Incorporation,
as amended, and our Amended and Restated By-laws.

 

Common Stock

The holders of shares
of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders.
All shares of our common stock are entitled to share equally in any dividends our board of directors may declare from legally available
sources. Our common stock is traded on the New York Stock Exchange under the symbol “ENZ”. The section below entitled
“Certain Provisions of New York Law and of the Company’s Certificate of Incorporation and Amended and Restated By-laws”
contains additional information regarding the rights and preferences of our common stock. The transfer agent and registrar for
our common stock is American Stock Transfer & Trust Company.

 

Preferred Stock

Our
board of directors has the authority, without further action by the stockholders, to issue shares of preferred stock in one or
more series and to fix and determine the following terms of the preferred stock by resolution: variations in the designations,
preferences, and relative, participating, optional or other special rights (including, without limitation, special voting rights,
of conversion in common stock or other securities, redemption provisions or sinking fund provisions) as between series and between
the preferred stock and any series thereof and the common stock, and the qualifications, limitations or restrictions of such rights,
all as shall be stated in a resolution of the board of directors. Shares of preferred stock or any series thereof may have full
or limited voting powers, or be without voting powers, all as shall be stated in a resolution of the board of directors.

Any
or all of these rights may be greater than the rights of our common stock. We currently have no issued and outstanding preferred
stock.

Our
board of directors, without stockholder approval, can issue preferred stock with voting, conversion or other rights that could
negatively affect the voting power and other rights of the holders of our common stock. Preferred stock could thus be issued quickly
with terms calculated to delay or prevent a change in control of the Company or to make it more difficult to remove the Company’s
management. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of our common stock.

 

Certain Provisions of New York Law
and of the Company’s Certificate of Incorporation and Amended and Restated By-laws

 

The following paragraphs
summarize certain provisions of the New York Business Corporation Law, or NYBCL, and our Certificate of Incorporation, as amended,
and our Amended and Restated By-laws. The summary does not purport to be complete and is subject to and qualified in its entirety
by reference to the NYBCL, our Certificate of Incorporation, as amended, and our Amended and Restated By-laws, copies of which
are on file with the SEC as exhibits to our annual report filed on Form 10-K on October 15, 2019.

 

General. Certain
provisions of our Certificate of Incorporation, as amended, and our Amended and Restated By-laws and New York law could make our
acquisition by a third party, a change in our incumbent management, or a similar change of control more difficult, including:

 

	 	•	an acquisition of us by means of a tender or exchange offer;
	 	 	 
	 	•	an acquisition of us by means of a proxy contest or otherwise; or
	 	 	 
	 	•	the removal of a majority or all of our incumbent officers and directors.

 

These provisions, which
are summarized below, are likely to discourage certain types of coercive takeover practices and inadequate takeover bids. These
provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors.
We believe that these provisions help to protect our potential ability to negotiate with the proponent of an unfriendly or unsolicited
proposal to acquire or restructure us, and that this benefit outweighs the potential disadvantages of discouraging such a proposal
because our ability to negotiate with the proponent could result in an improvement of the terms of the proposal.

Election and removal
of directors. Our bylaws provide that the size of the board of directors shall be fixed at five (5) directors and shall be
classified into three classes, as nearly equal as possible as determined by the board of directors. The directors are to be elected
at the annual meeting of the stockholders, with a term expiring at the annual meeting of shareholders held in the third year following
the year of their election or until his successor is elected and qualified. Any director or the entire board of directors may be
removed, with cause, by a the affirmative vote of (i) the holders of 80% of the combined voting power of the then outstanding shares
of stock entitled to vote generally in the election of directors, voting together as a single class and (ii) a majority of such
shares beneficially owned by the persons not affiliated with an interested shareholder.

Stockholder meetings.
Our bylaws provide that the stockholders may not call a special meeting of the stockholders of our company. Instead, special meetings
of the stockholders may be called by the Board of Directors pursuant to a resolution approved by a majority of the entire board
of directors.

    	 

    	

    

Requirements for
advance notification of stockholder nominations and proposals. Our bylaws establish advance notice procedures with respect
to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction
of the board of directors or a committee of the board.

New York anti-takeover
law. We are subject to certain “business combination” provisions of Section 912 of the NYBCL and expect to continue
to be so subject if and for so long as we have a class of securities registered under Section 12 of the Securities Exchange Act
of 1934. Section 912 provides, with certain exceptions (which include, among others, transactions with shareholders who became
interested prior to the effective date of an amendment to our Certificate of Incorporation providing that we would be subject to
Section 912 if such corporation did not then have a class of stock registered pursuant to Section 12 of the Exchange Act), that
a New York corporation may not engage in a “business combination” (e.g., merger, consolidation, recapitalization or
disposition of stock) with any “interested shareholder” for a period of five years from the date that such person first
became an interested shareholder unless:

(i) the transaction
resulting in a person becoming an interested shareholder was approved by the board of directors of the corporation prior to that
person becoming an interested shareholder; or

(ii) the business
combination is approved by the holders of a majority of the outstanding voting stock not beneficially owned by such interested
shareholder; or

(iii) the
business combination is approved by the disinterested shareholders at a meeting called no earlier than five years after the interested
shareholder’s stock acquisition date; or

(iv) the business
combination meets certain valuation requirements for the stock of a New York corporation.

An “interested
shareholder” is defined as any person who (a) is the beneficial owner of 20% or more of the outstanding voting stock of a
New York corporation or (b) is an affiliate or associate of a corporation that at any time during the prior five years was the
beneficial owner, directly or indirectly, of 20% or more of the then outstanding voting stock.

A “business combination”
includes mergers, asset sales and other transactions resulting in a financial benefit to the interested shareholder.

The “stock acquisition
date”, with respect to any person and any New York corporation, means the date that such person first becomes an interested
shareholder of such corporation.

No cumulative voting.
Our Certificate of Incorporation, as amended, and our Amended and Restated By-laws do not provide for cumulative voting in the
election of directors.

Limitation of liability.
As permitted by the NYBCL, our Certificate of Incorporation, as amended provides that a director will not be personally liable
to us or our stockholders for damages for any breach of duty in his or her capacity as a director unless a judgment or other final
adjudication adverse to such director establishes that (i) his or her acts or omissions were in bad faith or involved intentional
misconduct or a knowing violation of law, (ii) such director personally gained in fact a financial profit or other advantage to
which he or she was not legally entitled or (iii) his or her acts violated Section 719 of the NYBCL. As a result of this provision,
we and our stockholders may be unable to obtain monetary damages from a director for breach of his or her duty of care.

Our Certificate of
Incorporation, as amended, and our Amended and Restated By-laws also provide for the indemnification of our directors and officers
to the fullest extent authorized by the NYBCL. Insofar as indemnification for liabilities under the Securities Act may be permitted
to directors, officers or controlling persons of our company pursuant to our Certificate of Incorporation, as amended, our Amended
and Restated By-laws and the NYBCL, we have been informed that in the opinion of the SEC such indemnification is against public
policy as expressed in the Securities Act and is therefore unenforceable.

We have the power to
purchase and maintain insurance on behalf of any person who is or was one of our directors or officers, or is or was serving at
our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other business
against any liability asserted against the person or incurred by the person in any of these capacities, or arising out of the person’s
fulfilling one of these capacities, and related expenses, whether or not we would have the power to indemnify the person against
the claim under the provisions of the NYBCL. We intend to maintain director and officer liability insurance on behalf of our directors
and officers.

    	 

    	

    

DESCRIPTION
OF DEPOSITARY SHARES

The
following description, together with the additional information we include in any applicable prospectus supplement, summarizes
the material terms and provisions of the depositary shares that we may offer. The following statements with respect to the depositary
shares and depositary receipts are summaries of, and subject to, the detailed provisions of a deposit agreement to be entered into
by Enzo Biochem and a depositary to be selected at the time of issue (the “depositary”) and the form of depositary
receipt. The form of deposit agreement and the form of depositary receipt will be filed with the SEC.

General

We
may, at our option, elect to issue fractional shares of preferred stock, rather than full shares of preferred stock. In the event
such option is exercised, we may elect to have a depositary issue receipts for depositary shares, each receipt representing a fraction,
to be set forth in the prospectus supplement relating to a particular series of preferred stock, of a share of a particular series
of preferred stock as described below.

The
shares of any series of preferred stock represented by depositary shares will be deposited under a deposit agreement between us
and a bank or trust company that we select. Subject to the terms of the deposit agreement, each owner of a depositary share will
be entitled, in proportion to the applicable fraction of a share of preferred stock represented by such depositary share, to all
the rights and preferences of the preferred stock represented by the depositary share, including dividend, voting, redemption and
liquidation rights.

Depositary
Receipts

The
depositary shares will be evidenced by depositary receipts issued pursuant to the deposit agreement. Depositary receipts will be
distributed to those persons purchasing the fractional shares of preferred stock in accordance with the terms of an offering of
the preferred stock.

Withdrawal
of Preferred Stock

Upon
surrender of depositary receipts at the office of the depositary and upon payment of the charges provided in the deposit agreement,
a holder of depositary receipts may have the depositary deliver to the holder the whole shares of preferred stock relating to the
surrendered depositary receipts. Holders of depositary shares may receive whole shares of the related series of preferred stock
on the basis set forth in the related prospectus supplement for such series of preferred stock, but holders of such whole shares
will not after the exchange be entitled to receive depositary shares for their whole shares. If the depositary receipts delivered
by the holder evidence a number of depositary shares in excess of the number of depositary shares representing the number of whole
shares of the related series of preferred stock to be withdrawn, the depositary will deliver to the holder at the same time a new
depositary receipt evidencing such excess number of depositary shares.

Dividends
and Other Distributions

The
depositary will distribute all cash dividends or other cash distributions received for the preferred stock to the record holders
of depositary shares relating to the preferred stock in proportion to the numbers of such depositary shares owned by such holders.

In
the event of a distribution other than in cash, the depositary will distribute property received by it to the record holders of
depositary shares entitled thereto, unless the depositary determines that it is not feasible to make distribution of the property.
In that case the depositary may, with our approval, sell such property and distribute the net proceeds from the sale to such holders.

Redemption
of Depositary Shares

If
a series of preferred stock represented by depositary shares is subject to redemption, the depositary shares will be redeemed from
the proceeds received by the depositary resulting from the redemption, in whole or in part, of the series of preferred stock held
by the depositary. The redemption price per depositary share will be equal to the
applicable fraction of the redemption price per share payable with respect to the series of the preferred stock. Whenever we redeem
shares of preferred stock held by the depositary, the depositary will redeem as of the same redemption date the number of depositary
shares representing shares of preferred stock redeemed by us. If less than all the depositary shares are to be redeemed, the depositary
shares to be redeemed will be selected by lot or pro rata as may be determined by the depositary.

Voting
the Preferred Stock

Upon
receipt of notice of any meeting at which the holders of the preferred stock are entitled to vote, the depositary will mail the
information contained in such notice of meeting to the record holders of the depositary shares relating to such preferred stock.
Each record holder of such depositary shares on the record date, which will be the same date as the record date for the preferred
stock, will be entitled to instruct the depositary as to the exercise of the voting rights pertaining to the amount of the preferred
stock represented by such holder’s depositary shares. The depositary will endeavor, insofar as practicable, to vote the amount
of the preferred stock represented by such depositary shares in accordance with such instructions, and we will agree to take all
action which may be deemed necessary by the depositary in order to enable the depositary to do so. The depositary will not vote
the preferred stock to the extent it does not receive specific instructions from the holders of depositary shares representing
such preferred stock.

Amendment
and Termination of the Deposit Agreement

We
and the depositary at any time may amend the form of depositary receipt evidencing the depositary shares and any provision of the
deposit agreement. However, any amendment which materially and adversely alters the rights of the holders of depositary shares
will not be effective unless such amendment has been approved by the holders of at least a majority of the depositary shares then
outstanding. We or the depositary may terminate the deposit agreement only if all outstanding depositary shares have been redeemed,
or there has been a final distribution in respect of the preferred stock in connection with any liquidation, dissolution or winding
up of Enzo Biochem and such distribution has been distributed to the holders of depositary receipts.

Charges
of Depositary

We
will pay all transfer and other taxes and governmental charges arising solely from the existence of the depositary arrangements.
We will pay charges of the depositary in connection with the initial deposit of the preferred stock and any redemption of the preferred
stock. Holders of depositary receipts will pay other transfer and other taxes and governmental charges and such other charges as
are expressly provided in the deposit agreement to be for their accounts.

Miscellaneous

The
depositary will forward to the record holders of the depositary shares relating to such preferred stock all reports and communications
from us which are delivered to the depositary.

Neither
we nor the depositary will be liable if either one is prevented or delayed by law or any circumstance beyond their control in performing
the obligations under the deposit agreement. The obligations of Enzo Biochem and the depositary under the deposit agreement will
be limited to performance in good faith of their duties thereunder, and they will not be obligated to prosecute or defend any legal
proceeding in respect of any depositary shares or preferred stock unless satisfactory indemnity is furnished. The depositary may
rely upon written advice of counsel or

    	 

    	

    

accountants,
or information provided by persons presenting preferred stock for deposit, holders of depositary receipts or other persons believed
to be competent and on documents believed to be genuine.

Resignation
and Removal of Depositary

The
depositary may resign at any time by delivering to us notice of its election to do so, and we may at any time remove the depositary,
any such resignation or removal to take effect upon the appointment of a successor depositary and its acceptance of such appointment.
Such successor depositary must be appointed within sixty (60) days after delivery of the notice of resignation or removal.

    	 

    	

    

DESCRIPTION OF DEBT SECURITIES

The following description,
together with the additional information we include in any applicable prospectus supplement, summarizes the material terms and
provisions of the debt securities that we may offer and the related indenture. While the terms we have summarized below will apply
generally to any future debt securities we may offer, we will describe the particular terms of any debt securities that we may
offer in more detail in the applicable prospectus supplement. If we indicate in a prospectus supplement, the terms of any debt
securities we offer under that prospectus supplement may differ from the terms we describe below.

We may offer debt securities
from time to time in one or more offerings. We will issue any such debt securities under an indenture that we will enter into with
a trustee to be named in the indenture. We have filed a form of indenture as an exhibit to our registration statement registration
statement filed on Form S-3 on September 1, 2017. The indenture will be qualified under the Trust Indenture Act of 1939, as in
effect on the date of the indenture. We use the term “debenture trustee” to refer to the trustee under the indenture.

The following summaries
of material provisions of the debt securities and the indenture are subject to, and qualified in their entirety by reference to,
all the provisions of the indenture applicable to a particular series of debt securities.

General

The indenture provides
that debt securities may be issued from time to time in one or more series. The indenture does not limit the amount of debt securities
that may be issued thereunder, and the indenture provides that the specific terms of any series of debt securities shall be set
forth in, or determined pursuant to, an authorizing resolution, an officers’ certificate and/or a supplemental indenture,
if any, relating to such series.

We will describe in
each prospectus supplement the following terms relating to a series of debt securities:

 

	 	•	the title or designation of the debt securities;
	 	 	 
	 	•	whether the debt securities will be secured or unsecured, and the terms of any secured debt;
	 	 	 
	 	•	the terms of the subordination of any series of subordinated debt securities;
	 	 	 
	 	•	any limit upon the aggregate principal amount of the debt securities;
	 	 	 
	 	•	the date or dates on which the debt securities may be issued and on which we will pay the
    principal on the debt securities;
	 	 	 
	 	•	the interest rate, which may be fixed or variable, or the method for determining the rate
    and the date interest will begin to accrue, the date or dates interest will be payable and the record dates for interest payment
    dates or the method for determining such dates;
	 	 	 
	 	•	the manner in which the amounts of payment of principal of, premium or interest on the debt
    securities will be determined, if these amounts may be determined by reference to an index based on a currency or currencies
    other than that in which the debt securities are denominated or designated to be payable or by reference to a commodity, commodity
    index, stock exchange index or financial index;
	 	 	 
	 	•	the currency of denomination of the debt securities;
	 	 	 
	 	•	if payments of principal of, premium or interest on the debt securities will be made in one
    or more currencies or currency units other than that or those in which the debt securities are denominated, the manner in
    which the exchange rate with respect to these payments will be determined;
	 	 	 
	 	•	the place or places where the principal of, premium, and interest on the debt securities will
    be payable, where debt securities of any series may be presented for registration of transfer, exchange or conversion, and
    where notices and demands to or upon the Company in respect of the debt securities may be made;
	 	 	 
	 	•	the form of consideration in which principal of, premium or interest on the debt securities
    will be paid;
	 	 	 
	 	•	the terms and conditions upon which we may redeem the debt securities;
	 	 	 
	 	•	any obligation we have to redeem or purchase the debt securities pursuant to any sinking fund,
    amortization or analogous provisions or at the option of a holder of debt securities;
	 	 	 
	 	•	the dates on which and the price or prices at which we will repurchase the debt securities
    at the option of the holders of debt securities and other detailed terms and provisions of these repurchase obligations;

    	 

    	

    

	 	•	the denominations in which the debt securities will be issued, if other than denominations
    of $1,000 and any integral multiple thereof;
	 	 	 
	 	•	the portion of principal amount of the debt securities payable upon declaration of acceleration
    of the maturity date, if other than the principal amount;
	 	 	 
	 	•	whether the debt securities are to be issued at any original issuance discount and the amount
    of discount with which such debt securities may be issued;
	 	 	 
	 	•	whether the debt securities will be issued in the form of certificated debt securities or
    global debt securities and, in such case, the depositary for such global security or securities and the terms and conditions,
    if any, upon which interests in such global security or securities may be exchanged in whole or in part for the individual
    securities represented thereby;
	 	 	 
	 	•	provisions, if any, for the defeasance of the debt securities of a series in whole or in part
    and any addition or change in the provisions related to satisfaction and discharge;
	 	 	 
	 	•	the form of the debt securities;
	 	 	 
	 	•	the terms and conditions upon which the debt securities will be so convertible or exchangeable
    into securities or property of another person, if at all, and any additions or changes, if any, to permit or facilitate such
    conversion or exchange;
	 	 	 
	 	•	whether the debt securities will be subject to subordination and the terms of such subordination;
	 	 	 
	 	•	provisions, if any, granting special rights to holders of the debt securities upon the occurrence
    of specified events;
	 	 	 
	 	•	any restriction or condition on the transferability of the debt securities;
	 	 	 
	 	•	any addition or change in the provisions related to compensation and reimbursement of the
    trustee which applies to securities of such series;
	 	 	 
	 	•	any addition to or change in the events of default described herein or in the indenture with
    respect to the debt securities and any change in the acceleration provisions described herein or in the indenture with respect
    to the debt securities;
	 	 	 
	 	•	any addition to or change in the covenants described herein or in the indenture with respect
    to the debt securities; and
	 	 	 
	 	•	any other terms of the debt securities, which may modify or delete any provision of the indenture.

 

We may issue debt securities
that provide for an amount less than their stated principal amount to be due and payable upon declaration of acceleration of their
maturity pursuant to the terms of the indenture. We will provide you with information on the federal income tax considerations
and other special considerations applicable to any of these debt securities in the applicable prospectus supplement.

Conversion or Exchange Rights

We will set forth in
the prospectus supplement the terms, if any, on which a series of debt securities may be convertible into or exchangeable for our
common stock or our other securities. We will include provisions as to whether conversion or exchange is mandatory, at the option
of the holder or at our option. We may include provisions pursuant to which the number of shares of our common stock or our other
securities that the holders of the series of debt securities receive would be subject to adjustment.

Consolidation, Merger or Sale; No Protection in Event of
a Change of Control or Highly Leveraged Transaction

The indenture provides
that we may not merge or consolidate with or into another entity, or sell other than for cash or lease all or substantially all
our assets to another entity, or purchase all or substantially all the assets of another entity unless we are the surviving entity
or, if we are not the surviving entity, the successor, transferee or lessee entity expressly assumes all of our obligations under
the indenture or the debt securities, as appropriate.

Unless we state otherwise
in the applicable prospectus supplement, the debt securities will not contain any provisions that may afford holders of the debt
securities additional protection in the event we have a change of control or in the event of a highly leveraged transaction (whether
or not such transaction results in a change of control), which could adversely affect holders of debt securities.

Events of Default Under the Indenture

The following are events
of default under the indenture with respect to any series of debt securities that we may issue:

 

	 	•	if we fail to pay interest when due and our failure continues for 90 days and the time for
    payment has not been extended or deferred;

    	 

    	

    

	 	•	if we fail to pay the principal, or premium, if any for 30 days, when due whether by maturity
    or called for redemption;
	 	 	 
	 	•	if we fail to pay a sinking fund installment, if any, when due and our failure continues for
    30 days;
	 	 	 
	 	•	if we fail to observe or perform any other covenant relating to such series contained in the
    debt securities of such series or the indenture, other than a covenant specifically relating to and for the benefit of holders
    of another series of debt securities, and our failure continues for 90 days after we receive written notice from the debenture
    trustee or holders of not less than a majority in aggregate principal amount of the outstanding debt securities of the applicable
    series; and
	 	 	 
	 	•	if specified events of bankruptcy, insolvency or reorganization occur as to us.

 

No event of default
with respect to a particular series of debt securities (except as to certain events of bankruptcy, insolvency or reorganization)
necessarily constitutes an event of default with respect to any other series of debt securities. The occurrence of an event of
default may constitute an event of default under any bank credit agreements we may have in existence from time to time. In addition,
the occurrence of certain events of default or an acceleration under the indenture may constitute an event of default under certain
of our other indebtedness outstanding from time to time.

 

If an event of default
with respect to debt securities of any series at the time outstanding occurs and is continuing, then the trustee or the holders
of not less than a majority in principal amount of the outstanding debt securities of that series may, by a notice in writing to
us (and to the debenture trustee if given by the holders), declare to be due and payable immediately the principal (or, if the
debt securities of that series are discount securities, that portion of the principal amount as may be specified in the terms of
that series) of and premium and accrued and unpaid interest, if any, on all debt securities of that series. Before a judgment or
decree for payment of the money due has been obtained with respect to debt securities of any series, the holders of a majority
in principal amount of the outstanding debt securities of that series (or, at a meeting of holders of such series at which a quorum
is present, the holders of a majority in principal amount of the debt securities of such series represented at such meeting) the
acceleration shall be deemed to have been waived, rescinded and annulled if all events of default, other than the non- payment
of accelerated principal, premium, if any, and interest, if any, with respect to debt securities of that series, have been cured
or waived as provided in the applicable indenture (including payments or deposits in respect of principal, premium or interest
that had become due other than as a result of such acceleration) and the Company has deposited with the indenture trustee or paying
agent a sum sufficient to pay all amounts owed to the indenture trustee under the indenture, all arrears of interest, if any, on
the debt securities, and the principal and premium, if any, on the debt securities that have become due other than by such acceleration.
We refer you to the prospectus supplement relating to any series of debt securities that are discount securities for the particular
provisions relating to acceleration of a portion of the principal amount of such discount securities upon the occurrence of an
event of default.

Subject to the terms
of the indenture, if an event of default under the indenture shall occur and be continuing, the debenture trustee will be under
no obligation to exercise any of its rights or powers under such indenture at the request or direction of any of the holders of
the applicable series of debt securities, unless such holders have offered the debenture trustee reasonable indemnity. The holders
of a majority in principal amount of the outstanding debt securities of any series will have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the debenture trustee, or exercising any trust or power conferred
on the debenture trustee, with respect to the debt securities of that series, provided that, subject to the terms of the indenture,
the debenture trustee need not take any action that it believes, upon the advice of counsel, might involve it in personal liability
or might be unduly prejudicial to the holders not involved in the proceeding.

A holder of the debt
securities of any series will only have the right to institute a proceeding under the indenture or to appoint a receiver or trustee,
or to seek other remedies if:

 

	 	•	the holder previously has given written notice to the debenture trustee of a continuing event
    of default with respect to that series;
	 	 	 
	 	•	the holders of at least a majority in aggregate principal amount of the outstanding debt securities
    of that series have made written request, and such holders have offered reasonable indemnity to the debenture trustee to institute
    the proceeding as trustee; and
	 	 	 
	 	•	the debenture trustee does not institute the proceeding, and does not receive from the holders
    of a majority in aggregate principal amount of the outstanding debt securities of that series (or at a meeting of holders
    of such series at which a quorum is present, the holders of a majority in principal amount of the debt securities of such
    series represented at such meeting) other conflicting directions within 60 days after the notice, request and offer.

 

These limitations do
not apply to a suit instituted by a holder of debt securities if we default in the payment of the principal, premium, if any, or
interest on, the debt securities.

We will periodically
file statements with the applicable debenture trustee regarding our compliance with specified covenants in the applicable indenture.

Modification of Indenture; Waiver

The debenture trustee
and we may, without the consent of any holders, execute a supplemental indenture to change the applicable indenture with respect
to specific matters, including, among other things:

 

	 	•	to surrender any right or power conferred upon the Company;
	 	 	 
	 	•	to provide, change or eliminate any restrictions on the payment of principal of or premium,
    if any, on the debt securities; provided that any such action shall not adversely affect the interests of the holders of debt
    securities of any series in any material respect;

    	 

    	

    

	 	•	to change or eliminate any of the provisions of the indenture; provided that any such change
    or elimination shall become effective only when there is no outstanding debt security of any series created prior to the execution
    of such supplemental indenture that is entitled to the benefit of such provision and as to which such supplemental indenture
    would apply;
	 	 	 
	 	•	to evidence the succession of another corporation to the Company;
	 	 	 
	 	•	to evidence and provide for the acceptance of appointment by a successor trustee with respect
    to one or more series of debt securities and to add or change provisions of the indenture to facilitate the administration
    of the trusts thereunder by more than one trustee;
	 	 	 
	 	•	to cure any ambiguity, mistake, manifest error, omission, defect or inconsistency in the indenture
    or to conform the text of any provision in the indenture or in any supplemental indenture to any description thereof in the
    applicable section of a prospectus, prospectus supplement or other offering document that was intended to be a verbatim recitation
    of a provision of the indenture or of any supplemental indenture;
	 	 	 
	 	•	to add to or change or eliminate any provision of the indenture as shall be necessary or desirable
    in accordance with any amendments to the Trust Indenture Act;
	 	 	 
	 	•	to make any change in any series of debt securities that does not adversely affect in any
    material respect the interests of the holders of such debt securities; and
	 	 	 
	 	•	to supplement any of the provisions of the indenture to such extent as shall be necessary
    to permit or facilitate the defeasance and discharge of any series of debt securities; provided that any such action shall
    not adversely affect the interests of the holders of debt securities of such series or any other series of debt securities.

 

In addition, under
the indenture, the rights of holders of a series of debt securities may be changed by us and the debenture trustee with the written
consent of the holders of at least a majority in aggregate principal amount of the outstanding debt securities of each series (or,
at a meeting of holders of such series at which a quorum is present, the holders of a majority in principal amount of the debt
securities of such series represented at such meeting) that is affected. However, the debenture trustee and we may make the following
changes only with the consent of each holder of any outstanding debt securities affected:

 

	 	•	extending the fixed maturity of the series of debt securities;
	 	 	 
	 	•	reducing the principal amount, reducing the rate of or extending the time of payment of interest,
    or any premium payable upon the redemption of any debt securities;
	 	 	 
	 	•	reducing the principal amount of discount securities payable upon acceleration of maturity;
	 	 	 
	 	•	making the principal of or premium or interest on any debt security payable in currency other
    than that stated in the debt security;
	 	 	 
	 	•	impairing the right to institute suit for the enforcement of any payment on or after the fixed
    maturity date of any series of debt securities;
	 	 	 
	 	•	materially adversely affecting the economic terms of any right to convert or exchange any
    debt securities; and
	 	 	 
	 	•	reducing the percentage of debt securities, the holders of which are required to consent to
    any amendment or waiver; or modifying, without the written consent of the trustee, the rights, duties or immunities of the
    trustee.

 

Except for certain
specified provisions, the holders of at least a majority in principal amount of the outstanding debt securities of any series (or,
at a meeting of holders of such series at which a quorum is present, the holders of a majority in principal amount of the debt
securities of such series represented at such meeting) may, on behalf of the holders of all debt securities of that series, waive
our compliance with provisions of the indenture. The holders of a majority in principal amount of the outstanding debt securities
of any series may, on behalf of the holders of all the debt securities of such series, waive any past default under the indenture
with respect to that series and its consequences, other than a default in the payment of the principal of, premium or any interest
on any debt security of that series; provided, however, that the holders of a majority in principal amount of the outstanding debt
securities of any series may rescind an acceleration and its consequences, including any related payment default that resulted
from the acceleration.

Discharge

    	 

    	

    

The indenture provides that we can elect
to be discharged from our obligations with respect to one or more series of debt securities. In order to exercise our rights to
be discharged with respect to a series, we must deposit with the trustee money or government obligations sufficient to pay all
the principal of, the premium, if any, and interest on, the debt securities of the series on the dates payments are due.

Form, Exchange and Transfer

We will issue the debt
securities of each series only in fully registered form without coupons and, unless we otherwise specify in the applicable prospectus
supplement, in denominations of $1,000 and any integral multiple thereof. The indenture provides that we may issue debt securities
of a series in temporary or permanent global form and as book-entry securities that will be deposited with a depositary named by
us and identified in a prospectus supplement with respect to that series.

At the option of the
holder, subject to the terms of the indenture and the limitations applicable to global securities described in the applicable prospectus
supplement, the holder of the debt securities of any series can exchange the debt securities for other debt securities of the same
series, in any authorized denomination and of like tenor and aggregate principal amount.

Subject to the
terms of the indenture and the limitations applicable to global securities set forth in the applicable prospectus supplement,
holders of the debt securities may present the debt securities for exchange or for registration of transfer, duly endorsed or
with the form of transfer endorsed thereon duly executed if so required by us or the security registrar, at the office of the
security registrar or at the office of any transfer agent designated by us for this purpose. Unless otherwise provided in the
debt securities that the holder presents for transfer or exchange or in the indenture, we will make no service charge for any
registration of transfer or exchange, but we may require payment of any taxes or other governmental charges.

We will name in the
applicable prospectus supplement the security registrar, and any transfer agent in addition to the security registrar, that we
initially designate for any debt securities. We may at any time designate additional transfer agents or rescind the designation
of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required
to maintain a transfer agent in each place of payment for the debt securities of each series.

If we elect to redeem
the debt securities of any series, we will not be required to:

	 	•	issue, register the transfer of, or exchange any debt securities of that series during a period
    beginning at the opening of business 15 days before the day of mailing of a notice of redemption of any debt securities that
    may be selected for redemption and ending at the close of business on the day of the mailing; or
	 	•	register the transfer of or exchange any debt securities so selected for redemption, in whole
    or in part, except the unredeemed portion of any debt securities we are redeeming in part.

 

Information Concerning the Debenture Trustee

The debenture trustee,
other than during the occurrence and continuance of an event of default under the indenture, undertakes to perform only those duties
as are specifically set forth in the indenture. Upon an event of default under the indenture, the debenture trustee must use the
same degree of care as a prudent person would exercise or use in the conduct of his or her own affairs. Subject to this provision,
the debenture trustee is under no obligation to exercise any of the powers given it by the indenture at the request of any holder
of debt securities unless it is offered reasonable security and indemnity against the costs, expenses and liabilities that it might
incur.

Payment and Paying Agents

Unless we otherwise
indicate in the applicable prospectus supplement, we will make payment of the interest on any debt securities on any interest payment
date to the person in whose name the debt securities, or one or more predecessor securities, are registered at the close of business
on the regular record date for the interest.

Unless we otherwise
indicate in the applicable prospectus supplement, we will pay principal of and any premium and interest on the debt securities
of a particular series at the office of the indenture trustee or, at the option of the Company, by wire or check payable to the
holder. Unless we otherwise indicate in a prospectus supplement, we will designate the corporate trust office of the debenture
trustee our sole paying agent for payments with respect to debt securities of each series. We will name in the applicable prospectus
supplement any other paying agents that we initially designate for the debt securities of a particular series. We will maintain
a paying agent in each place of payment for the debt securities of a particular series. All money we pay to a paying agent or the
debenture trustee for the payment of the principal of or any premium or interest on any debt securities which remains unclaimed
at the end of two years after such principal, premium or interest has become due and payable will be repaid to us, and the holder
of the security thereafter may look only to us for payment thereof.

Governing Law

The indenture and the
debt securities will be governed and construed in accordance with the laws of the State of New York.

    	 

    	

    

DESCRIPTION OF WARRANTS

The following description,
together with the additional information we may include in any applicable prospectus supplements, summarizes the material terms
and provisions of the warrants that we may offer and the related warrant agreements and warrant certificates. While the terms summarized
below will apply generally to any warrants that we may offer, we will describe the particular terms of any series of warrants in
more detail in the applicable prospectus supplement. If we indicate in the prospectus supplement, the terms of any warrants offered
under that prospectus supplement may differ from the terms described below. Specific warrant agreements will contain additional
important terms and provisions and will be incorporated by reference as an exhibit to our registration statement registration statement
filed on Form S-3 on September 1, 2017.

General

We may issue warrants
for the purchase of common stock, preferred stock or debt securities in one or more series. We may issue warrants independently
or together with common stock, preferred stock and debt securities, and the warrants may be attached to or separate from these
securities.

We will evidence each series of warrants
by warrant certificates that we will issue under a separate agreement. We may enter into a warrant agreement with a warrant agent.
If we engage a warrant agent, each warrant agent will be a bank that we select which has its principal office in the United States.
We will indicate the name and address of the warrant agent in the applicable prospectus supplement relating to a particular series
of warrants.

Before exercising their
warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon such exercise, including:

 

	 	•	in the case of warrants to purchase debt securities, the right to receive payments of principal
    of, or premium, if any, or interest on, the debt securities purchasable upon exercise or to enforce covenants in the applicable
    indenture; or
	 	 	 
	 	•	in the case of warrants to purchase common stock or preferred stock, the right to receive
    dividends, if any, or, payments upon our liquidation, dissolution or winding up or to exercise voting rights, if any.

 

Additional Information

We will describe in
the applicable prospectus supplement the terms of the series of warrants, including:

 

	 	•	the offering price and aggregate number of warrants offered;
	 	 	 
	 	•	the currency for which the warrants may be purchased;
	 	 	 
	 	•	if applicable, the designation and terms of the securities with which the warrants are issued
    and the number of warrants issued with each such security or each principal amount of such security;
	 	 	 
	 	•	if applicable, the date on and after which the warrants and the related securities will be
    separately transferable;
	 	 	 
	 	•	in the case of warrants to purchase debt securities, the principal amount of debt securities
    purchasable upon exercise of one warrant and the price at, and currency in which, this principal amount of debt securities
    may be purchased upon such exercise;
	 	 	 
	 	•	in the case of warrants to purchase common stock or preferred stock, the number of shares
    of common stock or preferred stock, as the case may be, purchasable upon the exercise of one warrant and the price at which
    these shares may be purchased upon such exercise;
	 	 	 
	 	•	the effect of any merger, consolidation, sale or other disposition of our business on the
    warrant agreement and the warrants;
	 	 	 

	 	•	
the terms of any rights to redeem or call the warrants;
	 	 	 
	 	•	any provisions for changes to or adjustments in the exercise price or number of securities
    issuable upon exercise of the warrants;
	 	 	 
	 	•	the dates on which the right to exercise the warrants will commence and expire;
	 	 	 
	 	•	the manner in which the warrant agreement and warrants may be modified;
	 	 	 
	 	•	a discussion on any material or special United States federal income tax consequences of holding
    or exercising the warrants;
	 	 	 
	 	•	the terms of the securities issuable upon exercise of the warrants; and

    	 

    	

    

	 	•	
any other specific terms, preferences, rights or limitations of or restrictions
    on the warrants.

 

Exercise of Warrants

Each warrant will entitle
the holder to purchase the securities that we specify in the applicable prospectus supplement at the exercise price that we describe
in the applicable prospectus supplement. Unless we otherwise specify in the applicable prospectus supplement, holders of the warrants
may exercise the warrants at any time up to 5 p.m., Eastern time, on the expiration date that we set forth in the applicable prospectus
supplement. After the close of business on the expiration date, unexercised warrants will become void.

Holders of the warrants
may exercise the warrants by delivering the warrant certificate representing the warrants to be exercised together with specified
information, and paying the required amount to the warrant agent in immediately available funds, as provided in the applicable
prospectus supplement. We will set forth on the reverse side of the warrant certificate and in the applicable prospectus supplement
the information that the holder of the warrant will be required to deliver to the warrant agent.

Upon receipt of the
required payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant
agent or any other office indicated in the applicable prospectus supplement, we will issue and deliver the securities purchasable
upon such exercise. If fewer than all of the warrants represented by the warrant certificate are exercised, then we will issue
a new warrant certificate for the remaining amount of warrants. If we so indicate in the applicable prospectus supplement, holders
of the warrants may surrender securities as all or part of the exercise price for warrants.

Enforceability of Rights by Holders of Warrants

Each warrant agent
will act solely as our agent under the applicable warrant agreement and will not assume any obligation or relationship of agency
or trust with any holder of any warrant. A single bank or trust company may act as warrant agent for more than one issue of warrants.
A warrant agent will have no duty or responsibility in case of any default by us under the applicable warrant agreement or warrant,
including any duty or responsibility to initiate any proceedings at law or otherwise, or to make any demand upon us. Any holder
of a warrant may, without the consent of the related warrant agent or the holder of any other warrant, enforce by appropriate legal
action its right to exercise, and receive the securities purchasable upon exercise of, its warrants.

    	 

    	

    

DESCRIPTION OF UNITS

We may issue units
comprised of one or more of the other securities described above in any combination. Each unit will be issued so that the holder
of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations
of a holder of each included security. The unit agreement under which a unit is issued may provide that the securities included
in the unit may not be held or transferred separately, at any time or at any time before a specified date. The applicable prospectus
supplement may describe:

 

	 	•	the designation and terms of the units and of the securities comprising the units, including
    whether and under what circumstances those securities may be held or transferred separately;
	 	 	 
	 	•	any provisions for the issuance, payment, settlement, transfer or exchange of the units or
    of the securities comprising the units;
	 	 	 
	 	•	the terms of the unit agreement governing the units;
	 	 	 
	 	•	United States federal income tax considerations relevant to the units; and
	 	 	 
	 	•	whether the units will be issued in fully registered global form.

 

This summary of certain
general terms of units and any summary description of units in the applicable prospectus supplement do not purport to be complete
and are qualified in their entirety by reference to all provisions of the applicable unit agreement and, if applicable, collateral
arrangements and depositary arrangements relating to such units. The forms of the unit agreements and other documents relating
to a particular issue of units will be filed with the SEC each time we issue units, and you should read those documents for provisions
that may be important to you.Exhibit 10.1

 

 

 

 

 

 

 

 

 

STOCK PURCHASE AGREEMENT

 

by and among

 

Akerna Corp.,

 

the Shareholders of
Solo Sciences, Inc.,

 

and

 

SOLO SCIENCES, INC.

 

November 25, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	Article I. DEFINITIONS	1
	 	 
	Article II. PURCHASE AND SALE OF THE SHARES	15
	 	 
	2.1 Purchase and Sale of the Shares	15
	 	 
	Article III. CLOSING CONSIDERATION; CLOSING	15
	 	 
	3.1 Calculation of Initial Purchase Price	15
	3.2 Payment of Consideration Amount	16
	3.3 The Closing	16
	3.4 Purchase Price Adjustment	17
	3.5 Withholding	19
	 	 
	Article IV. CONDITIONS TO OBLIGATIONS OF AKERNA	19
	 	 
	4.1 Representations and Warranties; Covenants	19
	4.2 Consents	19
	4.3 Absence of Material Adverse Change	20
	4.4 Absence of Litigation	20
	4.5 Governmental Required Consents	20
	4.6 Payoff Letters	20
	4.7 Invoices	20
	4.8 Other Documents	20
	4.9 Amendment of Company Organizational Documents.	22
	 	 
	Article V. CONDITIONS TO THE OBLIGATIONS OF THE SHAREHOLDER PARTIES; TERMINATION	22
	 	 
	5.1 Conditions to the Obligations of the Shareholder Parties	22
	5.2 Termination	23
	5.3 Effect of Termination.	23
	 	 
	Article VI. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS	24
	 	 
	6.1 Organization; Capitalization	24
	6.2 Authorization of Transaction	24
	6.3 Non-contravention	24
	6.4 Litigation	25
	6.5 Ownership of Transferred Shares	25
	 	 
	Article VII. REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY	25
	 	 
	7.1 Organization; Capitalization; Title to Transferred Shares	25
	7.2 Authorization of Transaction	26
	7.3 Non-contravention	27
	7.4 Subsidiaries	27
	7.5 Financial Statements; Absence of Undisclosed Liabilities	28

 

    i

     

    

 

	7.6 Subsequent Events	28
	7.7 Environmental Matters	30
	7.8 Legal Compliance	31
	7.9 Accounts Receivable	33
	7.10 Properties	33
	7.11 Inventory	35
	7.12 Tax Matters	35
	7.13 Intellectual Property	38
	7.14 Contracts and Commitments	39
	7.15 Litigation	42
	7.16 Employee and Consultant Benefits	42
	7.17 No Employees	45
	7.18 Customers and Suppliers	45
	7.19 Insurance	45
	7.20 Loans	46
	7.21 Improper Payments	46
	7.22 Affiliate Transactions; Affiliate Liability	47
	7.23 Personal Property Leases	47
	7.24 Licenses	48
	7.25 Bank Accounts	48
	7.26 Brokers; Company Transaction Expense; Indebtedness	48
	7.27 Government Contracts	48
	 	 
	Article VIII. REPRESENTATIONS AND WARRANTIES OF AKERNA	49
	 	 
	8.1 Organization	49
	8.2 Authorization of Transaction	49
	8.3 No Restrictions Against Purchase of Shares	49
	8.4 Brokers	50
	 	 
	Article IX. ADDITIONAL AGREEMENTS	50
	 	 
	9.1 Commercially Reasonable Efforts; Third Party Consents	50
	9.2 Conduct of Business	51
	9.3 Tail Policy	54
	9.4 Records; Post-Closing Access to Information	54
	9.5 Tax Matters.	55
	9.6 Transfer Taxes	59
	9.7 Transaction Expenses	59
	9.8 Broker’s Fees	59
	9.9 Further Assurances	59
	9.10 Pre-Closing Distribution.	60
	9.11 Akerna Purchase Option.	60
	9.12 Shareholder Repurchase Option.	61
	9.13 Akerna Additional Capital Contribution..	61
	9.14 Payments to The London Fund.	62
	9.15 Appointment of Shareholder Representative.	62
	9.16 License Agreement	63
	9.17 Data Project	64

 

    ii

     

    

 

	Article X. INDEMNIFICATION	64
	 	 
	10.1 Survival	64
	10.2 Shareholder Indemnification	64
	10.3 Limitations on Losses.	65
	10.4 Indemnification Procedures.	65
	 	 
	Article XI. MISCELLANEOUS	68
	 	 
	11.1 No Third Party Beneficiaries	68
	11.2 Entire Agreement	68
	11.3 Successors and Assigns	68
	11.4 Counterparts; Execution	69
	11.5 Headings	69
	11.6 Notices	69
	11.7 Governing Law	70
	11.8 Amendments and Waivers	70
	11.9 Specific Performance	70
	11.10 Incorporation of Exhibits and Schedules	71
	11.11 Exclusive Submission to Jurisdiction; Waiver of Jury Trial	71
	11.12 Public Announcements	71
	11.13 Construction	72
	11.14 Severability	72

 

    iii

     

    

 

schedules AND
EXHIBITS

 

	Schedule 1(b)	Terminated Agreements
	Schedule 3.4	Net Working Capital Methodology
	Schedule 4.2	Material Consents
	Schedule 4.5	Government Consents
	Schedule 4.6	Payoff Letters
	Schedule 4.8(b)	Resigning Directors and Officers
	Schedule 4.8(e)	Non-Compete Parties
	Schedule 4.8(g)	Lien Search Jurisdictions
	Schedule 5.1(d)	Governmental Filings
	Schedule 6.3(b)	Shareholder Required Consents
	Schedule 6.5	Ownership of Transferred Shares
	Schedule 7.1(a)	Organization
	Schedule 7.1(b)	Capitalization
	Schedule 7.1(d)	Officers and Directors
	Schedule 7.3(b)	Company Required Consents
	Schedule 7.4	Subsidiaries
	Schedule 7.5(a)	Financial Statements
	Schedule 7.7(b)	Releases of Hazardous Substances
	Schedule 7.7(c)	Environmental Permits
	Schedule 7.8(b)	Material Permits
	Schedule 7.9	Accounts Receivable
	Schedule 7.10(b)	Owned Real Property
	Schedule 7.10(c)	Leased Real Property
	Schedule 7.12	Tax Matters
	Schedule 7.12(l)	Income Tax Classifications
	Schedule 7.13(a)	Intellectual Property
	Schedule 7.13(b)	Intellectual Property Matters
	Schedule 7.14	Contracts and Commitments
	Schedule 7.15	Litigation
	Schedule 7.16(a)	Employee Benefits
	Schedule 7.16(d)	Multiemployer Plans
	Schedule 7.17(a)	Labor Matters
	Schedule 7.18	Customers and Key Suppliers
	Schedule 7.19	Insurance
	Schedule 7.20	Employee Loans
	Schedule 7.22	Affiliate Transactions
	Schedule 7.23	Leased Personal Property
	Schedule 7.24	Licenses
	Schedule 7.25	Bank Accounts
	Schedule 7.26	Company Transaction Expenses and Indebtedness
	Schedule 8.3	Akerna Required Consents
	Schedule 9.2	Conduct of Business
	 	 
	Exhibit A	Form of Non-Compete
	Exhibit B	Form of Lock-Up Agreement

 

    iv

     

    

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (this “Agreement”), is dated as of November 25, 2019 (the “Signing Date”), and
is by and among (A) Akerna Corp., a Delaware corporation (“Akerna”), (B) the Shareholders
party hereto (a list of whom is set forth on Schedule 1 hereto), either by executing a signature page hereto directly or
by executing a power of attorney in favor of the Shareholder Representatives who are executing this Agreement on behalf of all
Shareholders who have delivered to the Shareholder Representatives an executed power of attorney, (C) Ashesh C. Shah, Lokesh Chugh
and Palle Pedersen, each an adult individual (collectively, the “Shareholder Representatives”) in their capacities
as Shareholder Representatives and also on behalf of all Shareholders who have delivered to the Shareholder Representatives and
executed power of attorney to execute this Agreement on their behalf and (D) Solo Sciences, Inc., a Delaware corporation (the “Company”).
Shareholders and, prior to the Closing, the Company and its Subsidiaries, are collectively referred to herein as the “Shareholder
Parties.” Capitalized terms not otherwise defined shall have the meanings set forth in Article I.

 

Recitals

 

WHEREAS, the
Shareholders executing this Agreement (directly or by the Shareholder Representatives executing this Agreement on their behalf)
on the Signing Date own more than 80% of the Shares, calculated on a fully diluted basis;

 

WHEREAS, the
Shareholders have agreed to transfer 80.40% of the Shares in exchange for newly issued Akerna Shares (as defined below);

 

WHEREAS, for
U.S. federal income tax purposes, Akerna and the Company intend that the Share Transfer (as defined below) will qualify as a “reorganization”
within the meaning of Section 368(a) of the Code, that this Agreement will constitute a “plan of reorganization” with
the meaning of Treasury Regulations Sections 1.368-1(c), 1.368-2(g) and 1.368-3(a), and that Akerna and the Company will each be
a “party to the reorganization” within the meaning of Section 368(b) of the Code; and

 

WHEREAS, Akerna
and the Shareholder Parties desire to make certain representations, warranties, covenants and agreements in connection with the
transfer of the Shares and also to prescribe various conditions to the Share Transfer.

 

NOW, THEREFORE,
for and in consideration of the foregoing premises, and the agreements, covenants, representations and warranties hereinafter set
forth, and other good and valuable consideration, the receipt and adequacy of which are forever acknowledged and accepted, the
Parties, intending to be legally bound, hereby agree as follows:

 

Article
I.

DEFINITIONS

 

In addition to the
words and terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, respectively,
unless the context clearly requires otherwise:

 

“Additional
Capital Contribution” has the meaning assigned to such term in Section 9.13.

 

     

     

    

 

“Affiliate”
means, with respect to any Person, any of (a) a manager, member, partner, director, officer or equity holder of such Person, (b)
a spouse, parent, sibling or descendant of such Person (or a spouse, parent, sibling or descendant of any director or officer of
such Person) and (c) any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, another Person. The term “control” (and its variations such as “controlled
by” or “under common control with”) includes, without limitation, the possession, directly or indirectly, of
the power to direct the management and policies of a Person, whether through the ownership of voting interests, by contract or
otherwise.

 

“Agreement”
has the meaning assigned to such term in the preamble of this Agreement.

 

“Anti-Bribery
Laws” means all anti-bribery and anti-corruption Laws of any jurisdiction, including the UK Bribery Act 2010 and the
U.S. Foreign Corrupt Practices Act (15 U.S.C. 78dd-1 et seq.).

 

“Akerna”
means Akerna Corp., a Delaware corporation.

 

“Akerna”
has the meaning assigned to such term in the preamble of this Agreement.

 

“Akerna Indemnified
Parties” has the meaning assigned to such term in Section 10.2.

 

“Akerna Option
Closing” has the meaning assigned to such term in Section 9.11(c).

 

“Akerna Option
Closing Date” has the meaning assigned to such term in Section 9.11(c).

 

“Akerna Option
Shares” has the meaning assigned to such term in Section 9.11(a).

 

“Akerna Purchase
Option” has the meaning assigned to such term in Section 9.11(a).

 

“Akerna Option
Price” has the meaning assigned to such term in Section 9.11(d).

 

“Akerna Option
Price Share Value” means 20-day volume-weighted average closing price of the Akerna Shares on the NASDAQ or other market
with higher trading volume immediately prior to the Akerna Option Closing Date.

 

“Akerna Shares”
means shares of the common stock of Akerna.

 

“Akerna Tax
Returns” has the meaning assigned to such term in Section 9.5(b)(ii).

 

“Assets”
has the meaning assigned to such term in Section 7.10(a).

 

“Base Amount”
means 1,950,000 Akerna Shares.

 

“Business”
means the business conducted, or contemplated to be conducted by the Company and its Subsidiaries as of the date hereof, including
the development and sale of anti-counterfeit and authentication technology.

 

    2

     

    

 

“Business
Day” means any day except Saturday, Sunday or any day on which banks are generally not open for business in the city
of New York, New York.

 

“Cap”
has the meaning assigned to such term in Section 10.3(b).

 

“Cash on Hand”
means the sum of all cash, cash equivalents and marketable securities held by the Company and its Subsidiaries, as of the Closing
Time, as computed in accordance with GAAP (net of issued but uncleared checks and drafts, pending wire and bank transfers, security
deposits and customer deposits and governmental charges assessed on money or currency transfers or payments, but including checks
and other wire transfers and drafts deposited or available for the account of the Company or one of its Subsidiaries). Cash on
Hand shall exclude any cash which is not freely usable by Akerna because it is subject to restrictions, limitations or Taxes on
use or distribution by law, contract or otherwise, including without limitation, restrictions on dividends and repatriations or
any other form of restriction (collectively, “Restricted Cash”) and cash disbursed on the Closing Date to pay
any Company Transaction Expenses or Indebtedness.

 

“Closing”
has the meaning assigned to such term in Section 3.3.

 

“Closing
Date” has the meaning assigned to such term in Section 3.3.

 

“Closing Date
Schedule” has the meaning assigned to such term in Section 3.4(a).

 

“Closing Indebtedness”
means the outstanding Indebtedness of the Company and its Subsidiaries as of the Closing Time.

 

“Closing Net
Working Capital” means the Net Working Capital of the Company and its Subsidiaries, as of the Closing Time, calculated
in accordance with the template attached hereto as Schedule 3.4.

 

“Closing Statement”
has the meaning assigned to such term in Section 3.1(a).

 

“Closing Share
Value” means $8.00 per Akerna Share.

 

“Closing Time”
means 12:01 a.m., New York, New York time, on the Closing Date.

 

“COBRA”
has the meaning assigned to such term in Section 7.16(c).

 

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

 

“Company Consultant”
means any consultant or independent contractor of the Company or any of its Subsidiaries.

 

“Company Employee”
means any employee of Company or any of its Subsidiaries.

 

“Company Plan”
has the meaning assigned to such term in Section 7.16(a).

 

“Company Proprietary
Software” means all Software owned by the Company and/or any of its Subsidiaries, including, all current and prior versions
of any Software owned by the Company and/or any of its Subsidiaries used to operate the internal computers and systems of the Company
and/or any of its Subsidiaries or used in products and services marketed, licensed, sold or distributed to customers of the Company
and/or any of its Subsidiaries.

 

    3

     

    

 

“Company Tax
Returns” has the meaning assigned to such term in Section 9.5(b)(i).

 

“Company Transaction
Expenses” means (i) all expenses and other amounts that are incurred or will be incurred prior to and through the Closing
Date or are subject to reimbursement by the Company or any of its Subsidiaries, in each case, in connection with the consideration,
review, pursuit, negotiation, preparation, execution and performance of this Agreement and the consummation of the transactions
contemplated hereby, including costs, fees, disbursements and other amounts payable to any financial advisors, attorneys, accountants,
investment banks and other advisors and service providers, (ii) any severance payments, discretionary bonuses, retention payments
and any change-of-control, success, similar payments payable to any person (including to any employee, officer, director or manager
of the Company or its Subsidiaries) as a result of or in connection with the Shareholder Parties entering into this Agreement or
by reason of the performance or consummation of the transactions contemplated by this Agreement, including any sale bonuses, and
any employer-paid portion of all employment and payroll Taxes payable in connection with any of the payments described in this
subpart (ii), and (iii) the Tail Costs, in each case for clauses (i) through (iii) above, to the extent payable by
the Company or its Subsidiaries and which have not been paid in full in cash as of the Closing.

 

“Confidential
Information” means any data or information concerning the Company or any of its Subsidiaries (including trade secrets),
without regard to form, regarding (for example and including, but not limited to) (a) business process models; (b) proprietary
software; (c) research, development, products, services, marketing, selling, business plans, budgets, unpublished financial statements,
licenses, prices, costs, contracts, suppliers, customers, and customer lists; (d) the identity, skills and compensation of employees,
contractors, and consultants; (e) specialized training; and (f) discoveries, developments, trade secrets, processes, formulas,
data, lists, and all other works of authorship, mask works, ideas, concepts, know how, designs, and techniques, whether or not
any of the foregoing is or are patentable, copyrightable, or registrable under any intellectual property Laws or industrial property
Laws in the United States or elsewhere. Confidential Information also includes any information or data described above which the
Company obtains from another party and which the Company treats as proprietary or reasonably designates as confidential information
whether or not owned or developed by the Company.

 

“Consideration”
means the Initial Consideration, as finally adjusted pursuant to Section 3.4.

 

“Consultant
Benefit Plan” means any consultant or independent contractor benefit, fringe benefit, supplemental unemployment benefit,
bonus, incentive, profit sharing, termination, change of control, vacation, pension, retirement, stock option, stock purchase,
stock appreciation, equity incentive, health, welfare, medical, dental, disability, life insurance or any similar plans, programs
or arrangements, other than any plan, program, or arrangement mandated by applicable Law (including plans, programs or arrangements
maintained by a Governmental Authority requiring the payment of social security taxes or similar contributions to a fund of a Governmental
Authority).

 

    4

     

    

 

“Contract”
means any written or unwritten contract, agreement, indenture, note, bond, mortgage, loan, instrument, Lease, license or any other
legally binding commitment or undertaking.

 

“Current Assets”
means the current assets of the Company and its Subsidiaries; provided that, for purposes hereof, the Current Assets shall
not include (a) any Cash on Hand or Restricted Cash, (b) any deferred income Tax assets, (c) any intercompany receivables within
the Shareholder Parties, or (d) customer deposits or receivables in respect of deferred revenue items, calculated based on the
accounting books and records of the Company, in each case determined in accordance with GAAP and on a basis consistent with the
most recent audited Financial Statements delivered pursuant to Section 7.5 of this Agreement.

 

“Current Liabilities”
means the current liabilities of the Company and its Subsidiaries, including accrued vacation and accrued bonus amounts in respect
of any period ending on or prior to the Closing Date; provided that, for purposes hereof, the Current Liabilities shall
not include any (a) deferred income Tax Liabilities, (b) Closing Indebtedness, (c) any item taken into account in the calculation
of Cash on Hand, or (d) the Company Transaction Expenses, all determined based on the accounting books and records of the Company
in accordance with GAAP and on a basis consistent with the most recent audited Financial Statements delivered pursuant to Section
7.5 of this Agreement.

 

“Customers”
has the meaning assigned to such term in Section 7.18.

 

“Date of Exercise”
has the meaning assigned to such term in Section 9.11(b).

 

“Deductible”
has the meaning assigned to such term in Section 10.3(a).

 

“Documents”
means this Agreement, the Escrow Agreement, the Non-Competes, the Lock-Up Agreements and all other agreements, instruments, certificates
and documents to be executed in connection herewith, to consummate the transactions contemplated hereby and thereby.

 

“Employee
Benefit Plan” means (a) any “employee benefit plan” as defined in Section 3(3) of ERISA (whether or not subject
to ERISA), or (b) any other employee benefit, fringe benefit, supplemental unemployment benefit, bonus, incentive, profit sharing,
termination, change of control, vacation, pension, retirement, stock option, stock purchase, stock appreciation, equity incentive,
health, welfare, medical, dental, disability, life insurance or any similar plans, programs or arrangements, other than any plan,
program, or arrangement mandated by applicable Law (including plans, programs or arrangements maintained by a Governmental Authority
requiring the payment of social security taxes or similar contributions to a fund of a Governmental Authority).

 

“Environment”
means any of the following media:

 

(a) land,
including surface land, sub-surface soil or strata and any natural or man-made structures;

 

    5

     

    

 

(b) water,
including coastal and inland waters, surface waters, ground waters, drinking water supplies and waters in drains and sewers, surface
and sub-surface strata;

 

(c) air,
including indoor and outdoor air; and

 

(d) fish,
wildlife, plant life and other natural resources.

 

“Environmental
Laws” means all Laws, as in effect on the date hereof, relating to pollution, the protection of the Environment or use,
storage, handling, manufacture, processing, Releases of exposure to Hazardous Substances, including but not limited the Comprehensive
Environmental Response, Compensation and Liability Act, as amended, the Superfund Amendments and Reauthorization Act, as amended,
the Solid Waste Disposal Act, as amended, the Resource Conservation and Recovery Act, as amended, the Toxic Substances Control
Act, the Federal Insecticide, Fungicide, and Rodenticide Act, as amended, the Clean Water Act, as amended, the Clean Air Act, as
amended, and any applicable United States federal, state or local Law having a similar subject matter.

 

“Environmental
Matter” means:

 

(a) pollution
or contamination of the Environment, including, soil or groundwater contamination or the occurrence or existence of, or the continuation
of the existence of, a Release of any Hazardous Substance;

 

(b) the
treatment, disposal or Release of any Hazardous Substance;

 

(c) exposure
of any Person to any Hazardous Substance; and/or

 

(d) the
violation or alleged violation of any Environmental Law or any Environmental Permit.

 

“Environmental
Permit” means any Permit issued, granted or required under Environmental Laws.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

 

“ERISA Affiliate”
means, with respect to the Company or any of its Subsidiaries, any Person who is required to be treated as a single employer with
the Company or any of its Subsidiaries, as applicable, pursuant to Code Section 414(b), (c), (m) or (o) or ERISA Section 4001(b).

 

“Escrow Account” means
an account established by the Escrow Agent to hold the Escrow Shares in accordance with this Agreement and the Escrow Agreement.

 

“Escrow Agent”
means an escrow agent to be agreed upon by Akerna and the Shareholder Representatives.

 

    6

     

    

 

“Escrow Agreement”
means an escrow agreement among Akerna, the Shareholder Representatives and the Escrow Agent, in a form reasonably acceptable to
each of them.

 

“Escrow Shares”
means 195,000 Akerna Shares.

 

“ESOP”
has the meaning assigned to such term in Section 5.1(b)(vi).

 

“ESOP Amendment”
has the meaning assigned to such term in Section 5.1(b)(vi).

 

“Estimated
Cash on Hand” has the meaning assigned to such term in Section 3.1(a)(ii).

 

“Estimated
Closing Indebtedness” has the meaning assigned to such term in Section 3.1(a)(iii).

 

“Estimated
Company Transaction Expenses” has the meaning assigned to such term in Section 3.1(a)(iv).

 

“Excluded
Claims” has the meaning assigned to such term in Section 10.3(a).

 

“Final Accounting
Firm” has the meaning assigned to such term in Section 3.4(b).

 

“Final Cash
on Hand” has the meaning assigned to such term in Section 3.4(a)(iv).

 

“Final Closing
Date Indebtedness” has the meaning assigned to such term in Section 3.4(a)(ii).

 

“Final Closing
Date Transaction Expenses” has the meaning assigned to such term in Section 3.4(a)(iii).

 

“Final Net
Working Capital” has the meaning assigned to such term in Section 3.4(a)(i).

 

“Financial
Statements” has the meaning assigned to such term in Section 7.5(a).

 

“Fundamental
Documents” means the documents by which any Person (other than an individual) establishes its legal existence or which
govern its internal affairs, including, as applicable, articles or certificate of incorporation, memorandum of association, articles
of association, articles of organization, certificate of formation, declaration of trust, partnership agreement, by-laws, and/or
operating limited liability company agreement.

 

“Fundamental
Representations” means, collectively, the representations and warranties set forth in Sections 6.1 (Organization;
Capitalization), 6.2 (Authorization of Transaction), 6.3 (Non-contravention), 6.5 (Ownership of Transferred
Shares), 7.1 (Organization; Capitalization; Title to Shares), 7.2 (Authorization of Transaction), 7.3 (Non-contravention)
7.4 (Subsidiaries), 7.7 (Environmental Matters), 7.10 (Properties), 7.12 (Tax Matters), 7.13
(Intellectual Property), 7.16 (Employee and Consultant Benefits), 7.17 (No Employees) and 7.26 (Brokers; Company
Transaction Expense; Indebtedness).

 

    7

     

    

 

“Funded Indebtedness”
means Indebtedness of the type referred to in clauses (a), (b), (c), (f), (k) and (l)
of the definition of Indebtedness.

 

“GAAP”
shall mean United States generally accepted accounting principles as in effect from time to time.

 

“General Enforceability
Exceptions” has the meaning assigned to such term in Section 6.2.

 

“Governmental
Authority” means any court, administrative agency or commission or other governmental or quasi-governmental authority
or instrumentality, domestic or foreign, international, provincial, federal, state, county or local.

 

“Hazardous
Substance” means, collectively, any (a) petroleum or petroleum products, or derivative or fraction thereof, radioactive
materials (including radon gas), asbestos in any form that is friable, urea-formaldehyde foam insulation and polychlorinated biphenyls
regulated by 40 CFR Part 761 and/or (b) any chemical, material, substance or waste, which is now defined as or included in the
definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “toxic
substances,” “restricted hazardous wastes,” “contaminants,” or “pollutants”, or terms
of similar meaning or effect, in each case as regulated under Environmental Laws, including but not limited to materials that are
deemed hazardous pursuant to any Environmental Laws due to their ignitability, corrosivity, toxicity, reactivity, or other harmful
characteristics.

 

“Indebtedness”
means, with respect to the Company and any of its Subsidiaries, all Liabilities or obligations created or arising out of (a) all
indebtedness of the Company and any of its Subsidiaries for borrowed money or the deferred purchase price of property or services,
including indebtedness incurred to finance insurance premiums, and whether funded or unfunded, secured or unsecured or with recourse
or without recourse, (b) under or in connection with drawn letters of credit, performance bonds, bankers’ acceptances or
similar instruments, (c) indebtedness, obligations or Liabilities, evidenced by notes, debentures, bonds, merchant cash advance
or factoring agreements or other similar instruments for the payment of which the Company or any of its Subsidiaries is liable,
(d) customer advances or deposits and other deferred revenue items, as required to be accrued for under GAAP, (e) any conditional
sale or other title retention agreement with respect to property acquired by the Company or any of its Subsidiaries (whether or
not the rights and remedies of the Company, any of its Subsidiaries or lender under such agreement in the event of default are
limited to repossession or sale of such property), (f) all indebtedness of any such Person secured by a purchase money mortgage
or other Lien to secure all or part of the purchase price of the property subject to such mortgage or Lien, (g) related to any
earn-out or contingent payment or similar payment or obligation at the maximum payable in respect thereof; (h) arising from cash/book
overdrafts, (i) all the obligations (whether principal, interest, any purchase price to be paid to transfer the ownership of the
leased property to the Company or one of its Subsidiaries or otherwise) under leases which are, or are required to be, in accordance
with GAAP, recorded as finance or capital leases in respect of which such Person is liable as a lessee, (j) in connection with
the unwinding of any hedge, swap or other derivative transaction; (k) all interest, fees, penalties (including pre-payment penalties)
and other expenses owed (or to be owed in connection with the repayment thereof) with respect to the indebtedness referred to above,
and/or (l) all indebtedness referred to above which is directly or indirectly guaranteed by the Company or any of its Subsidiaries
or which the Company or any of its Subsidiaries has agreed (contingently or otherwise) to purchase or otherwise acquire or in respect
of which it has otherwise assured a creditor against loss.

 

    8

     

    

 

“Indemnified
Person” means any Person entitled to indemnification under Article X hereto.

 

“Indemnifying
Person” means any Person with indemnification obligations under Article X hereto.

 

“Indemnity
Reserve Amounts” has the meaning assigned to such term in Section 10.4(g)(i).

 

“Initial Consideration
Amount” means:

 

(a) the Base
Amount;

 

(b) minus
the Escrow Shares; and

 

(d) minus
the IP Purchase Escrow Shares.

 

“Intellectual
Property” means any and all of the following, throughout the world, and all rights arising out of or associated therewith:
(a) all patents and applications therefor and all reissues, divisions, renewals, reexaminations, extensions, provisionals, continuations
and continuations in part thereof; (b) all inventions (whether patentable or not), invention disclosures, improvements, proprietary
information, trade secrets, know how, technology, technical data and customer lists, and all documentation relating to any of the
foregoing; (c) all copyrights, copyright registrations and applications therefor, and all derivative works thereof; (d) all rights
in and good-will associated with internet uniform resource locators, domain names, trade names, logos, slogans, designs, common
Law trademarks and service marks, trademark and service mark registrations and applications therefor; (e) all Software; (f) all
rights in databases and data collections; (g) all other proprietary rights derived under applicable state, federal or foreign Laws;
and (h) all moral and economic rights of authors and inventors, however denominated..

 

“Intellectual
Property Purchase Agreement” means that certain Intellectual Property Purchase Agreement, dated as of February 2, 2018,
by and between Get Solo, LLC, a New Hampshire limited liability company and CED Life Sciences, Inc., a Delaware corporation, as
amended.

 

“Invoices”
means final invoices in respect of all Company Transaction Expenses setting forth (a) the amounts due in respect thereof through
the Closing and (b) wire instructions for payment of such amounts.

 

“IP Purchase
Escrow Shares” means 375,000 Akerna Shares.

 

“IRS”
has the meaning assigned to such term in Section 7.16(a).

 

“Key Supplier”
has the meaning assigned to such term in Section 7.18.

 

“Latest Balance
Sheet Date” has the meaning assigned to such term in Section 7.5(a).

 

    9

     

    

 

“Law”
means all applicable federal, state, local, municipal, foreign or other constitution, law, statute, common law, code, ordinance,
technical or other standing treaty, rule, directive, requirement or regulation, policy, determination, procedures or Order enacted,
adopted or promulgated by any Governmental Authority, including, without limitation, any laws, rules or regulations relating to
import-export and customs services rules or regulations.

 

“Leased Real
Property” has the meaning assigned to such term in Section 7.10(c).

 

“Liability”
means any liability or obligation, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued,
disputed or undisputed, liquidated or unliquidated and whether due or to become due, regardless of when asserted.

 

“Licensed
Intellectual Property” has the meaning assigned to such term in Section 7.13(a)(iii).

 

“Licenses”
shall mean all rights and benefits under licenses, permits, quotas, authorizations, franchises, registrations and other approvals
from any Governmental Authority or from any other Person.

 

“Lien”
means any security interest, pledge, bailment (in the nature of a pledge or for purposes of security), mortgage, deed of trust,
the grant of a power to confess judgment, conditional sales and title retention agreement (including any lease in the nature thereof),
charge, encumbrance, assessment, levy, covenant, easement, right of way, reservation, restriction, cloud on or defect in title,
right of first refusal or first offer, equity, encroachment, burden, option, or other similar arrangement or interest in real or
personal property, including liens (statutory or otherwise), trusts, deemed trusts or other encumbrances.

 

“Limited Source
Supplier” has the meaning assigned to such term in Section 7.18.

 

“Loss”
or “Losses” means any and all damages, losses, actions, proceedings, causes of action, obligations, Liabilities,
claims, encumbrances, Liens, penalties, demands, assessments, settlements, judgments, costs and expenses, including court costs
and reasonable attorneys’ and consultants’ fees and disbursements and costs of litigation.

 

“Market Price”
means the 20-day volume-weighted average closing price of the Akerna Shares on the NASDAQ or other market with higher trading volume
immediately prior to the exercise of the Akerna Purchase Option.

 

“Material
Adverse Change” means, with respect to any Person, any material adverse change in the assets, operations, prospects or
financial condition of such Person; provided, that, for purposes of this Agreement, a Material Adverse Change shall not include
changes to the assets, operations or financial condition of the Business resulting from (a) changes to the U.S. economy, the global
economy, in each case, as a whole, or the industry or markets in which the Business operates (except to the extent such changes
disproportionately affect the Business), (b) general economic, regulatory or political conditions or changes in the countries in
which the Business operates, (c) military action or any act of terrorism, (d) changes in the debt, financing or securities markets,
or (e) changes in Law, except to the extent such material adverse change disproportionately affects or impacts the Company or any
of its Subsidiaries as compared to similarly situated companies in the Business.

 

    10

     

    

 

“Material
Contracts” has the meaning assigned to such term in Section 7.14(a).

 

“Material
Employee Agreement” has the meaning assigned to such term in Section 7.16(a).

 

“Material
Permits” has the meaning assigned to such term in Section 7.8(b).

 

“Multiemployer
Plan” has the meaning set forth in Section 3(37) or 4001(a)(3) of ERISA.

 

“Net Revenue”
means gross revenue received by Solo for the sale of a given Solo Product, less returns and allowances and commissions paid in
respect of such Solo Product.

 

“Net Working
Capital” means, as of a specified time, an amount equal to Current Assets minus Current Liabilities.

 

“Non-Compete”
has the meaning assigned to such term in Section 4.8(e).

 

“Non-Escrow
Shares” shall mean a number of Akerna Shares equal to the Initial Consideration Amount.

 

“Option Fee”
means, for each Solo Product sold during a given Option Fee Year, the lesser of (i) one (1) cent or (ii) seven percent (7%) of
the Net Revenue received by the Company during such Option Fee Year.

 

“Option Fee
Term” means the period commencing on the day immediately after the Closing Date and ending on the earlier of (i) the
date Akerna no longer owns a majority of the Shares; (ii) the date (which must be at least 6 months following the Closing Date)
upon which Akerna Shares have traded above Twelve Dollars ($12.00) for twenty (20) out of thirty (30) trading days; or (iii) December
1, 2029.

 

“Option Fee
Year” means each 12 month period during the Option Fee Term (or portion thereof if the Option Fee Term terminates prior
to the end of such 12 month period) commencing on the day after the Closing Date or an anniversary of the Closing Date and ending
on the next successive anniversary of the Closing Date.

 

“Option Period”
has the meaning assigned to such term in Section 9.11(a).

 

“Orders”
means judgments, writs, decrees, compliance agreements,, injunctions or orders of and Governmental Authority or arbitrator.

 

“Ordinary
Course of Business” means the ordinary course of business consistent with the past custom and practice of the Company
and its Subsidiaries (including with respect to quantity and frequency) with respect to the Business.

 

“Other Post-Closing
Amounts” has the meaning assigned to such term in Section 3.4(a).

 

    11

     

    

 

“Outside Date”
has the meaning assigned to such term in Section 5.2(b).

 

“Owned Intellectual
Property” means all choate and all inchoate Intellectual Property owned by the Company or any its Subsidiaries or subject
to an obligation to assign to the Company or any of its Subsidiaries.

 

“Owned Real
Property” has the meaning assigned to such term in Section 7.10(b).

 

“Party”
means each of Akerna, the Company, the Shareholder Parties and the Shareholder Representatives, and collectively, the “Parties.”

 

“Pay-Off Letters”
has the meaning assigned to such term in Section 4.6.

 

“Pending Claim”
has the meaning assigned to such term in Section 10.4(g)(i).

 

“Permits”
means all permits, licenses, authorizations, registrations, franchises, approvals, certificates, variances and similar rights obtained,
or required to be obtained, from Governmental Authorities, including, without limitation, any requisite occupational licenses,
certificates of competency, manufacturing certifications and ISO certifications.

 

“Permitted
Liens” means (i) Liens for Taxes not yet due and payable or being properly contested in good faith by appropriate proceedings
and which are fully reserved on the books of the Company, (ii) workers or unemployment compensation Liens arising in the Ordinary
Course of Business; (iii) mechanic’s, materialman’s, supplier’s, vendor’s or similar Liens arising in the
Ordinary Course of Business securing amounts that are not yet due and payable and that are released on or before Closing, and (iv)
zoning ordinances, recorded easements and other restrictions of legal record affecting the Real Property or matters which would
be revealed by a survey, and that in either case do not, individually or in the aggregate, materially impair the current use or
occupancy of the Real Property or impair the value or marketability (or, in jurisdictions where any Lien regardless of type or
materiality defeats marketability, insurability) of title in the Real Property.

 

“Person”
shall be construed broadly and shall include an individual, a partnership, a corporation, a limited liability company, an association,
a joint stock company, a trust, a joint venture, an unincorporated organization, or a Governmental Authority (or any department,
agency, or political subdivision thereof).

 

“Personal
Property Leases” shall mean all rights and benefits under leases of tangible personal property.

 

“Policies”
and “Policy” each have the meaning assigned to such term in Section 7.19(a).

 

“PPACA”
has the meaning assigned to such term in Section 7.16(c).

 

“Pre-Closing
Tax Period” means any Tax period or portion thereof ending on or before the Closing Date, including the portion of any
Straddle Period ending on the Closing Date.

 

    12

     

    

 

“Preliminary
Net Working Capital” has the meaning assigned to such term in Section 3.1(a)(i).

 

“Proceeding”
means any action, dispute, suit, proceeding, complaint, charge, hearing, inquiry or investigation before or by a Governmental Authority
or arbitrator.

 

“Real Property”
means, collectively, the Leased Real Property and the Owned Real Property.

 

“Real Property
Lease” has the meaning assigned to such term in Section 7.10(b).

 

“Release”
means any release, spill, emission, leaking, pumping, pouring, emptying, injection, deposit, disposal, discharge, dispersal or
leaching of any Hazardous Substances into the Environment, and “Released” shall be construed accordingly.

 

“Release Date”
has the meaning assigned to such term in Section 10.4(g)(i).

 

“Representative”
means, with respect to a particular Person, any director, officer, manager, employee, agent, consultant, advisor, accountant, financial
advisor, legal counsel or other representative of such Person.

 

“Representative
Losses” has the meaning assigned to such term in Section 9.15(b).

 

“Repurchase
Date of Exercise” has the meaning assigned to such term in Section 9.12(b).

 

“Repurchase
Option” has the meaning assigned to such term in Section 9.12(a).

 

“Repurchase
Option Period” has the meaning assigned to such term in Section 9.12(a).

 

“Repurchase
Shares” has the meaning assigned to such term in Section 9.12(a).

 

“SEC Reports”
has the meaning assigned to such term in Section 8.5.

 

“Shareholders”
has the meaning assigned to such term in the preamble of this Agreement.

 

“Shareholders’
Knowledge” or “Knowledge of the Shareholders” means the actual awareness of facts or circumstances
concerning a matter by any of Ashesh C. Shah, Lokesh Chugh or Palle Pedersen or the knowledge that any of such individuals would
have after reasonable inquiry in respect of matters within their area of primary responsibility.

 

“Shareholder
Parties” has the meaning assigned to such term in the preamble of this Agreement.

 

“Shareholder
Representatives” has the meaning assigned to such term in the Recitals.

 

“Shareholder
Repurchase Price” has the meaning assigned to such term in Section 9.12(d).

 

“Shareholders”
means all of the shareholders of the Company.

 

    13

     

    

 

“Share Transfer”
has the meaning assigned to such term in the recitals of this Agreement.

 

“Shares”
means all of the issued and outstanding capital stock of the Company, calculated on a fully diluted basis.

 

“Signing Date”
has the meaning assigned to such term in the preamble of this Agreement.

 

“Software”
means any computer software program, together with any error corrections, updates, modifications, or enhancements thereto, in both
machine readable form and human readable form, including all comments and any procedural code.

 

“Solo Products”
means the following products sold by the Company: the solo*Tag and the solo*Code.

 

“Straddle
Period” means any Tax Period that includes but does not end on the Closing Date.

 

“Straddle
Period Returns” has the meaning assigned to such term in Section 9.5(b)(ii).

 

“Subsidiary”
means any Person with respect to which a specified Person (or a Subsidiary thereof) has the power to vote or direct the voting
of sufficient equity interests to elect a majority of the board of directors (or equivalent with respect to a Person that is not
a corporation).

 

“Tail Costs”
has the meaning assigned to such term in Section 9.3.

 

“Tail Policy”
has the meaning assigned to such term in Section 9.3.

 

“Target Working
Capital” means negative Two Hundred Fifty Thousand Dollars (- $250,000), excluding December normal course consulting
expenses.

 

“Tax”
or “Taxes” means all taxes, charges, fees, levies, assessments, or other governmental charges (whether federal,
state, local, or non-U.S.), including, without limitation, income, excise, franchise, real or personal property, sales, transfer,
gains, gross receipts, occupation, privilege, payroll, wage, unemployment, workers’ compensation, social security, national
health contributions, pension and employment insurance contributions, use, value added, capital, license, severance, stamp, premium,
windfall profits, environmental, capital stock, profits, withholding, disability, unclaimed property, escheat, registration, customs
duties, employment, alternative or add-on minimum, estimated or other tax of any kind whatsoever (whether disputed or not, whether
payable directly or by withholding and whether or not requiring the filing of a Tax Return), including, without limitation, all
estimated taxes, deferred taxes, deficiency assessments, related charges, fees, interest, penalties, additions to tax or other
assessments.

 

“Tax Period”
or “Taxable Periods” means any period prescribed by any Governmental Authority for which a Tax Return is required
to be filed or a Tax is required to be paid.

 

“Tax Proceeding”
has the meaning set forth in 9.5(i)(i).

 

    14

     

    

 

“Tax Return”
means any federal, state, local or non-U.S. return, estimate, declaration, report, claim for refund, or information return or statement
relating to Taxes, including any schedule, attachment elections and disclosures thereto, and including any amendment thereof.

 

“Terminated
Agreements” means the Contracts set forth on Schedule 1(b).

 

“Transaction”
means the Share Transfer contemplated by this Agreement, together with any and all related transactions and proceedings contemplated
by this Agreement.

 

“Transfer
Taxes” means all transfer, documentary, sales, use, stamp, registration, value-added and other such Taxes, and all conveyance
fees, recording charges and other fees and charges (including any penalties and interest) arising out of or in connection with
the consummation of the transactions contemplated by this Agreement.

 

“Transferred
Shares” has the meaning assigned to such term in Section 2.1.

 

“Transition
Period” has the meaning assigned to such term in Section 9.16.

 

“Treasury
Regulations” means the regulations promulgated under the Code.

 

“WARN”
means the U.S. Worker Adjustment and Retraining Notification Act and any other similar applicable state or local “mass layoff”
or “plant closing” Law.

 

Article
II.

TRANSFER OF THE SHARES

 

2.1
Transfer of the Shares. On and subject to the terms and conditions of this Agreement,
at the Closing, Akerna shall acquire and take assignment and delivery from the Shareholders, and the Shareholders shall sell, transfer,
assign, convey and deliver to Akerna, all right, title and interest in and to 80.40% of the Shares (the “Transferred Shares”)
free and clear of Liens (the “Share Transfer”), for the Consideration.

 

Article
III.

CLOSING
CONSIDERATION; CLOSING

 

3.1
Calculation of Initial Consideration.

 

(a)
Not less than five (5) days prior to the Closing, the Shareholder Representatives shall deliver to Akerna a statement (the
“Closing Statement”) setting forth its good faith estimate of the following:

 

(i)
the estimated Closing Net Working Capital (the “Preliminary Net Working Capital”);

 

(ii)
the amount of the estimated Cash on Hand (the “Estimated Cash on Hand”);

 

    15

     

    

 

(iii)
an itemized list of the estimated Closing Indebtedness (the “Estimated Closing Indebtedness”);

 

(iv)
an itemized list of the estimated Company Transaction Expenses (the “Estimated Company Transaction Expenses”);
and

 

(v)
a calculation of the Initial Consideration Amount, after giving effect to the above.

 

in each case together
with reasonably detailed schedules and data supporting such estimates. The Shareholder Representatives shall consider in good faith
any adjustments to the Initial Consideration Amount proposed by Akerna prior to Closing. For purposes of clarification, if the
Cash on Hand is a negative number, it shall be deemed a deduction from the calculation of both the Initial Consideration Amount
and the Consideration (without duplication).

 

3.2
Payment of Initial Consideration Amount. 

 

(a)
On the Closing Date, Akerna shall make the following payments:

 

(i)
Akerna will pay any Estimated Closing Indebtedness pursuant to the wire instructions set forth in the Pay-Off Letters.

 

(ii)
Akerna will pay any Estimated Company Transaction Expenses pursuant to the wire transfer instructions set forth in the Invoices.

 

(iii)
Akerna shall deliver the Escrow Shares and the IP Purchase Escrow Shares to the Escrow Account to be held by the Escrow
Agent in accordance with the terms and conditions of this Agreement and the Escrow Agreement.

 

(iv)
Akerna shall deliver the Non-Escrow Shares to the Shareholders.

 

(b)
In furtherance of Section 3.2(a)(iii) and (iv), Akerna shall issue in the name of each Shareholder three certificates,
one representing the pro rata portion of the Escrow Shares to which such Shareholder is entitled, one representing the pro rata
portion of the IP Purchase Escrow Shares to which such Shareholder is entitled and one certificate representing the pro rata portion
of the Non-Escrow Shares to which such Shareholder is entitled and deliver such certificates to the Shareholders or the Escrow
Agent, as the case may be.

 

3.3
The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place by remote delivery of documents at the offices of Dentons US LLP in Kansas City, Missouri, five (5) Business Days
after satisfaction or waiver of the conditions to Closing set forth herein, or otherwise at a time and on a date mutually agreeable
to the Parties after the conditions to Closing set forth herein are satisfied or waived. The date on which the Closing occurs shall
be referred to as the “Closing Date.”

 

    16

     

    

 

3.4
Consideration Adjustment.

 

(a)
Not later than the one hundred twentieth (120th) day following the Closing, Akerna shall prepare and deliver to the Shareholder
Representatives, a schedule (the “Closing Date Schedule”) setting forth:

 

(i)
a calculation of the Closing Net Working Capital (the “Final Net Working Capital”) along with reasonable,
written supporting documentation;

 

(ii)
an itemized list of the Closing Indebtedness (“Final Closing Date Indebtedness”);

 

(iii)
an itemized list of the Company Transaction Expenses (“Final Closing Date Transaction Expenses”); and

 

(iv)
the amount of actual Cash on Hand (“Final Cash on Hand”).

 

The amounts in Sections
3.4(a)(ii)-(iv) are referred to herein as the “Other Post-Closing Amounts.”

 

(b)
If the Shareholder Representatives disagree with the Final Net Working Capital or any of the Other Post-Closing Amounts
as reflected on the Closing Date Schedule, they shall notify Akerna in writing within fifteen (15) days after the date on which
Akerna delivers such Closing Date Schedule to the Shareholder Representatives, which shall include the items as to which it disagrees
and its calculation of such disputed amounts with reasonable supporting detail. Akerna and the Shareholder Representatives shall
reasonably cooperate to resolve any such disagreements. If Akerna and the Shareholder Representatives are unable to resolve all
such disagreements on or before the date which is fifteen (15) days following notification by the Shareholder Representatives of
any such disagreements, the Shareholder Representatives and Akerna shall retain a nationally recognized independent public accounting
firm upon whom the Shareholder Representatives and Akerna shall mutually agree, or if no such other accounting firm is willing
to serve as the Final Accounting Firm, then such other qualified Person upon whom the Shareholder Representatives and Akerna shall
mutually agree (such accounting firm or other Person being referred to as the “Final Accounting Firm”), to resolve
all such disagreements, who shall adjudicate only those items still in dispute with respect to the Closing Date Schedule and the
calculation of the Final Net Working Capital and/or any of the Other Post-Closing Amounts. The determination by the Final Accounting
Firm shall be binding and conclusive on both the Shareholder Representatives and Akerna.

 

(c)
The Final Accounting Firm shall offer the Shareholder Representatives and Akerna the opportunity to provide written submissions
regarding their positions on the disputed matters, which written submissions shall be provided to the Final Accounting Firm, if
at all, no later than ten (10) days after the date of referral of the disputed matters to the Final Accounting Firm. The determination
of the Final Accounting Firm shall be based solely on the provisions of this Agreement and such written submissions by the Shareholder
Representatives and Akerna and their respective Representatives and shall not be by independent investigation or review. The Final
Accounting Firm shall deliver a written report resolving only the disputed matters and setting forth the basis for such resolution
within twenty (20) days after the Shareholder Representatives and Akerna submit in writing (or have had the opportunity to submit
in writing but have not submitted) their positions as to the disputed items. In preparing its report, the Final Accounting Firm
shall not assign a value to Final Net Working Capital and/or any of the Other Post-Closing Amounts which is greater or less than
the values submitted by the Shareholder Representatives, on the one hand, or Akerna, on the other hand. The determination of the
Final Accounting Firm with respect to the correctness of Final Net Working Capital and/or any of the Other Post-Closing Amounts
shall be final and binding on the Parties. The fees, costs and expenses of the Final Accounting Firm shall be borne equally by
Akerna and the Shareholder Parties. The Final Accounting Firm shall conduct its determination activities in a manner wherein all
materials submitted to it are held in confidence and shall not be disclosed to third parties (except in connection with the enforcement
of its rights, as required by Law or to prepare its financial statements or Tax Returns). The Parties agree that judgment may be
entered upon the determination of the Final Accounting Firm in any court having jurisdiction over the Party against which such
determination is to be enforced.

 

    17

     

    

 

(d)
The Shareholder Representatives shall be entitled to have reasonable access to the books of the Company, to the extent prepared
specifically in connection with the Final Net Working Capital, the Other Post-Closing Amounts and the Closing Date Schedule and,
upon reasonable prior notice, shall be entitled to discuss such books and records and work papers with the Company and those employees
of the Company responsible for the preparation thereof.

 

(e)
Payments.

 

(i)
Akerna shall be credited with the amount of the Final Closing Date Indebtedness, in accordance with subpart (iv) below.

 

(ii)
Akerna shall be credited with the amount of the Final Closing Date Transaction Expenses, in accordance with subpart (iv)
below.

 

(iii)
the Shareholders will be credited with the amount of the Final Cash on Hand, in accordance with subpart (iv) below.

 

(iv)
 

 

(A)
If, after giving effect to subparts (i) through (iii) above, a net amount is due to Akerna from the Shareholders (such amount,
an “Akerna Adjustment Amount”), such amount shall be satisfied from the Escrow Funds, in which case the Shareholder
Representatives and Akerna shall promptly (but in any event within three (3) Business Days) execute and deliver a joint instruction
to the Escrow Agent instructing the Escrow Agent to release such amount from the Escrow Funds to Akerna.

 

(B)
If, after giving effect to subparts (i) through (iii) above, a net amount is due to the Shareholders from Akerna (such amount,
the “Shareholder Adjustment Amount”), then Akerna shall pay the Shareholder Adjustment Amount, to the Shareholders
in Akerna Shares based on the Closing Share Value within three (3) Business Days after the date such amount is finally determined
pursuant to this Section 3.4.

 

    18

     

    

 

(v)
All amounts payable by Akerna under this Section 3.4 shall be subject to set-off for any claim of Akerna against
any Shareholder Parties.

 

3.5
Withholding. Akerna, Company and any Affiliate thereof shall be entitled to deduct and withhold, and Akerna, Company
and any Affiliate thereof shall deduct and withhold, any amounts they are required to deduct and withhold pursuant to any provision
of Tax Law in connection with any payments required to be made by Akerna, Company or any Affiliate pursuant to the terms of, or
in connection with any transaction contemplated by, this Agreement. To the extent that amounts are so withheld by Akerna, Company,
or any Affiliate, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the person otherwise
entitled to receive such payments pursuant to this Agreement.

 

3.6
Tax Treatment. The Parties intend that the Share Transfer will constitute a reorganization within the meaning of
Section 368(a) of the Code for U.S. federal income Tax purposes, and the Parties agree to report the Share Transfer consistently
therewith (including the information and recordkeeping requirements of Treasury Regulations Section 1.368-3). Akerna and the Company
shall use their respective commercially reasonable efforts to cause the Share Transfer to qualify as a “reorganization”
under Section 368(a) of the Code.

 

Article
IV.

CONDITIONS
TO OBLIGATIONS OF AKERNA

 

The obligation of Akerna
to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following
conditions as of the Closing:

 

4.1
Representations and Warranties; Covenants.

 

(a)
(i) The Fundamental Representations of the Shareholder Parties shall be true, correct and complete in all respects, and
(ii) the other representations and warranties of the Shareholders set forth in Article VI and the other representations
and warranties of the Company set forth in Article VII shall be true, correct and complete in all respects (in the case
of any representation or warranty not qualified by the phrases “materially,” “material,” “in all
material respects,” “material adverse change,” “Material Adverse Change,” and any similar phrase)
or in all material respects (in the case of any representation or warranty qualified by the phrases “materially,” “material,”
“in all material respects,” “material adverse change,” “Material Adverse Change,” and any similar
phrase), in each case, on and as of the Closing Date, as if such representations and warranties were made as of the Closing Date
(except as to any such representation or warranty that speaks as of a specific date, which must be true and correct as of such
specific date).

 

(b)
The Shareholder Parties shall have performed and complied in all respects with all covenants and agreements required by
this Agreement to be performed or complied with by the Shareholder Parties on or prior to the Closing Date.

 

4.2
Consents. The material consents listed on Schedule 4.2, in form and substance satisfactory to Akerna, shall
have been obtained and executed copies thereof delivered to Akerna.

 

    19

     

    

 

4.3
Absence of Material Adverse Change. Since the Signing Date, there shall have been no Material Adverse Change with
respect to the Company or its Subsidiaries.

 

4.4
Absence of Litigation. As of the Closing, there shall not be (a) any Order of any nature issued by a Governmental
Authority with competent jurisdiction directing that the transactions provided for herein or any material aspect of them not be
consummated as herein provided or (b) any Proceeding before any Governmental Authority pending wherein an unfavorable Order would
prevent the performance of this Agreement or the other Documents or the consummation of any aspect of the transactions or events
contemplated hereby, declare unlawful any aspect of the transactions or events contemplated by this Agreement or the other Documents,
cause any aspect of the transaction contemplated by this Agreement or the other Documents to be rescinded or affect, in any material
respect, the right of Akerna to own, operate or control the Company and the Transferred Shares.

 

4.5
Governmental Required Consents. All filings or registrations with any Governmental Authorities listed on Schedule 4.5
which are required for or in connection with the execution and delivery by the Shareholders and the Shareholder Representatives
of the Documents or the consummation of the transactions contemplated thereby, in form and substance satisfactory to Akerna shall
have been obtained or made and executed copies thereof delivered to Akerna.

 

4.6
Payoff Letters. The Shareholder Representatives shall have delivered to Akerna payoff letters duly executed by each
lender, lessor or other of the Funded Indebtedness, including those set forth on Schedule 4.6 (the “Pay-Off Letters”),
indicating that, upon payment of the amount specified in such Payoff Letter, all outstanding obligations of the Company arising
under or relating to such Funded Indebtedness shall be repaid and extinguished in full and that upon receipt of such amount such
Person shall release its Liens and other security interests in, and shall file, or authorize the Shareholder Representatives to
file, Uniform Commercial Code Termination Statements and such other documents necessary to release of record its Liens and other
security interests in the assets and properties of the Company.

 

4.7
Invoices. The Shareholder Representatives shall have delivered to Akerna the Invoices.

 

4.8
Other Documents. The Shareholder Parties or the Shareholder Representatives (as applicable) shall have delivered to Akerna
each of the following:

 

(a)
Written instructions to the Company to transfer the Transferred Shares to Akerna on the Company’s stock register;

 

(b)
Resignations of the directors and officers of the Company and its Subsidiaries set forth on Schedule 4.8(b); and

 

(c)
The Shareholder Representatives shall deliver to Akerna in a form reasonably satisfactory to Akerna a duly completed and
executed certification of the Company’s non-foreign status pursuant to Treasury Regulations Section 1.1445-2(b)(2);

 

(d)
Employment Agreements with each of Ashesh C Shah, Palle Pedersen, Kathleen Flannery, Aryeh Primus, Jamie Leo, Logan Donovan
and Vinay Shah, in a form reasonably acceptable to Akerna;

 

    20

     

    

 

(e)
A non-competition agreement, the form of which is attached hereto as Exhibit A (each, a “Non-Compete”
and, collectively, the “Non-Competes”), duly executed by each of the Persons named on Schedule 4.8(e);

 

(f)
The Escrow Agreement executed by the Shareholder Representatives;

 

(g)
Copies of the results of a recent Uniform Commercial Code, tax and judgment lien search against the Company and its Subsidiaries
in the state and county offices listed on Schedule 4.8(g), and evidence reasonably satisfactory to Akerna that all Liens
(other than Permitted Liens not extinguished at Closing) have been or, at the Closing, will be satisfied, terminated, released
or waived, as appropriate;

 

(h)
Copies of resolutions of the board of directors and stockholders of the Company, authorizing the execution, delivery and
performance of this Agreement by the Company, and a certificate of the secretary of the Company, dated the Closing Date, that such
resolutions were duly adopted and are in full force and effect on the Closing Date;

 

(i)
A long-form good standing certificate of each of the Company and its Subsidiaries, in each case, dated no earlier than five
(5) Business Days prior to the Closing Date, issued by the Secretary of State of the jurisdiction of its formation, together with
certified Fundamental Documents of the Company and its Subsidiaries;

 

(j)
A certificate signed on behalf of the Company by one of its authorized officers certifying that the conditions in Section
4.1 have been satisfied;

 

(k)
Such signature cards for each of the bank accounts listed on Schedule 7.25, as may be necessary to remove the signing
privileges of each of the Persons designated by Akerna;

 

(l)
Evidence that the Terminated Agreements have been terminated in their entirety and that all obligations and Liabilities
of the Company and its Subsidiaries (including obligations to pay money) have been satisfied; and

 

(m)
[reserved]

 

(n)
Lock-up agreements with each of the Shareholders, substantially in the form attached as Exhibit B hereto (the “Lock-Up
Agreements”).

 

4.9
Amendment of Company Organizational Documents. The Shareholder Parties shall have amended the governing documents
(i.e. bylaws / articles of incorporation) of the Company in a form acceptable to Akerna in its sole discretion.

 

4.10
Preferred Equity. All outstanding preferred equity and options of the Company shall have been exercised or cancelled
in a manner acceptable to Akerna in its sole discretion, and any shares of the Company issued upon any such exercise shall be included
in the Shares.

 

4.11
Other Company Shareholders. Each shareholder of the Company not party hereto shall have become party to this Agreement
as a Shareholder.

 

    21

     

    

 

Article
V.

CONDITIONS TO THE OBLIGATIONS OF THE SHAREHOLDER PARTIES; TERMINATION

 

5.1
Conditions to the Obligations of the Shareholder Parties. The obligation of the Shareholder Parties to consummate
the transactions to be performed by them in connection with the Closing is subject to satisfaction of the following conditions
as of the Closing:

 

(a)
Delivery of Payments. Akerna shall have delivered the payments to be made on the Closing Date in accordance with
the provisions of Section 3.2.

 

(b)
Representations and Warranties; Covenants.

 

(i)
The representations and warranties of Akerna set forth in (i) Sections 8.1 and 8.2 shall be true, correct
and complete in all respects and (ii) the other representations and warranties of Akerna set forth in Article VIII shall
be true, correct and complete in all respects (in the case of any representation or warranty qualified by the phrases “materially,”
“material,” “in all material respects,” “material adverse change,” “Material Adverse
Change,” and any similar phrase) or in all material respects (in the case of any representation or warranty qualified by
the phrases “materially,” “material,” “in all material respects,” “material adverse change,”
“Material Adverse Change,” and any similar phrase), in each case, on and as of the Closing Date, as if such representations
and warranties were made as of the Closing Date (except as to any such representation or warranty that speaks as of a specific
date, which must be true and correct as of such specific date).

 

(ii)
Akerna shall have performed and complied in all respects with all covenants and agreements required by this Agreement to
be performed or complied with by Akerna on or prior to the Closing Date.

 

(iii)
Akerna shall have delivered to the Shareholders a certificate signed on behalf of Akerna by one of its authorized officers
certifying that the conditions in Section 5.1(b)(i) and 5.1(b)(ii) have been satisfied.

 

(iv)
Akerna shall have sufficient shares to cause the payment of the Initial Consideration Amount to the Shareholders.

 

(v)
Akerna shall deliver to the Shareholders the Escrow Agreement executed by Akerna.

 

(vi)
Akerna shall have caused Akerna to amend its employee stock ownership plan (“ESOP”), effective as of
the Closing Date, to provide that management and employees of the Company will be eligible to participate in Akerna’s ESOP
(the “ESOP Amendment”) and Akerna shall deliver to Shareholders the ESOP Amendment and all related documents.

 

(c)
Absence of Litigation. As of the Closing, there shall not be (a) any Order of any nature issued by a Governmental
Authority with competent jurisdiction directing that the transactions provided for herein or any material aspect of them not be
consummated as herein provided or (b) any Proceeding before any Governmental Authority pending wherein an unfavorable Order would
prevent the performance of this Agreement or the other Documents or the consummation of any material aspect of the transactions
contemplated hereby, declare unlawful any material aspect of the transactions or events contemplated by this Agreement or the other
Documents, or cause any material aspect of any transaction contemplated by this Agreement or the other Documents to be rescinded.

 

    22

     

    

 

(d)
Governmental Filings. All filings or registrations with any Governmental Authorities listed on Schedule 5.1(d)
which are required for or in connection with the execution and delivery by Akerna of the Documents or the consummation of the transactions
contemplated thereby, shall have been obtained or made.

 

5.2
Termination. This Agreement shall terminate prior to Closing:

 

(a)
upon the mutual written agreement of Akerna and the Shareholders;

 

(b)
upon written notice from Akerna to the Shareholders if, (i) any of the Shareholder Parties shall have breached any of their
representations, warranties, covenants or obligations contained in this Agreement that would give rise to a failure of any condition
precedent set forth in Article IV which breach has not been waived by Akerna and cannot be cured, or has not been cured
within thirty (30) days after the giving of notice by Akerna specifying such breach or (ii) any of the conditions precedent set
forth in Article IV (excluding conditions that, by their nature are to be satisfied at the Closing) shall not have been
satisfied on or before December 31, 2019 (the “Outside Date”), so long as, in the case of clause (ii),
Akerna is not then in material breach of any of its representations, warranties, covenants or agreements contained in this Agreement;
or

 

(c)
upon written notice from the Shareholders to Akerna if, (i) Akerna shall have breached any of its representations, warranties,
covenants or obligations contained in this Agreement that would give rise to a failure of any condition precedent set forth in
Article V (excluding conditions that by their nature are to be satisfied at the Closing) which breach has not been waived
by the Shareholders and cannot be or has not been cured within thirty (30) days after the giving of notice by the Shareholders
specifying such breach, or (ii) any of the conditions precedent set forth in Article V (excluding conditions that, by their
nature are to be satisfied at the Closing) has not been satisfied on or before the Outside Date, so long as, in the case of clause
(ii), none of the Shareholder Parties are then in material breach of any of their representations, warranties, covenants or
agreements contained in this Agreement.

 

5.3
Effect of Termination.

 

(a)
If this Agreement is validly terminated pursuant to, and in accordance with, Section 5.2, all further obligations
of the Parties under this Agreement shall become null and void and of no further force or effect, except that Sections 9.4(c)
(Confidential Information), 9.7 (Transaction Expenses), 11.12 (Public Announcements) and 11.7 (Governing Law)
will survive; provided, however, that nothing in this Section 5.3 will be deemed to release any Party from
any liability for fraud or any willful breach by such Party of the terms and provisions of this Agreement; provided, further,
that if this Agreement is terminated by Akerna because of the breach of this Agreement by any of the Shareholder Parties or by
the Shareholders because of the breach of this Agreement by Akerna or because one or more of the conditions to the terminating
Party’s obligations under this Agreement is not satisfied as a result of the other Party’s failure to comply with its
obligations under this Agreement, the terminating Party’s right to pursue all legal and equitable remedies will survive such
termination unimpaired. 

 

    23

     

    

 

Article VI.

REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

 

 

As a material inducement
to Akerna to enter into and perform its obligations under this Agreement, except as set forth in the corresponding sections or
subsections of the Schedules attached hereto, the Shareholders, on a several basis, represent and warrant to Akerna that the statements
contained in this Article VI are true, correct and complete as of the Signing Date and will be true, correct and complete
as of the Closing Date (except where expressly limited to a specific date, in which case
such statements shall be true, correct and complete only as of such specific date).

 

6.1
Organization; Capitalization. Each Shareholder which is an entity is duly organized, validly existing and in good
standing under the Laws of the state of its formation.

 

6.2
Authorization of Transaction. Each of the Shareholder Representatives (in their capacities as such and on behalf
of the Shareholders pursuant to the power of attorneys referenced in this Agreement) and each Shareholder has all requisite power
and authority to enter into, execute, deliver and perform all of its obligations under this Agreement and all other Documents to
which it is a party executed or to be executed in connection herewith, to consummate the transactions contemplated hereby and thereby
and to perform its obligations hereunder and thereunder. Each Document to which the Shareholder Representatives and/or each Shareholder
is or will be a party has been or when executed will be duly executed and delivered by the Shareholder Representatives or such
Shareholder, as the case may be, and constitutes or when executed, will constitute, the valid and legally binding obligations of
the Shareholder Representatives or such Shareholder enforceable against the Shareholder Representatives or such Shareholder, in
accordance with its terms and conditions, as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and by general equitable principles
(the “General Enforceability Exceptions”). The Shareholders are acquiring the Akerna Shares solely for their
own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof. 
The Shareholders acknowledge that the Akerna Shares are not registered under the Securities Act of 1933 (the “Securities
Act”) or any state securities laws, and that the Akerna Shares may not be transferred or sold except pursuant to the
registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities
laws and regulations, as applicable.  The Shareholders are able to bear the economic risk of holding the Akerna Shares for
an indefinite period (including total loss of their investment) and have sufficient knowledge and experience in financial and business
matters so as to be capable of evaluating the merits and risk of their investment. The Shareholders each are an “accredited
investor” and have not been offered the Akerna Shares by means of any “general solicitation” or “ general
advertising”, all such terms as defined in Regulation D under the Securities Act.

 

6.3
Non-contravention.

 

(a)
The execution, delivery and performance by the Shareholder Representatives and each Shareholder of this Agreement and each
other Document to which the Shareholder Representatives or such Shareholder, as the case may be, is a party, and the consummation
of the transactions contemplated hereby and thereby, do not and will not: (i) conflict with, (ii) result in any violation of or
breach of or default under (with or without notice or lapse of time, or both), (iii) give rise to a right of termination, cancellation,
modification or acceleration of any obligation under, (iv) require any payment, consent, notice or waiver under, (v) result in
any loss of a material benefit or right under, or (vi) result in the creation of any Lien on any equity interest or asset of the
Company or any Subsidiary, in each case, under (1) any Material Contract to which the Company or any Subsidiary is a party or to
which it or any of its assets are subject, (2) the Fundamental Documents of each Shareholder, (3) any Law or other restriction
of any Governmental Authority applicable to each Shareholder or any of its properties or assets.

 

    24

     

    

 

(b)
Except as set forth on Schedule 6.3(b), the Shareholder Representatives are not, and no Shareholder is required to
give any notice to, make any filing with, or obtain any authorization, consent, permit or approval of any Governmental Authority
or any other Person in order for the Parties to consummate the transactions contemplated by the Documents or in order for Akerna
to conduct the Business as presently conducted in the ordinary course immediately following the Closing.

 

6.4
Litigation. There are no Proceedings pending or to Shareholders’ Knowledge, threatened against any Shareholder
relating to the Shares. No Shareholder is subject to or in default under any Order that would prevent, hinder or delay the consummation
of the Transaction.

 

6.5
Ownership of Transferred Shares. The Shareholders are the owner of all of the Transferred Shares and immediately
before the Closing the Shareholders will be the owner of all of the Transferred Shares, free and clear of all Liens. Except as
set forth on Schedule 6.5, no Shareholder is a party to any option, warrant, right, contract, call, put or other agreement
providing for the disposition or acquisition of any Transferred Shares, nor is any Shareholder a party to any voting trust, proxy
or other agreement with respect to voting any Transferred Shares with any other party.

 

Article
VII.

REPRESENTATIONS
AND WARRANTIES REGARDING THE COMPANY

 

As a material inducement
to Akerna to enter into and perform its obligations under this Agreement, except as set forth in the corresponding sections or
subsections of the Schedules attached hereto, the Shareholder Parties, on a joint and several basis, represent and warrant to Akerna
that the statements contained in this Article VII are true, correct and complete as of the Signing Date and will be true,
correct and complete as of the Closing Date (except where expressly limited to a specific date,
in which case such statements shall be true, correct and complete only as of such specific date).

 

7.1
Organization; Capitalization; Title to Transferred Shares.

 

(a)
Each of the Company and each of its Subsidiaries is a legal entity, duly organized, validly existing and in good standing
under the Laws of the state of its formation and has all requisite corporate or company power and authority to own, operate, lease
or otherwise hold its properties and to carry on its business, including the Business, as presently conducted. Each of the Company
and each of its Subsidiaries is duly qualified or licensed to do business and is in good standing in each jurisdiction in which
the character of the properties owned, operated or leased by it or the nature of the activities conducted by it make such qualification
or licensing and good standing necessary, except for such failures to be so duly qualified or licensed and in good standing that
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change. Schedule 7.1(a) lists
the jurisdiction of organization of the Company and each of its Subsidiaries and each jurisdiction in which the Company and its
Subsidiaries is qualified or licensed to do business.

 

    25

     

    

 

(b)
The authorized and outstanding equity interests of the Company and each of its Subsidiaries are as set forth on Schedule
7.1(b). Each outstanding equity interest shown thereon, including the Transferred Shares, is duly authorized, validly issued,
fully paid and nonassessable. Except as set forth on Schedule 7.1(b) there are no outstanding or authorized (i) options,
warrants, purchase rights, subscription rights, conversion rights, exchange rights, rights of first refusal, preemptive rights,
or other contracts or commitments that require the Company or any of its Subsidiaries to issue, sell, or otherwise cause to become
outstanding any of its equity interests nor are there any securities convertible or exchangeable into any equity interest of the
Company or any of its Subsidiaries, or (ii) stock appreciation, phantom stock, profit participation or similar rights with respect
to the Company or any of its Subsidiaries.

 

(c)
The equity interests set forth on Schedule 7.1(b) constitute all of the issued and outstanding equity interests of
the Company and its Subsidiaries.

 

(d)
The copies of the minute book and equity contribution records of the Company and each of its Subsidiaries have been delivered
or made available to Akerna for inspection and are true and correct and appropriately reflect all material company action taken
by the Company and its Subsidiaries. The names of the current directors and officers (or the equivalent with respect to Company
Subsidiaries that are not corporations) of the Company and its Subsidiaries (prior to giving effect to the resignations to be delivered
pursuant to Section 4.11(b)) are set forth in Schedule 7.1(d).

 

7.2
Authorization of Transaction. Each of the Company and its Subsidiaries has all requisite corporate or company power
and authority to enter into, execute, deliver and perform all of its obligations under this Agreement and all other Documents to
which it is or will be a party executed or to be executed in connection herewith, to consummate the transactions contemplated hereby
and thereby and to perform its obligations hereunder and thereunder. Each Document to which the Company or any of its Subsidiaries
is or will be a party has been duly and validly authorized by all necessary action on the part of the Company and such Subsidiary,
as applicable, and each Document to which the Company or any of its Subsidiaries is a party has been or when executed will be duly
executed and delivered by the Company or its Subsidiary, as applicable, and constitutes or when executed will constitute the valid
and legally binding obligations of the Company or its Subsidiary, as applicable, enforceable against the Company or such Subsidiary,
as applicable, in accordance with its terms and conditions, subject to the General Enforceability Exceptions.

 

    26

     

    

 

7.3
Non-contravention.

 

(a)
Neither the execution, delivery and performance of the Documents by the Company or any of its Subsidiaries nor the consummation
of the transactions contemplated by the Documents by the Company or any of its Subsidiaries:

 

(i)
violates any Law as to which the Company or any of its Subsidiaries is subject; or

 

(ii)
conflicts with or violates any provision of the Fundamental Documents of the Company or any of its Subsidiaries.

 

(b)
Except as set forth on Schedule 7.3(b), none of the Company or any of its Subsidiaries is required to give any notice
to, make any filing with, or obtain any authorization, consent, or approval of any Governmental Authority or any consent or approval
of any other Person in order for the Parties to consummate the transactions contemplated by the Documents or in order for Akerna
to conduct the Business in the Ordinary Course of Business immediately following the Closing.

 

(c)
The Fundamental Documents of the Company and its Subsidiaries that have been furnished or made available to Akerna are complete
and correct copies of all Fundamental Documents (including all amendments thereto) of the Company and its Subsidiaries. The Fundamental
Documents of the Company and its Subsidiaries are in full force and effect, and no other Fundamental Documents are applicable to
or binding upon the Company or its Subsidiaries. None of the Company or any of its Subsidiaries is in violation of any provisions
of its Fundamental Documents.

 

(d)
Assuming that all consents, approvals and authorizations contemplated by, and all filings described in, Schedule 7.3(b)
are obtained or made the execution, delivery and performance by each of the Company and each of its Subsidiaries of this Agreement
and each other Document to which it is a Party, and the consummation of the transactions contemplated hereby and thereby, do not
and will not: (i) result in any breach of or constitute a default under or give rise to any right of termination, cancellation,
modification, amendment or acceleration of (whether after the filing of notice or the lapse of time or both) any Material Contract,
(ii) require a consent or notice under, give rise to a material loss of any benefit to which the Company or any of its Subsidiaries
is entitled under, or materially impair any of its rights under any Material Contract, to which the Company or any of its Subsidiaries
is a party or by which it or any of its assets are bound or affected; or (iii) result in the creation or imposition of any Lien
(other than a Permitted Lien) on the properties or assets of the Company or any of its Subsidiaries.

 

7.4
Subsidiaries. Other than as set forth on Schedule 7.4, the Company does not have any Subsidiaries or own,
directly or indirectly, any stock, partnership interest, limited liability company interest or joint venture interest in, or any
security issued by, any other Person. All of the issued and outstanding equity interests of the Company’s Subsidiaries are
owned beneficially and of record by the Company and are fully paid and non-assessable. There are no outstanding or authorized (i)
options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, rights of first refusal, preemptive
rights, or other contracts or commitments that require any of the Company’s Subsidiaries to issue, sell, or otherwise cause
to become outstanding any of its equity interests nor are there any securities convertible or exchangeable into any equity interest
of such Subsidiaries, or (ii) stock appreciation, phantom stock, profit participation or similar rights with respect to such Subsidiaries.

 

    27

     

    

 

7.5
Financial Statements; Absence of Undisclosed Liabilities.

 

(a)
Attached hereto as Schedule 7.5(a) is a correct and complete copy of (i) the unaudited consolidated balance sheet
(including any related notes thereto) of the Company and its Subsidiaries as at December 31,2018, together with the unaudited consolidated
statement of operations and cash flows for the Company and its Subsidiaries as at December 31, 2018 and (ii) an unaudited balance
sheet of the Company and its Subsidiaries as of October 31, 2019 (the “Latest Balance Sheet Date”), together
with the unaudited statement of operations and cash flows for the ten10) months then ended (the financial statements referred to
in clauses (i) and (ii), being the “Financial Statements”). The Financial Statements were prepared
in accordance with GAAP applied on a consistent basis throughout the periods involved (except as indicated in the notes thereto),
and each fairly presents in all material respects the financial position of the Company and its Subsidiaries at the respective
dates and the results of their operations and cash flows for the periods indicated, except as otherwise set forth in the notes
thereto and, in the case of interim statements, for ordinary course, year-end audit adjustments that are not, individually or in
the aggregate, material.

 

(b)
The Company and its Subsidiaries maintain accurate books and records reflecting their material assets and liabilities and
maintain, and have maintained for all periods reflected in the Financial Statements, proper and adequate internal accounting controls
that provide reasonable assurance that (i) material transactions are recorded as necessary to permit accurate preparation of their
financial statements and to maintain accurate accountability for their assets; (ii) the reporting of their assets is compared with
existing assets at regular intervals; and (iii) accounts, notes and other receivables and inventory are recorded accurately, subject
to the allowances for doubtful accounts included therein and proper and adequate procedures are implemented to effect the collection
thereof on a current and timely basis.

 

(c)
None of the Company or any of its Subsidiaries has any material Liabilities or obligations, whether accrued, absolute, fixed,
contingent, or otherwise, whether due or to become due, other than (a) Liabilities that are specifically set forth and adequately
reserved against in the Financial Statements dated as of the Latest Balance Sheet Date and specifically reflected on such Financial
Statements, (b) Liabilities incurred in the Ordinary Course of Business since the Latest Balance Sheet Date, (c) executory obligations
under Contracts to which the Company or one of its Subsidiaries is a party, but not Liabilities arising out of any breach of any
such Contract occurring on or prior to the Closing Date, and (d) Liabilities included in the calculation of Closing Net Working
Capital. None of the Company or any of its Subsidiaries is responsible for any obligations or Liabilities of any Shareholder Parties
or any of their Affiliates (other than the Company and its Subsidiaries), whether accrued, absolute, fixed, contingent, or otherwise,
whether due or to become due.

 

7.6
Subsequent Events. Since January 1, 2019: (a) each of the Company and its Subsidiaries has conducted its businesses
in the Ordinary Course of Business consistent with past practice, except for the negotiation, execution, delivery and performance
of this Agreement and the Documents, (b) there has not occurred any event that, individually or in the aggregate, has had or would
reasonably be expected to have a Material Adverse Change on the Company or its Subsidiaries, and (c) none of the Company or its
Subsidiaries has:

 

(i) issued,
sold, transferred, disposed of, acquired, redeemed, granted options or rights to purchase, rights of first refusal or subscription
rights, or sold any securities of the Company or its Subsidiaries (or securities convertible into or exchangeable for capital stock,
voting securities or other ownership interests or securities with profit participation features) or permitted any reclassifications
of any securities of the Company or any of its Subsidiaries, except as set forth on Schedule 6.5;

 

    28

     

    

 

(ii) amended
or modified its Fundamental Documents in any manner, except for amendments to its Certificate of Incorporation on July 12, 2019
and September 24, 2019;

 

(iii) declared,
paid or otherwise set aside for payment any non-cash dividend or other non-cash distribution with respect to the Transferred Shares
or any other equity securities;

 

(iv) merged
or consolidated with, or acquired all or substantially all the assets of, or otherwise acquired, any business, business organization
or division thereof, or any other Person;

 

(v) sold,
leased, licensed, sublicensed, assigned, transferred or became subject to any Lien (other than Permitted Liens) or otherwise disposed
of any assets other than (i) the sale and/or licensing of inventory (including tests and content) and damaged or obsolete or excess
equipment; (ii) the settlement of accounts receivable; and (iii) the sale of goods, in each case in the Ordinary Course of Business;

 

(vi) canceled
any material debts or claims, or suffered any material loss or waived any rights of material value (in each case outside of the
ordinary course of business consistent with past practice);

 

(vii) made
any loans or advances to, or guaranties of loan or advances for the benefit of, any Person;

 

(viii) settled
or compromised any material Proceeding;

 

(ix) (A)
entered into any new, or amended or terminated (other than for cause) any Material Employee Agreement; (B) granted any material
increases in the compensation perquisites or benefits to current or former officers, directors, employees or consultants, other
than normal increases in the ordinary course of business to the extent consistent with the past practice of the Company; or (C)
agreed to grant or granted any equity-related, cash-based, performance or similar awards or bonuses or any other award that, at
the option of the grantee, is to be settled in securities of the Company or any of its Subsidiaries;

 

(x)
(A) adopted, amended or terminated any Employee Benefit Plan (other than as required by applicable Law) or adopted or entered into
any new Employee Benefit Plan or materially increased the benefits provided under any Employee Benefit Plan (other than increases
incurred in the ordinary course of business to the extent consistent with past practice), or promised or committed to undertake
any of the foregoing in the future; or (B) entered into, amended or extended any collective bargaining or other labor agreement;

 

    29

     

    

 

(xi) delayed
or postponed the payment of accounts payable or other Liabilities or otherwise conducted its cash management customs and practices
other than in the ordinary course of business consistent with past practice (including with respect to purchases of supplies, repairs
and maintenance, levels of capital expenditures and operation of cash management practices generally);

 

(xii) accelerated
or caused the acceleration of the collection or receipt of any accounts receivable or the realization of other current assets or
otherwise conduct its cash management customs and practices other than in the ordinary course of business consistent with past
practice (including with respect to pricing and credit practices and operation of cash management practices generally);

 

(xiii) engaged
in any promotional sales or material discount or other activity with customers outside of the Ordinary Course of Business;

 

(xiv) abandoned
or permitted to lapse any Owned Intellectual Property;

 

(xv) entered
into any transaction with or for the benefit of any Affiliate other than the transactions contemplated by this Agreement, the other
Documents and the transactions contemplated herein and therein;

 

(xvi) made
or changed any material Tax election, settled or compromised any material Tax claim or Tax Proceeding, consented to any waiver
of the statute of limitations period applicable to any Tax claim or Tax Proceeding, and entered into any closing agreement with
respect to material Taxes;

 

(xvii) terminated
the coverage of any insurance policies, or failed to maintain insurance upon all its material assets and properties in such amounts
and of such kinds comparable to that in effect as of the date hereof;

 

(xviii) made
any change in accounting practices or policies other than as required by applicable Law or GAAP; or

 

(xix) authorized,
or committed or agreed to take, any of the foregoing actions that would affect the Company or any of its Subsidiaries or otherwise
be in effect from and after the Closing.

 

7.7
Environmental Matters.

 

(a)
The Company has disclosed and made available to Akerna copies of all material records, reports, data, correspondence, and
other documents in the possession or control of any of the Shareholder Parties or any Affiliates thereof relating to Environmental
Matters with respect to the Business or the Real Property, including all such documents prepared for, submitted to, or received
from, applicable Governmental Authorities.

 

    30

     

    

 

(b)
Except as disclosed on Schedule 7.7(b): (i) no Release of any Hazardous Substance has occurred, or, to Shareholders’
Knowledge, is threatened at, on, under, or from any Real Property, the Company, any of the Company’s Subsidiaries, or the
Business that could give rise to liability under any Environmental Law and (ii) none of the Shareholder Parties has received written
notice alleging that, the Company or any of its Subsidiaries may be responsible for any Release of Hazardous Substances with respect
to the Real Property or the Business or for any material costs or Liabilities arising under, or material violation of, Environmental
Laws with respect thereto, and no facts exist that could be reasonably likely to impose any such Liabilities.

 

(c)
Schedule 7.7(c) sets forth a list of all Environmental Permits held by the Company and/or its Subsidiaries and used
in connection with the Business. Such Environmental Permits constitute all the licenses and permits required under the Environmental
Laws in connection with the conduct of the Business as presently conducted. There are no legal Proceedings pending or to Shareholders’
Knowledge, threatened in respect of any such Environmental Permits, all such Environmental Permits are in full force and effect,
and timely and complete applications for renewal of such Permits have been filed with the appropriate Governmental Authorities
where required.

 

(d)
The Company and each of its Subsidiaries is, and has at all times been, in compliance with Environmental Laws or Environmental
Permits.

 

(e)
The Company and its Subsidiaries (i) are not subject to any Order, settlement agreement, consent orders, fines or penalties,
in connection with any liability or violation, alleged or otherwise, arising under Environmental Law and (ii) have not assumed,
undertaken, or provided an indemnity with respect to any liability or potential liability of any other person or entity under any
Environmental Law.

 

(f)
Neither this Agreement nor the consummation of the transactions contemplated hereby will result in any obligation for site-investigation
or cleanup, or notification to, or consent of, Governmental Authorities or third parties, pursuant to any of the so-called “transaction-triggered”
or “responsible party transfer” Environmental Laws.

 

7.8
Legal Compliance. 

 

(a)
Each of the Company and each of its Subsidiaries is and has been operated in compliance with all, and not in violation of
any, and, to its best knowledge is not under investigation with respect to, and has not been threatened to be charged with or given
notice of any violation of any, and has not conducted any internal investigations or received any internal claims with respect
to, any violation of any, Laws applicable to the Business, the Company and/or the Company’s Subsidiaries.

 

(b)
Each of the Company and each of its Subsidiaries is in possession of all Permits of all Governmental Authorities and certification
organizations required and material for the conduct of the Business and operation of its facilities as now being conducted or as
may be conducted prior to the Closing (the “Material Permits”). Each of such Material Permits is set forth on
Schedule 7.8(b), true and complete copies of which have been made available to Akerna. All such Material Permits are in
full force and effect, and will not be subject to cancellation or revocation as a result of consummation of the Transactions contemplated
hereby. The Company, its Subsidiaries and each of the Company Employees are in compliance with all such Material Permits. None
of the Company or any of its Subsidiaries has received any written notice from any Governmental Authority alleging any failure
to possess any Material Permit or for any failure to keep any Material Permit in full force and effect, nor has the Company or
any of its Subsidiaries received written notice from any Governmental Authority instituting proceedings for the cancellation, non-renewal
or modification of any Material Permits. To the Company’s best knowledge, no Governmental Authority is currently auditing
the Company or any of its Subsidiaries nor has the Company or any of its Subsidiaries received any written notice that any Governmental
Authority is intending to audit the Company or any of its Subsidiaries.

 

    31

     

    

 

(c)
Neither the Company nor any of its Subsidiaries, nor any of their current or former officers or directors, nor any of their
respective other Representatives, have received, made, offered or authorized, directly or indirectly, in connection with the operation
or maintenance of the business of the Company or any of its Subsidiaries or in connection with this Agreement or otherwise, any
contribution, bribe, rebate, payoff influence payment, kickback, other payment or gift of anything of value, regardless of what
form, whether in money, property or services (each, a “Payment”) to a government official, or to any other Person
while knowing or having reason to suspect that any part of such Payment will be given or promised to a government official, and
that such Payment would: (A) influence any act or decision of such government official in his/her or its official capacity; (B)
obtain or pay for favorable treatment for the Company or any of its Subsidiaries or other Contracts secured; (C) induce such government
official to do or omit to do any act in violation of the lawful duty of such government official; (D) induce such government official
to use his/her or its influence with any Governmental Authority, public international organization or political party, to affect
or influence such Governmental Authority, organization or party; (E) secure any improper advantage; (F) obtain special concessions
or for special concessions already obtained; or (G) otherwise be in violation of any Law, including any Anti-Bribery Law. None
of the Company or any of its Subsidiaries has received any communication that alleges that the Company or any of its Subsidiaries
or their respective Representatives is in violation of, or has liability under any such Laws.

 

(d)
Each of the Company and its Subsidiaries has established and maintains reasonable internal controls and procedures to ensure
compliance with all applicable Anti-Bribery Laws; and which each of the Company and its Subsidiaries reasonably believes to be
adequate to prevent Representatives and other persons acting on behalf of the Business, the Company or its Subsidiaries from bribing
any person.

 

(e)
Neither the Company nor any of its Subsidiaries nor any of their respective Representatives is a target of U.S. economic
sanctions or trade controls, including but not limited to the List of Specially Designated Nationals and Blocked Persons administered
by the United States Treasury Department’s Office of Foreign Assets Control (the “SDN List”). Without
limitation to the foregoing, neither the Company nor any of its Subsidiaries nor any of their respective Representatives is (i)
named on the SDN List, (ii) owned or controlled, in whole or in part, by any Person named on the SDN List, or (iii) acting for
or on behalf of any Person on the SDN List.

 

    32

     

    

 

(f)
The Business, the Company and each of its Subsidiaries have been and are in material compliance with all applicable export
control, customs, and sanctions requirements, including sanctions administered by the Office of Foreign Assets Control of the Treasury
Department, the requirements of the Export Administration Regulations (EAR), the International Traffic In Arms Regulations (ITAR)
and any orders and licenses issued thereunder, which requirements include obtaining all proper authorizations or licenses from
the Department of Commerce or the Department of State for the export or re-export of any item, product, article, commodity or technical
data.

 

7.9
Accounts Receivable. Schedule 7.9 sets forth a complete and accurate list of all accounts receivable set forth
in the Financial Statements dated as of the Latest Balance Sheet Date. With respect to such accounts receivable reflected on Schedule 7.9:
(a) such accounts receivable have arisen solely out of bona fide sales and deliveries of goods, performance of services and other
business transactions in the Ordinary Course of Business, (b) except to the extent of any reserve for doubtful accounts recorded
in accordance with GAAP and specifically reflected on the Financial Statements as of the Latest Balance Sheet Date, such accounts
receivable have been collected or are collectible in the Ordinary Course of Business in the book amounts thereof and (c) such accounts
receivable are not subject to valid defenses, set offs or counterclaims.

 

7.10
Properties.

 

(a)
Each of the Company and each of its Subsidiaries has good title to, or has valid leasehold interests in, all tangible and
intangible personal property and other assets used in the Business as currently conducted (the “Assets”), free
and clear of all Liens other than Permitted Liens. The Assets and the Real Property are, taken as a whole, in such condition and
repair (ordinary wear and tear excepted) as is sufficient, to operate the Business after the Closing Date in substantially the
same manner as presently conducted.

 

(b)
Schedule 7.10(b) sets forth a listing of any and all real property owned by the Company or any of its Subsidiaries
(the “Owned Real Property”), which schedule includes the respective street addresses thereof.

 

(c)
Schedule 7.10(c) sets forth a listing of any and all real property leased by the Company or any of its Subsidiaries
(the “Leased Real Property”), which schedule includes the respective street addresses thereof. The Company or
the applicable Subsidiary of the Company has a valid license or leasehold interests in all of its Leased Real Property and a valid
fee ownership interest in its Owned Real Property, subject, in each case to Permitted Liens. The Company has furnished or made
available to Akerna, true and correct copies of all leases and licenses (together with any amendments and modifications thereto)
under which the Company or any of its Subsidiaries is the landlord, sublandlord, licensor, tenant, subtenant or occupant of real
property (each a “Real Property Lease”). Each Real Property Lease was entered into at arms’ length and
in the ordinary course, is in full force and effect and, to Shareholders’ Knowledge, is valid and binding upon and enforceable
against each of the parties thereto (subject to the General Enforceability Exceptions). Neither the Company, any of its Subsidiaries,
nor to Shareholders’ Knowledge, any other party to each Real Property Lease, is in material breach or material default under
such Real Property Lease, and no event has occurred or failed to occur or circumstance exists that, with the delivery of notice,
the passage of time or both, would constitute such a material breach or material default, or permit termination, modification or
acceleration of rent under such Real Property Lease, and no party to any Real Property Lease has, since January 1, 2019, given
the Company any written notice of any claim of any such material breach, default or event. There are no Proceedings, disputes or
conditions affecting any Real Property that reasonably would be expected to materially curtail or interfere with the use of such
property.

 

    33

     

    

 

(d)
There are no pending, or to Shareholders’ Knowledge, threatened, condemnation, eminent domain or similar proceedings,
or litigation or other proceedings affecting the Real Property or improvements thereon and the Company has not received any written
notice from a Governmental Authority of its intention to take or use any Real Property.

 

(e)
None of the Company or any of its Subsidiaries has received any notice of, or other writing referring to, any requirements
or recommendations by any insurance company that has issued a policy covering any part of the Real Property or by any board of
fire underwriters or other body exercising similar functions, requiring or recommending any repairs or work to be done on any part
of the Real Property, which repair or work has not been completed. The use and operation of all Real Property conform to all applicable
building, zoning, fire, health, safety and subdivision Laws, Environmental Laws and other Laws, and all restrictive covenants and
restrictions and conditions affecting title, except for such nonconformity which is not material. All public utilities (including
water, gas, electric, storm and sanitary sewage and telephone utilities) required to operate the facilities of the Company and
its Subsidiaries as currently operated are available to such facilities. None of the Company or any of its Subsidiaries has received
any written notice of any delinquent bills or invoices or any proposed, planned or actual curtailment of service of any utility
supplied to any of its facilities.

 

(f)
All buildings, structures, fixtures, building systems and material equipment that are part of the Real Property are, in
good operating condition and repair (ordinary wear and tear excepted), and are adequate and suitable for the operation of the Business
in substantially the same manner as presently conducted and are structurally sound and free of material defects.

 

(g)
Each of the Company and each of its Subsidiaries has obtained all appropriate certificates of occupancy, Licenses, easements
and rights of way, including proofs of dedication, required to use and operate the Real Property in the manner in which the Real
Property is currently being used and operated. True and complete copies of all such certificates, permits and Licenses have heretofore
been delivered to Akerna or its representatives. Each of the Company and each of its Subsidiaries has all approvals, permits and
Licenses (including any and all Environmental Permits) necessary to lease or operate the Real Property as currently leased and
operated, as the case may be, except where the failure to have any such approvals, permits or licenses is not material.

 

(h)
All machinery, equipment, furniture, fixtures and other personal property and all plants, buildings, structures and other
facilities, including, without limitation, office space used by the Company or any of its Subsidiaries in the conduct of its Business,
are in good operating condition and fit for operation in the ordinary course of business (subject to normal wear and tear) except
for any defects which will not interfere with the conduct of normal operations of the Company and its Subsidiaries. The Company
has delivered to Akerna or its representative true and complete copies of any leases, licenses and other material Contracts related
to the Real Property.

 

    34

     

    

 

(i)
The Leased Real Property and the Assets are all of the real property and personal property required to conduct the Business
as presently conducted. No Shareholder Party or any of their Affiliates (other than the Company and its Subsidiaries) owns any
Assets or any other asset used in, or necessary in connection with the conduct of, the Business.

 

(j)
To Shareholders’ Knowledge, there are no adverse physical characteristics applicable to the Real Property, such as,
without limitation, sink holes, which would adversely affect development of the Real Property.

 

7.11
Inventory. All inventory is owned by the Company or its applicable Subsidiary free and clear of all Liens other than
Permitted Liens, is of a good and merchantable quality usable and salable in the Ordinary Course of Business, is fit for the purpose
for which it was manufactured, is recorded at the lower of cost or market in accordance with GAAP, and is not defective or damaged
and no such inventory is obsolete, slow-moving or will become out-of-date or expire prior to the first anniversary of the Closing
Date. None of the Company or any of its Subsidiaries has engaged in any “bill and hold” or similar arrangement, and
none of the Company or any of its Subsidiaries is in possession of any inventory with respect to which it has recognized revenue.

 

7.12
Tax Matters. Except as set forth on Schedule 7.12:

 

(a)
The Company and each of its Subsidiaries has duly and timely file or caused to be filed, or shall file or cause to be filed,
all income and other material Tax Returns that are required to be filed on or prior to the Closing Date (taking into account any
applicable extension of time within which to file) by, or with respect to, the Company and each of its Subsidiaries, and all such
Tax Returns are true, correct and complete in all material respects. All Taxes payable by or with respect to the Company and each
of its Subsidiaries on or prior to the Closing Date have been (or will be) paid prior to the Closing Date. In the case of Taxes
of the Company and each of its Subsidiaries accruing for a period (or portion thereof) ending on or before the Closing Date that
are not due on or before the Closing Date, has made adequate provision (not including any provision for deferred Taxes established
to reflect timing differences between book and Tax income) in its books and records (as applicable) and on the face of its Financial
Statements (rather than in any notes thereto) for such payment.

 

(b)
There are no outstanding extensions of any statute of limitations filed with any Governmental Authority responsible for
assessing or collecting Taxes in respect of any Tax Return of, or which includes, the Company or any of its Subsidiaries.

 

(c)
There is no audit, examination, action, suit, Proceeding, investigation, audit, claim or assessment pending or, to Shareholders’
Knowledge, proposed with respect to any Liability for Tax, or with respect to any Tax Return, of the Company or any of its Subsidiaries.
Neither the Company nor any Subsidiary was subject to an audit, examination, action, suit, Proceedings, investigation, claim or
assessment or similar proceeding by any Governmental Authority that concluded within the last year.

 

    35

     

    

 

(d)
There are no Liens (other than Permitted Liens) for Taxes upon the Company or any of its Subsidiaries or the assets of the
Company or any of its Subsidiaries.

 

(e)
There is no Tax deficiency outstanding, proposed or assessed in writing against the Company or any of its Subsidiaries,
nor has the Company or any of its Subsidiaries executed any waiver or comparable consent pursuant to federal, state, local, or
non-U.S. Tax Law extending the statute of limitations on or extending the period for the assessment or collection of any Tax and
no written request for such a waiver or extension is currently pending. No claim has been made in writing by a Governmental Authority
of a jurisdiction where the Company or any of its Subsidiaries has not filed Tax Returns or has not paid Taxes claiming that the
Company or any of its Subsidiaries is or may be subject to taxation by that jurisdiction.

 

(f)
All Taxes that the Company or any of its Subsidiaries is (or was) required by Law to withhold or collect in connection with
amounts paid or owing to any employee, independent contractor, creditor, stockholder, member, partner or other third party have
been duly withheld or collected, and have been paid over to the proper authorities to the extent due and payable (including sales
tax).

 

(g)
Neither the Company nor any of its Subsidiaries is or will liable for the Taxes of another Person (i) under Treasury Regulations
Section 1.1502-6 (or comparable provisions of state, local or non-U.S. Law) or (ii) as a transferee or successor or by Contract
(other than Contracts with vendors, landlords or other Persons, the principal purpose of which is not to address Tax matters).
The Company is not and has never been (or required to be) a member of any consolidated, combined or unitary group for federal,
state, local or non-U.S. Tax purposes.

 

(h)
Neither the Company nor any of its Subsidiaries is or will not a party to, or bound by, any written material Tax allocation,
indemnification or sharing agreement (other than in each case contracts with vendors, landlords and other Persons the principal
purpose of which is not to address Tax matters), including, for the avoidance of doubt, any agreement pursuant to which the Company
or any of its Subsidiaries has any obligation to make any payment to any other Person with respect to any Taxes imposed under Sections
409A or 4999 of the Code.

 

(i)
No written ruling from any Governmental Authority has been received or requested by or with respect to the Company or any
of its Subsidiaries.

 

(j)
The Company and each of its Subsidiaries have disclosed on its U.S. federal income Tax Returns all positions taken therein
that could give rise to a substantial understatement of federal income Tax within the meaning of Section 6662 of the Code. The
Company and each of its Subsidiaries has not entered into any transaction identified as a “reportable transaction”
for purposes of Treasury Regulations Section 1.6011-4(b).

 

(k)
Neither the Company nor any of its Subsidiaries is or will be required to include any item of income in, or exclude any
item of deduction from, taxable income for any Taxable Period (or portion thereof) ending after the Closing Date as a result of
any (i) change in method of accounting or use of an improper method of accounting for a Taxable Period ending on or prior to the
Closing Date or an adjustment under Section 481 of the Code (or any similar provision of state, local or non-U.S. Law), (ii) “closing
agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S.
income Tax law) executed on or prior to the Closing Date, (iii) intercompany transactions occurring at or prior to the Closing
or any excess loss account in existence at Closing described in Treasury Regulations under Section 1502 of the Code (or any corresponding
or similar provision of state, local or non-U.S. income Tax law), (iv) installment sale or open transaction disposition made on
or prior to the Closing Date, (v) prepaid amount received or deferred revenue accrued on or prior to the Closing Date, (vi) election
by the Company under Section 108(i) of the Code (or any similar provision of state, local or non-U.S. Law), or (vii) election by
the Company or an Affiliate under Section 965 of the Code.

 

    36

     

    

 

(l)
The federal income tax classification of the Company and each of its Subsidiaries is set forth on Schedule 7.12(l).

 

(m)
Neither the Company nor any of its Subsidiaries is or will either a “distributing corporation” or a “controlled
corporation” within the meaning of Section 355(a)(1)(A) of the Code within the prior two year period, or in a distribution
which would otherwise constitute part of a “plan” or “series of transactions” (within the meaning of Section
355(e) of the Code) in conjunction with transactions contemplated by this Agreement.

 

(n)
No item will be required to be included in the gross income of the Company or any Subsidiary thereof pursuant to Section
451(b)(1)(A) of the Code earlier than the time such item would otherwise be required to be included for U.S. federal income tax
purposes in the absence of Section 451(b)(1)(A) of the Code.

 

(o)
Prior to the date hereof, the Company and each of its Subsidiaries has made available to Akerna complete and accurate copies
of all income Tax Returns filed by the it on or prior to the date hereof for all Tax Periods (or portions thereof) beginning on
or after January 1, 2014.

 

(p)
Neither the Company nor any of its Subsidiaries is or will has been a United States real property holding corporation within
the meaning of Section 897(c)(2) of the Code during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code.

 

(q)
Neither the Company nor any of its Subsidiaries is or will be a party to any agreement, Contract, arrangement or plan that
has resulted or could result, separately or in the aggregate, in the payment of any “excess parachute payment” within
the meaning of Section 280G of the Code (or any similar provision of state, local, or non-U.S. Tax law).

 

(r)
Neither the Company nor any of its Subsidiaries is or will be a party to any joint venture, partnership, or other arrangement
or Contract which could be treated as a partnership for U.S. federal income tax purposes.

 

(s)
None of the intangible assets of the Company or any of its Subsidiaries within the meaning of Section 197 of the Code (including
any goodwill and going concern value) was held by any member of the Company or any related person (within the meaning of Section
197(f)(9)(C) of the Code) to any member of the Company on or before August 10, 1993 or could constitute anti-churning property
under Section 197(f)(9)(A) of the Code.

 

    37

     

    

 

(t)
All references to this Section 7.12 to the Company and its Subsidiaries shall be deemed to include any Person that
has converted, liquidated or merged into the Company or any of its Subsidiaries, as applicable.

 

7.13
Intellectual Property.

 

(a)
Schedule 7.13(a) identifies:

 

(i)
a complete and accurate list of all Intellectual Property owned by the Company and its Subsidiaries, including (A) registered
patents, pending patent applications, patent application being prepared, and invention disclosures (B) registered trademarks and
service marks and pending applications for trademarks and service marks, (C) unregistered trademarks, service marks, and trade
dress (D) copyright registrations and applications therefore, (E) unregistered copyrightable works which are material for the Business,
(F) registered trade names and assumed names, and (G) internet domain name registrations;

 

(ii)
a complete and accurate list of all Intellectual Property licenses, including each license, agreement or other permission
which any of the Company or any of its Subsidiaries has granted to any third party with respect to any Intellectual Property; and

 

(iii)
a complete and accurate list of each item of Intellectual Property that any third party owns and that the Company or any
of its Subsidiaries uses in connection with the Business pursuant to license, sublicense, agreement or permission excluding software
licenses for off-the-shelf software (clauses (ii) and (iii) are collectively referred to as “Licensed Intellectual
Property”).

 

(b)
Except as set forth on Schedule 7.13(b):

 

(i)
To the Knowledge of the Company and its Subsidiaries, (a) none of the Company, its Subsidiaries and/or the Business have
interfered with, infringed upon, misappropriated or otherwise come into conflict with any Intellectual Property right of any third
party or committed any acts of unfair competition, (b) none of the Company or any of its Subsidiaries has received any written
or other overt charge, complaint, claim, demand or notice alleging any such interference, infringement, misappropriation, conflict
or act of unfair competition with respect to the Business, and (c) no third party is challenging the ownership, use, validity or
enforceability of any Intellectual Property owned or used by the Company or any of its Subsidiaries; and

 

(ii)
The Company and its Subsidiaries owns all right and title to, free and clear of any lien, or has licenses to all Intellectual
Property necessary for the conduct of its business; and

 

(iii)
Each item of Owned Intellectual Property is valid and subsisting. All necessary registration, maintenance and renewal fees
currently due in connection with said Owned Intellectual Property have been paid and all necessary documents, recordations and
certifications in connection with such Owned Intellectual Property have been filed with the relevant patent, copyright, trademark
or other authorities in the United States or foreign jurisdictions, as the case may be, for the purpose of maintaining and registering
such Owned Intellectual Property; and

 

    38

     

    

 

(iv)
The Company or one of its Subsidiaries, owns, has the right to use, sell, offer to sell, license and dispose of, and has
the right to bring actions for the infringement of (including the right to recover damages for past, present, and future infringement),
and, where necessary, has made timely and proper application for, all of its Owned Intellectual Property (other than the Licensed
Intellectual Property) and has the right to use all such Owned Intellectual Property and Licensed Intellectual Property necessary
or required for the conduct of the Business as currently conducted and such rights to use, sell, offer for sale, license, dispose
of and bring actions with respect to such Intellectual Property do not require any payment of royalty fees or revenue sharing,
other than fees and payments with respect to Licensed Intellectual Property identified on Schedule 7.13(a). All application
renewal costs, fees and charges relating to the registration and maintenance of Owned Intellectual Property relating to the period
prior to the Closing Date have been paid in full; and

 

(v)
No Governmental Authority has any interest or right in any of the Intellectual Property owned by the Company or its Subsidiaries.

 

(c) The Company and
each of its Subsidiaries owns and has taken commercially reasonable measures to maintain and protect the confidentiality of the
trade secrets and Confidential Information of the Company and each of its Subsidiaries. The Company and each of its Subsidiaries
have taken commercially reasonable measures to maintain the source code for the Company Proprietary Software in confidence and
no unauthorized disclosure of such source code has occurred. Immediately after the Closing, the Company and each of its Subsidiaries
shall retain all of their respective trade secrets and Confidential Information. The Company and each of its Subsidiaries owns,
by operation of Law or by contractual assignment, all Intellectual Property created by its employees in the scope of their employment
or created by any contractor on behalf of the Company or any such Subsidiary in the scope of such contractor’s engagement.
Each Person to which the Company or any of its Subsidiaries has disclosed any Confidential Information of the Company or its Subsidiaries
is bound by a contractual obligation or legal duty to maintain such Confidential Information in confidence. All employees working
for the Company as of the date of this Agreement, or employees who have previously worked for the Company, are or were under an
obligation, pursuant to a valid executed employment agreement, to assign all rights and interest in any Intellectual Property,
developed by said employee while working within the scope of his or her employment at the time of such development, to the Company.

 

(d)
Neither the Company nor any of its Subsidiaries uses open source software, freeware, GNU or Linux
systems, or any modification thereof that has resulted in any (i) restriction on the use, licensing or disclosure of any Software,
or that would restrict or prevent the operation of the Business; or (ii) requirement that the Company or any of its Subsidiaries
deliver or otherwise disclose to any third party any source code for any Company Proprietary Software or
permit any licensee to modify any such source code.

 

7.14
Contracts and Commitments. (a)  Schedule 7.14 lists all of the following Contracts to which the Company
or any of its Subsidiaries is a party or by which the Company, any of its Subsidiaries or any of their respective assets are bound
(collectively, the “Material Contracts”):

 

(i)
(A) Any Contract pursuant to which payments in excess of $25,000 (1) were made by the Company or any of its Subsidiaries
to any Person during the one (1) year period ended on the Latest Balance Sheet Date, or (2) are reasonably anticipated by the Company
or any of its Subsidiaries, as of the date hereof, to be made to any Person during the one (1) year period ending on the first
anniversary of the Latest Balance Sheet Date, and (B) any Contract pursuant to which payments in excess of $25,000 (A) were received
by the Company or any of its Subsidiaries during the one (1) year period ended on the Latest Balance Sheet Date or (B) are reasonably
anticipated by the Company or any of its Subsidiaries to be received during the one (1) year period ending on the first anniversary
of the Latest Balance Sheet Date by or to the Company or any of its Subsidiaries;

 

    39

     

    

 

(ii)
any Contract relating to the hosting of any web site operated by the Company or any of its Subsidiaries in connection with
the Business;

 

(iii)
any Contract with any third party containing any covenant that restricts the ability of the Company or any of its Subsidiaries
to compete or conduct any business in any geographic area or market;

 

(iv)
any Contract which contains a “most favored customer” or similar provision;

 

(v)
any Contract under which the Company or any of its Subsidiaries has created, incurred, assumed, guaranteed or secured Indebtedness
currently outstanding or otherwise create or relate to any Lien on any of the Assets;

 

(vi)
any Contract relating to outstanding letters of credit or performance bonds or creating any Liability as guarantor, surety,
co-signer, endorser, co- maker or indemnitor, in each case in respect of the obligation of any third party to make payments or
perform services;

 

(vii)
any Contract relating to the acquisition or disposition of any material business, operations or division (whether by merger,
sale of stock, sale of assets or otherwise);

 

(viii)
any collective bargaining agreement;

 

(ix)
any Contract relating to the acquisition, transfer, development, sharing or license of any Intellectual Property that is
material to the Business and other than non-exclusive licenses to use the Owned Intellectual Property contained in the Business’
standard customer contracts entered into in the Ordinary Course of Business, including any Contract relating to the ownership,
marketing or sale of any products, except for (A) licenses implied by the sale of goods and (B) shrink-wrap and click-wrap software
licenses, end-user licenses and licenses to software generally commercially available, in each case with a replacement cost of
less than $15,000;

 

(x)
any Contract concerning the establishment, control, maintenance or operation of a partnership, joint venture or limited
liability company or other similar agreement or arrangement;

 

    40

     

    

 

(xi)
any Contract for capital expenditures or the acquisition or construction of fixed assets which require aggregate future
payments in excess of $25,000 over the remaining life of such agreement;

 

(xii)
any Contract relating to the settlement of any material Proceeding or the waiver or release of any material rights or material
claims in respect of any Proceeding;

 

(xiii)
any Contract requiring the Company or any of its Subsidiaries to indemnify any person, except for standard indemnification
provisions in Contracts entered into by the Company in the Ordinary Course of Business;

 

(xiv)
any Contract granting any exclusive rights to any party;

 

(xv)
any Contract with any Governmental Authority which is material to the Business;

 

(xvi)
any Contract with any director, officer or Affiliate of any Shareholder Party;

 

(xvii)
any Contract relating to the employment of, or the performance of services by, a Company Employee or consultant (excluding
any offer letters relating to at-will employment), or pursuant to which the Company or any of its Subsidiaries is or may become
obligated to make any severance, termination or similar payment or provide post-employment benefits to any current or former employee
or director; or pursuant to which the Company or any of its Subsidiaries is or may become obligated to make any bonus or similar
payment (other than payments constituting base salary) to any current or former employee or director;

 

(xviii)
any Contract (A) relating to the acquisition, issuance, voting, registration, sale or transfer of any securities, (B) providing
any person or entity with any preemptive right, right of participation, right of maintenance or any similar right with respect
to any securities or assets, or (C) providing the Company or any of its Subsidiaries with any right of first refusal with respect
to, or right to repurchase or redeem, any securities;

 

(xix)
any Contract granting powers of attorney or similar authorizations by the Company or any of its Subsidiaries to third parties;

 

(xx)
any Contract under which the amount payable by or to the Company or any Subsidiaries is dependent on the revenues, income
or similar measure of the Business, or in which the Company or any of its Subsidiaries is obligated to pay royalties, commissions
or similar payments to any Person based on the Business;

 

(xxi)
any Contract with any Customer or Key Supplier; and

 

(xxii)
any Contract not otherwise described in Schedule 7.14 entered into outside the Ordinary Course of Business that is
otherwise material to the Company, any of its Subsidiaries or the Business.

 

    41

     

    

 

(b)
Each Material Contract was entered into at arms’ length and in the ordinary course, is in full force and effect and,
is valid and binding upon the Company or its Subsidiary, as applicable, and to Shareholders’ Knowledge, enforceable against
each of the other parties thereto (subject to the General Enforceability Exceptions). True, correct and complete copies of all
Material Contracts (including all, schedules, exhibits, amendments, supplements, renewals, extensions and guarantees thereto) have
previously been made available to Akerna.

 

(c)
None of the Company or any of its Subsidiaries is in default under or in material breach of nor in receipt of any claim
of default or material breach under any Material Contract; and no event has occurred which with the passage of time or the giving
of notice or both would result in a default or material breach by the Company or any of its Subsidiaries under any such Material
Contract. To Shareholders’ Knowledge, no other party to any Material Contract is in default under or in breach of such Material
Contract and no event has occurred which with the passage of time or giving of notice or both would result in a material default
or breach by any such party under any such Material Contract.

 

7.15
Litigation. No Proceeding is pending or, to Shareholders’ Knowledge, threatened, by or against the Company,
any of its Subsidiaries or any of their respective rights, properties, assets, directors, officers or employees or agents (in their
capacity as such). Neither the Company, any of its Subsidiaries nor any assets any of them owns or uses is subject to or in default
under any Order and there is no Order that in any manner seeks to prevent, enjoin, alter or delay the consummation of the transactions
contemplated by this Agreement. Schedule 7.15 sets forth all Proceedings instituted by or against the Company, any of its
Subsidiaries or their respective properties or assets.

 

7.16
Employee and Consultant Benefits.

 

(a) Schedule
7.16(a) contains a true and complete list of each Employee Benefit Plan and each Consultant Benefit Plan (i) which is now,
or within the one (1) year period ending on the Closing Date was, sponsored, maintained, contributed to, or required to be contributed
to, by the Company or any of its Subsidiaries, (ii) that is provided for the benefit of any Company Employee or any Company Consultant,
or (iii) under or with respect to which the Company or any of its Subsidiaries has any current or contingent Liability or obligation
(each, a “Company Plan”), and separately identifies each such Company Plan that is a (x) retention agreement
and change of control agreement between the Company or a Subsidiary and any Company Employee or Company Consultant and (y) management,
employment, severance, or consulting agreement or Contract between the Company or any Subsidiary and any Company Employee or Company
Consultant that is not terminable at will or which provides for post-employment payments from the Company or any Subsidiary other
than in respect of accrued compensation and benefits (the agreements described in clause (x) and (y) each, a “Material
Employee Agreement”). The Company has made available to Akerna true and complete copies of the following, if applicable,
relating to each Company Plan and Material Employee Agreement: (1) the documents embodying each Material Employee Agreement and
each Company Plan, including all amendments thereto, and any trust or other funding arrangement under any Material Employee Agreement
or Company Plan; (2) the three most recent annual reports (Form 5500 Series with applicable schedules and audit reports); (3) the
most recent summary plan description (and all summaries of material modification thereto); and (4) the most recent favorable determination
letter or opinion letter from the Internal Revenue Service (the “IRS”).

 

    42

     

    

 

(b) Each
Company Plan that is intended to be qualified under Section 401(a) of the Code is so qualified, has a received a current favorable
determination letter or opinion letter from the IRS, and nothing has occurred or is expected to occur that would adversely affect
the qualified status of any Company Plan that is intended to be qualified under the Code or any related trust.

 

(c) The
Company and its Subsidiaries have performed all obligations required to be performed under the terms of each Company Plan and Material
Employee Agreement and the applicable Laws, and the Company and its Subsidiaries have complied and are in compliance with the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, Section 4980B of the Code and any regulations promulgated thereunder and
Part 6 of Subtitle B of Title I of ERISA or any comparable state law (collectively, “COBRA”), as well as the
Patient Protection and Affordable Care Act, including the Health Care and Education Reconciliation Act of 2010, as amended and
including any guidance issued thereunder (“PPACA”). The Company and its Subsidiaries have no material Liability
with respect to any “group health plan” within the meaning of Section 4980B(g)(2) of the Code maintained by any ERISA
Affiliate. The Company and its Subsidiaries have not incurred, nor is it reasonably expected to incur or to be subject to, any
Tax, penalty or other Liability that may be imposed under PPACA. Each Company Plan and Material Employee Agreement has been established,
funded and administered at all times in accordance with its terms and in compliance with all applicable Laws, including but not
limited to ERISA, PPACA and the Code.

 

(d) Except
as set forth on Schedule 7.16(d), neither the Company, nor any of its ERISA Affiliates has during the preceding six (6)
years sponsored, maintained, contributed to or has had any obligation to contribute to any Employee Benefit Plan or has any Liability
or obligation (including any contingent Liability or obligation) to any Employee Benefit Plan that is or was at any time (i) a
defined benefit plan within the meaning of Section 3(35) of ERISA, or which is or was subject to Section 302 or Title IV of ERISA
or Section 412 or 430 of the Code, or (ii) a Multiemployer Plan. With respect to any Multiemployer Plan listed on Schedule 7.16(d),
all required contributions to such Plan by the Company or any ERISA Affiliate have been made in a timely manner and neither the
Company nor any ERISA Affiliate has engaged in any transaction which could give rise to liability under Section 4069 or Section
4212(c) of ERISA. Neither the Company nor any ERISA Affiliate has incurred any withdrawal liability (including any contingent or
secondary withdrawal liability) to any Multiemployer Plan, and no event has occurred, and there exists no conditions or set of
circumstances, which presents a material risk of the occurrence of any withdrawal from or the partition, termination, reorganization
or insolvency of any Multiemployer Plan which could reasonably result in any liability to the Company or its ERISA Affiliates.
None of the Company nor any ERISA Affiliate has incurred any unsatisfied liability under Title IV of ERISA. The transaction contemplated
in this Agreement does not constitute a partial or complete withdrawal within the meaning of ERISA Sections 4201, 4203 or 4205.

 

    43

     

    

 

(e) There
are no investigations, claims, suits, or Proceedings pending or, to Shareholders’ Knowledge, threatened (other than routine
claims for benefits) with respect to any Company Plan or the assets of any such Company Plan or related to any Material Employee
Agreement, and there are no facts that would reasonably be expected to give rise to any material Liability in the event of any
such investigation, claim, suit or Proceeding. All premiums, contributions, distributions and reimbursements required by any Company
Plan or applicable Law for which the Company or any of its Subsidiaries is responsible have been timely made thereunder. No “prohibited
transaction” within the meaning of Section 4975 of the Code or Section 406 of ERISA has occurred with respect to any Company
Plan that is not exempted pursuant to statutory or administrative prohibited transaction exemption; and there has been no breach
of fiduciary duty (as determined under ERISA) with respect to any Company Plan; and no action has occurred nor has there been a
failure to act with respect to any Company Plan that could subject the Company, Akerna or any of their respective Affiliates or
any such Company Plan to any material Tax, penalty or other Liability, for breach of fiduciary duty or otherwise, under ERISA or
any other applicable Law, whether by way of indemnity or otherwise. With respect to each Company Plan, no event has occurred that
has subjected or could subject the Company or any of its Subsidiaries to any material excise Taxes or penalties under the Code
or ERISA, including but not limited to Code Sections 4971, 4980B, 4980D, or 4980H.

 

(f) None
of the Company or any of its Subsidiaries maintains or contributes to any Company Plan or Material Employee Agreement which provides,
or has any Liability or obligation to provide, post-retirement or post-termination welfare benefits (e.g. life insurance, medical
or other welfare benefits (other than severance and accrued vacation and holiday pay)) to any Company Employee upon his retirement
or termination of employment or any other Person, except as may be required by COBRA (for which the covered Person pays the full
cost of coverage).

 

(g) Each
Contract, arrangement or plan, including any Material Employee Agreement or Company Plan, to which the Company or any of its Subsidiaries
is, or has been, a party that is or was a “nonqualified deferred compensation plan” (as defined in Section 409A of
the Code) is in documentary and operational compliance with Section 409A of the Code and the applicable treasury guidance issued
thereunder. No acts or omissions have occurred which may give rise to any taxes under Code Section 409A for which any participant
in any Material Employee Agreement, Company Plan or other Contract arrangement or plan that is a nonqualified deferred compensation
plan (within the meaning of Section 409A) may be liable.

 

(h) The
execution of this Agreement and the consummation of the transactions contemplated hereby, will not constitute an event under any
Company Plan or Material Employee Agreement that will result in any payment, upon a change in control or otherwise, whether of
severance, accrued vacation, or other benefit or compensation, acceleration, vesting, distribution, increase in benefits or compensation
or the obligation to fund benefits with respect to any Company Employee or any other Person.

 

(i) The
Company and its Subsidiaries have not made any commitment or promise (whether or not written), to establish any new Plan, to materially
modify (other than by way of termination) any Company Plan or to enter into any new Plan; nor has any intention or commitment to
do any of the foregoing been communicated. There is no provision in any Company Plan, and there has been no act or omission by
Company or its Subsidiaries, that could impair the ability of such entities (or any successor thereto) to unilaterally amend or
terminate any Company Plan.

 

    44

     

    

 

7.17
No Employees.

 

(a)
The Company and its Subsidiaries do not have, and have not at any time had, any employees, whether on a full-time, part-time
or other basis, nor have any of them ever employed any individuals on any basis. The Company and its Subsidiaries have no obligation
to pay any wages, salaries, benefits, severance pay, severance benefits or any other payments or benefits, including any change
in control, retention, termination arrangements, whether written or oral upon a change of control or any other similar event.

 

(b)
All individuals providing services to the Company and its Subsidiaries are correctly classified as independent contractors
and the Company and its Subsidiaries have no liability in respect of the misclassification of the employment status of any independent
contractors.

 

7.18
Customers and Suppliers. Schedule 7.18 sets forth a list of the top twenty (20) customers (the “Customers”)
of the Business determined by sales (i) for the fiscal year ended December 31, 2018 and
(ii) the ten (10) month period ending on October 31, 2019. No such Customer has, since January 1, 2019, cancelled or terminated
or modified adversely to the Company or any of its Subsidiaries, or notified the Company or any of its Subsidiaries in writing
of an intent to cancel or otherwise terminate or modify adversely to the Company or any of its Subsidiaries, any of its Contracts,
volume of business or other material aspect of its business relationship with the Company or any of its Subsidiaries. Since January
1, 2019, no such Customer has requested in writing any material change in pricing or modification to, or waiver of, any other
material term or provision in any Material Contract governing the relationship with such Customer. There has not occurred any
event, happening, or fact which would lead the Company to reasonably believe that any of the Customers will not continue to require
substantially the same level of service and/or product purchases from the Company or its applicable Subsidiary after the Closing
on comparable terms and conditions. Schedule 7.18 sets forth a list of the top twenty (20) suppliers and vendors (the “Key
Suppliers”) of the Business determined by dollars paid (x) for the fiscal year ended December 31, 2017, (y) for the
fiscal year ended December 31, 2018 and (z) the ten (10) month period ending on October 31, 2019. There are no limited source
suppliers or vendors of significant services or materials to the Company or any of its Subsidiaries to which there are no or few
practical alternatives available on comparable terms and conditions (“Limited Source Supplier”). There has
not occurred any event, happening, or fact which would lead the Company to reasonably believe that any Key Supplier or Limited
Source Supplier will not continue to supply substantially the same level and type of products or services purchased by the Company
and its Subsidiaries under similar terms and conditions. Since January 1, 2019, no Key Supplier has requested in writing any material
change in pricing or modification to, or waiver of, any other material term or provision in any Material Contract governing the
relationship with such Key Supplier. The Company and its Subsidiaries are not, and for the past three years have not been, involved
in any material dispute or Proceeding with any Customer or Key Supplier.

 

7.19
Insurance.

 

(a)
Schedule 7.19 sets forth, as of the date hereof, an accurate and complete list of the policies of insurance currently
maintained by or for the benefit of the Company or any of its Subsidiaries (including, without limitation, the name of the carrier
and the coverage limits) (collectively, the “Policies” and, individually, a “Policy”). All
such Policies are in full force and effect. The Company has provided to Akerna a true, correct and complete copy of each such Policy.
The Company, its Subsidiaries and, to Shareholders’ Knowledge, its counterparties are not in material default under the Policies,
and no event has occurred that, with the lapse of time or the giving of notice or both, would constitute a material default under
any Policy by the Company, its Subsidiaries or, to Shareholders’ Knowledge, any other Person. No notice of cancellation or
termination has been received with respect to any such Policy (except Policies replaced in the ordinary course). Neither Shareholder,
the Company nor any of its Subsidiaries has received written notice that any of such Policies will not be renewed (upon the same
terms and conditions as are currently in effect) upon the expiration thereof.

 

    45

     

    

 

(b)
None of the Company or any of its Subsidiaries has been refused any insurance coverage with respect to any material aspect
of its operations by any insurance carrier with which it has carried insurance since January 1, 2016 nor, since January 1, 2016,
has any insurance policy been cancelled with respect to the Company, its Subsidiaries or the Business.

 

(c)
As of the date hereof, there is no claim by Shareholder, the Company or any of its Subsidiaries pending under any such Policies.
All premiums due and payable under all such Policies have been paid, and Company and its Subsidiaries are otherwise in compliance
in all material respects with the terms of such policies. Since January 1, 2016, there have been no historical gaps in the insurance
policies of the Company or any of its Subsidiaries. To Shareholders’ Knowledge, none of the current insurers of the Company
or any of its Subsidiaries has filed for protection under any applicable bankruptcy laws or is otherwise in the process of liquidating.

 

7.20
Loans. Except as set forth in Schedule 7.20, no Company Employee, Shareholder Party or any of their respective Affiliates,
is indebted to the Company or any of its Subsidiaries nor is the Company or any of its Subsidiaries indebted to any such Persons
other than (a) for payment of salary for services rendered, (b) reimbursement for reasonable expenses incurred on behalf of the
Company or its Subsidiaries, and (c) for other employee benefits made generally available to all Company Employees.

 

7.21
Improper Payments. 

 

(a) Neither
the Shareholder Parties, nor, to Shareholders’ Knowledge, any of their officers, directors, agents, Representatives or employees
acting on behalf of any of the Shareholder Parties or their Affiliates has, to obtain or retain business, directly or indirectly
offered, paid or promised to pay, or authorized the payment of, any money or other thing of value (including any fee, gift, sample,
travel expense or entertainment) or any commission payment in excess of normal, reasonable and proper amounts payable, to:

 

(i)
Any person who is an official, officer, agent, employee or Representative of any Governmental Authority or of any existing
or prospective customer of the Company or any of its Subsidiaries (whether or not government-owned);

 

(ii)
any political party or official thereof;

 

(iii)
any candidate for political office or political party office; or

 

(iv)
any other individual or entity, while knowing or having reason to believe that all or any portion of such money or thing
of value would be offered, given or promised, directly or indirectly, to any such official, officer, agent, employee Representative,
political party, political party official or candidate, or any entity affiliated with such customer, political party official or
political office. Each of the Company and its Subsidiaries has at all times been in compliance with all Laws relating to export
control and trade embargoes, including all anti-boycott prohibitions contained in 50 U.S.C. ⸹ 2401, et. seq.

 

    46

     

    

 

(b)
No operations of the Company or any of its Subsidiaries are in default or violation of applicable anti-money laundering
statutes of jurisdictions where the Company or any of its Subsidiaries conducts Business, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority.

 

7.22
Affiliate Transactions; Affiliate Liability. Except for (a) employment relationships and compensation, benefits and travel
advances in connection therewith or (b) as disclosed on Schedule 7.22, no present equityholder, officer, member, partner
or director of the Company or any of its Subsidiaries, nor any Affiliate of any such Person, is currently a party to any Contract
with or binding upon the Company, any of its Subsidiaries or any of their respective properties or assets or has any interest
in any property or assets owned by or used in the business of the Company or any of its Subsidiaries or has engaged in any transaction
with the Company or any of its Subsidiaries within the twelve (12) months preceding the date hereof. None of the Company or any
of its Subsidiaries is directly or indirectly obligated for any Liability (including contingent Liabilities) of any of their respective
Affiliates (other than the Company and its Subsidiaries). None of the Company or any of its Subsidiaries will, after the Closing,
be directly or indirectly obligated for any Liability (including contingent Liabilities) of, or to, any of their current respective
Affiliates (other than the Company and its Subsidiaries).

 

7.23
Personal Property Leases. Set forth on Schedule 7.23 is a true, accurate and complete list of all Assets leased
or subleased by the Company or any of its Subsidiaries (the “Leased Personal Property”), including identification
of the lease or sublease, address of the lessor or sublessor, term and payment, having a value or maximum aggregate amount payable
by the Company or its Subsidiaries in excess of $15,000 and to which the Company or any of its Subsidiaries is a party or by which
any of its interests in the Leased Personal Property is bound. Except for the items set forth on Schedule 7.23, none of
the Company or its Subsidiaries has entered into any Personal Property Leases having a value or maximum aggregate amount payable
by the Company or any of its Subsidiaries in excess of $15,000, nor made any commitment to lease equipment or other personal property.
None of the Company or its Subsidiaries is in default with respect to any Personal Property Lease,
and no event has occurred which constitutes, or with due notice or lapse of time or both may constitute, a default by the Company
or any of its Subsidiaries under any such Personal Property Lease. To the Shareholders’ Knowledge, there exists no default
by any lessor or other Person under any such Personal Property Lease. None of the Company or its Subsidiaries has any obligation
or other liability with respect to any of such Personal Property Leases involving more than $15,000 except as expressly set forth
therein. Each of the Company or its applicable Subsidiary is in peaceable possession of the Leased Personal Property. None of
such Leased Personal Property is subject to any Licenses, use restrictions, exceptions, reservations, limitations or other impediments
which materially adversely affect the value to the Company or its Subsidiaries of the leasehold interest therein or which materially
interfere with or impair the present and continued use thereof in the usual and normal conduct of the Business as presently conducted
or contemplated other than Personal Property Leases in respect thereof. None of such Leased Personal Property is subject to any
Lien which is (or after the giving of passage of time or both) will be subject to a right of foreclosure or enforcement, termination
or otherwise materially adversely affect any Personal Property Lease to which the property is subject. The Leased Personal Property
is subject to no leases or tenancies except the Personal Property Leases pursuant to which the Company or any of its Subsidiaries
is lessee and has exclusive use of the property. There are no material physical defects or deficiencies in the condition of any
property.

 

    47

     

    

 

7.24
Licenses. Set forth on Schedule 7.24 is a true, accurate and complete list of all Licenses used or held for use
in connection with the operation of the Business (the “Material Licenses”). No Material License is held or
owned by any Affiliate of any Shareholder Party other than the Company or one of its Subsidiaries. Each Material License has been
duly obtained, is valid and in full force and effect, and is not subject to any Liens or any pending or, to the Knowledge of the
Shareholders, threatened administrative or judicial proceeding to revoke, cancel or declare such License invalid in any respect.
Each of the Material Licenses is sufficient in all material respects to permit the continued lawful conduct of the Business in
the manner now conducted by the Company or its Subsidiaries or proposed to be conducted in the future. None of the Company or
its Subsidiaries is in default or in violation with respect to any of the Material Licenses, and no event has occurred which constitutes,
or with due notice or lapse of time or both may constitute, a default by the Company or any of its Subsidiaries under, or violation
of, any such Material License.

 

7.25
Bank Accounts. Schedule 7.25 sets forth a true, correct and complete list of the bank accounts, lock box accounts
and other accounts maintained by or for the benefit of the Company and each of its Subsidiaries, setting forth, in each case,
the bank name, account number, account type and the names of the Persons having access to the account.

 

7.26
Brokers; Company Transaction Expense; Indebtedness. Except as set forth on Schedule 7.26, no broker, investment
banker or finder is entitled to any fee or commission in connection with the transactions contemplated hereby based upon arrangements
made by or on behalf of the Company or any of its Subsidiaries. Other than the Company Transaction Expenses and Indebtedness that
are set forth on Schedule 7.26, none of the Company or any of its Subsidiaries currently has or, as of the Closing will
have, any Company Transaction Expenses or Indebtedness.

 

7.27
Government Contracts. No Contract or other aspect of the Business of the Company or its Subsidiaries is subject to
the Federal Acquisition Regulations or other regulations of any Governmental Authority. Neither the Company nor any of its Subsidiaries
has bid on or been awarded any “small business set aside contract”, any other “set aside contract” or other
order or contract requiring small business, minority ownership or other special status at any time during the last three (3) years.
None of the Company’s or its Subsidiaries’ expected sales or orders will be lost, and the Company’s and its Subsidiaries’
customer relations will not be damaged, as a result of the Company or its Subsidiaries continuing its operations as an entity that
does not qualify as a small business, minority owned business or business with other special status.

 

    48

     

    

 

Article
VIII.

REPRESENTATIONS
AND WARRANTIES OF AKERNA

 

As a material inducement
to each of the Shareholder Parties to enter into and perform its obligations under this Agreement, Akerna represents and warrants
to the Shareholder Parties as follows:

 

8.1
Organization. Akerna is a Delaware corporation duly formed, validly existing and in good standing (or the equivalent
thereof) under the laws of the jurisdiction in which it was formed and has all requisite corporate power and authority to own,
lease and operate its properties and to carry on its business as now being conducted. Akerna is duly qualified or licensed to do
business and is in good standing in each jurisdiction in which the character or location of the properties owned, leased or operated
by it or the nature of its business makes such qualification necessary, except where the failure to so qualify would not have a
Material Adverse Change on Akerna.

 

8.2
Authorization of Transaction. Akerna has the requisite corporate power and authority and has taken all corporate
or other action necessary to execute and deliver this Agreement and all other Documents to be delivered by Akerna as contemplated
hereby, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and
performance of by Akerna of this Agreement and all other Documents to be delivered by Akerna as contemplated hereby, the consummation
of the transactions contemplated hereby and the performance by it of its obligations hereunder have been duly authorized and approved
by the board of directors of Akerna. No other corporate action on the part of Akerna is necessary to authorize the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated hereby. This Agreement has been, and all
other Documents to be executed and delivered by Akerna as contemplated hereby will be, duly executed and delivered by Akerna. This
Agreement constitutes a valid and binding obligation of Akerna, enforceable against it in accordance with its terms, subject to
the General Enforceability Exceptions. All of the other Documents to be delivered by Akerna as contemplated hereby will constitute
valid and binding obligations of Akerna enforceable against Akerna in accordance with their terms, subject to the General Enforceability
Exceptions.

 

8.3
No Restrictions Against Purchase of Shares. Except as set forth on Schedule 8.3, neither the execution, delivery
and performance of the Documents nor the consummation of the transactions contemplated thereby, nor compliance by Akerna with any
of the provisions thereof, (a) violates, conflicts with, or results in a material breach of any provision of, or constitutes a
default (or an event which, with notice or lapse of time or both, would constitute a default) under any of the terms, conditions
or provisions of the Fundamental Documents of Akerna, or under any note, bond, mortgage, indenture, deed of trust, or other agreement
to which Akerna is bound, or by which Akerna or any its properties or assets may be bound or affected, (b) violates, conflicts
with, or results in a material breach of any material agreement, lease, instrument, mortgage, license or franchise to which Akerna
is a party or by which any of its properties is bound, or (c) violates any Law applicable to Akerna or any of its properties or
assets. Except as set forth on Schedule 8.3, no consent or approval by, notice to, or registration with, any Governmental
Authority is required on the part of Akerna in connection with the execution and delivery of this Agreement or the consummation
by Akerna of the transactions contemplated hereby.

 

    49

     

    

 

8.4
Brokers. No broker or investment banker acting on behalf of Akerna is or will be entitled
to any broker’s or finder’s fee or any other commission or similar fee directly or indirectly in connection with any
of the transactions contemplated hereby.

 

8.5
SEC Documents.

 

(a) Akerna has filed
all reports, schedules, forms, statements and other documents required to be filed by it with the SEC, pursuant to Sections 13(a),
14(a) and 15(d) of the Exchange Act (the “ SEC Reports ”).

 

(b) As of its respective
filing date, each SEC Report complied in all material respects with the requirements of the Exchange Act and the rules and regulations
of the SEC promulgated thereunder applicable to such SEC Report. Except to the extent that information contained in any SEC Report
has been revised or superseded by a later SEC Report, none of the SEC Reports contains any untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading. The consolidated financial statements of Akerna included in the
SEC Reports comply as to form in all material respects with applicable accounting requirements and the published rules and regulations
of the SEC with respect thereto, have been prepared in accordance with the GAAP (except, in the case of unaudited statements, as
permitted by the rules and regulations of the SEC) applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto) and fairly present in all material respects the consolidated financial position of Akerna and its
consolidated subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
shown (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

8.6
Listing and Maintenance Requirements. Akerna is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with the listing and maintenance requirements for continued listing of the Akerna Shares on
the trading market on which the Akerna Shares are currently listed or quoted. The issuance and transfer of the Shares under this
Agreement does not contravene the rules and regulations of the trading market on which the Akerna Shares are currently listed or
quoted, and no approval of the stockholders of Akerna is required for Akerna to issue and deliver to the Shareholders the Akerna
Shares contemplated by this Agreement.

 

Article
IX.

ADDITIONAL
AGREEMENTS

 

9.1
Commercially Reasonable Efforts; Third Party Consents.

 

(a)
Subject to the terms and conditions of this Agreement, each Party shall use commercially reasonable efforts to cause the
Closing to occur, including taking all commercially reasonable actions necessary to comply with all legal requirements that may
be imposed on it or any of its Affiliates with respect to the Closing. Each Party shall use commercially reasonable efforts to
obtain each Governmental Required Consent and each other consent of, and filing with, a Governmental Authority.

 

    50

     

    

 

(b)
Prior to Closing, and to the extent necessary, the Shareholders shall use commercially reasonable efforts to obtain all
those consents and waivers set forth on Schedules 4.2 and 4.5, and the costs of obtaining such consents, including
all fees, charges, costs and expenses levied by a counterparty in granting its consent, including assignment fees, shall either
be paid by the Shareholders or included as a Company Transaction Expense. Akerna shall use commercially reasonable efforts, but
without liability or expense, to provide cooperation and assistance in this regard including providing to any such third party
all necessary evidence (including financial information), as required by any such third party in order to secure the necessary
consents and waivers. 

 

9.2
Conduct of Business. During the period from the date hereof to the earlier of (i) Closing and (ii) the date that
this Agreement is terminated in accordance with Section 5.2, the Shareholders shall, and shall cause the Company and its
Subsidiaries to, conduct their operations according to their Ordinary Course of Business, and the Shareholders shall use and shall
cause the Company and its Subsidiaries to use commercially reasonable efforts, consistent with past practices, to preserve intact
their business organization, taken as a whole, to keep available the services of their current officers and employees and to preserve
the goodwill of and maintain satisfactory relationships with those Persons having business relationships with the Company and its
Subsidiaries. Without limiting the generality of the foregoing and except as otherwise expressly provided in this Agreement or
set forth in Schedule 9.2, during the period from the date hereof to the earlier of (i) Closing, and (ii) the date that
this Agreement is terminated pursuant to Section 5.2, without the prior written consent of Akerna, such consent not to be
unreasonably withheld or delayed, the Shareholders shall not, and the Shareholders shall cause the Company and its Subsidiaries
not to, do any of the following:

 

(a)
issue, sell, transfer, pledge, redeem or grant options or rights to purchase or sell, any securities of the Company or any
of its Subsidiaries or permit any reclassifications of any securities of the Company or any of its Subsidiaries;

 

(b)
amend or modify the Fundamental Documents of the Company or any of its Subsidiaries in any manner;

 

(c)
declare, pay or otherwise set aside for payment any cash or non-cash dividend or other cash or non-cash distribution with
respect to the Transferred Shares or other equity securities of the Company or any of its Subsidiaries;

 

(d)
merge or consolidate with, or acquire all or substantially all the assets of, or otherwise acquire, any business, business
organization or division thereof, or any other Person;

 

(e)
sell, lease, license, subject to any Lien (other than Permitted Liens) or otherwise dispose of any assets other than (i)
the sale of immaterial assets, (ii) the sale of inventory and damaged or obsolete or excess equipment or (iii) the settlement of
accounts receivable, in each case in the Ordinary Course of Business;

 

    51

     

    

 

(f)
(i) hire any Employee (other than non-executive Employees hired for replacement purposes), (ii) terminate the employment
of any officer or executive Employee of the Company or any of its Subsidiaries (other than for cause, following notice to Akerna),
(iii) enter into any new, or materially amend, terminate (other than for cause, following notice to Akerna with respect to any
officers or executive employee) or renew any existing employment, severance, consulting or salary continuation agreements with
or for the benefit of any Company Employee, other than offer letters relating to the at-will employment of new Company Employees
hired in accordance with clause (i) above, (iv) grant any increases in the compensation, perquisites or benefits or grant any new
compensation, perquisites or benefits (including, salary, incentive compensation or other compensation or benefits or grant any
new severance not in accordance with the Company’s policies set forth on Schedule 9.2 or required by written agreements
outstanding on the date hereof and provided to Akerna, to any Company Employees, except in connection with promotions, new hires
(hired in accordance with clause (i) above) or normal increases in base salary for non-executive employees, in each case in the
Ordinary Course of Business, and except for other amounts which are to be paid by or on behalf of Shareholder, (v) agree to grant
or grant any equity-related, cash-based, performance or similar awards or bonuses or any other awards; or (vi) grant or pay any
severance or termination pay or benefits to any Company Employee except for payments made pursuant to existing policy or written
agreements outstanding on the date hereof and provided to Akerna;

 

(g)
(i) adopt, amend or terminate any Company Plan or adopt or enter into any new Company Plan (or any compensatory or benefit
arrangement that would be an Employee Benefit Plan if in effect on the date hereof) or increase the benefits provided under any
Employee Benefit Plan, or promise or commit to undertake any of the foregoing in the future, (ii) enter into, amend or extend any
collective bargaining or other labor agreement, (iii) amend any restrictive covenants with Company Employees; (iv) loan any funds
or extend credit to Company Employees;

 

(h)
materially amend, enter into or terminate any Real Property Lease or any Personal Property Lease;

 

(i)
enter into any transaction with or for the benefit of any Shareholder Party or any of its Affiliates other than the transactions
contemplated by this Agreement, the other Documents and the transactions contemplated therein;

 

(j)
make, revoke or change any material Tax election, change any annual accounting period, adopt or change any accounting method,
policy or procedure, settle or compromise any Tax claim or assessment of Taxes or refund of Taxes, consent to any extension or
waiver of the statute of limitations period applicable to any Tax claim, and enter into any closing agreement with respect to Taxes,
all to the extent related to or that they would reasonably be expected to affect Taxes payable by the Company in respect of any
taxable period (or portion thereof) beginning after the Closing Date;

 

(k)
abandon, cancel, allow to lapse or transfer any Owned Intellectual Property, or license the Owned Intellectual Property
that is material to or used in the business to any third party other than in the Ordinary Course of Business;

 

(l)
make any loans, advances, guarantees or capital contributions to or investments in any Person, other than advances for routine
business expenses made in the Ordinary Course of Business, and, in any event, not in excess of $25,000 in the aggregate;

 

    52

     

    

 

(m)
create, incur or assume, any Indebtedness in excess of $25,000 in the aggregate;

 

(n)
make or authorize any payment of, or commitment for, capital expenditures in excess of $25,000 in respect of the twelve-month
period following the date hereof;

 

(o)
commence a Proceeding other than in such cases where a Shareholder Party in good faith determines that failure to commence
such Proceeding would result in the material impairment of a valuable aspect of the Business, provided that it consults with Akerna
prior to the commencement of such Proceeding or filing of any suit in connection therewith;

 

(p)
compromise or settle any Proceeding (A) resulting in an obligation of the Company or any of its Subsidiaries to pay more
than $25,000 in respect of such compromise or settlement or (B) resulting in the imposition of restrictions on the business or
operations of the Company or any of its Subsidiaries;

 

(q)
(A) enter into any Contract that would be deemed to be a Material Contract or (B) materially amend, terminate, or waive
any material right or remedy under, any Material Contract;

 

(r)
except as permitted under clause (n) above, acquire assets or make a material investment in (whether through the
acquisition of stock, assets or otherwise) any other Person, except for acquisitions of assets, inventory, equipment and software
(other than renewals or replacements thereof) (i) in the Ordinary Course of Business or (ii) in an amount not to exceed $25,000
in the aggregate;

 

(s)
revalue any assets of the Company or any of its Subsidiaries, including without limitation writing off a material amount
of notes or accounts receivable other than in the Ordinary Course of Business or pursuant to existing contractual obligations,
or in any case as required by GAAP;

 

(t)
extend the period for payment of the account payables of the Company or any of its Subsidiaries or accelerate the payment
of the account receivables of the Company or any of its Subsidiaries;

 

(u)
materially reduce the amount of any insurance coverage provided by the Policies;

 

(v)
make any change in accounting practices or policies, including with respect to revenue recognition of deferred income, except
as required by applicable Law or GAAP;

 

(w)
fail to pay the debts and material Taxes of Company or any of its Subsidiaries when due;

 

(x)
cause Company or any of its Subsidiaries to take any action which would willfully cause a breach of or inaccuracy in Article
VII;

 

(y)
enter into any Contracts or commitments with respect to the Real Property which will survive the Closing;

 

(z)
withdraw from, or fail to pay any contributions to, any Multiemployer Plan;

 

    53

     

    

 

(aa)
modify any collective bargaining agreement; or

 

(bb)
authorize, or commit or agree to take, any of the foregoing actions.

 

9.3
Tail Policy. At or prior to the Closing Date, the Company shall obtain a director’s
and officer’s liability tail insurance policy in an amount to be agreed by Akerna and the Shareholder Representatives, on
behalf of the Company and its Subsidiaries (the “Tail Policy”) (the cost of which shall be paid by the Shareholders),
which policy shall provide coverage for all officers and directors of the Company and its Subsidiaries at any time prior to the
Closing Date for a six-year term beginning on the Closing Date. To the extent not paid by the Shareholders, the premiums therefore
(the “Tail Costs”) shall be included in the Company Transaction Expenses.

 

9.4
Records; Post-Closing Access to Information; Confidentiality.

 

(a)
For a period of five (5) years after the Closing Date, Akerna shall preserve and retain, or cause the Company to preserve
and retain, all records (including any documents relating to any governmental or non-governmental actions, suits, proceedings or
investigations) relating to the conduct of the business and operations of the Company prior to the Closing Date. If at any time
after such five year period Akerna intends to dispose of any such records, Akerna may do so if such records are first offered to
the Shareholder Representatives in writing and the Shareholder Representatives do not accept such offer within thirty (30) days
of receipt of such offer. If the Shareholder Representatives accept such offer, the Shareholders shall pay all costs and expenses
associated with the delivery of such records to it.

 

(b)
From and after the Closing Date, Akerna shall, and shall cause the Company to, upon execution by any Shareholder of a confidentiality
agreement reasonably acceptable to Akerna, afford such Shareholder and its counsel, accountants and other authorized Representatives,
upon reasonable prior notice, reasonable access during normal business hours to the respective premises, properties, personnel,
books and records of the Company and/or the Business and any other assets or information that such Shareholder deems reasonably
necessary in connection with the preparation of any report or Tax Return required to be filed by such Shareholder under applicable
Law or any third-party claim which is the subject of any indemnification claim under Article X (but so as not to unduly
disrupt the normal course of operations of the Company or its Subsidiaries), including preparing or defending any Tax Return and
any interim or annual report or other accounting statements.

 

(c)
From and after the date hereof, the Shareholder Parties shall not and shall cause their respective Affiliates and their
respective officers, and directors not to, directly or indirectly, disclose, reveal, divulge or communicate to any Person other
than authorized officers, directors and employees of Akerna or use or otherwise exploit for their own benefit or for the benefit
of anyone other than Akerna, any Confidential Information (as defined below). The Shareholder Parties and their respective Affiliates
and their respective officers and directors shall not have any obligation to keep confidential any Confidential Information if
and to the extent disclosure thereof is specifically required by Law; provided, however, that in the event disclosure
is required by applicable Law, the Shareholder Parties shall, to the extent reasonably possible, provide Akerna with prompt notice
of such requirement prior to making any disclosure so that Akerna may seek an appropriate protective order. For purposes of this
Section 9.4(c), “Confidential Information” means any information with respect to the Business, including
methods of operation, customers, customer lists, products, prices, fees, costs, Intellectual Property, inventions, trade secrets,
know-how, marketing methods, plans, personnel, suppliers, competitors, markets or other specialized information or proprietary
matters. Confidential Information does not include, and there shall be no obligation hereunder with respect to, information that
(i) is generally available to the public on the date of this Agreement or (ii) becomes generally available to the public other
than as a result of a disclosure not otherwise permissible thereunder. The covenants and undertakings contained in this Section
9.4(c) relate to matters which are of a special, unique and extraordinary character and a violation of this Section 9.4(c)
will cause irreparable injury to Akerna, the amount of which will be impossible to estimate or determine and which cannot be adequately
compensated.

 

    54

     

    

 

9.5
Tax Matters.

 

(a)
Tax Indemnity. The Shareholder Parties agree, on a joint and several basis, to indemnify, defend and hold Akerna
and its Affiliates (including, following the Closing, the Company and its Subsidiaries) and their respective stockholders, directors,
members, managers, officers, employees agents, successors and assigns, harmless from and against: (i) all Taxes imposed on, asserted
against or attributable to the properties, income or operations of Shareholder and the Company or any of its Subsidiaries or any
Taxes for which Shareholder and the Company or any of its Subsidiaries is otherwise liable, for all Pre-Closing Tax Periods (in
the case of a Straddle Period, determined based on principles set forth in Section 9.5(c)); (ii) any liability for Taxes
as a result of a contractual obligation to indemnify any Person; (iii) Taxes of any Person imposed on the Shareholders or the Company
or any of its Subsidiaries as a transferee or successor where the relationship giving rise to the liability on the part of the
Shareholders or the Company or any of its Subsidiaries existed or arose on or prior to the Closing Date, or by Contract (other
than any Contract entered into in the ordinary course of business and the primary subject matter of which is not Taxes) entered
into on or prior to the Closing Date; (iv) any Taxes of any other Person for which any Shareholder or the Company or any of its
Subsidiaries (or any Subsidiary or predecessor of any such entities) is liable as a result of having been a member of an affiliated,
consolidated, combined or unitary group on or prior to the Closing Date, including pursuant to Treasury Regulations Section 1.1502-6
or the analogous provisions of any state, local or non-U.S. Law; (v) Transfer Taxes for which the Shareholders are responsible
pursuant to Section 9.5; and (vi) any and all Losses incurred, suffered or sustained by or sought to be imposed upon, Akerna
and its Affiliates (including the Company and each of its Subsidiaries) arising out of, or resulting from any breach of or inaccuracy
in any representation or warranty (without giving effect to any “material”, “materially”, “materiality”,
“material adverse effect”, “material adverse change” or similar qualifiers contained in any of the representations
and warranties) made as of the date hereof or as of the Closing Date by the Company in Section 7.12; and (viii) any and
all Losses incurred, suffered or sustained by or sought to be imposed upon, Akerna and its Affiliates (including the Company and
each of its Subsidiaries) arising out of, or resulting from any non-fulfillment or breach of any covenant, agreement or undertaking
with respect to Taxes made by or to be performed by Shareholder, the Company or any of its Subsidiaries, including pursuant to
Section 9.6 and this Section 9.5, except to the extent such amounts mentioned herein under this Section 9.5(a)
were included as a Current Liability in Closing Net Working Capital.

 

    55

     

    

 

(b)
Tax Returns.

 

(i)
The Shareholder Representatives shall prepare or cause to be prepared at their sole cost and expense and with reasonable
assistance from the Company and Akerna all required Tax Returns for the Company and each of its Subsidiaries for Tax Periods that
end on or before the Closing Date whether such Tax Returns are filed on, before or after the Closing Date (collectively the “Company
Tax Returns”); provided, however, that for each such Company Tax Return, the Shareholder Representatives
shall furnish, no later than thirty (30) days prior to the anticipated filing date for the Company Tax Return, a draft to Akerna
of all such Company Tax Returns (including copies of all work papers related thereto) and such other information regarding such
Company Tax Returns as may be reasonably requested by Akerna for Akerna’s review, comment, and consent (which consent shall
not be unreasonably withheld, conditioned or delayed), and the Shareholder Representatives shall consider in good faith comments
by Akerna provided that such comments are requested no later than fifteen (15) days after Akerna’s receipt of such draft
Company Tax Returns. Such Company Tax Returns shall be prepared in a manner consistent with past practice and custom of the Shareholder
Representatives or the Company or any of its Subsidiaries, as applicable, except as otherwise required by applicable Law. In the
event that the Shareholder Representatives and Akerna are unable to resolve any dispute with respect to such Tax Returns, they
shall not be filed absent the consent of Akerna and such dispute shall be resolved by the Final Accounting Firm in a final binding
manner; provided, however, such dispute shall not in any way disrupt or delay the timely filing of such Company Tax
Return and Akerna shall file or cause or cause to be filed any amended Tax Return as needed to conform to the Final Accounting
Firm’s final determination. The fees and expenses of the Final Accounting Firm shall be borne equally by Shareholders, on
the one hand, and Akerna, on the other hand. The Shareholders shall pay all Taxes shown as due on such Company Tax Returns.

 

(ii)
Akerna shall prepare or cause to be prepared and file or cause to be filed all other Tax Returns of the Company and each
of its Subsidiaries (collectively the “Akerna Tax Returns”). In the case of a Akerna Tax Return for a Straddle
Period (“Straddle Period Returns”), Akerna shall prepare or cause to be prepared such Straddle Period Returns
in a manner consistent with past practice and custom of the Company and each of its Subsidiaries unless otherwise required by applicable
Law. Akerna shall furnish a draft to the Shareholder Representatives of all such Straddle Period Returns (including copies of all
work papers related thereto) and such other information regarding such Straddle Period Returns as may be reasonably requested by
the Shareholder Representatives at least thirty (30) days prior to anticipated filing date for such Straddle Period Return, except
in the case of a Straddle Period Return due within ninety (90) days following the Closing Date, the draft shall be provided to
the Shareholder Representatives within twenty (20) days prior to the anticipated filing date and in the case of a Tax Return that
is not an income Tax Return as early as practical. The Shareholders shall pay to Akerna the portion of the Taxes shown as due on
the Straddle Period Tax Returns that are allocable to the portion of the Straddle Period ending on and including the Closing Date
prior to the due date for the filing thereof, except to the extent such Taxes were included as a liability in Closing Working Capital
and reduced the Consideration.

 

(c)
Straddle Periods. In the case of any Straddle Period, the amount of any Taxes and Tax liabilities of the Company
or any of its Subsidiaries not based upon or measured by income, activities, events, gain, receipts, proceeds, profits, payroll
or similar items for the portion of such Straddle Period ending on and including the Closing Date will be deemed to be the amount
of such Taxes for the entire Tax Period multiplied by a fraction, the numerator of which is the number of days in the Tax Period
ending on the Closing Date and the denominator of which is the number of days in such Straddle Period. The amount of any other
Taxes that relate to the portion of such Straddle Period ending on and including the Closing Date will be determined based on an
interim closing of the books as of the close of business on the Closing Date (and for such purpose the Taxable Period of any partnership
will be deemed to end as of the close of business on the Closing Date); provided, however, that any item determined on an annual
or periodic basis (such as deductions for depreciation or real estate Taxes) shall be apportioned on a daily basis.

 

    56

     

    

 

(d)
Amended Returns. Except as specifically provided in Section 9.5(b)(i) and Section 9.5(b)(ii), Akerna
shall not, and shall not permit any of its Affiliates (including, after the Closing for the avoidance of doubt, the Company) to
file, re-file, supplement, or amend any Tax Return of the Company for any Taxable Period ending on or prior to the Closing, without
the Shareholders’ Representatives’ consent (not to be unreasonably withheld).

 

(e)
Refunds and Credits. Any refunds (including, for the avoidance of doubt, overpayments of estimated Taxes) of or credits
against Taxes (including any interest paid or credited with respect thereto) of, or with respect to, the Company or any of its
Subsidiaries that are attributable or allocable to any Pre-Closing Tax Period will be for the benefit of the Shareholders, but
only to the extent that such Tax refund (i) is not reflected in the calculation of Closing Net Working Capital, (ii) does not result
from the carryback of any Tax item from a post-Closing Tax period (or portion thereof) and (iii) is in respect of Taxes that were
paid prior to the Closing, were indemnified by the Shareholders or were included in the calculation of Closing Net Working Capital
in each case as finally determined. Akerna will pay the amount of any such refunds or credits (whether received as a refund or
as a credit against or an offset of Taxes otherwise payable for the then current fiscal year), net of reasonable expenses or Taxes
incurred by Akerna or the Company in obtaining such refund or credit, promptly after receipt thereto or utilization thereof. To
the extent a refund or credit against Taxes that gave rise to a payment hereunder is subsequently disallowed or otherwise reduced,
the Shareholders shall pay to Akerna the amount of such disallowed or reduced refund or credit against Taxes.

 

(f)
Cooperation and Tax Record Retention. Each Party, shall cooperate and shall cause its respective Affiliates to cooperate
with each other Party and with each other Party’s agents, including accounting firms and legal counsel, in connection with
any Tax Proceeding in respect of Taxes assessed or proposed to be assessed against the Company or any of its Subsidiaries or the
preparation of any Tax Return. Such cooperation shall include each Party making such information and documents in its possession
relating to the Company or any of its Subsidiaries reasonably necessary in connection with any such Tax Proceeding available to
the other Party. The Parties shall retain all Tax Returns, schedules, and work papers, and all material records and other documents
relating thereto, until the expiration of the applicable statute of limitations (including, to the extent noticed by any Party,
any extensions thereof) of the Tax Period to which such Tax Returns and other documents and information relate. Each of the Parties
shall also make available to the another Party, as reasonably requested and available on a mutually convenient basis, personnel
responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes to provide reasonable explanation
of any documents or information provided hereunder. Any information or documents provided under this Agreement shall be kept confidential
by the Party receiving such information or documents, except as may otherwise be necessary in connection with the filing of Tax
Returns or in connection with a Tax Proceeding.

 

    57

     

    

 

(g)
Tax Sharing Agreements. All Tax sharing Contracts or similar Contracts with respect to or involving the Company or
any of its Subsidiaries shall be terminated as of the Closing and, after Closing, the Company and each of its Subsidiaries shall
not be bound by nor have any liabilities under any such agreements (whether for the current year, a past year or a future year).

 

(h)
Tax Certificates. To the extent available, the Shareholder Representatives or Akerna (as the case may be) shall provide
the other Party with any certificates or other document from any Governmental Authority or any other person (other than a Party)
as may be necessary to mitigate, reduce or eliminate any Tax liability of the Company or any of its Subsidiaries.

 

(i)
Tax Proceedings.

 

(i)
In the event that a Party (or any Affiliate thereof) receives notice from any Governmental Authority of any proposed audit,
assessment, examination, claim or other controversy or proceeding relating to an amount of Taxes of the Company or any of its Subsidiaries
(a “Tax Proceeding”) with respect to which any other Party may incur liability hereunder, such Party shall promptly
notify the applicable Party of such Tax Proceeding. Such notice shall contain factual information (to the extent known) describing
any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice or other documents received from
any Governmental Authority with respect to such matter. If any Party, receives written notice of an asserted Tax liability with
respect to a matter for which it has a right to indemnification hereunder (and the other Party does not have knowledge of the asserted
Tax liability) and fails to provide the other Party with notice thereof within 30 days in the manner described in the preceding
sentence and as a result such other Party is actually and materially prejudiced by such failure to notify, then such other (indemnifying)
Party shall be relieved of its indemnification obligations with respect to such asserted Tax liability to the extent of such prejudice.

 

(ii)
At their election, the Shareholder Representatives shall, at the sole expense of the Shareholders, control any Tax Proceedings
related to Taxes with respect to a Taxable Period ending on or prior to the Closing Date; provided, that the Shareholder Representatives
must control such Tax Proceeding in good faith and with reasonable diligence thereafter to preserve the Shareholders’ rights.
The Shareholder Representatives shall keep Akerna fully and timely informed with respect to the commencement, status and nature
of any such Tax Proceeding. The Shareholder Representatives shall, in good faith, allow Akerna to make comments to the Shareholder
Representatives regarding the conduct of or positions taken in any such proceeding. Akerna shall, at its sole expense, be entitled
to fully participate in any such Tax Proceeding. Akerna shall have the right to consent to any settlement with respect to any such
Tax Proceeding (provided such consent cannot be unreasonably withheld, conditioned or delayed). In the case that Akerna controls
such Tax Proceeding because the Shareholder Representatives concede or lose their right to control such Tax Proceeding, Akerna
shall keep the Shareholder Representatives fully and timely informed with respect to the commencement, status and nature of any
such Tax Proceeding and Shareholder Representatives shall be entitled to fully participate in any such Tax Proceeding and shall
have the right to consent to the settlement of any such Tax Proceeding (provided such consent cannot be unreasonably withheld,
conditioned or delayed).

 

    58

     

    

 

(iii)
Except as provided in Section 9.5(i)(ii), Akerna shall control in good faith any audit or examination by any Governmental
Authority, initiate any claim for refund, amend any Tax Return, and contest, resolve and defend against any assessment for additional
Taxes, notice of Tax deficiency or other adjustment of Taxes of or relating to, the income, assets or operations the Company or
any of its Subsidiaries for all Taxable Periods, provided, however, Akerna shall keep the Shareholder Representatives
informed with respect to the commencement, status and nature of any Tax Proceeding related to the Straddle Period and the Shareholder
Representatives shall be entitled to participate fully in any such Tax Proceeding and shall have the right to consent to the settlement
of any such Tax Proceeding, which consent shall not be unreasonably withheld, delayed or conditioned.

 

(iv)
Akerna shall bear its expenses incurred in connection with any Tax Proceeding and the Shareholders shall bear its expenses
incurred in connection with any such Tax Proceeding; provided, however, if Akerna controls a Tax Proceeding with
respect to a Pre-Closing Tax Period that the Shareholder Representatives could have controlled pursuant to the terms of this Agreement
but did not elect to control or lost its right to control, then the Shareholders shall bear the reasonable costs and expenses of
such Tax Proceeding and reimburse Akerna for its expenses with respect thereto.

 

(j)
Conflicts. To the extent of any inconsistencies between any provision of Section 9.5 and Article X,
the provisions of Section 9.5 shall control.

 

9.6
Transfer Taxes. All Transfer Taxes shall be borne and paid by Shareholders when due. The Shareholders shall, at their
own expense, timely file any tax return or other document with respect to such Taxes or fees (and Akerna shall cooperate with respect
thereto as necessary.) 

 

9.7
Transaction Expenses. Except as otherwise provided herein, Akerna shall pay all of its expenses in connection with
the transactions contemplated hereby and the Shareholder Parties shall pay all of their expenses incurred in connection with the
transactions contemplated hereby, including without limitation, all attorneys’ fees and expenses and accountants’ fees
and expenses.

 

9.8
Broker’s Fees. Each of the Parties shall be responsible for, and shall hold each of the other Parties harmless
against, any fees or commissions for which such Party is liable to any broker, finder or agent with respect to the transactions
contemplated by this Agreement. The Shareholder Parties agree that for purposes hereof, the Shareholders shall hold Akerna, the
Company and the Company’s Subsidiaries harmless from any such claim made against the Company or any of its Subsidiaries.

 

9.9
Further Assurances. Each Party hereto agrees that such Party shall, from time to time after the date of this Agreement,
execute and deliver such other documents and instruments and take such other actions as may be reasonably requested by any other
Party to carry out the transactions contemplated by this Agreement.

 

    59

     

    

 

9.10
Pre-Closing Distribution. The Company may, prior to the Closing, so long as the Company has no Indebtedness, distribute
up to $50,000 of cash to a trust established by the Company for the benefit of the Company shareholders who sell the Transferred
Shares (the “Shareholder Trust”). Any director of the Company prior to Closing may act as a trustee of such
trust.

 

9.11
Akerna Purchase Option.

 

(a)
Grant of Purchase Option. Subject to the terms and conditions of this Agreement, the Shareholders hereby grant to
Akerna, during the time period commencing on the Closing Date and ending on the twelve-month anniversary of the Closing Date (the
“Option Period”) the option to purchase all (but not less than all) shares of the Company then held by Shareholders
(the “Akerna Option Shares”) for the Akerna Option Price (as defined below) (the “Akerna Purchase Option”);
provided, that Akerna shall obtain the approval of its shareholders to the exercise of the Akerna Purchase Option prior to exercising
such option (which approval may be obtained at any time on or after the date of this Agreement and prior to the exercise of the
Akerna Purchase Option). All of such Shares shall be delivered free of liens, encumbrances or options.

 

(b)
Manner of Exercise. Akerna may exercise the Akerna Purchase Option by delivering written notice of exercise to the
Company and to the Shareholders within the Option Period. The date of Company’s or the Shareholders’ receipt of such
notice shall be the “Date of Exercise.”

 

(c)
Closing; Payment of Akerna Option Price. Upon exercise of the Akerna Purchase Option, the purchase and transfer of
the Akerna Option Shares will take place remotely via the exchange of documents and signatures against payment of the Akerna Option
Price by wire transfer as instructed by the Shareholders at a closing, if the Akerna Option Price is paid in cash (the “Akerna
Option Closing”), or by delivery of a certificate representing the pro rata portion to which each Shareholder is entitled
in respect of the Akerna Shares if the Akerna Option Price is paid in Akerna Shares. The Akerna Option Closing will take place
at 10:00 A.M. Eastern Standard Time on the date which is no later than sixty (60) days after the Date of Exercise (the “Akerna
Option Closing Date”) or at such other date and place as is mutually agreed upon by the parties.

 

(d)
Akerna Option Price. The Akerna Option Price may be paid, at the sole option of Akerna, in either cash or Akerna
Shares in an amount equal to either (a) if Akerna Shares are trading at an amount less than or equal to $16.00 per share, the greater
of (i) 800,000 Akerna Shares or (ii) the difference between the number of Akerna Shares worth $20,000,000 valued at Market Price
and 1,950,000 Akerna Shares, or (b) if Akerna Shares are trading at more than $16.00 per share, the number of Akerna Shares equal
to the (A) difference between (i) the product of the Market Price and 1,950,000 Akerna Shares and (ii) $44,000,000, divided by
(B) the Market Price.

 

(e)
Shareholder IP Funding Obligation. Shareholders agree that they shall bear the economic burden of any and all payments
in respect of the Intellectual Property Purchase Agreement. Such payments shall be made from funds generated from the IP Purchase
Escrow Shares and shall be completed prior to the date which is twelve (12) months from the Closing Date. Following satisfaction
of the payment obligations of the Company under the Intellectual Property Purchase Agreement, any IP Purchase Escrow Shares remaining
(or funds remaining in escrow in respect of such IP Purchase Escrow Shares) shall be distributed to the Shareholders. Each of Akerna
and the Shareholder Representatives shall promptly execute and deliver a joint written direction to the Escrow Agent to release
the IP Purchase Escrow Shares (or funds in respect of such IP Purchase Escrow Funds) in accordance with the provisions of this
Section 9.11(e).

 

    60

     

    

 

9.12
Shareholder Repurchase Option.

 

(a)
Grant of Repurchase Option. Subject to the terms and conditions of this Agreement, in the event the Akerna Purchase
Option is not exercised by the Akerna during the Option Period and consummated within ninety (90) days after the Date of Exercise,
Akerna hereby grants to the Shareholders, during the time period commencing on the day following the expiration of the Option Period
and ending on the three month anniversary of such date (the “Repurchase Option Period”), the option to purchase
an amount between Forty percent (40%) and Fifty five percent (55%) of the outstanding Shares of the Company (the “Repurchase
Shares”) from Akerna (the “Repurchase Option”) for the Shareholder Repurchase Price (as defined below).
All of such Shares shall be delivered free of liens, encumbrances or options.

 

(b)
Manner of Exercise. The Shareholders may exercise the Repurchase Option by delivering written notice of exercise
to Akerna, along with proof of a bona fide financing offer, within the Repurchase Option Period. The date of Akerna’s receipt
of such notice shall be the “Repurchase Date of Exercise.”

 

(c)
Closing; Payment of Shareholder Repurchase Price. Within ninety (90) days following exercise of the Repurchase Option,
the purchase and transfer of the Repurchase Shares will take place remotely via the exchange of documents and signatures against
payment of the Shareholder Repurchase Price by wire transfer as instructed by Akerna at closing, with such closing to take place
at 10:00 A.M. Eastern Standard Time on the date which is no later than sixty (60) days after the Repurchase Date of Exercise or
at such other date and place as is mutually agreed upon by the parties.

 

(d)
Shareholder Repurchase Price. The Shareholder Repurchase Price will equal the lesser of (a) the product of (X) Twenty
Million Dollars ($20,000,000) and (Y) the percentage of the Company’s Shares to be repurchased from Akerna, or (b) the difference
between (i) the product of (X) Twenty Million Dollars ($20,000,000) and (Y) the percentage of the Company’s Shares to be
repurchased from Akerna and (ii) the product of (A) One Million Nine Hundred and Fifty Thousand (1,950,000) Akerna Shares and (B)
$8.00 minus the Market Price.

 

9.13
Akerna Additional Capital Contribution. Following the Closing Date, Akerna will make additional capital contributions
to the Company of an aggregate of Two Million Four Hundred Thousand Dollars ($2,400,000) (the “Additional Capital Contribution”).
Akerna’s first Additional Capital Contribution payment will be in the amount of $250,000 and will be made by Akerna within
two (2) Business Days following the Closing Date, with the remainder of the Additional Capital Contribution to be paid based on
a budget developed within 30 days of the Closing Date; provided, however, that while the budget is being developed, Akerna will
continue to make additional capital contributions of at least $250,000 per month.

 

    61

     

    

 

9.14
Payments to The London Fund. Following Closing, Akerna will cause the Company to pay to ACS Pedersen LLC (d/b/a The
London Fund SPV 10, LLC) a transaction fee in the amount of Two Hundred Fifty Thousand Dollars ($250,000), to be paid in four quarterly
payments of Sixty-Two Thousand Five Hundred Dollars ($62,500) each, the first payment to be made on the first Business Day of the
month following the Closing, and quarterly thereafter.

 

9.15
Appointment of Shareholder Representative.

 

(a)
By approving this Agreement and the transactions contemplated hereby and by virtue of the consummation of the transfer of
the Shares, each Shareholder shall have irrevocably authorized and appointed the Shareholder Representatives as such Person’s
representative, agent and attorney-in-fact to act on behalf of such Person, by majority vote, for all purposes in connection with
this Agreement and the agreements ancillary hereto, including the exercise of the power to: (a) give and receive notices and communications
on behalf of the Shareholders; (b) review, negotiate and settle the Target Working Capital and each all payments of consideration
related thereto; (c) authorize distribution of the Escrow Shares to an Akerna Indemnified Party; (d) object to distributions and
set-offs; (e) agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with governmental
orders with respect to such claims; (f) compromise any indemnity claim on behalf of the Shareholders and to transact matters of
arbitration, litigation or other actions; (g) execute and deliver all amendments, waivers, ancillary agreements and documents that
the Shareholder Representatives deem necessary or appropriate in connection with the consummation of the transactions contemplated
by this Agreement; (h) execute and deliver all amendments and waivers to this Agreement that the Shareholder Representatives deem
necessary or appropriate; (i) defend, settle, or compromise any claim, action or legal proceeding for which any Akerna Indemnified
Party may be entitled to indemnification hereunder; (j) do or refrain from doing any further act or deed on behalf of the Shareholders
that Shareholder Representatives deem necessary or appropriate in their sole discretion relating to the subject matter of this
Agreement as fully and completely as the Shareholders could do if personally present; (k) receive service of process in connection
with any claims under this Agreement; (l) pay such amounts as the Shareholder Representatives shall determine to any Person pursuant
to arrangements between the Shareholder Representatives and any such Person; and (m) take all actions necessary or appropriate
in the judgment of the Shareholder Representatives for the accomplishment of the foregoing and any other actions or matters contemplated
by this Agreement or the agreements ancillary hereto on behalf of the Shareholders. After the Closing, notices or communications
to or from the Shareholder Representatives shall constitute notice to or from each Shareholder.

 

(b)
Indemnification of Shareholder Representatives. The Shareholder Representatives will incur no liability of any kind
to the Shareholders with respect to any action or omission by such Shareholder Representative in connection with its services pursuant
to this Agreement and any agreements ancillary hereto, except in the event of liability directly resulting from such Shareholder
Representative’s gross negligence or willful misconduct. The Shareholder Representatives shall not be liable to the Shareholders
for any action or omission pursuant to the advice of counsel. The Shareholders shall severally (and not jointly) indemnify, defend
and hold harmless the Shareholder Representatives from and against any and all losses, liabilities, damages, claims, penalties,
fines, forfeitures, actions, fees, costs and expenses (including the fees and expenses of counsel and experts and their staffs
and all expense of document location, duplication and shipment) (collectively, “Representative Losses”) arising
out of or in connection with the Shareholder Representatives’ execution and performance of this Agreement and any agreements
ancillary hereto, in each case as such Representative Loss is suffered or incurred; provided, that in the event that any such Representative
Loss is finally adjudicated to have been directly caused by the gross negligence or willful misconduct of such Shareholder Representative,
such Shareholder Representative will reimburse the Shareholders the amount of such indemnified Representative Loss to the extent
attributable to such gross negligence or willful misconduct.

 

    62

     

    

 

(c)
Reliance. Each of the Escrow Agent and Akerna may rely upon any decision, act, consent or instruction of the Shareholder
Representatives as being the decision, act, consent or instruction of each and every Shareholder. The Escrow Agent and Akerna are
hereby relieved from any liability to any Person for any acts done by them in accordance with such decision, act, consent or instruction
of the Shareholder Representatives.

 

9.16
Management of the Company Post-Closing. Subject to the terms of his Employment Agreement, Ashesh C. Shah shall serve
as Chief Executive Officer of the Company following the Closing. For the period between the Closing and the earlier to occur of
(i) Akerna’s exercise of the Akerna Purchase Option and the closing thereof; (ii) Shareholders’ exercise of the Repurchase
Option and the closing thereof; or (iii) the expiration of the Repurchase Option (the "Transition Period"), the
Board of Directors of the Company shall consist of four persons nominated by Akerna and three persons nominated by the Shareholder
Representatives, who shall constitute a Special Committee of the Board of Directors of the Company. In the event any member of
the Special Committee dies or resigns, the remaining members shall appoint a person to fill the vacancy, and Akerna shall cause
such person to be elected to the Company’s Board of Directors. During the Transition Period, the Special Committee shall
have sole authority to make all decisions on behalf of the Company concerning transactions between Akerna and the Company, including,
without limitation, (a) enforcement of any obligations of Akerna with respect to the Additional Capital Contribution, and (b) the
License Agreement referred to in Section 9.17 below. The Board of Directors of the Company shall adopt resolutions in customary
form appointing the Special Committee, and empowering it to hire, on terms and conditions acceptable to the Special Committee and
at the Company’s expense, legal and financial advisors who are independent of Akerna and the Company to assist the Special
Committee in the fulfillment of its duties, as described above, and to enter into, on behalf of the Company, agreements to retain
such advisors, which may include, among other things, indemnification arrangements that are acceptable to the Special Committee;
and that, to the fullest extent permitted by applicable law, the deliberations and records of the Special Committee shall be confidential
and, without limiting the generality of the foregoing, all statutory and common law privileges shall be available with respect
to legal advice rendered to, and documents prepared by counsel to assist the Special Committee in its deliberations. During the
Transition Period, (x) Akerna shall not sell any of the Transferred Shares, (y) shall not sell substantially all of the Company’s
assets, and (z) shall not issue additional equity securities of the Company or options to purchase equity securities of the Company
without the approval of the Special Committee, which shall not be unreasonably withheld.

 

9.17
License Agreement. At the Closing Akerna and the Company shall enter into a License Agreement on terms acceptable
to Akerna and the Company under which Akerna will grant the Company a license to use and exploit data collected by Akerna and its
subsidiaries.

 

    63

     

    

 

9.18
Data Project. Following the Closing the Company shall, subject to and in accordance with the Company’s business
plan and budget, pursue a project to develop and provide comprehensive data driven cannabis market insights and consumer research
information to various participants in the cannabis industry based on terms to be set forth in a separate agreement.

 

9.19
Option Fees. Following the Closing, during the Option Fee Term, the Company will pay to the Shareholder Trust, in
cash, within thirty (30) days following the end of each Option Fee Year, an aggregate amount equal to the Option Fee accrued for
Solo Products sold during such Option Fee Year.

 

9.20
Certain Obligations. Each of the Shareholders party to this Agreement as of the date hereof shall use best efforts
to cause those shareholders of the Company not party hereto to become party to this Agreement as a Shareholder prior to the Closing.

 

Article
X.

INDEMNIFICATION

 

10.1
Survival. The representations and warranties of the Shareholders contained in Article VI and of the Shareholder
Parties contained in Article VII shall survive the Closing until the twelve (12) month anniversary of the Closing Date;
provided, however, that claims for Losses based on fraud shall survive the Closing indefinitely and claims for Losses
based on the representations and warranties set forth in Section 6.2 and Section 6.5 shall survive until the expiration
of the applicable statute of limitations with respect thereto. The covenants to be performed after the Closing, including as set
forth in Section 9.5, shall survive until fully performed. The representations and warranties of Akerna contained in Article
VIII hereof shall survive the Closing for twelve (12) months after the Closing Date.

 

10.2
Shareholder Indemnification. Subject to Section 10.3, from and after the Closing,
the Shareholder Parties, on a several (and not joint) basis, agree to indemnify Akerna, its Affiliates, the Company, the Company’s
Subsidiaries, their members and any of their successors and assigns, and any of their respective agents, employees, Representatives,
officers, managers and directors (the “Akerna Indemnified Parties”), against, and hold Akerna Indemnified Parties
harmless from, any and all Losses suffered by any Akerna Indemnified Party to the extent arising out of:

 

(a)
any breach of or any inaccuracy in any representation or warranty made by (A) each Shareholder in Article VI of this
Agreement or (B) the Shareholder Parties in Article VII of this Agreement;

 

(b)
any breach of or failure by the Shareholder Parties or any of their respective Affiliates to perform any covenant, agreement
or obligation set out in this Agreement;

 

(c)
any Company Transaction Expenses that remain unpaid as of immediately prior to the Closing and are not taken into account
in the final determination of the Other Post-Closing Amounts;

 

(d)
any Indebtedness that remains unpaid as of immediately prior to the Closing and is not taken into account in the final determination
of the Other Post-Closing Amounts;

 

    64

     

    

 

(e)
any demand, claim, suit, cause of action, proceeding or assessment brought by any current or former member, equity holder,
warrantholder or option holder of any Shareholder Party or any Affiliate of any Shareholder Party (in such Person’s capacity
as such) against Akerna, the Company or any of its Subsidiaries in connection with this Agreement, the transactions contemplated
hereby or thereby, including any claim that the Consideration or any other amount was not properly distributed to such Person;
and

 

(f)
any amounts payable pursuant to Section 9.5.

 

10.3
Limitations on Losses.

 

(a)
Deductible. Akerna Indemnified Parties shall have the right to remedies under Section 10.2(a) if, and only
to the extent that, Akerna Indemnified Parties shall have incurred as to all matters giving rise to indemnification under Section
10.2(a), indemnifiable Losses in excess of an amount equal to $250,000 (the “Deductible”); provided,
however, that once Losses exceed the Deductible, the Akerna Indemnified Parties shall be entitled to recover all such Losses
including the Deductible; provided, further, that, for the avoidance of doubt, the Deductible shall not apply to
claims for Losses incurred with respect to the Fundamental Representations, claims for indemnity under Sections 10.2(b)-(g),
claims based on fraud or willful misconduct or claims for indemnification for any Taxes, whether pursuant to Section 9.5
of this Agreement or otherwise (collectively, the “Excluded Claims”).

 

(b)
Cap. Subject to the terms of Section 9.11(e) (pursuant to which the IP Purchase
Escrow Shares are available solely to satisfy the payment obligations under the Intellectual Property Purchase Agreement and the
Shareholders’ obligation to cause such payment), no Losses shall be recoverable by Akerna Indemnified Parties pursuant to
this Agreement in excess of the Escrow Amount (the “Cap”), which shall be satisfied solely from the Akerna Shares
comprising the Escrow Shares; provided, however, that the Cap shall not apply to Losses suffered or incurred by Akerna Indemnified
Parties arising out of claims based on (i) a breach of the representations and warranties set forth in Section 6.2 and/or
Section 6.5 or (ii) fraud or willful misconduct; provided, however, all such claims shall be limited with respect to each
Shareholder to such Shareholders’ pro rata portion of the Consideration.

 

10.4
Indemnification Procedures.

 

(a)
Computation of Losses.

 

(i)
Recovery hereunder may not be obtained hereunder for the same Loss more than once.

 

(ii)
For purposes of (A) determining whether a breach has occurred and (B) calculating Losses in connection with a claim for
indemnification under this Article X, each of the representations and warranties that contains any qualifications as to
“material,” “materiality” or “Material Adverse Change” or similar qualifications shall be deemed
to have been given as though there were no such qualifications.

 

    65

     

    

 

(b)
Exclusive Remedy. The sole and exclusive liability and responsibility of the Shareholder Parties to Akerna Indemnified
Parties under or in connection with this Agreement, or the transactions contemplated hereby or thereby, and the sole and exclusive
remedy of Akerna Indemnified Parties and the Shareholder Parties with respect to any of the foregoing, shall be as set forth in
Article X of this Agreement or as set forth in any of the Documents. Notwithstanding the foregoing, (i) this Article
X shall not prevent or restrict the right of any Party to obtain injunctive relief or specific performance from a court of
competent jurisdiction and (ii) in the case of fraud or willful misconduct
by the Company or any Shareholder, the foregoing provisions shall not be exclusive as to the Company or any Shareholder, but shall
be in addition to any other rights or remedies to which Akerna Indemnified Parties and their respective assigns, as the case may
be, may be entitled at law or in equity.

 

(c)
Net Losses. Notwithstanding anything contained herein to the contrary, the amount of any Losses incurred or suffered
by an Indemnified Person shall be calculated after giving effect to any insurance proceeds actually received by the Indemnified
Person with respect to such Losses, net of the costs associated with the recovery thereof. If any such proceeds are received by
an Indemnified Person with respect to any Losses after an Indemnifying Person has made a payment to the Indemnified Person with
respect thereto, the Indemnified Person shall pay to the Indemnifying Person the amount of such proceeds, benefits or recoveries,
net of the costs associated with the recovery thereof.

 

(d)
Claims. Subject to the applicable time periods set forth in this Article X, and as promptly as is reasonably
practicable after becoming aware of a claim for indemnification under this Agreement that does not involve a third party claim,
or the commencement of any suit, action or proceeding of the type described in Section 10.4(e), the Indemnified Person shall
give notice to the Indemnifying Person of such claim, which notice shall, to the extent such information is reasonably available,
specify the facts alleged to constitute the basis for such claim, the representations, warranties, covenants and obligations alleged
to have been breached and the amount that the Indemnified Person seeks hereunder from the Indemnifying Person, together with such
information, to the extent such information is reasonably available, as may be necessary for the Indemnifying Person to determine
that the limitations in Section 10.3 have been satisfied or do not apply.

 

(e)
Notice of Third Party Claims; Assumption of Defense. The Indemnified Person shall give notice as promptly as is reasonably
practicable after receiving notice thereof, to the Indemnifying Person of the assertion of any claim, or the commencement of any
suit, action or Proceeding, by any Person not a party hereto in respect of which indemnity may be sought under this Agreement (which
notice shall, to the extent such information is reasonably available, specify in reasonable detail the nature and amount of such
claim together with such information as may be necessary for the Indemnifying Person to determine that the limitations in Section
10.3 have been satisfied or do not apply). Failure of the Indemnified Person to give the Indemnifying Person notice as provided
herein shall not relieve the Indemnifying Person of any of its obligations hereunder, except to the extent that the Indemnifying
Person is actually prejudiced by such failure. The Indemnifying Person may, at its own expense, (i) participate in the defense
of any such claim, suit, action or proceeding, or (ii) upon notice to the Indemnified Person at any time during the course of any
such claim, suit, action or Proceeding, assume the defense thereof with counsel reasonably acceptable to the Indemnified Person
and shall thereafter keep the Indemnified Person reasonably informed with respect thereto; provided, however, that
the Indemnifying Person shall not be entitled to assume the defense of any claim if (A) such claim primarily seeks an injunction
or equitable relief against the Indemnified Person, (B) to the extent the Indemnified Person has been advised by counsel in writing
(with a copy provided to the Indemnifying Person) that a conflict exists between the Indemnified Person and the Indemnifying Person
in connection with the defense of the third party claim, (C) the third party claim consists of a criminal Proceeding or regulatory
Proceeding or (D) the amount of such claim, together with the amount of all then pending claims, exceeds the then remaining balance
of the Escrow Shares. If the Indemnifying Person assumes such defense, the Indemnified Person shall have the right (but not the
duty) to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the
Indemnifying Person. Whether or not the Indemnifying Person chooses to defend or prosecute any such claim, suit, action or Proceeding,
all of the Parties shall cooperate in the defense or prosecution thereof. 

 

    66

     

    

 

(f)
Settlement or Compromise. Any settlement or compromise made or caused to be made by the Indemnified Person or the
Indemnifying Person, as the case may be, of any such claim, suit, action or Proceeding of the kind referred to in Section 10.4(e)
shall also be binding upon the Indemnifying Person or the Indemnified Person, as the case may be, in the same manner as if a final,
non-appealable judgment or decree had been entered by a court of competent jurisdiction in the amount of such settlement or compromise;
provided, that (i) the Indemnifying Person shall not be entitled to enter into any settlement or compromise unless: (A)
the Indemnified Party shall receive an unconditional release as part of any such settlement or compromise, (B) no obligation, restriction
or Loss shall be imposed on the Indemnified Person as a result of such settlement or compromise without its prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed, (C) no injunction or equitable relief shall be imposed
on the Indemnified Person as a result of such settlement or compromise, (D) such settlement or compromise provides solely for the
payment of money by the Indemnifying Party (or, in the case of a Shareholder, by the Escrow Agent from the Escrow Shares and the
amount to be paid does not exceed the remaining Escrow Shares less the amount of any other pending claims) and the Indemnifying
Party (or Escrow Agent) makes such payment (less any applicable Deductible), and (ii) the Indemnified Person will not compromise
or settle any claim, suit, action or Proceeding without the prior written consent of the Indemnifying Party, which consent shall
not be unreasonably withheld, conditioned or delayed.

 

(g)
Release of Escrow Shares

 

(i)
On the first Business Day following the date twelve (12) months after the Closing Date (the "Release Date"),
Akerna and the Shareholder Representatives shall deliver to the Escrow Agent a joint notice instructing the Escrow Agent to deliver
to the Shareholders: (i) the Escrow Shares remaining in the Escrow Account minus (ii) the sum of all amounts (the “Indemnity
Reserve Amounts”) asserted in good faith by a Akerna Indemnified Party in respect of a claim for indemnification under
this Agreement for which such Akerna Indemnified Party shall have delivered a notice to the Shareholder Representatives in accordance
with the terms of this Agreement and which claims remain outstanding (each, a “Pending Claim”). Any Claim not
duly asserted prior to the Release Date shall be forever barred.

 

(ii)
After the Release Date, following final resolution of all Pending Claim matters for which an Indemnity Reserve Amount has
been established and payment thereupon, upon request by the Shareholder Representatives, the Shareholder Representatives and Akerna
shall instruct the Escrow Agent under the Escrow Agreement to deliver to the Shareholders the excess of any Escrow Shares remaining
in the Escrow Account.

 

    67

     

    

 

(h)
Payment. Once it has been determined (by mutual agreement of Akerna and the Shareholder Representatives, including
as a result of failure to dispute an indemnity claim, or under a final adjudication or determination) that the Shareholder Parties
are obligated to indemnify a Akerna Indemnified Party under this Article X (a “Determined Claim” and,
the Losses payable in connection therewith, the “Determined Losses”), then the Determined Losses shall be payable
as follows:

 

(i)
 first, Akerna and the Shareholders shall promptly issue a joint written direction to the Escrow Agent to release
the amount of such Determined Losses to Akerna from the Escrow Shares; and

 

(ii)
finally, with respect to any Determined Losses for claims based on fraud or willful misconduct for which the Akerna
Indemnified Parties have not fully recovered after giving effect to subpart (h)(i) of this Section 10.4 (including any Determined
Losses for claims based on fraud or willful misconduct), the Shareholder Parties shall, on a several basis, pay to Akerna the amount
of such remaining Determined Losses claims based on fraud or willful misconduct promptly in cash by wire transfer of immediately
available funds.

 

(i)
Tax Treatment of Indemnification Payments. Any indemnification payments pursuant to this ‎Agreement shall be
treated as an adjustment to the Consideration by the Parties for Tax purposes, unless otherwise required by Law.

 

Article
XI.

MISCELLANEOUS

 

11.1
No Third Party Beneficiaries. Except as expressly set forth in Sections 9.4(a) and 10.2, this Agreement
is intended to be solely for the benefit of the Parties to this Agreement, and shall not confer any rights or remedies upon any
Person other than the Parties and their respective successors and permitted assigns, personal Representatives, heirs and estates,
as the case may be. For purposes of clarification, the Indemnified Persons constitute third party beneficiaries of this Agreement
and are entitled to enforce the terms of Article X.

 

11.2
Entire Agreement. This Agreement and the other Documents referred to herein constitute the entire agreement among
the Parties and supersede any prior correspondence or documents evidencing negotiations between the Parties, whether written or
oral, and all understandings, agreements or representations by or among the Parties, written or oral, that may have related in
any way to the subject matter of any Document.

 

11.3
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns and heirs. No Party may assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other Parties; provided, however, that (a) Akerna may, without
the need for further consent from the Shareholders or the Shareholder Representatives (i) assign any or all of its rights and interests
hereunder to one or more of its Affiliates; (ii) designate one or more of its Affiliates to perform its obligations hereunder after
the Closing; (iii) assign any or all of its rights hereunder in connection with a sale of all or substantially all its business
or all or substantially all of the Business (whether by merger, sale of stock or assets, recapitalization or otherwise); and/or
(iv) collaterally assign its rights hereunder to any lenders or financing sources, provided that in any or all of such cases
Akerna nonetheless shall remain responsible together with such assignee or designee for the performance of all of its obligations
hereunder.

 

    68

     

    

 

11.4
Counterparts; Execution. This Agreement may be executed in counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. This Agreement and each of the other Documents may be transmitted
by facsimile machine or by electronic mail or transmission and any Party’s signature appearing on a faxed copy of this Agreement
or an electronically transmitted copy of this Agreement shall be treated as an original signature for all purposes under applicable
Law, including, without limitation, for admission into evidence in any legal proceeding.

 

11.5
Headings. The article and 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.

 

11.6
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 given when delivered personally to the recipient on a Business
Day prior to 5:00 P.M. local time, otherwise on the next Business Day, transmitted by electronic mail to the intended recipient
on a Business Day prior to 5:00 P.M. local time, otherwise on the next Business Day at the email address set forth therefor below
(with electronic confirmation of receipt and hard copy to follow), or one (1) Business Day after deposit with a nationally recognized
overnight delivery service for overnight delivery (receipt requested) and addressed to the intended recipient as set forth below:

 

If to Akerna, to:

 

1601 Arapahoe St

Denver CO 80202

		Attention:	Jessica Billingsley

		Email:	jlb@akerna.com

 

with a copy to:

 

Dentons US LLP

233 South Wacker Drive, Suite 5900

Chicago, IL 60606-6361

		Attention:	Eric P. Berlin

		Email:	eric.berlin@dentons.com

 

    69

     

    

 

If to the Shareholder Representatives, to:

 

12 Heath Hill

Brookline, MA 02445

		Attention:	Ashesh C Shah

Email:

 

44 Cypress St

Brookline, MA 02445

		Attention:	Palle Pedersen

Email:

 

629 Allston Street

Houston, TX 77007

		Attention:	Lokesh Chugh

		Email:	lokesh@thelondonfund.com

 

with a copy to:

 

Haddan & Zepfel LLP

610 Newport Center Drive, Suite 330

Newport Beach, CA 92660

		Attention:	Robert J. Zepfel

		Email:	rjz@haddanzepfel.com

 

Any Party may send
any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using
any other means, but no such notice, request, demand, claim or other communication shall be deemed to have been duly given unless
and until it actually is confirmed as received by the intended recipient. Any Party may change the address to which notices, requests,
demands, claims, and other communications hereunder are to be delivered by giving the other Party notice in the manner herein set
forth.

 

11.7
Governing Law. This Agreement will be governed by and construed in accordance with the Laws of the State of Delaware
without regard to conflicts of laws principles that would require the application of the Law of any other jurisdiction, and the
obligations, rights and remedies of the Parties under this Agreement shall be determined in accordance with such Law.

 

11.8
Amendments and Waivers. No amendment or waiver of any provision of this Agreement shall be valid unless the same
shall be in writing and signed by Akerna and the Shareholder. No waiver or failure to enforce by any Party of any default, misrepresentation,
or breach of warranty or covenant hereunder, whether intentional or not, shall 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.

 

11.9
Specific Performance. Each of the Parties agrees that this Agreement is intended to be legally binding and specifically
enforceable pursuant to its terms and that Akerna and Shareholder would be irreparably harmed if any of the provisions of the Agreement
are not performed in accordance with their specific terms and that monetary damages would not provide adequate remedy in such event.
Accordingly, in addition to any other remedy to which a non-breaching party may be entitled at law, a non-breaching party shall
be entitled to injunctive relief without the posting of any bond or other security to enjoin or prevent breaches of this Agreement
and to specifically enforce the terms and provisions hereof, and the breaching party waives the defense that an adequate remedy
at law may exist.

 

    70

     

    

 

11.10
Incorporation of Exhibits and Schedules. The Exhibits, Schedules and other attachments identified in this Agreement
are part of this Agreement as if set forth in full herein.

 

11.11
Exclusive Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)
ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY SHALL BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE
OF DELAWARE, IN EACH CASE LOCATED IN WILMINGTON, DELAWARE AND EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL WITH DELIVERY
CONFIRMATION TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER
PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE
OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT
ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(b)
EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER DOCUMENTS
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER DOCUMENTS
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF
ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER
IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER
VOLUNTARILY AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 11.11(b).

 

11.12
Public Announcements. The Shareholder Parties and Akerna each agree that they and their Affiliates shall not issue
any press release or otherwise make any public statement or respond to any media inquiry with respect to this Agreement or the
transactions contemplated hereby without the prior approval of Akerna and the Shareholders, which shall not be unreasonably withheld
or delayed, except as may be required by Law, including the Securities Exchange Act of 1934 and the regulations promulgated thereunder,
or by any stock exchanges having jurisdiction over Shareholder, Akerna or their respective Affiliates.

 

    71

     

    

 

11.13
Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity
or question of intent 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.
The word “including” shall mean including without limitation and the word “herein” shall mean “in
this Agreement,” in each case, for any and all purposes in this Agreement. If any payment is required to be made or other
action is required to be taken pursuant to this Agreement on a day which is not a Business Day, then such payment or action shall
be made or taken on the next Business Day. Any reference in this Agreement to any statute or any section thereof shall, unless
otherwise expressly stated, be deemed to be a reference to such statute or section as amended, restated or re-enacted from time
to time. All currency amounts contained herein refer to United States Dollars.

 

11.14
Severability. It is the desire and intent of the Parties that the provisions of this Agreement be enforced to the
fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly,
if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction in accordance with Section
11.11 to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement.
Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable
in such jurisdiction, it shall be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision.

 

[Remainder of page
intentionally left blank. Signature pages follow.]

 

    72

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Stock Purchase Agreement as of the date first above written.

 

	 	AKERNA:
	 	 	 
	 	By:	                                       
	 	 	Name:                    
	 	 	Title: 
	 	 	 
	 	SHAREHOLDERS:
	 	 
	The Shareholders are executing this Agreement by their agent and attorney in fact, the Shareholder Representatives, having provided a valid and binding power of attorney to the Shareholder Representatives to execute this Agreement on their behalf.

 
	 	 	 
	 	COMPANY:
	 	 
	 	SOLO SCIENCES, INC.
	 	 	 
	 	By:	       
	 	 	Name: 
	 	 	Title: 

 

     

     

    

 

SHAREHOLDER REPRESENTATIVES (both in
their capacities as Shareholder Representatives and on behalf of all Shareholders who have delivered an executed power of attorney
to the Shareholder Representatives to execute this Agreement, including, without limitation, those Shareholders listed on Schedule
1):

 

	 	 
	 	Ashesh
C. Shah
	 	 
	 	 
	 	Lokesh
Chugh
	 	 
	 	 
	 	Palle
Pedersen

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]