Document:

Exhibit 10.1

 

 

 

 

 

PURCHASE AND SALE AGREEMENT

 

BY AND AMONG

 

GENIUS BRANDS INTERNATIONAL INC.,

 

GBI
Acquisition LLC,

 

2811210
Ontario Inc.

 

and 

 

THE SELLERS PARTY HERETO

 

 

dated

 

February 1, 2021

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

Table of Contents

Page

	I.   Definitions	1
	II.   Purchase and Sale of Equity Interests	13
	2.1   Purchase and Sale	13
	2.2   Consideration	13
	2.3   Adjustments to Closing Consideration	14
	2.4   The Closing	17
	2.5   Sellers’ and the Companies’ Deliveries and Actions at the Closing	18
	2.6   Buyer’s Deliveries and Actions at the Closing	19
	III.   Sellers’ Representations and Warranties	19
	3.1   Title to the Equity Interests	19
	3.2   Valid and Binding Agreement	20
	3.3   No Breach; Consents	20
	3.4   No Actions and Compliance	20
	3.5   Brokerage	20
	3.6   Wishing Thumbelina	20
	3.7   The Trustees	20
	IV.   Representations and Warranties Regarding the Companies	21
	4.1   Formation; Power and Authority; Valid and Binding	21
	4.2   No Breach; Consents	21
	4.3   Capitalization	21
	4.4   Subsidiaries	22
	4.5   Financial Statements	22
	4.6   Absence of Undisclosed Liabilities	23
	4.7   Books and Records	23
	4.8   Absence of Certain Developments	23
	4.9   Real Property and Assets	25
	4.10   Accounts Receivable	26
	4.11   Taxes	26
	4.12   Intellectual Property	29
	4.13   Data Privacy	30
	4.14   Material Contracts	31
	4.15   Litigation	33
	4.16   Insurance	33
	4.17   Compliance with Laws; Governmental Authorizations	33
	4.18   Environmental Matters	33
	4.19   Employees	34
	4.20   Employee Benefits	36
	4.21   Debt; Guarantees	38
	4.22   Customers	39
	4.23   Affiliated Transactions	39
	4.24   Bank Accounts	39

 

 

 

 

    	 	i	 

     

    

 

	4.25   Anti-Bribery	39
	4.26   Marketing Rights	40
	4.27   Terms of Service	40
	4.28   Immigration Matters	40
	4.29   Availability of Documents	41
	4.30   Competition Act	41
	4.31   Investment Canada Act	41
	4.32   Securities Matters	41
	4.33   Officers and Directors	41
	4.34   Disclosure	41
	V.   Representations and Warranties of Parent, US Sub and Canada Sub	41
	5.1   Incorporation; Power and Authority	41
	5.2   Valid and Binding Agreement	42
	5.3   No Breach; Consents	42
	5.4   Brokerage	42
	5.5   Securities	42
	VI.   Agreements of Sellers	43
	6.1   Intentionally Omitted	43
	6.2   Intentionally Omitted	43
	6.3   Non-Competition; Non-Solicitation	43
	6.4   Use of Certain Names	44
	6.5   PPP Forgiveness	44
	VII.   Agreements of Buyer	44
	7.1   Books and Records, Access After the Closing Date	44
	7.2   Employment Matters	45
	7.3   Release of TD Bank Loan Guarantees	45
	VIII.   Conditions to Closing	45
	8.1   Conditions of Sellers to Closing	45
	8.2   Conditions of Buyer to Closing	46
	IX.   Termination	46
	9.1   Right to Terminate	46
	X.   Indemnification	47
	10.1   Indemnification by Sellers	47
	10.2   Indemnification by Buyer	48
	10.3   Third Party Action	49
	10.4   Sole and Exclusive Remedy	50
	10.5   No Circular Recovery	50
	10.6   Tax Adjustment	50
	10.7   Types of Losses	50
	10.8   Materiality	51
	10.9   Investigation	51

 

 

 

 

    	 	ii	 

     

    

 

	10.10   Insurance and Third Party Recoveries	51
	10.11   Offset Rights and Limitations	51
	10.12   Survival	52
	XI.   Escrow	52
	11.1   Escrow Claims	52
	11.2   Release from Escrow	53
	11.3   Escrow Related Fees	53
	XII.   Tax Matters	53
	12.1   Tax Returns; Payment of Taxes	53
	12.2   Cooperation	54
	12.3   Transfer Taxes	54
	12.4   Section 338(g) Election	54
	12.5   Canadian Tax Elections	55
	XIII.   General	55
	13.1   Press Releases and Announcements	55
	13.2   Expenses	55
	13.3   Further Assurances	55
	13.4   Entire Agreement; Amendment and Waiver	56
	13.5   Notices	56
	13.6   Assignment	57
	13.7   No Third Party Beneficiaries	58
	13.8   Signatures; Counterparts	58
	13.9   Governing Law	58
	13.10   Arbitration	58
	13.11   Injunctive Relief; Consent to Jurisdiction	59
	13.12   Waiver of Trial by Jury	59
	13.13   Specific Performance	59
	13.14   Construction	60
	13.15   Time of Essence	61
	13.16   Confidentiality	61
	13.17   Seller Release	61
	13.18   Liability of Buyer Affiliates	62

 

 

 

 

 

    	 	iii	 

     

    

 

Exhibits and Schedules

 

Exhibits

 

	Exhibit A	Certain Retained Liabilities
	Exhibit B	Sellers’ Allocation 
	Exhibit C	Earnout Matters

 

 

Schedules

 

	2.5(e)	Required Consents
	2.5(h)	Terminated Affiliated Transactions
	3.3(b)	No Breach; Consents 
	4.1	Incorporation and Foreign Qualifications
	4.2	No Breach; Consents 
	4.3	Capitalization
	4.4	Subsidiaries
	4.5(a)	Latest Financial Statements
	4.5(b)	Annual Financial Statements
	4.6	Undisclosed Liabilities
	4.8	Absence of Certain Developments
	4.9(a)	Real Property
	4.9(b)	Assignments and Subleases
	4.9(e)	Encumbrances 
	4.11	Taxes 
	4.12(a)	Intellectual Property
	4.14	Material Contracts
	4.15	Litigation
	4.16	Insurance
	4.17(b)	Material Governmental Authorizations
	4.18	Environmental Matters
	4.19(a)	Business Employees
	4.19(b)	Employment Contracts
	4.20(a)	Employee Benefits
	4.21	Debt; Guarantees
	4.22	Customers
	4.23	Affiliated Transactions
	4.24	Bank Accounts
	4.27	Terms of Service
	4.33	Officers and Directors 

 

 

 

 

 

    	 	iv	 

     

    

 

PURCHASE AND SALE AGREEMENT

 

This PURCHASE AND
SALE AGREEMENT (this “Agreement”) is made as of February 1, 2021 (the “Execution Date”),
by and between (a) (i) Genius Brands International, Inc., a Nevada corporation (“Parent”), (ii) GBI Acquisition
LLC, a New Jersey limited liability company (“US Sub”), and (iii) 2811210 Ontario Inc., a company organized
under the laws of the Province of Ontario (“Canada Sub” and together with Parent and US Sub, “Buyer”),
on the one hand, and (b) (i) Harold Aaron Chizick, a resident of Canada, (ii) Jennifer Mara Chizick, a resident of Canada, (iii)
Wishing Thumbelina Inc., a company organized under the laws of the Province of Ontario (“Wishing Thumbelina”),
and (iv) Harold Aaron Chizick and Jennifer Mara Chizick, trustees of The Chizsix (2019) Family Trust for and on behalf of Harold
Aaron Chizick, Jennifer Mara Chizick and Jay Mark Sonshine, the trustees of The Chizsix (2019) Family Trust, a trust settled under
the laws of the Province of Ontario (the “Trustees”) (each a “Seller” and, collectively,
“Sellers”), on the other hand.

 

Recitals

 

WHEREAS, Sellers
own all of the issued and outstanding Ownership Interests in (a) ChizComm USA Corp, a New Jersey corporation (“ChizComm
US”) and (b) ChizComm, Ltd., a company organized under the laws of the Province of Ontario (“ChizComm Canada,”
and together with ChizComm US, each a “Company” and collectively, the “Companies”) (such
Ownership Interests, collectively, the “Equity Interests”); and

 

WHEREAS, Sellers
desire to sell, and Buyer desires to buy, all of the Equity Interests, on the terms and subject to the conditions set forth in
this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants, representations, warranties and agreements and the conditions set forth in this Agreement,
the Parties hereby agree as follows:

 

I.                  
Definitions

 

In this Agreement and
in Exhibits and Schedules hereto, unless the context otherwise requires, the following terms shall have the meanings assigned below.

 

“AAA”
has the meaning assigned in Section 2.3(g).

 

“Accountants”
has the meaning set forth in Section 2.3(d).

 

“Accounting
Expert” has the meaning assigned in Section 2.3(g).

 

“Actual Balance
Sheet” has the meaning assigned in Section 2.3(d).

 

“Adjusted
Closing Consideration” has the meaning set forth in Section 2.3(a).

 

“Adjustments”
has the meaning assigned in Section 2.3(g).

 

 

 

 

 

    	 	1	 

     

    

 

“Affiliate”
means, with respect to any Person, any legal entity, directly or indirectly, controlling, controlled by or under common control
with such Person, where “control” means a direct or indirect ownership interest of more than 10% in such legal entity
or the possession, directly or indirectly, of the power to direct the management and policies of such legal entity.

 

“Affiliated
Transactions” has the meaning set forth in Section 4.23.

 

“Affiliated
Indebtedness” means any and all intercompany accounts or any other receivables, payables or Indebtedness in effect immediately
before the Closing between any Company, on the one hand, and any Seller, another Company or any of their respective Affiliates,
on the other hand.

 

“Agreement”
has the meaning set forth in the Preamble of this Agreement.

 

“Annual Financial
Statements” has the meaning set forth in Section 4.5(b).

 

“Anti-Spam
Laws” means all applicable Laws, orders, decrees, directives, permits, licenses, Governmental Authorizations and judgments
relating to prohibitions and restrictions on (i) sending, or authorizing or permitting the sending of email, text, and other commercial
messages or commercial electronic messages, or (ii) installing, or authorizing or permitting the installation of computer programs.

 

“Arbitration
Proceeding” has the meaning set forth in Section 13.10.

 

“Arbitration
Rules” has the meaning set forth in Section 13.10.

 

“Assets”
has the meaning set forth in Section 4.9(e).

 

“Beacon Media
Transaction Documents” has the meaning set forth in Exhibit A.

 

“Business”
means the business of providing marketing, media buying and selling, public relations, promotions and advertising services in the
lifestyle, entertainment, toy and gaming spaces.

 

“Business
Day” means any day other than Saturday or Sunday or a day on which federally chartered banking institutions in New York,
New York or Toronto, Canada are authorized by Law to close.

 

“Business
Employees” means those individuals who, as of the Closing Date, perform services for any Company either directly, as
an employee, or indirectly, pursuant to a contract between any Company and a third party (such as a staffing or leasing agency,
professional employer organization, or other Person providing similar services to any Company), including employees on vacation
or leave of absence.

 

“Buyer”
has the meaning set forth in the Preamble of this Agreement.

 

“Buyer Losses”
has the meaning set forth in Section 10.1(a).

 

 

 

 

 

    	 	2	 

     

    

 

“Buyer Indemnified
Parties” has the meaning set forth in Section 10.1(a).

 

“Canada Sub”
has the meaning set forth in the Preamble of this Agreement.

 

“Canadian
Securities Laws” means all applicable securities laws of each jurisdiction of Canada and the respective rules and regulations
under such laws together with applicable published national, multilateral and local policy statements, instruments, notices, blanket
orders and rulings of the securities regulatory authorities in such jurisdictions.

 

“Cap”
has the meaning set forth in Section 10.1(b).

 

“CARES Act”
means the Coronavirus Aid, Relief, and Economic Security Act, ‎Pub. L. 116–136 (116th Cong.) (Mar. 27, 2020), as amended
by subsequent statutes, and applicable rules and guidance promulgated under the CARES Act, as amended by such statutes. 

 

“Cash Consideration”
has the meaning set forth in Section 2.2(a)(i).

 

“Cash on Hand”
means, as of a particular time of determination, cash, cash equivalents and marketable securities and short-term investments, but
excluding any cash and cash equivalents that (a) are held in escrow or as a deposit, (b) resulted from the proceeds of any casualty
loss with respect to any Asset reflected on the Annual Financial Statements or (c) are restricted balances. For the avoidance of
doubt, Cash on Hand shall (i) be calculated net of issued but uncleared checks and drafts and (ii) include checks and drafts deposited
to the accounts of each of the Companies, all as determined in accordance with GAAP.

 

“ChizComm
Canada” has the meaning set forth in the Recitals of this Agreement.

 

“ChizComm
US” has the meaning set forth in the Recitals of this Agreement.

 

“Claims”
has the meaning set forth in Section 13.17.

 

“Closing”
has the meaning set forth in Section 2.4.

 

“Closing Consideration”
has the meaning set forth in Section 2.2(a)(ii).

 

“Closing Date”
has the meaning set forth in Section 2.4.

 

“Closing Statement”
has the meaning set forth in Section 2.3(d).

 

“Code”
means the Internal Revenue Code of 1986, as amended. All references to the Code, U.S. Treasury Regulations or other governmental
pronouncements shall be deemed to include references to any applicable successor regulations or amending pronouncement.

 

“Company”
or “Companies” has the meaning set forth in the Recitals of this Agreement.

 

“Company Indebtedness”
means any Indebtedness of any Company other than (a) Affiliated Indebtedness, (b) the TD Bank Loan and (c) the PPP Loan.

 

“Company Intellectual
Property” has the meaning set forth in Section 4.12(a).

 

 

 

 

 

    	 	3	 

     

    

 

“Company IT
Assets” has the meaning set forth in Section 4.12(g).

 

“Company Marks”
has the meaning set forth in Section 6.4.

 

“Confidential
Information” has the meaning set forth in Section 13.16.

 

“Consent”
means any authorization, consent, approval, filing, waiver, exemption or other action by or notice to any Person or Governmental
Entity.

 

“Consolidated
Group” means any affiliated, combined, consolidated, unitary or similar group with respect to any Taxes, including any
affiliated group within the meaning of Section 1504 of the Code electing to file consolidated federal income Tax Returns and any
similar group under foreign, state or local law.

 

“Continuing
Employee” has the meaning set forth in Section 7.2(a).

 

“Contract”
means a contract, lease (including any Real Property Lease), sub-lease, agreement, purchase order, sales order, mortgage, note,
bond or other binding understanding, whether oral or written, that is in effect as of the date of this Agreement or any time after
the date of this Agreement (including any agency of record agreement, purchase and sale agreement, license agreement, agreement
related to the use, ownership or operation of any Intellectual Property, service agreement, research and development agreement,
advertising and marketing agreement; agreement with any Governmental Entity, indemnification agreement; commission agreement; subscription
agreement or consulting agreement).

 

“Court Direction”
means a final written non-appealable instruction, order or judgment issued or entered by a court of competent jurisdiction.

 

“Deductible”
has the meaning set forth in Section 10.1(b).

 

“Dispute”
has the meaning set forth in Section 13.10.

 

“Effective
Date” means February 1, 2021.

 

“Employment
Agreements” has the meaning set forth in Section 2.5(f).

 

“Encumbrance”
means any charge, claim, community or other marital property interest, exception to title, encumbrance, easement, license, right
of way, condition, reservation, restriction, equitable interest, lien, covenant, option, pledge, mortgage, deed of trust, assignment,
collateral assignment, hypothecation or other security interest, purchase option, right of first refusal, right of first offer
or restriction of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute
of ownership.

 

“Environmental
Laws” means all applicable Laws, orders, decrees, directives, permits, licenses, Governmental Authorizations and judgments
relating to (i) pollution or contamination, (ii) protection of the environment, natural resources or human health and safety, or
(iii) Hazardous Materials.

 

 

 

 

 

    	 	4	 

     

    

 

“Equity Interests”
has the meaning set forth in the Recitals of this Agreement.

 

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

 

“ERISA Affiliate”
means, with respect to any entity, trade or business, any other entity, trade or business that is a member of a group described
in Section 414(b), (c), (m) or (o) of the Code or Section 4001(b)(1) of ERISA that includes the first entity, trade or business,
or that is a member of the same “controlled group” as the first entity, trade or business pursuant to Section 4001(a)(14)
of ERISA.

 

“ESA”
means the Employment Standards Act, 2000 (Ontario), as amended from time to time.

 

“Escrow Agent”
means U.S. Bank.

 

“Escrow Agreement”
has the meaning set forth in Section 2.5(g).

 

“Escrow Amount”
means an amount equal to $1,200,000.

 

“Escrowed
Shares” has the meaning set forth in Section 11.1(a).

 

“Estimated
Adjusted Closing Consideration” has the meaning assigned in Section 2.3(b).

 

“Estimated
Balance Sheet” has the meaning assigned in Section 2.3(b).

 

“Estimated
Closing Statement” has the meaning assigned in Section 2.3(b).

 

“Execution
Date” has the meaning set forth in the Preamble of this Agreement.

 

“FCPA”
has the meaning set forth in Section 4.25(a).

 

“Final Adjusted
Closing Consideration” has the meaning set forth in Section 2.3(i).

 

“Financial
Statements” has the meaning set forth in Section 4.5(b).

 

“Fundamental
Representations” means the representations and warranties of Sellers in Sections 3.1, 3.2, 3.3,
3.5, 3.7, 4.1, 4.2(a), 4.3, 4.4, 4.11, 4.21, and 4.23.

 

“GAAP”
means U.S. generally accepted accounting principles, consistently applied, for ChizComm US and Canadian generally accepted accounting
principles, consistently applied, for ChizComm Canada.

 

“General Survival
Date” means the date that is twelve (12) months immediately following the Closing Date.

 

“Government
Official” means any official, employee or other representative of any Governmental Entity or any political party, party
official or candidate for political office.

 

 

 

 

 

    	 	5	 

     

    

 

“Governmental
Authorization” means any approval, consent, license, permit, waiver, registration or other authorization issued, granted,
given, made available or otherwise required by any Governmental Entity or pursuant to Law.

 

“Governmental
Entity” means any federal, state, provincial, local, foreign, international, intergovernmental or multinational entity
or authority exercising executive, legislative, judicial, regulatory (including securities regulatory authorities), administrative
or taxing functions of or pertaining to government.

 

“Hazardous
Materials” means any pollutant, contaminant, chemical, waste, material or substance as defined in or regulated under
any Environmental Law, including any waste, material, substance, chemical, pollutant or contaminant that might cause any injury
to human health or safety or to the environment, including natural resources, or might subject the owner, lessee, user, occupier,
holder or operator of the Real Property to any imposition of costs or liability under any Environmental Law.

 

“Indebtedness”
means, with respect to any Person, all obligations and liabilities of such Person, including the principal amount and any related
accrued and unpaid interest, fees, prepayment premiums or penalties and change of control or similar payments (a) for borrowed
money, (b) evidenced by notes, bonds, debentures or similar instruments, (c) for the deferred purchase price of goods or services
(other than trade payables incurred in the Ordinary Course of Business), (d) under capital leases, (e) under letters of credit
or similar credit transactions or obligations (f) under interest rate, commodity or currency swap, hedge or similar transactions
(valued at the termination value thereof), (g) all indebtedness secured by any Encumbrance (excluding Permitted Encumbrances) existing
on property owned by any Company or a Subsidiary thereof, whether or not indebtedness secured thereby shall have been assumed,
and (h) in the nature of guarantees of the obligations described in clauses (a) through (g) above of any other Person.

 

“Independent
Contractors” has the meaning set forth in Section 4.19(a).

 

“Intellectual
Property” has the meaning set forth in Section 4.12(a).

 

“IRS”
means the United States Internal Revenue Service.

 

“IT Assets”
has the meaning set forth in Section 4.12(g).

 

“Joint Instructions”
has the meaning set forth in Section 11.2.

 

“Knowledge,”
when used with respect to Sellers, means the actual knowledge, after due inquiry, of Harold Aaron Chizick, Jennifer Mara Chizick,
Donna McNeil and Kathleen Campisano.

 

“Last Fiscal
Year End” has the meaning set forth in Section 4.5(b).

 

“Latest Balance
Sheet Date” has the meaning set forth in Section 4.5(a).

 

“Latest Financial
Statements” has the meaning set forth in Section 4.5(a).

 

 

 

 

 

    	 	6	 

     

    

 

“Law”
means any constitution, law, ordinance, principle of common law, rule, regulation, statute, treaty, or other legally enforceable
requirement of any Governmental Entity, including Canadian Securities Laws.

 

“Leased Real
Property” means all real properties leased, used, occupied, operated or otherwise held by any Company pursuant to a Real
Property Lease, including all of the applicable Company’s right, title and interest in and to any land, buildings, structure,
improvements and fixtures located thereon and easements and other rights and interests appurtenant thereto.

 

“Litigation”
means any claim, charge, complaint, grievance, inquiry, action, arbitration, mediation, audit, hearing, investigation, proceeding,
litigation or suit (whether civil, criminal, administrative, investigative or informal).

 

“Loss”
means any loss, liability, obligation, assessment, damage, deficiency, dues, penalty, sanction, fine, cost (including investigatory,
remedial and corrective action costs), amount paid in settlement, judgment, liability, obligation, Tax, Encumbrance (other than
a Permitted Encumbrance), expense or fee, including court costs and attorneys’ fees and expenses, and any other expenses
incurred pursuant to any demand or Litigation.

 

“Material
Adverse Effect” means any change, effect, event or condition, individually or in the aggregate, that has had or is reasonably
likely to have a material adverse effect on any of the business, assets, properties, condition (financial or otherwise), or results
of operations of the Companies, taken as a whole; provided, however, that in determining whether a Material Adverse
Effect has occurred, any effect to the extent attributable to the following shall not be considered: (a) changes in general economic
conditions; (b) any changes in the economic, business, financial or regulatory environment that affect the industries in which
the Companies operate; and (c) conditions caused by a virus, pandemic or other declared health emergency or actions of any Governmental
Entity related thereto, acts of terrorism or war (whether or not declared and including any escalation or general worsening of
any acts of terrorism) or any natural or manmade disaster or other acts of God (except, in the case of the foregoing clauses (a),
(b) and (c), to the extent that such change or condition disproportionately affects the Companies in an adverse manner as compared
to other participants in the industries in which the Companies operate).

 

“Material
Contracts” has the meaning set forth in Section 4.14(a).

 

“Money Laundering
Laws” has the meaning set forth in Section 4.25(c).

 

“Negative
Adjustment Amount” has the meaning set forth in Section 2.3(j).

 

“Net Assets”
means, with respect to the Estimated Balance Sheet or Actual Balance Sheet, the difference between the total assets (other than
Cash on Hand) and total liabilities (other than Company Indebtedness and Transaction Expenses) of the Companies, in each case determined
in accordance with GAAP. All advertisements and commercials run by any media outlet on behalf any of the Companies prior to the
Closing Date and invoiced by such Company on or after the Closing and all corresponding liabilities to pay such media outlet with
respect thereto will be included in the calculation of total assets and total liabilities of the Companies.

 

 

 

 

 

    	 	7	 

     

    

 

“Order”
means any decision, judgment, injunction, settlement, writ, order, ruling, award, verdict or decree by any Governmental Entity
or arbitrator.

 

“Ordinary
Course of Business” means the ordinary course of business of the applicable Company in conducting its business and operations,
consistent with past custom and practice both in respect of nature and amount.

 

“Organizational
Documents” means (a) the articles or certificate of incorporation and the bylaws of a corporation, (b) the partnership
agreement and any statement or certificate of partnership of a general partnership, (c) the limited partnership agreement and the
certificate of limited partnership of a limited partnership, (d) the limited liability company agreement and articles or certificate
of formation of a limited liability company, (e) any other charter or similar document adopted or filed in connection with the
creation, formation or organization of a Person and (f) any amendment to any of the foregoing.

 

“Ownership
Interest” means, with respect to any Person, (a) shares, capital stock, membership interests, partnership interests,
other equity interests, rights to profits or revenue and any other similar interest of such Person, (b) any security or other interest
convertible into or exchangeable or exercisable for any of the foregoing and (c) any right (contingent or otherwise) to acquire
any of the foregoing.

 

“Parent”
has the meaning set forth in the Preamble.

 

“Parent Common
Stock” means the common stock of Parent, par value $0.001.

 

“Party”
or “Parties” means Parent, US Sub, Canada Sub and each of Sellers.

 

“Per Share
Value” means:

 

(a)              
the closing sale price per share of Parent Common Stock as reported on the stock exchange which holds Parent’s
primary listing on the date that is one trading day immediately preceding (i) with respect to the determination of the Stock Consideration
to be issued to each Seller at Closing, the Closing Date, (ii) with respect to the determination of a number of Escrowed Shares
to be issued in book-entry form in the name of the Escrow Agent (solely in its capacity as Escrow Agent for Parent and Sellers)
at Closing, the Closing Date, (iii) with respect to the applicable distribution in book-entry form of Escrowed Shares in connection
with a Seller Liability Determination, the Closing Date and (iv) with respect to the distribution in book-entry form of Escrowed
Shares in connection with the General Survival Date and the determination of the number of Escrowed Shares to remain in the name
of the Escrow Agent (solely in its capacity as Escrow Agent for Parent and Sellers) with respect to any claims pending as of the
General Survival Date, the Closing Date;

 

(b)              
with respect to the determination of a number of shares of Parent Common Stock, if any, to be issued to each Seller
with respect to the Accelerated Earnout Payment (as defined in Exhibit C) pursuant to Exhibit C hereto, the average
closing sale price per share of Parent Common Stock as reported on the stock exchange which holds Parent’s primary listing
for the five (5) consecutive trading days ending on the date that is one trading day immediately preceding the date of the occurrence
of a Change in Control (as defined in Exhibit C); and

 

 

 

 

    	 	8	 

     

    

 

(c)              
with respect to the determination of a number of shares of Parent Common Stock, if any, to be issued to each Seller
with respect to any Earnout Payment (as defined in Exhibit C) pursuant to Exhibit C hereto (other than the Accelerated
Earnout Payment), the average between (i) the average closing sale price per share of Parent Common Stock as reported on the stock
exchange which holds Parent’s primary listing for the five (5) consecutive trading days ending on the date that is one trading
day immediately preceding the last day of each applicable twelve (12)-month period during the Earnout Period and (ii) the average
closing sale price per share of Parent Common Stock as reported on the stock exchange which holds Parent’s primary listing
for the five (5) consecutive trading days ending on the date that is one trading day immediately preceding the first (1st)
day on which the applicable Earnout Statement (as defined in Exhibit C) becomes final and binding on the Parties as provided
in Exhibit C hereto, in each case as adjusted as appropriate to reflect any stock splits, stock dividends, combinations,
reorganizations, reclassifications or similar events).

 

“Personal
Information” means (a) any information that identifies, relates to, describes, is reasonably capable of being associated
with, or could reasonably be linked, directly or indirectly to an identified or identifiable natural person or household, and (b)
“personally identifiable information,” “personal information”, “personal data”, or similar
terms as defined by the applicable Law.

 

“Permitted
Encumbrances” means, (a) except in the case of the Equity Interests, (i) Encumbrances for current period Taxes that are
not yet due and payable, (ii) Encumbrances of carriers, warehousemen, mechanics’ and materialmen and other like Encumbrances
arising in the Ordinary Course of Business that are not yet due and payable, (iii) easements, rights of way, minor title imperfections
and restrictions, zoning ordinances and other similar encumbrances affecting the Real Property and which do not, individually or
in the aggregate, materially impair the value thereof or unreasonably restrict the use thereof in the Ordinary Course of Business,
(iv) landlord’s liens and similar Encumbrances in favor of lessors arising under or in connection with the Real Property
Leases and securing amounts that are not yet due and payable and (v) Encumbrances that will be removed prior to or in connection
with the Closing, (b) in the case of the Equity Interests, (i) Encumbrances set forth in the Companies’ respective Organizational
Documents and (ii) Encumbrances imposed by federal, state or provincial securities Laws, and (c) Encumbrances related to the
TD Bank Loan.

 

“Person”
means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company,
joint venture, estate, trust, association, organization, labor union, Governmental Entity or other entity.

 

“Plan”
means each plan, fund, contract, program and arrangement (whether or not it is written, formal, funded or insured) for the benefit
of present or former employees, consultants or directors or any spouses or dependents of such individuals, including those intended
to provide (a) medical, surgical, health care, hospitalization, dental, vision, workers’ compensation, life insurance, death,
disability, legal services, severance, sickness or accident benefits (whether or not defined in Section 3(1) of ERISA), (b) pension,
profit sharing, equity compensation, retirement, supplemental retirement or deferred compensation benefits (whether or not tax
qualified and whether or not defined in Section 3(2) of ERISA) or (c) equity-based compensation, salary continuation, unemployment,
supplemental unemployment, severance, termination pay, retention, change-in-control, fringe, vacation or holiday benefits (whether
or not defined in Section 3(3) of ERISA), and any employment or consulting agreement, in each case, (i) that is sponsored, maintained,
contributed to or required to be contributed to by any Company or any of its ERISA Affiliates, (ii) that any Company or any of
its ERISA Affiliates has committed to implement, establish, adopt or contribute to in the future or (iii) with respect to which
any Company or any of its ERISA Affiliates has or could reasonably be expected to have any direct or indirect liability, whether
absolute, contingent or otherwise.

 

 

 

 

    	 	9	 

     

    

 

“Positive
Adjustment Amount” has the meaning set forth in Section 2.3(i).

 

“PPP”
has the meaning set forth in the definition of PPP Loan.

 

“PPP Lender”
means JPMorgan Chase Bank, N.A.

 

“PPP Loan”
means ChizComm US’s Paycheck Protection Program (“PPP”) loan under the CARES Act in the principal amount
of $347,276 evidenced by that certain promissory note payable to the PPP Lender, dated April 13, 2020.

 

“Pre-Closing
Date Tax Period” means any Tax period ending on or before the Closing Date.

 

“Pro Rata
Share” means, with respect to each Seller, the applicable amounts (expressed as a percentage) by Company set forth next
to such Seller’s name on Exhibit B in the column titled “Pro Rata Share”.

 

“Purchase
Price” has the meaning set forth in Section 2.2(a).

 

“Real Property”
means Leased Real Property and other real property, used, occupied, operated or otherwise held by any Company, and any land, building,
structure, improvements and fixtures located thereon and easements and other rights and interests appurtenant thereto.

 

“Real Property
Lease” means any lease, sublease, license, or similar occupancy agreement, together with any amendments, modifications,
extensions, renewals, guaranties, side letters or other agreements related thereto, pursuant to which any Company leases, uses,
occupies, operates or otherwise holds any Real Property.

 

“Releasee”
has the meaning set forth in Section 13.17.

 

“Remedies
Exception,” when used with respect to any Person, means performance of such Person’s obligations except to the
extent enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the
enforcement of creditors’ rights generally or by general equitable principles.

 

“Required
Consents” has the meaning set forth in Section 2.5(e).

 

“Retained
Liabilities” means (a) all Seller Taxes and (b) those matters described on Exhibit A.

 

 

 

 

 

    	 	10	 

     

    

 

“Review Period”
has the meaning assigned in Section 2.3(e).

 

“SBA”
means the Small Business Administration.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

“Sellers”
has the meaning set forth in the Preamble of this Agreement.

 

“Seller Indemnified
Parties” has the meaning set forth in Section 10.2(a).

 

“Seller Liability
Determination” means a determination of Sellers’ liability for and the amount of a Buyer Loss (i) pursuant to the
procedures set forth in Section 10.1(d), (ii) by agreement between Buyer and Sellers or (iii) by Court Direction.

 

“Seller Losses”
has the meaning set forth in Section 10.2(a).

 

“Seller Taxes”
means any and all Taxes (a) imposed on or with respect to any Seller; (b) imposed on any Company or for which any Company may otherwise
be liable for any Pre-Closing Date Tax Period and for the portion of any Straddle Period ending on the Closing Date (determined
in accordance with Section 12.1(c)); (c) of any Consolidated Group (or any member thereof, other than any Company) of which
any Company (or any predecessor thereof) is or was a member on or prior to the Closing Date by reason of Treasury Regulation §
1.1502-6(a) or any analogous or similar foreign, state or local law; (d) of any other Person for which any Company is or has been
liable as a transferee or successor, by contract or otherwise resulting from events, transactions or relationships occurring or
existing prior to the Closing; (e) that are social security, Medicare, unemployment or other employment or withholding Taxes, including
the employer portion thereof, owed as a result of any payments made to any Seller pursuant to this Agreement; and (f) that constitute
50% of Transfer Taxes.

 

“Stock Consideration”
has the meaning set forth in Section 2.2(a)(ii).

 

“Straddle
Period” means any Tax period beginning on or before and ending after the Closing Date.

 

“Statement
of Objections” has the meaning assigned in Section 2.3(f).

 

“Subscription
Agreements” has the meaning set forth in Section 2.5(i).

 

“Subsidiary”
or “Subsidiaries” means any Person in which any Ownership Interest is owned, directly or indirectly, by another
Person.

 

“Suit for
Temporary Relief” has the meaning assigned in Section 13.11.

 

“Target Closing
Date” has the meaning set forth in Section 2.4.

 

 

 

 

 

    	 	11	 

     

    

 

“Tax”
or “Taxes” means (a) any taxes, assessments, fees, unclaimed property and escheat obligations and other governmental
charges imposed by any Governmental Entity, including income, profits, capital, gross receipts, net proceeds, alternative or add
on minimum, ad valorem, value added, turnover, sales, use, property, personal property (tangible and intangible), environmental,
stamp, leasing, lease, user, excise, duty, franchise, capital stock, transfer, registration, license, withholding, social security
(or similar), government pension, unemployment, disability, payroll, employment, employer health, social contributions, fuel, highway
use, excess profits, occupational, premium, windfall profit, severance, estimated, or other charge of any kind whatsoever, including
any interest, penalty, or addition thereto, whether disputed or not; and (b) any liability in respect of any item described in
clause (a) above, that arises by reason of a Contract, the assumption of a Contract, transferee or successor liability,
operation of Law (including as a result of being a member of a Consolidated Group for any period) or otherwise.

 

“Tax Act”
means the Income Tax Act (Canada), as amended, supplemented or restated from time to time.

 

“Tax Proceeding”
has the meaning set forth in Section 12.2.

 

“Tax Returns”
means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, whether or not filed
or required to be filed with a Taxing Authority, including any schedule or attachment thereto and any amendment thereof.

 

“Taxing Authority”
means, with respect to any Tax, the Governmental Entity or political subdivision thereof that imposes such Tax, and the agency
(if any) charged with the collection of such Tax for such entity or subdivision, including any Governmental Entity or agency that
imposes, or is charged with collecting, social security or similar charges or premiums.

 

“TD Bank Loan”
means ChizComm Canada’s business loan in the principal amount of $200,000 evidenced by that certain Credit Agreement, dated
September 9, 2015, by and between ChizComm Canada and The Toronto-Dominion Bank.

 

“Term Sheet”
means that certain Letter, dated November 15, 2020, between Parent, ChizComm Canada and ChizComm US.

 

“Third Party
Action” has the meaning set forth in Section 10.3(a).

 

“Third Party
Claim Notice” has the meaning set forth in Section 10.3(a).

 

“Transaction
Documents” means this Agreement, the Employment Agreements, the Escrow Agreement, the Subscription Agreements and any
other agreement, exhibit, document and instrument contemplated by this Agreement.

 

“Transaction
Expenses” means all fees and expenses that have been incurred by Sellers or any Company in connection with the transactions
contemplated by this Agreement (including (a) all brokers’ or finders’ fees, (b) all fees and expenses associated with
obtaining necessary waivers, consents or approvals of any Person, (c) all fees and expenses associated with obtaining the release
and termination of any Encumbrances, (d) all sale, change-of-control, “stay-around,” retention, severance or similar
bonuses or payments to current or former directors, managers, officers, employees or other services providers of any of the Companies
paid or payable as a result of or in connection with the transactions contemplated by this Agreement and the Companies’ portion
of any payroll, social insurance, or other Taxes thereon and (e) 50% of all escrow fees and expenses payable to the Escrow Agent
pursuant to Section 11.3 hereof and the Escrow Agreement), in each case, that are unpaid as of the Closing, including legal,
accounting and consulting fees and expenses and other fees and expenses incurred in negotiating, executing and delivering this
Agreement and the other Transaction Documents and the consummation of the transactions contemplated herein and therein.

 

 

 

 

    	 	12	 

     

    

 

“Transfer
Agent” means VStock Transfer, LLC, or any successor thereto.

 

“Transfer
Taxes” means any and all transfer, sales, use, excise, goods and services, stock, conveyance, registration, securities
transactions, real estate or land transfer, stamp, documentary, notarial, recording, permit, license, authorization and similar
Taxes imposed on the sale of the Equity Interests pursuant to this Agreement.

 

“Treasury
Regulations” means the final or temporary regulations promulgated under the Code.

 

“Trustees”
has the meaning set forth in the Preamble of this Agreement.

 

“US Sub”
has the meaning set forth in the Preamble of this Agreement.

 

“WARN Act”
means the Worker Adjustment and Retraining Notification Act and any similar federal, state, provincial or local Law relating to
plant closings, mass layoffs, or employment losses.

 

“Welfare Benefits”
means the benefits provided under a Plan that is an “employee welfare benefit plan” or “welfare plan” within
the meaning of Section 3(1) of ERISA, whether or not ERISA applies to the Plan.

 

“Wishing Thumbelina”
has the meaning set forth in the Preamble of this Agreement.

 

II.               
Purchase and Sale of Equity Interests

 

2.1             
Purchase and Sale. On the terms and subject to the conditions set forth in this Agreement, Sellers agree to sell,
transfer, assign and deliver their respective Equity Interests, free and clear of any and all Encumbrances (other than Permitted
Encumbrances), to Buyer, and Buyer agrees to purchase the Equity Interests from Sellers.

 

2.2             
Consideration.

 

(a)              
Purchase Price. The aggregate consideration (the “Purchase Price”) to be paid or issued
by Buyer to Sellers or their designees for the Equity Interests shall consist of:

 

(i)               an amount in cash equal to $8,500,000 (the “Cash Consideration”);

 

 

 

 

    	 	13	 

     

    

 

(ii)             
a number of shares of Parent Common Stock equal to (A) $3,500,000, divided by (B) the Per Share Value, issued
to Sellers pursuant to this Agreement and the Subscription Agreements (the “Stock Consideration” and together
with the Cash Consideration, the “Closing Consideration”),

 

as adjusted in accordance
with Section 2.3; provided, that all such adjustments to the Closing Consideration at the Closing shall be made solely
by adjusting the Cash Consideration and all such adjustments to the Closing Consideration after the Closing shall be made pursuant
to Section 2.3(i) and Section 2.3(j), as applicable; and

 

(iii)           
the Earnout Payments as provided in Exhibit C (if any), which Earnout Payments are intended to reflect the
portion of the goodwill value that the Parties cannot accurately value as of the Effective Date.

 

(b)              
Allocation. The Purchase Price, as adjusted in accordance with Section 2.3, shall be allocated 50%
to the Ownership Interests in ChizComm US and 50% to the Ownership Interests in ChizComm Canada.

 

(c)              
Withholding. Buyer and its Affiliates shall be entitled to deduct and withhold from any amounts otherwise
payable or deliverable to any Seller or Affiliate thereof (and Sellers and their Affiliates shall indemnify, defend and hold harmless
Buyer and its Affiliates against) such amounts as may be required to be deducted or withheld therefrom under Law. To the extent
such amounts are so deducted or withheld, such amounts shall be treated for all purposes as having been paid to the Person to whom
such amounts would otherwise have been paid absent such deduction or withholding.

 

2.3             
Adjustments to Closing Consideration.

 

(a)              
For purposes of this Agreement, the “Adjusted Closing Consideration” means an amount equal to
the result of, without duplication: (i) the Closing Consideration, minus (ii) the amount of any Company Indebtedness outstanding
as of 11:59 p.m. on the day prior to the Effective Date and not paid on the Closing Date, minus (iii) the amount of any
unpaid Transaction Expenses (whether incurred before or after the Effective Date), plus (iv) the amount of Net Assets (if
positive), as applicable, as of 11:59 p.m. on the day prior to the Effective Date, plus (v) the amount of any Cash on Hand
(if any) as of 11:59 p.m. on the day prior to the Effective Date.

 

(b)              
No less than three (3) Business Days prior to the Closing Date, Sellers shall deliver or cause to be delivered to
Buyer a statement (the “Estimated Closing Statement”) (i) setting forth Sellers’ estimate of the Adjusted
Closing Consideration (the “Estimated Adjusted Closing Consideration”), which estimate shall be prepared by
Sellers in good faith based upon the books and records of Sellers and the Companies and shall include an estimate of: (A) the amount
of each component item of Company Indebtedness and total Company Indebtedness outstanding as of 11:59 p.m. on the day prior to
the Effective Date, (B) the amount of each material component item of Transaction Expenses and total Transaction Expenses that
are unpaid as of the Closing Date, (C) the amount of Net Assets (if positive), as applicable, as of 11:59 p.m. on the day prior
to the Effective Date, and (D) the amount of Cash on Hand (if any) as of 11:59 p.m. on the day prior to the Effective Date, in
each case, accompanied by reasonably detailed information and supporting documentation showing Sellers’ calculation of the
Estimated Adjusted Closing Consideration and (ii) accompanied by (x) an estimated balance sheet of ChizComm US as of 11:59 p.m.
on the day prior to the Effective Date and (y) an estimated balance sheet of ChizComm Canada as of 11:59 p.m. on the day prior
to the Effective Date, in each case, prepared in accordance with GAAP (such balance sheets, collectively, the “Estimated
Balance Sheet”).

 

 

 

 

 

    	 	14	 

     

    

 

(c)              
Buyer shall have two (2) Business Days to review the Estimated Closing Statement and the resulting Estimated Adjusted
Closing Consideration. If Buyer objects to any item of the Estimated Closing Statement or the resulting Estimated Adjusted Closing
Consideration, Buyer and Sellers shall seek to resolve such objection in a mutually agreeable manner and to agree upon all items
of the Estimated Closing Statement and the resulting Estimated Adjusted Closing Consideration prior to Closing. If Buyer does not
so object or if Buyer and Sellers are unable to agree prior to Closing on all items of the Estimated Closing Statement, for purposes
of the Closing the Adjusted Closing Consideration shall be deemed to equal the Estimated Adjusted Closing Consideration as set
forth in the Estimated Closing Statement delivered by Sellers pursuant to Section 2.3(b) (as adjusted to reflect any adjustments
agreed to by the Parties in writing as set forth above), subject to post-Closing adjustments as set forth below.

 

(d)              
No later than sixty (60) days after the Closing Date, Sellers shall prepare, or cause their independent public accountants
(the “Accountants”) to prepare, and deliver to Buyer a statement (the “Closing Statement”)
(i) setting forth Sellers’ proposed calculation of the actual Adjusted Closing Consideration, including Sellers’ proposed
calculation of: (A) the actual amount of each component item of Company Indebtedness and actual total Company Indebtedness outstanding
as of 11:59 p.m. on the day prior to the Effective Date if not satisfied or paid on the Closing Date, (B) the actual amount of
each material component item of Transaction Expenses and actual total unpaid Transaction Expenses as of the Closing Date, (C) the
actual amount of Net Assets (if positive), as applicable, as of 11:59 p.m. on the day prior to the Effective Date, and (D) the
actual amount of Cash on Hand as of 11:59 p.m. on the day prior to the Effective Date, in each case, accompanied by reasonably
detailed information and supporting documentation showing Sellers’ calculation of the actual Adjusted Closing Consideration
and (ii) accompanied by (x) the actual balance sheet of ChizComm US as of 11:59 p.m. on the day prior to the Effective Date and
(y) the actual balance sheet of ChizComm Canada as of 11:59 p.m. on the day prior to the Effective Date, in each case, prepared
in accordance with GAAP (such balance sheets, collectively, the “Actual Balance Sheet”). Buyer shall provide
to Sellers and the Accountants full access at all reasonable times to any books, records and other materials in the possession
or reasonable control of Buyer that Sellers or the Accountants may reasonably request in order to prepare the Closing Statement
and the Actual Balance Sheet or to respond to or defend any Statement of Objections (as defined below). Each of Buyer, on the one
hand, and Sellers, on the other hand, will pay half of the fees and expenses of the Accountants in performing the services provided
for in this Section 2.3(d).

 

(e)              
For the thirty (30)-day period immediately following the date on which Buyer receives the Closing Statement (the
“Review Period”), Sellers will provide Buyer full access at all reasonable times to any books and records, facilities,
personnel or other materials in the possession or reasonable control of Sellers and to any personnel and work papers of the Accountants,
in each case that Buyer reasonably requests in order to review and confirm the accuracy of the Closing Statement and the Actual
Balance Sheet or to prepare or defend any Statement of Objections.

 

 

 

 

 

    	 	15	 

     

    

 

(f)               
If Buyer believes that the Closing Statement or the Actual Balance Sheet has not been prepared as required by this
Agreement or does not accurately reflect the information and supporting documentation provided by Sellers, Buyer may deliver to
Sellers on or before the last day of the Review Period a written statement setting forth in reasonable detail Buyer’s objections
to the Closing Statement or the Actual Balance Sheet and impact of such objections on the resulting Adjusted Closing Consideration
(the “Statement of Objections”). If Buyer fails to deliver the Statement of Objections to Sellers during the
Review Period, the Closing Statement and the Actual Balance Sheet shall be deemed to have been accepted by Buyer and shall be final
and binding on the Parties, and the components of the Adjusted Closing Consideration set forth in the Closing Statement shall be
used in computing the Positive Adjustment Amount and/or the Negative Adjustment Amount, as applicable. If Buyer delivers the Statement
of Objections to Sellers during the Review Period, the Parties shall negotiate in good faith to resolve such objections. If the
Parties agree in writing to the resolution of all such objections, the Closing Statement, as adjusted to reflect such resolutions,
shall be final and binding on the Parties, and the components of the Adjusted Closing Consideration set forth in such Closing Statement
shall be used in computing the Positive Adjustment Amount and/or the Negative Adjustment Amount, as applicable.

 

(g)              
If the Parties fail to agree in writing to the resolution of all the objections set forth in the Statement of Objections
within the thirty (30)-day period immediately following the date on which the Statement of Objections was delivered to Sellers,
then any objections remaining in dispute may be submitted by Sellers or Buyer for resolution to a regionally recognized accounting
firm with no material relationship with any Party selected by agreement among the Parties (or if the Parties are unable to select
such accounting firm within fifteen (15) days of the election by Sellers or Buyer to refer the dispute to a regionally recognized
accounting firm, Sellers or Buyer may thereafter request that the New York, New York office of the American Arbitration Association
(the “AAA”) make such selection (as applicable, the firm selected by the Parties or the AAA is referred to as
the “Accounting Expert”). Within fifteen (15) days of such submission, each Party shall submit, in writing,
to the Accounting Expert and the other Parties a statement of the position of such Party as to (i) the components of the Adjusted
Closing Consideration set forth in the Closing Statement, (ii) the Actual Balance Sheet and (iii) the resulting Adjusted Closing
Consideration. The Accounting Expert shall resolve the remaining objections acting as an expert in accounting and not as an arbitrator
and adjust the Closing Statement and the Actual Balance Sheet to reflect such resolutions and any other adjustments previously
agreed by the Parties in writing (collectively, the “Adjustments”). Each Party will, and will cause the Affiliates
of such Party to, make readily available to the Accounting Expert all books and records, work papers, personnel and other materials
within the possession or control of such Party or such Affiliates that the Accounting Expert shall reasonably request in order
to resolve the remaining objections. In the event any remaining objections are submitted for resolution to an Accounting Expert
pursuant to this Section 2.3(g), the non-prevailing Party, as determined by the Accounting Expert, agrees to bear the
fees and expenses of the Accounting Expert and to reimburse the prevailing Party for all costs and expenses, including attorneys’
fees, incurred by the prevailing Party in connection with such dispute.

 

 

 

 

 

 

    	 	16	 

     

    

 

(h)              
The Accounting Expert shall resolve all objections submitted to it and shall adjust the Closing Statement and the
Actual Balance Sheet to reflect the Adjustments as soon as practicable and in no event later than forty-five (45) days after the
day on which it is retained to provide such services (or such other time as the Parties hereto shall agree in writing). The Accounting
Expert shall be authorized to select only the position of either Buyer, on the one hand, or Sellers, on the other hand, in each
case, as presented by the applicable Party or Parties in a statement delivered to the Accounting Expert and the other Parties in
connection with the applicable dispute pursuant to Section 2.3(g). The Accounting Expert’s resolution of such objections
and Adjustments shall be made in accordance with the provisions of this Agreement and GAAP, shall be based solely on written materials
submitted by Buyer and Sellers and on the definitions of “Adjusted Closing Consideration,” “Indebtedness,”
“Company Indebtedness,” “Transaction Expenses,” “Cash on Hand” and “Net
Assets” (and related definitions), and shall be final and binding on the Parties (absent manifest error), and the components
of the Adjusted Closing Consideration set forth in the Closing Statement, as adjusted by the Adjustments shall be used in computing
the Positive Adjustment Amount and/or the Negative Adjustment Amount, as applicable.

 

(i)                
Within ten (10) Business Days after the first day on which the Closing Statement (including any adjustments thereto)
becomes final and binding on the Parties as provided above, if the Adjusted Closing Consideration as finally determined pursuant
to this Section 2.3 (the “Final Adjusted Closing Consideration”) is greater than the Estimated Adjusted
Closing Consideration (the amount of such difference being the “Positive Adjustment Amount”), then Buyer shall
deliver, or cause to be delivered, to Sellers or their designees the Positive Adjustment Amount by wire transfer of immediately
available funds to the account or accounts designated in writing by Sellers.

 

(j)                
If the amount of Net Assets reflected in the Final Adjusted Closing Consideration is less than the amount of Net
Assets reflected in the Estimated Adjusted Closing Consideration, there shall be no adjustment to the Purchase Price. If the amount
of Company Indebtedness and/or Transaction Expenses reflected in the Final Adjusted Closing Consideration is greater than the amount
of Company Indebtedness and/or Transaction Expenses reflected in the Estimated Adjusted Closing Consideration (the amount of such
difference being the “Negative Adjustment Amount”), then, without duplication, within ten (10) Business Days
after the first day on which the Closing Statement (including any adjustments thereto) becomes final and binding on the Parties
as provided above, Sellers shall deliver, or cause to be delivered, to Buyer the Negative Adjustment Amount by wire transfer of
immediately available funds to the account or accounts designated in writing by Buyer.

 

2.4             
The Closing. Subject to the conditions set forth in this Agreement, the closing of the transactions contemplated
by this Agreement (the “Closing”) will take place by remote electronic Closing at the offices of Vinson &
Elkins L.L.P. in Dallas, Texas at 2001 Ross Avenue, Suite 3900, Dallas, TX 75201-2975 at 11:00 a.m. Dallas time (or at such other
place and on such other time as is mutually agreeable to Buyer and Sellers) on February 1, 2021 (the “Target Closing Date”),
or if all conditions set forth in Section 8.1 or Section 8.2 to be satisfied prior to Closing have not yet been satisfied
or waived in writing by the applicable Party(ies) prior to the Target Closing Date, on the date that is three (3) Business Days
after the satisfaction or waiver in writing by the applicable Party(ies) of all conditions set forth in Section 8.1 or Section
8.2 (other than those conditions that by their nature can only be satisfied at the Closing but subject to all conditions in
Section 8.1 and Section 8.2 having been satisfied or waived at the Closing), or on such other date as is mutually
agreeable to Buyer and Sellers. The date on which the Closing occurs is referred to herein as the “Closing Date”.
All actions to be taken by the Parties in connection with consummation of the transactions contemplated by this Agreement, and
all certificates, instruments and other documents required to effect the transactions contemplated by this Agreement, will be in
form and substance reasonably satisfactory to the other Parties. All items delivered by the Parties at the Closing (including pursuant
to Sections 2.5 and 2.6) will be deemed to have been delivered simultaneously, and no items will be deemed delivered
or waived until all have been delivered or waived.

 

 

 

 

 

    	 	17	 

     

    

 

2.5             
Sellers’ and the Companies’ Deliveries and Actions at the Closing. Subject to the conditions set forth
in this Agreement, on the Closing Date, Sellers shall, and shall cause the Companies (as applicable) to:

 

(a)              
deliver to US Sub (i) certificates representing all of the Equity Interests in ChizComm US and (ii) one or more duly
executed stock powers in form and substance reasonably acceptable to Buyer, transferring and assigning such Equity Interests to
US Sub;

 

(b)              
deliver to Canada Sub (i) certificates representing all of the Equity Interests in ChizComm Canada and (ii) one or
more duly executed assignments in form and substance reasonably acceptable to Buyer, transferring and assigning such Equity Interests
to Canada Sub;

 

(c)              
deliver to Buyer a certificate executed by an officer or authorized representative of each Company, dated the Closing
Date, certifying as to the Organizational Documents of such Company;

 

(d)              
deliver to Buyer a certificate to the effect that each of the conditions set forth in Sections 8.2(a) through
8.2(d), inclusive, have been satisfied;

 

(e)              
deliver to Buyer the Consents and Governmental Authorizations set forth on Schedule 2.5(e) (collectively,
the “Required Consents”), in each case, in form and substance reasonably satisfactory to Buyer;

 

(f)               
deliver to Buyer employment agreements, effective as of the Closing, by and between (i) Harold Aaron Chizick and
ChizComm Canada, (ii) Jennifer Mara Chizick and ChizComm Canada, (iii) Donna McNeil and ChizComm Canada and (vi) Kathleen Campisano
and ChizComm US, in each case, duly executed by the parties thereto, in form and substance reasonably satisfactory to Buyer (collectively,
the “Employment Agreements”);

 

(g)              
deliver to Buyer and the Escrow Agent an escrow agreement, effective as of the Closing Date, by and among Parent,
Sellers and the Escrow Agent, in form and substance reasonably satisfactory to Buyer (the “Escrow Agreement”),
duly executed by Sellers;

 

(h)              
deliver to Buyer evidence reasonably satisfactory to Buyer that the Affiliated Transactions on Schedule 2.5(h),
if any, have been terminated;

 

 

 

 

    	 	18	 

     

    

 

(i)                
deliver to Buyer subscription agreements, effective as of the Closing Date, by and between Parent and each Seller,
in each case, in form and substance reasonably satisfactory to Buyer (the “Subscription Agreements”), duly executed
by Sellers;

 

(j)                
deliver to Buyer, in a form reasonably acceptable to Buyer, a properly executed certification that Equity Interests
in ChizComm US are not “United States real property interests” in accordance with Treasury Regulation Section 1.1445-2(c)(3),
together with a notice to the IRS (which shall be filed by Buyer with the IRS at or following the Closing) in accordance with the
provisions of Section 1.897-2(h)(2) of the Treasury Regulations;

 

(k)              
deliver to Buyer documentation evidencing the payment in full of all amounts, fees, payments and charges due and
payable or that may become due and payable under the Beacon Media Transaction Documents with respect to the calendar year ending
on December 31, 2020; and

 

(l)                
deliver to Buyer such other documents, instruments and certificates as Buyer or its counsel reasonably deems necessary
to consummate the transactions contemplated by this Agreement.

 

2.6       
Buyer’s Deliveries and Actions at the Closing. Subject to the conditions set forth in this Agreement, on the
Closing Date, Buyer shall:

 

(a)              
cause the Transfer Agent to deliver to each Seller a number of shares of Parent Common Stock in book-entry form representing
such Seller’s Pro Rata Share of (i) the Stock Consideration (as adjusted in accordance with Section 2.3) minus
(ii) the Escrowed Shares;

 

(b)              
deliver to each Seller or its designees its Pro Rata Share of the Cash Consideration by wire transfer of immediately
available funds to the account designated by such Seller;

 

(c)              
deliver to Sellers and the Escrow Agent the Escrow Agreement, duly executed by Parent and the Escrow Agent;

 

(d)              
deliver to Sellers the Subscription Agreements, duly executed by Parent;

 

(e)              
deliver the Employment Agreements, duly executed by the employer; and

 

(f)               
cause the Transfer Agent to issue in book-entry form, in the name of the Escrow Agent (solely in its capacity as
Escrow Agent for Parent and Sellers), the Escrowed Shares.

 

III.            
Sellers’ Representations and Warranties

 

Each Seller represents
and warrants to Buyer that the statements contained in this Article III are true, correct and complete as of the Closing
Date. The Schedules referred to in this Article III will be arranged in paragraphs corresponding to the lettered and numbered
paragraphs contained in this Article III.

 

 

 

 

    	 	19	 

     

    

 

3.1             
Title to the Equity Interests. Sellers own, of record and beneficially, the Equity Interests, free and clear of any
and all Encumbrances (other than Permitted Encumbrances set forth in clause (b) of the definition of Permitted Encumbrances)
and that there are no other agreements entitling any other party to any interest in the Equity Interests. At Closing, Buyer will
obtain good and valid title to the Equity Interests, free and clear of any and all Encumbrances (other than Permitted Encumbrances
set forth in clause (b) of the definition of Permitted Encumbrances) and that there are no other agreements entitling any
other party to any interest in the Equity Interests.

 

3.2             
Valid and Binding Agreement. Each Seller has full legal capacity to enter into this Agreement and each other Transaction
Document to which such Seller is or will be a party and to consummate the transactions contemplated hereby and thereby. This Agreement
and each other Transaction Document to which such Seller is or will be a party have been or will be duly executed and delivered
by such Seller and, assuming this Agreement and such other Transaction Document constitute the valid and binding obligations of
the other parties hereto and thereto, constitute or will, upon such Seller’s execution and delivery, constitute the valid
and binding obligation of such Seller, enforceable against it in accordance with its terms, subject to the Remedies Exception.
Each Seller has the absolute right, power and capacity to sell, assign and deliver the Equity Interests to Buyer, free and clear
of any Encumbrances (other than Permitted Encumbrances set forth in clause (b) of the definition of Permitted Encumbrances).

 

3.3             
No Breach; Consents. The execution, delivery and performance of this Agreement and each other Transaction Document
to which such Seller is or will be a party does not and will not (a) violate or conflict with any Law, Order or Governmental Authorization;
(b) except as set forth on Schedule 3.3(b), conflict with, result in any breach of any of the provisions of, constitute
a default (or any event which would, with the passage of time or the giving of notice or both, constitute a default) under, result
in a violation of, increase the burdens under, result in the termination, amendment, suspension, modification, abandonment or acceleration
of payment (or any right to terminate) or require a Consent under any Contract or Governmental Authorization that is either binding
upon or enforceable against such Seller; (c) result in the creation of any Encumbrance upon the Equity Interests or any of the
assets of the Companies; or (d) require any Governmental Authorization.

 

3.4             
No Actions and Compliance. There is no Litigation with respect to or affecting any Seller or the Equity Interests,
pending or threatened, at law or equity or before or by any Government Entity or any arbitrator or arbitration panel or any mediator
or mediation panel. No Seller is in default under Canadian Securities Laws.

 

3.5             
Brokerage. No Person is or will be entitled to receive any brokerage commission, finder’s fees, fee for financial
advisory services or similar compensation in connection with the transactions contemplated by this Agreement based on any Contract
made by or on behalf of any Seller or any Company for which Buyer or any Company is or could become liable or obligated.

 

3.6             
Wishing Thumbelina. Wishing Thumbelina is a corporation duly organized, validly existing and in good standing under
the Laws of the Province of Ontario, with all necessary power and authority to execute, deliver and perform this Agreement. Wishing
Thumbelina has never engaged in any material activities, owned any material assets, entered into any material Contracts, had any
employees or independent contractors, or had any material liabilities or material obligations other than the ownership of the Ownership
Interests in ChizComm US and has never had a direct or indirect Ownership Interest in any other Person.

 

 

 

    	 	20	 

     

    

 

3.7             
The Trustees. The Chizsix (2019) Family Trust is a trust duly settled and validly existing under the Laws of the
Province of Ontario. The Trustees have all necessary power and authority to execute, deliver and perform this Agreement. The Trustees
and Jay Mark Sonshine are the only trustees of The Chizsix (2019) Family Trust.

 

IV.            
Representations and Warranties Regarding the Companies

 

Each Seller represents
and warrants to Buyer that the statements contained in this Article IV are true, correct and complete as of the Closing
Date. The Schedules referred to in this Article IV will be arranged in paragraphs corresponding to the lettered and numbered
paragraphs contained in this Article IV.

 

4.1             
Formation; Power and Authority; Valid and Binding. Each Company is a corporation duly formed, validly existing and
in good standing under the laws of the state or jurisdiction of its formation, with full corporate power and authority to conduct
its business as such is now being conducted and is currently proposed to be conducted. Schedule 4.1 lists the date of formation
of each Company, each state, province or other jurisdiction in which each Company is duly qualified to do business as a foreign
corporation and the date of such qualification. Each Company is duly qualified to do business and in good standing in each state,
province or jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activity
conducted by it, require such qualification and where the failure to be qualified would result in a material liability to Buyer
or the Companies after the Closing. Each Company is in compliance in all material respects with the provisions of its Organizational
Documents.

 

4.2              No
Breach; Consents. Except as set forth on Schedule 4.2, the execution, delivery and performance of this Agreement and
each other Transaction Document to which any of the Companies is or will be a party does not and will not: (a) contravene any
provision of the Organizational Documents of the Companies; (b) violate or conflict with any Law, Order or Governmental Authorization;
(c) conflict with, result in any breach of any of the provisions of, constitute a default (or any event which would, with the
passage of time or the giving of notice or both, constitute a default) under, result in a violation of, increase the burdens under,
result in the termination, amendment, suspension, modification, abandonment or acceleration of payment (or any right to terminate)
or require a Consent under any Contract or Governmental Authorization that is either binding upon or enforceable against any Company;
(d) result in the creation of any Encumbrance upon any Company or any of the assets of any Company; or (e) require any Governmental
Authorization.

 

4.3             
Capitalization.

 

(a)              
Schedule 4.3 sets forth all of the authorized, issued and outstanding Ownership Interests in each Company
and the owners (of record and beneficial) of such Ownership Interests. All of the Ownership Interests of the Companies have been
duly authorized and validly issued and are fully paid (to the extent required under the Organizational Documents of the applicable
Company) and non-assessable and were not issued in violation of, and, except as identified in Schedule 4.3, are not subject
to, any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any
provision of applicable Law, the Organizational Documents of the applicable Company or any Contract to which such Company is or
was a party or by which it is or was otherwise bound.

 

 

 

 

    	 	21	 

     

    

 

(b)              
Except as set forth on Schedule 4.3, there are no Contracts (including options, warrants, calls and preemptive
rights) obligating any Company to (i) issue, sell, pledge, dispose of or encumber any Ownership Interests in such Company
or any securities convertible, exercisable or exchangeable into Ownership Interests in such Company, (ii) redeem, purchase or acquire
in any manner any Ownership Interests in such Company or any securities that are convertible, exercisable or exchangeable into
any Ownership Interests in such Company or (iii) make any dividend or distribution of any kind with respect to the Ownership Interests
in such Company (or to allow any participation in the profits or appreciation in value of such Company). Each Company is not a
party to any shareholder agreements, voting trusts, or other similar agreements with respect to the ownership or voting rights
of such Company.

 

(c)              
Each Company has delivered to Buyer true, complete and correct copies of its Organizational Documents (including
any amendments or modifications thereto).

 

4.4             
Subsidiaries.

 

(a)              
Except as set forth on Schedule 4.4, no Company has, or has ever had, any Subsidiaries or owns, or has ever
owned, any Ownership Interests in any other Person. There are no outstanding obligations of any Company to provide funds to or
make any investment (in either case, in the form of a loan, capital contribution, purchase of an Ownership Interest or otherwise)
in, any other Person.

 

(b)              
Kidsistr Productions Incorporated has never engaged in any activities, owned any assets, entered into any Contracts,
had any employees or independent contractors, or had any liabilities or obligations and has never had a direct or indirect Ownership
Interest in any other Person. Kidsistr Productions Incorporated is in the process of being dissolved, and on its dissolution, neither
Company will assume or become liable for any liabilities of Kidsistr Productions Incorporated whatsoever.

 

4.5             
Financial Statements.

 

(a)              
Set forth on Schedule 4.5(a) are true and complete copies of (i) the compiled balance sheet as of March 31,
2020, 2020 (the “Latest Balance Sheet Date”) of ChizComm US and the related statements of income, stockholders’
equity and cash flows for the twelve (12)-month period then ended and (ii) the compiled balance sheet as of the Latest Balance
Sheet Date of ChizComm Canada and the related statements of income, stockholders’ equity and cash flows for the twelve (12)-month
period then ended (such statements set forth in clauses (i) and (ii) above, collectively, the “Latest Financial Statements”).

 

 

 

 

    	 	22	 

     

    

 

(b)              
Set forth on Schedule 4.5(b) are true and complete copies of (i) the compiled balance sheet as of March 31,
2020 (the “Last Fiscal Year End”) of ChizComm US and the related statements of income, stockholders’ equity
and cash flows for the twelve (12)-month period then ended and (ii) the compiled balance sheet as of the Last Fiscal Year End of
ChizComm Canada and the related statements of income, stockholders’ equity and cash flows for the twelve (12)-month period
then ended (such statements set forth in clauses (i) and (ii) above, collectively, the “Annual Financial Statements”
and together with the Latest Financial Statements, the “Financial Statements”).

 

(c)              
The Financial Statements are presented in US dollars in the case of the Financial Statements of ChizComm US and in
Canadian dollars in the case of the Financial Statements of ChizComm Canada, are based upon the books and records of the Companies
and present fairly the financial position and results of operations of the Companies at the respective dates and for the respective
periods indicated in accordance with GAAP.

 

4.6             
Absence of Undisclosed Liabilities. Except as reflected or expressly reserved against in the Financial Statements
and except as set forth on Schedule 4.6, no Company has any liabilities or obligations (whether accrued, absolute, contingent,
unliquidated or otherwise, whether due or to become due, whether known or unknown, and regardless of when asserted), except liabilities
or obligations (a) that have arisen after the Latest Balance Sheet Date in the Ordinary Course of Business; or (b) incurred in
connection with the transactions contemplated by this Agreement and in accordance with this Agreement.

 

4.7             
Books and Records. The books of account and records of each Company are complete and correct in all material respects.

 

4.8             
Absence of Certain Developments. Except as set forth on Schedule 4.8, since the Last Fiscal Year End:

 

(a)              
no Seller nor any Company has sold, leased, transferred, assigned or otherwise conveyed any of the assets of any
Company, tangible or intangible, other than for a fair consideration in the Ordinary Course of Business;

 

(b)              
no Company has entered into any Contract (or series of related Contracts) involving more than $50,000 that is outside
the Ordinary Course of Business;

 

(c)               no
Person (including Sellers or any Company) has accelerated, suspended, terminated, modified, amended or canceled any Contract (or
series of related Contracts) involving more than $50,000 to which any Company is a party or by which it is bound;

 

(d)              
other than in the Ordinary Course of Business, no Encumbrance has been imposed on any asset of any Company;

 

(e)              
no Company has made any capital expenditure (or series of related capital expenditures) outside the Ordinary Course
of Business or made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other Person
(or series of related capital investments, loans or acquisitions);

 

 

 

    	 	23	 

     

    

 

(f)               
no Company has delayed, postponed or accelerated the payment of accounts payable or other liabilities or the receipt
of accounts receivable except in the Ordinary Course of Business;

 

(g)              
no Company has canceled, compromised, waived or released any material right or claim (or series of related rights
or claims) except in the Ordinary Course of Business;

 

(h)              
there has been no change made, or authorized to be made, in the Organizational Documents of any Company;

 

(i)                 no
Company has experienced any damage, destruction or loss (whether or not covered by insurance) in excess of $50,000 in the aggregate
to its assets;

 

(j)                 no
Company has made any loan to, or entered into any other transaction with, any Seller, any Business Employee or any Company’s
directors, officers, agents or independent contractors, or any Affiliate of the foregoing;

 

(k)              
no Company has made any change in accounting principles, policies or practices from those utilized in the preparation
of the Annual Financial Statements;

 

(l)                
to Sellers’ Knowledge, no complaint or investigation against any Company has been commenced by any Governmental
Entity and no other event has occurred which calls into question any Governmental Authorization necessary for such Company to conduct
its business and to own and operate such Company’s assets;

 

(m)              no Material Adverse Effect has occurred;

 

(n)               no
Company has received any notice from any customer, supplier, user, subscriber, vendor, Governmental Entity or any other Person,
the result of which could reasonably be expected to materially impact the business or operations of any of the Companies;

 

(o)              
no Company has issued, sold or otherwise disposed of any of its Ownership Interests, or granted any Ownership Interests,
including any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any of
its Ownership Interests;

 

(p)              
no Company has (i) made any settlement of or compromised any Tax liability, adopted, changed or revoked any Tax election
or Tax method of accounting, made any new Tax election or adopted any new Tax method of accounting; (ii) surrendered any right
to claim a refund of Taxes; (iii) consented to any extension or waiver of the limitation period applicable to any Tax claim or
assessment; (iv) amended any Tax Return or entered into any closing agreement related to Taxes; or (v) taken any other action that
would have the effect of increasing the Tax liability of any Company for any Tax period (or portion thereof) beginning after the
Closing Date;

 

(q)              
no Company has declared, set aside or paid any dividend or made any distribution with respect to its Ownership Interests
(whether in cash or in kind) or redeemed, purchased or otherwise acquired any of its Ownership Interests or split, combined or
reclassified any of its Ownership Interests;

 

 

 

 

    	 	24	 

     

    

 

(r)               
except as part of the requirements of the Closing, no Company has discharged or satisfied any Encumbrance or paid
any liability, other than current liabilities paid in the Ordinary Course of Business;

 

(s)               
except as required by applicable Law, no Company has adopted or terminated or made any amendment or modification
to any Plans;

 

(t)                
no Company has taken any action outside of the Ordinary Course of Business, except for actions explicitly permitted
or required by this Agreement; and

 

(u)              
no Seller nor any Company has committed or agreed (in writing or otherwise) to take any of the actions described
in this Section 4.8.

 

4.9             
Real Property and Assets.

 

(a)              
Schedule 4.9(a) is a true, correct and complete list of (i) each parcel or tract of Leased Real Property and
(ii) each Real Property Lease. None of the Companies owns, or has ever owned any real property. The Real Property constitutes all
of the real property leased, subleased, licensed, used, operated, occupied or otherwise held (whether or not occupied, and including
any leases or other occupancy agreements for which any Company remains liable) by any Company.

 

(b)              
There are no parties in possession of the Real Property other than the Companies, and, except as set forth on Schedule
4.9(b), none of the Real Property Leases have been assigned in whole or in part, nor has the Real Property (or any portion
thereof) been subleased. There is no default (or any event which would, with the passage of time or the giving of notice or both,
constitute a default) by any party under any Real Property Lease.

 

(c)              
The conduct of the business and operations of the Companies, as currently conducted, on or from the Real Property
is permitted, as a legally conforming use, under all applicable zoning, building and land use laws, ordinances and codes.

 

(d)               No
condemnation, expropriation, requisition (temporary or permanent), eminent domain or similar proceedings are currently pending
with respect to all or any portion of the Real Property, nor, to Sellers’ Knowledge, are any such proceedings threatened
or contemplated.

 

(e)              
Schedule 4.9(e) sets forth each Encumbrance (other than Permitted Encumbrances) on (i) the Real Property and
(ii) the equipment (including vehicles) and other tangible assets and properties (including Company IT Assets and office furniture)
used or held for use by any Company, located on its premises, or included in the Latest Financial Statements or acquired after
the date thereof (collectively with the Real Property, the “Assets”) and, except as set forth on Schedule
4.9(e), each Company has good and marketable title to, or a valid leasehold interest in, the Assets, free and clear of any
Encumbrances (other than Permitted Encumbrances).

 

(f)               
The Assets, taken as a whole (i) are adequate and suitable for their present and intended uses, and are in reasonably
good condition and repair, normal wear and tear excepted and (ii) are not in need of maintenance or repairs except for ordinary
and routine maintenance and repairs that are not material in nature or cost.

 

 

 

    	 	25	 

     

    

 

(g)              
The Assets are sufficient for the continued conduct of the business and operations of the Companies after the Closing
by Buyer and the Companies in substantially the same manner as conducted prior to the Closing and constitute all of the rights,
properties, and assets of every type and description, whether real or personal, tangible or intangible, necessary to conduct the
business and operations of the Companies as currently conducted.

 

(h)              
In the last twelve (12) months, no Real Property has been damaged by fire or other casualty.

 

4.10           Accounts
Receivable. All notes and accounts receivable of each Company are reflected properly on its books and records, are valid,
have arisen from bona fide transactions in the Ordinary Course of Business, and, to Sellers’ Knowledge, are not subject
to any defense or offset. All such notes and accounts receivable are, to Sellers’ Knowledge, collectible at the amounts
shown, subject to any allowance for uncollectibles reflected in the Financial Statements.

 

4.11            Taxes.

 

(a)              
Each Company has (i) timely filed (or has had timely filed on its behalf) all Tax Returns required to be filed by
or with respect to such Company and each such Tax Return is true, correct and complete in all material respects; (ii) timely and
properly paid (or has had paid on its behalf) in full all Taxes owed by such Company or for which such Company may be liable that
are or have become due; (iii) established on the Latest Financial Statements consistent with past practices, reserves that are
adequate for the payment of any Taxes not yet due and payable; and (iv) satisfied in full in all respects all Tax withholding and
deposit requirements imposed on or with respect to such Company.

 

(b)              
There are no Encumbrances for Taxes upon any asset of any Company, except for current period Taxes not yet due and
payable.

 

(c)              
There is no claim against any Company for any Taxes, and no assessment, deficiency, or adjustment has been proposed,
asserted or threatened with respect to any Taxes or Tax Returns of or with respect to any Company.

 

(d)              
No Tax audits, requests for information, proposals to assess, assessments, reassessments, actions, suits, investigations
or administrative or judicial proceedings are being conducted, pending or, to Sellers’ Knowledge, threatened with respect
to any Company, nor are any matters under discussion with any Governmental Entity relating to Taxes.

 

(e)              
No claim has been made by a Governmental Entity in a jurisdiction where any Company does not file a Tax Return that
such Company is or may be subject to taxation in such jurisdiction.

 

(f)               
There is not in effect any extension of time with respect to the due date for the filing of any Tax Return of or
with respect to any Company or any waiver or agreement for any extension of time for the assessment or payment of any Tax of or
with respect to any Company.

 

 

 

 

    	 	26	 

     

    

 

(g)              
None of the property of any Company is held in an arrangement that is a partnership for U.S. federal Tax purposes.

 

(h)              
No Company 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) beginning after the Closing Date as a result of any: (i) adjustment under either Section
481(a) or Section 482 of the Code (or any corresponding or similar provision of state, local or foreign Tax law) by reason of a
change in method of accounting or otherwise on or prior to the Closing Date for a taxable period ending on or prior to the Closing
Date; (ii) “closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of state,
local or foreign income Tax law) executed on or prior to the Closing Date; (iii) intercompany transaction or any excess loss account
described in Treasury Regulations under Code Section 1502 (or any corresponding or similar provision of state, local or foreign
income Tax law) entered into or created on or prior to the Closing Date; (iv) installment sale or open transaction disposition
made on or prior to the Closing Date; (v) cash method of accounting or long-term contract method of accounting utilized prior to
the Closing Date, (vi) prepaid amount received on or prior to the Closing Date; (vii) election pursuant to Section 108(i) of the
Code made on or prior to the Closing Date, (viii) Tax credit or deduction claimed or made in a Pre-Closing Date Tax Period, or
(ix) elections, designations or similar filings pursuant to the Tax Act made in a Pre-Closing Date Tax Period.

 

(i)                
All income, sales (including goods and services and provincial, territorial or state sales) and tax liabilities of
the each Company has been assessed by the relevant Taxing Authority and notices of assessment have been issued to the respective
Company by the relevant Taxing Authority for all taxation years or periods ending prior to and including the taxation year or period
ended December 31, 2020.

 

(j)                
Each Company has withheld the amount of all Taxes and other amounts required under any applicable Tax legislation
to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited
by it to or for the account or benefit of any Person, including any employees, officers or directors and any non-resident Person)
and has duly remitted paid the same to the appropriate Taxing Authority before the date of this Agreement within the time prescribed
under any applicable Tax legislation.

 

(k)              
Each Company has duly and timely complied with all registration, reporting, collection and remittance requirements
in respect of all Tax legislation pertaining to sales or transfer Taxes, including goods and services tax, provincial, territorial
state, or foreign sales taxes. The Companies have only claimed input tax credits to which they are rightfully entitled under the
relevant Tax legislation and have provided to Buyer all invoices, purchase orders, and all those other documents as are necessary
to report any claim for input tax credits or refunds claimed or to be claimed with respect to goods and services or any analogous
Taxes imposed pursuant to any Tax legislation.

 

(l)                
ChizComm Canada has not made an “excessive eligible dividend election” as defined in subsection 89(1)
of the Tax Act in respect of any dividend paid or deemed by any provision of the Tax Act to have been paid on any class of shares
of its capital.

 

 

 

 

    	 	27	 

     

    

 

(m)            
ChizComm Canada has not made a capital dividend election under subsection 83(2) of the Tax Act in an amount which
exceeds the amount in its capital dividend account at the time of such election.

 

(n)              
There are no circumstances existing which could result in the application of sections 78 or 80 to 80.04 of the Tax
Act or any analogous provision of any comparable Tax Legislation of any jurisdiction to ChizComm Canada.

 

(o)              
Neither Company has, nor has ever been deemed to have for purposes of the Tax Act, acquired or had the use of property
for proceeds greater than the fair market value thereof from, or disposed of property for proceeds less than the fair market value
thereof to, or received or performed services for other than the fair market value from or to, or paid or received interest or
any other amount other than at a fair market value rate to or from, any Person with whom it does not deal at arm’s length
within the meaning of the Tax Act. For all transactions between a Company, on the one hand, and any non-resident Person with whom
such Company was not dealing at arm’s length, for the purposes of the Tax Act, on the other hand, such Company has made or
obtained records or documents that satisfy the requirements of paragraphs 247(4)(a) to (c) of the Tax Act.

 

(p)              
At no time in the sixty (60) months prior to the Closing has more than fifty percent (50%) of the fair market value
of any shares of either Company been derived, directly or indirectly, from one or any combination of:

 

(i)              real
or immovable property situated in Canada;

 

(ii)             Canadian resource properties (as defined in the Tax Act);

 

(iii)           
timber resource properties (as defined in the Tax Act); and

 

(iv)            options in respect of, or interests in, or for civil law rights, in property described in any of (i) to (iii) above,
whether or not the property exists.

 

(q)              
No Company is a party to or bound by any Tax allocation, sharing or indemnity agreements or arrangements.

 

(r)                No
Company has any liability for the Taxes of any other Person under Treasury Regulations Section 1.1502-6 (or any corresponding
or similar provisions of state, local or foreign Tax law), or as a transferee or successor, or by contract or otherwise. No Company
has been a member of a Consolidated Group filing for federal or state income Tax purposes.

 

(s)                No
Company has entered into any agreement or arrangement with any Taxing Authority that requires such Company to take any action
or to refrain from taking any action. No Company is a party to any agreement with any Taxing Authority that would be terminated
or adversely affected as a result of the transactions contemplated by this Agreement.

 

(t)                No
Company has participated (within the meaning of Treasury Regulations § 1.6011-4(c)(3)) in any “reportable transaction”
within the meaning of Treasury Regulations § 1.6011-4(b) (and all predecessor regulations).

 

 

 

 

    	 	28	 

     

    

 

(u)               There
is no material property or obligation of any Company, including uncashed checks to vendors, customers, or employees, non-refunded
overpayments, or unclaimed subscription balances, that is escheatable or reportable as unclaimed property to any state or municipality
under any applicable escheatment or unclaimed property laws.

 

(v)              
No power of attorney that is currently in force has been granted with respect to any matter relating to Taxes that
could affect any Company.

 

(w)            
All of the property of each Company that is subject to property Tax has been properly listed and described on the
property Tax rolls of the appropriate taxing jurisdiction for all periods prior to Closing and no portion of any Company’s
property constitutes omitted property for property Tax purposes.

 

(x)              
No Company is subject to Tax in any jurisdiction, other than the country in which it is organized, by virtue of having,
or being deemed to have, a permanent establishment, fixed place of business or similar presence. All payments by, to or among any
Company and its Affiliates comply with all applicable transfer pricing requirements imposed by any Governmental Entity, and Sellers
have made available to Buyer accurate and complete copies of all transfer pricing documentation prepared pursuant to Treasury Regulation
Section 1.6626 (or any similar foreign statutory, regulatory, or administrative provision) by or with respect to the Companies.

 

(y)              
Each Company is in full compliance with all terms and conditions of any Tax exemption, Tax holiday or other Tax reduction
agreement or order of a Taxing Authority, and the consummation of the transactions contemplated by this Agreement will not have
any adverse effect on the continued validity and effectiveness of any such Tax exemption, Tax holiday or other Tax reduction agreement
or order.

 

(z)              
Each Company is, and has been since its formation, properly classified for U.S. federal income tax purposes as a
corporation.

 

4.12            Intellectual Property.

 

(a)              
Schedule 4.12(a) contains a complete and correct list of all (i) patents and patent applications, (ii) registered
trademarks, service marks, trade names, logos, trade dress, and slogans and applications to register any of the foregoing, (iii) registered
copyrights and applications for copyright registrations and (iv) domain name registrations owned by or exclusively licensed
to any of the Companies. “Intellectual Property” means any and all proprietary, industrial and intellectual
property rights, under the law of any jurisdiction or rights under international treaties, both statutory and common law rights,
including: (A) utility models, supplementary protection certificates, patents and applications for same, and extensions, divisions,
continuations, continuations-in-part, reexaminations, and reissues thereof; (B) trademarks, service marks, trade names, slogans,
domain names, logos, trade dress and other identifiers of source, and registrations and applications for registrations thereof
(including all goodwill associated with the foregoing); (C) copyrights, moral rights, database rights, other rights in works
of authorship and registrations and applications for registration of the foregoing; and (D) trade secrets, know-how, and rights
in confidential information, including designs, formulations, concepts, compilations of information, methods, techniques, procedures,
and processes, whether or not patentable. The term “Company Intellectual Property” means all Intellectual Property
used or held for use in or necessary for the business of any of the Companies as currently conducted and as currently proposed
to be conducted. Each Company either (x) owns all Company Intellectual Property, free and clear of all Encumbrances, or (y) has
a valid contractual right to use the Company Intellectual Property in such Company’s business as currently conducted or currently
proposed to be conducted.

 

 

 

 

    	 	29	 

     

    

 

(b)              All
registrations for Intellectual Property required to be identified in Section 4.12(a) are active and unexpired, and
all pending applications to register any Intellectual Property so identified are in good standing and none has lapsed, expired
or been abandoned.

 

(c)              
The Company Intellectual Property is valid and enforceable and, no action is pending or, to Sellers’ Knowledge,
is threatened that challenges the validity, use, enforceability, registration or ownership of any of the Company Intellectual Property.
To Sellers’ Knowledge, no Person is infringing, misappropriating or otherwise violating any Company Intellectual Property
owned by or exclusively licensed to any of the Companies. No Company has brought any enforcement action or otherwise sought to
enforce against any third party any rights in the Company Intellectual Property.

 

(d)               The
business of the Companies as currently conducted does not and will not infringe, misappropriate or otherwise violate any Intellectual
Property of any Person. None of the Companies has received any communications alleging that such Company has infringed, misappropriated
or violated or, by conducting the business as currently conducted, would infringe, misappropriate or violate any Intellectual
Property of any Person.

 

(e)              
The Companies have used commercially reasonable efforts to protect and maintain the confidentiality of all trade
secrets owned by or licensed to the Companies.

 

(f)               
All Company Intellectual Property will continue to be owned by or licensed to the Companies on identical terms and
conditions immediately following the consummation of the transactions contemplated by this Agreement as are in effect immediately
prior to such consummation.

 

(g)              
The Companies have sufficient rights to use all computer software and systems and information technology equipment
(including network equipment, printers and other hardware) (“IT Assets”) used or held for use in connection
with the operation of the business as currently conducted (the “Company IT Assets”). In the past six (6) years,
there has been no material failure, material substandard performance, breach of or unauthorized access to any Company IT Assets
or the IT Assets of the Companies’ independent contractors that has caused any material disruption to the business of the
Companies or resulted in any unauthorized disclosure of or access to any data owned, collected, processed, stored, transferred
or controlled by the Companies.

 

(h)              
No current or former owner, director, officer, employee or consultant of any Company will, after giving effect to
each of the transactions contemplated by this Agreement, own or retain any ownership rights in or to, have the right to receive
any royalty or other payment with respect to, any of the Company Intellectual Property owned by any Company.

 

 

 

 

    	 	30	 

     

    

 

4.13         
  Data Privacy.

 

(a)              
In connection with its collection, storage, processing, transfer (including any transfer action across national borders)
or use of any Personal Information from any individuals, including any existing or prospective customers, users or subscribers,
any employees or other third parties, each Company is and has been in material compliance with (i) all applicable Laws and industry
standards in all relevant jurisdictions, including but not limited to targeted advertising, and opt-out requirements for digital
advertising, and the Payment Card Industry – Data Security Standard, (ii) such Company’s privacy policies and (iii)
the requirements of any Contracts or codes of conduct to which such Company is bound by or is a party to.

 

(b)              
Each Company has sufficient physical, technical, organizational and administrative security measures and policies
in place to protect all Personal Information, collected by it or on its behalf, from and against unauthorized access, use or disclosure.
To the extent required by applicable Laws or industry standards, each Company requires all third parties to which it provides or
will provide Personal Information or access thereto to maintain the privacy and security of such Personal Information, including
by contractually obligating such third parties to protect such Personal Information from unauthorized access by or disclosure to
any unauthorized third parties.

 

(c)              
None of the Companies has provided or been legally required to provide any notices to data owners or Governmental
Entities in connection with an unauthorized disclosure, use or access of or to any of Personal Information.

 

(d)               Each
Company has at all times complied in all material respects with applicable Laws relating to Personal Information and Anti-Spam
Laws.

 

(e)              
No administrative or judicial investigations or proceedings are being conducted, pending or, to Sellers’ Knowledge,
threatened with respect to any Company under any Laws relating to Personal Information or any Anti-Spam Laws.

 

4.14           Material Contracts.

 

(a)              
Schedule 4.14 lists by category the following Contracts to which any Company is a party or subject or by which
it is bound (the “Material Contracts”):

 

(i)              all Contracts or group of related Contracts with the same party that can reasonably be expected to result in aggregate
payments by the Companies of more than $100,000 during the remainder of the current or any subsequent calendar year or $200,000
in the aggregate over the term of such Contract or group of related Contracts (based solely on the terms thereof, without regard
to any expected increase in payments);

 

(ii)             all
Contracts or group of related Contracts with the same party that can reasonably be expected to result in aggregate revenues to
the Companies of more $100,000 during the remainder of the current or any subsequent calendar year or $200,000 in the aggregate
over the term of such Contract or group of related Contracts (based solely on the terms thereof, without regard to any expected
increase in revenues);

 

 

 

 

    	 	31	 

     

    

 

(iii)           
all Real Property Leases and all leases of personal property (excluding any personal property lease with aggregate
annual payments of $75,000 or more);

 

(iv)            all Contracts for capital expenditures in excess of $50,000;

 

(v)             all
Contracts relating to Indebtedness or to mortgaging, pledging or otherwise placing an Encumbrance on any of the assets of any
Company or guaranteeing any of the same;

 

(vi)            all
other Contracts in which the aggregate obligation of any Company exceeds $100,000;

 

(vii)           all Contracts that have a “change in control” clause;

 

(viii)          all joint venture, acquisition and partnership agreements and other agreements relating to the acquisition by any
Company of any operating business or the Ownership Interests of any other Person;

 

(ix)             all
Contracts in excess of $50,000 with customers, users, subscribers, vendors or any other Person for the sharing of fees, the rebating
of charges or purchase price or other similar arrangements;

 

(x)              all
Contracts containing covenants pertaining to the right to compete and obligation not to compete in any line of business or similarly
restricting the ability of any Company to conduct business with any Person or in any geographical area;

 

(xi)             Contracts
pursuant to which Intellectual Property that is material to the business and operations of the Companies or involves consideration
in excess of $50,000 is licensed to or by the Companies (other than license agreements for unmodified “off-the-shelf”
software on generally standard terms and conditions involving total consideration of less than $10,000);

 

(xii)            all
collective bargaining agreements, collective agreements, or other Contracts with any labor union or similar employee representative
to which any Company is a party or by which any Company is bound;

 

(xiii)           to
the extent such Contracts have not been fully performed by any Company as of the Closing Date, all employment agreements, consulting,
retention, change in control or severance arrangements and all other Contracts, including indemnification agreements, with any
current or former officer, director, Business Employee, consultant, Independent Contractor, agent or representative of any Company,
including any contract with any staffing, leasing agency, professional employer organization or other Person providing services
to any Company; and

 

(xiv)           all Contracts regarding the terms under which any Company leases or otherwise contracts for the services of any Business
Employees.

 

 

 

 

    	 	32	 

     

    

 

(b)              
The Companies have delivered to Buyer true, complete and correct copies of each Material Contract (including any
amendments or modifications thereto). Each Material Contract is valid and binding, currently in force and enforceable in accordance
with its terms, subject to the Remedies Exception. The applicable Company party to each Material Contract, and to Sellers’
Knowledge, each other party to each Material Contract, has performed in all material respects all obligations required to be performed
by it in connection with each such Material Contract. No Company has received any notice of any claim of default by any Company
under or termination of any Material Contract. No Company has any present expectation or intention of not fully performing any
obligation pursuant to any Material Contract, and there is no breach, anticipated breach or default by any Company or, to Sellers’
Knowledge, any other party to any Material Contract.

 

4.15            Litigation. Schedule 4.15 sets forth all Litigation that is pending or, to Sellers’ Knowledge, threatened
(a) against or by any Company or (b) that relates to the Equity Interests or the business or the ownership or operation of the
assets of any of the Companies. Except as set forth on Schedule 4.15, since the Last Fiscal Year End, neither any Company
nor any Seller has settled or received a final judgment concerning any Litigation (x) against or by any Company or (b) that relates
to the Equity Interests or the business or the ownership or operation of the assets of any of the Companies. No Company is subject
to any outstanding Order.

 

4.16            Insurance.
Schedule 4.16 sets forth a true, correct and complete list of all insurance policies that are maintained by or cover any
Company or any material aspect of the business or operations of any of the Companies or any material portion of the assets of
any of the Companies. All premiums due and payable under all such insurance policies have been paid and all such insurance policies
are in full force and effect on their current terms in accordance with their terms and, except as set forth on Schedule 4.16,
will continue to be in full force and effect after the Closing.

 

4.17           Compliance with Laws; Governmental Authorizations.

 

(a)              
Each Company is, and for the last three (3) years has been, in material compliance with all applicable Laws and Orders,
including Canadian Securities Laws. No Company is subject to any investigation or Claim that, if decided against any Company, would
materially adversely affect the ongoing business or reputation of any Company as a business engaged in marketing and media involving
minors. No Company is relying on any exemption from or deferral of any Law, Order or Governmental Authorization that would not
be available to it after the Closing.

 

(b)              
Each Company has in full force and effect all material Governmental Authorizations necessary to conduct the business
and own and operate the Assets (including licenses, permits, authorizations, franchises, and certificates) of such Company. Schedule
4.17(b) lists each material Governmental Authorization held by any Company and identifies any such Governmental Authorization
which has a “change in control” clause. Each Company has complied in all material respects with all applicable Governmental
Authorizations. All material Governmental Authorizations are renewable by their terms or in the Ordinary Course of Business without
the need to comply with any special qualification procedures or to pay any amounts other than routine filing fees. No Person other
than the Companies owns or has any proprietary, financial or other interest (direct or indirect) in any Governmental Authorizations
which the Companies own, possess or use in the operation of their business as now or previously conducted.

 

 

 

 

    	 	33	 

     

    

 

4.18           Environmental Matters.

 

(a)              
Except as set forth on Schedule 4.18(a), each Company and the Real Property are, and during the five (5) years
prior to the Closing Date have been, in material compliance with all applicable Environmental Laws.

 

(b)              
Except as set forth on Schedule 4.18(b), each Company has obtained, maintained in full force and effect, and
is and during the five (5) years prior to the Closing Date has been in material compliance with the terms of all Governmental Authorizations,
permits, licenses, certificates of compliance, approvals and other authorizations required under Environmental Laws necessary to
conduct the business and operations of any of the Companies.

 

(c)              
Except as set forth on Schedule 4.18(c), no Company has, within the past five (5) years, received any written
notice of material violations or material liabilities arising under Environmental Laws relating to any Company or any of its facilities
(including the Real Property) that remains pending or unresolved and there are no material circumstances, events or occurrences
that are reasonably likely to result in the receipt of such notice. No Litigation is pending or, to Sellers’ Knowledge, threatened
against any Company or relating to any of the Real Property before any Governmental Entity under any Environmental Law, and neither
such Company nor any of the Real Property is subject to any Order pursuant to any Environmental Law.

 

(d)              
Except as set forth on Schedule 4.18(d), Sellers have provided Buyer with complete and correct copies of all
audits, assessments, inspections, reports, and correspondence in the possession or control of any Company and relating to material
environmental matters relating to any Company or any of its facilities (including the Real Property).

 

4.19           Employees.

 

(a)              
Schedule 4.19(a) lists each Business Employee and each independent contractor who provides regular services
to the Company of any Company (collectively, such independent contractors are referred to as the “Independent Contractors”),
and includes the following information with respect to each such individual: status (employee or Independent Contractor); position
(or, for Independent Contractors, services provided), location, original hire or engagement date; employing entity; annualized
salary (if paid on a salaried basis) or hourly rate of pay (if paid on an hourly basis) or any other applicable basis of compensation;
status as exempt or non-exempt under the Fair Labor Standards Act or ESA; commissions and bonuses for which he or she is eligible;
2019 and 2020 short-term incentive compensation received or for which he or she is eligible; all other compensation for which he
or she is eligible in 2020, vacation or paid time off days, leave status (including duration of leave and expected return to work
date); accrued overtime, details of any applicable visa or work permit of any such individual; and details of any co-employment
relationship. Schedule 4.19(a) identifies all Business Employees who are not employed by any Company “at will”,
all Business Employees whose entitlements upon termination of entitlement are in excess of ESA minimums, and all Contracts with
Independent Contractors that may not be terminated by the applicable Company without notice or penalty. The Business Employees
and Independent Contractors represent the entirety of the individuals necessary to operate and manage the Companies’ business
as currently operated and managed.

 

 

 

 

    	 	34	 

     

    

 

(b)              
Except as set forth on Schedule 4.19(b), no Company has entered into, or is negotiating any employment, consulting,
severance, retention, bonus, change of control or similar Contract with any Person. The employment of each Business Employee in
the United States is terminable at will by the Companies, as applicable.

 

(c)               To
Sellers’ Knowledge, no key Business Employee or Independent Contractor of any Company and no group of Business Employees
or Independent Contractors of any Company has any plans to terminate or materially alter his, her or their employment or engagement.

 

(d)              
No wrongful dismissal, constructive dismissal, mass termination or other claim, complaint, charge or investigation
that arises out of the employment relationship between any Company and its respective employees is pending or, to Sellers’
Knowledge, threatened under any applicable law.

 

(e)              
No Company is a party to or has ever been bound by, the terms of any collective bargaining agreement, collective
agreement, or any other Contract with any labor union, trade union, works council, or other representative of employees, and no
such agreements are being negotiated. There are no labor disputes existing or, to Sellers’ Knowledge, threatened involving,
by way of example, organizing activity, strikes, work stoppages, slowdowns, picketing or any other interference with work or production,
or any other concerted action by employees of any Company and no Company has experienced any material labor difficulties during
the last five (5) years. There have been no union certification or representation petitions or demands with respect to any Business
Employees, Independent Contractors or former employees or contractors of any Company and, to Sellers’ Knowledge, there is
no union organizing campaign or similar effort pending or threatened with respect to any Company, Independent Contractor, or Business
Employee.

 

(f)               
All Business Employees and Independent Contractors and all former employees and independent contractors of each Company
have been paid in full, and as of the Closing will have been paid in full, all wages, salaries, vacation pay, overtime pay, commissions,
bonuses and other compensation due and payable to such employees and contractors.

 

(g)              
Each Business Employee and Independent Contractor of each Company is lawfully authorized to work in the United States
and/or Canada, as applicable.

 

(h)              
No Company is subject to any order, settlement or consent decree with or relating to the employment or engagement
of any Business Employee, Independent Contractor or former employee or independent contractor, employee representative or other
Person, including any Governmental Entity, including any order, settlement or decree relating to claims in respect of employment
or labor practices and policies (including practices relating to discrimination, wage payments, recordkeeping, employment classification,
occupational health and safety, accessibility, pay equity, employee taxation and remittances and immigration). No Governmental
Entity has issued a judgment, order, decree or finding with respect to the labor or employment practices (including practices relating
to discrimination, wage payments, recordkeeping, employment classification, occupational health and safety, accessibility, pay
equity, employee taxation and remittances and immigration) of any Company.

 

 

 

 

    	 	35	 

     

    

 

(i)                
Each Company is and has been throughout the six (6) year period prior to the Execution Date in compliance in all
material respects with all applicable Laws and Orders relating to labor and employment, including all such Laws relating to wages,
hours, equal opportunity, recordkeeping, collective bargaining, employee taxation and remittances, immigration, anti-discrimination,
anti-harassment, anti-discrimination, recordkeeping, employee leave, occupational health and safety, accessibility, pay equity,
withholdings and deductions, classification of independent contractors and employees, “leased employees” (within the
meaning of Section 414(n) of the Code).

 

(j)                
Since the date that is one (1) year prior to the Execution Date, neither any Seller nor any of the Companies have
taken any action that is reasonably likely to cause Buyer or the Companies to be subjected to any liability under the WARN Act
or any similar state statute.

 

4.20           Employee Benefits.

 

(a)              
Schedule 4.20(a) includes a true and complete list of each Plan, and each Plan has been furnished or made
available to Buyer. Each Plan (other than “multiemployer plans” within the meaning and application of Section 3(37)
of ERISA) and any trust intended to be exempt from U.S. federal income taxation pursuant to Section 501(c)(9) of the Code, in each
case, has been documented, operated and administered, in all material respects, in compliance with its terms and applicable Laws,
including, without limitation, ERISA, the Patient Protection and Affordable Care Act, the Code and the Tax Act.

 

(b)              
Each of the Plans intended to be qualified under Section 401(a) of the Code, (i) satisfies the requirements of such
Section and is so qualified, (ii) is maintained pursuant to a prototype document approved by the IRS for which a separate determination
letter is not required, or has received a favorable determination letter from the IRS regarding such qualified status, (iii) has
been amended to the extent required by applicable Laws and (iv) has not been otherwise amended or operated in a way which would
adversely affect such qualified status.

 

(c)              
No Plan is a “salary deferral arrangement” as defined in the Tax Act.

 

(d)               Each Company and each of its respective ERISA Affiliates has performed all material obligations, whether arising
by operation of any Law or by contract, required to be performed by them in connection with the Plans, and there have been no material
defaults or violations by any other party to the Plans.

 

(e)              
(i) Each of the Plans has been operated and administered in all material respects in accordance with the documents
and instruments governing the Plan and applicable Law, (ii) all material reports and filings with Governmental Entities required
in connection with each Plan have been timely filed or furnished in accordance with applicable Law and (iii) all material disclosures
and notices required by Law or Plan provisions to be given to participants and beneficiaries in connection with each Plan have
been properly and timely furnished in accordance with applicable Law.

 

 

 

 

    	 	36	 

     

    

 

(f)               
Neither any Company nor any of their respective ERISA Affiliates contribute to or has any obligation to contribute
to, or has at any time within the last six (6) years sponsored, maintained, contributed to or had an obligation to contribute to,
or have any liability with respect to, and no Plan is, (i) a “multiemployer plan” within the meaning of Section 3(37)
of ERISA, (ii) a plan subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code, (iii) a “multiemployer
plan” within the meaning of Section 4001(a)(3) of ERISA, and the rules and regulations thereunder, (iv) a plan that has two
(2) or more contributing sponsors at least two (2) of whom are not under common control within the meaning of Section 4063 of ERISA,
(v) a “multiple employer welfare arrangement” (as such term is defined in Section 3(40) of ERISA), (vi) a “registered
pension plan” (as such term is defined in Section 248(1) of the Tax Act), or (vii) a “multi-employer plan”
(as such term is defined in regulation 8500(1) of the Tax Act). No Plan is funded through a trust that is intended to be exempt
from federal income taxation pursuant to Section 501(c)(9) of the Code, a “health and welfare trust” as described in
Canada Revenue Agency Income Tax Folio S2-F1-C1 or an “employee life and health trust” (as such term is defined in
Section 248(1) of the Tax Act). Each Plan may be unilaterally amended or terminated in its entirety as of the Closing without any
liability except as to benefits accrued thereunder prior to such amendment.

 

(g)               True,
correct and complete copies of each of the Plans and related trusts and services agreements and audits, if applicable, including
all amendments thereto, have been made available to Buyer. In the case of each unwritten Plan, a written description thereof that
accurately describes all material provisions of that Plan, as amended to the date of this Agreement, has been provided to or made
available to Buyer. There has also been furnished to Buyer, with respect to each Plan and to the extent applicable: (i) the most
recent annual or other reports filed with any Governmental Entity (including Form 5500, with all applicable schedules and attachments
for each Plan to which such annual report is applicable), (ii) the insurance contract or other funding arrangement and all amendments
thereto, (iii) the most recent summary plan description, and all summaries of material modification thereto, (iv) the most recent
determination letter, opinion letter or advisory letter issued by the IRS and (v) copies of any material notices, letters or other
correspondence from any Governmental Entity. There is no Litigation, pending (other than routine claims for benefits) or, to Sellers’
Knowledge, threatened against, or with respect to, any of the Plans or their assets.

 

(h)              
In connection with the consummation of the transaction contemplated by this Agreement, no payments, acceleration
of vesting or benefits, or provisions of other rights have or will be made under this Agreement, under any agreement, plan or other
program contemplated herein or under the Plans that, in the aggregate, would result in the imposition of the loss of deduction
imposed under Section 280G of the Code (determined without regard to the exceptions contained in Sections 280G(b)(4) and 280G(b)(5)
of the Code) or the excise tax under Section 4999 of the Code, whether or not some other subsequent action or event would be required
to cause such payment, acceleration, or provision to be triggered.

 

(i)                
No Plan provides retiree medical, retiree life insurance or other retiree fringe benefits to any person, and neither
any Company nor any of their respective Affiliates is contractually or otherwise obligated (whether or not in writing) to provide
any person with life insurance or medical benefits upon or after retirement or termination of employment, other than as required
by the provisions of Sections 601 through 608 of ERISA and Section 4980B of the Code and the regulations promulgated thereunder
or the ESA.

 

 

 

 

    	 	37	 

     

    

 

(j)                
Each Plan that is a “nonqualified deferred compensation plan” (as defined in Section 409A(d)(1) of the
Code) complies with the requirements of Code Section 409A and the Treasury Regulations promulgated thereunder, and no service provider
is entitled to a gross-up or similar payment for any Tax or interest that may be due under Sections 409A or 4999 of the Code.

 

(k)              
No act, omission or transaction of or by any Company (or, to Sellers’ Knowledge, of any other Person) has occurred
that would result in imposition on any Company, directly or indirectly, of (A) breach of fiduciary duty liability damages under
Section 409 of ERISA, (B) a civil penalty assessed pursuant to Section 502 of ERISA or (C) a Tax imposed pursuant to Chapter 43
of Subtitle D of the Code.

 

(l)                
The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement
does not and will not (either alone or upon the occurrence of any additional or subsequent events) (i) require any Company or any
of its ERISA Affiliates to make a larger contribution to, or pay greater compensation, payments or benefits under, any Plan that
it otherwise would in the absence of the execution and delivery of this Agreement or the consummation of the transactions contemplated
by this Agreement, (ii) create or give rise to any additional vested rights or service credits under any Plan, (iii) entitle
any current or former employees, officers, directors or consultants of any Company to severance pay or any increase in severance
pay (other than severance pay required by any Law), or (iv) accelerate the time of payment or vesting, funding or increase
the amount of compensation or benefits due to any current or former employees, officers, directors or consultants of any Company
or any of its Subsidiaries.

 

(m)            
Neither Company, any Subsidiary of any Company or any ERISA Affiliate of any Company has at any time sponsored, maintained,
contributed to or been required to maintain or contribute to, or has any actual or contingent liability under, any Plan that is
a “defined benefit plan” (as defined in Section 3(35) of ERISA), a plan which is a “multiemployer plan”
(as defined in Section 4001(a)(3) of ERISA), a plan that has two or more contributing sponsors at least two of whom are not under
common control (within the meaning of Section 4063 of ERISA) or that is subject to Section 302 or Title IV of ERISA or Section
412 of the Code, a plan which has a “defined benefit provision” (as such term is defined in Section 147.1(1) of the
Tax Act), a plan which is “multi-employer plan” (as such term is defined in regulation 8500(1) of the Tax Act) or is
otherwise a defined benefit plan. No Company has incurred any current or projected Losses in respect of and no Plan is a plan that
provides post-employment or post-retirement health, medical or life insurance coverage for current, former or retired employees,
except as required to avoid an excise tax under Section 4980B of the Code.

 

(n)              
All employee data necessary to administer each Plan is in the possession or control of the Companies, and is complete,
correct and in a form which is sufficient for the lawful administration of the Plans.

 

 

 

    	 	38	 

     

    

 

(o)              
None of the Plans requires or permits a retroactive increase in premiums or payments, and the level of insurance
reserves, if any, under any insured or self-insured Plan is reasonable and sufficient to provide for all incurred but unreported
claims.

 

4.21           Debt;
Guarantees. Schedule 4.21 sets forth by category (a) all Company Indebtedness and (b) all Affiliated Indebtedness,
including the aggregate amount of each category of Indebtedness, and describes by category any Encumbrances on any Assets which
secure such Indebtedness. As of the Closing Date, the aggregate amount of principal and interest outstanding under the TD Bank
Loan is equal to $166,442.01 and the Companies do not owe any other fees, payments, amounts or charges under or in connection
with the TD Bank Loan. Except as set forth on Schedule 4.21, neither Company has any Indebtedness. Other than the PPP Loan,
neither Company has applied for or received any grant, loan, forbearance or other type of relief under the CARES Act. In submitting
all documentation with respect to, and accepting the proceeds of, and applying for forgiveness of, the PPP Loan, ChizComm US has
provided complete and accurate information and has complied with all of the requirements of the CARES Act and applicable rules
and guidance, including the eligibility and certification requirements for the PPP Loan. All such material documentation has been
provided for review to Buyer. Neither Company has used any proceeds from the PPP Loan in contravention of the CARES Act and the
PPP Loan remains eligible for forgiveness in full in accordance with the provisions of the CARES Act and regulations governing
PPP loans.

 

4.22         
 Customers. Schedule 4.22 sets forth the fifteen (15) largest customers of the Companies (measured by aggregate
billings) during (a) the fiscal year ending on the Last Fiscal Year End and (b) the twelve (12)-month period ending on the Latest
Balance Sheet Date. Except as set forth on Schedule 4.22, the relationships of the Companies with such customers are good
commercial working relationships and, since the Last Fiscal Year End, none of such customers has canceled, terminated or otherwise
materially altered or diminished, or notified any Company in writing (or, to Sellers’ Knowledge, in any other manner) of
any intention to do any of the foregoing, or otherwise threatened in writing (or, to Sellers’ Knowledge, in any other manner)
to cancel, terminate or materially alter or diminish its relationship with any Company.

 

4.23           Affiliated Transactions. Schedule 4.23 sets forth each Contract, transaction, Indebtedness, payable, receivable
or other arrangement between any Company, on the one hand, and any Seller, another Company or any of their respective Affiliates
or any of their respective officers, directors or employees, on the other hand (the “Affiliated Transactions”).
Except as set forth on Schedule 4.23, each Company conducts the business and operations of such Company independent from
Sellers and their respective Affiliates (other than the Companies), and does not rely on Sellers or their respective Affiliates
(other than the Companies) for any assets, support or services.

 

4.24           Bank
Accounts. Schedule 4.24 sets forth (a) the name of each bank, trust company, securities or other broker or other financial
institution with which any Company has an account, credit line or safe deposit box or vault, or otherwise maintains relations,
(b) the name of each Person authorized by such Company to draw thereon or to have access to any safe deposit box or vault, (c)
the purpose of each such account and (d) any power of attorney or other instrument to act on behalf of such Company in matters
concerning its business or affairs. All such accounts, credit lines, safe deposit boxes and vaults are maintained by the applicable
Company for normal business purposes and no such proxy, power of attorney or other like instrument is irrevocable.

 

 

 

    	 	39	 

     

    

 

4.25           Anti-Bribery. Since the commencement of the operation of the business of the Companies:

 

(a)              
No Company, or, to Sellers’ Knowledge, any of its directors, officers, Business Employees, agents or representatives
(i) has taken any action, or has failed to take any action, directly or indirectly, that would result in a violation of the U.S.
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), the
Corruption of Foreign Public Officials Act, as amended (the “CFPO”), or any analogous anticorruption Laws applicable
to such Company or (ii) has directly or indirectly offered, paid, promised to pay or authorized the payment of anything of value,
including but not limited to cash, checks, wire transfers, tangible and intangible gifts, favors and services, to any Government
Official or any other person while knowing or having a reasonable belief that all or some portion would be used for the purpose
of: (A) influencing any act or decision of a Government Official, including a decision to fail to perform official functions, (B)
inducing any Government Official to do or omit to do any act in violation of the lawful duty of such official, or (C) inducing
any Government Official to use influence with any Governmental Entity in order to assist such Company in obtaining or retaining
business with, or directing business to any person or otherwise securing for any person an improper advantage.

 

(b)              
Each Company has conducted the business and operations of such Company in compliance with the FCPA, the CFPO and
other applicable anticorruption Laws. No Litigation or investigation by or before any Governmental Entity involving any Company,
with respect to the FCPA, the CFPO or other applicable anticorruption Laws is pending or, to Sellers’ Knowledge, threatened.
No civil or criminal penalties have been imposed on any Company with respect to violations of the FCPA, the CFPO or any other applicable
anticorruption Laws nor have any disclosures been submitted by any Company to the U.S. Government or any other Governmental Entity
with respect to violations of the FCPA, the CFPO or any other applicable anticorruption Laws.

 

(c)              
The business and operations of the Companies have been conducted in compliance with applicable financial recordkeeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering Laws
of all jurisdictions in which each Company operates, the rules and regulations thereunder and any related or similar rules, regulations
or guidelines, issued, administrated or enforced by any Governmental Entity (collectively, the “Money Laundering Laws”).
No Litigation by or before any Governmental Entity involving any Company under any Money Laundering Laws is pending or, to Sellers’
Knowledge, threatened.

 

4.26           Marketing
Rights. None of the Companies has granted rights to develop, distribute, license, market or sell its products or services
to any Seller or any third party and is not bound by any Contract that affects such Company’s exclusive right to develop,
distribute, license, market or sell its products or services.

 

 

 

 

    	 	40	 

     

    

 

4.27           Terms
of Service. Set forth on Schedule 4.27 are the standard terms under which each Company provides products and services
to its customers, users and subscribers. Except as set forth on Schedule 4.27, no customers, users or subscribers are entitled
to or benefit from any service level or performance guarantees or any warranties with respect to the products and services provided
by any of the Companies. In addition, except as set forth on Schedule 4.27, no customers, users or subscribers are entitled
to any material refunds, credits or rights of set-off with respect to any products or services provided by any of the Companies.

 

4.28           Immigration Matters. Each Company has used commercially reasonable efforts to comply with all immigration Laws applicable
to (a) such Company’s employment of non-United States citizens (including all documentary and record-keeping requirements)
to perform and provide services related to such Company’s business within the United States or (b) such Company’s employment
of non-Canadian citizens (including all documentary and record-keeping requirements) to perform and provide services related to
such Company’s business within Canada, as applicable. No monetary penalties have been assessed or threatened against any
of the Companies for violation of any applicable immigration Laws.

 

4.29         
Availability of Documents. Sellers have made available to Buyer true, correct and complete copies of the items referred
to in the Schedules referenced in Article III and this Article IV (and in the case of any items not in written form,
a written description of all material facts relating thereto or material terms thereof).

 

4.30           Competition
Act. Neither (a) the aggregate value of the assets in Canada that are owned by the Companies, nor (b) the gross revenues from
sales in or from Canada generated from the assets in (a), exceed C$85,000,000, each of (a) and (b) being determined in accordance
with the Competition Act (Canada) and the Notifiable Transactions Regulations thereunder.

 

4.31           Investment
Canada Act. None of the Companies is engaged in (i) any of the activities of a “cultural business” as that term
is defined in subsection 14.1(6) of the Investment Canada Act (Canada) or (ii) any business activity prescribed in Schedule IV
of the Investment Canada Regulations promulgated under the Investment Canada Act (Canada).

 

4.32           Securities Matters. ChizComm Canada is a “private issuer” for purposes of National Instrument 45-106,
Prospectus Exemptions. No Company is in default under Canadian Securities Laws.

 

4.33           Officers
and Directors. Schedule 4.33 sets forth a true, complete and correct list of the officers and directors (or similar
positions) of each Company and each Subsidiary of such Company.

 

4.34           Disclosure.
No representation or warranty or other statement made by any Seller in this Agreement, the Schedules referenced in Article
III and this Article IV or supplements thereto, the other Transaction Documents or any certificate delivered by a Seller
or any Company pursuant to this Agreement, contains or will contain any untrue statement of material fact or omits or will omit
to state a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were
made, not misleading.

 

 

 

    	 	41	 

     

    

 

V.               
Representations and Warranties of Parent, US Sub and Canada Sub

 

Each of Parent, US
Sub and Canada Sub represents and warrants to Sellers that the statements contained in this Article V are true, correct
and complete as of the Closing Date. The Schedules referred to in this Article V will be arranged in paragraphs corresponding
to the lettered and numbered paragraphs contained in this Article V.

 

5.1             
Incorporation; Power and Authority.

 

(a)              
Parent is a corporation duly organized, validly existing and in good standing under the Laws of the State of Nevada,
with all necessary power and authority to execute, deliver and perform this Agreement.

 

(b)              
US Sub is a limited liability company duly formed, validly existing and in good standing under the Laws of the State
of New Jersey, with all necessary power and authority to execute, deliver and perform this Agreement.

 

(c)              
Canada Sub is a corporation duly organized, validly existing and in good standing under the Laws of the Province
of Ontario, with all necessary power and authority to execute, deliver and perform this Agreement.

 

5.2              Valid
and Binding Agreement. The execution, delivery and performance of this Agreement by each of Parent, US Sub and Canada Sub
has been duly and validly authorized by all necessary corporate or limited liability company action, as applicable. This Agreement
and each other Transaction Document to which Parent, US Sub or Canada Sub is or will be a party have been or will be duly executed
and delivered by Parent, US Sub and Canada Sub, as applicable, and, assuming this Agreement and such other Transaction Document
constitute the valid and binding obligations of the other parties hereto and thereto, constitutes or will, upon Parent’s,
US Sub’s and/or Canada Sub’s execution and delivery, constitute the valid and binding obligation of each of Parent,
US Sub and Canada Sub, as applicable, enforceable against it in accordance with its terms, subject to the Remedies Exception.

 

5.3             No
Breach; Consents. The execution, delivery and performance of this Agreement and each other Transaction Document to which Parent,
US Sub and/or Canada Sub will be a party by Parent, US Sub and/or Canada Sub, as applicable, does not and will not (a) contravene
any provision of the Organizational Documents of Parent, US Sub or Canada Sub; (b) violate or conflict with any Law, Order or
Governmental Authorization; (c) conflict with, result in any breach of any of the provisions of, constitute a default (or any
event which would, with the passage of time or the giving of notice or both, constitute a default) under, result in a violation
of, increase the burdens under, result in the termination, amendment, suspension, modification, abandonment or acceleration of
payment (or any right to terminate) or require a Consent, including any Consent under any Contract or Governmental Authorization
that is either binding upon or enforceable against Parent, US Sub or Canada Sub; or (d) require any Governmental Authorization.

 

5.4              Brokerage.
No Person will be entitled to receive any brokerage commission, finder’s fee, fee for financial advisory services or similar
compensation in connection with the transactions contemplated by this Agreement based on any Contract made by or on behalf of
Buyer for which Sellers are or could become liable or obligated.

 

 

 

    	 	42	 

     

    

 

5.5              Securities.
Buyer is acquiring the Equity Interests hereunder for investment, solely for Buyer’s own account and not with a view to,
or for resale in connection with, any distribution or other disposition thereof in violation of the Securities Act or any applicable
state securities Law. Buyer acknowledges that none of the Equity Interests may be resold in the absence of registration, or the
availability of an exemption from such registration, under the Securities Act or any applicable state securities Law. Buyer is
an “accredited investor” as defined in Rule 501 promulgated under the Securities Act and has such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Equity Interests.

 

VI.            
Agreements of Sellers

 

6.1             
Intentionally Omitted.

 

6.2             
Intentionally Omitted.

 

6.3             
Non-Competition; Non-Solicitation.

 

(a)              
For a period of three (3) years from the Closing Date, no Seller shall, directly or indirectly on behalf of such
Seller or on behalf of any other Person, (i) conduct or engage in, or assist any other Person in conducting or engaging in, a business
in the United States or Canada, which is the same as or substantially similar to the Business as currently conducted or currently
proposed to be conducted by any of the Companies, including as a stockholder, consultant, partner, joint venturer, owner, lender,
beneficiary, principal, member, director, manager, officer, employee or in any other capacity, of any Person that is conducting
such business, (ii) solicit or induce or participate in any way in the solicitation or inducement of any individual who is or was,
at any time during the preceding twelve (12)-month period, an officer, employee, consultant or contractor (including the Independent
Contractors) of any Company to (A) terminate or otherwise alter his or her employment or relationship with such Company or (B)
offer employment to or hire or engage any such individual, (iii) solicit the business of, or trade with, any Person that is (or
was at any time during the preceding twelve (12)-month period) a customer of any Company with respect to the services provided
by such Company for the purpose of engaging in the Business, (iv) induce, or otherwise solicit, any customers with whom any Company
has done business at any time during the preceding twelve (12)-month period to terminate or otherwise curtail or impair their business
relationship with such Company or (v) except as required by applicable Law, make, publish, communicate or take any action, or cause
or induce or encourage any Person to make, publish, communicate or take any action, to disparage or otherwise make any negative
comments about Buyer, any of the Companies or any of their respective Affiliates or their respective direct or indirect officers,
directors, employees, equityholders, agents, consultants, contractors, products or services.

 

(b)               Notwithstanding
the foregoing, nothing contained in this Agreement shall prohibit a Seller from purchasing and holding as a passive investment
less than one percent (1%) of any class of the issued and outstanding and publicly traded (on a recognized national or regional
securities exchange or in the over-the-counter market) security of any corporation, partnership or other business entity that
conducts a business in competition with the Business, Buyer or any of the Companies.

 

 

 

    	 	43	 

     

    

 

(c)              
Each Seller agrees to the covenants contained in this Section 6.3 in partial consideration for the Purchase
Price set forth in Article II. Each Seller agrees that any Claim for breach of this Section 6.3 against such Seller
may be brought by Buyer or any of its Affiliates.

 

(d)              
Each Seller acknowledges and agrees that the covenants contained in this Section 6.3 are fair and reasonable
in all respects and of a special unique character which gives them particular value and exist in order to protect Buyer’s
investment in the Business and the Equity Interests purchased under this Agreement, including the protection of the goodwill transferred
by Sellers herewith and the protection of the confidential and proprietary information of the Companies, and that Buyer would not
have entered into this Agreement without such covenants being made. However, if any such covenants shall be determined by any court
to be invalid by reason of their duration, geographical scope, or any other scope, as the case may be, the Parties intend for the
covenants to be modified by the court, and expressly request that the court make such modification, so that such covenants shall
be reduced to the longest duration or greatest geographic scope, or both, which will cure such invalidity. By agreeing to this
contractual modification prospectively at this time, the Parties intend to make this provision enforceable under the law or laws
of all applicable States and other applicable jurisdictions so that the entire agreement not to compete and this Agreement as prospectively
modified shall remain in full force and effect and shall not be rendered void or illegal. Each Seller further acknowledges that
monetary damages alone will not be an adequate remedy for any breach of any of the covenants contained in this Section 6.3,
and accordingly, such Seller expressly agrees that, in addition to all other remedies which Buyer or its Affiliates may have at
law and equity, they shall be entitled to injunctive relief, both preliminary and permanent, in any court of competent jurisdiction.

 

6.4             
Use of Certain Names. Within sixty (60) days following the Closing, the Sellers shall and shall cause their Affiliates
to cease using the terms “ChizComm” and “Beacon Media Group” and any other word, expression or identifier
of source confusingly similar thereto or constituting an abbreviation, derivation or extension thereof (the “Company Marks”),
including removing, or causing to be removed, all such names, marks or logos from wherever they may appear on a Seller’s
assets and disposing of any unused stationery and literature of the Sellers bearing the Company Marks, and thereafter, Sellers
shall not, and shall cause their respective Affiliates not to, use the Company Marks or any other logos, trademarks, trade names
similar thereto or other Intellectual Property belonging to a Company or any Affiliate thereof (including Buyer), and each Seller
acknowledges that it, and its Affiliates have no rights whatsoever to use such Intellectual Property; provided, however,
nothing in this Section 6.4 prevents Sellers from using the Company Marks (a) in a neutral, non-trademark manner (e.g.,
to describe their historical relationship to the Companies) or (b) to the extent required by applicable Law in legal or business
documents already in existence on the Closing Date.

 

6.5             
PPP Forgiveness. From and after the Closing, neither Company nor Buyer shall take any action with respect to the
PPP Loan forgiveness application, without the prior written consent of Sellers (such consent not to be unreasonably conditioned,
withheld or denied), nor take any action that would adversely affect the forgivability of the PPP Loan.

 

 

 

 

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VII.         
Agreements of Buyer

 

7.1             
Books and Records, Access After the Closing Date. Buyer will hold all the books and records of the Companies existing
on the Closing Date in accordance with Buyer’s retention policies in effect from time to time for a period of not less than
three (3) years from the Closing Date. After the Closing Date, (a) Buyer will afford Sellers and their respective accountants and
counsel, during normal business hours, upon reasonable request, full access to the books and records of the Companies to the extent
required in order to prepare Sellers’ Tax Returns and (b) Buyer will make available to each Seller upon written request and
at the expense of such Seller, but consistent with Buyer’s reasonable business requirements, reasonable assistance of any
of the Companies’ personnel whose assistance or participation is reasonably required by such Seller, in anticipation of,
or preparation for, existing or future litigation or other matters in which such Seller is involved related to the Companies.

 

7.2             
Employment Matters.

 

(a)               Buyer
agrees that each Business Employee who continues to be on the payroll of a Company at the Closing Date (each, a “Continuing
Employee”) will be provided with initial compensation and benefits that includes (i) base salary or base regular
hourly wage plus target cash bonus opportunities that are, in the aggregate, no less favorable than the base salary or base regular
hourly wage plus target cash bonus opportunities, in the aggregate, provided by such Company or any of its Subsidiaries, as applicable,
to each such Continuing Employee immediately prior to the Closing Date and (ii) employee benefits (including defined contribution
retirement and Welfare Benefits) that are substantially comparable in the aggregate to the benefits provided by such Company to
such Continuing Employees immediately prior to the Closing Date.

 

(b)              Notwithstanding
the foregoing, nothing contained herein is intended to (i) be treated as an amendment of any particular Plan, (ii) give
any third party any right to enforce the provisions of this Section 7.2 or (iii) prevent Buyer, any Company,
or any of their Affiliates from (A) amending or terminating any particular benefit plan or (B) terminating the employment
of any particular employee.

 

7.3              Release
of TD Bank Loan Guarantees. As promptly as reasonably practicable following the Closing Date, Buyer shall use commercially
reasonable efforts to obtain, or cause to be obtained, replacements for, or terminations of, personal guarantees provided by Harold
Aaron Chizick and Jennifer Mara Chizick to The Toronto-Dominion Bank in connection with the TD Bank Loan and shall provide evidence
thereof to Sellers promptly after obtaining such replacements or terminations. From and after the Closing, subject to Section
10.1, Buyer shall indemnify and hold Harold Aaron Chizick and Jennifer Mara Chizick harmless from and against any action taken
against such personal guarantees by the holder thereof.

 

VIII.      
Conditions to Closing

 

8.1              Conditions
of Sellers to Closing. The obligations of Sellers to consummate the transactions contemplated by this Agreement are subject,
at the option of Sellers, to the fulfillment by Buyer, or waiver in writing by Sellers on or prior to Closing of each of the following
conditions:

 

 

 

    	 	45	 

     

    

 

(a)              
The representations and warranties set forth in Article V to the extent qualified by “material,”
“materiality” or other terms of similar import or effect shall be true and correct in all respects, and all representations
and warranties set forth in Article V not so qualified shall be true and correct in all material respects, at and as of
the Closing Date as though then made (without giving effect to any disclosures made after the Execution Date), in each case, except
where the failure to be so true and correct has not had and would not reasonably be expected to have a material adverse effect
on the ability of Buyer to consummate the transactions contemplated by this Agreement.

 

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

 

(c)              
Absence of Litigation. There shall not be (i) any Order of any nature issued and directing that the transactions
contemplated by this Agreement not be consummated in a manner contemplated by this Agreement or (ii) any Litigation, pending or
threatened in writing, by or before any Governmental Entity with respect to the transactions contemplated by this Agreement.

 

(d)              
Closing Deliverables. Buyer shall have delivered (or shall be ready, willing and able to deliver at Closing)
to Sellers the documents and other items required to be delivered by Buyer under Section 2.6.

 

8.2             
Conditions of Buyer to Closing. The obligations of Buyer to consummate the transactions contemplated by this Agreement
are subject, at the option of Buyer, to the fulfillment by Sellers or waiver in writing by Buyer on or prior to Closing of each
of the following conditions:

 

(a)              
Representations and Warranties. (i) The representations and warranties set forth in Article III and
Article IV (other than the Fundamental Representations) to the extent qualified by “material,” “materiality”
or other terms of similar import or effect shall be true and correct in all respects, and all representations and warranties set
forth in Article III and Article IV (other than the Fundamental Representations) not so qualified shall be true and
correct in all material respects, at and as of the Closing Date as though then made (without giving effect to any disclosures made
after the Execution Date); and (ii) the Fundamental Representations shall be true and correct in all respects as of the Closing
Date as though then made (without giving effect to any disclosures made after the Execution Date).

 

(b)              
Covenants. Each Seller shall have performed and complied with in all material respects all of such Seller’s
covenants and agreements required to be performed or complied with by such Seller under this Agreement prior to the Closing Date.

 

(c)              
Absence of Material Adverse Effect. There shall not have occurred a Material Adverse Effect.

 

(d)              
Absence of Litigation. There shall not be (i) any Order of any nature issued and directing that the transactions
contemplated by this Agreement not be consummated in a manner contemplated by this Agreement or (ii) any Litigation, pending or
threatened in writing, by or before any Governmental Entity with respect to the transactions contemplated by this Agreement.

 

 

 

    	 	46	 

     

    

 

(e)              
Closing Deliverables. Sellers shall have delivered (or be ready, willing and able to deliver at Closing) to
Buyer the documents and other items required to be delivered by Sellers under Section 2.5.

 

IX.            
Termination

 

9.1             
Right to Terminate. This Agreement may be terminated and the transactions contemplated by this Agreement may be abandoned
at any time prior to the Closing by mutual written consent of each of the Parties.

 

X.               
Indemnification

 

10.1         
Indemnification by Sellers.

 

(a)              
Subject to the limitations herein, Sellers agree to indemnify, defend and hold harmless Parent, US Sub, Canada Sub,
each Company, their respective Affiliates (other than Sellers) and their respective officers, directors, managers, employees, agents,
representatives, members, partners and stockholders (collectively, the “Buyer Indemnified Parties”) against
any Loss arising from, relating to or constituting (i) any breach or inaccuracy in any of the representations and warranties contained
in Article III or IV or any closing certificate delivered by or on behalf of Sellers pursuant to this Agreement,
(ii) any breach of any of the covenants or other agreements of any Seller contained in this Agreement and all Exhibits hereto or
(iii) the Retained Liabilities (clauses (i) through (iii), collectively “Buyer Losses”); provided,
that, notwithstanding anything to the contrary set forth in this Agreement, each Seller’s liability for any Buyer Loss shall
be limited to such Seller’s Pro Rata Share of such Buyer Loss, regardless of which Seller is at fault.

 

(b)              
Sellers shall have no liability as a result of a claim brought for indemnification under Section 10.1(a)(i)
with respect to (i) Buyer Losses for which indemnification is provided thereunder unless such Buyer Losses exceed in the aggregate
an amount equal to $120,000, (the “Deductible”), in which case Sellers shall be liable for the full amount of
such Buyer Losses (subject to the other limitations set forth in this Agreement, including those set forth in clause (ii)
of this Section 10.1(b) and Section 10.1(c)) in excess of the Deductible, or (ii) Buyer Losses for which indemnification
is provided thereunder to the extent that indemnification payments made in respect of such Buyer Losses exceed in the aggregate
an amount equal to $1,200,000 (the “Cap”), in which case Sellers shall not be liable for the portion of such
Buyer Losses in excess of the Cap; provided, however, the Deductible and the Cap shall not apply to Sellers’
indemnification obligations under Section 10.1(a)(i) to the extent related to breaches of any of the Fundamental Representations
or in the case of fraud or intentional misrepresentation (and no Buyer Losses arising from or relating to breaches of any of the
Fundamental Representations or actions or inactions constituting fraud or intentional misrepresentation shall count towards satisfaction
of the Deductible or determining whether the Cap has been reached with respect to any other Buyer Losses); and provided further,
however, the Deductible shall not apply to Sellers’ breaches of any of the representations or warranties contained
in Section 4.20.

 

 

 

 

    	 	47	 

     

    

 

(c)              
Notwithstanding anything to the contrary in this Agreement, except for Buyer Losses arising from or relating to fraud
or intentional misrepresentation, in no event shall Sellers be liable for aggregate Buyer Losses arising from or relating to (i)
breaches of any of the Fundamental Representations, (ii) breaches of any of the covenants or other agreements of any Seller contained
in this Agreement or (iii) the Retained Liabilities in excess of the Closing Consideration.

 

(d)              
If a Buyer Indemnified Party has a claim for indemnification under this Section 10.1, Buyer will deliver to
Sellers one or more written notices of Buyer Losses (i) in the case of a breach or inaccuracy of Article III or Article
IV (other than the Fundamental Representations), prior to the General Survival Date, (ii) in the case of a breach or inaccuracy
of the representations and warranties contained in Section 4.11, at any time prior to thirty (30) days following the expiration
of the applicable statute of limitations, and (iii) in the case of any Retained Liabilities or a breach or inaccuracy of the Fundamental
Representations (other than the representations and warranties contained in Section 4.11) or a breach of any covenant or
other agreement of a Seller contained in this Agreement, at any time. Sellers will have no liability for a Buyer Loss under this
Section 10.1 unless the written notice required by the preceding sentence for such Buyer Loss is given by the applicable
deadline. Any written notice will state in reasonable detail the basis for such Buyer Loss to the extent then known by Buyer and
the nature of the Buyer Loss for which indemnification is sought, and the amount of the Buyer Loss claimed, if then known by any
of the Buyer Indemnified Parties. If such written notice (or an amended notice) states the amount of the Buyer Loss claimed and
Sellers notify Buyer that Sellers do not dispute the claim described in such notice or fail to notify Buyer within twenty (20)
Business Days after delivery of such notice by Buyer whether Sellers dispute the claim described in such notice, the Buyer Loss
in the amount specified in Buyer’s notice will be deemed admitted by Sellers, and Sellers will indemnify the applicable Buyer
Indemnified Parties for such Buyer Loss in accordance with Section 10.1(e). If Sellers have timely disputed the liability
of Sellers with respect to such claim, Sellers and Buyer will proceed in good faith to negotiate a resolution of such dispute for
at least thirty (30) days after delivery of Sellers’ notice after which the Parties may pursue any remedies available to
them under this Agreement. If a written notice does not state the amount of the Buyer Loss claimed, such omission will not preclude
any Buyer Indemnified Party from recovering from Sellers the amount of the Buyer Loss with respect to the claim described in such
notice if any such amount is promptly provided after it is determined. In order to assert its right to indemnification under this
Article X, Buyer will not be required to provide any notice except as provided in this Section 10.1(d).

 

(e)              
Following a Seller Liability Determination with respect to a Buyer Loss, Buyer (on behalf of the applicable Buyer
Indemnified Party), shall recover such Buyer Loss in the manner set forth in Article XI.

 

10.2         
Indemnification by Buyer.

 

(a)              
Subject to the limitations herein, Buyer agrees to indemnify, defend and hold harmless Sellers, their Affiliates
(other than the Companies) and their respective officers, directors, managers, employees, agents, representatives, members, partners
and stockholders (collectively the “Seller Indemnified Parties”) against any Loss, arising from, relating to
or constituting (i) any breach or inaccuracy in any of the representations and warranties of Parent, US Sub and/or Canada Sub,
as applicable, contained in Article V or any closing certificate delivered by or on behalf of Buyer pursuant to this Agreement
or (ii) any breach of any of the covenants or other agreements of Buyer contained in this Agreement and all Exhibits hereto (clauses
(i) through (ii), collectively, “Seller Losses”).

 

 

 

    	 	48	 

     

    

 

(b)              
If a Seller Indemnified Party has a claim for indemnification under this Section 10.2, Sellers will deliver
to Buyer one or more written notices of Seller Losses. Any written notice will state in reasonable detail the basis for such Seller
Losses to the extent then known by Sellers and the nature of the Seller Loss for which indemnification is sought, and the amount
of the Seller Loss claimed, if then known by any of the Seller Indemnified Parties. If such written notice (or an amended notice)
states the amount of the Seller Loss claimed and Buyer notifies Sellers that Buyer does not dispute the claim described in such
notice or fail to notify Sellers within twenty (20) Business Days after delivery of such notice by Sellers whether Buyer disputes
the claim described in such notice, the Seller Loss in the amount specified in Sellers’ notice will be admitted by Buyer,
and Buyer will pay the amount of such Seller Loss to Sellers (on behalf of the applicable Seller Indemnified Party). If Buyer has
timely disputed its liability with respect to such claim, Buyer and Sellers will proceed in good faith to negotiate a resolution
of such dispute for at least thirty (30) days after delivery of Buyer’s notice, after which the Parties may pursue any remedy
available to them under this Agreement. If a written notice does not state the amount of the Seller Loss claimed, such omission
will not preclude any Seller Indemnified Party from recovering from Buyer the amount of Seller Loss with respect to the claim described
in such notice if any such amount is promptly provided once determined. In order to assert its right to indemnification under this
Article X, Sellers will not be required to provide any notice except as provided in this Section 10.2(b).

 

(c)              
Buyer will pay the amount of any Seller Loss to Sellers (on behalf of the applicable Seller Indemnified Party) in
cash within fifteen (15) Business Days following the determination of Buyer’s liability for and the amount of a Seller Loss
(whether such determination is made pursuant to the procedures set forth in this Section 10.2, by agreement between Sellers
and Buyer or by Court Direction).

 

10.3         
  Third Party Action.

 

(a)              
Buyer will give Sellers prompt written notice (a “Third Party Claim Notice”) of the commencement
of any Litigation instituted by any third party for which any Buyer Indemnified Party reasonably believes that it is entitled to
indemnification pursuant to Section 10.1 (any such third party action or proceeding being referred to as a “Third
Party Action”). The complaint or other papers pursuant to which the third party commenced such Third Party Action will
be attached to such Third Party Claim Notice. The failure to promptly deliver a Third Party Claim Notice will not affect any Buyer
Indemnified Party’s right to indemnification except to the extent such failure has materially and adversely affected the
applicable Seller Indemnifying Parties’ ability to defend successfully such Third Party Action

 

 

 

 

 

 

    	 	49	 

     

    

 

(b)              
Subject to Section 10.3(c), Sellers shall have the right and the obligation to contest and defend any such
Third Party Action on behalf of the applicable Buyer Indemnified Party. Such contest and defense will be conducted by attorneys
retained and paid by Sellers and reasonably satisfactory to Buyer. Any Buyer Indemnified Party will be entitled at any time, at
its own cost and expense, to participate in such requested contest and defense and to be represented by attorneys of its own choosing.
If a Buyer Indemnified Party elects to participate in such defense, such Buyer Indemnified Party will cooperate with Sellers in
the conduct of such defense. If Sellers have been requested to contest and defend such Third Party Action, the applicable Buyer
Indemnified Parties will cooperate with Sellers to the extent reasonably requested by Sellers in the contest and defense of such
Third Party Action, including providing reasonable access (upon reasonable notice) to the books, records and employees of such
Buyer Indemnified Party if relevant to the defense of such Third Party Action; provided, however, that such cooperation
will not unduly disrupt the operations of the business of such Buyer Indemnified Party or cause such Buyer Indemnified Party to
waive any statutory or common law privileges, breach any confidentiality obligations owed to third parties or otherwise cause any
confidential information of such Buyer Indemnified Party to become public.

 

(c)              
If a Buyer Indemnified Party requests that Sellers contest and defend a Third Party Action but later reasonably determines
that Sellers are not adequately representing or, because of a conflict of interest, may not adequately represent any interests
of the Buyer Indemnified Party at any time after requesting Sellers to do so, a Buyer Indemnified Party will be entitled to conduct
its own defense and to be represented by attorneys of its own choosing, all at Sellers’ cost and expense.

 

(d)              
Neither a Buyer Indemnified Party, on the one hand, nor Sellers on the other hand, may concede, settle or compromise
any Third Party Action without the consent of the other, which consent will not be unreasonably withheld, delayed or conditioned.
Notwithstanding the foregoing, (i) if a Third Party Action seeks the issuance of an injunction, the specific election of an obligation
or similar remedy, (ii) if a Third Party Action seeks damages in excess of the amount by which a Buyer Indemnified Party is entitled
to indemnification pursuant to this Article X, or (iii) if the subject matter of a Third Party Action relates to the ongoing
business of any Buyer Indemnified Party, which Third Party Action, if decided against any Buyer Indemnified Party, would materially
adversely affect the ongoing business or reputation of any Buyer Indemnified Party, such Buyer Indemnified Party alone will be
entitled to settle such Third Party Action.

 

10.4           Sole
and Exclusive Remedy. In connection with the Closing, the Parties will have available to them all remedies available under
Law. The rights set forth in Sections 10.1, 10.2 and, to the extent applicable, 10.3 will be the exclusive
remedy for (a) any breach or inaccuracy of any of the representations and warranties contained in Articles III through
V of this Agreement or (b) any breach of any of the covenants and agreements contained in this Agreement. Notwithstanding
the foregoing, nothing herein shall prevent any of the Buyer Indemnified Parties or Seller Indemnified Parties from bringing an
action based upon allegations of, or seeking any remedy in the case of, fraud, intentional misrepresentation or willful breach,
nor from obtaining specific performance or other equitable remedies.

 

10.5           No Circular Recovery. Effective as of the Closing, Sellers hereby waive and release any and all rights that any Seller
may have under this Agreement or otherwise (including pursuant to the Organizational Documents of any Company) for contribution
or reimbursement from any Company for any action taken or not taken by a Seller or such Company at or prior to the Closing with
respect to any matter that gives rise to a Buyer Loss for which a Seller Liability Determination is made pursuant to this Article
X.

 

 

 

 

    	 	50	 

     

    

 

10.6           Tax
Adjustment. To the extent permitted by applicable Law, Sellers and Buyer shall treat any payment made to a Buyer Indemnified
Party under this Article X as an adjustment to the Purchase Price for Canadian and U.S. federal and applicable state income
tax purposes, and shall complete and file all Tax Returns consistent with such treatment.

 

10.7           Types
of Losses. Notwithstanding any other term herein, neither any Seller nor Buyer will be obligated to any other Person for any
exemplary or punitive damages or Losses based thereon relating to the breach of any representation, warranty, covenant or other
agreement in this Agreement or in any ancillary document), except to the extent payable to a third party with respect to a Third
Party Action.

 

10.8           Materiality. Notwithstanding anything to the contrary in this Agreement, for purposes of determining whether there
has been a breach of any representation, warranty, covenant or other agreement in this Agreement or for purposes of calculating
the amount of Losses incurred by any indemnified party arising out of or resulting from any such breach, any references to a “Material
Adverse Effect” or “materiality” (or other correlative terms) will be disregarded except, that (i) the word “Material”
as used in the definition of “Material Contract” shall be given effect for each instance where the defined term “Material
Contract” is used and (ii) with respect to Section 4.8(m), and the definition of “Material Adverse Effect”
in Article I, such materiality qualifiers shall not be disregarded or not given effect.

 

10.9           Investigation.
The Buyer Indemnified Parties’ rights to indemnification pursuant to this Article X will not be affected by the knowledge
of, or any investigation undertaken or made by, Parent, US Sub, Canada Sub or any of their respective directors, officers, employees,
consultants, agents, accountants, attorneys or other representatives, Affiliates, successors or assigns prior to the Closing.

 

10.10         Insurance
and Third Party Recoveries. The computation of Losses pursuant to this Article X shall be made after deducting therefrom
any proceeds actually received by the indemnified party from any insurance policies with respect thereto (reduced by deductibles
paid, any costs of collection and, to the extent Buyer demonstrates that such increases are the result of such Losses, the portion
of any increase in premiums, deductibles and/or retro-premiums resulting from such Losses). In addition, any amount actually recovered
by an indemnified party from third parties with respect to a Loss which has already been paid by an indemnifying party to or on
behalf of an indemnified party (less any cost actually incurred by the indemnified party in the collection of such amount) shall
be promptly paid over by the indemnified party to the indemnifying party.

 

10.11     
   Offset Rights and Limitations.

 

(a)              
If any amounts are owing to any Buyer Indemnified Party from any Seller in accordance with this Agreement and such
amounts are not paid to such Buyer Indemnified Party within the appropriate time period specified in this Agreement, then, in each
case, such Buyer Indemnified Party may elect to (but will not be required to elect), if agreed upon by Buyer, pursue remedies directly
against such Seller, and may offset any amounts finally determined in accordance with this Agreement as owing by such Seller to
such Buyer Indemnified Party against the amount of any Earnout Payment owed to such Seller on a dollar for dollar basis pursuant
to the terms of this Section 10.11.

 

 

 

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(b)              
If any Buyer Indemnified Party chooses to offset any amounts finally determined in accordance with this Agreement
as owing by any Seller to such Buyer Indemnified Party against any Earnout Payment in accordance with Section 10.11(a),
such Buyer Indemnified Party will give notice in accordance with Section 13.5 to such Seller of its decision. Such Seller
will then have a period of fifteen (15) Business Days following receipt of such notice in which to elect to pay such Buyer
Indemnified Party in cash the amounts for which such Seller is liable. If such Seller does not pay such amounts in cash within
such fifteen (15)-Business Day period, such Buyer Indemnified Party may offset such amounts against the amount of any Earnout Payment
owed to such Seller on a dollar for dollar basis.

 

10.12         Survival.
Subject to the time limitations set forth in Section 10.1(d), all representations, warranties, covenants and obligations
in this Agreement and any closing certificate delivered pursuant to this Agreement will survive the Closing.

 

XI.            
Escrow

 

11.1           Escrow
Claims.

 

(a)              
At Closing, (i) Parent, Sellers and the Escrow Agent shall execute the Escrow Agreement and (ii) Parent shall cause
the Transfer Agent to issue in book-entry form, in the name of the Escrow Agent (solely in its capacity as Escrow Agent for Parent
and Sellers), in accordance with Section ‎2.6(f) and pursuant to the Escrow Agreement, a number of shares of Parent
Common Stock equal to (i) the Escrow Amount, divided by (ii) the Per Share Value (such shares of Parent Common Stock, together
with any dividends, distributions, earnings or other amounts accrued thereon, the “Escrowed Shares”), to be
held in book-entry form in the name of the Escrow Agent (solely in its capacity as Escrow Agent for Parent and Sellers) and disbursed
as provided in this Section 11.1 and the terms of the Escrow Agreement. The Escrow Agent shall act as escrow agent and safeguard
and disburse the Escrowed Shares pursuant to the terms and conditions of this Agreement and the Escrow Agreement. The Escrowed
Shares will not be subject to any Encumbrance or attachment of any creditor of any Party and will be used solely for the purposes
and subject to the conditions set forth in this Agreement and the Escrow Agreement.

 

(b)              
Subject to the applicable limitations set forth in Article X, any amounts due by Sellers to Buyer pursuant
to Article X shall first be satisfied from the Escrowed Shares. To the extent that Buyer is determined to be owed by Sellers
amounts in excess of the Escrow Amount, Sellers shall pay Buyer, within fifteen (15) Business Days following the applicable Seller
Liability Determination, an amount in cash equal to such excess by wire transfer of immediately available funds to the account
designated by Buyer.

 

(c)              
If Sellers do not dispute any claim made by Buyer against Sellers pursuant to Article X, Sellers and Parent
shall provide Joint Instructions to the Escrow Agent in accordance with the Escrow Agreement to cause the Transfer Agent to disburse
to Parent a number of Escrowed Shares equal to (i) the amount of the undisputed claim, divided by (ii) the Per Share Value.
If Sellers do dispute any claim made by Buyer pursuant to Article X, then upon the final non-appealable determination of
the amount in question (or a settlement between the applicable parties), as applicable, with respect to such claim, Sellers and
Parent shall provide Joint Instructions to the Escrow Agent in accordance with the Escrow Agreement to cause the Transfer Agent
to disburse to Parent a number of Escrowed Shares equal to (A) the amount determined by such final, non-appealable determination
or settlement to be due, divided by (B) the Per Share Value.

 

 

 

 

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(d)               On
the date that is two (2) Business Days after the first anniversary of the Closing Date, Sellers and Parent shall instruct the
Escrow Agent to cause the Transfer Agent to release to Sellers and/or their designees the then-remaining Escrowed Shares, less
the number of Escrowed Shares equal to (i) one hundred ten percent (110%) of the aggregate amount of all bona fide unsatisfied
claims for indemnification that Buyer has validly made against Sellers on or before such date pursuant to Article X and
which are subject to satisfaction (in whole or in part) from the Escrowed Shares, divided by (ii) the Per Share Value.

 

11.2           Release
from Escrow. When any Party becomes entitled to any distribution of all or any portion of the Escrowed Shares pursuant to
this Agreement and the Escrow Agreement, Sellers and Parent shall promptly execute and deliver to the Escrow Agent joint written
instructions, setting forth the number of Escrowed Shares to be released in book-entry form to such Party and otherwise prepared
in accordance with this Agreement and the Escrow Agreement (“Joint Instructions”). Buyer and each Seller agree
to confer as promptly as practicable and to use its, his or her commercially reasonable efforts to reach agreement as to the calculation
of and entitlement to such Escrowed Shares.

 

11.3           Escrow
Related Fees. All fees payable to the Escrow Agent pursuant to Section 6(a) of the Escrow Agreement shall be paid in equal
portions by Parent, on the one hand, and Sellers on the other hand.

 

XII.         
Tax Matters

 

12.1           Tax Returns; Payment of Taxes.

 

(a)              
Sellers shall prepare, or cause to be prepared, all Tax Returns of the Companies for all Pre-Closing Date Tax Periods
that are required to be filed after the Closing Date. Such Tax Returns shall be prepared on a basis consistent with past practices
of the Companies except to the extent otherwise required by this Agreement or applicable Law. Reasonably in advance of the due
date for filing of each such Tax Return, which in the case of income Tax Returns shall be no later than thirty (30) days prior
to the due date for filing each such Tax Return, Sellers shall deliver a copy of such Tax Return, together with all supporting
documentation and workpapers, to Buyer for its review and comment. Buyer will cause such Tax Return (as revised to incorporate
Buyer’s reasonable comments) to be timely filed and will provide a copy to Sellers. Not later than five (5) days prior to
the due date for payment of Taxes with respect to any Tax Return for a Pre-Closing Date Tax Period, Sellers shall pay to Buyer
the amount of any Seller Taxes with respect to such Tax Return.

 

 

 

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(b)              
Buyer shall prepare and file, or cause to be prepared and filed, all Tax Returns of the Companies for all Straddle
Periods. Such Tax Returns shall be prepared on a basis consistent with past practices of the Companies, except to the extent otherwise
required by this Agreement or applicable Law. Reasonably in advance of the due date for filing of each such Tax Return, Buyer shall
deliver a copy of such Tax Return, together with all supporting documentation and workpapers, to Sellers for its review and comment.
Buyer shall consider in good faith all reasonable comments provided by Sellers with respect to any such draft copy. Buyer will
cause such Tax Return to be timely filed and will provide a copy to Sellers. Not later than five (5) days prior to the due date
for payment of Taxes with respect to any Tax Return for a Straddle Period, Sellers shall pay Buyer the amount of any Seller Taxes
with respect to such Tax Return.

 

(c)              
For purposes of determining the portion of any Taxes for a Straddle Period that are Seller Taxes, the portion of
any such Taxes that is attributable to the portion of such Straddle Period ending on the Closing Date shall be:

 

(i)               in
the case of Taxes that are either (A) based upon or related to income or receipts, or (B) imposed in connection with any sale
or other transfer or assignment of property (real or personal, tangible or intangible), deemed equal to the amount that would
be payable if the Tax period of each Company ended with (and included) the Closing Date; provided, that exemptions,
allowances or deductions that are calculated on an annual basis (including depreciation and amortization deductions) shall be
allocated between the period ending on and including the Closing Date and the period beginning after the Closing Date in
proportion to the number of days in each period; and

 

(ii)             
in the case of Taxes that are imposed on a periodic basis with respect to the assets or capital of any Company, deemed
to be the amount of such Taxes for the entire Straddle Period (or, in the case of such Taxes determined on an arrears basis, the
amount of such Taxes for the immediately preceding period), multiplied by a fraction, the numerator of which is the number
of calendar days in the portion of the period ending on and including the Closing Date and the denominator of which is the number
of calendar days in the entire period.

 

12.2           Cooperation.
Buyer and Sellers shall cooperate fully as and to the extent reasonably requested by the other party, in connection with the filing
of Tax Returns and any audit, litigation or other proceeding (each a “Tax Proceeding”) with respect to Taxes
imposed on or with respect to the assets, operations or activities of any Company. Such cooperation shall include the retention
and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such
Tax Return or Tax Proceeding and making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. Sellers further agree, upon request, to use commercially reasonable efforts to
obtain any certificate or other document from any Governmental Entity or any other Person as may be necessary to mitigate, reduce
or eliminate any Tax that could be imposed on Buyer or any Company (including, but not limited to, with respect to the transactions
contemplated by this Agreement). Notwithstanding the above, the control and conduct of any Tax Proceeding that is a Third Party
Action shall be governed by Section 10.3.

 

 

 

    	 	54	 

     

    

 

12.3           Transfer
Taxes. Each of Buyer, on the one hand, and Sellers, on the other hand, shall be responsible for the payment of 50% of all
Transfer Taxes resulting from the transactions contemplated by this Agreement, if any. Buyer and Sellers shall cooperate in good
faith to minimize, to the extent permissible under applicable Law, the amount of any such Transfer Taxes.

 

12.4           Section
338(g) Election. Buyer may, in its sole discretion, make (and/or cause its applicable Affiliates to make) an election under
Section 338(g) of the Code and the Treasury Regulations promulgated thereunder (and any corresponding elections under any applicable
foreign, state or local Tax Law) with respect to the acquisition or deemed acquisition of the Companies, and Sellers shall cooperate
in good faith with Buyer in connection therewith. None of Sellers nor their respective Affiliates shall take or agree to take
any action that would prevent or impede, or would reasonably be expected to prevent or impede, the making of any election under
Section 338(g) of the Code.

 

12.5           Canadian Tax Elections.

 

(a)              
If it is determined that ChizComm Canada has made an “excessive eligible dividend designation” (as defined
in subsection 89(1) of the Tax Act) in respect of any dividend paid at or before the time of Closing, each Seller hereby concurs
(or shall cause the recipient of the relevant dividend to concur) in the making of an election under subsection 185.1(2) of the
Tax Act in respect of the full amount of any such excessive eligible dividend designation, and such election shall be made by ChizComm
Canada, in the manner and within the time prescribed by subsections 185.1(2) and 185.1(3) of the Tax Act; and

 

(b)              
If it is determined that ChizComm Canada has made an election under subsection 83(2) of the Tax Act in respect of
the full amount of any dividend payable by it at or before the time of Closing and the full amount of such dividend exceeded the
amount ChizComm Canada’s “capital dividend account” (as defined in the Tax Act) immediately before the dividend
became payable, each Seller hereby concurs (or shall cause the recipient of the relevant dividend to concur) in the making of an
election under subsection 184(3) of the Tax Act in respect of such dividend.

 

XIII.      
General

 

13.1           Press
Releases and Announcements. On or after the Closing Date, any public announcement, including any announcement to employees,
customers or suppliers and others having dealings with the Companies, or similar publicity with respect to this Agreement or the
transactions contemplated by this Agreement, will be issued, if at all, at such time and in such manner as Buyer shall determine
after giving Sellers reasonable opportunity to review and comment on such public announcement.

 

13.2           Expenses.
Except as otherwise expressly provided for in this Agreement, Sellers, on the one hand, and Buyer, on the other hand, will each
pay all expenses incurred by each of them (and, in the case of Sellers, by the Companies) in connection with the transactions
contemplated by this Agreement, including legal, accounting and consulting fees and expenses incurred in negotiating, executing
and delivering this Agreement and the other Transaction Documents.

 

 

 

    	 	55	 

     

    

 

13.3           Further
Assurances. On and after the Closing Date, the Parties will, and will cause their Affiliates to, from time to time after the
Closing, execute and deliver to the other Parties such documents and instruments and do such other things as may be reasonably
requested by the other Parties (and at such Parties’ expense) in order to more effectively consummate or document the transactions
contemplated by this Agreement and the Transaction Documents. From time to time after the Closing, the Parties shall cause their
appropriate employees and representatives to provide the other Parties with information and data reasonably requested by such
other Parties that is necessary or useful to the requesting Parties in connection with the current or former operation of the
business of the Companies, or in connection with the preparation of accounting and related reports and all Tax Returns with respect
to the Companies. The requesting Parties shall reimburse all reasonable out of pocket expenses incurred by the responding Parties
in connection therewith.

 

13.4           Entire
Agreement; Amendment and Waiver. This Agreement, together with all Exhibits and Schedules hereto and the other Transaction
Documents, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and thereof and supersedes
all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties,
including the Term Sheet. This Agreement may not be amended, nor may any provision of this Agreement or any default, misrepresentation,
or breach of representation, warranty or agreement under this Agreement be waived, except (a) in the case of any such amendment,
in a writing executed by Buyer and Sellers and (b) in the case of any such waiver, in a writing executed by (i) Buyer (if such
waiver is sought to be enforced against Buyer) or (ii) Sellers (if such waiver is sought to be enforced against Sellers). Except
as otherwise provided in this Agreement, neither the failure nor any delay by any Person in exercising any right, power or privilege
under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such
right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any
other right, power or privilege. In addition, no course of dealing between or among any Persons having any interest in this Agreement
will be deemed effective to modify or amend any part of this Agreement or any rights or obligations of any Person under or by
reason of this Agreement. The rights and remedies of the Parties are cumulative and not alternative.

 

13.5           Notices.
All notices and communications required or permitted to be given hereunder shall be in writing and shall be delivered personally,
or sent by overnight courier, or sent by facsimile or electronic mail (“email”) transmission (provided
that a receipt of such email is requested and received), addressed to the appropriate Party at the address for such Party shown
below or at such other address as such Party shall have theretofore designated by written notice delivered to the Party giving
such notice.

 

If to Buyer:

 

Genius Brands International

190 N. Canon, 4th Fl.

Beverly Hills CA 90210

Attn: Michael Jaffa, General Counsel

Facsimile No.:

Email:

 

 

 

    	 	56	 

     

    

 

With a copy to (which
shall not constitute notice):

 

Vinson & Elkins L.L.P.

1114 Avenue of the Americas, 32nd
Floor,

New York, New York 10036

Attn: Lawrence Elbaum

Facsimile No.:

Email:

 

and

 

Vinson & Elkins L.L.P.

2001 Ross Avenue, Suite 3700

Dallas, TX 75201-2975

Attn: Alan J. Bogdanow

Facsimile No.:

Email:

 

If to Sellers:

 

Harold Aaron Chizick

 

Email:

 

and

 

Jennifer Mara Chizick

 

Email:

 

With a copy to (which
shall not constitute notice):

 

Zukerman Gore Brandeis & Crossman,
LLP

11 Times Square

New York, NY 10036

Attn: David M. Farbman

Facsimile No.:

Email:

 

Any notice given in accordance herewith
shall be deemed to have been given only when delivered to the addressee in person, or by courier, or transmitted by facsimile or
email transmission during normal business hours on a Business Day (or if delivered or transmitted after normal business hours on
a Business Day or on a day other than a Business Day, then on the next Business Day), or upon actual receipt by the addressee during
normal business hours on a Business Day after such notice has been delivered to an overnight courier (or if delivered after normal
business hours on a Business Day or on a day other than a Business Day, then on the next Business Day). The Parties may change
the address and the email address to which such communications are to be addressed by giving written notice to the other Parties
in the manner provided in this Section 13.5.

 

 

 

    	 	57	 

     

    

 

13.6           Assignment.
Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any Party without the prior
written consent of the other Parties, except that Buyer may (a) assign any of its rights under this Agreement to any Affiliate
of Buyer or (b) collaterally assign any of its rights under this Agreement to any of its lenders, in each case so long as Buyer
(i) remain responsible for the performance of all of their respective obligations under this Agreement and (ii) provide Sellers
with prior written notice of such assignment. Subject to the foregoing, this Agreement and all of the provisions of this Agreement
will be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. The Trustees
hereby covenant and agree to require any successor or additional trustees of The Chizsix (2019) Family Trust to agree to be bound
by all of the Trustees’ obligations hereunder.

 

13.7           No
Third Party Beneficiaries. Except as otherwise provided in Article X, nothing expressed or referred to in this Agreement
confers any rights or remedies upon any Person that is not a Party or permitted assign of a Party.

 

13.8           Signatures;
Counterparts. This Agreement may be executed in one or more counterparts, any one of which need not contain the signatures
of more than one Party, but all such counterparts taken together will constitute one and the same instrument. A facsimile, electronic
or .pdf signature will be considered an original signature.

 

13.9           Governing
Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed
by and construed in accordance with the domestic laws of the State of New York, without giving effect to any choice or conflict
of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws
of any jurisdiction other than the State of New York.

 

13.10     
   Arbitration.

 

(a)              
Except as provided in Section 13.11, any controversy or claim arising out of or relating to this Agreement
(or the Exhibits hereto) or any of the transactions contemplated hereby (“Dispute”), shall be settled by arbitration
administered by the AAA under its Commercial Arbitration Rules then in effect (the “Arbitration Rules”), by
one (1) arbitrator (the “Arbitration Proceeding”). Any decision or award of the arbitrator shall be final, binding
and conclusive on the Parties and their respective Affiliates and may be entered in any court having jurisdiction thereof. The
place of arbitration shall be New York, New York. The parties to any such Dispute agree to equally split the costs of any arbitration,
including the administrative fee, the compensation of the arbitrator, and the expenses of any witnesses or proof produced at the
direct request of the arbitrator; provided, however, that the arbitrator shall award to the prevailing party, as
determined by the arbitrator, if any, all of its costs and fees reasonably incurred in the prosecution or defense of the Dispute.
“Costs and fees” means all reasonable expenses of the arbitration, including the arbitrator’s fees, administrative
fees, travel expenses, out-of-pocket expenses such as copying and electronic vendor expenses, court costs, witness fees (including
expert witness fees), and attorneys’ fees.

 

 

 

 

    	 	58	 

     

    

 

(b)              
The Parties shall keep confidential the Arbitration Proceeding and any decisions and awards rendered by the arbitrator,
and shall not disclose any information regarding any arbitration proceeding (including the existence of any arbitration proceeding
and any resulting decisions or awards) except (i) as may be necessary to prepare for or conduct the arbitration hearing on
the merits, (ii) as may be necessary in connection with a court application as contemplated by Section 13.11,
(iii) to its current or prospective advisors, lenders, investors or acquirers, or (iv) as otherwise required by Law or
a Court Direction.

 

13.11         Injunctive Relief; Consent to Jurisdiction. Nothing in Section 13.10 shall limit the ability of a party to
seek a temporary restraining order or other injunctive relief (“Suit for Temporary Relief”) before the arbitrator
has assumed control of the Arbitration Proceeding contemplated by Section 13.10, provided that a party bringing a
Suit for Temporary Relief initiates the Arbitration Proceeding on the same day it brings such Suit for Temporary Relief. The Parties
agree that any Suit for Temporary Relief shall be brought only and exclusively in any Federal or State court sitting in the Borough
of Manhattan in the city of New York. Each of the Parties hereby irrevocably submits to the jurisdiction of any Federal or State
court sitting in the Borough of Manhattan in the city of New York in any action, suit, or proceeding (a) for any Suit for Temporary
Relief, (b) to compel arbitration in accordance with Section 13.10 or (c) to enforce any arbitration decisions or awards,
and agrees that any such actions, suits, or proceedings shall be brought only in such courts; provided, however,
that such consent to jurisdiction is solely for the purpose referred to in this Section 13.11 and shall not be deemed to
be a general submission to the jurisdiction of said courts other than for such purpose. Each of the Parties hereby irrevocably
waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue of any
such action, suit or proceeding brought in such a court and any claim that any such action, suit or proceeding brought in such
a court has been brought in an inconvenient forum.

 

13.12         Waiver
of Trial by Jury. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS
AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (C) IT MAKES SUCH WAIVERS VOLUNTARILY AND (D) IT HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 13.12.

 

13.13         Specific
Performance. Each of the Parties acknowledges and agrees that the subject matter of this Agreement, including the Business
and the Assets, is special, unique and of extraordinary character, that the other Parties would be damaged irreparably in the
event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached,
and that the remedies at law would not be adequate to compensate such other Parties not in default or in breach. Accordingly,
each of the Parties agrees that the other Parties will be entitled (at any time prior to the valid termination of this Agreement
pursuant to Section 9.1) to, in accordance with the provisions of Section 13.11, seek an injunction or injunctions
to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions
of this Agreement in addition to any other remedy to which they may be entitled, at law or in equity, without the necessity of
proving actual damages or posting of a bond. If any such action is brought by Buyer to enforce this Agreement, each of the other
Parties hereby waives the defense that there is an adequate remedy at law.

 

 

 

 

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13.14         Construction.

 

(a)                Each
Person party hereto agrees that they have been represented by counsel during the negotiation and execution of this Agreement and,
therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement
or other document will be construed against the party drafting such agreement or document. The Parties intend that each representation,
warranty and covenant contained herein shall have independent significance. If any Person party hereto has breached any representation,
warranty or covenant contained herein (or is otherwise obligated to provide indemnification) in any respect, the fact that there
exists another representation, warranty or covenant (including any indemnification provision) relating to the same subject matter
(regardless of the relative levels of specificity) which such Person has not breached (or is not otherwise entitled to indemnification
with respect thereto) shall not detract from or mitigate the fact that such Person is in breach of the first representation, warranty
or covenant (or is otherwise entitled to indemnification pursuant to a different provision).

 

(b)               Where
specific language is used to clarify by example a general statement contained herein (such as by using the word “including”),
such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement
to which it relates. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of
such terms. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine
or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa. The words “include”
and “including,” and other words of similar import when used herein shall not be deemed to be terms of limitation
but rather shall be deemed to be followed in each case by the words “without limitation.” The word “if”
and other words of similar import when used herein shall be deemed in each case to be followed by the phrase “and only if.”
The words “herein,” “hereto,” and “hereby” and other words of similar import in this Agreement
shall be deemed in each case to refer to this Agreement as a whole and not to any particular Article, Section or other subdivision
of this Agreement. Any reference herein to “dollars” or “$” shall mean United States dollars (unless expressly
provided otherwise in this Agreement). The term “or” shall be deemed to mean “and/or.” Any reference to
any particular Code section or any other law will be interpreted to include any revision of or successor to that section regardless
of how it is numbered or classified and any reference herein to a Governmental Entity shall be deemed to include reference to
any successor thereto. Any reference herein to “delivered,” “provided” or “made available”
to Buyer means, with respect to any document or information, that the same has been made available to Buyer in writing with unrestricted
access for a continuous period of at least two (2) Business Days prior to the Execution Date by means of ChizComm One Drive under
the title “Genius Brands Shared” unless otherwise waived by Buyer.

 

 

 

 

    	 	60	 

     

    

 

(c)              
The captions used in this Agreement and descriptions of the Schedules referred to in Article III and Article
IV are for convenience of reference only and do not constitute a part of this Agreement and shall not be deemed to limit, characterize
or in any way affect any provision of this Agreement, and all provisions of this Agreement shall be enforced and construed as if
no such caption or description had been used in this Agreement.

 

13.15     
   Time of Essence. With regard to all dates and time periods set forth or referred to in this Agreement, time is of
the essence.

 

13.16         Confidentiality.
Sellers expressly acknowledge and agree that the records, books, data, and other confidential information concerning the products,
services, accounts, client development (including customer, supplier and prospect lists), sales activities and procedures, promotional
and marketing techniques, plans and strategies, financing, development and expansion plans and credit and financial data concerning
customers and suppliers and other information involving the Companies obtained by a Seller through such Seller’s past or
future affiliation with the Companies is confidential and in the nature of trade secrets and are valuable, special and unique
assets of the Companies, access to knowledge of which is essential to preserve the good will and going business value of the Companies
for the benefit of Buyer and its Affiliates. In recognition of the highly competitive nature of the industry in which the Business
will be conducted, Sellers further agrees that all knowledge and information described in the preceding sentence not in the public
domain (unless such knowledge and information is in the public domain as a result of a breach of this Agreement or any other confidentiality
agreement) and heretofore or in the future obtained by any Seller as a result of such Seller’s past affiliation with the
Companies shall be considered confidential information (collectively, the “Confidential Information”). In recognition
of the foregoing, Sellers hereby agree that Sellers will not disclose, or cause to be disclosed, any of the Confidential Information
to any Person for any reason or purpose whatsoever, except and to the extent such disclosure is solely for the direct benefit
of Buyer or its Affiliates or is required by Law or appropriate court order and written notice thereof, if practicable, is provided
to Buyer not less than ten (10) Business Days prior to such disclosure, nor shall any Seller make use of any of the Confidential
Information, other than information that is in the public domain (unless such information is in the public domain as a result
of a breach of this Agreement or any other confidentiality agreement), for such Seller’s own purposes or for the benefit
of any Person (except Buyer or its Affiliates) under any circumstances.

 

13.17         Seller
Release. Effective as of the Closing, each Seller hereby releases and forever discharges each Company and each of its past
and present officers, directors, employees and agents (individually, a “Releasee” and collectively, the “Releasees”)
from any and all claims, demands, actions, arbitrations, audits, hearings, investigations, litigations, suits (whether civil,
criminal, administrative, investigative or informal), causes of action, orders and liabilities whatsoever, whether known or unknown,
suspected or unsuspected, contingent or otherwise, both at law and in equity, of any kind, character or nature whatsoever (“Claims”)
which such Seller now has or has ever had against the respective Releasees however arising and that relate in any way to such
Seller’s indirect or direct ownership of any Ownership Interest in any Company, including the Equity Interests. The scope
of the release shall include all Claims (a) relating to a breach of any fiduciary duty owed by the Releasees to any Company and
arising from any such Ownership Interest or (b) relating to any breach of the Organizational Documents of any Company, as such
may be amended; provided, however, that the foregoing release and discharge shall not release (i) Buyer of its obligations
or liabilities to such Seller pursuant to this Agreement, or (ii) any benefits under the Plans, including Welfare Benefit plans,
practices, policies and programs provided by any Company arising prior to the Closing in connection with the employment of such
Seller. Each Seller understands and agrees that it is expressly waiving all Claims against the Releasees covered by this Section
13.17, including those Claims that it may not know of or suspect to exist which, if known, may have materially affected the
decision to provide this Agreement, and such Seller expressly waives any rights under applicable Law that provide to the contrary.
Each Seller hereby ratifies each and every amendment to the Organizational Documents of any Company and each and every merger
of any Company or any of its respective predecessors effected at a time prior to the Closing when such Seller owned any Ownership
Interests of such Company or any such predecessor.

 

 

 

 

    	 	61	 

     

    

 

13.18         Liability
of Buyer Affiliates. Neither any direct or indirect holder of Ownership Interests in Parent, US Sub or Canada Sub, nor any
past, present or future member, director, manager, officer, employee, agent, advisor, financing source or Affiliate of Parent,
US Sub or Canada Sub (other than Buyer itself) or of any such holder, shall have any liability or obligation of any nature whatsoever
in connection with, arising out of, or relating to or under this Agreement, any agreement contemplated by this Agreement or the
transactions contemplated by this Agreement or such other agreement, and each Seller hereby waives and releases all claims of
any such liability and obligation.

 

[Remainder of page intentionally left blank;
signature pages follow.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	62	 

     

    

 

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

 

	 	BUYER:
	 	 
	 	GENIUS BRANDS INTERNATIONAL, INC., a Nevada corporation
	 	 
	 	By: /s/ Michael A. Jaffa              
	 	Name: Michael A. Jaffa
	 	Title: Chief Operating Officer
	 	 
	 	 
	 	2811210 Ontario Inc., a company organized under the laws of the
    Province of Ontario
	 	 
	 	By: /s/ Michael A. Jaffa              
	 	Name: Michael A. Jaffa
	 	Title: Vice President
	 	 
	 	 
	 	GBI Acquisition LLC, a New Jersey limited liability company
	 	 
	 	By: /s/ Michael A. Jaffa              
	 	Name: Michael A. Jaffa
	 	Title: Authorized Person
	 	 
	 	 
	 	 

 

 

 

[Signature pages continue on the following
page]

 

 

 

    	 	63	 

     

    

 

 

	 	SELLERS:
	 	 
	 	 
	 	/s/ Harold Aaron Chizick                        
	 	Harold Aaron Chizick
	 	 
	 	/s/ Jennifer Mara Chizick                        
	 	JENNIFER MARA CHIZICK
	 	 
	 	 
	 	Wishing Thumbelina Inc., a company organized under the laws of the
    Province of Ontario
	 	 
	 	By: /s/ Harold Aaron Chizick                        
	 	Name:Harold Aaron Chizick
	 	Title:President
	 	 
	 	 
	 	Harold Aaron Chizick and JENNIFER MARA CHIZICK, trustees of The
Chizsix (2019) Family Trust for and on behalf of Harold Aaron Chizick, Jennifer Mara Chizick and Jay Mark Sonshine,
the trustees of The Chizsix (2019) Family Trust, a trust settled under the laws of the Province of Ontario
	 	 
	 	 
	 	By: /s/ Harold Aaron Chizick                        
	 	Name:Harold Aaron Chizick
	 	Title:Trustee
	 	 
	 	By: /s/ Jennifer Mara Chizick                        
	 	Name: Jennifer Mara Chizick
	 	Title:Trustee
	 	 
	 	 

 

 

 

 

    	 	64	 

     

    

EXHIBIT C

 

Earnout Matters

 

1. Defined Terms. As used in this Exhibit C, the
following terms shall have the following meanings:

 

“Accelerated Earnout Payment”
has the meaning set forth in Section 5.a of this Exhibit C.

 

“Application Download”
means an initial download of the Software Application on to a device by a natural person that is located in the United States or
Canada who (a) is not a computer-generated user, including a robot, spider, computer script or other automated, artificial or fraudulent
method or component intended to imitate a natural person, (b) has not been paid or otherwise incentivized to download the Software
Application by Sellers or any third party acting on behalf of Sellers after the Earnout Effective Date, and (c) is not found to
be a duplicate user or otherwise fraudulent by Buyer or by third party vendors that may, from time to time, be engaged by Buyer.

 

“Change in Control” means the occurrence
of any of the following events:

 

		a.	any “person” within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act
(other than Parent or any company owned, directly or indirectly, by the stockholders of Parent in substantially the same proportions
as their ownership of stock of Parent) becomes the “beneficial owner” within the meaning of Rule 13d-3 promulgated
under the Exchange Act of 50% or more of the combined voting power of the then outstanding securities of Parent entitled to vote
generally in the election of directors; excluding, however, any circumstance in which such beneficial ownership resulted from
any acquisition by Parent, an employee benefit plan (or related trust) sponsored or maintained by Parent or by any corporation
controlling, controlled by, or under common control with, Parent;

 

		b.	a reorganization, recapitalization, merger, consolidation or similar form of corporate transaction,
or the sale, transfer, or other disposition of all or substantially all of the assets of Parent to an entity that is not an Affiliate
(each of the foregoing events, a “Corporate Transaction”) involving Parent, unless securities representing 50%
or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors
of Parent or the corporation resulting from such Corporate Transaction, including a corporation that, as a result of such transaction
owns all or substantially all of Parent’s assets (or the direct or indirect parent of such corporation), are held immediately
subsequent to such transaction by the person or persons who were the beneficial holders of the outstanding voting securities entitled
to vote generally in the election of directors of Parent immediately prior to such Corporate Transaction, in substantially the
same proportions as their ownership immediately prior to such Corporate Transaction; or

 

		c.	approval by the stockholders of Parent of a complete liquidation or dissolution of Parent, unless
such liquidation or dissolution is part of a transaction or series of transactions described in clause (b) above that does not
otherwise constitute a Change in Control.

 

“Combined EBITDA” means
the combined EBITDA of (a) ChizComm US, as derived from the applicable financial statements of ChizComm US, (b) ChizComm Canada,
as derived from the applicable financial statements of ChizComm Canada, in each case, as of the end of the applicable twelve (12)-month
period during the Earnout Period and prepared in accordance with GAAP, and (c) twenty percent (20%) of Buyer’s global consumer
product licensing revenue, as of the end of the applicable twelve (12)-month period during the Earnout Period, in excess of $750,000.

 

“Earnout Adjustments”
has the meaning set forth in Section 4.d of this Exhibit C.

 

 

 

 

    	 	[Exhibit C-1]	 

     

    

 

“Earnout Effective Date”
means February 1, 2021.

 

“Earnout Payment Date”
has the meaning set forth in Section 4.f of this Exhibit C.

 

“Earnout Payment” means
any Net Download Earnout Payment, EBITDA Earnout Payment or Accelerated Earnout Payment.

 

“Earnout Period” means
the period beginning on the Earnout Effective Date and ending on the day immediately prior to the fourth (4th) anniversary
of the Earnout Effective Date.

 

“Earnout Review Period”
has the meaning set forth in Section 4.b of this Exhibit C.

 

“Earnout Statement”
has the meaning set forth in Section 4.a of this Exhibit C.

 

“EBITDA” means earnings
before interest, tax, depreciation and amortization. For purposes of this Exhibit C, “EBITDA” shall (a)
exclude any earnings or losses generated as a result of any acquisition by Buyer or any of its Affiliates of any Ownership Interests
in, or a material portion of the assets of, another Person made after the Closing, whereby from and after such acquisition, any
of the Companies owns, directly or indirectly, such Ownership Interests in, or material assets of, such Person, (b) as between
ChizComm Canada and ChizComm US, be calculated net of any intercompany items and (c) exclude Buyer’s overhead and general
and administrative costs expenses (but not third party charges, costs and expenses) allocated to any of the Companies.

 

“EBITDA Earnout Payment”
has the meaning set forth in Section 3.a.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time, or any successor statute or statutes thereto. Reference to any
specific Exchange Act section shall include any successor section.

 

“Net Download Amount”
means, with respect to each applicable twelve (12)-month period during the Earnout Period, an amount equal to (a) the total number
of Application Downloads as of the first (1st) day of such twelve (12)-month period, plus (b) the total number
of additional Application Downloads made during such period, less (c) the total number of such existing or additional Application
Downloads that have not been active for a period of at least ninety (90) days or are terminated during such period.

 

“Net Download Earnout Payment”
has the meaning set forth in Section 2.a.

 

“Software Application”
means the Buyer’s “Kartoon Channel!” software application.

 

“Statement of Earnout Objections”
has the meaning set forth in Section 4.c.

 

All other capitalized terms not otherwise defined in this Exhibit
C shall have the meanings set forth for such terms in that certain Purchase and Sale Agreement, dated as of February 1, 2021,
by and between (a) (i) Genius Brands International, Inc., a Nevada corporation (“Parent”), (ii) GBI Acquisition
LLC, a New Jersey limited liability company (“US Sub”), and (iii) 2811210 Ontario Inc., a company organized
under the laws of the Province of Ontario (“Canada Sub” and together with Parent and US Sub, “Buyer”),
on the one hand, and (b) (i) Harold Aaron Chizick, a resident of Canada, (ii) Jennifer Mara Chizick, a resident of Canada, (iii)
Wishing Thumbelina Inc., a company organized under the laws of the Province of Ontario (“Wishing Thumbelina”),
and (iv) Harold Aaron Chizick and Jennifer Mara Chizick, the trustees of The Chizsix (2019) Family Trust for and on behalf of Harold
Aaron Chizick, Jennifer Mara Chizick and Jay Mark Sonshine, the trustees of The Chizsix (2019) Family Trust, a trust settled under
the laws of the Province of Ontario (the “Trustees”) (each a “Seller” and, collectively,
“Sellers”), on the other hand (the “Purchase and Sale Agreement”).

 

 

 

 

    	 	[Exhibit C-2]	 

     

    

 

		2.	Net Download Based Earnout Payments.

 

		a.	If as of the day immediately prior to the first (1st) annual anniversary of the Earnout
Effective Date and each subsequent annual anniversary thereafter during the Earnout Period, the Net Download Amount for the applicable
twelve (12)-month period during the Earnout Period exceeds the greater of (i) 2,000,000 and (ii) the highest Net Download Amount
for any prior twelve (12)-month period during the Earnout Period, if applicable, then Parent shall deliver to Sellers pursuant
to Section 2.c a number of shares of Parent Common Stock equal to (A) an amount equal to (x) such excess amount, times
(y) 1.5 (each such amount, if any, a “Net Download Earnout Payment”), divided by (B) the Per Share Value.

 

		b.	For example:

 

		i.	if as of the first (1st) anniversary of the Earnout Effective Date, the Net Download
Amount is equal to 2,500,000, then Sellers will be entitled to receive the Net Download Earnout Payment of $750,000 (i.e., [2,500,000
– 2,000,000] x 1.5) with respect to Year 1 (as defined below) of the Earnout Period;

 

		ii.	if as of the second (2nd) anniversary of the Earnout Effective Date, the Net Download
Amount is equal to 2,300,000, then Sellers will not be entitled to any Net Download Earnout Payment with respect to Year 2 (as
defined below) of the Earnout Period; and

 

		iii.	if as of the third (3rd) anniversary of the Earnout Effective Date, the Net Download
Amount is equal to 3,000,000, then Sellers will be entitled to receive the Net Download Earnout Payment of $750,000 (i.e., [3,000,000
– 2,500,000] x 1.5) with respect to Year 3 (as defined below) of the Earnout Period.

 

		iv.	For purposes of the examples set forth in this Section 2.b, each twelve (12)-month period
ending on the day immediately prior to the first (1st) annual anniversary of the Earnout Effective Date and each subsequent
annual anniversary thereafter during the Earnout Period, is referred to herein as “Year 1,” “Year 2,”
“Year 3” and “Year 4,” respectively, as applicable.

 

		c.	Parent shall make any Net Download Earnout Payment by delivering to each Seller or their designees,
no later than the Earnout Payment Date and pursuant to the applicable Subscription Agreement, a number of shares of Parent Common
Stock in book-entry form representing such Seller’s Pro Rata Share of such Net Download Earnout Payment.

 

		d.	Notwithstanding the foregoing and for the avoidance of doubt, in no event shall Sellers be entitled
to receive or Buyer or any of its Affiliates be required to make, during the Earnout Period, in the aggregate, Net Download Earnout
Payments in excess of $4,000,000.

 

		3.	Determination of EBITDA Based Earnout Payments.

 

		a.	If as of the day immediately prior to the first (1st) annual anniversary of the Earnout
Effective Date and each subsequent annual anniversary thereafter during the Earnout Period, the Combined EBITDA for the applicable
twelve (12)-month period during the Earnout Period exceeds the greater of (i) $1,000,000 and (ii) the highest Combined EBITDA for
any prior twelve (12)-month period during the Earnout Period, if applicable, then Parent shall deliver to Sellers pursuant to Section
3.b a number of shares of Parent Common Stock equal to (A) an amount equal to (x) such excess amount, times (y) 1.5
(each such amount, if any, an “EBITDA Earnout Payment”), divided by (B) the Per Share Value. The examples
set forth in Section 2.b apply mutatis mutandis to the calculation of any applicable EBITDA Earnout Payment.

 

 

 

 

    	 	[Exhibit C-3]	 

     

    

 

		b.	Parent shall make any EBITDA Earnout Payment by delivering to each Seller or their designees, no
later than the Earnout Payment Date and pursuant to the applicable Subscription Agreement, a number of shares of Parent Common
Stock in book-entry form representing such Seller’s Pro Rata Share of such EBITDA Earnout Payment.

 

		c.	Notwithstanding the foregoing and for the avoidance of doubt, in no event shall Sellers be entitled
to receive or Buyer or any of its Affiliates be required to make, during the Earnout Period, in the aggregate, EBITDA Earnout Payments
in excess of $4,000,000.

 

		4.	Procedures Applicable to Determination of Earnout Payments.

 

		a.	No later than sixty (60) days after the last day of the applicable twelve (12)-month period during
the Earnout Period, Buyer shall prepare, or cause to be prepared, and deliver to Sellers a statement (each, an “Earnout
Statement”) setting forth Buyer’s proposed calculation of (i) the Combined EBITDA, (ii) the Net Download Amount
and (iii) the resulting Earnout Payment (if any) for such twelve (12)-month period, in each case, accompanied by reasonably detailed
information and supporting documentation showing Buyer’s calculation thereof.

 

		b.	For the thirty (30)-day period immediately following the date on which Sellers receive an Earnout
Statement (the “Earnout Review Period”), Buyer will provide Sellers full access at all reasonable times to any
books and records, facilities, personnel or other materials in the possession or reasonable control of Buyer that Sellers reasonably
request in order to review and confirm the accuracy of such Earnout Statement or to prepare or defend any Statement of Earnout
Objections.

 

		c.	If Sellers believe that an Earnout Statement has not been prepared as required by this Exhibit
C or the Purchase and Sale Agreement or does not accurately reflect the information and supporting documentation provided by
Buyer, Sellers may deliver to Buyer, on or before the last day of the Earnout Review Period, a written statement setting forth
in reasonable detail Sellers’ objections to such Earnout Statement and impact of such objections on the resulting Earnout
Payment (if any) (each, a “Statement of Earnout Objections”). If Sellers fail to deliver a Statement of Earnout
Objections to Buyer during the Earnout Review Period, such Earnout Statement shall be deemed to have been accepted by Sellers and
shall be final and binding on the Parties, and the components of such Earnout Statement shall be used in computing the applicable
Earnout Payment. If Sellers deliver a Statement of Earnout Objections to Buyer during the Earnout Review Period, the Parties shall
negotiate in good faith to resolve such objections. If the Parties agree in writing to the resolution of all such objections, such
Earnout Statement, as adjusted to reflect such resolutions, shall be final and binding on the Parties, and the components of such
Earnout Statement shall be used in computing the applicable Earnout Payment.

 

		d.	If the Parties fail to agree in writing to the resolution of all the objections set forth in a
Statement of Earnout Objections within the thirty (30)-day period immediately following the date on which such Statement of Earnout
Objections was delivered to Buyer, then any objections remaining in dispute may be submitted by Sellers or Buyer for resolution
to the Accounting Expert (it being understood that such Accounting Expert shall be selected in the same manner as provided in Section
2.3(g) of the Purchase and Sale Agreement). Within fifteen (15) days of such submission, each Party shall submit, in writing,
to the Accounting Expert and the other Parties a statement of the position of such Party as to the calculations of the Combined
EBITDA and the Net Download Amount for the applicable twelve (12)-month period during the Earnout Period and the amount of the
resulting Earnout Payment, if any. The Accounting Expert shall resolve the remaining objections acting as an expert in accounting
and not as an arbitrator and adjust the applicable Earnout Statement to reflect such resolutions and any other adjustments previously
agreed by the Parties in writing (collectively, the “Earnout Adjustments”). Each Party will, and will cause
the Affiliates of such Party to, make readily available to the Accounting Expert all books and records, work papers, personnel
and other materials within the possession or control of such Party or such Affiliates that the Accounting Expert shall reasonably
request in order to resolve the remaining objections. In the event any remaining objections are submitted for resolution to an
Accounting Expert pursuant to this Section  4.d, the non-prevailing Party, as determined by the Accounting Expert,
agrees to bear the fees and expenses of the Accounting Expert and to reimburse the prevailing Party for all costs and expenses,
including attorneys’ fees, incurred by the prevailing Party in connection with such dispute.

 

 

 

 

    	 	[Exhibit C-4]	 

     

    

 

		e.	The Accounting Expert shall resolve all objections submitted to it and shall adjust the applicable
Earnout Statement to reflect the Earnout Adjustments as soon as practicable and in no event later than forty-five 45 days after
the day on which it is retained to provide such services (or such other time as the Parties hereto shall agree in writing). The
Accounting Expert shall be authorized to select only the position of either Buyer, on the one hand, or Sellers, on the other hand,
in each case, as presented by the applicable Party or Parties in a statement delivered to the Accounting Expert and the other Parties
in connection with the applicable dispute pursuant to Section 4.d. The Accounting Expert’s resolution of such objections
and Earnout Adjustments shall be made in accordance with the provisions of this Exhibit C, the Purchase and Sale Agreement
and GAAP shall be based solely on written materials submitted by Buyer and Sellers and on the definitions of “EBITDA,”
“Combined EBITDA,” “Net Download Amount,” “EBITDA Earnout Payment” and
“Net Download Earnout Payment” (and related definitions) contained herein and therein, and shall be final and
binding on the Parties (absent manifest error), and the components of the applicable Earnout Statement, as adjusted by the Earnout
Adjustments shall be used in computing the applicable Earnout Payment.

 

		f.	Any Earnout Payment that Parent is required to make pursuant to Section 2, Section 3
or Section 5 hereof shall be paid in full, less the amount of any offset permitted under Section 10.11 of
the Purchase and Sale Agreement, (i) in the event of any Net Download Payment or EBITDA Earnout Payment, no later than ten (10)
Business Days after the first (1st) day on which the applicable Earnout Statement (including any adjustments thereto)
becomes final and binding on the Parties as provided above and (ii) in the event of an Accelerated Earnout Payment, no later than
ten (10) Business Days after the date of the occurrence of the Change in Control (each, an “Earnout Payment Date”).

 

		g.	Notwithstanding anything to the contrary in this Exhibit C, if Buyer reasonably determines
in good faith that, as of the date any Earnout Payment is payable in accordance with Section 4.f, any Seller has breached
or is breaching such Seller’s obligations set forth in Section 6.3 of the Purchase and Sale Agreement, then Buyer
will not owe nor be obligated to pay any Earnout Payment payable on such Earnout Payment Date.

 

		h.	For the avoidance of doubt and subject to any Earnout Adjustments pursuant to this Section 4,
the terms of Section 4.g of this Exhibit C and Section 10.11 of the Purchase and Sale Agreement, no earnout payments or
additional consideration shall be payable to Sellers pursuant to this Exhibit C or the Purchase and Sale Agreement for any
period on or after the end of the Earnout Period.

 

		i.	Notwithstanding anything to the contrary set forth in this Exhibit C, any Earnout Payment that
Sellers are entitled to receive under this Exhibit C shall be reduced by (a) any portion of such Earnout Payment payable
to employees of any Company or any of its Subsidiaries (including Donna McNeil and Kathleen Campisano) pursuant to the terms of
any Contract between any such employee and any Company or any of its Subsidiaries in effect as of the Closing Date (or any amendment
thereto; provided that any such amendment shall require prior written consent of Parent and Sellers) or the terms of any
Contract between any such employee and any Company or any of its Subsidiaries entered into from and after the Closing Date (provided
that any such additional Contract that provides for a portion of any Earnout Payment to be paid to an employee of any Company or
any of its Subsidiaries shall require prior written consent of Parent and Sellers), plus (b) an amount equal to the Companies’
portion of any payroll, social insurance, or other Taxes payable thereon.

 

		5.	Acceleration.

 

		a.	Upon the occurrence of a Change in Control during the Earnout Period, Sellers shall be entitled
to receive, and Parent shall deliver to Sellers pursuant to Section 5.b, a number of shares of Parent Common Stock equal
to (A) an amount equal to (x) $8,000,000, less (y) the aggregate amount of Earnout Payments already made pursuant to this
Exhibit C (such amount, the “Accelerated Earnout Payment”), divided by (B) the Per Share Value.
After satisfaction of Buyer’s obligations under this Section 5, neither Buyer nor any of its Affiliates shall have
any further obligation to Sellers under this Exhibit C or otherwise with respect to any Earnout Payment.

 

 

 

 

    	 	[Exhibit C-5]	 

     

    

 

		b.	Parent shall make the Accelerated Earnout Payment by delivering to each Seller or their designees,
no later than the Earnout Payment Date and pursuant to the applicable Subscription Agreement, a number of shares of Parent Common
Stock in book-entry form representing such Seller’s Pro Rata Share of the Accelerated Earnout Payment; provided that
all lock-up and other contractual restrictions on transfer of the shares of the Parent Common Stock, other than those imposed by
applicable Laws, shall not apply.

 

		6.	Additional Earnout Covenants.

 

		a.	The Parties acknowledge and agree that during the Earnout Period, except as expressly provided
to the contrary in the Purchase and Sale Agreement, (i) the senior management of the Companies on the date of Closing will be afforded
operational independence with respect to the conduct of the Business and the ownership and operation of the assets and properties
of the Companies, subject to any customary board and stockholder approval rights and subject to Buyer’s control and direction
with respect to key performance indicators and budget maintenance, (ii) the Earnout Payments are speculative and are subject to
numerous factors outside the control of Buyer and its Affiliates, and (iii) there is no assurance that any Seller will receive
any Earnout Payment and neither Buyer nor any of its Affiliates have promised or projected any Earnout Payment.

 

		b.	The Parties acknowledge and agree that during the Earnout Period, the Companies will exclusively
manage and operate all aspects of the marketing and advertising activities and functions for and on behalf of Buyer and its Affiliates
and will exclusively exercise all authority as is customarily exercised in such capacities, in each case, subject to customary
consent and approval rights of Buyer and its Affiliates, as applicable.

 

		c.	During the Earnout Period, Sellers shall use their reasonable best efforts to ensure that the Software
Application is downloaded by bona fide human users (primarily comprising of families with children aged 0-11), not by (i) computer-generated
users, including robots, spiders, computer scripts or other automated, artificial or fraudulent methods intended to imitate a natural
person, or (ii) users who have been paid or otherwise incentivized to download the Software Application by Sellers or any third
party action on behalf of Sellers.

 

		7.	Successors and Assigns. The Parties intend that the terms and provisions of this Exhibit
C be binding on, and enforceable by Sellers and their respective heirs, successors and assigns against, Buyer and all subsequent
owners of all or any part of the Equity Interests in, or all or substantially all of the assets of, the Companies or their respective
successors and assigns. Buyer shall cause any conveyance of all or any part of the Equity Interests in, or all or substantially
all of the assets of, the Companies to be made expressly subject to the terms and provisions of this Exhibit C. Notwithstanding
the foregoing, no Seller shall assign any of its rights or interests in or to any of the Earnout Payments (other than for bona
fide estate planning purposes, for assignments to immediate family members and for partial assignments to Donna McNeil and/or
Kathleen Campisano) without the prior written consent of Buyer.

 

 

 

 

 

 

    	 	[Exhibit C-6]Exhibit 10.1

 

STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT (“SPA”) is made and becomes effective as of the date of the last signature (the “Effective
Date”), by and among MARK D. WILLIAMS, COLIN GIBSON, and THE ROBERT AND JOANNA WILLIAMS TRUST (“Sellers”)
and EHAVE INC., an Ontario corporation (“Purchaser”).

 

Premises

 

A.
Sellers are principal shareholders of 20/20 Global, Inc., a Nevada corporation (“20/20 Global”), a publicly
traded, fully reporting company that is current in its periodic reporting requirements under the Securities Exchange Act of 1934,
as amended. 20/20 Global ceased active business operations in January 2020.

 

B.
Purchaser owns beneficially and of record 100% of the issued and outstanding shares of capital stock (the “MYC Stock”)
of Mycotopia Therapies Inc., a Florida corporation (“MYC”).

 

C.
On November 28, 2020, Purchaser, 20/20 Global, and MYC entered into a term sheet (the “Term Sheet”) outlining
the terms and conditions of a reorganization transaction which includes: (i) Purchaser purchasing control of 20/20 Global under
the terms and conditions of this SPA; (ii) 20/20 Global purchasing the MYC Stock from Purchaser under a separate stock purchase
agreement (the “MYC SPA”); and (iii) the change of control of 20/20 Global’s board of directors and management
under the terms of Change of Control and Funding Agreement (the “Change of Control Agreement”).

 

D.
The Term Sheet further provides that the closing of each of the transactions contemplated will be dependent on the closing of
each of the other agreements and accordingly, the parties have agreed to enter into an escrow agreement with 20/20 Global’s
stock transfer agent, Colonial Stock Transfer Company, Inc., to facilitate the simultaneous closing of the transactions outlined
above (the “Escrow Agreement”).

 

E.
The parties to this SPA believe it is in their best interests and the best interests of their respective stockholders, as may
be applicable, to enter into this SPA, the MYC SPA, the Change of Control Agreement, and the Escrow Agreement (together, the “Definitive
Agreements”).

 

Agreement

 

NOW,
THEREFORE, on these premises, which are incorporated herein by reference, and in consideration of the mutual covenants and promises
contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereby agree as follows:

 

1.
Definitions and Interpretation.

 

(a)
Definitions. When used herein, the following terms will have the meanings set forth below.

 

(i)
“Shares” means nine million, seven hundred and ninety-three thousand, seven hundred and fifty-four (9,793,754)
shares of common stock, par value $0.001, of 20/20 Global, which are presently owned by Sellers in the numbers set forth opposite
each Seller’s name on Appendix A.

 

    	1

     

    

 

(ii)
“Purchase Price” means a total purchase price of three hundred and fifty thousand dollars and no cents ($350,000)
for all of the Shares, which will be allocated to Sellers in the amounts set forth opposite each Seller’s name on Appendix
A.

 

(b)
Interpretation. The language in all parts of this SPA will be, in all cases, construed simply according to its fair meaning
and not strictly for or against any party. Section headings contained in this SPA are for reference purposes only and will not
affect the meaning or interpretation of this SPA. Except when the context clearly requires to the contrary: (a) instances of gender
or entity-specific usage (e.g., “his,” “her,” “its,” or “individual”) will not
be interpreted to preclude the application of any provision of this SPA to any individual or entity; (b) the word “or”
will not be applied in its exclusive sense, unless the context otherwise requires; (c) “including” will mean that
the items listed are illustrative and without limitation on the antecedent reference, without any implication that all or even
most of the components are mentioned; (d) references to laws, regulations, and other governmental rules (collectively, “rules”),
as well as to contracts, agreements, and other instruments (collectively, “instruments”), will mean such rules and
instruments as in effect at the time of determination (taking into account any amendments thereto effective at such time without
regard to whether such amendments were enacted or adopted after the effective date) and will include all successor rules and instruments
thereto; (e) references to “$,” “cash,” or “dollars” will mean the lawful currency of the
United States; (f) unless otherwise indicated, periods within which a payment is to be made or any other action is to be taken
hereunder will be calculated excluding the day on which the period commences and including the day on which the period ends; (g)
references to “federal” will be to laws, agencies, or other attributes of the United States (and not to any state
or locality thereof); (h) if any day specified in this SPA for any notice, action, or event is not a business day, then the due
date for such notice, action, or event will be extended to the next succeeding business day; (i) references to “days”
will mean calendar days; references to “business days” will mean all days other than Saturdays, Sundays, and days
that are legal holidays in the state of Nevada; and (j) days, business days, and times of day will be determined by reference
to local time in Nevada.

 

2.
Sale of Shares. At the Closing (as hereinafter defined), Purchaser will purchase the Shares for the Purchase Price. In
consideration for the Purchase Price, Sellers will cause the transfer agent to issue and deliver certificates for the Shares to
the Escrow Agent.

 

3.
Securities Matters.

 

(a)
20/20 Global Documents. 20/20 Global is a fully reporting, publicly traded company and is current on its filings with the
U.S. Securities and Exchange Commission (“SEC”). Purchaser acknowledges receipt of certain information concerning
20/20 Global, including its review of 20/20 Global’s periodic filings on the SEC’s EDGAR system.

 

(b)
Certain Information. Each Seller, severally but not jointly, acknowledges the following information regarding 20/20 Global:

 

(i)
20/20 Global is not presently engaged in any trade or business and has no state or federal tax issues. 20/20 Global is not presently
the subject of an SEC action or any other action by any federal or state regulatory agency.

 

(ii)
The Purchase Price has been arbitrarily determined and bears no relation to net worth, asset value, market value, or any other
criteria of value.

 

    	2

     

    

 

4.
Representations and Warranties of Purchaser. As an inducement to the execution of this SPA by Sellers and to the fulfillment
of the provisions hereof to be performed by Sellers, Purchaser covenants, represents, and warrants to Sellers that:

 

(a)
Purchaser has had the opportunity to discuss this SPA and the following information with its professional advisors, counsel, or
accountants, and it is aware of the circumstances and consequences of the following information and entering into this SPA.

 

(b)
This investment is considered to be in the category of extreme risk and Purchaser acknowledges that it may lose its entire
investment and that the loss of its entire investment will impose no significant hardship upon it or its business.

 

(c)
The Shares are illiquid, unavailable for resale, and being acquired by reason of a specific exemption under the Securities Act
of 1933, as amended (the “Securities Act”), as well as under certain state securities laws.

 

(d)
Existing shareholders of 20/20 Global’s common stock may have purchased shares at prices substantially less than the price
to be paid by Purchaser. Common stock that has previously been issued will be available for resale before resale of the Shares
purchased by Purchaser will be available.

 

(e)
Purchaser has all requisite power and authority to execute and deliver this SPA, to perform its obligations hereunder, and to
consummate the transactions contemplated hereby. The execution and delivery of this SPA by Purchaser and the consummation by Purchaser
of the transactions contemplated hereby has been duly authorized by all necessary corporate action, and no other proceedings on
the part of Purchaser are necessary to authorize this SPA or to consummate the transactions contemplated hereby.

 

(f)
Purchaser is able: (i) to bear the economic risk of this investment; (ii) to hold the Shares indefinitely; and (iii) to afford
a complete loss of this investment. In addition, Purchaser has adequate means of providing for its current needs and personal
contingencies, has no need for liquidity in this investment.

 

(g)
Purchaser, together with its representative if any, has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risks of an investment in the Shares and of making an informed investment decision.

 

(h)
Purchaser confirms that, in making its decision to purchase the Shares, it has relied solely upon independent investigations made
by it and/or by its representatives, tax professionals, and other advisors, and that it and such representatives and advisors
have been given the opportunity to ask questions of, and to receive answers from, persons acting on 20/20 Global’s behalf
concerning the terms and conditions of this investment and to obtain any additional information, to the extent such persons possess
such information or can acquire it without unreasonable effort or expense.

 

(i)
The Shares are being acquired by Purchaser in good faith solely for its own account, for investment purposes only, and are not
being purchased for resale, resyndication, distribution, subdivision, or fractionalization thereof.

 

    	3

     

    

 

(j)
Purchaser confirms that: (i) it has no contract or arrangement with any person to sell, transfer, or pledge to any person the
Shares or any part thereof, any interest therein, or any rights thereto; (ii) it has no present plans to enter into any such contract
or arrangement; and (iii) it understands that as a result it must bear the economic risk of the investment for an indefinite period
of time because the Shares have not been, and will not be, registered under the Securities Act and, therefore, cannot be sold
unless they are subsequently registered under the Securities Act (which 20/20 Global is not obligated to do and has no present
intention of doing) or unless an exemption from such registration is available.

 

(k)
Purchaser understands that no federal or state agency has passed on or made any recommendation or endorsement of the Shares and
that 20/20 Global and Sellers are relying on the truth and accuracy of the representations, declarations, and warranties herein
made by Purchaser in offering the Shares for sale to it without having first registered the same under the Securities Act.

 

(l)
Purchaser realizes that, in the absence of the availability of Rule 144, any disposition by it of the Shares may require compliance
with Regulation D or some other exemption from the Securities Act, and that 20/20 Global is under no obligation, and has no present
intention, to take any action to make Rule 144 or any such exemption available.

 

(m)
Purchaser represents that the funds provided for this investment are funds as to which it has the sole right of management.

 

(n)
Purchaser consents to the placement of a legend on the certificate representing the Shares in a form substantially as follows:

 

The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or under the securities laws of any state. These securities have been acquired for investment and may not be
sold or transferred in the absence of an effective registration or an available exemption from registration under the Securities
Act or the laws of the applicable state.

 

(o)
Purchaser has such knowledge and experience in business and financial matters that it is capable of evaluating 20/20 Global, the
proposed activities thereof, and the risks and merits of this prospective investment in the Shares in general and the suitability
of the investment for Purchaser in particular, and Purchaser is not using a purchaser representative (as defined in Regulation
D) in connection with the evaluation of such risks and merits.

 

(p)
Purchaser acknowledges that this SPA does not contain the information necessary for it to make an investment decision and it is
responsible to make additional requests for information and independently analyze such information.

 

5.
Representations and Warranties of Sellers. As an inducement to the execution of this SPA by Purchaser and to the fulfillment
of the provisions hereof to be performed by Purchaser, each Seller, severally and not jointly, covenants, represents, and warrants
to Purchaser that:

 

(a)
Authority; Enforceability. Seller has full legal capacity, power, and authority to enter into and perform this SPA and
the other documents to be executed and delivered by Sellers in connection with this SPA, and this SPA and the other documents
constitute the valid and legally binding obligations of Seller, enforceable in accordance with their respective terms.

 

    	4

     

    

 

(b)
Title. Seller is the registered holder of, and the owner of good title to, all of the Shares to be sold by such Seller
hereunder, free and clear of any liens, claims, charges, encumbrances, equities, or options whatsoever. All of the Shares to be
sold by Seller may be validly assigned, transferred, and delivered by Seller as herein provided. The Shares are not subject to
any shareholder, voting, or other agreement relating to the Shares, and the transactions contemplated herein will not result in
the breach of any term or provision of, or constitute an event of default under, any contract, agreement, or instrument to which
any of the Sellers is a party. The Shares have been duly authorized, validly issued, fully paid, and nonassessable and were not
issued in violation of, and are not subject to, any preemptive or similar rights created by statute, 20/20 Global’s articles
of incorporation or bylaws, or any agreement to which any of the Sellers is bound.

 

6.
Closing.

 

(a)
Closing. The consummation of the transactions contemplated by the Definitive Agreements (the “Closing”)
will take place through an escrow account maintained by the Escrow Agent in accordance with the terms and conditions of the Escrow
Agreement, on or before January 4, 2021, or at such other date as Sellers and Purchaser may agree (“Closing Date”).
At the Closing, all transactions contemplated by the Definitive Agreements will be conducted substantially concurrently, and no
transaction will be deemed to be completed until all are completed.

 

(b)
Deliveries by Purchaser. At the Closing, Purchaser will deliver the Purchase Price to Escrow Agent.

 

(c)
Deliveries by Sellers. At the Closing, Sellers will deliver certificates representing the Shares (with Medallion Guaranteed
Stock Powers) with written instructions to Escrow Agent to cancel the certificates and to issue new certificates representing
the Shares to Purchaser.

 

7.
Survival. All representations, warranties, covenants, and agreements contained in this SPA or in any document delivered
pursuant hereto will survive the Closing for a period of two years and will be fully effective and enforceable following the Closing
Date.

 

8.
General Provisions.

 

(a)
Amendment and Waiver. No amendment or waiver of any provision of this SPA will be valid unless the same is in writing and
signed by all parties.

 

(b)
Notices. Any notice, demand, request, or other communication permitted or required under this SPA will be in writing and
will be deemed to have been given as of the date so delivered, if personally delivered; as of the date so sent, if sent by electronic
mail and receipt is acknowledged by the recipient; and one day after the date so sent, if delivered by overnight courier service;
addressed as follows:

 

(i)
If to Purchaser:

 

c/o
Benjamin Kaplan

18851
NE 29th Ave. Suite 700

Aventura,
FL 33180

Email:
bkaplan@ehave.com

 

(ii)
If to Sellers:

 

c/o
Michael Best & Friedrich LLP

Attn:
Terrell W. Smith

170
South Main Street, Suite 1000

Salt
Lake City, Utah 84101

Email:
twsmith@michaelbest.com

 

    	5

     

    

 

Notwithstanding
the foregoing, service of legal process or other similar communications will not be given by electronic mail and will not be deemed
duly given under this SPA if delivered by such means. Each party, by notice duly given in accordance herewith, may specify a different
address for the giving of any notice hereunder.

 

(c)
Successors and Assigns. No party will assign its or his rights, duties, and obligations under this SPA without the written
consent of the other parties, except as otherwise specifically contemplated in this SPA. This SPA will be binding upon, inure
to the benefit of, and be enforceable by the parties and their permitted successors and assigns.

 

(d)
Entire Agreement. This SPA incorporates and includes all prior negotiations, correspondence, conversations, agreements,
or understandings applicable to the matters contained herein, and the parties agree that there are no commitments, agreements,
or understandings concerning the subject matter of this SPA that are not contained in the Definitive Agreements. The parties acknowledge
that, in deciding to enter into this SPA, they have not relied upon any statements, promises, or representations, written or oral,
express or implied, other than those set forth in the Definitive Agreements. Accordingly, it is agreed that no deviation from
the terms hereof will be predicated upon any prior representations or agreements, whether oral or written. The parties acknowledge
that they have negotiated this SPA at arm’s-length with adequate representation on an equal basis.

 

(e)
Governing Law. This SPA will be governed by and construed under and in accordance with the laws of the state of Nevada
without giving effect to any choice or conflict of law provision or rule (whether the state of Nevada or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the state of Nevada.

 

(f)
Counterpart Signatures. This SPA may be executed in multiple counterparts of like tenor, each of which will be deemed an
original but all of which taken together will constitute one and the same instrument. Counterpart signatures of this SPA that
are manually signed and delivered by facsimile transmission; by a uniquely, marked computer-generated signature; or by other electronic
methods, will be deemed to constitute signed original counterparts hereof and will bind the parties signing and delivering in
such manner and will be the same as the delivery of an original.

 

(g)
Incorporated Documents. All appendices, attachments, and other documents to be delivered by the parties hereto at or prior
to the Closing Date are hereby incorporated in this SPA by this reference.

 

[Signature
Page Follows]

 

    	6

     

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this SPA as of the date first written above.

 

	 	SELLERS:
	 	 
	 	 
	 	MARK D. WILLIAMS
	 	 
	 	Date:	 
	 	 	 
	 	 
	 	COLIN
    GIBSON
	 	Date:
    	 
	 	 	 
	 	THE
    ROBERT AND JOANNA WILLIAMS TRUST
	 	 
	 	By:	 
	 	 	Joanna
    Williams, Trustee
	 	 	 
	 	Date:
    	 
	 	 	 
	 	PURCHASER:
	 	 
	 	EHAVE
    INC. 
	 	 
	 	By:	 
	 	 	Benjamin
    Kaplan, President
	 	 	 
	 	Date:
    	 

 

    	7

     

    

 

Appendix
A

Sellers

 

	Seller’s Name	 	Number of 
 Shares Sold
	 	 	Portion of Purchase Price to be Received	 
	 	 	 	 	 	 	 
	Mark Williams	 	 	4,546,176	 	 	$	167,467	 
	 	 	 	 	 	 	 	 	 
	Colin Gibson	 	 	3,085,670	 	 	 	110,273	 
	 	 	 	 	 	 	 	 	 
	The Robert and Joanna Williams Trust	 	 	2,161,908	 	 	 	77,260	 
	 	 	 	9,793,754	 	 	$	350,000

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