Document:

Exhibit 10.1 

 

Execution
Copy

 

STOCK
PURCHASE AGREEMENT

Dated
As Of

August
6, 2018

By
and Among

 

WellSpring Pharma Services Inc.,

 

as the Company,

WSP Pharma Holdings, LLC,

 

as Seller,

 

ANI Pharmaceuticals Canada Inc.,

 

as Purchaser,

 

and

 

ANI
Pharmaceuticals, Inc.,

 

as Parent (solely for purposes of Section
8.18)

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I —CERTAIN DEFINITIONS	1
	Section 1.1	Certain Definitions	1
	Section 1.2	Interpretive Provisions	12
	 	 	 
	Article II —PURCHASE AND SALE	13
	Section 2.1	Purchase and Sale of the Shares	13
	Section 2.2	Purchase Price	13
	Section 2.3	Adjustment to Purchase Price and Closing Deliverables.	13
	Section 2.4	Closing	18
	Section 2.5	Section 116 of the Tax Act	18
	 	 	 
	Article III —REPRESENTATIONS AND WARRANTIES OF THE COMPANY	19
	Section 3.1	Organization; Good Standing; Qualification and Power	19
	Section 3.2	Authority; Execution and Delivery; Enforceability	19
	Section 3.3	Non-contravention	20
	Section 3.4	Consents	20
	Section 3.5	Capitalization	20
	Section 3.6	Financial Statements	20
	Section 3.7	Absence of Undisclosed Liabilities	22
	Section 3.8	Absence of Certain Developments	22
	Section 3.9	Compliance with Laws.	24
	Section 3.10	Litigation	25
	Section 3.11	Taxes	25
	Section 3.12	Environmental Matters	27
	Section 3.13	Employee Matters	28
	Section 3.14	Employee Benefit Plans	29
	Section 3.15	Intellectual Property Rights	30
	Section 3.16	Contracts	31
	Section 3.17	Insurance	32
	Section 3.18	Real Property	33
	Section 3.19	Transaction with Affiliates	34
	Section 3.20	Title and Condition of Assets; Sufficiency of Assets	34
	Section 3.21	Customers	34
	Section 3.22	Anti-Bribery	34
	Section 3.23	International Trade Matters; Export Control and Import Laws	35
	Section 3.24	Indebtedness	36
	Section 3.25	Privacy and Data Security	36
	Section 3.26	Information Technology	37
	Section 3.27	Regulatory Matters	37
	Section 3.28	Government Contracts	38
	Section 3.29	Inventory	38
	Section 3.30	Brokers	38

 

    i 

     

    

  

	Section 3.31	Books and Records	38
	Section 3.32	NO ADDITIONAL REPRESENTATIONS	39
	 	 	 
	Article IV —REPRESENTATIONS AND WARRANTIES OF SELLER	39
	Section 4.1	Shares	39
	Section 4.2	Authority	39
	Section 4.3	Non-Contravention	40
	Section 4.4	Seller Consents	40
	Section 4.5	NO ADDITIONAL REPRESENTATIONS	40
	 	 	 
	Article V —REPRESENTATIONS AND WARRANTIES OF PURCHASER	41
	Section 5.1	Organization	41
	Section 5.2	Authorization	41
	Section 5.3	Non-contravention	41
	Section 5.4	Consents	41
	Section 5.5	Litigation	42
	Section 5.6	Brokers	42
	Section 5.7	R&W Insurance Policy	42
	Section 5.8	Acknowledgement by Purchaser	42
	 	 	 
	Article VI —COVENANTS AND AGREEMENTS	43
	Section 6.1	Confidentiality; Reservation of Documents	43
	Section 6.2	Personal Information	44
	Section 6.3	No Modification of R&W Insurance Policy	44
	Section 6.4	Reasonable Efforts; Further Assurances	44
	Section 6.5	Public Announcements	45
	Section 6.6	Indemnification of Directors and Officers	46
	Section 6.7	Transfer Taxes	46
	Section 6.8	Tax Matters	46
	Section 6.9	Seller Release	47
	Section 6.10	Use of Name	47
	 	 	 
	Article VII —SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION	48
	Section 7.1	Survival of Representations and Warranties	48
	Section 7.2	General Indemnification	48
	Section 7.3	Third Party Claims.	49
	Section 7.4	Limitations on Indemnification Obligations	50
	Section 7.5	Release of Indemnity Escrow Funds.	52
	Section 7.6	Exclusive Remedy	52
	 	 	 
	Article VIII —MISCELLANEOUS	53
	Section 8.1	Notices	53
	Section 8.2	Exhibits and Schedules	54
	Section 8.3	Time of the Essence; Computation of Time	54
	Section 8.4	Expenses	54
	Section 8.5	Governing Law	54

 

    ii 

     

    

  

	Section 8.6	Jurisdiction and Venue	55
	Section 8.7	Assignment; Successors and Assigns; No Third Party Rights	55
	Section 8.8	Counterparts	55
	Section 8.9	Titles and Headings	55
	Section 8.10	Entire Agreement	56
	Section 8.11	Severability	56
	Section 8.12	No Strict Construction	56
	Section 8.13	Specific Performance	56
	Section 8.14	Waiver Of Jury Trial	56
	Section 8.15	Failure or Indulgence not Waiver	56
	Section 8.16	Amendments	57
	Section 8.17	Conflicts; Privileges	57
	Section 8.18	Parent Guarantee	57

 

Exhibits & Schedules

 

	Exhibit A	Non-Solicitation, No-Hire and Non-Disparagement Agreement
	Exhibit B	Escrow Agreement
	Exhibit C	Section 116 Escow Agreement
	 	 
	Schedule 1.1	Funded Indebtedness
	Schedule 1.2	Permitted Liens
	Schedule 1.3	Sponsors
	Schedule 1.4	Affiliates
	Schedule 2.3.1	Estimated Purchase Price
	Schedule 2.3.1.2	Wire Instructions
	Schedule 3.3	Non-contravention
	Schedule 3.4	Consents
	Schedule 3.5	Capitalization
	Schedule 3.6.2	GAAP Exceptions
	Schedule 3.7	Absence of Undisclosed Liabilities
	Schedule 3.8	Absence of Certain Developments
	Schedule 3.9	Compliance with Laws
	Schedule 3.10	Litigation
	Schedule 3.11	Taxes
	Schedule 3.12	Environmental Matters
	Schedule 3.16	Contracts
	Schedule 3.17	Insurance
	Schedule 3.21	Customers 
	Schedule 4.4	Seller Consents
	Schedule 5.4	Consents

 

    iii 

     

    

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE
AGREEMENT (this “Agreement”), dated as of August 6, 2018, is by and among (i) WellSpring Pharma Services
Inc., a Nova Scotia company limited by shares (the “Company”), (ii) WSP Pharma Holdings, LLC, a Delaware limited
liability company (“Seller”), (iii) ANI Pharmaceuticals Canada Inc., a Nova Scotia company limited by shares
(“Purchaser”), and (iv) ANI Pharmaceuticals, Inc., a Delaware corporation (“Parent”) (solely
for purposes of Section 8.18).

 

RECITALS

 

WHEREAS, the Company
is engaged in the business of providing outsourced contract pharmaceutical product development and manufacturing services for third
party customers based in the United States, Canada and Australia (the “Business”);

 

WHEREAS, Seller owns
beneficially and of record all of the issued and outstanding common shares in the capital of the Company, consisting of 24,966,694
common shares without nominal or par value (the “Shares,” and each individually, a “Share”);

 

WHEREAS, Seller desires
to sell to Purchaser, and Purchaser desires to purchase from Seller, all of the Shares upon the terms and conditions hereinafter
set forth; and

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

Article
I—CERTAIN DEFINITIONS

 

Section
1.1           Certain Definitions. As used in
this Agreement, the following terms have the respective meanings set forth below.

 

“2017 Audited
Financial Statements” has the meaning set forth in Section 3.6.1.1.

 

“Accounting
Firm” has the meaning set forth in Section 2.3.3.3.

 

“Accounting
Principles” means GAAP applied on a basis consistent with the methodologies, practices, classifications, judgments, estimation
techniques, assumptions, and principles used by the Company in the preparation of the Latest Balance Sheet, except (i) to
the extent that the methodologies, practices, classifications, judgments, estimation techniques, assumptions, and principles used
in the preparation of the Latest Balance Sheet are not in accordance with GAAP, or (ii) if any item included in an Adjustment Statement
is not reflected in the Latest Balance Sheet, then in case of each of the foregoing clauses (i) and (ii), the methodologies, practices,
classifications, judgments, estimation techniques, assumptions, and principles to be used with respect to the applicable item in
such Adjustment Statement, as applicable, shall be as determined in accordance with GAAP. For further clarification, if alternative
methodologies exist for calculating current asset and current liability balances under GAAP, the methodology utilized by the Company
in the Latest Balance Sheet shall govern.

 

     

     

    

 

“Actual Adjustment”
means the amount, which may be a positive or negative number, equal to (x) the Purchase Price as set forth on the Final Statement
of Purchase Price minus (y) the Estimated Purchase Price.

 

“Additional
Section 116 Escrow Amount” has the meaning set forth in the Section 116 Escrow Agreement.

 

“Adjustment
Escrow Account” has the meaning set forth in the Escrow Agreement.

 

“Adjustment
Escrow Amount” means an amount equal to $600,000.

 

“Adjustment
Escrow Funds” has the meaning set forth in the Escrow Agreement.

 

“Adjustment
Statement” means any of the following deliverables under this Agreement: (i) Schedule 2.3.1 (Estimated Purchase
Price), (ii) the Proposed Closing Date Calculations, (iii) a Purchase Price Dispute Notice, or (iv) any disputed
items submitted to the Accounting Firm under Section 2.3.3.3.

 

“Affiliate”
means, with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person. The term “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative
thereto. For the avoidance of doubt, the individual set forth on Schedule 1.4 shall not be deemed an Affiliate of the Company
or the Seller.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement.

 

“Business”
has the meaning set forth in the recitals to this Agreement.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which commercial banks in New York, New York, Baudette, Minnesota,
and Toronto, Canada are open for the general transaction of business.

 

“Cash and
Cash Equivalents” means, without duplication, the sum of the fair market value of (a) all cash plus (b) cash equivalents
(including marketable securities and short term investments) plus (c) $50,000; provided that “Cash and
Cash Equivalents” (i) in each of the foregoing clauses (a) and (b), shall be Cash and Cash Equivalents of the Company determined
in accordance with the Accounting Principles as of immediately prior to the Closing, (ii) shall not include any cash which is restricted
cash (it being understood and agreed that the C$10,000 required to be held in connection with the termination of the Credit Facility
shall not be restricted cash), and (iii) shall be calculated net of issued but uncleared checks and bank drafts to the extent such
checks and bank drafts are not counted as a current liability in the calculation of Net Working Capital.

 

    	 	2	 

     

    

 

“Claim”
means any action, suit, case, litigation, proceeding, claim, arbitration, charge, criminal prosecution, investigation, demand letter,
warning letter, finding of deficiency or non-compliance, adverse inspection report, notice of violation, notice of alleged liability,
penalty, fine, sanction, subpoena, request for recall or remedial action.

 

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

 

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

 

“Closing Date
Funded Indebtedness” means the Funded Indebtedness as of immediately prior to the Closing.

 

“Closing Liabilities”
means, without duplication and to the extent not included in Funded Indebtedness, Net Working Capital or Seller Expenses, and to
the extent not paid in full prior to or at the Closing, (i) any payments owing by the Company under stock appreciation rights,
phantom equity or similar plans, in each case attributable to periods prior to the Closing, plus the Company’s share of any
payroll Taxes due in connection with any such payments, (ii) deferred compensation, severance, bonus and profit sharing payments
of the Company to employees attributable to pre-Closing periods, plus the Company’s share of any payroll Taxes due in connection
with any such payments, (iii) any sale bonuses, profit sharing payments, change in control bonuses or retention bonuses that become
payable by the Company upon, and solely by reason of, the consummation of the transactions contemplated hereby and that were incurred
by the Company prior to the Closing, plus the Company’s share of any payroll Taxes due in connection with any such payments,
and (iv) all Taxes of the Company (a) with respect to a taxable period ending on or prior to the Closing Date, the Tax Returns
for which have not been filed on or before the Closing Date, and (b) for the portion of fiscal year 2018 ending on the Closing
Date (determined in accordance with Section 6.8.1). The determination of clause (iv) in the preceding sentence shall, to
the extent permitted by applicable Tax law, treat any deductions for Seller Expenses or Closing Liabilities available to the Company
as deductions in such pre-Closing period.

 

“Company”
has the meaning set forth in the preamble to this Agreement.

 

“Company Intellectual
Property Rights” has the meaning set forth in Section 3.15.

 

“Confidentiality
Agreement” means the Non-Disclosure Agreement, dated January 26, 2018, by and between Fairmount Partners (on behalf of
the Company) and Parent.

 

“Contracts”
has the meaning set forth in Section 3.16.

 

“Controlled
Substance” means any substance set forth in 21 U.S.C. § 812, and/or attendant federal or state regulations, including
but not limited to, 21 C.F.R. Part 1308.

 

“Covington”
has the meaning set forth in Section 8.17.

 

“CRA”
means the Canada Revenue Agency.

 

“Credit Facility”
means the revolving demand facility in the principal amount of up to C$3,000,000 pursuant to a demand operating facility agreement
accepted on December 21, 2017 between The Toronto-Dominion Bank, as lender, and the Company, as borrower.

 

    	 	3	 

     

    

 

“Current Good
Manufacturing Practices” means the current good manufacturing practices for drugs and finished pharmaceutical products
contained in 21 C.F.R. Part 210 and 211 as in effect at the time of manufacture and, in the case of active pharmaceutical ingredients,
means the ICH Q7A Guidance, Good Manufacturing Practice Guidance for Active Pharmaceutical Ingredients.

 

“Data Security
Requirements” means all of the following, to the extent relating to privacy or data security and applicable to the Company:
(a) all applicable laws; (b) Payment Card Industry Data Security Standard (PCI DSS) and (c) the Company’s written security
policies.

 

“Deductible”
has the meaning set forth in Section 7.4.3.

 

“Discussions
Period” has the meaning set forth in Section 2.3.3.3.

 

“Documents”
means this Agreement, the Escrow Agreement, and the Non-Solicitation, No-Hire and Non-Disparagement Agreements and the other agreements,
instruments, and documents contemplated by any of the foregoing agreements to be entered into at or prior to the Closing, including
each exhibit hereto and thereto.

 

“Employee
Benefit Plan” means all written and unwritten, registered or unregistered, funded or unfunded compensation or severance
plans, pension plans, supplemental pension plans, retirement savings plans or arrangements, savings bonds plans and group insurance
plans for life insurance, accidental death and dismemberment, disability, health care, dental care and medical travel insurance
benefits, termination, supplemental unemployment benefits, bonus, incentive, profit sharing, change of control, retention, retirement,
stock option, stock purchase, stock appreciation, employee assistance, welfare and fringe benefits and similar plans, programs
or arrangements (i) that are administered, sponsored, maintained, contributed to, required to be contributed to or offered to current
or former employees of Company as of the date of this Agreement, or (ii) with respect to which the Company has or may have any
liability or obligation, including in the case of (i) or (ii) any such plan, program or arrangement offered or provided pursuant
to an employment agreement, offer letter or labor agreement, except for any statutory plans to which Company is obliged to contribute
or comply with, including the Canada Pension Plan and plans administered pursuant to applicable federal or provincial health, workers’
compensation or employment insurance legislation.

 

“Enterprise
Value” means $18,000,000.

 

“Environmental
Laws” means all applicable federal, state, provincial, municipal, local and foreign statutes, regulations, ordinances
and common law concerning pollution or protection of the natural environment and human health (including all those relating to
the generation, handling, transportation, treatment, storage, disposal, distribution, labeling, discharge, release, control, or
cleanup of any toxic or hazardous materials, substances or wastes), as such of the foregoing are in effect on or prior to the Closing
Date, including requirements under Canada’s Workplace Hazardous Materials Information System.

 

“Escrow Agent”
has the meaning set forth in Section 2.3.1.1.

 

“Escrow Agreement”
has the meaning set forth in Section 2.3.1.1.

 

    	 	4	 

     

    

 

“Escrow Amount”
means the Adjustment Escrow Amount plus the Indemnity Escrow Amount.

 

“Estimated
Purchase Price” means a good faith estimate of the Purchase Price, as prepared in accordance with the Accounting Principles
by the Company, with each component of the Purchase Price (including each line item category of Net Working Capital) as set forth
on Schedule 2.3.1.

 

“Export Controls”
has the meaning set forth in Section 3.23.1.

 

“FCPA”
has the meaning set forth in Section 3.22.1.

 

“FDA”
means the U.S. Food and Drug Administration.

 

“FDC Act”
means the Federal Food, Drug, and Cosmetic Act, as amended.

 

“Final Statement
of Purchase Price” has the meaning set forth in Section 2.3.3.3.

 

“Financial
Advisor” means Fairmount Partners, L.P.

 

“Financial
Statements” has the meaning set forth in Section 3.6.1.

 

“fraud”
means that all of the following elements have been satisfied: (a) the representations and warranties contained in Article III,
Article IV or Article V (as modified by the Schedules) contain a false statement of a material fact, (b) the party
making such false statement of material fact (i) has actual knowledge of the falsity of such statement, (ii) makes such false statement
with the intent to deceive the party to whom such false statement of material fact is made and (iii) makes such false statement
with the intent to induce reliance in the party to whom such false statement of material fact is made, and (c) the party to whom
such false statement of material fact is made (i) justifiably relies on such false statement of fact and (ii) suffers actual Loss
as a result of such reliance. In no event shall any Person be liable for the fraud of any other Person.

 

“Funded Indebtedness”
means, as of any date, without duplication, the sum of the outstanding principal amount of, accrued and unpaid interest on and
other payment obligations (including any prepayment penalties, premiums, breakage costs, fees and other costs and expenses associated
with repayment) arising under any obligations of the Company consisting of (i) indebtedness for borrowed money owed to any
third party or indebtedness issued in substitution or exchange for borrowed money or for the deferred purchase price of property
or services (other than trade payables and accrued expenses arising in the ordinary course of business substantially consistent
with past practices), (ii) indebtedness evidenced by any note, bond, debenture or other debt security, (iii) any obligations
of the Company as lessee under the leases that have been recorded as capital leases in accordance with GAAP, (iv) obligations under
acceptance credit, letters of credit, performance bonds, surety bonds or similar facilities, in each case, to the extent drawn,
(v) obligations under direct financing leases and purchase money or vendor financing (in each case, other than with respect to
trade payables, accrued expenses, current accounts and similar obligations to the extent included within Net Working Capital),
(vi) the full amount of any direct or indirect obligations in respect of any earnout, assets or services, with respect to
which the Company is liable, contingent or otherwise, as obligor or otherwise, (vii) Indebtedness secured by any Lien, (viii) deferred
rent, (ix) Indebtedness guaranteed by the Company, (x) any drawn obligations under surety or performance bonds and similar instruments,
banker’s acceptance or any bank overdrafts and similar charges, (xi) accrued and unpaid dividends, distributions, management
fees, or other similar payments to direct or indirect equityholders, (xii) items set forth on Schedule 1.1 or (xiii) intercompany
liabilities (to the extent not eliminated or settled prior to the Closing Date). Notwithstanding the foregoing, “Funded Indebtedness”
shall not include (a) any obligations under operating leases, (b) any undrawn letter of credit and (c) any amounts taken into
account in calculating Net Working Capital or Seller Expenses.

 

    	 	5	 

     

    

 

“GAAP”
means generally accepted accounting principles as in effect from time to time in the United States, applied on a consistent basis.

 

“GAAP Financial
Statements” has the meaning set forth in Section 3.6.1.2.

 

“Governing
Documents” means the legal document(s) by which any Person (other than an individual) establishes its legal existence
or which govern its internal affairs. For example, the “Governing Documents” of the Company are its certificate of
incorporation, memorandum of association and articles of association, the “Governing Documents” of a corporation are
its certificate or articles of incorporation and by-laws, the “Governing Documents” of a limited partnership are its
certificate of formation and its limited partnership agreement and the “Governing Documents” of a limited liability
company are its certificate of formation and its operating agreement or limited liability company agreement.

 

“Governmental
Authority” means the government of any nation, state, province, commonwealth, territory, possession, county, or municipality
thereof, or the government of any political subdivision of any of the foregoing, or any entity, authority, agency, ministry or
other similar body exercising executive, legislative, judicial, regulatory or administrative authority or functions of or pertaining
to government, including any authority or other quasi-governmental entity established to perform any of such functions, in each
case, where such Person acts with executive branch power.

 

“Health Canada”
means the Department of Health of the federal government of Canada.

 

“Improper
Payment Laws” has the meaning set forth in. Section 3.22.1.

 

“Indemnified
Party” has the meaning set forth in Section 7.3.1.

 

“Indemnity
Escrow Account” has the meaning set forth in the Escrow Agreement.

 

“Indemnity
Escrow Amount” means an amount equal to $90,000.

 

“Indemnity
Escrow Funds” has the meaning set forth in the Escrow Agreement.

 

“Intellectual
Property Rights” means all issued patents and patent applications, all trademarks, tradenames, business names, and service
marks and applications, registrations and renewals with respect thereto and goodwill associated therewith, all domain names and
URLs, all copyrights and applications, registrations, and renewals with respect thereto, and all trade secrets, in each case, to
the extent protectable under applicable law.

 

    	 	6	 

     

    

 

“IT Assets”
has the meaning set forth in Section 3.26.

 

“ITAR”
has the meaning set forth in Section 3.23.1.

 

“Knowledge”
means, with respect to any Person, actual knowledge without independent investigation (and except as expressly set forth herein
shall in no event encompass constructive, imputed or similar concepts of knowledge); provided that in the case of the Company,
such actual knowledge shall (i) be limited to the Knowledge of Sam Ricchezza, Wendy Shusko and David Watt, and (ii) include any
Knowledge which such person would have obtained as a result of reasonable inquiry of such person’s direct reports.

 

“Latest Balance
Sheet” has the meaning set forth in Section 3.6.1.2.

 

“Legal Counsel”
has the meaning set forth in Section 8.17.

 

“Lien”
means any mortgage, pledge, security interest, encumbrance, lien, or charge of any kind. For avoidance of doubt, “Lien”
shall not include any license or option of, or covenant or other right with respect to any, Intellectual Property Rights.

 

“Listed Chemical”
means any List I Chemical, List II Chemical, and Schedule Listed Chemical Product as those terms are defined under the Controlled
Substances Act or regulations implemented by the Drug Enforcement Administration.

 

“Loss”
means any actual loss, liability, demand, claims, cause of action, cost, damage, obligation, debt, deficiency, Tax, assessment,
penalty, fine, or expense (including interest, penalties, reasonable attorneys’ fees and expenses, and all amounts paid in
investigation, defense or settlement of any of the foregoing and enforcement of its rights hereunder whether or not litigation
has commenced); provided that “Losses” shall not include any and all punitive damages, except to the extent
such damages are payable to a third party in a Third Party Claim.

 

“Material
Adverse Effect” means an event, circumstance, occurrence, change, action or omission, or development that has, or would
reasonably be expected to have, individually or in the aggregate, a material adverse effect on the financial condition, business
or results of operations, of the Company; provided, that any change, event or effect arising from or related to: (i) conditions
affecting the Business generally, the industries, markets or geographical areas in which the Company conducts activities generally,
or the economy or political climate generally; (ii) acts of terrorism, sabotage, military action, armed hostilities, or war (whether
or not declared), or the escalation or worsening thereof; (iii) financial, credit, banking or securities markets (including
any disruption thereof, any decline in the price of any security or any market index and changes in interest rates or the availability
of financing); (iv) changes in accounting requirements or principles (including GAAP); (v) changes in any laws, rules, regulations,
orders, or other binding directives issued by any Governmental Authority or interpretations thereof; (vi) any failure by the
Company to meet any internal or published projections, forecasts or revenue or earnings predictions for any period ending on or
after the date of this Agreement (it being understood that the underlying causes of such failure may, if they are not otherwise
excluded from the definition of Material Adverse Effect, be taken into account in determining whether a Material Adverse Effect
has occurred); (vii) any changes in the price of products, supplies, and materials from third-party suppliers; or (viii) changes
in weather, meteorological conditions or climate or natural disasters (including hurricanes, storms, tornados, flooding, earthquakes,
volcanic eruptions, fires, tsunamis or similar occurrences) affecting the Business, shall not be taken into account in determining
whether a “Material Adverse Effect” has occurred or would reasonably be expected to occur; provided,
that, the exceptions contained in the foregoing (i), (ii), (iii), (iv), (v), (vii), and (viii) shall be disregarded in determining
whether a Material Adverse Effect has occurred solely to the extent that such change has a disproportionate adverse effect on the
Company compared to other participants in the industries or markets in which the Company operates.

 

    	 	7	 

     

    

 

“Material
Customers” means the 10 largest customers of the Company as measured by the dollar amount of revenue received by the
Company from such customers during the twelve (12) months ended on May 31, 2018.

 

“Material
Permits” has the meaning set forth in Section 3.9.2.

 

“Net Working
Capital” means (i) the net book value of the current assets of the Company as of 11:59 P.M. Eastern Time on the
day immediately prior to the Closing Date that are included in the line item categories of current assets on Schedule 2.3.1,
less (ii) the net book value of the current liabilities of the Company as of 11:59 P.M. Eastern Time on the day immediately
prior to the Closing Date that are included in the line item categories of current liabilities on Schedule 2.3.1; provided,
however, that in both clauses (i) and (ii), as applicable, Net Working Capital shall (x) exclude (a) the current portion
of any Closing Date Funded Indebtedness and accrued interest taken into account in Funded Indebtedness, (b) the Seller Expenses
and the Closing Liabilities, (c) all intercompany payables and receivables, (d) current and deferred Tax assets and current
and deferred Tax liabilities, (e) Cash and Cash Equivalents and (f) the items set forth on Schedule 1.1, in each case,
without duplication, and (y) determined in accordance with the Accounting Principles.

 

“Net Working
Capital Adjustment” means (i) the amount by which Net Working Capital exceeds the Net Working Capital Target, or (ii)
the amount by which Net Working Capital is less than the Net Working Capital Target, in each case, if applicable; provided
that any amount which is calculated pursuant to clause (ii) above shall be deemed to be a negative number.

 

“Net Working
Capital Target” means $2,944,000.

 

“Non-Solicitation,
No-Hire and Non-Disparagement Agreements” means each of the Non-Solicitation, No-Hire and Non-Disparagement Agreements
entered into on the Closing Date between the Company and each Sponsor, each in the form attached hereto as Exhibit A.

 

“OFAC”
has the meaning set forth in Section 3.23.1.

 

“Owned Real
Property” has the meaning set forth in Section 3.18.1.

 

“Parent”
has the meaning set forth in the preamble to this Agreement.

 

    	 	8	 

     

    

 

“Permitted
Liens” means (a) mechanics, materialmen’s, construction, carrier’s, repairer’s and other Liens arising
or incurred in the ordinary course of business substantially consistent with past practices relating to obligations shown in the
financial records of the Company disclosed to the Purchaser and that are not yet delinquent or are being contested in good faith;
(b) Liens for Taxes, assessments or other governmental charges not yet delinquent or which are being contested in good faith; (c) 
easements, restrictive covenants, restrictions, rights of way and similar encumbrances affecting title to real property that do
not materially interfere with the present uses of such real property, including any right of expropriation and including Liens
of any nature claimed by or held by Her Majesty the Queen in Right of Canada or Her Majesty the Queen in Right of any province
of Canada in which the Owned Real Property is located; (d) Liens granted to any lender at the Closing in connection with any financing
by Purchaser of the transactions contemplated hereby; (e) zoning, building codes and other land use laws regulating the use or
occupancy of real property or the activities conducted thereon which are imposed by any Governmental Authority having jurisdiction
over such real property which are not violated in any material respect by the current use or occupancy of such real property or
the operation of the Business; (f) matters that would be disclosed by an accurate survey of real property; (g) purchase money Liens
and Liens securing rental payments under lease arrangements relating to obligations shown in the financial records of the Company
disclosed to the Purchaser prior to the date of this Agreement; (h) Liens arising under worker’s compensation, unemployment
insurance, social security, retirement or other similar Liens incurred in the ordinary course of business relating to obligations
shown in the financial records of the Company disclosed to the Purchaser prior to the date of this Agreement and that are not yet
delinquent or that are being contested in good faith; and (i)  Liens described on Schedule 1.2.

 

“Person”
means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association,
trust, joint venture, association or other organization, whether or not a legal entity or a Governmental Authority.

 

“Personal
Information” means information about an individual who can be identified by the Person who holds that information.

 

“Personal
Property” has the meaning set forth in Section 3.20.1.

 

“Privacy Laws”
means any laws that regulate the collection, use or disclosure of Personal Information.

 

“Proceedings”
has the meaning set forth in Section 3.10.

 

“Product”
means any product tested, manufactured, produced, supplied, packaged, labelled, stored, or prepared for shipment by or on behalf
of the Company prior to the Closing Date, including all such products that are currently subject to any of the Company’s
existing Contracts.

 

“Prohibited
Fund” has the meaning set forth in Section 3.22.3.

 

“Prohibited
Payment” has the meaning set forth in Section 3.22.2.

 

“Prohibited
Person” has the meaning set forth in Section 3.23.2.

 

    	 	9	 

     

    

 

“Proposed
Cash and Cash Equivalents” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Closing Date Calculations” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Closing Date Funded Indebtedness” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Closing Date Statement of Net Working Capital” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Closing Liabilities” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Purchase Price Calculation” has the meaning set forth in Section 2.3.3.1.

 

“Proposed
Seller Expenses” has the meaning set forth in Section 2.3.3.1.

 

“Purchase
Price” means (i) the Enterprise Value, plus (ii) the Net Working Capital Adjustment (which may be a negative number),
plus (iii) the amount of Cash and Cash Equivalents, minus (iv) the amount of Closing Date Funded Indebtedness, minus
(v) the amount of Seller Expenses, minus (v) the amount of Closing Liabilities.

 

“Purchase
Price Dispute Notice” has the meaning set forth in Section 2.3.3.3.

 

“Purchaser”
has the meaning set forth in the preamble to this Agreement.

 

“Purchaser
Indemnitee” has the meaning set forth in Section 7.2.1.

 

“Regulatory
Licenses” has the meaning set forth in Section 3.27.2.

 

“Responsible
Party” has the meaning set forth in Section 7.3.1.

 

“R&W Insurance
Policy” means that certain buy-side representations and warranty insurance policy number 18126469 issued by the R&W
Policy Provider for the benefit of the Purchaser Indemnitees.

 

“R&W Policy
Provider” means AIG Specialty Insurance Company.

 

“Schedules”
has the meaning set forth in the introductory paragraph to Article III.

 

“Section 116
Certificate” has the meaning set forth in Section 2.5.1.

 

“Section 116
Escrow Account” has the meaning set forth in Section 2.5.2.

 

“Section 116
Escrow Amount” has the meaning set forth in Section 2.5.2.

 

“Section 116
Escrow Agreement” has the meaning set forth in Section 2.3.1.2.

 

“Securities
Act” means the Securities Act of 1933, as amended (together with the rules and regulations promulgated thereunder).

 

    	 	10	 

     

    

 

“Seller”
has the meaning set forth in the preamble to this Agreement.

 

“Seller’s
Equityholder” has the meaning set forth in Section 8.17.

 

“Seller Expenses”
means, without duplication, the collective amount of all out-of-pocket costs and expenses incurred by the Company or for which
the Company is obligated to reimburse another Person whether accrued for or not, in connection with the sale of the Company (including
any contemplated sale of the Company alternative to the transaction contemplated hereby), payable by the Company to outside legal
counsel, accountants, advisors, brokers and other third parties and unpaid as of the Closing (provided that any item taken
into account in Net Working Capital shall be excluded from “Seller Expenses”). “Seller Expenses”
shall include (a) any costs or expenses incurred by Seller or the Company in obtaining the Tail Policy in accordance with Section
6.6, (b) an amount equal to the lesser of (i) fifty percent (50%) of all out-of-pocket costs and expenses incurred
by Purchaser in connection with the acquisition of the R&W Insurance Policy (including any premiums, commissions and due diligence
fees due to the R&W Policy Provider) and (ii) $100,000, and (c) Taxes payable by Seller in accordance with Section 6.7.

 

“Seller Indemnitee”
has the meaning set forth in Section 7.2.2.

 

“Shares”
has the meaning set forth in the recitals to this Agreement.

 

“Sponsors”
means the Persons set forth on Schedule 1.3.

 

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

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership, limited liability company, association or other business entity
of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly
or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership,
limited liability company, association or other business entity, a majority of the partnership or other similar ownership interests
thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or
a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a partnership,
limited liability company, association or other business entity if such Person or Persons shall be allocated a majority of partnership,
limited liability company, association or other business entity gains or losses or shall be or control the managing director, managing
member, general partner or other managing Person of such partnership, limited liability company, association or other business
entity.

 

    	 	11	 

     

    

 

“Tax”
or “Taxes” means any federal, state, provincial, municipal, land transfer, local or foreign income, gross receipts,
franchise, estimated, alternative minimum, add-on minimum, sales, goods and services, harmonized sales, Quebec sales, use, transfer,
real property gains, registration, value added, excise, natural resources, severance, stamp, occupation, windfall profits, customs,
duties, real property, personal property, capital stock, social security (or similar), unemployment, disability, payroll, license,
employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or similar
items in respect of the foregoing (whether disputed or not) and shall include any liability for such amounts as a result of (i)
being a member of a combined, consolidated, unitary or affiliated group (including non-arm’s length, affiliated or combined
group), (ii) a contractual obligation to indemnify any person or other entity or (iii) being a “transferee” (within
the meaning of section 160 of the Tax Act or any other laws) of another taxpayer or entity.

 

“Tax Act”
means the Income Tax Act (Canada), as amended.

 

“Tax Contest”
means any audit, action, suit, proceeding, claim, examination, assessment investigation, claim, litigation, dispute or controversy
related to Taxes.

 

“Tax Return”
means any return, report, declaration, election, filing, claim for refund, information return or other document (including any
related or supporting schedule, statement or information) filed or required to be filed in connection with the determination, assessment
or collection of any Tax of any party or the administration of any laws, regulations or administrative requirements relating to
any Tax (including any amendment thereof).

 

“Tail Policy”
has the meaning set forth in Section 6.6.

 

“Third Party
Claim” has the meaning set forth in Section 7.3.1.

 

“VAT Legislation”
means laws of any Governmental Authority relating to or otherwise imposing Taxes levied on, or measured by, or referred to as sales,
goods and services, use, value-added or excise, including all custom duties and import and export taxes, together with all interest,
penalties, fines, additions to tax or other additional amounts imposed in respect thereof.

 

Section
1.2           Interpretive Provisions. Unless
otherwise indicated to the contrary herein by the context or use thereof: (a) the words, “herein,” “hereto,”
“hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph
hereof; (b) the word “including” means “including, but not limited to”, whether or not such words
appear; (c) the masculine gender shall also include the feminine and neutral genders, and vice versa; and (d) words
importing the singular shall also include the plural, and vice versa. All references to “dollar” or “$”
mean the lawful currency of the United States of America. Unless otherwise specified, all accounting terms and principles shall
be interpreted in accordance with GAAP. All calculations of all amounts payable by Seller, Purchaser or any of their Affiliates
under this Agreement (including Losses, any Proposed Closing Date Calculations, the Final Statement of Purchase Price, the Actual
Adjustment and all amounts payable by either Seller or Purchaser under Article VII) shall be calculated in United States
dollars. If any such amounts are determined initially by reference to a foreign currency, such amounts will be converted into
dollars based on the currency conversion rate published in The Wall Street Journal on (i) with respect to any Proposed
Closing Date Calculations, the Final Statement of Purchase Price, the Actual Adjustment or any amount in Section 2.4, the
date hereof and (ii) with respect to all other amounts, the date such amount is paid by the applicable party to the other party.
The conversion of any amount determined initially by reference to a foreign currency into dollars for purposes of testing such
amount against the thresholds contained in Section 3.16 (Contracts) shall be made based on the currency conversion
rate published in The Wall Street Journal on the date hereof.

 

    	 	12	 

     

    

 

Article
II—PURCHASE AND SALE

 

Section
2.1           Purchase and Sale of the Shares.

 

Section
2.1.1           Upon the terms and subject to the conditions of this
Agreement, at the Closing, Seller shall sell to Purchaser the Shares, free and clear of all Liens, and Purchaser shall purchase
such Shares from Seller.

 

Section
2.2           Purchase Price.

 

Section
2.2.1           The consideration due to Seller for the Shares to
be purchased by Purchaser pursuant to Section 2.1.1 from Seller shall be a cash amount equal to the Purchase Price.

 

Section
2.2.2           The amount due pursuant to this Section 2.2
shall be a cash amount paid by Purchaser to Seller in accordance with, and as adjusted pursuant to, the provisions set forth in
Section 2.3.

 

Section
2.3           Adjustment to Purchase Price and Closing Deliverables.

 

Section
2.3.1           Estimated Purchase Price. Schedule 2.3.1
sets forth a calculation of the Estimated Purchase Price prepared by the Company. On the Closing Date, the following payments shall
be made:

 

Section
2.3.1.1           Purchaser shall pay a cash amount equal to, in
the aggregate, the Escrow Amount to Citibank, N.A., as escrow agent (the “Escrow Agent”), which amount shall
be deposited into the Adjustment Escrow Account and the Indemnity Escrow Account pursuant to the Escrow Agreement by and among
Seller, Purchaser and the Escrow Agent attached as Exhibit B hereto (the “Escrow Agreement”);

 

Section
2.3.1.2           Purchaser shall withhold from the Estimated Purchase
Price and pay a cash amount equal to, in the aggregate, the Section 116 Escrow Amount to the Escrow Agent, which amount shall be
deposited into the Section 116 Escrow Account pursuant to the Section 116 Escrow Agreement by and among Seller, Purchaser and the
Escrow Agent attached as Exhibit C hereto (the “Section 116 Escrow Agreement”);

 

Section
2.3.1.3           Purchaser shall pay a cash amount equal to the
aggregate amount due to Seller in accordance with Section 2.2.1 minus the Escrow Amount and minus the Section 116
Escrow Amount, which amount shall be paid by wire transfer of immediately available funds to the account designated on Schedule
2.3.1.2;

 

Section
2.3.1.4           Purchaser shall pay, or cause the Company to pay,
to the respective holders thereof, such holder’s respective portion of the estimated Closing Date Funded Indebtedness set
forth on Schedule 2.3.1;

 

    	 	13	 

     

    

 

Section
2.3.1.5           Purchaser shall pay, or cause the Company to pay,
the respective payees thereof such payee’s applicable portion of the estimated Seller Expenses set forth on Schedule 2.3.1,
and in the case of any respective Seller Expenses owed or otherwise payable in connection with the transaction to any employee
of the Company with respect to any Employee Benefit Plan (including any transaction bonuses or similar amounts), Purchaser shall
pay or cause the Company to pay, such amounts directly to the respective payee (and shall pay or withhold, or cause to be withheld
or paid, as the case may be, any Taxes required to be withheld from such amount to the extent required in accordance with applicable
Law and remitted to the applicable Tax authority), in each case in accordance with customary payroll practices; and

 

Section
2.3.1.6           Purchaser shall pay to the R&W Policy Provider
(or its designee), an amount equal to one hundred percent (100%) of the premium for the R&W Insurance Policy and all other
amounts payable with respect thereto.

 

Section
2.3.2           Actions at Closing. Upon the terms of this
Agreement, at the Closing, the following shall occur:

 

Section
2.3.2.1           Purchaser shall deliver or cause to be delivered
to Seller (i) a certificate executed by the secretary or other authorized Person of Purchaser attaching, and attesting to, (1)
the Governing Documents of Purchaser, (2) the resolutions adopted by the Board of Directors of Purchaser with respect to the transactions
contemplated by this Agreement and (3) the identities and signatures of the officers or other authorized Persons of Purchaser authorized
to execute this Agreement and any other agreements to be executed by Purchaser in connection with the transactions contemplated
by this Agreement; (ii) counterparts to the Escrow Agreement and the Section 116 Escrow Agreement duly executed by Purchaser or
its applicable Affiliate; and (iii) a copy of the R&W Insurance Policy, accompanied by evidence that it has been bound; and

 

Section
2.3.2.2           Seller shall deliver or cause to be delivered to
Purchaser (i) share certificates representing all of the Shares, duly endorsed in blank or accompanied by stock transfer powers
or a lost certificate affidavit representing stock certificates which have been lost, stolen, or destroyed, (ii) letters of resignation
from each of the officers and directors of the Company whose resignation Purchaser has requested prior to Closing, (iii) good standing
certificates for each of Seller and the Company, in each case, dated no later than five (5) Business Days prior to Closing Date,
(iv) customary payoff letters (to the extent applicable) from the applicable lenders with respect to all Funded Indebtedness set
forth on Schedule 2.3.2.2(iv), together with all lien and mortgage releases as are reasonably necessary to release
as of record all Liens securing any such Funded Indebtedness (in form and substance reasonably satisfactory to Purchaser), (v)
a certificate executed by the secretary or other authorized Person of the Company attaching, and attesting to, (1) the Governing
Documents of the Company, (2) the resolutions adopted by the Board of Directors of the Company with respect to the transactions
contemplated by this Agreement and (3) the identities and signatures of the officers or other authorized Persons of the Company
authorized to execute any agreements to be executed by the Company in connection with the transactions contemplated by this Agreement;
(vi) a certificate executed by the secretary or other authorized Person of Seller attaching, and attesting to, (1) the Certificate
of Formation of Seller, (2) the resolutions adopted by the Board of Managers of Seller with respect to the transactions contemplated
by this Agreement and (3) the identities and signatures of the officers or other authorized Persons of Seller authorized to execute
the Agreement and any other agreements to be executed by Seller in connection with the transactions contemplated by this Agreement,
(vii) evidence reasonably satisfactory to Purchaser of the termination of any related party agreements between the Company, on
one hand, and Seller or an Affiliate of Seller (other than the Company) on the other hand, (viii) an executed consent in connection
with the transactions contemplated by this Agreement from each of the parties described on Schedule 2.3.2.2(viii), (ix)
executed employment agreements from each of the individuals listed on Schedule 2.3.2.2(ix), (x) counterparts to the Escrow
Agreement and the Section 116 Escrow Agreement duly executed by Seller or its applicable Affiliate, and (xi) evidence reasonably
satisfactory to Purchaser of a fully-paid Tail Policy effective as of Closing.

 

    	 	14	 

     

    

 

Section
2.3.3           Preparation of the Final Statement of Purchase
Price.

 

Section
2.3.3.1           As soon as practicable, but no later than ninety
(90) days after the Closing Date, Purchaser shall prepare in good faith and deliver to Seller (A) a proposed calculation of
the Net Working Capital (the “Proposed Closing Date Statement of Net Working Capital”), (B) a proposed calculation
of the amount of Cash and Cash Equivalents (the “Proposed Cash and Cash Equivalents”), (C) a proposed calculation
of the amount of Closing Date Funded Indebtedness (the “Proposed Closing Date Funded Indebtedness”), (D) a proposed
calculation of the amount of Seller Expenses (the “Proposed Seller Expenses”), (E) a proposed calculation of
Closing Liabilities (the “Proposed Closing Liabilities”) and (F) a proposed calculation of the Purchase Price
(the “Proposed Purchase Price Calculation”) and, in each case, the components thereof. The Proposed Closing
Date Statement of Net Working Capital, the Proposed Cash and Cash Equivalents, the Proposed Closing Funded Indebtedness, the Proposed
Seller Expenses, the Proposed Closing Liabilities and the Proposed Purchase Price Calculation shall collectively be referred to
herein from time to time as the “Proposed Closing Date Calculations.” Notwithstanding anything to the contrary
set forth herein, if Purchaser fails to timely deliver any of the Proposed Closing Date Calculations, then the calculation of the
Estimated Purchase Price shall represent the Final Statement of Purchase Price and shall be conclusive and binding on the parties
hereto.

 

Section
2.3.3.2           Upon the delivery of the Proposed Closing Date
Calculations to Seller, Purchaser shall provide reasonable access to Seller, Seller’s accountants, and Seller’s advisors
during normal business hours to the Company’s accounting personnel, including the chief financial officer, the Company’s
and/or Purchaser’s accountants (subject to customary access and indemnification letters), and the books and records of the
Company solely as the foregoing relates to the preparation of the Proposed Closing Date Calculations for the sole purpose of completing
the Final Statement of Purchase Price. Purchaser agrees that following the Closing Date and prior to the completion of the Final
Statement of Purchase Price, Purchaser shall, and shall cause the Company to, preserve and not alter or destroy any of the books
and records of the Company on which the calculation of the Purchase Price or any component thereof are to be based.

 

    	 	15	 

     

    

 

Section
2.3.3.3           If Seller does not give written notice of dispute
(a “Purchase Price Dispute Notice”) to Purchaser within forty-five (45) days of receiving the Proposed Closing
Date Calculations, Seller and Purchaser agree that (A) the Proposed Closing Date Statement of Net Working Capital shall be deemed
to set forth the Net Working Capital, (B) the Proposed Cash and Cash Equivalents shall be deemed to set forth the Cash and Cash
Equivalents, (C) the Proposed Closing Date Funded Indebtedness shall be deemed to set forth the Closing Date Funded Indebtedness,
(D) the Proposed Seller Expenses shall be deemed to set forth the Seller Expenses, (E) the Proposed Closing Liabilities shall be
deemed to set forth the Closing Liabilities and (F) the Proposed Purchase Price Calculation shall be deemed to set forth the Purchase
Price; provided that, in the event Purchaser and the Company do not provide any papers or documents reasonably requested
by Seller within five (5) days of request therefor (or such shorter period as may remain in such forty-five (45) day period), such
forty-five (45) day period shall be extended by one day for each additional day required for Purchaser and the Company to fully
respond to such request. If Seller gives a Purchase Price Dispute Notice to Purchaser within such forty-five (45)-day period (including,
for the avoidance of doubt, any extended period pursuant to the preceding sentence), Purchaser and Seller will use commercially
reasonable efforts to resolve the dispute during the forty-five (45)-day period (the “Discussions Period”) commencing
on the date Purchaser receives the Purchase Price Dispute Notice from Seller. During the Discussions Period, each of Purchaser
and Seller and their respective accountants shall have reasonable access during normal business hours to the working papers of
the other prepared in connection with the Proposed Closing Date Calculations or the Purchase Price Dispute Notice, as the case
may be, its accountants (subject to customary access and indemnification letters), if any, and to the books and records of the
Company solely as the foregoing relates to the Proposed Closing Date Calculations or the Purchase Price Dispute Notice. If Seller
and Purchaser do not obtain a final resolution within the Discussion Period, then the items remaining in dispute (as set forth
by Seller in the Purchase Price Dispute Notice or by Purchaser in the Proposed Closing Date Calculations) may be submitted thereafter
by Seller or Purchaser to Ernst & Young LLP or another nationally-recognized, independent accounting firm reasonably acceptable
to Seller and Purchaser (the “Accounting Firm”). The terms of appointment and engagement of the Accounting Firm
shall be as agreed upon between Seller and Purchaser, and any associated fees and expenses shall initially be borne fifty percent
(50%) by Seller and fifty percent (50%) by Purchaser; provided, that such fees shall ultimately be allocated in accordance
with Section 2.3.3.4. Seller and Purchaser will use their respective commercially reasonable best efforts to cause the Accounting
Firm to render a determination of the applicable dispute within forty-five (45) days after referral of the matter to the Accounting
Firm, which determination must be in writing and must set forth, in reasonable detail, the basis therefor. In making its determination
regarding such applicable dispute, the Accounting Firm shall select, with respect to each item in dispute, an amount between or
equal to Purchaser’s position as set forth in the Proposed Closing Date Calculations or Seller’s position as set forth
in the Purchase Price Dispute Notice. In connection with the resolution of any dispute, the Accounting Firm shall have reasonable
access during normal business hours to all documents, records, work papers, facilities and personnel necessary to make its determination.
Each party will be afforded the opportunity to present to the Accounting Firm any material such party deems relevant to the determination
and shall have a continuing opportunity to discuss the matter and its position with the Accounting Firm, but no such presentation
of materials or communication shall be on an ex parte basis and each party shall be afforded access to copies of all materials
presented by each other party. The determination of the Accounting Firm shall be conclusive and binding upon Seller, Purchaser
and the other parties hereto and, subject to Section 8.5, Section 8.6 and Section 8.14, each of the parties
hereto shall be entitled to enforce such determination in a court of competent jurisdiction. The Accounting Firm’s function
shall be to act as an expert and not as an arbitrator and to review only those items which are in dispute, and such review shall
be limited to whether the disputed items (as set forth by Seller in the Purchase Price Dispute Notice or by Purchaser in the Proposed
Closing Date Calculations), including the related calculations thereto, were prepared in accordance with this Agreement. The “Final
Statement of Purchase Price” shall mean the Proposed Purchase Price Calculations together with any revisions thereto
pursuant to this Section 2.3.3.3.

 

    	 	16	 

     

    

 

Section
2.3.3.4           In the event Seller and Purchaser submit any disputes
to the Accounting Firm for resolution as provided in Section 2.3.3.3, Purchaser shall pay a portion of the fees and expenses
of the Accounting Firm equal to 100% multiplied by a fraction, (x) the numerator of which is the disputed items that are resolved
in favor of Seller (that being the difference between the Accounting Firm’s determination and the Seller's position set forth
in the Purchase Price Dispute Notice), and (y) the denominator of which is the total disputed items (that being the sum total by
which Purchaser's disputed items as set forth in the Proposed Closing Date Calculations and Seller’s position set forth in
the Purchase Price Dispute Notice differ from the determination of the Accounting Firm), and Seller will be responsible for and
shall pay the remainder of the fees and expenses of the Accounting Firm from the Adjustment Escrow Funds (and Seller and Purchaser
shall instruct the Escrow Agent accordingly). For example, should the amount of the disputed items total $1,000 and the Accounting
Firm awards $600 in favor of Seller's position, 60% of the Accounting Firm’s fees and expenses would be borne by Purchaser
and 40% of the Accounting Firm’s fees and expenses would be borne by Seller.

 

Section
2.3.4           Adjustment to Estimated Purchase Price.

 

Section
2.3.4.1          If the Actual Adjustment is a positive amount,
subject to payment of any Additional Section 116 Escrow Amount in accordance with the Section 116 Escrow Agreement, Purchaser will
pay to Seller such positive amount by wire transfer or delivery of immediately available funds, in each case, within three (3)
Business Days after the date on which the Purchase Price is finally determined pursuant to Section 2.3.3.

 

Section
2.3.4.2          If the Actual Adjustment is a negative amount,
Purchaser and Seller will instruct the Escrow Agent to pay to Purchaser such amount from the Adjustment Escrow Funds by wire transfer
or delivery of immediately available funds, in each case, within three (3) Business Days after the date on which the Purchase Price
is finally determined pursuant to Section 2.3.3.

 

Section
2.3.4.3           Within three (3) Business Days after the date on
which the Purchase Price is finally determined pursuant to this Section 2.3, Purchaser and Seller shall deliver joint written
instructions to the Escrow Agent instructing the Escrow Agent to deliver any Adjustment Escrow Funds not distributed to Purchaser
pursuant to Section 2.3.4.2 to Seller.

 

Section
2.3.4.4           For the avoidance of doubt, recovery from the Adjustment
Escrow Account shall be the sole and exclusive remedy available to Purchaser and its Affiliates for any negative Actual Adjustment
under Section 2.3.4.2 and Seller shall not have any liability or obligation under this Section 2.3 for any portion
of the Actual Adjustment in excess of the amount of the then-remaining Adjustment Escrow Funds.

 

    	 	17	 

     

    

 

Section
2.4           Closing. The closing of the transactions
contemplated hereby (the “Closing”) shall take place at the offices of Covington & Burling LLP, The New
York Times Building, 620 Eighth Avenue, New York, New York 10018, at 10:00 A.M. Eastern Time on the date hereof, or at such other
place (including remotely) or on such other date and time as Seller and Purchaser shall mutually agree. The time and date of the
Closing is herein called the “Closing Date.” The Closing shall be effective as of 12:00 A.M. Eastern Time on
the Closing Date.

 

Section
2.5           Section 116 of the Tax Act.

 

Section
2.5.1          Seller will apply for a certificate pursuant to section
116 of the Tax Act in respect of the sale of the Shares by Seller to Purchaser (the “Section 116 Certificate”).

 

Section
2.5.2           In order to satisfy the requirements under section
116 of the Tax Act in respect of the sale of the Shares and without duplication of amounts withheld pursuant to Section 2.3.1.2,
Purchaser will be entitled to withhold from amounts payable at Closing in respect of such Shares $3,822,636.63 (together with any
Additional Section 116 Escrow Amount, the “Section 116 Escrow Amount”), which represents the amount that it
may be required to remit pursuant to subsection 116(5) of the Tax Act in connection with the purchase of such Shares (being an
amount equal to 25% of the Purchase Price) and shall deposit such amount with the Section 116 Escrow Agent to be held by the Section
116 Escrow Agent in a segregated account (the “Section 116 Escrow Account”) pursuant to the terms of the Section
116 Escrow Agreement in accordance with Section 2.3.1.2.

 

Section
2.5.3           Contemporaneously with the signing of this Agreement,
the parties are entering into the Section 116 Escrow Agreement pursuant to which the Escrow Agent will hold and disburse the Section
116 Escrow Amount.

 

Section
2.5.4           Purchaser, the Company and their respective Affiliates
shall cooperate with Seller in obtaining the Section 116 Certificate and none of Purchaser or any of its Affiliates shall take
any action which would interfere with, or cause a delay in, Seller obtaining the Section 116 Certificate or the release of the
Section 116 Escrow Amount. If the Purchaser or any of its Affiliates unreasonably takes or omits to take any action which causes
a delay in receipt of the Section 116 Certificate or causes the Section 116 Escrow Amount to fail to be released when and as required
pursuant to the Section 116 Escrow Agreement, then (a) any such amount which is not released shall accrue interest for the period
commencing on the date such amount would have otherwise been released and ending on the date when such amount is released, at a
rate per annum equal to 5% plus the rate of interest publicly announced by JPMorgan Chase Bank, N.A. in New York, New York as its
Prime Lending Rate on the date on which such amount’s release becomes past due and Purchaser shall pay such interest to Seller
(or its designees) and (b) Purchaser shall pay all of the Sellers and their respective Affiliates’ reasonable costs
and expenses (including reasonable any penalties, fines and interest payable to the CRA, any amounts due to the Escrow Agent and
attorney’s fees) in connection with all measures to collect such amount and interest.  It is understood and agreed that
none of the Purchaser, the Company or any of their respective Affiliates shall have any right to, or interest in, the Section 116
Escrow Amount and none of them shall have any right to receive any amounts from the Section 116 Escrow Account, including as an
offset to other Claims that the Purchaser or its Affiliates may have against Seller or its Affiliates. Notwithstanding the immediately
foregoing clause, Seller and Purchaser agree and acknowledge that an amount remitted to the Receiver General of Canada pursuant
to Section 5(a), (b), (d) or (e) of the Section 116 Escrow Agreement shall be remitted on behalf of Seller in respect of Purchaser’s
obligations pursuant to subsection 116(5) of the Tax Act.

 

    	 	18	 

     

    

 

Article
III—REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby
represents and warrants to Purchaser that except as set forth on the disclosure schedule attached hereto (the “Schedules”
and each individually a “Schedule”), which exceptions or disclosures shall be deemed to be part of the representations
and warranties made hereunder, that the following are true and correct as of the date of this Agreement (except to the extent expressly
relating to a specific date, in which event such representation or warranty shall be made as of such date):

 

Section
3.1           Organization; Good Standing; Qualification
and Power. The Company is a company limited by shares duly organized, validly existing and in good standing under the
laws of Nova Scotia and has the requisite power and authority to own or lease its material properties and material assets and
to carry on its business as presently conducted. The Company is duly qualified to transact business and is in good standing in
each jurisdiction where the nature of its business or the ownership of its assets make such qualification necessary except where
failure to so qualify or be in good standing would not be material to the Company. The Company has previously made available to
Purchaser true and complete copies of the Governing Documents of the Company as currently in effect.

 

Section
3.2           Authority; Execution and Delivery; Enforceability.
The Company has the requisite power and authority to execute and deliver this Agreement and the other Documents to which it is
a party and to perform its obligations hereunder and thereunder, all of which have been duly authorized by all requisite corporate
action on the part of the Company. The Company has duly executed and delivered this Agreement and each other Document to which
it is a party. Each of the Documents to which the Company is or will be a party is, or upon its execution and delivery will be
(assuming that this Agreement and each other Document has been duly and validly authorized, executed and delivered by the other
parties hereto and thereto), a valid and binding agreement of the Company, enforceable against the Company in accordance with
its terms, except as the enforceability hereof or thereof may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights generally or (ii) applicable equitable principles
(whether considered in a proceeding at law or in equity).

 

    	 	19	 

     

    

 

Section
3.3           Non-contravention. Neither the execution
and delivery of this Agreement or the other Documents to which the Company is a party nor the fulfillment of and the performance
by the Company of its obligations hereunder and thereunder will (i) contravene any provision contained in its Governing Documents,
(ii) conflict with, violate or result in a breach (with or without the lapse of time, the giving of notice or both) of, or constitute
a default (with or without the lapse of time, the giving of notice or both) under (A) any contract, agreement, commitment,
indenture, mortgage, lease, pledge, note, bond, license, permit or other instrument or obligation or (B) any judgment, order,
decree, statute, law, rule or regulation or other restriction of any Governmental Authority, in each case to which the Company
is a party or by which it is bound or to which any of its assets or properties are subject, (iii) except as contemplated
herein or with respect to Permitted Liens, result in the creation or imposition of any Lien on any of the assets or properties
of the Company, or (iv) result in the acceleration of, or permit any Person to terminate, modify, cancel, accelerate or declare
due and payable prior to its stated maturity, any obligation of the Company, which in the case of any of clauses (ii) through
(iv) above, would have a Material Adverse Effect.

 

Section
3.4           Consents. No notice to, filing with,
or authorization, registration, consent or approval of any Governmental Authority or other Person is necessary for the execution,
delivery or performance of this Agreement or the other Documents to which the Company is a party or the consummation of the transactions
contemplated hereby or thereby by the Company, except for notices, filings and approvals set forth on Schedule 3.4.

 

Section
3.5           Capitalization. As of the date of
this Agreement, the authorized, issued and outstanding share capital of the Company is as set forth on Schedule 3.5. All
of the outstanding Shares have been validly issued. There are (a) no other issued or outstanding equity securities of the Company,
(b) no other issued and outstanding securities of the Company convertible into or exchangeable for, at any time, equity securities
of the Company, and (c) no issued and outstanding stock appreciation, phantom stock, profit participation or similar rights with
respect to the Company. There are no (i) outstanding obligations of the Company to repurchase, redeem or otherwise acquire
any securities of the Company or (ii) voting trusts, proxies or other agreements with respect to the voting or transfer of
the Shares. The Company has no Subsidiaries and does not own or have any interest in any equity securities or convertible securities
of, or have an ownership interest in, any other Person.

 

Section
3.6           Financial Statements.

 

Section
3.6.1           Attached hereto as Schedule 3.6.1 are true
and complete copies of the following financial statements (such financial statements including the notes thereto, the “Financial
Statements”):

 

Section
3.6.1.1           the audited balance sheet of the Company as of
December 31, 2017, the related audited statement of operations and comprehensive loss of the Company for the year ended December 31,
2017, the related audited statement for changes in stockholder's equity of the Company for the year ended December 31, 2017, and
the related audited statement of cash flows of the Company for the year ended December 31, 2017 (the “2017 Audited Financial
Statements”), and the unaudited balance sheet of the Company as of December 31, 2016 and the related unaudited income
statement of the Company for the year ended December 31, 2016; and

 

    	 	20	 

     

    

 

Section
3.6.1.2           the unaudited balance sheet of the Company as of
June 30, 2018 (the “Latest Balance Sheet”; and together with the 2017 Audited Financial Statements, the “GAAP
Financial Statements”), the related unaudited statement of operations and comprehensive loss of the Company for the six
(6)-month period ending on such date, the related unaudited statement for changes in stockholder's equity of the Company for the
six (6)-month period ending on such date, and the related unaudited statement of cash flows of the Company for the six (6)-month
period ending on such date.

 

Section
3.6.2           The GAAP Financial Statements have been prepared
in all material respects accordance with GAAP, applied on a consistent basis throughout the periods covered thereby, except as
may be indicated in the notes thereto and except, in the case of unaudited interim Financial Statements, for the absence of footnotes
and subject to normal year-end adjustments. The Financial Statements fairly present, in all material respects, the financial position,
results of operations and cash flows of the Company as of the dates and for the periods indicated (subject, in the case of the
unaudited interim Financial Statements, to the absence of footnotes and to normal year-end adjustments).

 

Section
3.6.3           The accounts receivable of the Company shown on the
Latest Balance Sheet and the accounts receivable arising since the Latest Balance Sheet (a) arose from bona fide transactions
engaged in or entered into by the Company relating to the Business in the ordinary course of business substantially consistent
with past practices, and (b) subject to a reserve for bad debts shown on the Latest Balance Sheet, are valid obligations payable
to the Company in accordance with their terms. The Company has not received any written notice or, to the Knowledge of the Company,
oral notice, that any of its accounts receivable will not be collectible in full, net of any reserves shown on the Latest Balance
Sheet (to the extent such reserve is not since released).

 

Section
3.6.4           The books of account and other financial records
of the Company (a) reflect all material items of income and expense and all material assets and Liabilities required to be
reflected therein in accordance with GAAP applied on a basis consistent with the Latest Balance Sheet, and (b) are in all
material respects complete and correct.

 

Section
3.6.5           The Company maintains a system of internal accounting
controls of a type that are customary for similarly sized privately owned companies in its jurisdiction of incorporation that are
designed to (a) provide reasonable assurances regarding the reliability of the GAAP Financial Statements in accordance with
GAAP applied on a basis consistent with the Latest Balance Sheet, and (b) communicate to the Company’s principal executive
officer and principal financial officer the type of information that would be required to be disclosed in the Financial Statements.
The Company believes that such controls are functioning as intended in all material respects.

 

    	 	21	 

     

    

 

Section
3.6.6           The Company is not subject to any “off-balance
sheet arrangement” (as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the United States Securities Exchange
Act of 1934, as amended).

 

Section
3.7           Absence of Undisclosed Liabilities.
The Company has no material obligation or liability except for obligations and liabilities which are disclosed on the Latest Balance
Sheet or which would not be required to be disclosed on the Latest Balance Sheet in accordance with GAAP.

 

Section
3.8           Absence of Certain Developments.
During the period beginning on the date of the Latest Balance Sheet and ending on the date of this Agreement, (i) there has
not been any Material Adverse Effect (ii) the Company has conducted its Business in all material respects in the ordinary
course of business substantially consistent with past practices, and (iii) the Company has not:

 

(a) amended or modified
its Governing Documents;

 

(b) split, combined
or reclassified any shares of its capital stock;

 

(c) (1) issued, sold,
granted or otherwise disposed of any of the Company’s capital stock or any other equity security, (2) issued, sold, granted
or otherwise disposed of any options, warrants, calls, subscription or other right of any kind, fixed or contingent, that directly
or indirectly calls for the issuance, sale, pledge or other disposition of any shares of the Company’s capital stock or any
other equity security, (3) entered into of any contract calling for any transaction referred to in preceding clauses (1) or (2),
or (4) made any other change in the Company’s capital structure;

 

(d) declared, set aside
or paid any dividends or other distributions (whether in cash, stock, property or any combination thereof) on or in respect of
any of its capital stock or any other equity security, or redeemed, purchased or acquired for value any shares of its capital stock
or any other equity security;

 

(e) subjected any of
its properties or assets or any leased real property to any Lien, except for, if any, (1) Permitted Liens and (2) Liens incurred
in connection with any financing obtained by Purchaser;

 

(f) changed or modified
in any material respect any method of accounting or accounting practice, including for Tax purposes, or Tax calculating or Tax
reporting methods or practice, except as required by applicable law, GAAP or as disclosed in the notes to the Latest Balance Sheet;

 

(g) consented to any
extensions or waived any statute of limitations in respect of Taxes or executed or filed with any Governmental Authority any agreement
extending the period of assessment or collection of any Taxes;

 

(h) made or amended
any elections for Tax purposes;

 

(i) adopted a taxable
year other than the fiscal year ending December 31;

 

    	 	22	 

     

    

 

(j) settled or compromised
any material claim or assessment relating to Taxes;

 

(k) made any payments,
become obligated to make any payments, or become a party to any plan, program or agreement that could obligate it to make any payments,
separately or in the aggregate, that would not be fully deductible under Code Section 280G;

 

(l) made any change
or modification to the Company’s cash management practices and its policies, practices and procedures with respect to (1)
billing and collection of accounts receivable or unbilled charges, (2) establishment of reserves for uncollectible accounts, (3)
accrual of accounts receivable, inventory control, prepayment of expenses, payment of trade accounts payable, accrual of other
expenses, deferral of revenue and acceptance of customer deposits, or (4) discounts, rebates or allowances;

 

(m) acquired assets,
other than in the ordinary course of business substantially consistent with past practices;

 

(n) sold, assigned
or transferred, or granted any license or sublicense to, any patents, trademarks, trade names, copyrights, trade secrets or other
material intangible assets;

 

(o) made or granted
any bonus or any compensation or salary increase or entered into any employment Contract to any current (or former) employee of
the Company, or other individual who performs services for the Company whose annual base salary is (or was at the time of his or
her termination) in excess of $100,000 (except in the ordinary course of business substantially consistent with past practices
or as required under the terms of an applicable contract, which contract has been disclosed on Schedule 3.8 to the extent
in effect as of the date of this Agreement);

 

(p) terminated, hired
or transferred any senior management employee of the Company;

 

(q) made any capital
expenditures or appropriations or commitments therefore, except any capital expenditure or appropriations or commitment not in
excess of $50,000 individually or $100,000 in the aggregate;

 

(r) made any loans
or advances to, or guarantees for the benefit of, any Persons (except advances to employees for business expenses in the ordinary
course of business substantially consistent with past practices);

 

(s) established, adopted,
entered into, materially amended or materially increased benefits under, or terminated any material benefit or compensation plan,
arrangement or agreement (including, without limitation, bonuses, profit sharing, stock option, restricted stock, pensions, retirement
benefits, deferred compensation, severance or termination benefits) for any employees of the Company or other individuals who perform
services for or on behalf of the Company;

 

(t) incurred any damage,
destruction or loss (whether or not covered by insurance), ordinary wear and tear excepted, in an amount exceeding $50,000 individually
or $100,000 in the aggregate affecting the property or assets of the Company;

 

    	 	23	 

     

    

 

(u) made any capital
investment in any other Person except (1) in the ordinary course of business substantially consistent with past practices or (2) for
such capital investments that are reflected in the Company’s budget for the fiscal year ending December 31, 2018;

 

(v) sold, transferred,
leased or otherwise disposed of any material assets of the Company, except for sales, transfers, leases and other dispositions
of inventory in the ordinary course of business substantially consistent with past practices;

 

(w) entered into or
agreed to enter into any merger, consolidation, reorganization, or similar agreement to acquire or sell any business or any Person,
engaged in any new material line of business, invested in, made a capital contribution to, or otherwise acquired the securities
of, any other Person, or acquired all or substantially all of the assets of any other Person;

 

(x) entered into any
agreements with any Affiliates of the Company or Seller or any of their respective directors, officers, employees, or stakeholders;
or

 

(y) authorized, approved,
agreed or committed to do any of the foregoing.

 

Section
3.9           Compliance with Laws.

 

Section
3.9.1           The Business is in compliance with all applicable
laws, rules, regulations, codes, ordinances and orders of all Governmental Authorities, including FDA and Health Canada good manufacturing
practices and reporting obligations, except where failure to so comply would not have a Material Adverse Effect. This Section
3.9 does not relate to matters with respect to Taxes (which are the subject of Section 3.11), Environmental Matters
(which are the subject of Section 3.12), Employee Matters (which are the subject of Section 3.13) and Employee Benefit
Plans (which are the subject of Section 3.14).

 

Section
3.9.2          The Company has all material permits, authorizations,
licenses and certificates necessary or required for the conduct of the Business by it and the ownership, use and operation of its
assets (the “Material Permits”), and (i) the Material Permits are valid and in full force and effect, and (ii)
the Company is not, in any material respect, in breach or violation of, or default under, the Material Permits except for any such
breach or violation that would not have a Material Adverse Effect.

 

Section
3.9.3          Since January 1, 2016, the Company has not been a
party to any pending or, to the Knowledge of the Company, threatened Claim relating to any defect (whether of manufacturing, labeling
or otherwise) with respect to any Product.

 

Section
3.9.4           Since January 1, 2016, no warranty or product liability
Claim (including any claim alleging personal injury and/or death) has been received by the Company and, to the Knowledge of the
Company, no such Claim has been threatened against the Company, in any case relating to any of the Products, and, to the Knowledge
of the Company, there is no fact or circumstance that would give rise to a warranty Claim or a Claim for product liability.

 

    	 	24	 

     

    

 

Section
3.10         Litigation. As of the date of this Agreement,
there are no lawsuits, legal actions, proceedings, claims, complaints, injunctions, orders or investigations by or before any
Governmental Authority (“Proceedings”) pending or, to the Company’s Knowledge, threatened in writing
(i) against the Company, or (ii) seeking to enjoin the transactions contemplated hereby, which in the case of (i) above
if determined adversely to the Company would have a Material Adverse Effect. This Section 3.10 does not relate to matters
with respect to Taxes (which are the subject of Section 3.11), Environmental Matters (which are the subject of Section
3.12), Employee Matters (which are the subject of Section 3.13) and Employee Benefit Plans (which are the subject of
Section 3.14).

 

Section
3.11         Taxes. The Company has duly and timely filed
with the appropriate Government Authority all Tax Returns required to be filed by it, all such Tax Returns have been prepared
in compliance with all applicable laws and regulations and are true, correct and complete in all respects and have not been amended
since filed. All Taxes owed by or with respect to the Company, shown as due on any Tax Return, and all other Taxes due and payable,
have been timely paid. Notices of assessment have been issued or self-assessments have been made (as applicable) in respect of
all liabilities for all taxable periods ending on or before December 31, 2016. The Company is resident in Canada, and not resident
in any other country, for purposes of the Tax Act.

 

Section
3.11.1         In addition:

 

Section
3.11.1.1          the Company is not and has never been the subject
of any Tax Contest;

 

Section
3.11.1.2          the Company has not consented to extend the time,
or is the beneficiary of any extension of time, in which any Tax may be assessed or collected by any taxing authority and no such
extension has been requested by any taxing authority;

 

Section
3.11.1.3          the Company has not received from any taxing authority
any notice of proposed adjustment, deficiency or underpayment of Taxes which has not been satisfied by payment or been withdrawn.

 

Section
3.11.1.4         the Company is not a party to, bound by or obligated
under any Tax allocation, Tax indemnification or Tax sharing agreement or similar contract or arrangement, has any liability for
the Taxes (or any portion thereof) of any other Person, or has any contractual obligation to pay the amount of any Tax benefits
or Tax refunds (or an amount determined by reference thereto) realized or received by it to any former shareholder(s) or other
Person(s);

 

Section
3.11.1.5          the Company has never been a party to a reportable
transaction within the meaning of Section 6707A(c)(1) of the Code and Treasury Regulation Section 1.6011-4(b). All accruals or
reserves for Taxes reflected in the GAAP Financial Statements are adequate to cover Taxes accruing with respect to or payable by
the Company for all Pre-Closing Tax Periods and the Company has not incurred or accrued any liability for Taxes subsequent to the
date of the GAAP Financial Statements other than in the ordinary course of business substantially consistent with past practices;

 

    	 	25	 

     

    

 

Section
3.11.1.6           there are no Encumbrances for Taxes upon the assets
of the Company;

 

Section
3.11.1.7           no Claim has been made by any taxing authority
in a jurisdiction where the Company does not file Tax Returns that the Company is or may be subject to taxation by that jurisdiction;

 

Section
3.11.1.8           to the Knowledge of the Company, the Company is
not required to file a Tax Return in any jurisdiction other than the jurisdictions listed in Schedule 3.11.1.8;

 

Section
3.11.1.9          the Company has not, directly or indirectly, transferred
property to or supplied services to, or acquired property or services from, any Person with whom it was not dealing at arm’s
length (for purposes of the applicable Tax laws) for consideration other than consideration equal to the fair market value of the
property or services at the time of the transfer, supply or acquisition or such property or services, failed to make or obtain,
where required, records or documents that meet the requirements of any applicable transfer pricing laws, or entered into any advance
pricing agreement with any Governmental Authority;

 

Section
3.11.1.10        the Company is registered under the VAT Legislation of each
jurisdiction where and to the extent it is required to be so registered, has duly and timely complied with all applicable VAT Legislation,
and has paid and collected, and remitted to the appropriate Governmental Authority, all amounts required by such legislation;

 

Section
3.11.1.11        the Company has not (a) granted a power-of-attorney relating
to Tax matters to any person or (b) applied for and/or received a ruling or determination from a taxing authority regarding a past
or prospective transaction of the Company;

 

Section
3.11.1.12        all Taxes that the Company was required by law to withhold
or collect have been withheld or collected and, to the extent required by law, have been paid over to the proper taxing authority;

 

Section
3.11.1.13         neither the Company, the Purchaser nor any of their Affiliates
will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period
(or part thereof) ending after the Closing Date as a result of: (a) any change in accounting method adopted by or on behalf of
the Company on or prior to the Closing Date, (b) any closing agreement as described in Section 7121 of the Code (or any similar
or corresponding provision of state, local, provincial, territorial, federal or foreign law) entered into by or on behalf of the
Company on or prior to the Closing Date, (c) any installment sale entered into by the Company on or prior to the Closing Date,
(d) election by the Company under Section 108(i), (e) Section 965 of the Code, or (f) a reserve, deduction, prepaid amount, advance
payment or tax credit;

 

Section
3.11.1.14        Seller has delivered or made available to Purchaser copies
of each of the Tax Returns filed on behalf of the Company since December 31, 2014;

 

    	 	26	 

     

    

 

Section
3.11.1.15         the Company has not applied for, been granted, or agreed
to any accounting method change for which it will be required to take into account any adjustment under Section 481 of the Code
(or any similar provision of the corresponding tax laws of any nation, state or locality), and no taxing authority has proposed
or purported to require any such adjustment or change in accounting method, and no such adjustment under Section 481 of the Code
or the corresponding tax laws of any nation, state or locality will be required of the Company upon the completion of, or by reason
of, the transactions contemplated by this Agreement;

 

Section
3.11.1.16        the Company has never been a member of any consolidated,
combined, unitary or other similar group of companies and does not have any liability for Taxes of another person as a transferee
or successor;

 

Section
3.11.1.17         the Shares of the Company are not considered taxable Canadian
property for Canadian Tax purposes;

 

Section
3.11.1.18         the Company has complied with all applicable transfer pricing
requirements; and

 

Section
3.11.2         Notwithstanding anything herein to the contrary, the representations
and warranties in this Section 3.11 are the sole and exclusive representations and warranties of the Company concerning
Tax matters.

 

Section
3.12         Environmental Matters.

 

Section
3.12.1         The Company is and, within the past six (6) years, has been,
in compliance with all Environmental Laws, except for any such failure to comply as would not reasonably be expected to have a
Material Adverse Effect.

 

Section
3.12.2         The Company is in compliance with all permits, licenses and
other authorizations that are required for its current operations by Environmental Laws, except for any such failure to have or
comply as would not reasonably be expected to have a Material Adverse Effect and the Company has received no written notice which
may require the modification, cancellation, suspension or limitation of any such required permits, licenses or other authorizations
or the addition of any conditions of compliance which would reasonably be expected to have a Material Adverse Effect.

 

Section
3.12.3         As of the date of this Agreement, there are no Proceedings pending
or, to the Company’s Knowledge, threatened in writing against the Company pursuant to Environmental Laws which, if determined
adversely to the Company, would reasonably be expected to have a Material Adverse Effect.

 

Section
3.12.4         The Company has not released or disposed of any toxic or hazardous
material, substance or waste in violation of any Environmental Laws except for any such violations as would not reasonably be expected
to have a Material Adverse Effect.

 

    	 	27	 

     

    

 

Section
3.12.5         The Company has provided the Purchaser with true, correct and
complete copies of all material documents, records and information in its possession or control concerning any environmental or
health and safety matter relevant to the Company including documentation, if any, regarding waste disposal, reports, correspondence,
permits related to environmental or health and safety matters issued by any Governmental Authority, and analyses and monitoring
data, if any, for soil, groundwater and surface water and all material third party reports pertaining to any environmental assessments
or audits that were obtained by, or are in the possession or control of, the Company.

 

Section
3.12.6         The representations and warranties in this Section 3.12
are the sole and exclusive representations and warranties of the Company concerning matters arising under Environmental Laws and
any other environmental matters.

 

Section
3.13         Employee Matters.

 

Section
3.13.1         Schedule 3.13.1 contains a list of the following information
for each full-time, part-time or temporary employee, manager, or officer of the Company, including each employee on leave of absence
or layoff status: job title; current employment status; current compensation; start date; age; and fringe benefits (if any). There
are no service providers to the Company who have not but should have been characterized and treated by the Company as employees
of the Company.

 

Section
3.13.2         The Company is not party to any collective bargaining agreement
with respect to its employees and no trade union, employee association or other similar entity has any bargaining rights, acquired
by certification, voluntary recognition or otherwise with respect to any of the employees or former employees of the Company. In
addition, (a) there is no labor union strike, work stoppage, walkout, lockout, or other material labor dispute pending or, to the
Company’s Knowledge, threatened in writing against the Company and since the date of the Latest Balance Sheet there has been
no such dispute, (b) there is no unfair labor practice charge, investigation or claim relating to any employment-related matter
or termination of employment pending against the Company, including any charge or complaint filed by an employee with the Ontario
Labour Relations Board, the Ontario Human Rights Commission, or any comparable Governmental Authority, (c) the Company has properly
characterized retained individuals as either employees or independent contractors for the purposes of Tax and other applicable
laws and the Company has not received any notice from any Governmental Authority disputing such classification, and (d) each employee
has executed an employment agreement pursuant to which such employee has agreed, in the event such employee is terminated for any
reason or for no reason at any time, to accept the statutory minimum notice of termination (or payment in lieu of notice), or severance
payment (if applicable) and benefits continuance (if applicable) required pursuant to the Employment Standards Act, 2000
(Ontario) or any other applicable employment legislation.

 

    	 	28	 

     

    

  

Section
3.13.3         The Business is materially in compliance with all applicable
federal, provincial and local laws in respect of labor and employment matters. All amounts payable to or liabilities in respect
of the employees of the Company for services provided up to the Closing Date shall have been paid or accrued to the Closing Date,
including payment of wages, commissions, bonuses or other compensation, vacation with pay, sick or personal days, benefits under
the Employee Benefit Plans, including premium contributions, remittances and assessments for income tax, employment insurance,
employer health tax, workers’ compensation and any other employment-related legislation.

 

Section
3.14         Employee Benefit Plans.

 

Section
3.14.1         Schedule 3.14.1 lists all Employee Benefit Plans. The
Purchaser has been provided with true, correct and complete copies of all Employee Benefit Plans (or if unwritten, summaries thereof),
together with all material related documentation including (i) where applicable, copies of any trust agreements or other funding
arrangements, custodial agreements, insurance policies and contracts, administration agreements, stop loss arrangements and similar
agreements, and investment management or investment advisory agreements, now in effect or required in the future as a result of
the transactions contemplated by this Agreement or otherwise; (ii) copies of any summary plan descriptions, summaries of material
modifications, summaries of benefits and coverage, employee handbooks and any other material written communications (or a description
of any oral communications) relating to any Employee Benefit Plan; and (iii) copies of material notices, letters or other correspondence
from any Governmental Authority relating to the Employee Benefit Plan.

 

Section
3.14.2         The Company does not sponsor, maintain or contribute to, and
has no obligation to contribute to, any Employee Benefit Plan that is required to be registered as a “registered pension
plan” or a “retirement compensation arrangement” as those terms are defined in subsection 248(1) of the Tax Act,
nor any Employee Benefit Plan with respect to which there are any material unfunded obligations.

 

Section
3.14.3          The Employee Benefit Plans have been established, registered,
administered, invested and communicated in all material respects in accordance with their terms and the requirements of all applicable
laws, rules, regulations, codes, ordinances and orders of all Governmental Authorities. All contributions or premiums required
to be made by the Company with respect to the period prior to and ending on the Closing Date under the terms of each Employee Benefit
Plan have been made or accrued to the Closing Date.

 

Section
3.14.4          None of the Employee Benefit Plans provide benefits beyond retirement
or other termination of service to employees or former employees or to their beneficiaries or dependents.

 

Section
3.14.5          Excluding any agreement, contract, arrangement or plan entered
into by or at the direction of Purchaser on or after the Closing Date (but excluding any documents specifically contemplated hereunder),
the execution of this Agreement and the completion of the transactions contemplated hereby will not (either alone or in conjunction
with any subsequent events) constitute an event under any Employee Benefit Plan or collective bargaining agreement, or under any
employment agreement, offer letter or other agreement relating to employees or employment that, as the case may be, will result
in any payment, acceleration of payment or vesting of benefits, forgiveness of indebtedness, vesting, distribution, increase in
benefits or obligation to fund benefits, or grant or trigger any benefits or obligation, in any such case with respect to any director,
officer or employee or other service provider of the Company.

 

    	 	29	 

     

    

 

Section
3.14.6          No insurance policy or any other agreement affecting any Employee
Benefit Plan requires or permits a retroactive increase in contributions, premiums or other payments due thereunder. The level
of reserves under each Employee Benefit Plan which provides group benefits and contemplates the holding of such reserves is reasonable
and sufficient to provide for all incurred but unreported claims.

 

Section
3.14.7         Other than routine claims for benefits, no Employee Benefit
Plan, neither the Company, nor, to the Knowledge of the Company, any administrator of any Employee Benefit Plan, is subject to
any pending action, investigation, examination, claim (including claims for Taxes or claims for a breach of a fiduciary obligation)
or any other proceeding initiated by any Person, and there exists no state of facts which could reasonably be expected to give
rise to any such action, investigation, examination, claim or other proceeding.

 

Section
3.14.8         Only employees or former employees (or any spouses, domestic
partners, dependents, survivors or beneficiaries of any such employees or former employees) of the Company are entitled to participate
in the Employee Benefit Plans and no entity other than the Company is a participating employer under any Employee Benefit Plan.

 

Section
3.14.9          Section 3.13 and Section 3.14 contain the sole
and exclusive representations and warranties of the Company with respect to any employee benefit or benefit or compensation plan
matters.

 

Section
3.14.10         Without limiting any other provision of this Agreement to the
contrary, no Person shall be a third-party beneficiary or have any rights with respect any provision, or matter described in, Section
3.13 or Section 3.14.

 

Section
3.15          Intellectual Property Rights. The Company
owns all right, title and interest in, free and clear of all Liens (other than Permitted Liens), or have a license or other right
to use, all of the material Intellectual Property Rights necessary for the conduct of the Business as currently conducted (collectively,
the “Company Intellectual Property Rights”). Schedule 3.15 sets forth a list of all patents and patent
applications, trademark registrations and applications, domain names, URLs and copyright registrations and applications owned
by the Company. There is not pending against the Company any Proceeding (other than, for clarity, office actions or other similar
proceedings) by any third party contesting the ownership or use by the Company of any Company Intellectual Property Right, except
as would not be expected to have a Material Adverse Effect. To the Company’s Knowledge, the Company has not infringed or
misappropriated any Intellectual Property Rights of any third party since the date of the Latest Balance Sheet, which such infringement
or misappropriation would have a Material Adverse Effect. This Section 3.15 contains the sole and exclusive representations
and warranties of the Company with respect to any Intellectual Property Right matters.

 

    	 	30	 

     

    

 

Section
3.16         Contracts. Schedule 3.16 sets forth
all material contracts, agreements, leases, permits or licenses (in each case excluding purchase orders in the ordinary course
of business substantially consistent with past practices, insurance policies, Employee Benefit Plans, or any contracts or agreements
with any customer), to which, as of the date of this Agreement, the Company is a party or is otherwise bound, of the type described
below (the “Contracts”):

 

Section
3.16.1          all manufacturing and supply agreements and proposals with customers
of the Company, and other agreements (or group of related agreements with respect to a single transaction or series of related
transactions) that cannot be terminated without cause on less than one hundred and eighty (180) days’ notice (and, in the
aggregate with all such other agreements, without a material monetary penalty) and involve future payments, performance or services
or delivery of goods or materials to or by the Company of any amount or value reasonably expected to exceed $250,000 during any
future twelve (12)-month period;

 

Section
3.16.2          all agreements or commitments for the purchase or lease by the
Company of machinery, equipment or other personal property other than those that are for amounts not to exceed $100,000 annually;

 

Section
3.16.3          all employment agreements pursuant to which an employee or officer
is entitled to receive base annual compensation in excess of $150,000, and all consulting or severance agreements that are likely
to involve consideration in excess of $150,000 during the current fiscal year, in each case, that are not terminable by the Company
without an obligation to pay severance;

 

Section
3.16.4          all license agreements pursuant to which the Company grants
to, or obtains from, any Person the right to use any Company Intellectual Property Rights owned by, or licensed to, the Company
(other than (i) non-exclusive license agreements granted in the ordinary course of business substantially consistent with past
practices, and (ii) off-the shelf and other commercially available software licenses);

 

Section
3.16.5          all agreements that prohibit the Company from, directly or indirectly,
(i) freely engaging in any business, (ii) competing in any line of business, or (iii) formulating, developing, manufacturing, or
selling any product for any person not party to such agreement, including any Contract that requires the Company to work exclusively
with any Person;

 

Section
3.16.6          all Contracts that require the Company to purchase its total
requirements of any product or service from a third party or that contains “take or pay” provisions;

 

Section
3.16.7          all Contracts creating a partnership, limited liability company,
joint venture, strategic alliance, collaboration, co-promotion, profit or revenue sharing, research or development project, or
similar Contract;

 

    	 	31	 

     

    

 

Section
3.16.8         any stockholders, voting, investors rights, registration rights
or similar agreement or arrangement;

 

Section
3.16.9          any contract that grants to the other party or such other party’s
Affiliates “most favored nation” status or that grants to the other party or such other party’s Affiliates any
exclusive right or rights or in which any third party grants the Company any exclusive right or rights;

 

Section
3.16.10         any contract relating to the acquisition or disposition of
any business, stock or assets of any other Person or real property;

 

Section
3.16.11         any contract imposing any restriction or limitation on the
sale or other transfer of the Shares or of any of the assets of the Company;

 

Section
3.16.12         any contract involving the settlement of any legal proceeding
entered into in the past three (3) years or under which the Company has any ongoing liabilities or obligations other than confidentiality;

 

Section
3.16.13         any contract that provides for the assumption of any environmental
liability of any Person; or

 

Section
3.16.14       any contract for the provision of goods or services to any
Governmental Authority.

 

Each Contract set forth on Schedule
3.16 is a valid and binding agreement of the Company enforceable in accordance with its terms (subject to proper authorization
and execution of such Contract by the other party thereto and the applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity). The
Company is not in material breach of or in material default under the terms of any Contract required to be set forth on Schedule
3.16. The Company has not received written notice prior to the date hereof of any default under any Contract required to be
set forth on Schedule 3.16, except for defaults that would not have a Material Adverse Effect. No event or circumstance
has occurred that, with notice or lapse of time or both, would constitute an event of default under any Contract or result in a
termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit
thereunder. Complete and correct copies of each Contract (including all material modifications, amendments and supplements thereto
and material waivers thereunder) have been made available to the Purchaser. For the avoidance of doubt, expiration or termination
of any Contract in accordance with its terms after the date of this Agreement shall not be a breach of this Section 3.16.

 

Section
3.17         Insurance. Schedule 3.17 contains
a list of all material policies of fire, liability, property, casualty owned or held by the Company as of the date of this Agreement
(other than Employee Benefit Plans). All such policies are, as of the date of this Agreement, in full force and effect, all premiums
with respect thereto covering all periods up to and including the Closing will have been paid, and as of the date of this Agreement
no written notice of cancellation or termination has been received by the Company with respect to any such policy.

 

    	 	32	 

     

    

 

Section
3.18         Real Property.

 

Section
3.18.1          Schedule 3.18.1 sets forth the address of all land, together
with all buildings, structures, and improvements located thereon, owned by the Company as of the date hereof (such real property,
the “Owned Real Property”). With respect to each Owned Real Property, as of the date hereof: (A) the Company
has registered and beneficial fee simple title to such Owned Real Property, free and clear of all Liens, except Permitted Liens,
(B) the Company has not leased, licensed or otherwise granted to any Person the right to use or occupy such Owned Real Property
or any portion thereof; (C) other than the right of Purchaser pursuant to this Agreement, there are no outstanding options, rights
of first offer or rights of first refusal to purchase such Owned Real Property or any portion thereof or interest therein; (D)
no written notice has been received by the Company of outstanding work orders, permit violations, or deficiency notices of any
Governmental Authority with respect to the Owned Real Property and to the Knowledge of the Company, no such orders, violations
or deficiency notices are pending or threatened; (E) no part of the Owned Real Property has been condemned, taken or expropriated
by any Governmental Authority, nor has any notice or proceeding in respect thereof been received by the Company; (F) there are
no pending actions, appeals or complaints to seek either a reduction or increase in the value of the Owned Real Property for real
estate tax purposes and there are no appeals, suits, audits, investigations, requests for information or similar proceedings for
real estate taxes now pending or, to the Company’s Knowledge, threatened against the Company with respect to the Owned Real
Property; (G) no written notice has been received by the Company of any boundary or water drainage disputes or any other disputes
with an owner of any property adjacent to the Owned Real Property; (H) to the Knowledge of the Company, all of the plants, buildings,
structures, erections, improvements, appurtenances and fixtures situated on or forming part of the Owned Real Property are in good
operating condition and in a state of good maintenance and repair (reasonable wear and tear excepted), are adequate and suitable
for the purposes for which they are currently being used and the Company has adequate rights of ingress and egress to and from
the Owned Real Property as reasonably required in the ordinary course of business substantially consistent with past practices;
(I) there are no amounts owing by the Company in respect of the supply to or the use by it of water, gas, electrical power or energy,
steam or hot water, or other utilities (except for current accounts, the payment dates of which have not yet passed); (J) none
of the buildings and structures situated on or forming part of the Owned Real Property violate any restrictive covenant or any
applicable law or encroaches on any property owned by others in any material respect and no buildings or structures from neighboring
properties encroach onto any part of the Owned Real Property; (K) the present use of the Owned Real Property is lawful and the
Company has received no notice from any municipal, provincial or other authority having jurisdiction that the Owned Real Property
and its current use does not comply with any applicable law or regulation; and (L) the Permitted Liens affecting the Owned Real
Property are in good standing in all material respects and no notice of material default or purported termination or surrender
has been received or given by the Company in respect of any of the Permitted Liens. There are no existing material defaults under
any of the Permitted Liens and all consents and assumption agreements required for the transfer of the Permitted Liens have been
received or will have been received prior to the Closing Date.

 

    	 	33	 

     

    

 

Section
3.18.2         The Company is not a party to any leases, licenses or other
occupancy agreements of real property (whether as lessee or lessor). The Company has never owned any real property other than the
Owned Real Property and has never leased, licensed or otherwise similarly occupied any real property.

 

Section
3.19         Transaction with Affiliates. None of the Company’s
stockholders, directors or officers nor, to the Company’s Knowledge, any of their respective Affiliates is involved in any
business arrangement or relationship with the Company other than employment arrangements and severance arrangements set forth
on Schedule 3.14.1, and none of the Company’s stockholders, directors or officers nor, to the Company’s Knowledge,
any of their respective Affiliates owns any property or right, tangible or intangible, which is used by the Company.

 

Section
3.20         Title and Condition of Assets; Sufficiency of Assets.

 

Section
3.20.1          The Company has good and marketable title to, a valid leasehold
interest in, or valid rights under a contract to use, all material items of personal property, whether tangible or intangible,
owned by them and used in the Business, and a valid and enforceable right to use all material tangible items of personal property,
leased by or licensed to them and used in the Business (collectively, the “Personal Property”), in each case,
free and clear of all Liens (other than Permitted Liens).

 

Section
3.20.2          All Personal Property necessary for, and material to, the operation
or conduct of the Business as conducted on the date hereof are in reasonably good operating condition and repair, normal wear and
tear excepted and having regard to the age of the equipment and other Personal Property, other than machinery and equipment under
repair or out of service in the ordinary course of business substantially consistent with past practices.

 

Section
3.20.3          The assets, properties and rights owned or leased by the Company
collectively (a) constitute in all material respects all assets, properties and rights which are used in or reasonably necessary
to enable the current operation of the Business and (b) are reasonably sufficient in the aggregate to permit the Company to continue
to conduct the Business as currently conducted in all material respects, in each case based on current customer forecasts and orders
and applicable regulatory requirements as of the date hereof. No Subsidiary or Affiliate of Seller holds any assets that are reasonably
necessary to enable the current operation of the Business.

 

Section
3.21         Customers. Schedule 3.21 lists
each of the Material Customers and the aggregate dollar revenues received by the Company from each such Material Customer for
the twelve months ended May 31, 2018.

 

Section
3.22         Anti-Bribery. Within the past six (6) years,
none of the Seller (with respect to the Company), the Company, or any of their directors, officers, or to the Company’s
Knowledge, any employees, agents or consultants, or any other Person acting for, or on behalf of, the Seller (with respect to
the Company) or the Company, directly or indirectly:

 

    	 	34	 

     

    

 

Section
3.22.1          has violated or is in violation of the Corruption of Foreign
Public Officials Act (Canada), the U.S. Foreign Corrupt Practices Act (the “FCPA”) or any other laws regarding
corruption or illegal payments applicable to the Seller (with respect to the Company) or the Company (collectively with the FCPA,
the “Improper Payment Laws”);

 

Section
3.22.2          has made, undertaken, offered to make, promised to make or authorized
the payment or giving of any bribe, rebate, payoff, influence payment, kickback or other payment, gift or other transfer of money
or anything of value (including meals or entertainment) to (i) any officer, employee or ceremonial office holder of any government,
instrumentality thereof, government-controlled legal entity or supra-national organization (such as the United Nations), (ii) any
political party, (iii) any political candidate, or (iv) any royal family member, that is prohibited under any Improper Payment
Law or otherwise for the purpose of influencing any act or decision of such payee in his or her official capacity, inducing such
payee to do or omit to do any act in violation of his or her lawful duty, securing any improper advantage or inducing such payee
to use his or her influence with a government or instrumentality thereof to affect or influence any act or decision of such government
or instrumentality in violation of his or her lawful duty (any of the foregoing a “Prohibited Payment”);

 

Section
3.22.3          has used funds or other assets, or made any promise or undertaking,
for establishment or maintenance of a secret, unrecorded or improperly recorded fund (a “Prohibited Fund”);
or

 

Section
3.22.4          has made any false or fictitious entries in any books or records
of the Company relating to any Prohibited Payment or Prohibited Fund.

 

Section
3.23         International Trade Matters; Export Control and Import Laws.

 

Section
3.23.1          Each of the Seller (with respect to the Company) and the Company
is in compliance and, within the past six (6) years, has complied, in all material respects with all applicable export control
and trade and economic sanctions laws (“Export Controls”), including, without limitation, the Export Administration
Regulations maintained by the U.S. Department of Commerce, trade and economic sanctions maintained by the Treasury Department’s
Office of Foreign Assets Control (“OFAC”), and International Traffic in Arms Regulations (the “ITAR”)
maintained by the Department of State and any applicable anti-boycott compliance regulations.

 

Section
3.23.2          None of (i) the Seller; (ii) the Company, or (iii), to the Knowledge
of the Company, any director, officer, employee, agent or consultant of, or any other Person acting for, or on behalf of, the Company
is a Prohibited Person. “Prohibited Person” shall mean (A) a Person who is on the List of Specially Designated
Nationals and Blocked Persons or any other list of sanctioned persons administered by OFAC; (B) any other similar list of sanctioned
persons administered by a Governmental Entity in any other jurisdiction; (C) where relevant under applicable Export Controls, any
legal entity that is 50%-or-more owned or controlled by one or more Persons identified in the foregoing clauses (A) or (B); or
(D) a segment of the government of Crimea, Cuba, Iran, North Korea or Syria or any resident thereof.

 

    	 	35	 

     

    

 

Section
3.23.3         The Company is not conducting and has not within the past six
(6) years conducted business, directly or indirectly, with any Prohibited Person, where such business would be prohibited under
applicable Export Controls. The Company is not conducting and has not since July 7, 2015 conducted business, directly or indirectly,
in, with or involving, Crimea, Cuba, Iran, North Korea or Syria.

 

Section
3.23.4         No good, service, software or technical information that the
Company sells, exports, possesses or works with is subject to ITAR control. The Company is not engaging, and has not within the
past six (6) years engaged, in activities that are subject to the ITAR.

 

Section
3.24        Indebtedness. Schedule 3.24(a) sets
forth any indebtedness for borrowed money, including indebtedness under any bank credit agreement and any other related agreements
but, for the avoidance of doubt, excluding capital leases. Schedule 3.24(a) sets forth a description of each item of indebtedness
of the Company (whether incurred pursuant to a written or oral agreement) outstanding as of the date of this Agreement, including
(i) the name of each lender or creditor with respect to any indebtedness, (ii) the aggregate amount that the Company owes to such
lender or creditor as of the date of this Agreement, and (iii) whether such indebtedness is secured by any Lien on any property
or asset of the Company. Schedule 3.24(b) sets forth a description of each loan or advance made by the Company to a third-party
(whether pursuant to a written or oral agreement), including (i) the name of the third party, (ii) the aggregate amount loaned
or advanced by the Company to such third party as of the date of this Agreement, and (iii) whether such loan or advance is secured
by any Lien on any property or asset of such third party.

 

Section
3.25         Privacy and Data Security.

 

Section
3.25.2          The Company is not, and during the two (2) years prior to the
Closing Date, has not been, the subject of an administrative proceeding a Governmental Authority relating to compliance with Privacy
Laws, nor is any such administrative proceeding pending or, to the Company’s Knowledge, threatened. There are no pending
written claims for indemnification received by the Company from any third party for actions arising from unauthorized use, disclosure,
or access to customers’ Personal Information.

 

Section
3.25.3          The Company is in compliance with all Data Security Requirements,
except where noncompliance would not, individually or in the aggregate, reasonably be expected to be material and adverse to the
Company. As of the date of this Agreement, no written claims have been received by, and to the Company’s Knowledge, no claims,
charges or complaints have been made against, the Company alleging a violation of any Data Security Requirements, and, to the Company’s
Knowledge, the Company has not been subject to any proceeding with regard to any Data Security Requirements relating to the Business.

 

    	 	36	 

     

    

 

Section
3.26         Information Technology. The computers and other
information technology infrastructure and assets used by the Company (collectively, the “IT Assets”) operate
and perform as is necessary to conduct the Business in the manner in which it is currently being conducted, and are sufficient
for the current and anticipated future needs of the Business. The Company has taken or caused to be taken all reasonable precautions
to ensure that all IT Assets (i) are free from any material defect, bug, virus or programming, design or documentation error
or corruption, and (ii) are reasonably functional and operate and run in a reasonably efficient business manner.

 

Section
3.27         Regulatory Matters.

 

Section
3.27.1         In the last two (2) years, the Company has not received any
Form FDA-483, notice of adverse finding, FDA or Health Canada warning letters, notice of violation or “untitled letters,”
notice of FDA, Health Canada or Canada Border Service Agency action for import detentions or refusals, or any other written correspondence
from the FDA, Health Canada or other Governmental Authority alleging or asserting material noncompliance with any applicable laws,
rules, regulations codes, ordinances and orders of Governmental Authorities. The Company is not subject to any obligation arising
under an administrative or regulatory action, inspection, warning letter, notice of violation letter, or other notice, response
or commitment made to or with the FDA or Health Canada with respect to a violation or FDA action, and to the knowledge of the Company,
no such proceedings have been threatened.

 

Section
3.27.2         The Company has obtained all material permits of the FDA and
Health Canada, or any other applicable Governmental Authority necessary to conduct its business as presently conducted (collectively,
the “Regulatory Licenses”), such Regulatory License are set out on Schedule 3.9, and all of such Regulatory
Licenses are in full force and effect. There has not occurred any revocation, termination, withdrawal or suspension of any Regulatory
License, and no proceeding is pending or, to the Knowledge of the Company, threatened to revoke, terminate, withdraw, suspend or
adversely modify any such Regulatory License. To the Knowledge of the Company, the Company has, since January 1, 2015, operated
the Business in a manner that would not reasonably be expected to result in withdrawal of approval of any Regulatory License.

 

Section
3.27.3         The Company is, and, to the Knowledge of the Company, has been
since January 1, 2015, in material compliance with all provisions of (i) the FDC Act and the implementing regulations promulgated
by the FDA that are applicable to the Company and the Business carried on by it, including (A) the manufacture of the Products
in compliance in all material respects with the FDC Act and Current Good Manufacturing Practices; and (B) the recordkeeping and
reporting requirements applicable to it; and (ii) the Controlled Substances Act and the implementing regulations promulgated by
the Drug Enforcement Administration applicable to it, including, to the extent applicable to the Company, requirements regarding
the ordering, receipt, labeling, packaging, storage, security, recordkeeping, reporting, manufacture, sale and distribution of
Controlled Substances and Listed Chemicals.

 

    	 	37	 

     

    

 

Section
3.27.4          No action is pending or threatened to be taken by the FDA or
Health Canada against the Company with regard to the integrity of data submitted by the Company to its customers in support of
any Product approval sought by such customers.

 

Section
3.28        Government Contracts. During the past
three (3) years, neither the Company nor, to the Company’s Knowledge, any director, officer, or employee has been suspended
or debarred from bidding on Contracts with any Governmental Authorities; no such suspension or debarment has been initiated or,
to the Company’s Knowledge, threatened; and the consummation of the transactions contemplated by this Agreement will not
result in any such suspension or debarment of the Company (assuming that no such suspension or debarment will result solely from
the identity of Purchaser). To the Company’s Knowledge, the Company has not been and is not now being audited or investigated
in relation to the Business by the United States Government Accountability Office, the United States Department of Defense or
any of its agencies, the Defense Contract Audit Agency, the contracting or auditing function of any Governmental Authority with
which it is contracting, the United States Department of Justice, the Inspector General of the United States Governmental Body
or any other Governmental Authority; nor, to the Company’s Knowledge, has any such audit or investigation been threatened.
Schedule 3.28 contains as of the date of this Agreement a complete list of each Contract with a Governmental Authority
that is still in effect, identifying the (i) contracting agency, (ii) contract type and contract number, (iii) name and address,
and contact information of contracting office and/or contracting officer, (iv) total dollar value of Contract, and (v) approximate
remaining balance.

 

Section
3.29         Inventory. All of the finished Products manufactured
and intended for commercial use by the Company have been manufactured, labelled, packaged and tested by the Company, as applicable,
in accordance with the applicable specifications provided by the applicable customers, GMPs and other applicable regulatory requirements.

 

Section
3.30         Brokers. Except for the Financial Advisor and
the Sponsors, no Person is or will be entitled to a broker’s, finder’s, investment banker’s, financial advisor’s
or similar fee from the Company in connection with this Agreement or any of the transactions contemplated hereby.

 

Section
3.31         Books and Records.

 

Section
3.31.1       The minute books and other similar records of the Company as
made available to Purchaser prior to the date hereof contain a true, correct and complete record, in all material respects, of
all action taken at all meetings and by all written consents in lieu of meetings of the board of directors and committees of the
board of directors of the Company. The stock transfer ledgers and other similar records of the Company as made available to Purchaser
prior to the date hereof accurately reflect all record transfers prior to the execution of this Agreement in the Shares.

 

Section
3.31.2       No books and records of the Company are recorded, stored, maintained,
operated or otherwise wholly or partly dependent upon or held by any means (including any electronic, mechanical or photographic
process, whether computerized or not) which (including all means of access thereto and therefrom) are not under the exclusive ownership
and direct control of the Company. At Closing, all of the books and records of the Company will be in the possession or control
of the Company.

 

    	 	38	 

     

    

 

Section
3.32         NO ADDITIONAL REPRESENTATIONS. EXCEPT AS OTHERWISE
EXPRESSLY SET FORTH IN Article III, THE COMPANY DOES NOT MAKE AND
HAS NOT MADE ANY REPRESENTATION OR WARRANTY IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE COMPANY
EXPRESSLY DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, NOTWITHSTANDING THE DELIVERY
OR DISCLOSURE TO PURCHASER, ITS AFFILIATES OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES OF ANY
DOCUMENTATION OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), INCLUDING AS TO THE CONDITION,
VALUE OR QUALITY OF THE BUSINESS OR ITS ASSETS, THE COMPANY SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY,
USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO ITS ASSETS OR BUSINESS, ANY PART THEREOF, THE WORKMANSHIP
THEREOF, AND THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT, IT BEING UNDERSTOOD THAT SUCH SUBJECT ASSETS AND BUSINESS
ARE BEING ACQUIRED “AS IS, WHERE IS” ON THE CLOSING DATE, AND IN THEIR PRESENT CONDITION, AND PURCHASER AND ITS AFFILIATES
SHALL RELY SOLELY ON THEIR OWN EXAMINATION AND INVESTIGATION THEREOF.

 

Article
IV—REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller hereby represents
and warrants to Purchaser that except as set forth on the disclosure schedule attached hereto, which exceptions or disclosures
shall be deemed to be part of the representations and warranties made hereunder, that the following are true and correct as of
the date of this Agreement (except to the extent expressly relating to a specific date, in which event such representation or warranty
shall be made as of such date):

 

Section
4.1           Shares. Seller owns of record and
beneficially the Shares. Such Shares are, and when delivered by Seller to Purchaser pursuant to this Agreement will be, free and
clear of any and all Liens.

 

Section
4.2           Authority. Seller has the authority
under its Governing Documents to execute and deliver this Agreement and each other Document to which it is a party and to perform
its obligations hereunder and thereunder. Seller has duly executed and delivered this Agreement and each other Document to which
it is a party. Each of the Documents to which Seller is or will be a party is, or upon its execution and delivery will be (assuming
that this Agreement and the other Documents have been duly authorized, executed and delivered by the other parties thereto), a
valid and binding agreement of Seller, enforceable against Seller in accordance with its terms, except as the enforceability may
be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally or (ii) applicable equitable principles (whether considered in a proceeding at law or
in equity).

 

    	 	39	 

     

    

 

Section
4.3           Non-Contravention. Neither the execution
and delivery of this Agreement or the other Documents to which it is a party nor the performance by Seller of its obligations
hereunder and thereunder will (i) contravene any provision contained in Seller’s Governing Documents or (ii) conflict
with, violate or result in a breach (with or without the lapse of time, the giving of notice or both) of, or constitute a default
(with or without the lapse of time, the giving of notice or both) under (A) any contract, agreement, commitment, indenture,
mortgage, lease, pledge, note, bond, license, permit or other instrument or obligation or (B) any judgment, order, decree,
statute, law, rule or regulation or other restriction of any Governmental Authority, in each case to which Seller is a party or
by which it is bound or to which its assets or properties are subject, except, in each case, as would not have a material adverse
effect on the ability of Seller to perform its obligations under this Agreement.

 

Section
4.4           Seller Consents. No notice to, filing
with, or authorization, registration, consent or approval of any Governmental Authority or other Person is necessary for the execution,
delivery or performance of this Agreement or the other Documents to which such Seller is a party or the consummation of the transactions
contemplated hereby or thereby by such Seller, except for (i) notices, filings and approvals set forth on Schedule 4.4,
(ii) those the failure of which to obtain or make would not have a Material Adverse Effect, and (iii) those that may be required
solely by reason of Purchaser’s (as opposed to any other third party’s) participation in the transactions contemplated
hereby and by the other Documents.

 

Section
4.5           NO ADDITIONAL REPRESENTATIONS. EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH IN Article IV, SELLER DOES NOT MAKE
AND HAS NOT MADE ANY REPRESENTATION OR WARRANTY IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. SELLER
EXPRESSLY DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, NOTWITHSTANDING THE DELIVERY
OR DISCLOSURE TO PURCHASER, ITS AFFILIATES OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES OF ANY
DOCUMENTATION OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), INCLUDING AS TO THE CONDITION,
VALUE OR QUALITY OF SELLER’S ASSETS, AND SELLER SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY,
USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO ITS ASSETS, ANY PART THEREOF, THE WORKMANSHIP THEREOF,
AND THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT, IT BEING UNDERSTOOD THAT SUCH SUBJECT ASSETS ARE BEING ACQUIRED
“AS IS, WHERE IS” ON THE CLOSING DATE, AND IN THEIR PRESENT CONDITION, AND PURCHASER AND ITS AFFILIATES SHALL RELY
SOLELY ON THEIR OWN EXAMINATION AND INVESTIGATION THEREOF.

 

    	 	40	 

     

    

 

Article
V—REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser hereby represents
and warrants to Seller:

 

Section
5.1           Organization. Purchaser is a company
duly organized, validly existing and in good standing under the laws of its jurisdiction of Nova Scotia and has all requisite
corporate power and authority to own, lease and operate its property and assets and to carry on its business as presently conducted.
Purchaser is duly qualified or licensed to do business in each jurisdiction where the actions required to be performed by it hereunder
make such qualification or licensing necessary, except in those jurisdictions where failure to be so licensed or qualified would
not result in a material adverse effect on Purchaser’s ability to perform its obligations hereunder. Purchaser has delivered
to the Company true and complete copies of its Governing Documents, as currently in effect.

 

Section
5.2          Authorization. Purchaser has the
requisite power and authority to execute and deliver this Agreement and each other Document to which it is a party and to perform
its obligations hereunder and thereunder, all of which have been duly and validly authorized by all requisite corporate action.
This Agreement and each other Document to which Purchaser is a party have been duly authorized, executed and delivered by Purchaser
and constitute a valid and binding agreement of Purchaser, enforceable against Purchaser in accordance with its terms except as
the enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
the enforcement of creditors’ rights generally or (ii) applicable equitable principles (whether considered in a proceeding
at law or in equity).

 

Section
5.3           Non-contravention. The execution,
delivery and performance by Purchaser of this Agreement and the other Documents to which it is a party and each of the other transactions
contemplated hereby and thereby will not (i) contravene any provision contained in Purchaser’s Governing Documents,
(ii) conflict with, violate or result in a material breach (with or without the lapse of time, the giving of notice or both) of
or constitute a material default (with or without the lapse of time, the giving of notice or both) under (A) any contract, agreement,
commitment, indenture, mortgage, lease, pledge, note, bond, license, permit or other instrument or obligation or (B) any judgment,
order, decree, statute, law, rule or regulation or other restriction of any Governmental Authority, in each case to which Purchaser
is a party or by which it is bound or to which any of its assets or properties are subject, (iii) result in the acceleration of,
or permit any Person to terminate, modify, cancel, accelerate or declare due and payable prior to its stated maturity any material
obligation of such entity or (iv) require any authorization, consent, approval, exemption or other action by or declaration or
notice to any Person or Governmental Authority (except for the applicable requirements of any applicable foreign antitrust laws
or regulations).

 

Section
5.4           Consents. No notice to, filing with,
or authorization, registration, consent or approval of any Governmental Authority or other Person is necessary for the execution,
delivery or performance of this Agreement and the other Documents or the consummation of the transactions contemplated hereby
or thereby by Purchaser.

 

    	 	41	 

     

    

 

Section
5.5          Litigation. Purchaser is not party
to any pending or, to Purchaser’s Knowledge, threatened litigation which would reasonably be expected to question the validity
of, affect or prohibit the consummation of the transactions contemplated hereby.

 

Section
5.6           Brokers. No Person is or will be
entitled to broker’s, finder’s, investment banker’s, financial adviser’s or similar fees from Purchaser
in connection with this Agreement or any of the transactions contemplated hereby.

 

Section
5.7           R&W Insurance Policy. Purchaser
has obtained the R&W Insurance Policy bound and effective as of the date hereof. Purchaser has provided Seller with a true,
correct and complete copy of the final form of the R&W Insurance Policy and with a binder reflecting placement and effectiveness
of the R&W Insurance Policy as of Closing.

 

Section
5.8           Acknowledgement by Purchaser. Purchaser
acknowledges and agrees that it has conducted its own independent review and analysis of, and, based thereon, has formed an independent
judgment concerning, the Business, assets, condition, operations and prospects of the Company, and Purchaser has been furnished
with or given full access to such information about the Company and the Business and operations as it has requested. In entering
into this Agreement, Purchaser has relied solely upon its own investigation and analysis and the representations and warranties
of the Company and Seller expressly set forth in this Agreement, and Purchaser:

 

Section
5.8.1            acknowledges that, other than as set forth in Article
III and Article IV of this Agreement, none of Seller, the Company, or any of their respective directors, officers,
employees, Affiliates, stockholders, members, owners, agents, advisors or representatives makes or has made any
representation or warranty, either express or implied, (i) as to the accuracy or completeness of any of the information
provided or made available to Purchaser or its agents, advisors, representatives, lenders or Affiliates prior to the
execution of this Agreement, and (ii) with respect to any projections, forecasts, estimates, plans or budgets of future
revenues, expenses or expenditures, future results of operations (or any component thereof), future cash flows (or any
component thereof) or future financial condition (or any component thereof) of the Company heretofore or hereafter delivered
to or made available to Purchaser or its agents, advisors, representatives, lenders or Affiliates;

 

Section
5.8.2            acknowledges and agrees that, other than as expressly
set forth in Article III and Article IV of this Agreement, no projections, forecasts and predictions, other estimates,
data, financial information, documents, reports, statements (oral or written), summaries, abstracts, descriptions, presentations
(including any management presentation or facility tour), memoranda, or offering materials with respect to the Company’s
business, is or shall be deemed to be a representation or warranty by Seller or any other Person, under this Agreement, or otherwise,
and that Purchaser has not relied thereon in determining to execute this Agreement and proceed with the transactions contemplate
hereby;

 

Section
5.8.3           acknowledges that the Shares have not been registered
under applicable securities laws; and

 

    	 	42	 

     

    

 

Section
5.8.4           represents and warrants that (i) the Shares
shall be acquired for Purchaser’s own account and not with a view to, or intention of, distribution thereof in violation
of the Securities Act, or any applicable state or other securities laws, and the Shares shall not be disposed of in contravention
of the Securities Act or any applicable state securities laws, (ii) Purchaser’s knowledge and experience in financial
and business matters are such that it is capable of evaluating the merits and risks of the investment in the Company, (iii) Purchaser
is an “accredited investor” as such term is defined in Rule 501 of Regulation D under the Securities Act, (iv) it has
sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of
their investment in the Shares, (v) it is capable of bearing the economic risks of such investment, including a complete loss of
its investment in the Shares and (vi) it understands and agrees that it may not sell or dispose of any of the Shares other than
pursuant to a registered offering or in a transaction exempt from the registration requirements of applicable securities laws and
regulations.

 

Article
VI—COVENANTS AND AGREEMENTS

 

Section
6.1           Confidentiality; Reservation of Documents.

 

Section
6.1.1            For a period of two (2) years following the Closing,
and subject to Section 6.5.2, Seller shall treat and hold as strictly confidential any data or information related to the
Company, or to Purchaser or Parent or their direct or indirect shareholders, including information and documents disclosed to Seller
(or its respective Affiliates or representatives), whether before or after the date hereof, pursuant to this Agreement or in connection
with the transactions contemplated by, or the discussions and negotiations preceding, this Agreement, and Seller will not use any
such data or information except in connection with this Agreement, provided, that Seller shall not be bound by the confidentiality
requirements of this Section 6.1.1 with respect to data or information and documents which (i) are or become generally available
to the public other than as a result of a disclosure by Seller after the Closing Date in breach of its obligations hereunder, (ii) relate
to Purchaser or any of its Affiliates and were within Seller’s possession or control prior to its being furnished to Seller
by or on behalf of the Company or Purchaser pursuant hereto, provided that the source of such information was not actually
known by Seller, after reasonable inquiry, to be bound by a contractual, legal or fiduciary obligation of confidentiality to Seller,
the Company or Purchaser with respect to such information, (iii) are provided to or become available to Seller from a source
other than the Company or Purchaser, provided that such source is not actually known by Seller, after reasonable inquiry,
to be bound by a contractual, legal or fiduciary obligation of confidentiality to the Company or Purchaser with respect to such
information, (iv) is or was independently developed or on behalf of by Seller or any of its Affiliates without violating its obligations
hereunder, (v) in connection with the enforcement of this Agreement and any dispute relating to or in connection with the transactions
contemplated by this Agreement, including under this Agreement or (vi) are requested or required to be disclosed by applicable
law, regulation or stock exchange rule (including any Proceeding, arbitration, civil investigative demand, subpoena, or other similar
process reasonably believed to create a disclosure requirement).

 

    	 	43	 

     

    

 

Section
6.1.2            After the Closing, Purchaser shall, and shall cause
the Company to, until the seventh (7th) anniversary of the Closing Date, retain all books and records of the Company
in existence on the Closing Date and make the same available for inspection and copying by Seller or any representative of Seller
at the expense of Seller during normal business hours of the Company upon reasonable request and upon reasonable notice.

 

Section
6.2          Personal Information. Purchaser
covenants that it will (i) use and disclose the Personal Information transferred to it under the terms of this Agreement solely
for the purposes for which that Personal Information was collected or permitted to be used or disclosed before the transaction
was completed and in accordance with applicable Privacy Laws; and (ii) neither use nor disclose any of that Personal Information
for any purpose for which its use and disclosure was not permitted before the Closing. The obligations imposed by this Section
6.2 will be perpetual.

 

Section
6.3           No Modification of R&W Insurance Policy.
Purchaser has bound the R&W Insurance Policy at or prior to the Closing on terms and in the form provided or made available
to Seller prior to the date hereof, which such policy, for the avoidance of doubt, includes terms to the effect that the insurers
under the R&W Insurance Policy (a) waives, and agrees not to pursue, directly or indirectly, any subrogation rights against
Seller with respect to any claim made by any insured thereunder (except in the case of knowing and intentional fraud of Seller)
and (b) agrees that the Purchaser Indemnitees shall have no obligation to pursue any claim against Seller in connection with any
Loss. Purchaser shall not, and shall cause its Affiliates and the insureds under the R&W Insurance Policy to not: (a) amend,
supplement, modify or otherwise change, terminate or waive any provision of the R&W Insurance Policy with respect to the waiver
of subrogation set forth therein without the prior written consent of Seller, or (b) grant any waiver or consent under the R&W
Insurance Policy, in each case in a manner that would be inconsistent with the foregoing clause (a) or that otherwise would be
adverse to the interests of Seller or its partners, managers, Affiliates, employees and personnel.

 

Section
6.4           Reasonable Efforts; Further Assurances.
Subject to the terms and conditions herein provided, each of the parties hereto shall use reasonable best efforts to take, or
cause to be taken, all action, and to do, or cause to be done, all things reasonably necessary, proper or advisable under applicable
laws and regulations to consummate and make effective the transactions contemplated by this Agreement and each of the Company
and Purchaser will use reasonable best efforts to obtain consents or approvals of all Governmental Authorities and third parties
necessary to the consummation of the transactions contemplated by this Agreement. All costs incurred in connection with obtaining
any such consents or approvals prior to the Closing shall be borne fifty percent (50%) by Seller and fifty percent (50%) by Purchaser.
In addition, the Seller agrees to provide or cause the Company to provide any reasonable officer’s certificate reasonably
required by the Purchaser’s title insurer to obtain a title insurance policy or amendment to a title insurance policy with
respect to the Owned Real Property provided that such officer’s certificate shall be made without personal liability on
the part of the officer signing such certificate.

 

    	 	44	 

     

    

 

Section
6.5           Public Announcements.

 

Section
6.5.1           No press release or public announcement related to
this Agreement, the documents, certificates and instruments delivered in connection with this Agreement or the transactions contemplated
hereby or thereby, shall be issued or made by any party hereto (nor will any party permit any of its advisors or Affiliates to
do any thereof) without the prior written approval of Seller and Purchaser; provided that the foregoing restriction shall
not apply to press releases or public announcements (a) which, in the reasonable opinion of counsel, are required by applicable
law or self-regulatory organization such as a stock exchange, in which case Seller and Purchaser shall be afforded a reasonable
opportunity to review and comment on such press release, announcement or communication prior to its issuance, distribution or publication,
(b) disclosure which is necessary in connection with the enforcement of any right or remedy relating to this Agreement, the
documents, certificates and instruments delivered in connection with this Agreement or the transactions contemplated hereby or
thereby, or (c) customary disclosures by any party hereto or any Affiliate thereof which is a private equity or other investment
fund to its investors or potential investors who are subject to customary confidentiality restrictions. Notwithstanding anything
to the contrary herein, promptly following the execution of this Agreement, Purchaser and Parent, as the case may be, shall be
permitted to issue a press release and make related disclosures in filings by Parent with the United States Securities Exchange
Commission announcing the transactions contemplated by the Documents; provided that, prior to such disclosure, Purchaser or Parent,
as the case may be, shall provide Seller with a copy of, and a reasonable opportunity to review and comment on, such disclosure
and after such announcement Seller and its Affiliates shall be permitted to make public announcements which are consistent with,
and contain no information in addition to, such prior disclosures; provided that, prior to such disclosure, Seller shall provide
Parent with a copy of, and a reasonable opportunity to review and comment on, such disclosure.

 

Section
6.5.2            Notwithstanding anything contained herein to
the contrary, the parties hereto acknowledge and agree that each of the Sponsors and their respective Affiliates (except for
the Company) and representatives may provide general information about the subject matter of this Agreement and the Company
(including its and their performance and improvements) in connection with each Sponsor or its respective Affiliates’
fund raising, marketing, informational or reporting activities. Notwithstanding anything contained herein to the contrary, in
no event will Purchaser or, after the Closing, the Company or its Affiliates have any right to use either Sponsor’s or
its respective Affiliates’ names or marks, or any abbreviation, variation or derivative thereof, in any press release,
public announcement or other public document or communication without the express written consent of such Sponsor or its
respective Affiliates, as applicable. Following the Closing, each Sponsor and its respective Affiliates may use and reference
the name of the Company and the associated marks and logos for the purpose of describing the current and historical
relationship of the Company with such Sponsor and its respective Affiliates (including on their respective web sites). Each
Sponsor is express third party beneficiaries of this Section 6.5.2.

 

    	 	45	 

     

    

 

Section
6.5.3            For the avoidance of doubt, disclosures resulting
from the parties’ efforts to obtain any consent, waiver, approval and/or early termination under any applicable Governmental
Authority and to make any related filing shall be deemed to not violate this Agreement.

 

Section
6.6           Indemnification of Directors and Officers.
The Governing Documents of the Company shall contain provisions no less favorable with respect to the limitation or elimination
of liability and indemnification than are set forth in the Governing Documents of the Company as of the date of this Agreement,
which provisions shall not be amended, repealed or otherwise modified for a period of six (6) years after the Closing in any manner
that would adversely affect the rights thereunder of individuals who at or prior to the Closing were directors, officers, agents
or employees of the Company or who were otherwise entitled to indemnification pursuant to the Governing Documents of the Company.
Seller has caused the Company to purchase and maintain in effect a directors’ and officers’ liability insurance tail
policy (the “Tail Policy”) to be effective for six (6) years from the Closing Date with respect to matters
existing or occurring at or prior to the Closing Date (including transactions contemplated by this Agreement). The provisions
of this Section 6.6 are (i) intended to be for the benefit of, and shall be enforceable by, each Person entitled to indemnification
under this Section 6.6, and each such Person’s heirs, legatees, representatives, successors and assigns, it being
expressly agreed that such Persons shall be third-party beneficiaries of this Section 6.6 and (ii) in addition to, and
not in substitution for, any other rights to indemnification that any such Person may have by contact or otherwise. This Section
6.6 shall survive the consummation of the Closing and shall be binding on all successors and assigns of Purchaser and the
Company.

 

Section
6.7           Transfer Taxes. All transfer, documentary,
sales, use, stamp, registration and other such Taxes, and all conveyance fees, recording charges and other fees and charges (including
any penalties and interest) incurred in connection with consummation of the transactions contemplated by this Agreement shall
be paid by Purchaser; provided that any Taxes incurred in connection with the transfer of the Shares shall be borne fifty
percent (50%) by Seller and fifty percent (50%) by Purchaser.

 

Section
6.8           Tax Matters.

 

Section
6.8.1            Taxes (other than Transfer Taxes) with respect to
any Straddle Period will be allocated to the portion of the period ending on the Closing Date using the following conventions:
(A) in the case of income Taxes (however denominated), sales and use Taxes, withholding Taxes and value added Taxes, the amount
of Taxes allocated to the portion of the Straddle Period ending on the Closing Date shall be the amount of Taxes payable for such
portion of the period determined utilizing the “closing of books” methodology; and (B) in the case of all other Taxes,
the amount of Taxes allocated to the portion of the Straddle Period ending on the Closing Date shall equal to the amount of Taxes
for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of calendar days in the portion of
the Straddle Period ending on the Closing Date and the denominator of which is the number of calendar days in the entire Straddle
Period.

 

    	 	46	 

     

    

 

Section
6.8.2             Seller shall be entitled to receive (as additional
Purchase Price) an amount equal to any Tax refunds, including interest paid by an applicable Tax authority therewith, that are
received by the Company during the twelve (12) month period following the Closing Date, in respect of Taxes paid by the Company
with respect to any period ending on or prior to the Closing Date, or the portion ending on the Closing Date of any period that
begins before and ends after the Closing Date (each, a “Pre-Closing Tax Period”). Purchaser shall forward to
or reimburse Seller for any such amounts within ten (10) days after receipt thereof.

 

Section
6.8.3            Unless otherwise required by law, neither Purchaser
nor any of its Affiliates shall file, amend, refile, revoke or otherwise modify any Tax Return or Tax election of the Company with
respect to a Pre-Closing Tax Period (including a Code Section 338 election with respect to the sale) without the prior written
consent of Seller, which consent shall not be unreasonably withheld, conditioned or delayed.

 

Section
6.8.4            Purchaser and Seller shall cooperate fully, and after
the Closing, Purchaser shall cause the Company to cooperate fully, as and to the extent reasonably requested by the other party,
in connection with the preparation and filing of Tax Returns and any audit or other Tax Contest. Such cooperation shall include
access to, the retention and (upon the other party’s request) the provision of records and information that are reasonably
relevant to any such Tax Return or Tax Contest, and the making available of employees on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder.

 

Section
6.8.5           Purchaser acknowledges and agrees that its sole remedy
for claims for indemnification in respect of Taxes will be pursuant to the indemnification provisions set forth in Article VII.

 

Section
6.9           Seller Release.

 

Effective as of the
Closing, Seller knowingly and voluntarily releases and forever discharges the Company from any and all claims, controversies, causes
of action, cross-claims, counter-claims, damages, claims for costs and attorneys’ fees, or liabilities, in law and in equity
and whether known or unknown, suspected, or claimed against the Company that Seller may have, relating to its ownership of the
Shares; provided, however, that no release is given hereunder in respect of any obligations required to be performed by
the Company under the terms of this Agreement.

 

Section
6.10         Use of Name.

 

As promptly as practicable
following the Closing Date (and in any event within thirty (30) days following the Closing Date), Seller shall, and shall cause
its Affiliates to, cease to make any use of the name “Wellspring” and the service marks, trademarks, trade names, identifying
symbols, logos, emblems, signs or insignia related thereto or containing or comprising of the foregoing, including any name or
mark confusingly similar thereto (the “Company Marks”). Immediately after the Closing, Seller shall, and shall
cause its Affiliates to, cease to hold itself out as having any affiliation with the Company or any of its Affiliates. In furtherance
thereof, as promptly as practicable but in no event later than the expiration of the relevant period provided above for transitional
use of the Company Marks, Seller shall, and shall cause its Affiliates to, remove, strike over or otherwise obliterate all Company
Marks from any websites, social media pages, vehicles, storage tanks, business cards, schedules, stationery, packaging materials,
displays, signs, promotional materials, manuals, forms, computer software and other property and materials of Seller or its Affiliates.
For the avoidance of doubt, nothing in this Section 6.10 shall affect the rights of the Sponsors pursuant to Section 6.5.2.

 

    	 	47	 

     

    

 

Article
VII—SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

 

Section
7.1           Survival of Representations and Warranties.
The representations and warranties of Seller, the Company and Purchaser contained in this Agreement (whether or not contained
in Article III, Article IV or Article V) shall survive the Closing for a period of twelve (12) months after
the Closing Date, other than in the case of fraud on the part of the party making such representation or warranty (in such case,
surviving in accordance with the applicable statute of limitations). All covenants set forth herein shall survive the Closing
in accordance with their respective terms.

 

Section
7.2           General Indemnification.

 

Section
7.2.1            If, after the Closing Date, Purchaser and/or its
officers, directors, employees, partners, managers, Affiliates (which, upon and after the Closing, shall include the Company) and/or
agents (each a “Purchaser Indemnitee” and together the “Purchaser Indemnitees”) suffer, without
any duplication, any Losses as a result of, in connection with, or arising out of (a) any breach of any representation or warranty
made by Seller or the Company contained in Article III or Article IV, (b) any failure by Seller to perform any of
its covenants or agreements contained herein which are to be performed by Seller after the Closing, (c) any claim pursuant to Section
6.6 which directly results from breach of any representation or warranty made by the Company contained in Article III,
or (d) any claim made prior to the 12-month anniversary of the Closing with respect to the matters described on Schedule 7.2.1(d),
then, subject to the other provisions of this Article VII, Seller agrees to indemnify, defend and hold harmless Purchaser
Indemnitees against such Losses.

 

Section
7.2.2            If, after the Closing Date, Seller and its officers,
directors, employees, partners, managers, Affiliates and/or agents (each a “Seller Indemnitee” and together
the “Seller Indemnitees”) suffer, without duplication, any Losses as a result of, in connection with, or
arising out of (a) any breach of any representation or warranty made by Purchaser in Article V, (b) any failure by Purchaser
to perform any of its covenants or agreements contained herein, and (c) any breach by the Company of any of its covenants or agreements
contained herein which are to be performed by the Company after the Closing, then, subject to the other provisions of this Article
VII, Purchaser agrees to indemnify, defend and hold harmless Seller Indemnitees against such Losses.

 

Section
7.2.3            The obligations to reimburse, indemnify and hold
harmless pursuant to Section 7.2.1 and pursuant to Section 7.2.2 shall survive the consummation of the transactions
contemplated hereby for the period set forth in Section 7.1, except for claims for indemnification pursuant to such clauses
asserted in writing prior to the end of such period which claims shall survive until final resolution thereof.

 

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Section
7.2.4            All indemnification payments made pursuant to this
Article VII shall be treated as adjustments to the Purchase Price for Tax purposes unless otherwise required by a change
in law occurring after the date hereof, a closing agreement with an applicable taxing authority or a final non-appealable judgment
of a court of competent jurisdiction.

 

Section
7.3           Third Party Claims.

 

Section
7.3.1            If a claim, action, suit or other proceeding by
a third party (a “Third Party Claim”) is made against any Person entitled to indemnification or reimbursement
pursuant to Section 7.2 (an “Indemnified Party”), and if such Indemnified Party intends to seek indemnity
or reimbursement with respect thereto under this Article VII, such Indemnified Party shall promptly provide written notice
to the party obligated to indemnify such Indemnified Party (such notified party, the “Responsible Party”) of
such claims; provided, that the failure to so notify shall not relieve the Responsible Party of its obligations hereunder,
except to the extent that the Responsible Party is actually and materially prejudiced thereby. Such notice shall provide in reasonable
detail, to the extent known, the basis of such claim (with reference to the specific provision of this Agreement) under which indemnification
or reimbursement is sought pursuant to Section 7.2 and enclose true, correct and complete copies of any written document
furnished to the Indemnified Party by the Person that instituted the Third Party Claim.

 

Section
7.3.2            The Responsible Party shall have the right to elect
to control the defense or prosecution of any Third Party Claim in respect of which indemnity or reimbursement may be sought hereunder
and shall furnish to the Indemnified Party such records, information and testimony, and shall permit such Indemnified Party the
opportunity to attend such conferences, discovery proceedings, hearings, trials and appeals, as may be reasonably requested by
such Indemnified Party in connection therewith.

 

Section
7.3.2.1        The Responsible Party shall have twenty (20) days
the receipt of the Indemnified Party’s notice of a claim of indemnity hereunder to assume the conduct and control, through
counsel reasonably acceptable to the Indemnified Party at the expense of the Responsible Party (it being understood and agreed
by Seller that Orrick, Herrington & Sutcliffe LLP is deemed reasonably acceptable counsel), of the settlement or defense thereof,
and the Indemnified Party shall cooperate with it in connection therewith; provided, that the Responsible Party shall permit the
Indemnified Party to participate in such settlement or defense through counsel chosen by such Indemnified Party, it being understood
and agreed that the fees and expenses of such counsel shall be borne by such Indemnified Party; provided, however, such fees and
expenses of the Indemnified Party's counsel shall be borne by the Responsible Party if in the reasonable opinion of counsel to
the Indemnified Party, a conflict or potential conflict exists between such Indemnified Party and such Responsible Party that would
make separate representation advisable.

 

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Section
7.3.2.2         If the Responsible Party does not notify the Indemnified
Party within twenty (20) days after the receipt of the Indemnified Party’s notice of a claim of indemnity hereunder that
it elects to undertake the defense thereof, the Indemnified Party shall have the right to contest, settle or compromise the claim
but shall not thereby waive any right to indemnity or reimbursement therefor pursuant to this Agreement.

 

Section
7.3.2.3         If the Responsible Party elects not to assume the
defense thereof, fails to timely and properly notify the Indemnified Party of its election as herein provided, or, at any time
after assuming such defense, fails to diligently defend against such Third-Party Claim in good faith, or if such Indemnified Party
is otherwise entitled pursuant to this Agreement to have control over the defense of any Third-Party Claim, such Indemnified Party
may, at such Responsible Party’s expense, pay, defend, settle, or compromise such asserted claim (but such Responsible Party
shall nevertheless be required to pay in accordance with this Agreement any Losses incurred by such Indemnified Party in connection
with such payment, defense, settlement, or compromise thereof which are indemnifiable in accordance with this Article VII).

 

Section
7.3.2.4          Notwithstanding anything herein to the contrary,
the Responsible Party shall not be entitled to have sole control over (and if it so desires, the Indemnified Party shall have sole
control over) the defense, settlement, adjustment, or compromise of (but such Responsible Party shall nevertheless be required
to pay in accordance with this Agreement all Losses incurred by the Indemnified Party in connection with the defense, settlement,
or compromise thereof) (i) any Third-Party Claim that primarily seeks an order, injunction or other equitable relief against any
Indemnified Party or any of its Affiliates, (ii) any Third-Party Claim that is reasonably expected to result in damages greater
than 120% of the amount of the Indemnity Escrow Funds, (iii) the Third-Party Claim is on behalf of a Material Customer, and (iv)
any criminal proceeding, indictment or allegation.

 

Section
7.3.2.5         No Responsible Party will, without the prior written
consent of each such Indemnified Party, settle or compromise or consent to the entry of any judgment in any Third Party Claim in
respect of which indemnification may be sought hereunder (whether or not any such Indemnified Party is a party to such action),
unless such settlement, compromise or consent by its terms obligates such Responsible Party to pay the full amount of the Losses
in connection with such Third-Party Claim and includes an unconditional release of all such Indemnified Parties from all liability
arising out of such Third Party Claim.

 

Section
7.4            Limitations on Indemnification Obligations.
The rights of Purchaser Indemnitees to indemnification pursuant to the provisions of Section 7.2.1 are subject to the following
limitations:

 

Section
7.4.1           the amount of any and all Losses will be determined
net of (i) any amounts recovered by Purchaser Indemnitees under insurance policies or other collateral sources (such as contractual
indemnities of any Person which are contained outside of this Agreement) with respect to such Losses, net of any reasonable out-of-pocket
expenses incurred in collecting such proceeds or payment and increases in premiums attributable to such recovery, and (ii) any
Tax benefit actually realized with respect to such Losses within twelve (12) months following the date on which the Claim is made
by Purchaser Indemnitee hereunder (it being understood that any such Tax benefit that actually is realized after the payment pursuant
to this section (and within the period specified above) shall not be netted from such payment, but shall be paid by the applicable
Purchaser Indemnitee within twenty (20) days after such Tax benefit actually is realized) (for the avoidance of doubt, this Section
7.4 shall in no way be construed to require any Purchaser Indemnitee to make available its Tax Returns (or any other information
it deems confidential) to Seller or any other Person);

 

    	 	50	 

     

    

 

Section
7.4.2             [Intentionally omitted];

 

Section
7.4.3           Purchaser Indemnitees will not be entitled to recover
Losses pursuant to Section 7.2.1(a) until the total amount which Purchaser Indemnitees would recover under Section 7.2.1(a)
(as limited by the provisions of Sections 7.4.1), exceeds $110,000 (the “Deductible”) and then only for
the excess over the Deductible; provided, however, the Deductible will not apply in the case of fraud on the part
of the party making such representation or warranty; provided, further, any amounts recovered by Purchaser Indemnitees
under Sections 7.2.1(b), (c), or (d) or in the case of fraud shall count when determining whether the Deductible
has been exceeded for purposes of claims under Section 7.2.1(a).

 

Section
7.4.4            the Indemnity Escrow Funds, at any given time, shall
be the sole source of recovery with respect to any Losses that the Purchaser Indemnities are entitled to recover from Seller or
any of its Affiliates for Losses pursuant to Sections 7.2.1(a), and (d) (except in the case of fraud on the part
of Seller or the Company) and in no event shall the Purchaser Indemnitees be entitled to recover from Seller or any of its Affiliates
more than the amount of the Indemnity Escrow Funds in respect of Losses pursuant to Sections 7.2.1(a), and (d) (except
in the case of fraud on the part of the party making such representation or warranty) (for the avoidance of doubt, notwithstanding
anything contained herein to the contrary after the Closing, on the date that the amount of cash in the Indemnity Escrow Account
is reduced to zero, Purchaser Indemnitees shall have no further rights to indemnification from Seller under Sections 7.2.1(a),
and (d) (except in the case of fraud on the part of the party making such representation or warranty));

 

Section
7.4.5            In no event shall Seller or any of its Affiliates
have any liability pursuant to this Agreement, the Documents or any other certificate or instrument delivered pursuant hereto,
or the transactions related hereto or thereto in the aggregate in excess of the proceeds received by such Person directly or indirectly
as a result of the payment of proceeds to Seller pursuant to Article II of this Agreement, as adjusted.

 

Section
7.4.6            Purchaser Indemnitees shall not be entitled to recover
Losses to the extent such Losses were included in any item taken into account in the determination of Purchase Price (for which
the sole remedy shall be pursuant to Section 2.3);

 

    	 	51	 

     

    

 

Section
7.4.7           Purchaser Indemnitees and Seller Indemnitees, as
applicable, shall use commercially reasonable efforts to mitigate any of their respective Losses; provided that the costs
of any such commercially reasonable mitigation efforts, subject to the limitations set forth in this Agreement, shall constitute
indemnifiable Losses hereunder;

 

Section
7.4.8             in any case where a Purchaser Indemnitee recovers
under insurance policies or from other collateral sources any amount in respect of a matter for which such Purchaser Indemnitee
was indemnified pursuant to Section 7.2.1 of this Agreement, such Purchaser Indemnitee shall promptly pay over to Seller
the amount so recovered (after deducting therefrom all reasonable and out-of-pocket expenses incurred by it in procuring such recovery),
but not in excess of the sum of (i) any amount previously so paid by or on behalf of Seller in respect of such matter (taking
into account any reduction pursuant to Section 7.4.1), and (ii) any reasonable out-of-pocket expenses incurred by Seller
in pursuing or defending any claim arising out of such matter; and

 

Section
7.4.9            notwithstanding the foregoing, for the purposes of
determining whether there has been a breach of a representation or warranty or covenant and for calculating the amount of any Losses
related thereto, the representations and warranties and covenants shall be read without regard to any Material Adverse Effect or
other materiality qualifiers contained therein; provided that the foregoing shall not apply to the representations and warranties
set forth in Section 3.6.2.

 

Section
7.5           Release of Indemnity Escrow Funds.
Any funds remaining in the Indemnity Escrow Account, less the amount claimed pursuant to Section 7.2.1 in respect of matters
which have not been resolved prior to the date which is twelve (12) months following the Closing Date shall be released to Seller
on such date that is twelve (12) months following the Closing Date, provided that Purchaser and Seller shall promptly provide
written instruction to the Escrow Agent to make such release. At any time after the date that is twelve (12) months after the
Closing Date, if a claim for which funds had been retained in the Indemnity Escrow Account is resolved, Purchaser and Seller shall,
within three (3) Business Days following resolution thereof, provide written instructions to the Escrow Agent to release the funds
associated therewith to the Party associated with such resolution.

 

Section
7.6           Exclusive Remedy. Notwithstanding
anything contained in this Agreement to the contrary, except as provided in Section 2.3, Section 2.5, Section
8.13 and in the case of fraud, after the Closing, indemnification pursuant to the provisions of this Article VII and
of the R&W Insurance Policy shall be the sole and exclusive remedy of Purchaser for any misrepresentation or breach of any
warranty, covenant or other provision contained in this Agreement, the Documents or in any other certificate or instrument delivered
pursuant hereto or otherwise in respect of the transactions contemplated hereby (including with respect to any environmental,
health or safety matters, including those arising under CERCLA or any other Environmental Laws (“Environmental Matters”)
or Tax matters). Except as provided in Section 8.13 and except for Seller’s obligation (if any) under Section
2.3.4.2 with respect to the Actual Adjustment and in the case of fraud on the part of Seller or the Company, the sole and
exclusive remedy available to Purchaser Indemnitees from Seller and its Affiliates for any Loss, Losses or other amounts (including
any relating to Environmental Matters or Tax matters) arising under the indemnification obligations set forth in this Agreement,
or otherwise in respect of the transactions contemplated hereby (including with respect to any Environmental Matters), shall be
the provisions of this Article VII. Purchaser acknowledges that in no event shall any of Seller’s current, former
and future equityholders, controlling Persons, directors, managers, officers, employees, agents, representatives, Affiliates,
members, managers, general or limited partners, or assignees (or any former, current or future equityholder, controlling Person,
director, officer, employee, agent, representative, Affiliate, member, manager, general or limited partner, or assignee of any
of the foregoing) (in each case other than the other Seller and the Company as expressly provided herein) have any liability related
to this Agreement or the transactions contemplated herein. Any payment made under the R&W Insurance Policy to the Purchaser
Indemnitees pursuant to this Article VII shall constitute full satisfaction of any obligation of Seller to make such payment
to the Purchaser Indemnitees.

 

    	 	52	 

     

    

 

Article
VIII—MISCELLANEOUS

 

Section
8.1           Notices. All notices or other communications
required or permitted hereunder shall be in writing and shall be delivered personally, by facsimile, by electronic mail or sent
by certified, registered or express air mail, postage prepaid, and shall be deemed given when so delivered personally, or by facsimile
or electronic mail, or if mailed, two (2) days after the date of mailing, as follows:

 

If to Purchaser, Parent or the Company:

 

ANI Pharmaceuticals, Inc.

210 W Main St

Baudette, MN 56623

Attention: CFO

 

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

 

Orrick, Herrington and Sutcliffe LLP

51 West 52nd Street

New York, NY 10019-6142

Facsimile: (212) 506-5151

Email: kmilling@orrick.com, dschwartz@orrick.com

Attention: R. King Milling, David Schwartz

 

If to Seller:

 

WSP Pharma Holdings, LLC

c/o Sentinel Capital Partners, L.L.C.

330 Madison Avenue, 27th Floor

New York, NY 10017

Facsimile: (212) 688-6513

Email: bommer@sentinelpartners.com; vansickle@sentinelpartners.com

Attention: Eric D. Bommer; John Van Sickle

 

    	 	53	 

     

    

 

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

 

Covington & Burling LLP

620 Eighth Avenue

New York, NY 10018

Facsimile: (646) 441-9250

Email: awollensack@cov.com

Attention: Amy Wollensack

 

or to such other address as any party hereto
shall notify the other parties hereto (as provided above) from time to time.

 

Section
8.2           Exhibits and Schedules. All exhibits
and schedules hereto (including the Schedules), or documents expressly referenced in this Agreement, are hereby incorporated into
this Agreement and are hereby made a part hereof as if set out in full in this Agreement. Any matter that is disclosed in a Schedule
shall be deemed to have been disclosed for the purposes of each other representation and warranty in this Agreement to which it
is reasonably apparent on the face of such disclosure that it is applicable, notwithstanding the omission of an appropriate cross
reference thereto. Disclosure of any fact or item in any Schedule shall not necessarily mean that such fact or item is material
to Seller or the Company and any such disclosure, or any references to dollar amounts, shall not be deemed to be an acknowledgement
or representation that such items are material or would cause a Material Adverse Effect, to establish any standard of materiality
or to define further the meaning of such terms for the purposes of this Agreement.

 

Section
8.3           Time of the Essence; Computation of Time.
Time is of the essence for each and every provision of this Agreement. In the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including” and the words “to”
and “until” mean “to but excluding” and the word “through” means “to and including.”
Whenever the last day for the exercise of any privilege or the discharge of any duty hereunder shall fall upon a day that is not
a Business Day, the party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding
day that is a Business Day.

 

Section
8.4           Expenses. Except as otherwise set
forth in this Agreement, regardless of whether the transactions provided for in this Agreement are consummated, except as otherwise
provided herein, each party hereto shall pay its own expenses incident to this Agreement and the transactions contemplated herein.
Purchaser understands and acknowledges that all out-of-pocket fees and expenses incurred or to be incurred by Seller or the Company
in connection with the transactions contemplated hereby (including the Seller Expenses) will be paid by or on behalf of the Company
in the manner set forth Section 2.2.

 

Section
8.5           Governing Law. All issues and questions
concerning the construction, validity, enforcement and interpretation of this Agreement and the schedules and exhibits hereto
shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to any choice
of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law
of the State of New York shall control the interpretation and construction of this Agreement (and all schedules and exhibits hereto),
even though under that jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction
would ordinarily apply.

 

    	 	54	 

     

    

 

Section
8.6           Jurisdiction and Venue. Each
of the parties submits to the exclusive jurisdiction of any state or federal court sitting in New York, New York (or any applicable
court of appeal thereto), in any action or proceeding arising out of or relating to this Agreement, agrees that all claims in
respect of the action or proceeding may be heard and determined in any such court and agrees not to bring any action or proceeding
arising out of or relating to this Agreement in any other court. Each of the parties waives any defense of inconvenient forum
to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required
of any other party with respect thereto. Each party agrees that service of summons and complaint or any other process that might
be served in any action or proceeding may be made on such party by sending or delivering a copy of the process to the party to
be served at the address of the party and in the manner provided for the giving of notices in Section 8.1. Nothing in this
Section 8.6, however, shall affect the right of any party to serve legal process in any other manner permitted by law.
Each party agrees that a final, non-appealable judgment in any action or proceeding so brought shall be conclusive and may be
enforced by suit on the judgment or in any other manner provided by law.

 

Section
8.7           Assignment; Successors and Assigns; No Third
Party Rights. Except as otherwise provided herein, this Agreement may not, without the prior written consent of the other
parties hereto, be assigned by operation of law or otherwise, and any attempted assignment shall be null and void. Notwithstanding
the foregoing, after the Closing Purchaser may assign or delegate any or all of its rights and/or obligations in whole or in part
under this Agreement to any Person (other than an Affiliate of Purchaser) acquiring all or substantially all of the assets of
Purchaser, in which case Purchaser shall, upon assumption of its obligations under this Agreement by such purchaser, be released
from all of its obligations under this Agreement. Subject to the foregoing, this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, successors, permitted assigns and legal representatives. Except
as expressly set forth in Section 6.5.2 and Section 6.6, this Agreement shall be for the sole benefit of the parties
to this Agreement and their respective heirs, successors, permitted assigns and legal representatives and is not intended, nor
shall be construed, to give any Person, other than the parties hereto and their respective heirs, successors, assigns and legal
representatives, any legal or equitable right, remedy or claim hereunder. Nothing in this Agreement, expressed or implied, is
intended to or shall constitute the parties hereto partners or participants in a joint venture.

 

Section
8.8           Counterparts. This Agreement may
be executed in any number of counterparts for the convenience of the parties hereto, each of which shall be deemed an original
and all of which together will constitute one and the same instrument. Delivery of an executed counterpart of a signature page
to this Agreement by facsimile, e-mailed PDF or other electronic transmission shall be effective as delivery of a mutually executed
counterpart to this Agreement.

 

Section
8.9           Titles and Headings. The titles,
captions and table of contents in this Agreement are for reference purposes only, and shall not in any way define, limit, extend
or describe the scope of this Agreement or otherwise affect the meaning or interpretation of this Agreement.

 

    	 	55	 

     

    

 

Section
8.10         Entire Agreement. This Agreement (including
the Schedules and Exhibits attached hereto), the other Documents and the Confidentiality Agreement, constitute the entire agreement
among the parties with respect to the matters covered hereby and supersedes all previous written, oral or implied understandings
among them with respect to such matters.

 

Section
8.11         Severability. The invalidity of any portion
hereof shall not affect the validity, force or effect of the remaining portions hereof. If it is ever held that any restriction
hereunder is too broad to permit enforcement of such restriction to its fullest extent, such restriction shall be enforced to
the maximum extent permitted by law.

 

Section
8.12         No Strict Construction. Each of the parties
hereto acknowledges that this Agreement has been prepared jointly by the parties hereto, and shall not be strictly construed against
either party.

 

Section
8.13         Specific Performance. Each of Seller, the Company
and Purchaser acknowledges that the rights of each party set forth in this Agreement are unique and recognizes and affirms that
in the event of a breach of this Agreement by any party, money damages may be inadequate and the non-breaching party may have
no adequate remedy at law. Accordingly, the parties agree that such non-breaching party shall have the right, in addition to any
other rights and remedies existing in their favor at law or in equity, to enforce its rights and the other party’s obligations
not only hereunder but also by an action or actions for specific performance, injunctive and/or other equitable relief (without
posting of bond or other security).

 

Section
8.14         Waiver Of Jury Trial. EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
OR INCIDENTAL TO THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY
HERETO. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY
OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL
BY JURY.

 

Section
8.15         Failure or Indulgence not Waiver. No failure
or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be
waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or any other right. All rights and remedies existing
under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

    	 	56	 

     

    

 

Section
8.16         Amendments. This Agreement (including the provisions
of this Section 8.16) may not be amended or modified except by an instrument in writing signed on behalf of each of Seller
and Purchaser.

 

Section
8.17         Conflicts; Privileges. It is acknowledged by
each of the parties hereto that Seller and the Company have retained Covington & Burling LLP (“Covington”)
and Davies Ward Phillips & Vineberg LLP (together with Covington, the “Legal Counsel”) to act as their
counsel in connection with the transactions contemplated hereby and that the Legal Counsel have not acted as counsel for any other
Person in connection with the transactions contemplated hereby and that no other party to this Agreement has the status of a client
of either Legal Counsel for conflict of interest or any other purposes as a result thereof. Purchaser hereby agrees that, in the
event that a dispute arises between Purchaser or any of its Affiliates (including, after the Closing, the Company) and Seller
or any of Seller’s direct or indirect equityholders (“Seller’s Equityholders”) under this Agreement
or the transactions contemplated hereby, each Legal Counsel may represent Seller or such Seller’s Equityholder in such dispute.
Even though the interests of such Seller’s Equityholder may be directly adverse to Purchaser, the Company or any of its
Affiliates, and even though such Legal Counsel may have represented Seller or the Company in a matter substantially related to
such dispute, Purchaser and the Company hereby waive, on behalf of themselves and each of their Affiliates, any conflict of interest
in connection with such representation by such Legal Counsel. Purchaser further agrees that, as to all communications among any
Legal Counsel, Seller, the Company and any of Seller’s Equityholders that relate in any way to the transactions contemplated
by this Agreement, the attorney-client privilege, the expectation of client confidence and all other rights to any evidentiary
privilege belong to Seller and Seller’s Equityholder and may be controlled by Seller or such Seller’s Equityholder
and shall not pass to or be claimed by Purchaser or the Company. Purchaser agrees to take, and to cause its Subsidiaries to take,
all steps reasonably necessary and within its control to implement the intent of this Section 8.17.

 

Section
8.18         Parent Guarantee.

 

Section
8.18.1          Parent hereby unconditionally and irrevocably guarantees, as
primary obligor and not merely as surety, the due and punctual payment and discharge of each obligation of Purchaser and the full
and timely performance by Purchaser of its obligations, in each case, under the provisions of this Agreement and the other Documents
to which Purchaser is a party (collectively, the “Obligations”).

 

Section
8.18.2          This is a guarantee of payment and performance, and Parent acknowledges
and agrees that this guarantee is full and unconditional, and no release or extinguishment of Purchaser’s liabilities and
obligations (other than in accordance with the terms of this Agreement or the Documents to which Purchaser is a party, as applicable),
whether by decree in any bankruptcy proceeding or otherwise, will affect the continuing validity and enforceability of this guarantee.
Parent hereby waives, for the benefit of Seller, (i) any right to require Seller, as a condition of payment or performance of Parent,
to proceed against Purchaser or pursue any other remedies whatsoever, and (ii) to the fullest extent permitted by law, any defenses
or benefits that may be derived from or afforded by law that limit the liability of or exonerate guarantors or sureties, except
to the extent that any such defense is available to Purchaser under this Agreement.

 

    	 	57	 

     

    

 

Section
8.18.3          Seller shall not be obligated to file any claim relating to
the Obligations in the event that Purchaser becomes subject to an insolvency event, and the failure of Seller to so file shall
not affect Parent’s obligations hereunder. In the event that any payment to Seller in respect of the Obligations is rescinded
or must otherwise be returned for any reason whatsoever, Parent shall remain liable hereunder with respect to the Obligations as
if such payment had not been made. This is an unconditional guarantee of payment and not of collectability.

 

Section
8.18.4         Parent agrees that its obligations hereunder shall remain absolute
and unconditional and shall not be released or discharged, in whole or in part, or otherwise affected by (i) the failure of Seller
to assert any claim or demand or to enforce any right or remedy against Purchaser (or any of its permitted assignees) or any other
Person; (ii) any change in time, place or manner of payment of any of the Obligations or any rescission, waiver, compromise,
consolidation or other amendment to or modification of any of the terms or provisions of this Agreement made in accordance with
the terms thereof or any other agreement evidencing, securing or otherwise executed in connection with any of the Obligations;
(iii) the addition, substitution or release of Purchaser (or any of its permitted assignees) or any other Person; (iv) any
change in the corporate existence, structure or ownership of Purchaser (or any of its permitted assignees) or any other Person;
(v) any insolvency event or other similar proceeding affecting Purchaser (or any of its successors or permitted assigns) or
any other Person; (vi) the existence of any claim, set-off or other right which Parent may have at any time against Purchaser
or Seller or any of their respective Affiliates, whether in connection with the Obligations or otherwise; (vii) the adequacy
of any other means Seller may have of obtaining repayment of any of the Obligations; (viii) the value, genuineness, validity,
regularity, illegality or enforceability of this Agreement; (ix) any assignment by Purchaser of its rights or obligations under
this Agreement and (x) any defenses available to Purchaser (or its permitted assignees), other than defenses available under this
Agreement. Parent waives promptness, diligence, notice of the acceptance of this guarantee and of the Obligations, presentment,
demand for payment, notice of non-performance, default, dishonor and protest, notice of the incurrence of any Obligations and all
other notices of any kind, all defenses which may be available by virtue of any valuation, stay, moratorium law or other similar
law now or hereafter in effect, any right to require the marshalling of assets of Purchaser or any other Person interested in the
transactions contemplated by this Agreement, and all suretyship defenses generally. Parent acknowledges that it will receive substantial
direct and indirect benefits from the transactions contemplated by this Agreement and that the waivers set forth in this guarantee
are knowingly made in contemplation of such benefits.

 

    	 	58	 

     

    

 

Section
8.18.5          As an inducement to Seller to enter into this Agreement, Parent
hereby makes the following representations and warranties, as of the Effective Date, to Seller: Parent is a validly existing corporation
and is in good standing under the laws of the jurisdiction of its organization; the execution, delivery and performance of this
Agreement by Parent has been duly authorized by all requisite corporate action; this Agreement constitutes the legal, valid and
binding obligation of Parent, enforceable against Parent in accordance with the terms hereof, subject to the effect of bankruptcy,
insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights and remedies of creditors generally
and the effect of general principles of equity, whether applied by a court of law or equity; and the execution, delivery and performance
of this Agreement will not violate or conflict with any other agreement or instrument to which it is a party.

 

Section
8.18.6          This guarantee shall remain in full force and effect and shall
be binding on Parent and its successors and permitted assigns, and shall inure to the benefit of Seller and its successors and
permitted assigns, until all of the Obligations and all amounts payable under this guarantee have been indefeasibly paid, observed,
performed or satisfied in full, except to the extent set forth herein. The obligations of Parent hereunder are independent of the
obligations of Purchaser and a separate action or actions may be brought and prosecuted against Parent whether or not any action
is brought against Purchaser and whether or not Purchaser is joined in any such actions.

 

*     *     *     *     *     *     *

 

    	 	59	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Stock Purchase Agreement to be duly executed as of the day and year first above written.

 

	 	WELLSPRING PHARMA SERVICES INC.
	 	 
	 	By:	/s/ Wendy Shusko
	 	 	Name: Wendy Shusko
	 	 	Title: Chief Executive Officer
	 	 	 
	 	ANI Pharmaceuticals Canada Inc.
	 	 
	 	By:	/s/ Stephen Carey
	 	 	Name: Stephen Carey
	 	 	Title: Vice President, Secretary, and Treasurer
	 	 
	 	ANI PHARMACEUTICALS, INC.,
solely for purposes of Section 8.18
	 	 
	 	By:	/s/ Stephen Carey
	 	 	Name: Stephen Carey
	 	 	Title: Vice President and Chief Financial Officer

 

[Signature Page to Stock Purchase Agreement]Exhibit 10.1
         

        

        Execution Copy

      

      

      

      NOTE PURCHASE AND EXCHANGE AGREEMENT

       

        

      This Note Purchase and Exchange Agreement (this “Agreement”),

          dated as of October 31, 2018, is made by and among Intersections Inc., a Delaware corporation (the “Company”), and the investors identified on Annex I attached hereto (together with their respective successors and permitted assigns, the “Investors”).

      

      

      WHEREAS, the Company and the Investors are
          executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the provisions of Regulation D (“Regulation D”),

          as promulgated by the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”);

      

      

      WHEREAS, upon the terms and conditions stated
          in this Agreement (i) the Investors listed on Part A of Annex I hereto wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, senior secured convertible notes in the form attached hereto as Exhibit A  (the “Notes”) in the initial aggregate principal amount of $30,000,000,
          and (ii) the Investors on Part B of Annex I hereto wish to exchange certain unsecured
          convertible notes previously issued by the Company to such Investors, and the Company wishes to exchange such unsecured convertible notes, for $4,000,000 in aggregate principal amount of Notes; and

      

      

      WHEREAS, contemporaneously with the issuance,
          sale and exchange of the Notes, the parties hereto will execute and deliver (i) a Registration Rights Agreement, in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which the Company will agree to provide the Investors with certain registration rights under the Act, and the rules
          and regulations promulgated thereunder, and applicable state securities laws, (ii) a Guaranty, in the form attached hereto as Exhibit C (the “Guaranty”), pursuant to which the Company’s Subsidiaries will guaranty the obligations of the Company under the Notes, and (iii) a Pledge and Security Agreement, in the form
          attached hereto as Exhibit D (the "Security Agreement"), pursuant to which the
          Company and its Subsidiaries will grant to the Majority Investor, as collateral agent, for the ratable benefit of the Investors, a security interest in the Company's and such Subsidiaries’ assets to secure their respective obligations under the
          Notes, the Guaranty and each other agreement executed by such Persons in connection herewith.

      

      

      NOW, THEREFORE, in consideration of the mutual
          promises, representations, warranties and covenants herein contained, which represent integral components of the transactions contemplated hereby and shall be fully enforceable by the parties hereto, and for other good and valuable consideration,
          the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors mutually agree as follows.  Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Notes.

      

      

      ARTICLE 1

      

      

      PURCHASE AND EXCHANGE OF THE NOTES

      

      

      1.1          Issuance of Notes.  Subject to the terms and conditions of this Agreement, on the Closing Date:

      

      

      
        
          

      

      
      (a)          Each Investor listed on Part A of Annex I shall severally, and not jointly, purchase from the Company, and the Company shall sell and issue to each such Investor, the Notes in the
            respective amounts set forth opposite each such Investor’s name on Part A of Annex I in exchange for a cash payment by each Investor of the respective amounts set forth opposite each such
            Investor’s name on Part A of Annex I (the “Purchase Price”); and

      

      

      (b)          Each Investor listed on Part B of Annex I shall exchange the notes issued by the Company and described opposite such Investor’s name on Part B of Annex I (the “Bridge Notes”) for Notes in the respective
            amount set forth opposite such Investor’s name on Part B of Annex I, and the Company shall issue
            such Notes to each such Investor in exchange for the applicable Bridge Notes.

      

      

      1.2          Closing.  The closing (the “Closing”) of the purchase, sale and exchange of the Notes shall take place simultaneously with the execution of this Agreement or at such other time as the Company and the Investors may mutually agree (the date
            on which the Closing occurs, the “Closing Date”).  At the Closing, the Company shall
            deliver to the Investors the Notes registered in such name or names as the Investors may designate.  On the Closing Date, (i) the Investors listed on Part A of Annex I shall deliver the Purchase
            Price to the Company payable by wire transfer in same day funds to an account specified by the Company in writing and (ii) the Investors listed on Part B of Annex I shall deliver the Bridge
            Notes to the Company for cancellation.

      

      

      ARTICLE 2

      

      

      REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      

      

      The Company represents and warrants to the Investors that, except as set forth in the disclosure letter delivered to the Investors by the
          Company concurrently with the Closing, subject to exceptions contained in the Company’s public filings with the Commission (the "Disclosure Letter"), the
          statements contained in this Article 2 are true and correct as of the Closing Date except to the extent such representations and warranties are specifically made as of
          a particular date (in which case such representations and warranties are true and correct as of such other specified date).

      

      

      2.1          Corporate Power.  The Company and each of its Subsidiaries has the corporate or other power and authority to execute, deliver and perform its obligations
            under this Agreement, the Notes, the Guaranty, the Security Agreement, certain short-form patent, trademark or copyright security agreements, the Registration Rights Agreement, and any other agreements contemplated or necessitated hereby to
            which it is a party (collectively, the “Transaction Documents”).  The Company has the
            corporate power and authority to issue, sell and deliver the Notes and to issue and deliver the shares of Common Stock and Preferred Stock issuable upon conversion of the Notes (the “Note Shares”).

      

      

      2.2          Authorization.

      

      

      (a)          The execution and delivery by the Company of the Transaction Documents to which it is a party, the performance by the Company of its obligations thereunder, the issuance, sale and delivery of the Notes by the Company and the
            reservation of the Note Shares by the Company have been duly authorized by all requisite corporate action and will not (i) violate any provision of law, any order of any court or other agency of government, the Certificate of Incorporation of
            the Company, as amended to date (the “Charter”), or the By-laws of the Company, as
            amended to date (the “By-laws”), or any provision of any indenture, agreement or
            other instrument to which the Company or any of its Subsidiaries is a party or by which any of its properties or assets is bound, (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under
            any such indenture, agreement or other instrument, or (iii) result in the creation or imposition of any lien, charge, restriction, claim or encumbrance of any nature whatsoever upon any of the properties or assets of the Company or any of its
            Subsidiaries.

      

      

      
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      (b)          The Notes have been duly authorized and, when issued and delivered pursuant to this Agreement, will have been duly executed, issued and delivered and will constitute valid and legally binding obligations of the Company, enforceable in
            accordance with their terms, subject, as to enforcement, to (i) bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and (ii) general equity principles.

      

      

      (c)          Each Transaction Document (other than the Notes) has been duly authorized and, when executed and delivered pursuant to this Agreement, will have been duly executed and delivered and will constitute valid and legally binding obligations
            of the Company or its Subsidiaries party thereto, enforceable in accordance with their terms, subject, as to enforcement, to (i) bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’
            rights and (ii) general equity principles.

      

      

      (d)          When issued, the Note Shares will be duly authorized, issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances, except transfer restrictions under U.S. federal securities law.

      

      

      (e)          The execution and delivery by each Subsidiary of the Company of the Transaction Documents to which it is a party, and the performance by such Subsidiary of its obligations thereunder, have been duly authorized by all requisite
            corporate or other action and will not (i) violate any provision of law, any order of any court or other agency of government, the Governing Documents of such Subsidiary, or any provision of any indenture, agreement or other instrument to which
            such Subsidiary is a party or by which any of its properties or assets is bound, (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other
            instrument, or (iii) result in the creation or imposition of any lien, charge, restriction, claim or encumbrance of any nature whatsoever upon any of the properties or assets of such Subsidiary.

      

      

      2.3          Eligibility for Resale Under Rule 144A.  The Notes are eligible for resale pursuant to Rule 144A and are not of the same class as securities listed on a
            national securities exchange registered under Section 6 of the Exchange Act or quoted on a U.S. automated interdealer quotation system.

      

      

      2.4          Private Offering; No Integration or General Solicitations.

      

      

    

    
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      (a)          In reliance upon the agreements, representations and warranties of the Investors set forth herein, it is not necessary in connection with the offer, sale and delivery of the Notes (or the Note Shares) to the Investors in the manner
            contemplated by the Notes and this Agreement to register the Notes (or the Note Shares) under the Securities Act.

      

      

      (b)          Neither the Company nor any of its Subsidiaries has, directly or indirectly, offered, sold or solicited any offer to buy and neither the Company nor any of its Subsidiaries will, directly or indirectly, offer, sell or solicit any offer
            to buy, any security of a type or in a manner which would be integrated with the sale or exchange of the Notes and require any Notes (or Note Shares) to be registered under the Securities Act. Neither the Company nor any of its Subsidiaries,
            Affiliates or any person acting on its or any of their behalf (other than the Investors, as to whom the Company and its Subsidiaries makes no representation or warranty) has engaged or will engage in any form of general solicitation or general
            advertising (within the meaning of Rule 502(c) under the Securities Act) in connection with the Notes (or the Note Shares).

      

      

      2.5          Authorization of Common Stock and Preferred Stock.  All the issued and outstanding Common Stock and Preferred Stock have been duly authorized and are validly
            issued, fully paid and non-assessable and are free of preemptive rights, except as set forth in the Governing Documents of the Company. As of immediately prior to Closing on the Closing Date, there are no securities of the Company or any of its
            Subsidiaries that are convertible into or exchangeable for Common Stock or Preferred Stock of the Company or any of its Subsidiaries, and no options, warrants, calls, subscriptions, convertible securities, or other rights, agreements or
            commitments which obligate the Company or any of its Subsidiaries to issue, transfer or sell any Common Stock or Preferred Stock of the Company or any of its Subsidiaries. Except as provided for in the Governing Documents of the Company, there
            are no outstanding obligations of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any Common Stock or Preferred Stock of the Company or any of its Subsidiaries and, as of the Closing Date, neither the Company
            nor any of its Subsidiaries has any awards or options outstanding under any stock option plans or agreements or any other outstanding stock-related awards. There are no voting trusts or other agreements or understandings to which the Company or
            any of its Subsidiaries is a party with respect to the holding, voting or disposing of Common Stock or Preferred Stock of the Company or any of its Subsidiaries.  As of immediately prior to Closing on the Closing Date, neither the Company nor
            any of its Subsidiaries has any outstanding bonds, debentures, notes or other obligations or other securities that entitle the holders thereof to vote with the stockholders of the Company or any of its Subsidiaries on any matter or which are
            convertible into or exercisable for securities having such a right to vote.  Section 2.5 of the Disclosure Letter sets forth exceptions to any of the representations in this Section

              2.5.

      

      

      2.6          Shareholder Approval.  The Shareholder Approval has been duly approved, executed and delivered by the stockholders of the Company holding a majority of the
            issued and outstanding shares of Common Stock.

      

      

      2.7          Merger Agreement Representations and Warranties.  The representations and warranties set forth in Article IV of the Merger Agreement are true and correct and
            are incorporated by reference as if fully set forth herein.

      

      

      
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      ARTICLE 3

      

      

      REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

      

      

      Each Investor, severally and not jointly, represents and warrants to the Company that the statements contained in this Article 3 are true and correct with respect to such Investor as of the Closing Date, except to the extent such representations and warranties are specifically made as of a
          particular date (in which case such representations and warranties are true and correct as of such other specified date).

      

      

      3.1          Such Investor is an “accredited investor” as defined by Rule 501 of Regulation D, and such Investor is capable of evaluating the merits and risks of its investment in the Notes and has the ability and capacity to protect its interests.

      

      

      3.2          Such Investor understands that, except as provided in the Registration Rights Agreement, the Notes and the Note Shares have not been registered under the Act on the ground that the issuance thereof is exempt under Section 4(a)(2) of
            the Act and/or Regulation D as a transaction by an issuer not involving any public offering and that, in the view of the Commission, the statutory basis for the exception claimed would not be present if any of the representations and warranties
            of such Investor contained in this Agreement are untrue or, notwithstanding such Investor’s representations and warranties, such Investor currently has in mind acquiring any of the Notes for resale upon the occurrence or non-occurrence of some
            predetermined event.

      

      

      3.3          Such Investor is purchasing or acquiring by exchange the Notes and, in the event that such Investor should acquire any Note Shares, will be acquiring such Note Shares as principal for its own account, and not for the benefit of any
            other Person, for investment purposes and not with a view to distribution or resale, nor with the intention of selling, transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular time, or upon
            the happening of any particular event or circumstance, except selling, transferring, or disposing of the Notes and Note Shares, as applicable, in full compliance with all applicable provisions of the Act, the rules and regulations promulgated
            by the Commission thereunder, and applicable state securities laws; and that an investment in the Notes and Note Shares is not a liquid investment.

      

      

      3.4          Such Investor confirms that such Investor has had the opportunity to ask questions of, and receive answers from, the Company or any authorized Person acting on its behalf concerning the Company and its business and to obtain any
            additional information, to the extent possessed by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or expense) necessary to verify the accuracy of the information received by such Investor. 
            In connection therewith, such Investor acknowledges that such Investor has had the opportunity to discuss the Company’s business, management and financial affairs with the Company’s management or any authorized Person acting on its behalf. 
            Such Investor has received and reviewed all the information concerning the Company and the Notes, both written and oral, that such Investor desires.  Without limiting the generality of the foregoing, such Investor has been furnished with or has
            had the opportunity to acquire, and to review all information, both written and oral, that such Investor desires with respect to the Company’s business, management, financial affairs and prospects.  In determining whether to make this
            investment, such Investor has relied solely on such Investor’s own knowledge and understanding of the Company and its business based upon such Investor’s own due diligence investigations and the Company’s filings with the Commission.

      

      

      
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      3.5          Such Investor has all requisite legal and other power and authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement.  This Agreement constitutes a valid and legally
            binding obligation of such Investor enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to
            general equity principles.

      

      

      3.6          Such Investor has carefully considered and has discussed with its legal, tax, accounting and financial advisors, to the extent such Investor has deemed necessary, the suitability of this investment and the transactions contemplated by
            this Agreement for such Investor’s particular federal, state, provincial, local and foreign tax and financial situation and has independently determined that this investment and the transactions contemplated by this Agreement are a suitable
            investment for such Investor.  Such Investor understands that it (and not the Company) shall be responsible for such Investor’s own tax liability that may arise as a result of the investment in the Notes or the transactions contemplated by this
            Agreement, except as provided in Section 7.2(c).

      

      

      3.7          Such Investor acknowledges that an investment in the Notes is speculative and involves a high degree of risk and that such Investor can bear the economic risk of the acceptance of the Notes, including a total loss of its investment. 
            Such Investor recognizes and understands that no federal, state, provincial or foreign agency has recommended or endorsed the purchase of the Notes.  Such Investor acknowledges that it has such knowledge and experience in financial and business
            matters that such Investor is capable of evaluating the merits and risks of an investment in the Notes and of making an informed investment decision with respect thereto.

      

      

      3.8          The principal place of business of such Investor is correctly set forth below such Investor’s name on the signature page hereto.

      

      

      ARTICLE 4

      

      

      CONDITIONS RELATING TO THE CLOSING

      

      

      4.1          Conditions to the Obligations of the Investors at the Closing.  The several obligations of each Investor to consummate the transactions contemplated hereby on
            the Closing Date are subject to the satisfaction of the following conditions as of the Closing Date, unless any such conditions are waived by such Investor prior to or on the Closing Date:

      

      

      (a)          Investor Approvals.  The Investors shall have received all requisite approvals to consummate the transactions contemplated by this Agreement, including from
            their respective investment committees.

      

      

      
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      (b)          Due Diligence.  Each of the Investors shall have completed all business, legal, accounting and technical due diligence to their sole satisfaction.

      

      

      (c)          Transaction Documents; Merger Agreement; Other Documents.  The Company and each Subsidiary shall have delivered to the Investors an executed counterpart of
            each of the following Transaction Documents, in each case duly executed by an authorized representative thereof to the extent a party thereto, and otherwise in a form satisfactory to the Investors:

      

      

      (i)          This Agreement;

      

      

      (ii)          The Notes;

      

      

      (iii)          The Guaranty;

      

      

      (iv)          The Security Agreement;

      

      

      (v)          The Copyright Security Agreement, the Trademark Security Agreement and/or the Patent Security Agreement (in each case, as defined in the Security Agreement), as applicable;

      

      

      (vi)          The Registration Rights Agreement;

      

      

      (vii)          An Irrevocable Letter of Instructions to Transfer Agent (the “TA Letter”), substantially in the form attached hereto as Exhibit E, acknowledged and
            agreed to in writing by the Company’s transfer agent; provided that, to the extent not provided on the Closing Date, the acknowledgement and agreement by the Company’s transfer agent may be delivered within the time periods contemplated in
            Section 5.16 of the Disclosure Letter.

      

      

      (viii)          The Merger Agreement, together with each other document or instrument contemplated by Article VII of the Merger Agreement, including evidence of the satisfaction of any conditions precedent to the effectiveness
            thereof provided for therein;

      

      

      (ix)          Voting agreements executed by stockholders of the Company representing a majority of the voting power of the Company, in each case in form and substance satisfactory to the Investors;

      

      

      (x)          The Shareholder Approval; and

      

      

      (xi)          A Certificate of Designation in the form attached hereto as Exhibit G (the “Certificate of Designation”).

      

      

      (d)          Absence of Certain Changes.  Since December 31, 2017, there shall not have occurred or arisen any event, change, effect, occurrence, circumstance or
            condition, which either individually or in the aggregate has had or could reasonably be expected to result in a Material Adverse Effect.

      

      

      
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      (e)          Consents, Permits, and Waivers.  The Company and its Subsidiaries shall have obtained any and all approvals, consents, permits and waivers necessary or
            appropriate for the consummation of the transactions contemplated by this Agreement and the other Transaction Documents.

      

      

      (f)          Authorizations.  All authorizations, consents, approvals or permits, if any, of any governmental authority or regulatory body that are required in connection
            with the lawful issuance and sale of the Notes pursuant to this Agreement shall have been duly obtained and shall be effective on and as of the Closing Date.

      

      

      (g)          Representations, Warranties and Covenants.  The representations and warranties made by the Company and its Subsidiaries in Article 2 hereof, in the other Transaction Documents and in the Merger Agreement shall be true and correct on and as of the
            Closing Date, except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct in all respects as of such earlier date.  The Company shall have
            performed and complied in all respects with all covenants and agreements required by this Agreement to be performed or complied with by it on or prior to the Closing Date, and no Event of Default shall have occurred or be continuing.

      

      

      (h)          Secretary's Certificate.  The Company and each of its Subsidiaries shall have delivered to the Investors certificates of the Secretary of the Company and each
            Subsidiary, as applicable dated as of the Closing Date, certifying on behalf of the Company or such Subsidiary the following:

      

      

      (i)          Copies of all of the Company’s or such Subsidiary’s resolutions adopted by the Company’s or such Subsidiary’s board of directors or equivalent authority approving and authorizing the transactions contemplated
            hereby and the other Transaction Documents and, with respect to the Company, the issuance and sale of the Notes;

      

      

      (ii)          Attesting as to the incumbency and signature of the officers of the Company or such Subsidiary who have authority to execute this Agreement and the other Transaction Documents; and

      

      

      (iii)          Certifying as being complete and correct the copies attached to such certificate of (i) the certificate of incorporation, certificate of formation, or similar charter document, certified as of recent date by the
            Secretary of State of the respective states of organization of the Company or such Subsidiary, as applicable, and (ii) the bylaws, operating agreement or similar organizational documents of the Company or such Subsidiary.

      

      

      (i)          Good Standing Certificates.  The Company shall have delivered to the Investors a Certificate of Good Standing of the Company or such Subsidiary from the
            Secretary of State of their respective states of organization, dated as of recent date.

      

      

      (j)          Insurance Certificates.  The Company shall have delivered to the Investors evidence of all insurance policies and endorsements thereto required by Section 5.9 of this Agreement; provided that, to the extent not delivered on the Closing Date, the
            contemplated insurance certificates and related lender loss payable endorsements may be delivered within the periods set forth on Section 5.16 of the Disclosure Letter.

      

      

      
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      (k)          Opinion of Counsel to the Company.  The Investors shall have received an opinion of counsel to the Company in form and substance reasonably satisfactory to
            the Investors.

      

      

      (l)          Solvency Certificate.  The Company shall have delivered to the Investors a certificate of solvency, executed by a Financial Officer of the Company, in form
            and substance reasonably satisfactory to the Investors.

      

      

      (m)          Lien Searches.  The Investors shall have received UCC and other lien searches and other evidence as requested by the Investors that no liens exist other than
            Permitted Encumbrances.

      

      

      (n)          UCC Financing Statements.  The Investors shall have received appropriately completed copies of UCC financing statements naming the Company and each Subsidiary
            as a debtor and each Investor as a secured party, or other similar instruments or documents to be filed under the UCC of all jurisdictions as may be necessary or, in the reasonable opinion of the Investors and their counsel, desirable to
            perfect the security interests of the Investors pursuant to the Security Agreement.

      

      

      (o)          Pledged Collateral.  The Majority Investor shall have received any and all certificates, notes and instruments and transfer powers evidencing Collateral
            pledged pursuant to the Security Agreement; provided, that to the extent any such possessory collateral is in the possession of the holders of Existing Indebtedness, such possessory collateral, together with any applicable instruments of
            transfer executed in blank with respect thereto, may be delivered within the periods set forth on Section 5.16 of the Disclosure Letter.

      

      

      (p)          Payoff Letter and Terminations.  The Investors shall have received fully executed copies of payoff letters, terminations, UCC-3 financing statements and other
            termination and release documentation (the “Release Documents”) in connection with
            the Existing Indebtedness in form and substance satisfactory to the Investors; provided, that so long as the payoff letter confirms that all liens and security interests of the holders of Existing Indebtedness will be released and extinguished
            upon receipt of the specified payoff amount and authorizes the Company or its designees to prepare and file Release Documents, such Release Documents may be delivered within the periods set forth on Section 5.16 of the Disclosure Letter.

      

      

      (q)          No Litigation.  There shall be no claim, action, suit, investigation, litigation or proceeding, pending or, to the knowledge of the Company and its
            Subsidiaries, threatened, in any court or before any governmental authority with respect to the Transaction Documents or any transactions contemplated thereby or hereby.

      

      

      (r)          Other Documents.  The Company shall have delivered to the Investors such other documents and instruments relating to the transactions contemplated by this
            Agreement as the Investors or their counsel may reasonably request.

      

      

      
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      ARTICLE 5

      

      

      AFFIRMATIVE COVENANTS

      

      

      For so long as (i) any Note or Preferred Stock remains outstanding or (ii) any Significant Investor or a transferee or assignee of any
          Significant Investor holds Note Shares comprised of Common Stock representing at least 50% of the Note Shares originally issued upon conversion of its Notes, the Company shall comply (and shall cause each of its Subsidiaries to comply) with (1)
          in the event no Notes or Preferred Stock are outstanding, Section 5.1, Sections 5.2(a), (b) and (c), Section 5.3,
          Section 5.7, Section 5.8, Section

              5.10, Section 5.12, Section 5.13, Section 5.14 and Section 5.17, and (2) if any Note or Preferred Stock is outstanding, each of the following affirmative
          covenants, unless, in any given instance, any such affirmative covenant is waived in writing in accordance with the terms of Section 7.9:

      

      

      5.1          Board of Directors; Director Designation Rights.  Upon the termination of the Merger Agreement (other than a termination resulting from a breach of the Merger
            Agreement by the Majority Investor and subject to the last paragraph in this Section 5.1) and
            for so long as the Majority Investor holds on such termination date at least 80% of the initial Principal amount of the Notes purchased by the Majority Investor on the Closing Date, either in the form of Notes or Note Shares:

      

      

      (a)          Subject to Nasdaq listing requirements and Commission rules, a majority of the board of directors of the Company (the “Board of Directors”) at the time of such termination of the Merger Agreement shall resign, effective immediately, and the Majority Investor will have the right to designate five (5) representatives to
            serve as members of the Company’s Board of Directors to fill such vacancies or, for so long as Rule 5640 of the Nasdaq Stock Market limits the number of designees that may be appointed by the Majority Investor, such lesser number (such
            designees, the “Investor Designees”); provided, that one member of the Board of
            Directors following the designation of Investor Designees shall be a director designated by Loeb Holding Corporation (provided that such director is independent under the Nasdaq listing requirements at the time of such designation).

      

      

      (b)          The Majority Investor will have the right to appoint the chief executive officer of the Company.

      

      

      (c)          The Company shall cause the Board of Directors to consist of no more than nine (9) directors, without the Majority Investor’s express written consent.

      

      

      (d)          The Company shall pay the reasonable out-of-pocket travel, lodging and other related expenses of the Investor Designees that are incurred in connection with attendance at meetings of the Board of Directors or any committee thereof.

      

      

      (e)          The Company currently maintains, and will continue to maintain, from financially sound and reputable insurers reasonably satisfactory to the Board of Directors, Directors and Officers liability insurance in an amount and on terms and
            conditions satisfactory to the Board of Directors, and the Company will use commercially reasonable efforts to cause such insurance policies to be maintained until such time as the Board of Directors and the Majority Investor determines that
            such insurance should be discontinued and shall not amend or modify such policies to limit or reduce coverage without the consent of the Majority Investor.  In the event the Company merges with another entity and is not the survivor of such
            merger, or in the event the Company transfers all or substantially all of its assets, proper provision shall be made so that the successor to the Company shall assume the Company's obligations with respect to the indemnification of the
            Company's officers and directors.

      

      

      
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      (f)          The Investors agree to execute any written consents required to, and solely concerning effectuating, the obligations of the Company pursuant to this Agreement.

      

      

      (g)          The Company shall take such action as is necessary to convene meetings of its Board of Directors and meetings for the election of the directors (or to act by written consent) in order to elect the Investor Designees in accordance with
            this Section 5.1.

      

      

      (h)          The Company hereby represents and warrants that as of the date hereof the transactions contemplated hereby are not in violation of the Company’s Charter or By-laws and agrees that until such time as the obligations under this Section 5.1 have expired, the Company will not take any action or amend its Charter or By-laws in a manner
            inconsistent with or in derogation of this Agreement.  The Company shall at the next meeting of stockholders of the Company recommend that the Charter be amended to the extent necessary to implement the provisions of this Article 5.  The Company shall take such action as is reasonably necessary to amend its By-laws to implement
            the provisions of this Article 5 and the Charter amendments described in this Section 5.1(h).

      

      

      (i)          Neither the Investors, any affiliate of the Investors, nor any equity holder, director, officer, partner, manager or employee of any of the foregoing, shall have any liability as a result of designating a person for election as a
            director or for any act or omission by such Investor Designee in his or her capacity as a director of the Company, nor shall the Investors have any liability as a result of voting for any such Investor Designee in accordance with the provisions
            of this Agreement.

      

      

      Notwithstanding the foregoing clauses in this Section 5.1,
          in the event (i) the Majority Investor elects, and provides notice of such election to the Company, to no longer pursue the Tender Offer or Merger described in the Merger Agreement for any reason or (ii) the Majority Investor ceases to hold at
          least 80% of the initial Principal amount of the Note purchased by the Majority Investor on the Closing Date, either in the form of Notes or Note Shares, this Section 5.1
          shall not be effective.

      

      

      5.2          Financial Statements, Certificates and Information.  The Company will deliver to the Investors:

      

      

      (a)          Annual Financials.  As soon as practicable, but in any event no later than ninety (90) days after the end of each fiscal year, (i) the consolidated balance
            sheet of the Company and its Subsidiaries, as of the end of such fiscal year, and the related consolidated statements of income or operations, cash flows, and shareholders' equity for such fiscal year, each setting forth in comparative form the
            figures for the previous fiscal year and all such consolidated financial statements to be in reasonable detail, prepared in accordance with GAAP consistently applied and such consolidated financial statements to be audited and accompanied by a
            report and opinion prepared in accordance with generally accepted auditing standards by independent certified public accountants reasonably satisfactory to the Investors and certified without qualification and without expression of uncertainty
            as to the ability of the Company and its Subsidiaries to continue as going concerns, and (ii) a certificate duly executed by a Financial Officer of the Company, which, among other things, (A) attaches and certifies to the foregoing consolidated
            financial statements, accountants statements, management letters and a management discussion and analysis prepared in connection with such financial statements, (B) certifies that the information contained in such consolidating financial
            statements fairly presents in all material respects the financial condition of the Company and its Subsidiaries on the dates indicated therein, and (C) states that such Financial Officer has reviewed the Transaction Documents and has no
            knowledge of any Event of Default during such fiscal year, or if such Financial Officer has such knowledge, specifying each Event of Default and the nature thereof;

      

      

      
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      (b)          Quarterly Financials.  As soon as practicable, but in any event no later than forty-five (45) days after the end of each fiscal quarter, (i) the unaudited
            quarterly consolidated and consolidating (to the extent specified below) financial statements of the Company and its Subsidiaries for such fiscal quarter, including the consolidated and consolidating balance sheet of the Company and its
            Subsidiaries, as of the end of such fiscal quarter, the related consolidated and consolidating statement of income or operations, and the related consolidated statement of cash flows for such fiscal quarter and for the portion of the fiscal
            year then ended, each such financial statements setting forth in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, each, prepared in
            accordance with GAAP consistently applied and (ii) a certificate duly executed by a Financial Officer of the Company, which, among other things, (A) attaches and certifies to the foregoing financial statements, (B) certifies that the
            information contained in such financial statements fairly presents in all material respects the financial condition of the Company and its Subsidiaries on the date thereof (subject to year-end adjustments and the absence of footnotes), (C) sets
            forth in comparative form the results for and through such fiscal quarter with the most recent projections delivered to the Investors pursuant to Section 5.2(e), (D) sets forth (if applicable) reconciliations to reflect changes in GAAP since the date of the last audited financial statements of the Company and its Subsidiaries, and (E) states
            that such Financial Officer has reviewed the Transaction Documents and has no knowledge of any Event of Default during such fiscal quarter, or if such Financial Officer has such knowledge, specifying each Event of Default and the nature
            thereof;

      

      

      (c)          Monthly Financials.  As soon as practicable, but in any event no later than thirty (30) days after the end of each fiscal month (excluding the last fiscal
            month of each fiscal year, which shall be provided no later than forty-five (45) days after the end of such fiscal quarter), (i) the unaudited monthly consolidated and consolidating (to the extent specified below) financial statements of the
            Company and its Subsidiaries for such fiscal month, including the consolidated and consolidating balance sheet of the Company and its Subsidiaries, as at the end of such fiscal month, the related consolidated and consolidating statement of
            income or operations, and the related consolidated statement of cash flows for such fiscal month and for the portion of the fiscal year then ended, each such financial statements setting forth in comparative form the figures for the
            corresponding fiscal month of the previous fiscal year and the corresponding portion of the previous fiscal year, each, prepared in accordance with GAAP consistently applied (subject to year-end adjustments and the absence of footnotes) and
            (ii) a certificate of an authorized officer of the Company, certifying that as of the end of such fiscal month, each of the representations and warranties made by the Company and its Subsidiaries in the Security Agreement is true and correct in
            all material respects, except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty is true and correct in all respects as of such earlier date (provided that any
            representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates), it being
            agreed that all representations and warranties as to schedules to the Security Agreement shall be deemed to be made as of the date of the most recent version of such schedule delivered to the Investors pursuant to this Agreement;

      

      

      
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      (d)          Management Discussion and Analysis.  As soon as practicable, but in any event no later than forty-five (45) days after the end of (i) each of the first three
            fiscal quarters of each fiscal year, a management discussion and analysis prepared in connection with the financial statements of the Company and its Subsidiaries for such fiscal quarter and (ii) the last fiscal quarter of each fiscal year, a
            preliminary report regarding operations and performance for such fiscal quarter;

      

      

      (e)          Annual Business Plan and Projections.  By not later than the last day of each fiscal year, a draft of an annual business plan and projections for the Company
            and its Subsidiaries for the following fiscal year on a monthly basis (such projections to include consolidated and consolidating balance sheets, statements of cash flows, statements of income or operations of the Company and its Subsidiaries,
            in each case prepared on a month-by-month basis and such other matters reasonably requested by the Investors) and by no later than sixty (60) days after the end of each fiscal year, a final copy of such annual business plan and projections,
            reflecting the same scope of information and level of detail contained in the draft business plan and projections previously delivered, approved by the Board of Directors;

      

      

      (f)          Audit Reports.  Promptly upon receipt thereof, copies of any detailed audit reports, regulatory audits, financial control reports, management letters or
            recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Company and its Subsidiaries by independent accountants or internal auditors in connection with any audit of any of them;

      

      

      (g)          Notices from Governmental Authorities; Litigation.  Immediately, and in any event within five (5) Business Days after receipt by the Company or any
            Subsidiary, copies of (i) each material written notice or other correspondence received from any governmental authority concerning any investigation or possible investigation or other inquiry by such agency and (ii) each notice of commencement
            of any material litigation affecting the Company or any Subsidiary or to which the Company or any of its Subsidiaries is or becomes a party;

      

      

      (h)          Insurance.  Promptly following the reasonable request of the Investors, a report summarizing the insurance coverage in effect for the Company and its
            Subsidiaries and promptly following the modification, renewal, replacement of any insurance policy of the Company or its Subsidiaries, updated insurance certificates and endorsements evidencing such coverage;

      

      

      
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      (i)          Updated Schedules.  As soon as practicable, but in any event no later than ten (10) days following the end of each fiscal quarter, updated schedules to the
            Security Agreement in substantially the same form as the most recent schedules of the same delivered to the Investors to the Investors’ reasonable satisfaction; and

      

      

      (j)          Investor Calls.  Upon the reasonable request of the Majority Investor, host conference calls with the Investors to review the financial condition and results
            of operations of the Company and its Subsidiaries, subject to confidentiality in accordance with Regulation FD.

      

      

      (k)          Other Financial Information.  Promptly following a request therefor, from time to time such other financial data and information as any Significant Investor
            may reasonably request.  In addition to the foregoing, the Investors, or representatives thereof, shall have the right, upon advance notice and during normal business hours, to inspect the books and records of the Company and its Subsidiaries.

      Documents required to be delivered pursuant to the terms of this Agreement (to the extent any such documents are included in materials
          otherwise filed with the Commission) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which the Company posts such documents, or provides a link thereto, on the Company’s website on the
          Internet at the Company’s website address; provided, however, the Company shall promptly
          notify the Investors in writing of the posting of any such documents.  The Investors further agree that the Company’s provision of such documents on the Commission’s Electronic Data Gathering and Retrieval (EDGAR) website shall be deemed
          “delivery” of said documents for purposes of this Section 5.2.

      

      

      5.3          Preemptive Rights.

      

      

      (a)          In the event of any offering of New Securities (as defined below) by the Company, each Investor, commencing on the earlier of (1) the termination of the Merger Agreement and (2) the date that is 180 days after the Closing Date and for
            so long as the Notes or any Note Shares remain outstanding, shall have the right to purchase a percentage of the New Securities being offered that is equal to the percentage of the outstanding Common Stock of the Company owned by such Investor
            on an as-converted basis (treating for this purpose as outstanding all shares of Common Stock issuable upon the full conversion of the Notes then outstanding); provided, however, that this right shall not
            apply to (i) equity compensation grants to employees, consultants, or directors pursuant to plans or other arrangements approved by the Board of Directors of the Company, (ii) securities issued upon the conversion or exercise of any convertible
            or exercisable securities that are outstanding as of the date hereof on the terms in effect on such date, (iii) the issuance of securities in connection with any underwritten public offering (excluding, for the avoidance of doubt, registered
            direct offerings), (iv) securities issued upon any split, dividend, combination or other similar event with respect to the capital stock of the Company, (v) securities subsequently issued upon conversion, exercise or exchange of those
            securities that have been issued in compliance with, or on issuance were exempt from the preemptive rights provided for in this Section 5.3, and (vi) shares of Common Stock or convertible securities or rights issued or issuable in connection with mergers, acquisitions, strategic transactions, commercial relationships and
            debt financings approved by the Board of Directors of the Company, including the Investor Designee; provided, further, that in connection with any underwritten public offering, the Company
            will use reasonable best efforts to allow each Investor to purchase a sufficient amount of such offered securities so as to maintain as closely as possible such Investor’s proportionate interest in the Company on an as-converted basis as
            described above (disregarding any allocations of such offered securities that may be made by the underwriters to Affiliates of any Investor in the ordinary course investment business of such Affiliates).  An Investor shall be deemed to have
            waived its rights under this Section 5.3 if such Investor shall have not delivered to the
            Company its written election to purchase such securities within ten (10) Business Days of receipt of the Company’s notice of such offering describing the material terms thereof (such ten (10) Business Day period, the “Offer Period”).  If the Investors fail to exercise their purchase right pursuant to this Section 5.3, then the Company shall have the right, until the expiration of one hundred eighty (180) days
            commencing upon the expiration of the Offer Period, to issue such New Securities to one (1) or more third parties on terms no more favorable to the purchasers thereof than the terms specified in the Company’s notice of such offering to the
            Investors, after which the terms of this Section 5.3 shall again apply to the Company’s offering
            of such New Securities.

      

      

      
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      (b)          For purposes of this Agreement, the term “New Securities” shall mean
            securities, contract rights, notes, obligations, options, warrants, or other rights that are directly or indirectly exercisable for, convertible into, or exchangeable for shares of Common Stock or other capital or voting stock of the Company.

      

      

      5.4          Use of Proceeds.  The Company will use the net proceeds from the sale of the Notes to (a) repay in full the Existing Indebtedness and pay related transaction
            costs and (b) fund working capital for general corporate purposes.

      

      

      5.5          Corporate Existence.  Subject to Section 6.10, the Company will do or cause to be
            done all things necessary to preserve and keep in full force and effect its corporate existence, rights and franchises and the corporate existence, rights and franchises of its Subsidiaries; provided that the Company shall not be required to
            preserve any such Subsidiary’s corporate existence, rights or franchises if the Company shall determine that the preservation thereof is no longer desirable in the conduct of such Subsidiary’s business and that the loss thereof is not
            disadvantageous in any material respect to the Investors.

      

      

      5.6          Reports by the Company.  The Company covenants to make available to the Investors, within 15 days after the Company is required to file the same with the
            Commission, copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may
            be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act, or if the Company is not required to file information, documents, or reports pursuant to either of such sections, then to deliver to the
            Investors, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents, and reports which may be required pursuant to Section 13 of the Exchange Act; or,
            in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations.  At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
            request of the Investors, the Company will promptly furnish or cause to be furnished to the Investors, copies of the information required to be delivered to the Investors pursuant to Rule 144A(d)(4) under the Securities Act (or any successor
            provision thereto) in order to permit compliance with Rule 144A in connection with resales by holders of securities such as the Notes or the shares of Common Stock issuable thereunder.  The Company will pay the expenses of printing and
            distributing to the Investors all such documents.  Delivery of such reports, information and documents to the Investors is for informational purposes only and the Investors’ receipt of such shall not constitute constructive notice of any
            information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder.  The Investors acknowledge that the Company’s provision of such documents on the
            Commission’s Electronic Data Gathering and Retrieval (EDGAR) website shall be deemed “delivery” of said documents for purposes of this Section 5.6.

      

      

      
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      5.7          Reservation of Shares.  Subject to Section 5.16 of the Disclosure Letter, the Company shall take all action necessary to at all times have authorized, and
            reserved for the purpose of issuance, not less than 120% of the number of shares of Common Stock and Preferred Stock issuable upon full conversion of the Notes (the “Required Reserve Amount”).  If at any time while any Note remains outstanding the Company does not have a sufficient number of authorized and unreserved
            shares of Common Stock or Preferred Stock, as applicable, to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall take all action necessary to increase the Company’s authorized shares of Common Stock or Preferred Stock, as applicable, to an amount sufficient to allow the
            Company to reserve the Required Reserve Amount.  Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than thirty (30) days
            after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock or Preferred Stock, as applicable.  In connection
            with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its reasonable efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock or Preferred Stock, as
            applicable, and to cause its board of directors to recommend to the stockholders that they approve such proposal.

      

      

      5.8          Registration Rights.  The Investors shall have the registration rights set forth in the Registration Rights Agreement and the Company shall comply in all
            respects with all of its obligations thereunder.

      

      

      5.9          Insurance.  The Company and its Subsidiaries shall maintain, with financially sound, reputable and solvent companies, insurance policies reasonably acceptable
            to the Investors (a) insuring their assets against loss by fire, theft and other risks and casualties as are customarily insured against by companies engaged in the same or a similar business, (b) insuring them against liability for personal
            injury and property damages relating to their assets, such policies to be in such amounts and covering such risks as are usually insured against by companies engaged in the same or a similar business, and insuring such other matters as may from
            time to time be requested by the Investors, and (c) insuring them against business interruption in such amounts as the Investors shall deem appropriate in the Investors’ reasonable discretion.  All general liability insurance policies shall be
            endorsed in favor of the Investors as additional insureds, and all casualty policies shall be endorsed in favor of the Investors as loss payees.  The Company and its Subsidiaries shall provide copies of all such insurance policies (or evidence
            thereof acceptable to the Investor) to the Investors within ten (10) Business Days following the Investors’ request for the same.  The Company and its Subsidiaries shall (i) deliver all such policies to the Investors promptly upon the Company’s
            or any such Subsidiary’s receipt thereof, (ii) pay, or cause to be paid, all premiums for such insurance on or before the date upon which such premiums become due, (iii) upon the Investors’ request furnish to the Investors satisfactory proof of
            the timely making of such payments, (iv) deliver all renewal policies to the Investors promptly upon receipt thereof, and (v) use its commercially reasonable efforts to cause such policies to require the insurer to give notice to the Investors
            of termination of any such policy at least thirty (30) days before such termination is to be effective.  If the Company or any of its Subsidiaries fails to provide and pay for any such insurance, the Investors may, at their option, but shall
            not be required to, pay the same and charge the Company or the applicable Subsidiary therefor.

      

      

      
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      5.10          Listing.  The Company shall promptly secure the listing of all shares of the Common Stock that are Registrable Securities (as defined in the Registration
            Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance) and shall maintain such listing of all such Registrable
            Securities from time to time issuable under the terms of the Transaction Documents.  The Company shall maintain the Common Stock’s authorization for quotation on the OTC Market Group’s OTCQB marketplace at any time during which its Common Stock
            is not listed on a registered national securities exchange.  Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Nasdaq
            Capital Market, except in connection with a transfer to a registered national securities exchange or in accordance with an Alternative Transaction (as defined in the Note).  The Company shall pay all fees and expenses in connection with
            satisfying its obligations under this Section 5.10.

      

      

      5.11          Compliance With Laws, Contracts and Governing Documents.  The Company and its Subsidiaries shall at all times be in compliance in all material respects with
            (i) the applicable laws wherever its business is located, including, without limitation, the Foreign Corrupt Practices Act; the PATRIOT Act, and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations; and the laws,
            regulations and Executive Orders and sanctions programs administered by the OFAC, including, without limitation, the Anti-Money Laundering/OFAC Laws, (ii) the provisions of its Governing Documents and (ii) all material agreements and
            instruments by which it or any of its properties may be bound.

      

      

      5.12          State Securities Laws (“Blue Sky”).  The Notes are being offered and sold for investment only pursuant to the exemption from the registration requirements of
            the Securities Act of 1933, as amended (the “Securities Act”) provided by Section 4(a)(2) thereof. The Company agrees to consult with and accept the reasonable input from the Investors regarding whether to rely solely on Section 4(a)(2) of the
            Securities Act or to rely on Rule 506 of Regulation D promulgated under Section 4(a)(2) and file a Form D with the SEC. In either case, the Company shall, on or before the Closing Date, take such actions in order to make certain that the offer
            and sale of the Notes will not result in a violation of the Securities Act or of the securities laws of any state or of any other jurisdiction, and shall provide evidence of any such action (including, without limitation, providing evidence of
            qualification, filings, or availability of self-executing exemptions) to the Investors on or before the Closing Date.

      

      

      
        17

        
          

      

      5.13          Acknowledgement and Undertaking.  The Company agrees and acknowledges that the disposition of the Notes upon exercise or the conversion thereof, any
            acquisition of Common Stock and/or Preferred Stock upon exercise or conversion of the Notes, any deemed acquisition or disposition in connection therewith, and all transactions with the Company related thereto are intended to be exempt from
            Section 16(b) of the Exchange Act pursuant to one or more rules promulgated thereunder (including Rule 16b-3 under the Exchange Act), applicable law and the Commission’s releases and interpretations, and the Company will, and will cause its
            successors and assigns to, from time to time as and when requested by any Investor, adopt appropriate resolutions of the Board of the Directors or a committee thereof composed solely of two or more “non-employee directors” as defined in Rule
            16b-3 of the Exchange Act, execute and deliver or cause to be executed and delivered, to the extent it may lawfully do so, all such documents and instruments (including any such resolutions of the Board of Directors or such committee thereof)
            and take, or cause to be taken, to the extent it may lawfully do so, all such further actions as any Investor may reasonably deem necessary and desirable, in each case to facilitate and effect any such exemption.

      

      

      5.14          Notices.

      

      

      (a)          The Company will promptly (but in any event within two (2) Business Days after obtaining knowledge thereof) notify the Investors in writing of the occurrence of any Event of Default.

      

      

      (b)          The Company shall promptly (but in any event within three (3) Business Days) disclose in writing to the Investors of any matter known to them that has resulted in a Material Adverse Change.

      

      

      (c)          The Company shall promptly disclose in writing to the Investors, on a quarterly basis, notice of any material change in accounting policies or financial reporting practices by the Company or any Subsidiary.

      

      

      (d)          The Company will give notice to the Investors in writing within three (3) Business Days of receipt of any written notice of proposed assessment or written notice of the commencement of any material audit or investigation by any
            governmental authority for unpaid taxes of the Company or any Subsidiary that are due and payable, any commencement of any litigation, proceedings or investigation affecting the Company or any Subsidiary or to which the Company or any of its
            Subsidiaries is or becomes a party involving any claim against the Company or any Subsidiary that has resulted in or would reasonably be expected to result in (i) liabilities of more than $750,000 that are not covered by insurance policies
            maintained in accordance with Section 5.9 against the Company or any Subsidiary, (ii) a Material
            Adverse Effect or (iii) any commencement of (A) a criminal investigation, (B) criminal indictment or (C) a criminal conviction or penalty, in each case, with respect to a felony committed or allegedly committed by the Company, any Subsidiary or
            any member of Senior Management of the Company or such Subsidiary.  The Company will give notice to the Investors in writing, in form and detail reasonably satisfactory to the Investors, within five (5) Business Days after obtaining knowledge
            of any judgment not covered by insurance, final or otherwise, against the Company or any Subsidiary in an amount in excess of $750,000 or of the entry of any non-monetary judgment that would reasonably be expected to have a Material Adverse
            Effect.

      

      

      
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      Notices required to be delivered pursuant to the terms of this Section (to the extent the information to be contained in any such notices
          is included in materials otherwise filed with the Commission) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which the Company posts such materials, or provides a link thereto, on the
          Company’s website on the Internet at the Company’ website address; provided, however, the
          Company shall promptly notify the Investors in writing of the posting of any such materials.

      

      

      5.15          Further Assurances.

       

        

      (a)          Upon the formation or acquisition of any new direct or indirect Subsidiary after the Closing Date (other than any Excluded Subsidiary) by the Company or any Subsidiary of the Company, then the Company shall (i) notify the Investors in
            writing either prior to or no later than the date of formation or acquisition of such Subsidiary of the formation or acquisition of such Subsidiary, (ii) within fifteen (15) Business Days of formation or acquisition, cause such Subsidiary to
            join the Guaranty as a Guarantor (as defined therein) and to join the Security Agreement as a Grantor (as defined therein), and take each other action (including, without limitation, the filing of UCC financing statements, the giving of
            notices, the filing of supplements to the Copyright Security Agreement, Trademark Security Agreement and Patent Security Agreement, as applicable, and delivering Pledged Collateral (as defined in the Security Agreement)) as shall be necessary
            or appropriate to establish, create, preserve, protect and perfect a first priority Lien (subject to Permitted Encumbrances) in favor of the Investors on substantially all assets, both real and personal, in which such Subsidiary has or
            thereafter may acquire any interest (other than Excluded Assets (as defined in the Security Agreement) and subject to limitations set forth in the Transaction Documents), as contemplated by the Security Agreement, and (iii) to delivery such
            proof of corporate (or comparable) action, incumbency of officers, opinions of counsel and other documents as Investors shall have reasonably required or requested.

      

      

      (b)          The Company and each Subsidiary will, at its own cost and expense, promptly and duly take, execute, acknowledge and deliver all such further acts, documents and assurances as may from time to time be necessary or as Investors may from
            time to time reasonably request in order to carry out the intent and purposes of the Transaction Documents and the transactions contemplated thereby, including all such actions to establish, create, preserve, protect and perfect a first
            priority Lien (subject only to Permitted Liens) in favor of the Investors on the Collateral (including Collateral acquired after the date hereof), whether now owned or hereafter acquired (other than Excluded Assets (as defined in the Security
            Agreement) and subject to limitations set forth in the Transaction Documents).

      

      

      5.16          Post-Closing Obligations.  The Company and each Subsidiary agrees to comply with each of the conditions contained in Section 5.16 of the Disclosure Letter on
            or before the time periods prescribed therein.

      

      

      5.17          Repurchase, Exchange, Etc.  In the event that the Company solicits from, or proposes to enter into with, any Investor a repurchase, exchange, redemption or
            other similar transaction with respect to such Investor’s Notes (including any Note Shares to the extent such Investor has converted any portion of its Notes to Note Shares pursuant to Section 3 of the Notes), the Company shall make an offer to
            each other Investor to repurchase, exchange, redeem or otherwise transact with respect to each such other Investors’ Notes (and/or Note Shares, if applicable) on the same terms and conditions.

      

      

      
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      ARTICLE 6

      

      

      NEGATIVE COVENANTS

      

      

      For so long as (i) any Note or Preferred Stock remains outstanding or (ii) any Significant Investor or a transferee or assignee of any
          Significant Investor holds Note Shares comprised of Common Stock representing at least 50% of the Note Shares originally issued upon conversion of any Note, the Company shall comply (and shall cause each of its Subsidiaries to comply) with (1) in
          the event no Notes or Preferred Stock are outstanding, Section 6.1 and Section 6.2, and
          (2) if any Note or Preferred Stock is outstanding, each of the following negative covenants, unless, in any given instance, any such negative covenant is waived in writing in accordance with the terms of Section 7.9:

      

      

      6.1          Amendments.  Neither the Company nor any Subsidiary shall amend, restate, modify, repeal or waive any provision of the Company or such Subsidiary’s Governing
            Documents, except (i) to comply with the terms of Section 5.1 hereto or (ii) amendments,
            modification, supplements or waivers that do not adversely affect the rights or interests of the Investors.

      

      

      6.2          Change in Operations.  The Company and Subsidiaries (taken as a whole) shall not change the nature or strategy of their principal business as it exists on the
            Closing Date.

      

      

      6.3          Investments and Acquisitions.  Neither the Company nor any Subsidiary shall make any Investments in any Person, except for Permitted Investments.

      

      

      6.4          Indebtedness.  Neither the Company nor any Subsidiary shall incur or suffer to exist any Indebtedness, except for Permitted Indebtedness.

      

      

      6.5          Liens and Encumbrances.  Neither the Company nor any Subsidiary shall create, incur, assume or suffer to exist any Lien on its assets or properties now owned
            or hereafter acquired, except for Permitted Encumbrances.

      

      

      6.6          Sale-Leaseback Transactions.  Neither the Company nor any Subsidiary shall enter into directly or indirectly any sale-leaseback transactions with any other
            Person.

      

      

      6.7          Affiliate Transactions.  Neither the Company nor any Subsidiary shall enter into or commit directly or indirectly to any Affiliate Transaction unless (a) each
            Investor has received notice of the proposed Affiliate Transaction at least ten (10) Business Days prior to the proposed consummation of such Affiliate Transaction and (b) such Affiliate Transaction is consummated on arms-length terms as
            established by the reasonable and good faith determination of the Board of Directors; provided that for any Affiliate Transaction with anticipated proceeds or payments to be made or received in any calendar year greater than $3,000,000, a
            determination as to whether the terms of such Affiliate Transaction satisfy this clause (b) shall be supported by a written fairness opinion prepared by an independent third party reasonably acceptable to the Investors; and provided, further,
            that the foregoing restriction shall not apply to (i) transactions solely among the Company and any of the Subsidiaries otherwise permitted hereunder, (ii) any Restricted Payment permitted under Section 6.8; and (iii) transactions between the Company and its Subsidiaries and Digital Matrix Systems, Inc. entered into in the
            ordinary course of business on terms no less favorable to the Company and its Subsidiaries than would have been obtainable on an arm’s-length basis, for services provided to the Company and its Subsidiaries, including credit monitoring and
            analysis.

      

      

      
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      6.8          Restricted Payments.  Neither the Company nor any Subsidiary shall make any Restricted Payment, except for Permitted Restricted Payments.

      

      

      6.9          Disposition of Assets.  Neither the Company nor any Subsidiary shall sell, lease or otherwise transfer any assets used or held for use in the Company’s
            business, other than Permitted Asset Dispositions; provided that this Section 6.9 shall not
            restrict the disposition of assets in connection with an Alternative Transaction.

      

      

      6.10          Mergers, Acquisitions, Dissolutions, Liquidation and Consolidations.  Neither the Company nor any Subsidiary will become a party to any merger, dissolution,
            liquidation or consolidate, except for, so long as no Event of Default is continuing or would result therefrom: (a) the merger or consolidation of a Subsidiary with and into another Subsidiary of the Company; provided that (i) no Subsidiary
            will merge into an Excluded Subsidiary and (ii) in any merger or consolidation involving the Company, the Company shall be the surviving entity; (b) the dissolution or liquidation of Subsidiaries whose assets, if any, have been disposed of,
            transferred or sold in accordance with Section 6.9; provided that this Section 6.10 shall not
            restrict the disposition of assets in connection with an Alternative Transaction and (c) the Merger.

      

      

      6.11          Termination of Named Executive Officers.  The Company shall not terminate any “named executive officers” (as that term defined in Item 402(a)(3) of Regulation
            S K promulgated under the Securities Act) or the controller, in each case of the Company or any Subsidiary, other than for cause.

      

      

      ARTICLE 7

      

      

      MISCELLANEOUS

      

      

      7.1          Definitions.  As used herein, the following terms shall have the respective meanings set forth below or provided for in the section of this Agreement referred
            to below (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

      

      

      (a)          “Affiliate” shall mean any Person directly or indirectly controlling,
            controlled by, or under direct or indirect common control with, another Person or a Subsidiary of such other Person.  A Person shall be deemed to control another Person if the controlling Person owns (on a fully diluted basis) ten percent (10%)
            or more of any class of voting securities of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of
            Indebtedness or equity securities, by contract or otherwise.

      

      

      
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      (b)          “Affiliate Transaction” shall mean any transaction, agreement or arrangement
            between and among (i) the Company or any Subsidiary, on the one hand, and (ii) any Affiliate of the Company or any Subsidiary or any manager, member, shareholder, officer, director or employee of the Company, any Subsidiary or any Affiliate of
            the Company or any Subsidiary, on the other hand; provided, however, that Affiliate Transactions shall not include the transactions effected pursuant to any Transaction Document.

      

      

      (c)          “Alternative Transaction” means: any (i) direct or indirect
          acquisition of assets of the Company or any of its Subsidiaries (including any voting equity interests of the Company’s subsidiaries) equal to 10% or more of the fair market value of the Company’s consolidated assets or to which 10% or more of
          the Company’s net revenues or net income on a consolidated basis are attributable, (ii) direct or indirect acquisition of 10% or more of any class of capital stock, other equity securities or voting power of the Company (including, for the
          avoidance of doubt, phantom equity and quasi-equity), (iii) tender offer or exchange offer that if consummated would result in any person beneficially owning 10% or more of any class of capital stock, other equity securities or voting power of
          the Company (including, for the avoidance of doubt, phantom equity and quasi-equity), (iv) merger, consolidation, other business combination or similar transaction involving the Company or any of its subsidiaries, pursuant to which such person
          would own 10% or more of the consolidated assets, net revenues or net income of the Company and its subsidiaries, taken as a whole, (v) debt financing, including debt that is convertible into equity, in excess of $10,000,000 or convertible into
          more than 20% of the Company’s equity, or (vi) liquidation or dissolution (or the adoption of a plan of liquidation or dissolution) of the Company or the declaration or payment of an extraordinary dividend (whether in cash or other property) by
          the Company; in all cases of clauses (i)-(v) where such transaction is to be entered into with any person or group of persons other than Majority Investor or its Affiliates.

      

      

      (d)          “Automatic Conversion Time” means, if any, the earlier of (i) immediately
            prior to the Effective Time (as defined in the Merger Agreement) and (ii) immediately prior to (but subject to) the consummation of a Superior Transaction.

      

      

      (e)          “Capital Lease” means a lease with respect to which the lessee is required
            concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

      

      

      (f)          “Capital Lease Obligation” means, with respect to any Person, the amount of
            the obligation of such Person as the lessee under a Capital Lease which would, in accordance with GAAP, appear as a liability on the balance sheet of such Person

      

      

      (g)           “CFC” means a “controlled foreign corporation” as defined in Section 957 of
            the Code.

      

      

      (h)          “CFC Debt” means indebtedness (and any amounts treated as indebtedness for
            U.S. federal income tax purposes) or receivables owed by, or treated for U.S. federal income tax purposes as owed by, a CFC.

      

      

      
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      (i)          “CFC Holdco” means a Subsidiary (i) substantially all of the direct or
            indirect assets of which consist of (x) equity interests of one or more CFCs and (y) CFC Debt and/or other assets incidental to the purpose of acting as a holding company of one or more CFCs (or are treated as consisting of such assets for U.S.
            federal income tax purposes), and (ii) that does not conduct any business or activity other than ownership of such equity interests, CFC Debt or incidental assets (and activities incidental thereto) and does not itself incur, and is not
            otherwise liable for, any indebtedness or other liabilities (other than liabilities incidental to the ownership of equity interests, CFC Debt or incidental assets (including, for the avoidance of doubt, tax liabilities attributable to such
            ownership), and franchise fees or similar taxes and fees and expenses incurred to maintain its existence and other de minimis liabilities); provided, further, that a CFC Holdco shall be a “CFC Holdco” only for so long as it meets each of
            requirements of the foregoing definition.

      

      

      (j)          “Charges” means all federal, state, county, city, municipal, local, foreign
            or other governmental taxes, levies, assessments, charges or claims, in each case then due and payable, upon or relating to (a) any property of the Company or any of its Subsidiaries, (b) the Notes, (c) the Company’s or any of its Subsidiaries'
            employees, payroll, income or gross receipts, (d) the Company’s or any of its Subsidiaries' ownership or use of any of its property, or (e) any other aspect of the Company’s or any of its Subsidiaries' business.

      

      

      (k)          “Collateral” shall have the meaning set forth in the Security Agreement.

      

      

      (l)          “Excluded Subsidiary” means (i) any Foreign Subsidiary that is a CFC, (ii) a
            CFC Holdco and (iii) a direct or indirect Subsidiary of a CFC.  For the avoidance of doubt, no Excluded Subsidiary shall be required to guaranty any Notes or any other obligations under the Transaction Documents.

      

      

      (m)          “Existing Indebtedness” means Indebtedness under the Credit Agreement, dated
            as of April 20, 2017 (as amended, restated, supplemented and modified as of the Closing Date), among the Company, the other credit parties party thereto, the lenders party thereto, and Peak6 Investments, L.P. as administrative agent.

      

      

      (n)          “Financial Officer” means a chief financial officer, chief accounting
            officer, treasurer, controller or assistant controller or other officer reasonable acceptable to Investors.

      

      

      (o)          “Foreign Subsidiary” means a Subsidiary that is not organized, incorporated
            or otherwise formed under the laws of the United States or any state thereof.

      

      

      (p)          “Governing Documents” shall mean (i) the certificate of incorporation,
            certificate of formation, or similar charter document and (ii) the bylaws, operating agreement, or similar organizational document of the Company or its Subsidiaries, as applicable, as amended to date.

      

      

      (q)          “Information Statement” means the information statement (as defined in Rule
            14c-1 under the Exchange Act), as amended or supplemented from time to time, relating to (i) the Shareholder Approval by written consent delivered concurrently with the execution and delivery of this Agreement and (ii) the ability of the
            Investors to exercise Preemptive Rights pursuant to Section 5.3.

      

      

      
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      (r)          “Investment” shall mean as to any Person, any direct or indirect acquisition
            or investment by such Person, whether by means of (a) acquiring or purchasing (whether for cash, property, services, securities or otherwise) or holding equity interests or debt or other securities of another Person, including any partnership
            or joint venture interest in such other Person, (b) a loan, advance or capital contribution to, guarantee or assumption of Indebtedness of, another Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions
            and including by way of licensing) of (i) all or substantially all of the property and assets or business of another Person, (ii) assets constituting a business unit, line of business or division of another Person, (iii) any real property
            leasehold interest requiring annual payments in excess of $1,500,000 or which leasehold interest is integral to the operation of the business of such Person, (iv) intellectual property of another Person (other than “off the shelf” products) for
            aggregate consideration in excess of $750,000 in any fiscal year for all such purchases and acquisitions, (v) any other assets of another Person (not including intellectual property) for aggregate consideration in excess of $2,000,000 in any
            fiscal year for all such purchases and acquisitions (other than, in the case of this clause (v), acquisitions of assets in the ordinary course of business).  The amount of any Investment shall be the original cost of such Investment plus the
            cost of all additions thereto, less the amount of cash and cash equivalents returned or repaid as a result of dividends, distributions, principal repayments, dispositions or liquidations of all or a portion of such Investment, without any
            adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect thereto.

      

      

      (s)          “knowledge” shall mean, and shall for all purposes be construed as, the
            collective knowledge of the directors and officers of the Company after reasonable investigation.

      

      

      (t)          “Lien” shall mean any mortgage, deed of trust, pledge, hypothecation,
            assignment, priority, security interest, lien (statutory or otherwise), claim or encumbrance, or preference, priority or other security arrangement held or asserted in respect of any asset, contractual deposit arrangement, whether imposed by
            statute or otherwise, or charge of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, any lease in the nature thereof, and filing of or agreement to give any financing
            statement under the Uniform Commercial Code of any jurisdiction) and any contingent or other agreement to provide any of the foregoing or any other type of preferential arrangement for the purpose, or having the effect of, protecting a creditor
            against loss or securing the payment or performance of any obligation.

      

      

      (u)          “Majority Investor” shall mean Parent (as identified in the Merger
            Agreement) and its successors and assigns.

      

      

      (v)          “Material Adverse Effect” shall have the meaning set forth in the Merger
            Agreement.

      

      

      (w)          “Merger” shall have the meaning set forth in the Merger Agreement.

      

      

      
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      (x)          “Merger Agreement” shall mean that certain Agreement and Plan of Merger,
            dated as of October 31, 2018, among WC SACD One Parent, Inc., a Delaware corporation, WC SACD One Merger Sub, Inc., a Delaware corporation, and the Company.

      

      

      (y)          “Obligations” shall mean all debts, liabilities, obligations, covenants and
            duties of the Company and its Subsidiaries arising out of the Transaction Documents or otherwise with respect to or arising out of or relating to any Note, whether direct or indirect, absolute or contingent, due or to be come due, now existing
            or hereafter arising.

      

      

      (z)          “Optional Trigger Date” shall mean the earlier of (i) the closing of an
            Alternative Transaction, (ii) the date that is six (6) months after the Closing Date (April 30, 2019), and (iii) a determination by the Company’s Board of Directors that the Company is no longer pursuing a process to sell the Company.

      

      

      (aa)          “Permitted Asset Dispositions” means:

      

      

      (i)          dispositions of assets among the Company and its Subsidiaries;

      

      

      (ii)         dispositions of obsolete or worn out equipment or fixtures no longer useful in the business, whether now owned or hereafter acquired, in the ordinary course of business;

      

      

      (iii)        non-exclusive licenses of intellectual property in the ordinary course of business (other than to the extent such licenses would restrict the ability of the Company, the Subsidiaries or the Investors to sell or
            license the subject intellectual property or impair the security interests granted to the Investors);

      

      

      (iv)         dispositions of inventory in the ordinary course of business;

      

      

      (v)          dispositions of equipment or real property to the extent (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds are reasonably promptly applied
            to the purchase price of such replacement property or applied in accordance to Section 4(b)(iv) of the Notes;

      

      

      (vi)         to the extent constituting a disposition, dispositions of damaged property subject to casualty or condemnation events related thereto upon receipt of all applicable insurance proceeds in respect thereof;

      

      

      (vii)        dispositions constituting Permitted Investments; and

      

      

      (viii)       so long as no Event of Default is continuing or would result therefrom, sales of equipment now owned or hereafter acquired by the Company or any Subsidiary in an aggregate amount not to exceed $750,000 per year.

      

      

      (bb)          “Permitted Encumbrances” shall mean:

      

      

      (i)          Liens of landlords, carriers, warehousemen, repairmen, mechanics and materialmen and other like Liens created in the ordinary course of business, for amounts which are not yet due or which are being contested in
            good faith by appropriate proceedings and as to which adequate reserves or other appropriate provisions are being maintained in accordance with GAAP;

      

      

      
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      (ii)          Liens, pledges or deposits made in connection with worker's compensation, employee benefit plans, unemployment or other insurance, old age pensions, or other Social Security benefits, and good faith deposits in
            connection with tenders, contracts, bids, statutory obligations or leases to which it is a party or deposits to secure, or in lieu of, surety, penalty or appeal bonds, performance bonds, letters of credit and other similar obligations or
            arising as a result of progress payments under government contracts or contracts with public utilities, in each case, in the ordinary course of business;

      

      

      (iii)         minor defects, irregularities, encumbrances, easements, zoning restrictions, rights of way, and clouds on title as normally exist with respect to similar properties which do not materially interfere with the
            present or proposed use of the Company or Subsidiary’s real property;

      

      

      (iv)          Liens created by conditional sale or other title retention agreements (including capitalized leases and pursuant to sale-leaseback transactions permitted by this Agreement) or in connection with purchase money
            Indebtedness with respect to equipment and fixed assets acquired by the Company or any Subsidiary, involving the incurrence of an aggregate amount of purchase money Indebtedness and obligations with respect to conditional sale or title
            retention agreements of not more than $3,000,000 outstanding at any one time for all such Liens (provided that such Liens attach only to the assets subject to such purchase money debt and such Indebtedness is incurred within one hundred twenty
            (120) days following such purchase and does not exceed 100% of the purchase price of the subject assets);

      

      

      (v)          Liens securing judgments for the payment of money not constituting an Event of Default so long as the enforcement of such Lien has been effectively stayed and so long as such Lien is junior to the Lien in favor
            of the Investors;

      

      

      (vi)         Liens in favor of a banking institution arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in the banking industry to secure
            usual and customary fees, returned items and other like exposure with respect to such account relating to deposit accounts maintained by the Company or any Subsidiary with such banking institution;

      

      

      (vii)        Liens in the form of cash collateralization to secure reimbursement obligations with respect to automated clearing house treasury management arrangements, credit cards, credit card processing services, debit
            cards, stored value cards, and purchase cards obtained in the ordinary course of business and otherwise permitted hereunder; provided that the aggregate amount secured by such Liens shall not exceed $1,000,000;

      

      

      (viii)       Liens for taxes not yet due and payable or which are being contested in good faith by appropriate proceedings and the Company or such Subsidiary shall have set aside on its books adequate reserves in accordance
            with GAAP with respect thereto;

      

      

      
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      (ix)         Liens on unearned insurance premiums securing the payment of financed insurance premiums so long as such financed amounts are promptly paid; provided that such Liens extend only to such insurance premiums or
            loss payment from any insurance provider in an amount not in excess of any unpaid financed premiums; and

      

      

      (x)          to the extent constituting a Lien, non-exclusive licenses of intellectual property (other than to the extent such licenses would restrict the ability of the Company, and Subsidiary, or an Investor to sell or
            license the subject intellectual property or impair the security interests granted to the Investors) in the ordinary course of business not interfering with the  business of the Company or any Subsidiary.

      

      

      (cc)          “Permitted Indebtedness” shall mean:

      

      

      (i)          the Obligations;

      

      

      (ii)         Indebtedness existing as of the Closing Date and set forth on Section 6.4 of the Disclosure Letter;

      

      

      (iii)        purchase money indebtedness (including, but not limited to, mortgages, credit card indebtedness and automobile loans) of the Company or its Subsidiaries or Capital Lease Obligations not to exceed the amount of
            $2,000,000 in the aggregate;

      

      

      (iv)         Indebtedness in respect of swap contracts entered into not for speculative purposes in the ordinary course of business;

      

      

      (v)          Indebtedness consisting of intercompany loans and advances described in clause (iii) of the definition of “Permitted Investment”;

      

      

      (vi)         guarantees of Indebtedness permitted under this definition of “Permitted Indebtedness”;

      

      

      (vii)        Indebtedness consisting of contingent liabilities under surety bonds, performance bonds and similar instruments incurred in the ordinary course of business;

      

      

      (viii)        unsecured Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course of
            business; provided that such indebtedness is (A) extinguished within three (3) Business Days of the incurrence thereof, and (B) incurred in the ordinary course of business in respect of pooled accounts and similar arrangements, in each case, in
            connection with cash management and deposit accounts in the ordinary course of business; provided further that any Indebtedness arising under this clause shall not exceed $100,000;

      

      

      
        27

        
          

      

      

      

      (ix)         Indebtedness incurred in the ordinary course of business in respect of credit cards, credit card processing services, debit cards, stored value cards, purchase cards and automated clearing house arrangements;

      

      

      (x)          to the extent constituting Indebtedness, obligations in respect of agreements for the deferred payment of premiums or to finance the deferred payment of premiums owing to the Company or any Subsidiary under any
            insurance policy entered into in the ordinary course of business that are either unsecured or secured by a Lien permitted under clause (ix) of the definition of “Permitted Encumbrances”; and

      

      

      (xi)         unsecured Indebtedness in an aggregate principal amount not to exceed $500,000.

      

      

      (dd)          “Permitted Investment” shall mean:

      

      

      (i)          Investments consisting of extensions of credit in the nature of accounts receivable arising from the grant of trade credit in the ordinary course of business or comprised of notes payable, or stock or other
            securities issued by account debtors to the Company and its Subsidiaries pursuant to negotiated agreements with respect to settlement of such account debtor's accounts in the ordinary course of business;

      

      

      (ii)          capital stock (A) issued and outstanding on the Closing Date in Subsidiaries, (B) issued following the Closing Date by a Person who becomes a Subsidiary promptly following such issuance or capital contribution
            between such Persons and who joins as a party to the Security Agreement and the Guaranty pursuant to Section 5.15, or (C) issued by a Subsidiary to the Company or another Subsidiary;

      

      

      (iii)          Investments consisting of intercompany loans or advances by and among the Company and its Subsidiaries (excluding Excluded Subsidiaries) so long as Investors have a first priority, perfected Lien in such
            intercompany loans and, if evidenced by a note, the Collateral Agent (as defined in the Security Agreement) has received such note, together with transfer powers executed in blank in connection therewith;

      

      

      (iv)          Investments consisting of the Company or any Subsidiary guaranteeing Permitted Indebtedness;

      

      

      (v)          Investments in cash or cash equivalents that are subject to the Investors’ Lien and control pursuant to documentation in form and substance reasonably satisfactory to the Investors;

      

      

      (vi)          Investments consisting of loans or advances to its respective officers, directors and employees on an arm's-length basis in the ordinary course of business consistent with past practices for travel, tuition
            reimbursement, 401(k) account transition amounts, business entertainment, relocation and similar business purposes up to a maximum of $50,000 per Person at any one time outstanding and $250,000 in the aggregate at any one time outstanding;

      

      

      
        28

        
          

      

      (vii)        Investments existing as of the Closing Date and set forth on Section 6.3 of the Disclosure Letter;

      

      

      (viii)       capital expenditures not to exceed $5,750,000 for each fiscal year; provided, however, that of such capital expenditures no more than $1,250,000 may be
            expended in connection with the acquisition of equipment or other fixed assets;

      

      

      (ix)         Restricted Payments permitted by Section 6.8; and

      

      

      (x)          other Investments in an aggregate outstanding amount not to exceed $500,000.

      

      

      (ee)          “Permitted Restricted Payments” shall mean:

      

      

      (i)          Restricted Payments to the Company or any Subsidiary (other than Excluded Subsidiaries);

      

      

      (ii)         Restricted Payments solely in shares of common stock or warrants to purchase common stock so long as no Change of Control would result therefrom;

      

      

      (iii)        Restricted Payments in the form of splits of capital stock or reclassifications of capital stock into additional shares of Common Stock;

      

      

      (iv)         repurchases of capital stock in the Company or any Subsidiary deemed to occur upon "cashless" exercise of restricted stock units, restricted stock awards, restricted stock options or restricted warrants subject
            to an incentive plan approved by the board of directors of the Company or such Subsidiary;

      

      

      (v)          so long as no Event of Default shall have occurred or be continuing or would result therefrom, payments by any Subsidiary to enable the Company to purchase, redeem, retire or otherwise acquire shares of its
            capital stock (or options or rights to acquire its capital stock) held by current or former officers, directors or employees of the Company or any Subsidiary, in an aggregate cash amount not exceeding $1,000,000 in the aggregate for all such
            purchases, redemptions, retirements and acquisitions at all times;

      

      

      (vi)         so long as no Event of Default shall have occurred and be continuing or would result therefrom, Restricted Payments in the form of issuances of restricted capital stock to officers, directors and employees of
            the Company or any Subsidiary in connection with employee compensation and incentive arrangements approved by the Board of Directors of the Company or such Subsidiary, in each case so long as treated as a compensation expense under GAAP and
            related cash payment of taxes in connection with such issuances paid on behalf of such officers, directors and employees;

      

      

      (vii)        Restricted Payments in the form of purchases, redemptions or other acquisitions of capital stock with the proceeds received from the substantially concurrent issue of new shares of capital stock, so long as no
            Event of Default shall have occurred and be continuing or would result therefrom;

      

      

      
        29

        
          

      

      (viii)       customary fees paid or expense reimbursements provided to members of the board of directors (or equivalent governing body) of the Company or any Subsidiary in the ordinary course of business and consistent with
            past practices; and

      

      

      (ix)         to the extent constituting Restricted Payments, payments made to Digital Matrix Systems, Inc. in the ordinary course of business on terms no less favorable to the Company and its Subsidiaries than would have
            been obtainable on an arm’s-length basis, for services provided to the Company and its Subsidiaries, including credit monitoring and analysis.

      

      

      (ff)          "Person" shall mean an individual, a limited liability company, a
            partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

      

      

      (gg)         “Preferred Stock” means shares of the Company’s Series A Preferred Stock,
            par value $0.01 per share, having the terms designated pursuant to the certificate of designation attached hereto as Exhibit G, and any other securities of the Company which may be issued or issuable with respect to, in exchange for, or in substitution of, such shares of preferred stock (including without limitation, by way of
            recapitalization, reclassification, reorganization, merger or otherwise).

      

      

      (hh)          "Restricted Payment" means any (a) dividend or other distribution (whether
            in cash, securities or other property) with respect to any capital stock of the Company or any Subsidiary, (b) payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase,
            redemption, retirement, acquisition, cancellation or termination of any such capital stock, or on account of any return of capital to the stockholders, partners or members (or the equivalent Person thereof) of the Company or any Subsidiary or
            (c) payment (whether in cash, securities or other property) of management, consulting or advisory fees (or other fees of a similar nature), by the Company or such Subsidiary to any equity holder or Affiliate of the Company or such Subsidiary
            (including the Investors).

      

      

      (ii)          “Shareholder Approval” means, (a) if and as required by the rules of the Nasdaq Stock Market (including, without limitation, pursuant to Rule 5635 of the Nasdaq Stock Market), the approval
          of the stockholders of the Company in accordance with the requirements of such rules as may be necessary to (i) permit the conversion of all the Notes held by any officer or director of the Company into capital stock of the Company, (ii) permit
          the conversion of all the Notes and Preferred Stock into shares of Common Stock, and (iii) permit the exercise of Preemptive Rights pursuant to Section 5.3 and (b) to approve the actions described in Section 5.7.  For the avoidance of doubt, any
          such required stockholder approval need not be effected at a meeting of stockholders and may instead, if otherwise permitted pursuant to federal securities laws and regulations, the Charter and By-laws, and the rules of the Nasdaq Stock Market,
          be effected by written consent in lieu of a meeting.

      

      

      
        30

        
          

      

      (jj)          “Significant Investor” means any Investor holding (together with its
            Affiliates) at least ten percent (10%) of the aggregate unpaid principal amount of the Notes owing to the Investors.

      

      

      (kk)         “Subsidiary” means with respect to any Person, any corporation, association
            or other business entity of which 50% or more of the total voting power of equity entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees or other governing body thereof is at
            the time owned or controlled by such Person (regardless of whether such equity is owned directly or through one or more other Subsidiaries of such Person or a combination thereof).

      

      

      (ll)          “Superior Proposal” has the meaning set forth in the Merger Agreement.

      

      

      (mm)       “Superior Transaction” means an acquisition of the Company (other than the
            Offer, the Merger and the other transactions contemplated by the Merger Agreement): (i) in which all stockholders of the Company receive consideration for their shares solely in the form of cash (other than in the case of David McGough, Loeb
            Holding Corporation and/or Michael Stanfield, if any one or more of the foregoing persons elect to roll their shares of Company stock in the acquisition for stock of the Successor Entity); and (ii) which is in respect of a Superior Proposal
            that the Company validly accepted in accordance with the terms of the Merger Agreement and for which the Company validly terminated the Merger Agreement pursuant to 8.1(d)(ii) therein.

      

      

      (nn)          “Trigger Date” means the earlier of the Automatic Conversion Time and any
            Optional Trigger Date.

      

      

      7.2          Expenses.

      

      

      (a)          The Company and the Investors will each pay their own fees, costs and expenses attributable to the negotiation and consummation of the transactions contemplated hereby and in the other Transaction Documents, provided that in the event
            that any one or more Notes convert for any reason other than as a result of the closing of the Merger, concurrent with such conversion, the Company will reimburse the Majority Investor for its reasonable legal fees and other out-of-pocket costs
            and expenses attributable to the negotiation, execution and delivery of the Notes and related Transaction Documents up to a maximum amount of $150,000.

      

      

      (b)          The Company further agrees that it will pay, and will save the Investors, the directors, officers, employees, trustees, agents, investment advisors, auditors, investment managers, equity holders, partners, controlling persons,
            financing sources, collateral managers, servicers and counsel of each Investor and their respective Affiliates (collectively, the “Indemnitees”) harmless from, any and all liabilities, costs and expenses incurred by such Indemnitees to the extent arising in connection with, or to the extent arising from, the ownership of the
            Notes including, without limitation, any amendment or waiver of, or enforcement of, any Transaction Document relating to the transactions contemplated hereby, provided that the Company shall not have any obligation hereunder to an Indemnity to
            any Indemnitee with respect to any liability resulting from the gross negligence or willful misconduct of such Indemnitee, as determined by a final non-appealable judgement of a court of competent jurisdiction.

      

      

      
        31

        
          

      

      

      

      (c)          The Company further agrees that it will pay, and will save the Investors harmless from, any and all Liabilities with respect to any stamp or similar taxes which may be determined to be payable in connection with the execution and
            delivery and performance of the Transaction Documents or any modification, amendment or alteration of the terms or provisions of the Transaction Documents (excluding any taxes on the income or gain of the Investors).

      

      

      7.3          Information Statement.  Promptly after the execution of this Agreement, the Company shall prepare the Information Statement and shall file the same with the
            Commission as soon as reasonably practicable, but in no event later than ten (10) Business Days after the Closing Date.  The Information Statement shall constitute an information circular informing the stockholders of the Company of receipt of
            the Shareholder Approval.  Other than with respect to any information provided by or on behalf of any Investor, the Company will cause the Information Statement to comply as to form in all material respects with the applicable provisions of the
            Securities Act and the Exchange Act and the rules and regulations thereunder.  The Company shall use commercially reasonable efforts to cause the Information Statement to be cleared by the Commission as promptly as practicable after its filing
            with the Commission.  The Company will advise the Investors promptly after it receives oral or written notice of any request by the Commission for amendment to the Information Statement or comments thereon and responses thereto or requests by
            the Commission for additional information and will promptly provide each of the Investors with copies of any written communication from the Commission or any state securities commission.  The Company shall use commercially reasonable efforts,
            after consultation with the Investors, to resolve all such requests or comments with respect to the Information Statement as promptly as practicable after receipt thereof.  Each Investor shall cooperate with the Company in the preparation of
            the Information Statement and such Investor shall, upon request, furnish the Company with such information concerning it and its Affiliates, if any, as the Company may reasonably determine is required in connection with the preparation of the
            Information Statement.  No filing of, or amendment or supplement to the Information Statement will be made by the Company without consulting with the Investors and without providing each Investor the opportunity to review and comment thereon. 
            The Company shall cause the Information Statement to be mailed (or otherwise electronically provided) to the stockholders of the Company as promptly as practicable (but in any event within three (3) Business Days) after it is permitted under
            the Exchange Act.  The Company shall, promptly upon becoming aware of any information that would cause (i) any of the statements in the Information Statement to be false or misleading with respect to any material fact or (ii) the Information
            Statement to omit to state any material fact necessary to make the statements therein not false or misleading, inform each Investor and, upon consultation with such Investor, take necessary steps to correct the Information Statement.  Each
            Investor shall, promptly upon becoming aware of any information furnished by it pursuant to the forth immediately preceding sentence that would cause (x) any of the statements in the Information Statement to be false or misleading with respect
            to any material fact or (y) the Information Statement to omit to state any material fact necessary to make the statements therein not false or misleading, inform the Company.

      

      

      
        32

        
          

      

      
        7.4          Remedies.  In case any one or more of the representations, warranties,
            covenants and/or agreements set forth in this Agreement or any other Transaction Documents shall have been breached by a party, the other parties may proceed to protect and enforce their respective rights either by suit in equity and/or by
            action at law, including an action for damages as a result of any such breach and/or an action for specific performance of any such covenant or agreement contained in this Agreement or any of the other Transaction Documents, and may exercise
            all remedies under the Notes.  Each party hereto hereby acknowledges and agrees that the other parties hereto 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 remedies at law would not be adequate to compensate such other parties not in default or in breach.  Accordingly, each party agrees that the other Parties shall be entitled to an injunction or
            injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions of this Agreement in addition to any other remedy to which they may be entitled, at law or in equity.  The parties waive
            any defense that a remedy at law is adequate and any requirement to post bond or provide similar security in connection with actions instituted for injunctive relief or specific performance of this Agreement.

      

      

      

      7.5          Survival.  The representations, warranties, covenants and agreements made herein shall survive any investigation made by any party hereto, the execution and
            delivery of this Agreement and the closing of the transactions contemplated hereby.

      

      

      7.6          Successors and Assigns.  This Agreement shall bind and inure to the benefit of the Company and the Investors and their respective successors and permitted
            assigns.  Prior to the occurrence of the Trigger Date, no Investor may assign or transfer either this Agreement or any of their rights, interests, or obligations hereunder without the prior written approval of the Company, provided that any
            Investor may transfer this Agreement or any of their rights, interests or obligations hereunder (i) to an Affiliate of such Investor, (ii) in connection with a pledge or assignation of security interest in all or any portion of its rights under
            this Agreement to secure obligations of such Investor (provided further that no such pledge or assignment shall release such Investor from any of its obligations hereunder or substitute any such pledgee or assignee for such Investor as a party
            hereto), and (iii) following and in connection with the insolvency of such Investor.  Upon and after the Trigger Date, subject to applicable federal, state and provincial securities laws and regulations, the Investors may freely assign either
            this Agreement or any of their rights, interests or obligations hereunder without the prior written approval of the Company.  Any transfer of Notes must be made in compliance with Section 7.19, if applicable, and with Section 13 of the Notes.

      

      

      7.7          Entire Agreement.  This Agreement and the other writings referred to herein or delivered pursuant hereto (including the other Transaction Documents) which
            form a part hereof contain the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings with respect thereto.

      

      

      7.8          Notices.

      

      

      (a)          Notices Copied to Investors.  All written notices delivered to the Company, the Majority Investor or the Collateral Agent (as defined in the Security Agreement) pursuant to this Agreement or any other Transaction Document
          (whether or not required to be delivered hereunder or thereunder) shall be copied to all Investors.

      

      

      
        33

        
          

      

      (b)          Notices Generally.  All notices, requests, demands, claims, consents and other communications delivered hereunder (whether or not required to be delivered hereunder) shall be deemed to be sufficient and duly given if
          contained in a written instrument (a) personally delivered, (b) sent by email, (c) sent by nationally-recognized overnight courier guaranteeing next business day delivery or (d) sent by first class registered or certified mail, postage prepaid,
          return receipt requested, in each case addressed as follows:

      

      

      (i) if to the Company, to:

       

        

      Intersections Inc.

      3901 Stonecroft Boulevard

      Chantilly, Virginia 20151

      Attention:  Mr. Michael R. Stanfield

          Executive Chairman and President

      Email:  mstanfield@intersections.com

      

      

      with a copy to:

      

      

      Intersections Inc.

      3901 Stonecroft Boulevard

      Chantilly, Virginia 20151

      Attention:  Mr. Duane L. Berlin, Esq.

          Chief Legal Officer and General Counsel

      Email:  dberlin@intersections.com

      

      

      and

      

      

      Kramer Levin Naftalis & Frankel LLP

      1177 Avenue of the Americas

      New York, NY 10036

      Attention:  Todd E. Lenson, Esq.

      Email: tlenson@kramerlevin.com

      Fax:  (212) 715-9216

      

      

      and

      

      

      Olshan Frome Wolosky LLP

      1325 Avenue of the Americas, 15th Floor

      New York, New York 10019

      Attention:  Spencer Feldman, Esq.

      Email:  sfeldman@olshalaw.com

      Fax: (212) 451-2222

      

      

      and

      

      

      (ii) if to the Investors, to the addresses set forth on the signature page hereto

      

      

      
        34

        
          

      

      with a copy to:

      

      

      Gibson, Dunn & Crutcher LLP

      2029 Century Park East, Suite 4000

      Los Angeles, CA 90067

      Attention:  Ari Lanin

      Email: alanin@gibsondunn.com

      Fax:  (310) 552-7046

      

      

      and:

      

      

      Gibson, Dunn & Crutcher LLP

      333 S. Grand Ave.

      Los Angeles, CA 90071

      Attention:  Cromwell Montgomery

      Email: cmontgomery@gibsondunn.com

      Fax:  (213) 229-6078

      

      

      or to such other address as the party to whom such notice or other communication is to be given may have furnished to each other party in writing in
          accordance herewith.  Any such notice or communication shall be deemed to have been received (A) when delivered, if personally delivered, (B) when sent, if sent by email on a business day (or, if not sent on a business day, on the next business
          day after the date sent by email), (C) on the next business day after dispatch, if sent by nationally recognized, overnight courier guaranteeing next business day delivery, and (D) on the fifth (5th) business day following the date on which the
          piece of mail containing such communication is posted, if sent by mail.

      

      

      7.9          Amendments, Modifications, Terminations and Waivers.

      

      

      (a)          The terms and provisions of this Agreement and the
          other Transaction Documents may not be modified, amended or terminated, nor may any of the provisions hereof be waived, temporarily or permanently, except pursuant to a written instrument executed by the Company and the Majority Investor;
          provided, however, that no modification, amendment, termination, waiver or consent to any departure by the Company or its Subsidiaries from the provisions of the Transaction Documents shall, unless in writing and signed by all Investors being
          adversely affected, do any of the following: (a) except in the case of the waiver or forgiveness of the Default Rate, reduce the principal of, or interest on, any Notes, (b) except in the case of the provisions of Section 4(b) of the Notes,
          postpone any date fixed for any payment of principal of, or interest on, any Notes, (c) amend the definition of “Conversion Rate” or any of its component definitions, including the definition of “Conversion Price”, or (d) amend this Section 7.9,
          Section 12 of the Notes, Section 7.6 or 7.8 of the Security Agreement, Section 4.4 of the Guaranty or Section 11(g) of the Registration Rights Agreement; provided, further, however, that any modification, amendment, termination or waiver of the
          provisions of this Agreement or any other Transaction Document that would disproportionately and adversely affect the rights of any Investor or group of Investors as compared to the Majority Investor shall require the written consent of any such
          Investor so adversely affected.  Notwithstanding the foregoing, any request for an amendment to a Note or other Transaction Document must be made to all Notes and Transaction Documents.

      

      

      
        35

        
          

      

      (b)          If the Company offers any fee, consideration or
          concessions to any Investor in exchange for such Investor’s consent to any modification, amendment, termination or waiver under this Agreement or the other Transaction Documents, the Company shall offer the same fee, consideration or concession
          (on a Pro Rata basis) to each Investor who agrees to consent to such modification, amendment, termination or waiver.

      

      

      7.10          Governing Law; Waiver of Jury Trial.

      

      

      (a)          All questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced 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 in the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.  In furtherance of the foregoing, the internal
            law of the State of New York will control the interpretation and construction of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily or
            necessarily apply.

      

      

      (b)          THE COMPANY AND EACH INVESTOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR
            RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS EXCEPT TO THE EXTENT NECESSARY TO ENFORCE RIGHTS AGAINST THE COLLATERAL.  THE COMPANY AND EACH INVESTOR HERETO EXPRESSLY SUBMITS AND CONSENTS TO THE
            JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS.  THE COMPANY AND EACH INVESTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH PARTY BY
            CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH PARTY AT THE ADDRESS SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

      

      

      (c)          THE COMPANY AND EACH INVESTOR HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES
            THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THE COMPANY AND EACH INVESTOR ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE
            WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  THE COMPANY AND EACH INVESTOR WARRANTS AND REPRESENTS THAT EACH HAS HAD THE
            OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

      

      

      
        36

        
          

      

      7.11          No Third Party Reliance.  Anything contained herein to the contrary notwithstanding, the representations and warranties of the Company contained in this
            Agreement (a) are being given by the Company as an inducement to the Investors to enter into this Agreement and the other Transaction Documents (and the Company acknowledges that the Investors have expressly relied thereon) and (b) are solely
            for the benefit of the Investors.  Accordingly, no third party (including, without limitation, any holder of capital stock of the Company) or anyone acting on behalf of any holder thereof other than the Investors shall be a third-party or other
            beneficiary of such representations and warranties and no such third party shall have any rights of contribution against the Investors or the Company with respect to such representations or warranties or any matter subject to or resulting in
            indemnification under this Agreement or otherwise.

      

      

      7.12          Publicity.  Neither the Investors nor the Company shall issue any press release or make any public disclosure regarding the transactions contemplated hereby
            unless such press release or public disclosure is approved by the Investors and those parties mentioned in such press release or public disclosure in advance.  Notwithstanding the foregoing, the parties hereto may, in documents required to be
            filed by it with the Commission or other regulatory bodies, make such statements with respect to the transactions contemplated hereby as each may be advised by counsel is legally necessary or advisable.

      

      

      7.13          Severability.  It is the desire and intent of the parties that the provisions of this Agreement be enforced to the fullest extent permissible under the law
            and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, in the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such
            provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any jurisdiction.  Notwithstanding the foregoing, if such
            provision could be more narrowly drawn so as to not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or
            affecting the validity or enforceability of such provision in any other jurisdiction.

      

      

      7.14          Independence of Agreements, Covenants, Representations and Warranties.  All agreements and covenants hereunder shall be given independent effect so that if a
            certain action or condition constitutes a default under a certain agreement or covenant, the fact that such action or condition is permitted by another agreement or covenant shall not affect the occurrence of such default, unless expressly
            permitted under an exception to such covenant.  In addition, all representations and warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that
            another representation or warranty concerning the same or similar subject matter is correct or is not breached will not affect the incorrectness of or a breach of a representation and warranty hereunder.  The annexes, exhibits and schedules
            attached hereto are hereby made part of this Agreement in all respects.

      

      

      
        37

        
          

      

      7.15          Construction.  The Company and the Investors acknowledge that the Company and its independent counsel and the Investors and their independent counsel have
            jointly reviewed and drafted this document, and agree that any rule of construction and interpretation to the effect that drafting ambiguities are to be resolved against the drafting party shall not be employed.

      

      

      7.16          Counterparts; Facsimile and Electronic Signatures.  This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be
            deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.  Counterpart signatures to this Agreement delivered by facsimile or other electronic transmission shall be acceptable and binding.

      

      

      7.17          Headings.  The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
            interpretation of this Agreement.

      

      

      7.18          Agreement of Majority Investor.  The Majority Investor hereby agrees not to file the Certificate of Designation delivered on the Closing Date until such time
            as the Investors elect to convert their Notes or the Notes are mandatorily converted, and such Notes are convertible into Preferred Stock.

      

      

      7.19          Specific Performance.  The Company acknowledges and agrees that a breach of any of the terms contained in this Agreement will cause irreparable injury to the
            Investors and that the Investors have no adequate remedy at law in respect of such breaches and therefore agrees that the obligations of the Company contained in this Agreement shall be specifically enforceable against the Company.

      

      

      * * * * *

      

      

      
        38

        
          

      

      IN WITNESS WHEREOF, each of the undersigned has
          duly executed this Note Purchase and Exchange Agreement as of the date first written above.

      

      

      	 	
              COMPANY:

            
	 	 
	 	
              Intersections Inc.

            
	 	 
	 	
              By:

            	
              /s/ Ronald L. Barden

            	 
	 	 	
              Name: Ronald L. Barden

            
	 	 	
              Title: CFO

            

      

      

      
        Note Purchase and Exchange Agreement

        
          

      

      	 	
              INVESTOR:

            
	 	 
	 	
              WC SACD ONE PARENT, INC.

            
	 	 
	 	
              By:

            	
              /s/ Hari Ravichandran

            	 
	 	 	
              Name: Hari Ravichandran

            
	 	 	
              Title: Chief Executive Officer

            
	 	 
	 	
              Address:

            
	 	
              15 Network Drive

            
	 	
              Burlington, MA 01803

            
	 	
              Attention: Hari Ravichandran

            
	 	
              Email: hari@isubscribed.com

            

      

      

      
        Note Purchase and Exchange Agreement

        
          

      

      	 	
              INVESTOR:

            
	 	 
	 	
              Loeb Holding Corporation

            
	 	 
	 	
              By:

            	
              /s/ Bruce L. Lev          

                    

            	 
	 	 	
              Name: Bruce L. Lev

                

            
	 	 	
              Title: Managing Director

            
	 	 
	 	
              Address:

            
	 	
              100 Wall Street, 19th Floor

            
	 	
              New York, New York 10005

            
	 	 
	 	
              with a copy to:

            
	 	 
	 	
              Strook & Strook & Lavan LLP

            
	 	
              180 Maiden Lane

            
	 	
              New York, New York 10038

            
	 	
              Attention: Bradley Kulman, Esq.

            
	 	
              Facsimile No.: (212) 806-6006

            

      

      

      
        Note Purchase and Exchange Agreement

        
          

      

      	 	
              INVESTOR:

            
	 	 
	 	
              By:

            	
              /s/ David A. McGough

            	 
	 	 	
              Name: David A. McGough

            
	 	 	
              Title:

            
	 	 
	 	
              Address:

            
	 	
              6825 Mulhouse Ct.

            
	 	
              Plano, TX 75024

            

      

      

      
        Note Purchase and Exchange Agreement

        
          

      

      Annex I

      Investors

      

      

      Part A

      

      

      	
              Investor

            	
              Initial Principal Amount of Note

            	
              Purchase Price

            
	
              WC SACD One Parent, Inc.

            	
              $30,000,000

            	
              $30,000,000

            

      

      

      Part B

      

      

      	
              Investor

            	
              Initial Principal Amount of Note

            	
              Note to be Exchanged

            
	
              Loeb Holding Corporation

            	
              $3,000,000

            	
              Promissory Note, dated June 27, 2018, in the amount of $2,000,000, made by the Company in favor of Loeb Holding Corporation.

               

              Promissory Note, dated September 24, 2018, in the amount of $1,000,000, made by the Company in favor of Loeb Holding Corporation.

               

            
	
              David A. McGough

            	
              $1,000,000

            	
              Promissory Note, dated June 27, 2018, in the amount of $1,000,000, made by the Company in favor of David A. McGough.

               

            

      

        
          Note Purchase and Exchange Agreement

          
            

        

      

      
         EXHIBIT A

        

         FORM OF NOTE

         

        

        NEITHER THE ISSUANCE AND SALE OF THIS NOTE NOR ANY SHARES OF COMMON STOCK OR PREFERRED STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
          BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THIS NOTE AND THE SHARES OF COMMON STOCK OR PREFERRED STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE OFFERED FOR
          SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS NOTE OR THE SHARES OF COMMON STOCK OR PREFERRED STOCK ISSUABLE UPON CONVERSION OF THIS NOTE UNDER THE SECURITIES ACT, AS APPLICABLE, OR (II)
          UNLESS THE HOLDER PROVIDES THE COMPANY WITH ASSURANCE (REASONABLY SATISFACTORY TO THE COMPANY) THAT SUCH NOTE OR THE SHARES OF COMMON STOCK OR PREFERRED STOCK ISSUABLE UPON THE CONVERSION OF THE NOTE CAN BE SOLD, ASSIGNED OR TRANSFERRED PURSUANT
          TO RULE 144 OR SUCH OTHER EXEMPTION FROM REGISTRATION AS MAY BE AVAILABLE.

         
        THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION
            HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF.

         
        INTERSECTIONS INC.

         
        SENIOR SECURED CONVERTIBLE NOTE

         
                                                                                                           

          
          	Issuance Date: October 31, 2018

                  	Principal Amount: U.S. $[_____]

          (subject to Section 3(c)(iv) hereof)

         
        FOR VALUE RECEIVED, Intersections

            Inc., a Delaware corporation (the “Company”), hereby promises to pay to [_____] or the registered assign(s) thereof (“Holder”) the principal amount set forth above (the “Principal”) when due, whether upon the Maturity Date, acceleration
            or otherwise (in each case in accordance with the terms hereof), together with accrued interest (“Interest”) on any outstanding Principal at the
            First Interest Rate or the Second Interest Rate, as applicable, from the date hereof (the “Issuance Date”) until the same becomes due and
            payable, whether upon the Maturity Date, acceleration, conversion or otherwise (in each case, in accordance with the terms hereof).  This Senior Secured Convertible Note (this “Note”) is being issued pursuant to that certain Note Purchase and Exchange Agreement, dated as of the date hereof, by and among (inter alios) the Company and the Holder (the “Note Purchase Agreement”), and is entitled to the benefits of, and evidences obligations incurred under, the Note Purchase Agreement and the other Transaction Documents (as defined in the Note Purchase
            Agreement), to which reference is made for a description of the security for this Note and for a statement of the terms and conditions on which the Company is permitted and required to make prepayments and repayments of principal of the
            obligations evidenced hereby and on which such obligations may be declared to be immediately due and payable.  This Note represents a full recourse obligation of the Company, is guaranteed by the Company’s Subsidiaries pursuant to the terms of
            the Guaranty, and is secured by the Collateral pursuant to the terms of the Security Agreement.

         

        

        
          
            

        

        Certain capitalized terms used herein are defined in Section 24.  Other capitalized terms used but defined herein shall have
            the meaning given to such terms in the Note Purchase Agreement.

         
         

          

         
        (1)            MATURITY.  On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal and accrued and unpaid Interest, if any.  The “Maturity Date” shall be October 31, 2021.

         
         

          

         
        (2)            INTEREST; INTEREST RATE.

         
        (a)            So long as no Event of Default has occurred and is continuing, the outstanding Principal balance of
              this Note shall accrue Interest from the Issuance Date through October 31, 2019 (the “First Interest Rate Period”), at the rate of six percent (6.0%) per annum (based on a 360-day year and the actual number of days elapsed in any partial year) (the “First Interest Rate”).  The Interest accruing during the First Interest Rate Period
              shall be paid quarterly in arrears in cash, commencing on December 31, 2018, and as of the last  day of each calendar quarter thereafter.  During the continuance of an Event of Default, Interest shall be calculated at the Default Rate as set
              forth in Section 2(c) below.

         
        (b)            So long as no Event of Default has occurred and is continuing, the outstanding Principal balance of
              this Note shall accrue Interest from and after the end of the First Interest Rate Period through the Maturity Date (the “Second Interest
              Rate Period”), at the rate of eight percent (8.0%) per annum (based on a 360-day year and the actual number of days elapsed in any partial year) (the “Second Interest Rate”).  The Interest accruing
              during the Second Interest Rate Period shall be paid quarterly in arrears in cash.  During the continuance of an Event of Default, Interest shall be calculated at the Default Rate as set forth in Section 2(c) below.

         
        (c)            From and after the date that an Event of Default has occurred and while it is continuing, the First
              Interest Rate or the Second Interest Rate, whichever is then applicable, shall be increased by two percent (2.0%) and otherwise applied consistently with the provisions of Sections 2(a) and 2(b) (the “Default Rate”).

         
        (d)            Notwithstanding any other provision of this Note, the aggregate annual interest rate payable with
              respect to this Note (including all charges and fees deemed to be interest pursuant to applicable law) shall not exceed the maximum annual rate permitted by applicable law.  In the event the aggregate annual interest rate payable with respect
              to this Note (including all charges and fees deemed to be interest under applicable laws) exceeds the maximum legal rate, the Company shall only pay Interest to the Holder at the maximum permitted rate and the Company shall continue to make
              such Interest payments at the maximum permitted rate until all amounts, fees and obligations required to be paid hereunder have been paid in full.

         

        

        
          2

          
            

        

        (e)            This Note is one of a series of notes issued by the Company pursuant to the Note Purchase Agreement containing
              substantially identical terms and conditions.  Such Notes are referred to herein as the “Notes ,” and the holders thereof (including the Holder) are referred to herein as the “Investors.” The right of an Investor to receive payments of
              Principal and Interest under this Note shall be pari passu with the rights of the other Investors to receive payments of Principal and Interest under their respective Notes, and the Company covenants that any payments made by it with respect to the Notes shall be made pro rata among the Investors determined based on the ratio of the
              outstanding balance of Principal and Interest under each Note divided by the aggregate outstanding balance of Principal and Interest under all Notes.  By the Holder’s acceptance of this Note, the Holder agrees to the foregoing.

         
         

          

         
        (3)            CONVERSION OF NOTE.  This Note shall be convertible into shares of Common Stock and Preferred Stock, on the terms and conditions set forth in this Section 3.

         
        (a)            Conversion.

         
        (i)            (x)  Upon the occurrence of the Automatic Conversion Time, if any (the anticipated occurrence of
              which the Company shall so notify its transfer agent, if any (the “Transfer Agent”) in sufficiently advance time so that the Holder (or its designee) is reflected as the record holder of the number of shares of Common Stock and/or Preferred Stock into which this Note converts at the
              Automatic Conversion Time), all of the outstanding and unpaid Conversion Amount (as defined below) shall automatically convert into Common Stock and (if applicable) Preferred Stock in accordance with this Section 3.1(a)(i), Section 3(a)(ii)
              and Section 3(c), at the Conversion Rate (as defined below), and (y) at any time on or after the occurrence of the Optional Trigger Date, if any, the Holder shall be entitled to convert all or any portion of the outstanding and unpaid
              Conversion Amount into Common Stock and (if applicable) Preferred Stock in accordance with this Section 3.1(a)(i), Section 3(a)(ii) and Section 3(c), at the Conversion Rate (as defined below).  The Company shall not issue any fraction of a
              share of Common Stock or Preferred Stock upon any conversion.  If any conversion would result in the issuance of a fraction of a share of Common Stock or Preferred Stock, the Company shall round up such fraction of a share of Common Stock or
              Preferred Stock.  The Company shall pay any and all stock transfer, stamp, documentary and similar taxes (excluding any taxes on the income or gain of the Holder) that may be payable with respect to the issuance and delivery of shares of
              Common Stock or Preferred Stock to the Holder upon conversion of any Conversion Amount.  To the extent permitted by law, the Company and the Holder acknowledge and agree that any conversion of all or any portion of the Conversion Amount into
              shares of Common Stock or Preferred Stock pursuant to the terms of this Section 3(a) will not be treated as a taxable transaction and the Company and the Holder agree to report any such conversion in a manner consistent with the foregoing
              treatment.

         
        (ii)            The outstanding and unpaid Conversion Amount shall be convertible in whole or in part into shares of
              the Company’s Common Stock, provided that, to the extent that the Company remains listed on the Nasdaq Stock Market and the proposed Elective Conversion Date or Automatic Conversion Time, as the case may be, is prior to the occurrence of the
              Effectiveness Date, the Company shall not be required to issue to the Holder more than the Pro Rata number of shares of Common Stock and the remainder of the outstanding and unpaid Conversion Amount shall be convertible into shares of
              Preferred Stock.

         

        

        
          3

          
            

        

        (b)            Conversion Rate.  The number
              of shares of Common Stock or Preferred Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) (the “Conversion
              Rate”) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price, provided that prior to the Effectiveness Date, the Company may
              issue no more than the Pro Rata number of shares of Common Stock.

         
        (i)            “Conversion Amount” means the sum of (A) the portion of the Principal to be converted with respect to which this determination is being made and (B)
              accrued and unpaid Interest with respect to such Principal (subject to Nasdaq limitations with respect to the form of consideration).

         
        (ii)            “Conversion Price” means (A) with respect to a share of Common Stock, $2.27, subject to adjustment as provided herein and (B) with respect to a share of
              Preferred Stock, $11.35, subject to adjustment as provided herein.

         
        (iii)            “Effectiveness Date” means the date on which the Shareholder Approval becomes effective.

         
        (iv)            “Shareholder Approval” means, as required by the rules of the Nasdaq Stock Market, the approval of the stockholders of the Company holding a majority of
              the issued and outstanding shares of Common Stock to permit the conversion of all the Notes and Preferred Stock into shares of Common Stock.

         
        (c)            Mechanics of Conversion.

         
        (i)            Conversion.

         
        (A)            To convert any Conversion Amount into shares of Common Stock and/or Preferred Stock on any date in
              connection with any elective conversion of this Note (any such date, an “Elective Conversion Date”),
              the Holder shall (1) transmit by facsimile or electronic mail (or otherwise deliver), for receipt on or prior to 12:00 p.m., Eastern Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and (2) if required by this Section 3(c)(i), cause this Note to
              be delivered to the Company as soon as practicable on or following such date.  Any Conversion Notice may condition the conversion upon the effectiveness or occurrence of an event, which shall be described in such Conversion Notice in
              reasonable detail.  On or before 12:00 p.m., Eastern Time, on the first (1st) Business Day following the date of receipt of a Conversion Notice, the Company shall transmit by facsimile or electronic mail a confirmation of receipt of such
              Conversion Notice to the Holder (at the facsimile number or electronic mail address provided in the Conversion Notice) and the Transfer Agent.

         

        

        
          4

          
            

        

        (1)            If such Conversion Notice, as specified therein, is being delivered by the Holder in connection with
              an election to convert in connection with the consummation of an Alternative Transaction and such Conversion Notice provides for the conversion of this Note to be effective as of the Alternative Transaction Conversion Time in respect of such
              Alternative Transaction specified therein  (an “Alternative Transaction Election”), the Company shall with effect as of the Alternative Transaction Conversion Time, (x) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, cause the Transfer Agent
              to credit such aggregate number of shares of Common Stock and/or Preferred Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal At Custodian (“DWAC”) system, or (y) if the Transfer Agent is not participating in
              the DTC Fast Automated Securities Transfer Program, issue and deliver to the address specified by the Holder in writing to the Company, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common
              Stock and/or Preferred Stock to which the Holder shall be entitled.  The Company also agrees to take any such further action as may be reasonably required or necessary to effectuate, effective as of the Alternative Transaction Conversion
              Time, the conversion of the Note into the number of shares of Common Stock and/or Preferred Stock to which the Holder is entitled.  If this Note is physically surrendered for conversion as required by Section 3(c)(iv) and the outstanding
              Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own
              expense, issue and deliver to the Holder a new Note (in accordance with Section 18(d)), representing the outstanding Principal not converted.

         
        (2)            If such Conversion Notice is being delivered, other than in connection with an Alternative
              Transaction Election, on or before 12:00 p.m., Eastern Time, on the third (3rd) Business Day following the date of receipt of such Conversion Notice (the “Share Delivery Date”), the Company shall (x) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program,
              cause the Transfer Agent to credit such aggregate number of shares of Common Stock or Preferred Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its DWAC system, or (y) if the
              Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, or if the Holder otherwise requests, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of
              the Holder or its designee, for the number of shares of Common Stock or Preferred Stock to which the Holder shall be entitled.  If this Note is physically surrendered for conversion as required by Section 3(c)(iv) and the outstanding
              Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own
              expense, issue and deliver to the Holder a new Note (in accordance with Section 18(d)), representing the outstanding Principal not converted.

         

        

        
          5

          
            

        

        (B)            In connection with the conversion of this Note at the Automatic Conversion Time, the Company shall
              with effect at the Automatic Conversion Time (1) if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program, cause the Transfer Agent to credit such aggregate number of shares of Common Stock and/or Preferred
              Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its DWAC system, or (2) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and
              deliver to the address specified by the Holder in writing to the Company, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock and/or Preferred Stock to which the Holder shall be
              entitled.  The Company also agrees to take any such further action as may be reasonably required or necessary to effectuate, effective as of the Automatic Conversion Time, the conversion of the Note into the number of shares of Common Stock
              and/or Preferred Stock to which the Holders is entitled.

         
        (C)            The Person or Persons entitled to receive the shares of Common Stock and/or Preferred Stock issuable
              upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock and/or Preferred Stock on the Elective Conversion Date or Automatic Conversion Time, as the case may be.

         
        (ii)            Shareholder Approval.  In the event that the shareholders of the Company do not approve the Shareholder Approval by written consent or such written consent does not become effective for any reason within 30 days after the Closing Date
              (and, in furtherance of the foregoing, the Company shall prepare and file an information statement with respect to such Shareholder Approval within 10 Business Days of the Issuance Date), the Company shall use its commercially reasonable
              efforts to seek, in each calendar year until shareholder approval is obtained, shareholder approval for the conversion of the full Conversion Amount into Common Stock, including preparing, filing and mailing a proxy statement to its
              shareholders and recommending to its shareholders to approve such item, in a manner that satisfies Nasdaq Listing Rule 5635.

         
        (iii)            Company’s Failure to Timely Convert.  If, at any time, the Company shall fail to credit the Holder’s balance account with DTC or issue a certificate to the Holder, as the case may be, upon conversion of any Conversion Amount (1) in the case
              of an elective conversion of this Note (other than an Alternative Transaction Election), on or prior to the date which is ten (10) Business Days after the Elective Conversion Date, (2) at the Automatic Conversion Time, or (3) in respect of
              Alternative Transaction Election, at the Alternative Transaction Conversion Time (in any such case, a “Conversion Failure”), then the Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have returned, as the case may be, any portion of
              this Note that has not been converted pursuant to such Conversion Notice; provided that the voiding of a Conversion Notice shall not affect the Company’s obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section 3(c)(iii) or otherwise.

         

        

        
          6

          
            

        

        (iv)            Book-Entry. 

              Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full
              Conversion Amount represented by this Note has been converted as a result of the occurrence of the Automatic Conversion Time and registration of such Common Stock and Preferred Stock  (if applicable) in the name of the Holder (or its
              designee) has been confirmed; provided, no such physical surrender shall be required prior to such confirmation, or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice)
              requesting physical surrender and reissue of this Note.  The Holder and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory
              to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.

         
        (v)            Disputes. 

              In the event of a dispute between the Company and the Holder of this Note as to the number of shares of Common Stock and/or Preferred Stock issuable to the Holder in connection with a conversion of this Note, the Company shall issue to the
              Holder the number of shares of Common Stock and/or Preferred Stock not in dispute and resolve such dispute in accordance with Section 19.

         
         

          

         
        (4)            REDEMPTIONS.

         
        (a)            Optional Redemption.  This Note may not be optionally redeemed by the Company without express prior written consent of the Holder and the Majority Investor.  Each payment made in connection with an optional redemption permitted under
              this Section 4(a) shall be applied Pro Rata among all outstanding Notes.

         
        (b)            Mandatory Redemption.  The Note is subject to mandatory redemption in the following amounts and at the following times:

         
        (i)            Excess Cash Flow.  Subject to Section 4(b)(v), within five (5) Business Days after financial statements have been delivered in respect of each fiscal year ending after the fiscal year ending December 31, 2018, the Company shall
              redeem the aggregate Principal amount of the Notes in an amount equal to 15% of the Excess Cash Flow for such fiscal year.

         
        (ii)            Casualty Events.  Subject to Section 4(b)(v), promptly, but no later than five (5) Business Days, upon receipt by the Company or any Subsidiary of (A) Net Cash Proceeds from Casualty Events with respect to Collateral and (B) all Extraordinary Receipts,
              the Company shall pay to the Holders of the Notes 100% of such Net Cash Proceeds and Extraordinary Receipts so received to be applied; provided, however, that with respect to any Net Cash Proceeds received from Casualty Events or any Extraordinary Receipts, at the election of the Company (pursuant to a notice in writing by the Company to the Holders on or prior to the date of
              receipt of such Net Cash Proceeds or Extraordinary Receipt, as applicable, and so long as no Event of Default shall have occurred and be continuing, the Company or such Subsidiary may reinvest all or any portion of such Net Cash Proceeds or
              Extraordinary Receipts, as applicable, in operating assets or other assets used or useful in the business of the Company and its Subsidiaries, in each case, other than a reinvestment in cash assets, so long as such reinvestment occurs within
              180 days after the receipt of such Net Cash Proceeds or Extraordinary Receipts, as applicable); provided, further, however, that any Net Cash Proceeds or Extraordinary Receipts
              not reinvested as set forth herein above, shall be applied to the redemption of the outstanding Principal amounts of the Notes at the end of such 180 day period.

         

        

        
          7

          
            

        

        (iii)            Incurrence of Indebtedness.  Subject to Section 4(b)(v), promptly (but no later than three (3) Business Days) upon receipt of Net Cash Proceeds from the incurrence or issuance by the Company or any of its Subsidiaries of any
              Indebtedness (other than Permitted Indebtedness), the Company shall pay to the Holders of the Notes100% of such Net Cash Proceeds so received.

         
        (iv)            Asset Dispositions.  Subject to Section 4(b)(v), promptly (but no later than three (3) Business Days) upon receipt by the Company or any Subsidiary of Net Cash Proceeds in excess of $250,000, in the aggregate, from asset
              dispositions of Collateral, the Company shall pay to the Holders of the Notes 100% of such Net Cash Proceeds so received; provided, however, at the election of the Company (pursuant to a notice in writing by the Company to the Holders of the Notes on or prior to the date on which such prepayment would otherwise be due), and so long as no Event of Default shall
              have occurred and be continuing, the Company or such Subsidiary may reinvest all or any portion of such Net Cash Proceeds in operating assets or other assets used or useful in the business of the Company and its Subsidiaries, in each case,
              other than a reinvestment in cash assets, so long as such reinvestment occurs within 180 days after the receipt of such Net Cash Proceeds; provided, further, however, that any Net Cash
              Proceeds not reinvested as set forth herein above, shall be applied to the redemption of the outstanding principal amounts of the Notes at the end of such 180 day period.

         
        (v)            Any mandatory redemption payment made pursuant to any clause of this Section 4(b) shall (A) be
              applied Pro Rata among Notes outstanding and (B) be applied first to accrued and unpaid interest, and then to unpaid Principal amounts of this Note.

         
        (vi)            The Company shall promptly deliver to the Holder a written notice of each redemption under this
              Section 4(b) prior to the date such redemption is required to be made.  The Holder may reject all or a portion of its Pro Rata share of any such mandatory redemption (such declined amounts, the “Declined Amounts”) by notice (which notice may be telephonic, followed by written notice) to the
              Company, specifying the Principal amount of the mandatory redemption rejected by the Holder.  Any Declined Amounts may be utilized by the Company for any purpose not prohibited by the Transaction Documents.

         

        

        
          8

          
            

        

        (5)            RIGHTS UPON EVENT OF DEFAULT.

         
        (a)            Event of Default.  Each of the following events shall constitute an “Event of Default”:

         
        (i)            the Company’s failure to pay to the Holder any amount of Principal when and as due under this Note
              (including, without limitation, upon a mandatory redemption event pursuant to Section 4);

         
        (ii)          

          the Company’s failure to pay to the Holder any amount of Interest or other amounts (other
              than the amounts specified in clause (i)) when and as due under this Note if such failure continues for a period of at least three (3) Business Days;

         
        (iii)         

          the Company or any of its Subsidiaries, pursuant to or within the meaning of Title 11,
              U.S. Code, or any similar Federal, foreign or state law for the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver,
              trustee, assignee, liquidator or similar official (a “Custodian”), (D) makes a general assignment for the benefit of its creditors, (E) commences voluntary discussions with creditors of the Company or its Subsidiaries to reorganize its debts, or (F) admits in writing that it
              is generally unable to pay its debts as they become due;

         
        (iv)          

          a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
              is not vacated, set aside or reversed within sixty (60) days that (A) is for relief against the Company or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or any of its Subsidiaries or (C) orders the
              liquidation of the Company or any of its Subsidiaries;

         
        (v)          

          a final judgment or judgments for the payment of money aggregating in excess of
              $3,000,000 are rendered against the Company or any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within sixty (60) days
              after the expiration of such stay; provided, however, that any judgment which is covered by insurance or an indemnity from a
              credit worthy party shall not be included in calculating the $3,000,000 amount set forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably
              satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company will receive the proceeds of such insurance or indemnity within sixty (60) days of the issuance of such judgment;

         
        (vi)          

          the Company or any Subsidiary breaches any covenant contained in Section 5.16 or Article
              6 of the Note Purchase Agreement;

         
        (vii)         

          the Company or any Subsidiary breaches any covenant in any Transaction Document not
              otherwise described in clause (a)(i), (a)(ii) or (a)(vi) above, and such breach continues for a period of at least thirty (30) days;

         
        (viii)        

          any representation, warranty, certification or statement made by the Company or any
              Subsidiary in any Transaction Document or in any certificate, financial statement or other document delivered pursuant to any Transaction Document is incorrect in any material respect (or in any respect if such representation, warranty,
              certification or statement is not by its terms already qualified as to materiality) when made or deemed made;

         

        

        
          9

          
            

        

        (ix)         a Change of Control occurs other than as a result of the consummation of the Merger;

         
        (x)         

          any lien created by the Security Agreement shall at any time fail to constitute a valid
              and perfected lien on all of the Collateral purported to be secured thereby, subject to no other lien except for Permitted Encumbrances, or the Company or any Subsidiary shall so assert;

         
        (xi)        

          any of the Transaction Documents shall for any reason fail to constitute the valid and
              binding agreement of any party thereto, or the Company or any Subsidiary shall so assert, in each case, unless such Transaction Document terminates pursuant to the terms and conditions thereof without any breach or default thereunder by the
              Company or any Subsidiary party thereto;

         
        (xii)       

          the Guaranty shall cease, for any reason, to be in full force and effect, or the Company
              or any Subsidiary shall so assert in writing;

         
        (xiii)      

          the Company or any Subsidiary shall fail to make any payment (whether of principal,
              interest or otherwise and regardless of amount) in respect of any Indebtedness in excess of $500,000 (“Material Indebtedness”), when and as the same shall become due and payable, after giving effect to any grace period with respect thereto;

         
        (xiv)      
          any event or condition occurs that results in any Material Indebtedness becoming due
              prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause such
              Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;

         
        (xv)       
          there shall occur any material loss, theft, damage or destruction of any Collateral (as
              defined in the Security Agreement) not fully covered by insurance; or

         
        (xvi)      
          the occurrence of a Conversion Failure, if such Conversion Failure continues for a period
              of at least five (5) Business Days.

         
         

        

        
          10

          
            

        

        (b)            Rights Upon Event of Default.  Promptly (and in any event within two (2) Business Days) after the occurrence of an Event of Default, the Company shall deliver written notice thereof (an “Event of Default Notice”) to the Holder and the Majority Investor.  Upon receipt of an Event of Default Notice or
              upon determination that an Event of Default has occurred and is continuing, the Majority Investor (on behalf of all Holders) may, at its option, by notice to the Company and each other Investor (an “Event of Default Acceleration Notice”), declare the Default Amount to
              be due and payable upon demand (an “Acceleration”), provided that upon the occurrence of an Event of Default described in Sections
              5(a)(iii) or 5(a)(iv) above, such Acceleration shall occur automatically without requiring the delivery of an Event of Default Acceleration Notice, such that the Default Amount shall automatically become immediately due and payable without
              any further notice, demand or other action.  For purposes hereof, the “Default Amount” shall equal the entire unpaid Principal balance under this Note, plus all previously accrued and unpaid Interest.  Following an Acceleration (other than an Acceleration based on an Event of Default
              described in Sections 5(a)(iii) and 5(a)(iv) above), the Majority Investor (on behalf of all Holders) shall have the right, but not the obligation, to demand payment in full of the Default Amount at any time prior to the original Maturity
              Date of this Note upon written notice to the Company (a “Demand Notice”).  For the avoidance of doubt, the Majority Investor and its successor and/or assigns has the sole authority to declare an Event of Default and to enforce the Notes on behalf of all Holders.  The Company shall deliver the
              applicable Default Amount to the Holder (x) in the case of an Event of Default under Section 5(a)(iii) or 5(a)(iv), immediately, and (y) in the case of any other Event of Default, within two (2) Business Days after the Company’s receipt of
              the Demand Notice.  In the event the Company fails to deliver the Default Amount as described above, the Majority Investor (on behalf of all Holders) shall be permitted to exercise such rights as a secured party or otherwise hereunder or
              under the other Transaction Documents to the extent permitted by applicable law.

         
         

          

         
        (6)            RIGHTS UPON A CHANGE OF CONTROL.  The Company shall not enter into or be party to a transaction resulting in a Change of Control unless the Successor Entity assumes in writing all of the obligations of the Company under this Note and the
              other Transaction Documents in accordance with the provisions of this Section 6 pursuant to written agreements on or prior to the consummation of such Change of Control, including the agreement to deliver to the Holder of this Note in
              exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note, including, without limitation, having a principal amount and interest rate equal to the
              principal amounts and the interest rates of this Note (the “Successor Note”).  Upon the occurrence of any Change of Control, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Change of Control, the provisions of this Note referring to the
              “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note with the same effect as if such Successor Entity had been
              named as the Company herein, until such time as the Successor Note is delivered.  Upon consummation of a Change of Control as a result of which holders of Common Stock shall be entitled to receive stock, securities, cash, assets or any other
              property with respect to or in exchange for such Common Stock, the Company or Successor Entity, as the case may be, shall deliver to the Holder confirmation that there shall be issued upon conversion of this Note at any time after the
              consummation of such Change of Control, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the conversion of this Note prior to such Change of Control, such shares of stock, securities,
              cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Change of Control had this Note been converted
              immediately prior to such Change of Control, as adjusted in accordance with the provisions of this Note.  The provisions of this Section 6 shall apply similarly and equally to successive Change of Control transactions and shall be applied
              without regard to any limitations on the conversion of this Note.

         

        

        
          11

          
            

        

        (7)            RIGHTS UPON ISSUANCE OF OTHER SECURITIES.

         
        (a)            Record Date.  If the Company takes a record of the holders of Common Stock for the purpose of entitling them to receive a dividend or other distribution payable in Common Stock, Preferred Stock, Options or in Convertible Securities, then such
              record date will be deemed to be the date of the issue or sale of the Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution, as the case may be.

         
        (b)            Adjustment of Conversion Rate upon Subdivision or Combination of Common Stock; Stock Dividends.  If the Company at any time, or from time to time, subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding
              shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced.  If the Company at any time, or from time to time, combines (by combination, reverse
              stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased.  Any adjustment
              under this Section 7(b) shall become effective at the close of business on the date the subdivision or combination becomes effective or, in the case of a stock dividend, the date of such event.

         
        (c)            (i)  Adjustment

                of Conversion Rate upon Cash Dividends and Distributions.  If the Company at any time, or from time to time, pays a dividend or makes a distribution in
              cash to the record holders of any class of Common Stock, then immediately after the close of business on the day that the Common Stock trades ex-distribution, the Conversion Price then in effect shall be reduced to an amount equal to the
              product of (i) the Conversion Price in effect immediately prior to such dividend or distribution and (ii) the quotient determined by dividing (A) the Closing Sale Price of the Common Stock on the day that the Common Stock trades
              ex-distribution by (B) the sum of (1) the Closing Sale Price of the Common Stock on the day that the Common Stock trades ex-distribution plus (2) the amount per share of such dividend or distribution.  The Company shall not be required to
              give effect to any adjustment in the Conversion Price pursuant to this Section 7(c) unless and until the net effect of one or more adjustments (each of which shall be carried forward until counted toward an adjustment), determined in
              accordance with this Section 7(c), shall have resulted in a change of the Conversion Price by at least 1%, and when the cumulative net effect of more than one adjustment so determined shall be to change the Conversion Price by at least 1%,
              such change in the Conversion Price shall then be given effect.

         
        (ii)            Adjustment of Conversion Rate upon Distributions of Capital Stock, Indebtedness or Other Non-Cash
                Assets.  If the Company at any time, or from time to time, distributes any shares of capital stock of the Company (other than Common Stock), evidences
              of indebtedness or other non-cash assets (including securities of any person other than the Company but excluding (1) dividends or distributions paid exclusively in cash or (2) dividends or distributions referred to in Section 7(b)) to the
              record holders of any class of Common Stock, then the Conversion Price then in effect shall be reduced to an amount equal to the product of (A) the Conversion Price then in effect and (B) a fraction of which the numerator shall be the Closing
              Sale Price per share of the Common Stock on the record date fixed for determination of stockholders entitled to receive such distribution less the fair market value on such record date (as determined by the Board of Directors) of the portion
              of the capital stock, evidences of indebtedness or other non-cash assets so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding on the record date) and of which the
              denominator shall be the Closing Sale Price per share of the Common Stock on such record date.

         

        

        
          12

          
            

        

        The foregoing notwithstanding, the foregoing adjustments shall not constitute a waiver or consent to a transaction that is
            not otherwise permitted by the Note Purchase Agreement.

         
        (d)            Other Events; Other Dividends and Distributions.  If any event occurs of the type contemplated by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation
              rights, phantom stock rights or other rights with equity features, other than pursuant to the Company’s stock incentive plans as in effect on the Issuance Date), then the Company’s Board of Directors shall, in good faith, make an adjustment
              in the Conversion Price so as to protect the rights of the Holder under this Note; provided that no such adjustment will increase the Conversion Price as otherwise determined pursuant to this Section 7.

         
        (e)            Notice of Adjustment.  Whenever the Conversion Price is adjusted pursuant to this Section 7, the Company shall promptly mail notice of such adjustment to the Holder, which notice shall set forth the Conversion Price after adjustment,
              the date on which such adjustment became effective and a brief statement of the facts resulting in such adjustment.

         
         

          

         
        (8)            NONCIRCUMVENTION.  The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger,
              scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the
              provisions of this Note and take all action as may be required to protect the rights of the Holder of this Note.

         
         

          

         
        (9)            RESERVATION OF AUTHORIZED SHARES.

         
        (a)            Reservation.  The Company shall at all times reserve out of its authorized and unissued shares of Common Stock a number of shares of Common Stock and (if applicable) Preferred Stock equal to 120% of the Conversion Rate with respect to the full
              Conversion Amount of this Note, solely for the purpose of effecting the conversion of this Note (the “Required Reserve Amount”).

         
        (b)            Insufficient Authorized Shares.  If at any time while this Note remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required
              Reserve Amount (an “Authorized Share Failure”), then the Company shall take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount.  Without limiting the generality of the
              foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than seventy-five (75) days after the occurrence of such Authorized Share Failure, the Company shall hold a
              meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock.  In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its commercially
              reasonable efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

         

        

        
          13

          
            

        

        (10)            VOTING RIGHTS.  The Holder shall have no voting rights in its capacity as the Holder of this Note, except as required by law, including, but not limited to, the General Corporation Law of the State of Delaware, and
              as expressly provided in this Note, the Company’s Charter or any of the other Transaction Documents.

         
         

          

         
        (11)            OTHER COVENANTS.

         
        (a)            Listing. 
              The Company shall promptly secure the listing of all of the Common Stock issuable upon conversion of this Note upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject
              to official notice of issuance) and shall maintain such listing of all Registrable Securities from time to time issuable under the terms of the Transaction Documents.  The Company shall maintain the Common Stock’s authorization for quotation
              on the principal exchange or market in which it is listed.  Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the principal
              market in which it is listed, other than in connection with a transfer of listing to an Eligible Market or the transactions contemplated by the Merger Agreement.  The Company shall pay all fees and expenses in connection with satisfying its
              obligations under this Section 11(a).

         
        (b)            Quarterly Report of Outstanding Principal and Interest.  The Company covenants to deliver to the Holder, upon request, within 30 days following the end of each calendar quarter while any portion of this Note remains outstanding, a written
              statement signed by an authorized officer of the Company certifying (i) the amount of the outstanding Principal balance of this Note, (ii) all accrued but unpaid Interest on such outstanding Principal balance, and (iii) all remaining
              scheduled payments of Interest through the Maturity Date, in each case as of the end of such calendar quarter.

         
        (c)            Waiver of Usury Defense.  The Company covenants (to the extent that it may lawfully do so) that it shall not assert, plead (as a defense or otherwise) or in any manner whatsoever claim (and shall actively resist any attempt to
              compel it to assert, plead or claim) in any action, suit or proceeding that the interest rate on this Note violates present or future usury or other laws relating to the interest payable on any Indebtedness and shall not otherwise avail
              itself (and shall actively resist any attempt to compel it to avail itself) of the benefits or advantages of any such laws.

         
        (d)            Registration Rights.  The Company agrees that the Holder, as a holder of Registrable Securities (as defined in the Registration Rights Agreement, dated as of the Issuance Date, by and among the Company and the Investors identified
              therein, as may be amended and/or restated from time to time (the “Registration Rights Agreement”)), is entitled to the benefits of the Registration Rights Agreement.

         

        

        
          14

          
            

        

        (12)            VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTE.  Any provision of this Note may be amended, waived or modified only in accordance with Section 7.9 of the Note Purchase Agreement.  Any amendment, waiver, modification or consent with
              respect to this Note that is made pursuant to Section 7.9 of the Note Purchase Agreement shall automatically, without any further action on the part of any party, be deemed to apply to each other Note and any changes affected thereby shall be
              incorporated therein mutatis mutandis.

         
         

          

         
        (13)            TRANSFER.  Prior to the Trigger Date, the Holder may not offer for sale, sell, assign or transfer this Note, the shares of Common Stock issuable upon conversion of this Note, or the shares of Preferred Stock issuable upon
              conversion of this Note without the prior written approval of the Company, provided that the Holder may transfer this Note or such Common Stock or such Preferred Stock (i) to an Affiliate, (ii) in connection with a pledge or assignation of
              security interest in all or any portion of the Note, such Common Stock or such Preferred Stock to secure obligations of the Holder, and (iii) following and in connection with the insolvency of the Holder.  Upon and after the Trigger Date,
              this Note and the shares of Common Stock and Preferred Stock issuable upon conversion of this Note may not be offered for sale, sold, transferred or assigned (i) in the absence of an effective registration statement for this Note or the
              shares of Common Stock or Preferred Stock issuable upon conversion of this Note, as applicable, or (ii) unless the Holder provides the Company with assurance (reasonably satisfactory to the Company) that such Note or the shares of Common
              Stock and/or Preferred Stock issuable upon the conversion of this Note can be sold, assigned or transferred pursuant to Rule 144 or such other exemption from registration as may be available.  Upon any sale, transfer or assignment of this
              Note permitted pursuant to this Section 13 (including any sale, transfer or assignment to an Affiliate of the Holder), and as a condition to such sale, transfer or assignment, the purchaser, transferee or assignee, as applicable (the “New Holder”), shall execute and deliver (x) a joinder to the Note
              Purchase Agreement in form and substance reasonably acceptable to the other Investors pursuant to which the New Holder agrees to comply with the Investors’ obligations under this Note and the Note Purchase Agreement and (y) a joinder to the
              Security Agreement pursuant to which the New Holder agrees to comply with the Investors’ and the Secured Parties’ obligations under the Security Agreement, including with respect to Section 7.6 thereof (Indemnification).

         
         

          

         
        (14)            REISSUANCE OF THIS NOTE.

         
        (a)            Transfer. 

              This Note is issued in registered form pursuant to Treasury Regulations section 1.871-14(c)(1).  The Company (or its agent) will maintain a record of the Holder of this Note, and of Principal and Interest hereon as required by that
              regulation.  This Note may be transferred or otherwise assigned only by surrender of this Note and issuance of a new Note in accordance with this Section 14, and neither this Note nor any interest herein may be sold, transferred or assigned
              to any Person except upon satisfaction of the conditions specified in this Section 14.  If this Note is to be transferred or assigned, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver
              upon the order of the Holder a new Note (in accordance with Section 14(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is
              being transferred, a new Note (in accordance with Section 14(d)) to the Holder representing the outstanding Principal not being transferred.  The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of
              the provisions of Section 3(c)(iv) following conversion of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.

         

        

        
          15

          
            

        

        (b)            Lost, Stolen or Mutilated Note.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification
              undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 14(d))
              representing the then outstanding Principal.

         
        (c)            Note Exchangeable for Different Denominations.  This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 14(d) and in Principal amounts of at least
              $100,000) representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender.

         
        (d)            Issuance of New Notes.  Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note,
              the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 14(a) or Section 14(c), the Principal designated by the Holder which, when added to the principal represented by the other new Notes issued in
              connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the
              same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued Interest on the Principal and Interest of this Note, from the Issuance Date.

         
         

          

         
        (15)            REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law
              or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of
              this Note.  Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be
              subject to any other obligation of the Company (or the performance thereof).  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach
              may be inadequate.  The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to seek an injunction restraining any breach, without the
              necessity of showing economic loss and without any bond or other security being required.

         

          

        
          16

          
            

        

        (16)            PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS.  If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise
              takes action to collect amounts due under this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’ rights and
              involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, but
              not limited to, reasonable attorneys’ fees and disbursements.

         
         

          

         
        (17)            CONSTRUCTION; HEADINGS.  This Note shall be deemed to be jointly drafted by the Company and the Holder of this Note and shall not be construed against any person as the drafter hereof.  The headings of this Note are for
              convenience of reference and shall not form part of, or affect the interpretation of, this Note.

         
         

          

         
        (18)            FAILURE OR INDULGENCE NOT WAIVER.  No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power,
              right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

         
         

          

         
        (19)            DISPUTE RESOLUTION.  In the case of a dispute as to the arithmetic calculation of the Conversion Rate, the Company shall submit the disputed arithmetic calculations via facsimile within three (3) Business Days of receipt,
              or deemed receipt, of the Conversion Notice, as the case may be, to the Holder.  If the Holder and the Company are unable to agree upon such calculation within five (5) Business Days of such disputed arithmetic calculation being submitted to
              the Holder, then the Company shall, within one Business Day submit via facsimile the disputed arithmetic calculation of the Conversion Rate to the Company’s independent, outside accountant.  The Company, at the Company’s expense, shall cause
              the accountant, as the case may be, to perform the calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed calculations.  Such accountant’s calculation, as
              the case may be, shall be binding upon all parties absent demonstrable error.

         
         

          

         
        (20)            NOTICES; PAYMENTS.

         
        (a)            Notices. 
              Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with the Note Purchase Agreement, including Section 7.8(a) thereof.  The Company shall provide the Holder with
              prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefor.  Without limiting the generality of the foregoing, the Company will give written notice to
              the Holder of any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment.

         

        

        
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        (b)            Payments.  Whenever any
              payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service
              to such Person at such address as previously provided to the Company in writing (which address, in the case of each of the initial Holder of this Note, shall initially be as set forth on the signature page to the Note Purchase Agreement);
              provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions. 
              Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day.

         
         

          

         
        (21)            CANCELLATION.  After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for
              cancellation and shall not be reissued.

         
         

          

         
        (22)            WAIVER OF NOTICE.  To the extent permitted by law, the Company hereby waives demand, notice, presentment, protest and all other demands and notices (other than the notices expressly provided for in this Note) in
              connection with the delivery, acceptance, default or enforcement of this Note and the Note Purchase Agreement.

         
         

          

         
        (23)            GOVERNING LAW; SUBMISSION TO JURISDICTION; JURY TRIAL WAIVER.

         
        (a)            Governing Law.  This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York,
              without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.

         
        (b)            Submission to Jurisdiction.  THE COMPANY AND THE HOLDER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT ALL ACTIONS
              OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS NOTE OR THE OTHER TRANSACTION DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS EXCEPT TO THE EXTENT NECESSARY TO ENFORCE RIGHTS AGAINST THE COLLATERAL.  THE COMPANY AND THE HOLDER HERETO EXPRESSLY
              SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS.  THE COMPANY AND THE HOLDER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY
              BE MADE UPON SUCH PARTY BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH PARTY AT THE ADDRESS SET FORTH IN THIS NOTE AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

        (c)            Jury Trial Waiver.  THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
              THEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  THE COMPANY AND THE HOLDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
              RELIED ON THE WAIVER IN ENTERING INTO THIS NOTE AND THE OTHER TRANSACTION DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  THE COMPANY AND THE HOLDER WARRANTS AND REPRESENTS THAT EACH HAS HAD
              THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

         

        

        
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        (24)            CERTAIN DEFINITIONS.  For purposes of this Note, the following terms shall have the following meanings:

         
        (a)            “Alternative Transaction” means: any (i) direct or indirect acquisition of assets of the Company or any of its Subsidiaries (including any voting
            equity interests of the Company’s subsidiaries) equal to 10% or more of the fair market value of the Company’s consolidated assets or to which 10% or more of the Company’s net revenues or net income on a consolidated basis are attributable,
            (ii) direct or indirect acquisition of 10% or more of any class of capital stock, other equity securities or voting power of the Company (including, for the avoidance of doubt, phantom equity and quasi-equity), (iii) tender offer or exchange
            offer that if consummated would result in any person beneficially owning 10% or more of any class of capital stock, other equity securities or voting power of the Company (including, for the avoidance of doubt, phantom equity and quasi-equity),
            (iv) merger, consolidation, other business combination or similar transaction involving the Company or any of its subsidiaries, pursuant to which such person would own 10% or more of the consolidated assets, net revenues or net income of the
            Company and its subsidiaries, taken as a whole, (v) debt financing, including debt that is convertible into equity, in excess of $10,000,000 or convertible into more than 20% of the Company’s equity, or (vi) liquidation or dissolution (or the
            adoption of a plan of liquidation or dissolution) of the Company or the declaration or payment of an extraordinary dividend (whether in cash or other property) by the Company; in all cases of clauses (i)-(v) where such transaction is to be
            entered into with any person or group of persons other than Majority Investor or its Affiliates.

         
        (b)            “Alternative Transaction Conversion Time” means, with respect to an Alternative Transaction, immediately prior to the consummation of such Alternative
              Transaction.

         
        (c)            “Automatic Conversion Time” means, if any, the earlier of (i) immediately prior to the Effective Time (as defined in the Merger Agreement) and (ii)
              immediately prior to (but subject to) the consummation of a Superior Transaction.

         
        (d)            “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law
              to remain closed.

         

        

        
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        (e)            “Capital
              Expenditures” means, with respect to the Company and its Subsidiaries, as may be applicable, all expenditures (by the expenditure of cash or the incurrence of
              Indebtedness) by the relevant entities during any period for any fixed or capital assets or improvements or for replacements, substitutions or additions thereto that are required to be capitalized and shown on the consolidated and
              consolidating balance sheet of the Company and its Subsidiaries in accordance with GAAP and consistent with methodologies and assumptions used in projections identified in Section 4.2(e) of the Note Purchase Agreement.

         
        (f)            “Casualty Event” means, with respect to any property (including any interest in property) of the Company or any Subsidiary, any loss of, damage to, or
              condemnation or other taking of, such property for which the Company or such Subsidiary received insurance proceeds, proceeds of a condemnation award or other compensation.

         
        (g)            “Change of Control” means an event or series of events by which, directly or indirectly:

         
        (i)            any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but
              excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in
              Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or
              only after the passage of time (such right, an “option right”)), other than the Investors, Loeb Group, or Osmium, directly or indirectly, of 30% or more of the equity securities of the Company entitled to vote for members of the board of
              directors or equivalent governing body of the Company on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right);

         
        (ii)            during any consecutive twelve-month period, a majority of the members of the Board of Directors of
              the Company cease to be composed of individuals (x) who were members of that board or equivalent governing body on the first day of such period, (y) whose election or nomination to that board or equivalent governing body was approved by
              individuals referred to in clause (x) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body then still in office or (z) whose election or nomination to that board or other
              equivalent governing body was approved by individuals referred to in clauses (x) and (y) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body then still in office;
              provided that a change in the members of the Board of Directors pursuant to Section 5.1 of the Note Purchase Agreement shall not constitute a Change of Control; or

         
        (iii)            any Person or two or more Persons acting in concert, other than the Investors, Loeb Group, or
              Osmium, shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, or control
              over the equity securities of the Company entitled to vote for members of the Board of Directors of the Company on a fully-diluted basis (and taking into account all such securities that such Person or group has the right to acquire pursuant
              to any option right) representing 30% or more of the combined voting power of such securities; or

         

        

        
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        (iv)            if the Loeb Group shall cease to be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
              under the Securities Exchange Act of 1934) of at least 30% of the total voting power of the equity securities of the Company entitled to vote for the members of the Board of Directors of the Company, provided, however, that the provisions of
              this clause (iv) shall not be effective upon or following either (x) the closing of the Merger or (y) the closing of an Alternative Transaction.

         
        (h)            “Closing Sale Price” on any date means the closing sales price per share (or if no closing sales price is reported, the average of the closing bid and ask
              prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on such date as reported on the Nasdaq Stock Market or, if the Common Stock is not then listed on the Nasdaq Stock Market,
              on the principal other national securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a national securities exchange, on the principal other market on which the Common Stock is then
              traded.  If the Common Stock is not so listed, the Closing Sale Price will be an amount determined in good faith by the Board of Directors to be the fair value of the Common Stock.

         
        (i)            “Common Stock” means the shares of the Company’s common stock, par value $0.01 per share, and any other securities of the Company which may be issued or
              issuable with respect to, in exchange for, or in substitution of, such shares of common stock (including without limitation, by way of recapitalization, reclassification, reorganization, merger or otherwise).

         
        (j)            “Consolidated EBITDA” means, with respect to the Company and its Subsidiaries, on a consolidated basis, for any period, without duplication, an amount
              equal to:

         
        (i)            Consolidated Net Income for such period; plus

         
        (ii)            the sum of, without duplication, (A) any provision for taxes based on income, (B) Consolidated
              Interest Expense, (C) the amount of non-cash charges (including depreciation and amortization) and non-cash losses, in each case, which do not represent a cash item in such period or any future period and to the extent included in the
              calculation of Consolidated Net Income of the Company and its Subsidiaries for such period in accordance with GAAP (including without limitation non-cash compensation expense and charges incurred in connection with management or employee
              stock ownership or option plans, in each case approved by the board of directors or equivalent governing body of the Company and its Subsidiaries), and (D) other non-recurring charges for such period in an amount not to exceed $200,000 as
              approved in writing by the Majority Investor; minus

         
        (iii)            the sum of, without duplication, (A) income tax credits, (B) interest income, and (C) any non-cash
              gains not generated in the ordinary course of business that have been added in determining Consolidated Net Income, in each case to the extent included in the calculation of Consolidated Net Income for such period in accordance with GAAP.

         

        

        
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        (k)            “Consolidated
              Interest Expense” means, for any period, for the Company and its Subsidiaries on a consolidated basis the sum of (a) all interest, premium payments, debt
              discount, fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case, to the extent
              treated as interest in accordance with GAAP, and (b) the portion of rent expense of the Company and its Subsidiaries with respect to such period under capital leases that is treated as interest in accordance with GAAP.

         
        (l)            “Consolidated Net Income” means, at any date of determination for any period of determination, the net income (or loss) of the Company and its
              Subsidiaries, on a consolidated basis for such period; provided that Consolidated Net Income shall exclude (i) extraordinary gains and extraordinary losses for such period, (ii) the net income of any Subsidiary during such period to the
              extent that the declaration or payment of dividends or similar distributions by such Subsidiary of such income is not permitted by operation of the terms of its Governing Documents or any agreement, instrument or law applicable to such
              Subsidiary during such period and is not actually distributed during such period to the Company, except that the Company’s equity in any net loss of any such Subsidiary for such period shall be included in determining Consolidated Net Income,
              and (iii) any income (or loss) for such period of any Person if such Person is not a Subsidiary, except the Company’s equity in the net income of any such Person for such period shall be included in Consolidated Net Income up to the aggregate
              amount of cash actually distributed by such Person during such period to the Company or a Subsidiary as a dividend or other distribution (and in the case of a dividend or other distribution to a Subsidiary, such Subsidiary is not precluded
              from further distributing such amount to Intersections as described in clause (ii) of this proviso).

         
        (m)            “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any
              indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such
              liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

         
        (n)            “Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for
              Common Stock.

         
        (o)            “Eligible Market” means The New York Stock Exchange, Inc.  (“NYSE”), including the NYSE American, or The Nasdaq Stock Market, or their successors.

         
        (p)            “Excess Cash Flow” means, for any fiscal year, the sum without duplication of:

         
        (i)            Consolidated EBITDA for such fiscal year, minus

         

        

        
          22

          
            

        

        (ii)            the sum, without duplication of:

         
        (A)            (x) the amount of Consolidated Interest Expense for the Company and its Subsidiaries on a
              consolidated basis actually paid in cash for such fiscal year plus (y) scheduled principal amortization and other mandatory repayments of Indebtedness actually made for such fiscal year; plus

         
        (B)            The amount of any cash income tax expense actually paid in cash to the extent added back to
              Consolidated EBITDA with respect to such fiscal year; plus

         
        (C)            The sum of Capital Expenditures made during such fiscal year.

         
        (q)            “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

         
        (r)            “Extraordinary Receipt” means any cash received by or paid to the Company or any Subsidiary not in the ordinary course of business, including, tax
              refunds, pension plan reversions, proceeds of insurance, condemnation awards (and payments in lieu thereof), indemnity payments (including, without limitation, in connection with any acquisition) and any purchase price adjustments (including,
              without limitation, in connection with any acquisition); provided,
            however, that an Extraordinary Receipt shall not include cash
              receipts from (i) proceeds of insurance, or condemnation awards (or payments in lieu thereof) to the extent that such proceeds or awards or payments arose as a result of a Casualty Event and are applied to prepay the Obligations in accordance
              with Section 4(b)(ii), (ii) proceeds of any asset disposition of Collateral to the extent that such proceeds or payments arose as a result of an asset disposition and are applied in accordance with of Section 4(b)(iv), or (iii) proceeds of
              Permitted Indebtedness.

         
        (s)            “GAAP” means United States generally accepted accounting principles, consistently applied, or successor conventions.

         
        (t)            “Indebtedness” of any Person means, without duplication (a) all indebtedness for borrowed money, (b) all obligations issued, undertaken or assumed as the
              deferred purchase price of property or services including, without limitation, “capital leases” in accordance with GAAP (other than trade payables entered into in the ordinary course of business), (c) all reimbursement or payment obligations
              with respect to letters of credit, surety bonds and other similar instruments, (d) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of
              property, assets or businesses, (e) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds
              of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (f) all monetary obligations under any leasing or similar
              arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (g) all indebtedness referred to in clauses (a) through (f) above secured by (or for which the holder of such
              Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any
              Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (h) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds
              referred to in clauses (a) through (k) above.

         

        

        
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        (u)            “Loeb” means Loeb Holding Corporation.

         
        (v)            “Loeb Group” means Loeb and (a) any Affiliate of Loeb (collectively, the “Loeb Affiliates”), (b) any stockholder, director, officer or employee of Loeb or any Loeb Affiliate (collectively, the “Loeb Associates”), (c) the heirs, executors, administrators,
              testamentary trustees, legatees or beneficiaries of any Loeb Associates, and (d) any trusts or other estate planning vehicles, the beneficiaries of which, or a corporation or unincorporated entity, the stockholders or equityholders of which,
              include primarily Loeb, Loeb Affiliates, Loeb Associates, their spouses, their lineal descendants and the spouses of their lineal descendants and any other members of their families.

         
        (w)            “Net Cash Proceeds” means, with respect to any event or transaction described in Section 4(b), the cash proceeds received in respect of such event or
              transaction, including (a) any cash received in respect of any non-cash proceeds (including, without limitation, the monetization of notes receivables), but only as and when received or (b) in the case of a Casualty Event, insurance proceeds,
              proceeds of a condemnation award or other compensation payments, in each case, net of the sum of (w) all reasonable fees and out-of-pocket expenses (including appraisals, and brokerage, legal, advisory, banking, title and recording tax
              expenses and commissions) paid by the Company or a Subsidiary to third parties (other than Affiliates) in connection with such event (but excluding amounts payable hereunder), (x) transfer or similar taxes, (y) reserves for indemnities, until
              such reserves are no longer needed, and (z) in the case of a sale or other disposition of an asset described Section 4(b)(iv) the amount of all payments required to be made by the Company or any Subsidiary (or to establish an escrow for the
              repayment of) on any Indebtedness by the terms thereof (other than the obligations under the Transaction Documents) secured by such asset to the extent the lien in favor of the holder of such Indebtedness is permitted under the Note Purchase
              Agreement; provided that such payments made shall not exceed the amount of cash proceeds received by the Company or such Subsidiary or the aggregate amount of such Indebtedness.

         
        (x)            “Optional Trigger Date” means the earlier of (i) immediately prior to the consummation of an Alternative Transaction, (ii) the date that is six (6) months
              after the Closing Date (April 30, 2019), and (iii) a determination by the Company’s Board of Directors that the Company is no longer pursuing a process to sell the Company.

         
        (y)            “Options” means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

         
        (z)            “Osmium” means Osmium Partners, LLC.

         

        

        
          24

          
            

        

        (aa)            “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a
              government or any department or agency thereof.

         
        (bb)            “Pro Rata” means, as of the date of determination:

         
        (i)            with respect to the number of shares of Common Stock that the Company can issue to the Holder in
              connection with a conversion of this Note prior to the Effectiveness Date, the number of shares equal to the product of 6,068,940 multiplied by the percentage equal to (x) the total Principal amount under this Note over (y) the aggregate
              principal amount of all outstanding Notes; and

         
        (ii)            with respect to Holder’s right to receive payments of Principal and interest hereunder, the
              percentage equal to (x) the total Principal amount under this Note over (y) the aggregate principal amount of all outstanding Notes.

         
        (cc)            “Reclassification” means any reclassification or change of shares of Common Stock issuable upon conversion of this Note (other than a change in par value,
              or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination).

         
        (dd)            “Rule 144” means Rule 144 promulgated under the Securities Act and any successor provision thereto.

         
        (ee)            “SEC” means the United States Securities and Exchange Commission.

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

         
        (gg)            “Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Change of Control or the person with which such
              Change of Control transaction shall have been made; provided, for the avoidance of doubt, such Successor Entity encompass all or substantially all of the business of the Company.  In the event that the Person resulting from or surviving any
              Change of Control is a Subsidiary, Successor Entity shall be the parent of such Subsidiary.

         
        (hh)            “Superior Transaction” means an acquisition of the Company (other than the Offer, the Merger and the other transactions contemplated by the Merger
              Agreement): (i) in which all stockholders of the Company receive consideration for their shares solely in the form of cash (other than in the case of David McGough, Loeb and/or Michael Stanfield, if any one or more of the foregoing persons
              elect to roll their shares of Company stock in the acquisition for stock of the Successor Entity); and (ii) which is in respect of a Superior Proposal that the Company validly accepted in accordance with the terms of the Merger Agreement and
              for which the Company validly terminated the Merger Agreement pursuant to Section 8.1(d)(ii) therein.

         
        (ii)            “Trigger Date” means the earlier of the Automatic Conversion Time and the Optional Trigger Date.

         

            

        
          25

          
            

        

        [Signature Page Follows]

         

          

         

          

         

          

        
          26

          
            

        

        IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date set out
            above.

         
        
           
            	
                     

                  	
                    INTERSECTIONS INC. 

                  
	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                    By:

                  	
                     

                  
	
                     

                  	
                    Name: 

                  	
                     

                  
	 	
                    Title:

                  	
                     

                  

            

            

             

        

                                                                                      

          

        

        
          27

          
            

        

        EXHIBIT I

         
        INTERSECTIONS INC.

            CONVERSION NOTICE

         
        Reference is made to the Senior Secured Convertible Note (the “Note”) issued to the undersigned by Intersections Inc., a Delaware corporation (the “Company”).  In accordance with and pursuant to
            the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock par value $0.01 per share (the “Common Stock”) and shares of Preferred Stock of the Company[, as of the Conversion Date].  [This notice is conditioned upon the effectiveness, on the Conversion Date, of [the effectiveness and consummation of [Event] (the “Condition”), and this notice may, pursuant to Section 3(c)(i)(A) of
            the Note, be revoked by the Holder on or prior to the Conversion Date in the event the Condition has not been satisfied on or prior to such date.]

          
        
          	
                  Date of Conversion (the “Conversion Date”):

                	 

          

             

          	
                  Aggregate Conversion Amount to be converted into Common Stock:

                	 

          

             

          	
                  Aggregate Conversion Amount to be converted into Preferred Stock:

                	 

          

             

          	
                  Please confirm the following information:

                	 

          

             

          	
                  Conversion Price:

                	 

          

             

          	
                  Number of shares of Common Stock to be issued:

                	 

          

             

          	
                  Number of shares of Preferred Stock to be issued:

                	 

          

             

          	
                  Please issue the Common Stock and/or the Preferred Stock into which the Note is being converted in the following name and to the
                      following address:

                

          

             

          	
                  Issue to:

                	 
	 	 
	 	 

          

             

          	
                  Facsimile Number:

                	 

          

             

          	
                  Authorization:

                	 

          

             

          	
                  By:

                	 

          

             

          	
                  Title:

                	 

          

             

          	
                  Dated:

                	 

          

             

          	
                  Account Number:

                	 

          	
                  (if electronic book entry transfer)

                	 

          

             

          	
                  Transaction Code Number:

                	 

          	
                  (if electronic book entry transfer)

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