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EXHIBIT 10.1

THIS AGREEMENT CONTAINS A MANDATORY ARBITRATION PROVISION
AND IS SUBJECT TO BINDING ARBITRATION
SONOCO PRODUCTS COMPANY
CHANGE-IN-CONTROL PLAN
INTRODUCTION AND OBJECTIVES
Sonoco Products Company has adopted this Sonoco Products Company Change-in-Control Plan to provide management continuity by inducing selected employees to remain in the employ of the Company or one of its Subsidiaries pending a proposed Change in Control by providing such employees with severance protection under the circumstances covered by the Plan.  The objective of the Plan is to help assure that, in the event of a possible Change in Control, in addition to the Participant’s regular duties, such Participant may be available to be called upon to assist in the objective assessment of such proposal, to advise management and the Board of Directors of the Company as to whether such proposal would be in the best interests of the Company and its shareholders or one of its Subsidiaries, and to take such other actions as management or the Board might determine reasonably appropriate and in the best interests of the Company and its shareholders.
The Plan, as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), is intended to meet all applicable requirements of ERISA and the regulations thereunder, as in effect from time to time. The Plan is intended to be and shall be administered and maintained as an unfunded “welfare plan” under Section 3(1) of ERISA, and is intended to be exempt from the reporting and disclosure requirements of ERISA as an unfunded welfare plan for a select group of management or highly compensated employees.
The establishment of the Plan shall not affect or modify the rights of a Participant with respect to change-in-control benefits under any individual equity award agreement with a Participant in effect prior to the Effective Date of the Plan (each, a “Prior Equity Award Agreement”). In no event may a Participant receive change-in-control benefits under both this Plan and a Prior Equity Award Agreement (as relates to equity awards covered thereby), or any other arrangement with the Company, except to the extent the Board of Directors expressly determines otherwise. If a Participant has a Prior Equity Award Agreement, and such Prior Equity Award Agreement provides for change-in-control benefits relating to the equity award(s) covered thereby, to the extent the events giving rise to the change-in-control benefits are covered by such Prior Equity Award Agreement, such Prior Equity Award Agreement and not this Plan shall govern the change-in-control benefits with respect to such equity award(s). In addition, the establishment of this Plan does not nullify or replace any non-competition, release of claims or other agreements between the Company and any of its employees or former employees entered into in connection with any such Agreements.

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ARTICLE I
DEFINITIONS AND INTERPRETATIONS
Section 1.01 Definitions. Capitalized terms used in this Plan shall have the following meanings, except as otherwise provided or as the context of the Plan otherwise requires:
“16(b) Officer” shall mean any employee who is designated an “officer” within the meaning of Section 16(b) of the Exchange Act by annual resolution of the Board of Directors.
“Administrator” shall mean the Executive Compensation Committee of the Company’s Board of Directors or any delegate of the Executive Compensation Committee acting within the authority delegated to it pursuant to Section 5.04.
“Annual Cash Plan” shall have the meaning set forth in Section 3.01(a)(i).
“Base Salary” shall mean the Participant’s annualized base pay in effect immediately before the Termination Date. For the avoidance of doubt, “Base Salary” shall include amounts earned in the applicable period the payment of which is deferred to a future year but shall not include amounts earned in prior periods the payment of which is deferred to the applicable period, and “Base Salary” also shall not include any bonus, commission, incentive or retention payments, restricted stock, restricted stock units, performance units, stock appreciation rights, stock options, or other stock related rights, or other forms of employee benefits such as vacation, insurance, health or medical benefits, disability benefits, workers’ compensation, supplemental unemployment benefits, and post-employment or retirement benefits (including but not limited to compensation, pension, health, medical or life insurance).
“Benefit Plan” shall mean any employee benefit plan (including any employee benefit plan within the meaning of Section 3(3) of ERISA), program, arrangement or practice maintained, sponsored or provided by the Company or any of its Subsidiaries, including those relating to compensation, bonuses, profit-sharing, stock option, or other stock related rights or other forms of incentive or deferred compensation, vacation benefits, insurance coverage (including any self-insured arrangements), health or medical benefits, disability benefits, workers’ compensation, supplemental unemployment benefits, severance benefits and post-employment or retirement benefits (including compensation, pension, health, medical or life insurance or other benefits).
“Board” shall mean the Board of Directors of the Company.
“Cause” shall mean the following with respect to a Participant: 
(a) conviction or a plea of guilty or nolo contendere to a felony or other serious crime involving moral turpitude; 
(b) willful misconduct that is materially injurious to the Company or any of its Subsidiaries (whether financially, reputationally or otherwise); 
(c)  willful and continued failure to perform Participant’s duties and responsibilities (other than as a result of physical or mental illness or injury) after receipt of written notice from the Administrator of such failure, which failure shall not have been cured within 30 days of such notice (to the extent cure is possible);

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(d) falsification of records maintained by the Company or one or more of its Subsidiaries; 
(e) gross negligence in managing the material risks of the Company or its Subsidiaries; 
(f) material breach of Participant’s restrictive covenants after receipt of written notice from the Administrator of such breach, which breach shall not have been cured within 30 days of such notice (to the extent cure is possible); or
(g) material violation of law or the Company’s code of conduct or insider trading policy, any of which results in material financial or reputational harm to the Company.
Determination of Cause shall be made by the Administrator, in its sole and exclusive discretion.
“Change in Control” shall mean “a change in the ownership or effective control,” or in “the ownership of a substantial portion of the assets of” the Company, within the meaning of Section 409A, and shall include any of the following events as such concepts are interpreted under Section 409A:
(a) the date on which a majority of members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or
(b) the acquisition, by any one Person, or by Persons acting as a group, or by a corporation owned by a group of Persons that has entered into a merger, acquisition, consolidation, purchase, stock acquisition, asset acquisition, or similar business transaction with the Company, of:
(i) ownership of stock of the Company, that, together with any stock previously held by such Person or group, constitutes more than fifty percent (50%) of either (i) the total fair market value or (ii) the total voting power of the stock of the Company;
(ii) ownership of stock of the Company possessing thirty percent (30%) or more of the total voting power of the Company, during the twelve-month period ending on the date of such acquisition; or
(iii) assets from the Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Company during the twelve-month period ending on the date of such acquisition; provided, however, that any transfer of assets to a related person as defined under Section 409A shall not constitute a Change in Control.
“Change-in-Control Period” shall mean the period beginning on the date of a Change in Control and ending on the date twenty-four (24) months following such Change in Control.
“Change-in-Control Severance Payment” shall have the meaning set forth in Section 3.01(a).
“Code” shall mean the Internal Revenue Code of 1986, as amended in the past and the future. Reference in this Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section.

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“Company” shall mean Sonoco Products Company and its Successors and assigns.
“Comparable Position” shall mean a job position with the Company or any of its Subsidiaries, or any of their respective Successors and assigns, the principal work location of which does not satisfy the conditions of subsection (c) of the definition of “Good Reason” and which position provides pay and benefits that as a whole are substantially equivalent to, or better than, the Participant’s aggregate pay and benefits with the Company at the time of the Termination of Employment when taking into account the Participant’s base salary, target bonus opportunity, incentive pay and equity opportunities, health and welfare benefits, severance protection, and other benefits.
“Compensation Committee” shall mean the Executive Compensation Committee of the Board or any successor committee of the Board with similar responsibilities.
“Corporate Officer” shall mean each person designated as a “corporate officer” of the Company by resolution of the Board of Directors and holding such position at the time a Change in Control occurs.
“Disability” shall mean, when used with reference to any Participant, long term disability as defined by the applicable long term disability plan maintained by the Company or one of its Subsidiaries under which the Participant is covered.
“Effective Date” shall mean February 9, 2022.
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as may be amended from time to time.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
“Excise Tax” shall have the meaning set forth in Section 3.03.
“Good Reason” shall mean “a separation from service for good reason” as set forth in Section 409A, which shall mean that, without the express written consent of the Participant, one or more of the following shall have occurred without being timely remedied in the manner set forth below: (a) a material diminution in the Participant’s base compensation; (b) a material diminution in the Participant’s authority, duties, or responsibilities (not including any temporary reduction in authority during any period of mental or physical incapacity); (c) a material change in the geographic location at which the Participant must perform the services; or (d) any other action or inaction that constitutes a material breach by the Company of the agreement under which the Participant provides services. The Participant shall have “Good Reason” in connection with any or all of the above solely if (i) the Participant provides notice to the Company of the existence of the particular condition, action or inaction which the Participant considers to give the Participant “Good Reason” within 60 days of the initial existence of such condition, action or inaction, and (ii) the Company shall not have remedied the condition, action or inaction within 30 days of its receipt of the Participant’s notice. The effective date of any termination for “Good Reason” shall be no later than 60 days after the end of the Company’s 30-day remedy period.

“Parachute Value” of a Payment shall mean the present value as of the date of the Change in Control for purposes of Section 280G of the Code of the portion of such Payment that constitutes 

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a “parachute payment” under Section 280G(b)(2) of the Code, as determined by an accounting firm or tax consultant selected by the Company for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.
“Participant(s)” shall mean an employee (or employees) of the Company or any of its Subsidiaries or affiliates who are from time-to-time designated as Participants in accordance with Section 2.01 of the Plan.
“Payments” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Participant, whether paid or payable pursuant to this Plan or otherwise.
“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) of the Exchange Act, except that such term shall not include (a) the Company or any of its Subsidiaries, (b) a trustee or other fiduciary holding securities under a Benefit Plan of the Company or any of its affiliates, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, or (d) a corporation owned, directly or indirectly, by substantially all of the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
“Plan” shall mean this Sonoco Products Company Change-in-Control Plan, as may be amended, supplemented or modified from time to time in accordance with its terms.
“Release” and “Release Expiration Date” shall have the meanings set forth in Section 3.02.
“Section 409A” shall mean Section 409A of the Code and the Department of Treasury Regulations and other interpretive guidance issued thereunder, including, without limitation, any such regulations or other guidance that may be issued after the Effective Date.
“Specified Employee” shall mean any Participant who, as of such Participant’s Termination Date, is determined to be a “key employee” of the Company if, at such time, the Company has any stock that is publicly traded on an established securities market or otherwise. For purposes of this definition, a Participant is a “key employee” if the Participant meets the requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code (applied in accordance with the Treasury Regulations thereunder and disregarding Section 416(i)(5) of the Code) at any time during the twelve (12) month period ending on the last day of the applicable calendar year (referred to as the “identification date” below). If a Participant is a “key employee” as of the identification date, such Participant shall be treated as a “key employee” for the entire twelve (12) month period beginning on the first day of the fourth month following the identification date. For purposes of this definition, a Participant’s compensation for the twelve (12) month period ending on an identification date shall mean such Participant’s compensation, as determined under Treasury Regulation Section 1.415(c)-2(a) in accordance with Treasury Regulation Section 1.409A-1(i)(2), from the Company for such period.
“Subsidiary” shall mean any corporation or other business entity in an unbroken chain of corporations or other business entities beginning with the Company if each of the corporations or other business entities other than the last corporation or other business entity in the unbroken chain then owns stock possessing 33% or more of the total combined voting power of all classes 

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of stock in one of the other corporations or other business entities in such chain in which the Company holds a 33% or more interest.
“Successor” shall mean a successor to all or substantially all of the business, operations or assets of the Company or such other portion of the Company’s business as shall be determined by the Administrator.
“Termination Date” shall mean, with respect to any Participant, the actual date of the Participant’s Termination of Employment.
  “Termination of Employment” shall mean the time when the employee-employer relationship between the Participant and the Company or any Subsidiary is terminated by the Company without Cause or by the Participant for Good Reason; provided that such “Termination of Employment” constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h).

“Termination Notice” shall mean written notice from the Company to any Participant stating that the Participant’s employment has been or is being terminated for Cause or Disability in accordance with Section 5.07(c).
Section 1.02 Interpretation. In this Plan, unless a clear contrary intention appears, (a) the words “herein,” “hereof” and “hereunder” refer to this Plan as a whole and not to any particular Article, Section or other subdivision, (b) reference to any Article or Section, means such Article or Section hereof, and (c) the words “including” (and with correlative meaning “include”) means including, without limiting the generality of any description preceding such term. The Article and Section headings herein are for convenience only and shall not affect the construction hereof.
ARTICLE II
ELIGIBILITY
Section 2.01 Eligible Employees. Only employees of the Company or any of its Subsidiaries or affiliates who are designated as Participants according to this Section 2.01 shall be eligible for payments and benefits under this Plan.
(a) The Participants shall be the chief executive officer, each other Corporate Officer, and any other individual specifically designated as a Participant by the Compensation Committee by reason of such individual’s importance and value to the Company in the event of a possible Change in Control being deemed to warrant special consideration. The designation of an individual as a Participant (or removal of such designation) shall be made by the Compensation Committee in its discretion; provided, however, no removal of a Participant from participation in the Plan or change to a lower level of participation in the Plan shall be effective until twelve (12) months after written notice of such action has been provided to the Participant. 
Section 2.02 Individuals Not Eligible. An individual shall not be eligible to be a Participant in the Plan, and shall not be designated as such, if the individual is otherwise designated by the Company as a temporary employee, as an individual working for the Company or any of its 

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affiliates or Subsidiaries on referral from a temporary personnel agency or employee leasing agency, or as an independent contractor or person working for an independent contractor.

ARTICLE III
SEVERANCE AND RELATED TERMINATION BENEFITS
Section 3.01 Termination of Employment during Change-in-Control Period. In the event that, during a Change-in-Control Period, a Participant incurs a Termination of Employment initiated by the Company or any Subsidiary or affiliate without Cause or initiated by the Participant for Good Reason (for the avoidance of doubt, the Terminations of Employment covered by the preceding clause do not include a Termination of Employment (w) due to Disability or death, (x) where there is a simultaneous reemployment or continuing employment of the Participant by the Company or any Subsidiary or affiliate of the Company in a Comparable Position; (y) resulting from the Participant’s declining an offer of simultaneous reemployment or continuing employment in a Comparable Position with the Company or with any Subsidiary or affiliate of the Company; or (z) where a Successor or assign of the Company, or of that portion of the assets of the Company that is transferred, sold or outsourced to the Successor or assign, offers to the Participant a Comparable Position), the Participant shall receive the following Change-in-Control Severance Payment and benefits, subject to Section 3.02 and any other conditions set forth in this Plan:
(a) Subject to the limitations set forth in Sections 3.03, 3.04 and 3.05, the “Change-in-Control Severance Payment” shall be a lump sum cash payment equal to the sum of the amounts described in Sections 3.01(a)(i) and (ii), less applicable withholdings:
(i) In the case of (x) the chief executive officer, an amount equal to his/her (1) Base Salary plus (2) his/her award under the Company’s Performance-Based Annual Cash Incentive Plan (or any successor plan) (the “Annual Cash Plan”) for the year in which the Termination Date occurs, calculated at target, multiplied by 2.5, (y) any other Corporate Officer who reports directly to the chief executive officer, an amount equal to his/her (1) Base Salary plus (2) his/her award under the Annual Cash Plan for the year in which the Termination Date occurs, calculated at target, multiplied by 2.0, and (z) any other Participant, an amount equal to his/her (1) Base Salary plus (2) his/her award under the Annual Cash Plan for the year in which the Termination Date occurs, calculated at target, multiplied by 1.5; and
(ii) The Participant’s award under the Annual Cash Plan for the year in which the Termination Date occurs, calculated at the greater of target or actual performance, and prorated through Termination of Employment. For the avoidance of doubt, the award under the Annual Cash Plan shall not include any long term incentive compensation, commissions, stock-based compensation, or any other incentive or retention compensation, bonuses, or awards of any kind other than payment under the Annual Cash Plan.
(b) Assuming Participant elects COBRA continuation coverage, continuation of all benefits under all Benefit Plans that permit continued coverage after an employee is no longer employed and/or are benefits eligible for COBRA continuation coverage in which 

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Participant participates at the time employment is ended for whatever reason, for a period of 18 months following the Termination Date. 

(c)    All outstanding equity awards issued on or after the Effective Date will vest in accordance with the provisions of the equity award agreement(s) pursuant to which they were awarded.
(d) Outplacement services appropriate for a senior executive of the Company, to be provided by a nationally recognized outplacement firm capable of providing such services, selected by the Participant with the Company’s approval, in an amount not to exceed $25,000.00 to the extent such services are used by the Participant within one year of his or her Termination Date. The Company will pay the outplacement firm directly.  For purposes of Section 409A, to the extent that payment pursuant to this Section 3.01(d) constitutes a reimbursement that is “deferred compensation” under Section 409A, such payment shall be provided no later than December 31 of the year following the year in which the expense was incurred.
(e) Subject to Sections 3.02 and 3.04, any Change-in-Control Severance Payment shall be paid to the Participant on or before the 60th day after the Termination Date.
(f) The Company will deduct any required tax withholding from any Change-in-Control Severance Payments. There shall be no deferrals, contributions or additional accruals to any qualified savings or retirement plan of the Company or to any deferred compensation plan of the Company from, or based on, any Change-in-Control Severance Payment.
Section 3.02 Condition to Receipt of Severance Benefits. In order to receive any Change-in-Control Severance Payment or benefit under this Plan, the Participant must (a) timely execute a Release, Covenant not to Sue, Non-Competition, Non-Solicitation and Nondisclosure Agreement in substantially the form attached hereto as Exhibit A (the “Release”) with the Company (provided by the Company to the Participant within seven (7) days following the Participant’s Termination Date) on or prior to the Release Expiration Date, and (b) not revoke his or her acceptance of the Release within the seven (7) day period following such acceptance.  For purposes of this Section 3.02, “Release Expiration Date” shall mean the date that is 21 days following the date upon which the Company timely delivers the Release to the Participant.
Section 3.03 Parachute Payments. 
(a) Notwithstanding any other provision of this Plan or any other plan, arrangement or agreement of the Company to the contrary, if any of the payments or benefits provided or to be provided by the Company to the Participant or for the Participant’s benefit pursuant to the terms of this Plan or under any other agreement with or plan of the Company or its Subsidiaries or affiliates (“Covered Payments”) constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code or any successor provision thereto) and would, but for this Section 3.03 be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Covered Payments, a

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 calculation shall be made comparing (i) the Net Benefit (as defined below) to the Participant of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to the Participant if the Covered Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”). “Net Benefit” shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes. 

(b) Any such reduction shall be made in accordance with Section 409A of the Code and the following:
(i) the Covered Payments which do not constitute nonqualified deferred compensation subject to Section 409A of the Code shall be reduced first; and
(ii) all other Covered Payments shall then be reduced as follows: (A) cash payments shall be reduced before non-cash payments; and (B) payments to be made on a later payment date shall be reduced before payments to be made on an earlier payment date.
(c) Any determination required under this Section 3.03, including whether any payments or benefits are parachute payments, shall be made by the Company in its sole discretion. The Participant shall provide the Company with such information and documents as the Company may reasonably request in order to make a determination under this Section 3.03. The Company’s determination shall be final and binding on the Participant.
(d) It is possible that after the determinations and selections made pursuant to this Section 3.03 the Participant will receive Covered Payments that are in the aggregate more than the amount provided under this Section 3.03 (“Overpayment”) or less than the amount provided under this Section 3.03 (“Underpayment”). 
(i) In the event that it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved that an Overpayment has been made, then the Participant shall pay any such Overpayment to the Company together with interest at the applicable federal rate (as defined in Section 7872(f)(2)(A) of the Code) from the date of the Participant’s receipt of the Overpayment until the date of repayment.
(ii) In the event that a court of competent jurisdiction determines that an Underpayment has occurred, any such Underpayment will be paid promptly by the Company to or for the benefit of the Participant together with interest at the applicable federal rate (as defined in Section 7872(f)(2)(A) of the Code) from the date the amount would have otherwise been paid to the Participant until the payment date.

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Section 3.04 Section 409A Compliance. 
(a) The Participant is solely responsible and liable for the satisfaction of any federal, state, or local taxes that may arise with respect to this Plan (including any taxes or penalties arising under Section 409A of the Code, except to the extent otherwise specifically provided in this Plan or a written Plan with the Company).
(b) To the extent applicable, it is intended that this Plan comply with the provisions of Section 409A of the Code and not result in the imposition of additional taxes and penalties under Section 409A of the Code. This Plan will be administered and interpreted in a manner consistent with this intent. Without limiting the breadth of the foregoing provisions of this paragraph, to the maximum extent permitted by applicable law, amounts payable to Participant pursuant to Section 3.03 shall be made in reliance upon Treasury Regulation Section 1.409A-1(b)(9) (separation pay plans) or Treasury Regulation Section 1.409A-1(b)(4) (short-term deferrals). 
(c) No payments under this Article III shall be paid to a Participant prior to or during the 6-month period following the Participant’s Termination Date if the Company determines in its sole discretion that paying such amounts at the time or times indicated in this Article III would be a prohibited payment of deferred compensation to a Specified Employee under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is not made as a result of the previous sentence, then within 15 business days following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A without resulting in a prohibited distribution, including as a result of the Participant’s death), the Company shall pay the Participant a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such period, and any remaining amounts due to such Participant shall be paid as otherwise provided in the Plan. For any payment that is delayed under this Article III, the Company shall also pay to the Participant interest on the delayed payment at a rate equal to the rate provided under Section 1274(b)(2)(B) of the Code as of the Termination Date.
Section 3.05 Limitation of Benefits. Notwithstanding anything to the contrary in this Plan, a Participant’s Change-in-Control Severance Payment shall be reduced by the aggregate amount of any termination, redundancy, severance or similar separation payments or benefits (other than state unemployment benefits) which such Participant is eligible for and receives, due to the Participant’s Termination of Employment, under any other agreement or plan (including, without limitation, any severance plans of the Company or any Subsidiary or affiliate or any government-mandated plans) or pursuant to any statutory, legislative, or regulatory requirement.
Section 3.06 Plan Unfunded; Participant’s Rights Unsecured. The Company shall not be required to establish any special or separate fund or make any other segregation of funds or assets to assure the payment of any Change-in-Control Severance Payment or benefit under this Plan. The right of any Participant to receive the Change-in-Control Severance Payment and benefits provided for herein shall be an unsecured claim against the general assets of the Company. No payment or benefit under this Plan shall be deemed earned, vested or accrued compensation or benefits, except according to the express terms of this Plan. The Plan is intended to be an unfunded welfare benefit plan for purposes of ERISA and a severance pay arrangement within 

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the meaning of Section 3(2)(B)(i) of ERISA. All benefits payable pursuant to the Plan shall be paid or provided by the Company from its general assets. The Plan is not intended to be a pension plan described in Section 3(2)(A) of ERISA.

ARTICLE IV
CLAIMS PROCEDURE/ARBITRATION
Section 4.01 Filing and Determination of Claim.  A Participant who believes he or she is entitled to receive a benefit under this Plan and desires written confirmation must submit a claim in writing to the Administrator.  The Administrator shall, within 90 days after receipt of the claim, either allow or deny the claim in writing.
Section 4.02 Denial of Claim.  Any initial denial of a claim for benefits shall be from the Administrator in writing, setting forth, in a manner calculated to be understood by the claimant, the following:
(a) the specific reason(s) for the denial;
(b) specific reference(s) to pertinent provision(s) of the Plan on which the denial is based;
(c) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and
(d) an explanation of the Plan’s review procedure and time limits applicable to such procedure, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination.
Section 4.03 Request for Review of Denial.  Within 60 days after a claimant’s receipt of written notification of denial of a claim, the claimant (or his/her duly authorized representative) upon written application to the Administrator, may request a review of such denial.  The application shall state the name and address of the claimant; the fact that the claimant is disputing the denial of claim; the date of the notice of denial; and the reason(s), in clear and concise terms, for disputing the denial.  In addition, to the extent required by law, claimant shall have the right to (a) be provided with, upon request and free of charge, reasonable access to and copies of all pertinent documents, records and other information relevant to his/her claim, and (b) submit in writing to the Administrator any comments, documents, records or other information relating to his/her claim.
Section 4.04 Review of Denial.  The Administrator shall make a decision on review of a denied claim within 60 days after receipt of the request for review, taking into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.  The decision on review shall be deemed final.  The Administrator’s decision on review shall be in writing, setting forth, in a manner calculated to be understood by the claimant the following:
(a) the specific reason(s) for the final decision;

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(b) specific reference(s) to the pertinent provisions of the Plan on which the final decision is based;
(c) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his/her claim; and
(d) a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to bring an action under Section 502(a) of ERISA.
The Administrator shall, upon request, provide a claimant whose claim is denied any information that the Plan generated or obtained in the process of making the particular determination and must specifically identify to the claimant any internal rules, guidelines, or protocols that served as the basis for the adverse determination.

Section 4.05 Extensions of Review Periods.  The 90-day period described in Section 4.01 and the 60-day period described in Section 4.04 may be extended at the sole and absolute discretion of the Administrator for a second 90-day or 60-day period, as the case may be, provided that written notice of the extension is furnished to the claimant prior to the termination of the initial period, indicating the special circumstances requiring such extension and the date by which a final decision is expected.  Any person submitting a claim may, with the consent of the Administrator, withdraw the claim at any time, or defer the date as of which such claim shall be deemed filed for purposes of this procedure.

Section 4.06 Arbitration.
(a)     Before pursuing a legal remedy, a claimant shall first exhaust the claims procedures set forth in Sections 4.01 through 4.05 of this Plan. Any disputes, controversies or claims that arise between any Participant (or any person claiming on behalf of any Participant) and the Company or any of its Subsidiaries and affiliates (including the Administrator) relating to or arising out of this Plan, which are not resolved in accordance with the procedures set forth in Sections 4.01 through 4.05 of the Plan, shall be settled by arbitration in accordance with the American Arbitration Association Employment Arbitration Rules and Mediation Procedures or any successor thereto (the “AAA Rules”). The arbitration shall be before a single arbitrator selected in accordance with the AAA Rules or otherwise by mutual agreement of the parties. The arbitration shall take place in Hartsville, South Carolina, unless the parties agree to hold the arbitration in another location. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the State of South Carolina, except to the extent preempted by U.S. Federal law (in which case such law will apply).
(b)     In consideration of the benefits provided herein, the anticipated expedition and the minimizing of expense of this arbitration remedy, and other good and valuable consideration, the arbitration provisions of this Plan shall provide the exclusive remedy for disputes following exhaustion of the claims procedures set forth in Sections 4.01 through 4.05 of this Plan, and each party expressly waives any right such party may have to seek redress in any other forum. To the maximum extent permitted by law, the arbitrator’s review of a claimant’s denied claim shall be limited to a determination of whether the denial was an abuse of discretion based on the evidence and theories the claimant presented during the claims procedure. The arbitration and any decision 

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and award or order of the arbitrator shall be final and binding upon the parties and judgment thereon may be entered in the Court of Common Pleas for Darlington County, South Carolina, any other state or federal court located in South Carolina, or any other court of competent jurisdiction.

(c)     The Company or any Participant may bring an action in any state or federal court located in South Carolina, or any other court of competent jurisdiction, to compel arbitration under this Plan and to enforce an arbitration award. Except as otherwise provided in this Plan, both the Company and the Participant agree that neither of them shall initiate or prosecute any lawsuit or administrative action in any way related to any claim covered by this Plan.
(d)     Any claim which either party has against the other party that could be submitted for resolution pursuant to this Section 4.06, must be presented in writing by the claiming party to the other party within one year after the receipt of the Administrator’s decision under Section 4.04. Unless the party against whom any claim is asserted waives the time limits set forth above, any claim not brought within the time period specified shall be waived and forever barred, even if there is a federal or state statute of limitations which would have given more time to pursue the claim.
(e)     The Company shall advance the costs and expenses of the arbitrator. In any arbitration to enforce any of the provisions or rights under this Plan, if the Participant prevails on at least one claim, the Company shall pay to the Participant all costs, expenses and reasonable attorneys’ fees incurred by the Participant (including without limitation such costs, expenses and fees on any appeals), and if Participant shall recover an award in any such arbitration proceeding, such costs, expenses and attorneys’ fees shall be included as part of such award. Notwithstanding the foregoing provision, in no event shall the Participant be entitled to recover an amount from the Company for costs, expenses and attorneys’ fees that exceeds the Participant’s actual costs, expenses and attorneys’ fees in connection with the action or proceeding. Any reimbursement of attorneys’ fees to the Participant pursuant to this Section 4.06(e) shall be provided no later than the last day of the Participant’s taxable year following the later of (i) the year in which such attorneys’ fees were incurred and (ii) the year in which the arbitrator determined that the Participant was the successful party.
(f)     Each of the terms and conditions contained in this Section 4.06 shall have separate validity, and the invalidity of any part thereof shall not affect the remaining parts.
ARTICLE V
MISCELLANEOUS PROVISIONS
Section 5.01 Cumulative Benefits. Except as provided in Section 3.05 or as otherwise agreed to in a writing signed between the Company and the Participant, the rights and benefits provided to any Participant under this Plan are cumulative of, and are in addition to, all of the other rights and benefits provided to such Participant under any Benefit Plan or any agreement between such Participant and the Company or any of its Subsidiaries.
Section 5.02 No Mitigation. No Participant shall be required to mitigate the amount of any payment provided for in this Plan by seeking or accepting other employment following a Termination of Employment with the Company (for the avoidance of doubt, the Termination of 

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Employment covered by the preceding clause does not include a Termination of Employment (x)  where there is a simultaneous reemployment or continuing employment of the Participant by the Company or any Subsidiary or affiliate of the Company in a Comparable Position; (y) resulting from the Participant’s declining an offer of simultaneous reemployment or continuing employment in a Comparable Position with the Company or with any Subsidiary or affiliate of the Company; or (z) where a Successor or assign of the Company, or of that portion of the assets of the Company that is transferred, sold or outsourced to the Successor or assign, offers to the Participant a Comparable Position). The amount of any payment or benefit provided for in this Plan shall not be reduced by any compensation or benefit earned by a Participant as the result of employment by another employer or by retirement or other benefits, except as described in Section 3.05.

Section 5.03 Amendment, Modification or Termination.
(a) The Compensation Committee may amend, modify, or terminate the Plan at any time in its sole and exclusive discretion; provided, however, that: (i) no such amendment, modification or termination may materially and adversely affect any rights of any Participant who has incurred a Termination of Employment on or prior to the effective date of such amendment, modification or termination; (ii) any termination of the Plan or modification that is a material diminishment of the severance payments or benefits provided under the Plan shall not be effective until twelve (12) months after written notice of such action has been provided to the Participants, except that any modification or amendment shall be immediately applicable to any employee designated as a Participant after the date that the Administrator adopts the modification or amendment; and (iii) the Plan shall not be terminated or materially amended adversely to any Participant during any Change-in-Control Period. Notwithstanding the foregoing, the Plan shall terminate when all of the obligations to Participants hereunder have been satisfied in full.
(b) Notwithstanding Section 5.03(a) or any other provision of this Plan, and to the fullest extent applicable, this Plan shall be interpreted and the terms shall be applied in accordance with Section 409A. In the event that the Administrator in its sole and exclusive discretion determines that any payments, disbursements, or benefits provided, or to be provided, under this Plan may be subject to, and not in compliance with, Section 409A, the Administrator may adopt at any time (without any obligation to do so or to indemnify any Participant for failure to do so) such limited amendments to this Plan, including amendments with retroactive effect, that it reasonably determines are necessary or appropriate to (i) exempt the compensation and benefits payable under this Plan from Section 409A and/or preserve the intended tax treatment of the compensation and benefits provided with respect to this Agreement or (ii) comply with the requirements of Section 409A; and all such amendments shall be immediately effective as to all Participants. No provision of this Plan shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from any Participant or any other individual to the Company or any of its affiliates, employees or agents.
Section 5.04 Administration.
(a) Subject to the limitations of the Plan, the Compensation Committee shall have full and final authority, in its sole and exclusive discretion, to administer the Plan, to construe and interpret its provisions, to decide matters arising under the Plan, and to take all other actions deemed necessary or advisable for the proper administration of this Plan. This authority and 

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discretion includes, but is not limited to, determining whether objective (or subjective) criteria under the Plan have been satisfied, resolving any possible inconsistencies or ambiguities, determining eligibility, determining the amount of any payments or benefits, and ensuring compliance with legal and tax matters.

(b) Subject to its Charter and applicable law, the Compensation Committee may, in its discretion,  delegate to one or more appropriate executives of the Company any duty or authority of the Compensation Committee hereunder (including, without limitation, the authority to designate Participants; provided that the Compensation Committee shall retain (and shall not delegate) (i) authority with respect to any Participant who is a 16(b) Officer (including, without limitation, any authority with respect to whether or not a 16(b) Officer is designated as a Participant and any 16(b) Officer’s eligibility to receive a payment or benefit or the amount of the payment or benefit), and (ii) authority to terminate the Plan or materially diminish or increase the formula for determining a Change-in-Control Severance Payment.
Section 5.05 Consolidations, Mergers, Etc. In the event of a merger, consolidation or other transaction, nothing herein shall relieve the Company from any of the obligations set forth in the Plan; provided, however, that nothing in this Section 5.05 shall prevent an acquirer of or Successor to the Company from assuming the obligations, or any portion thereof, of the Company hereunder pursuant to the terms of the Plan provided that such acquirer or Successor provides adequate assurances of its ability to meet this obligation. In the event that an acquirer of or Successor to the Company agrees to perform the Company’s obligations, or any portion thereof, hereunder, the Company shall require any person, firm or entity which becomes its Successor to expressly assume and agree to perform such obligations in writing, in the same manner and to the same extent that the Company would be required to perform hereunder if no such succession had taken place.
Section 5.06 Successors and Assigns. This Plan shall be binding upon and inure to the benefit of the Company and its Successors and assigns. This Plan and all rights of each Participant shall inure to the benefit of and be enforceable by such Participant and his or her personal or legal representatives, executors, administrators, heirs and permitted assigns. If any Participant should die while any amounts are due and payable to such Participant hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to such Participant’s devisees, legatees or other designees or, if there be no such devisees, legatees or other designees, to such Participant’s estate. No payments, benefits or rights arising under this Plan may be assigned or pledged by any Participant, except under the laws of descent and distribution.
Section 5.07 Notices.
(a) All notices and other communications provided for in this Plan shall be in writing and shall be delivered as follows: (i) if to the Company or the Administrator, at the Company’s principal office address or such other address as the Company may have designated by written notice to all Participants for purposes hereof, directed to the attention of the General Counsel, and (ii) if to any Participant, at his or her residence address on the records of the Company or to such other address as he or she shall have designated to the Company in writing for purposes hereof, or by electronic delivery via email to such address as he or she shall have designated to the Company in writing for purposes hereof. Each such paper notice or other communication 

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according to this Plan shall be deemed to have been duly delivered upon being deposited in the United States Mail via certified or registered mail, return receipt requested, postage prepaid, or by overnight delivery using a service capable of tracking and confirmation of receipt (with postage fees prepaid) such as FedEx or UPS, except that any change of notice address shall be effective only upon receipt.

(b) The Company shall deliver to each Participant, within 30 days of such Participant’s designation as eligible for this Plan, a letter notifying such Participant that he or she has been designated as a Participant in the Plan and a copy of the Plan. Within 30 days following any material amendment to the Plan, the Company shall deliver such amendment, amended Plan, or other confirming document to each affected Participant.
(c) For purposes of this Plan, in order for the Company to terminate any Participant’s employment for Cause, the Company must deliver a Termination Notice to such Participant, which notice shall be dated the date it is transmitted for delivery to such Participant, shall specify the Termination Date and shall state that the termination is for Cause and shall set forth in reasonable detail the particulars thereof. 
Section 5.08 No Employment Rights Conferred. This Plan shall not be deemed to create a right, promise, contract or guarantee of employment, continued employment, or of any particular job position, between any Participant and the Company and/or any of its affiliates or Subsidiaries.
Section 5.09 Severability. If any provision of the Plan is, becomes or is deemed to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Plan shall not be affected thereby.
Section 5.10 Governing Law.  Except to the extent preempted by U.S. Federal law, this Plan shall be governed by and construed in accordance with the laws of the State of South Carolina, without giving effect to its conflict of laws rules, and applicable federal law.

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EXHIBIT A TO SONOCO PRODUCTS COMPANY CHANGE-IN-CONTROL PLAN

THIS AGREEMENT CONTAINS A BINDING, IRREVOCABLE AGREEMENT TO ARBITRATE AND IS SUBJECT TO ARBITRATION 

RELEASE, COVENANT NOT TO SUE, NON-COMPETITION, NON-SOLICITATION AND NONDISCLOSURE AGREEMENT

This Release, Covenant Not to Sue, Non-Competition, Non-Solicitation and Nondisclosure Agreement (“Release”) is dated ________________, and is between Sonoco Products Company, (the “Company”) and _______________________________________ (“Participant”) (collectively the “Parties”).  The Parties agree as follows:
WHEREAS, the Company implemented a Change-In-Control Plan (the “Plan”), the terms of which are incorporated herein to the extent consistent herewith, to provide management continuity by inducing selected employees who are Participants in the Plan to remain in the employ of the Company or one of its Subsidiaries pending a proposed Change in Control by providing such employees with severance protection under the circumstances covered by the Plan; and
WHEREAS, Participant is a designated Participant in the Plan; and
WHEREAS, the Company has undergone a Change in Control as defined in the Plan; and
WHEREAS, during the Change-in-Control Period, Participant has incurred a Termination of Employment as set forth in the Plan, entitling Participant to the severance and related termination benefits set forth in the Plan, subject to the limitations and conditions set forth in the Plan; and

WHEREAS, Participant acknowledges, as a condition to receipt of the severance and related termination benefits pursuant to the Plan, Section 3.2 of the Plan requires Participant to enter into this Release.  (All defined terms used in this Release and not otherwise defined herein shall have the meanings ascribed thereto in the Plan.)

NOW THEREFORE, IN CONSIDERATION OF THE AGREEMENTS AND COVENANTS HEREIN, the Parties agree as follows:
1.    Termination of Employment as defined in Section 3.01 of the Plan. Participant has incurred a Termination of Employment under Section 3.01 of the Plan.  As a result, Participant's employment with the Company terminated on ________________ (the “Termination Date”).  After the Termination Date, Participant will not represent herself/himself as being an employee, officer, attorney, agent or representative of the Company for any purpose.   The Termination Date will be the employment termination date for Participant for all purposes, meaning, except as otherwise set forth in this Release or in the Plan, Participant will no longer be 

entitled to any further compensation, monies or other benefits from the Company, including coverage under any benefit plans or programs sponsored by the Company.  

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2.    Change-in-Control Severance Payment and Related Termination Benefits.  In consideration for Participant's execution, non-revocation of, and compliance with this Release, and compliance with each and every one of the provisions of the Release as outlined herein, the Company agrees to pay to Participant:
(a)    the “Change-in-Control Severance Payment” as defined and detailed in Section 3.01 (a)(i) and (ii) of the Plan, less applicable withholdings, payable on or before the 60th day after the Termination Date as provided, and subject to the limitations, in Section 3.01(e) of the Plan.
(b)    Benefits outlined in Section 3.01 (b), (c), and (d) of the Plan;
(c)    Participant will also be paid any accrued, unused vacation days following the Termination Date, less applicable withholdings. 
3.    Release.  
(a)    General Release and Waiver of Claims.
In exchange for the consideration in this Release, Participant hereby releases the Company and all of its officers, directors, employees, funds, Related Corporations (as defined under the Companies Act (Cap. 50)), agents, and representatives (“Releasees”), from all claims, liabilities, and expenses (including attorneys’ fees) of any kind, whether known or unknown, from the beginning of time through the date of this Release.  This release includes all claims under any federal, state, local or foreign law, arising out of, or in any way related to, Participant’s employment with the Company, or the termination of that employment.  Participant understands that this release includes, but is not limited to, (i) waivers of all claims under Title VII of the Civil Rights Act of 1964 (Title VII, as amended), the Civil Rights Act of 1991, the Equal Pay Act, Executive Order 11246, as amended, any other Executive Orders pertaining to Participant’s employment, other state anti-discrimination laws, any and all federal civil rights statutes or ordinances, as well as under any and all other international, federal, state or local statutes, ordinances, regulations, constitutions or executive orders, the Family and Medical Leave Act (“FMLA”), the Fair Labor Standards Act (“FLSA”), the Americans with Disabilities Act (“ADA”), the Americans with Disabilities Act Amendment Act (“ADAAA”), the Age Discrimination in Employment Act (“ADEA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Occupational Safety and Health Act (“OSHA”), the Employee Retirement Income Security Act of 1974 (“ERISA”), the Internal Revenue Code of 1986, as amended, and any and all other foreign, federal, state, or local laws; (ii) all claims for compensation of any type whatsoever, including claims for salary, wages, bonuses, commissions, incentive compensation, vacation and/or severance; (iii) all claims arising under tort, contract and/or quasi-contract law, including claims of breach of an express or implied contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm, wrongful or retaliatory discharge, fraud, 

defamation, slander, libel, false imprisonment, negligent or intentional infliction of emotional distress; and (iv) all claims for monetary or equitable relief, including attorneys’ fees, back pay, front pay, reinstatement, experts' fees, medical fees or expenses, costs and disbursements.  
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Participant specifically intends this release to be the broadest possible release permitted under law.

However, this general release and waiver of claims does not prohibit Participant from filing an administrative charge or claim with the Equal Employment Opportunity Commission (“EEOC”) or any state or local agency authorized by the EEOC to accept such charge or claim, and it does not apply to any claims that cannot be waived by law.  It does, however, preclude Participant from receiving any monetary or injunctive award as a result of filing such an administrative action.  It also bars Participant from maintaining a civil action in any judicial forum based on the allegations raised in such an administrative charge or claim.
(b)    Specific Release of ADEA claims.
In further consideration of the payments and benefits provided to Participant in this Release, Participant fully waives, releases and discharges the Company from all Claims, whether known or unknown, arising under the ADEA, as amended, and its implementing regulations. By signing this Release, Participant confirms that: 
(i)    Participant has read this Release and understands all of its terms; 
(ii)    Participant has been advised of and has taken the right to consult with Participant’s attorney prior to executing this Release; 
(iii)    Participant knowingly, freely and voluntarily assents to all of the terms and conditions set out in this Release including, without limitation, the waiver, release and restrictive covenants contained herein; 
(iv)    Participant is executing this Release, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which Participant is otherwise entitled; 
(v)    Participant was given at least 21 days (if only one employee impacted) /45 days (if two or more employees impacted) to consider the terms of this Release and consult with an attorney of Participant’s choice, although Participant may sign it sooner if desired; 
(vi)    Participant understands that Participant has seven days from the date Participant signs this Release to revoke the release in this paragraph by delivering notice of revocation to _______________, Global Division HR Director, 1 North Second Street, Hartsville, SC, 29550, fax 843-339-6099; and that any revocation must be in writing and delivered via fax and mail to _____________ before the end of the seven-day period; and 
(vii)    Participant understands that the release contained in this paragraph does not apply to rights and claims that may arise after the date on which Participant signs this Release.
4.    Voluntary Execution. Participant acknowledges that: (i) Participant has read this Release in its entirety and understands all of its terms; (ii) Participant has been advised of the right to consult with Participant’s attorney and tax advisor prior to executing this Release, and Participant has had the opportunity and sufficient time to seek such advice; (iii) Participant knowingly, freely and voluntarily assents to all of the terms of this Release; (iv) Participant is executing this Release, including the waiver and release and restrictive covenants, in exchange for good and valuable consideration above anything of value to which Participant is otherwise 
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entitled; (v) Participant is not waiving or releasing rights or claims that may arise after Participant’s execution of this Release; and (vi) Participant understands that the waiver and release and restrictive covenants in this Release are being requested in connection with Participant’s Termination of Employment.
5.    Non-competition. Participant stipulates, covenants and agrees that, in exchange for the consideration offered herein, for a period of two (2) years following the Termination Date, Participant shall not (i) directly or indirectly, engage as a partner, member, officer, director, agent, or independent contractor, or accept employment or a consulting arrangement in Participant’s individual capacity or on behalf of any other entity, person or organization, (ii) acting in the same or similar capacity as Participant was employed by the Company, (iii) with a company that sells products competitive with those sold by the Company or which is a competitor of the Company, and (iv) in the entire geographical area where Participant performed services on behalf of the Company, unless Participant has prior written and express consent from the Company. Participant acknowledges that, due to Participant’s position with the Company, a more narrow geographical limitation would serve no useful purpose nor protect the interests of the Company, and acknowledges the chosen restriction is reasonable to protect the Company's legitimate business interests.  Notwithstanding the foregoing, Participant shall not be prohibited from acting as a passive investor where Participant owns, or has options to purchase, not more than five percent (5%) of the issued and outstanding capital stock of any publicly-held company that engages in a competitive business with the Company.
6.    Non-solicitation. Participant stipulates, covenants and agrees Participant shall not, for a period of two (2) years following the Termination Date: (i) solicit, directly or indirectly, customers, business partners, vendors, or suppliers with whom Participant was involved during the last two (2) years of Participant's employment with the Company for the purposes of selling them products that are the same or similar to those sold by the Company, nor shall Participant facilitate the provision of such services by any other person or entity; or (ii) individually or through some other person, attempt to induce or encourage the Company’s employees to depart their employment with the Company.  
7.    Nondisclosure. Participant further agrees to keep confidential all confidential information and trade secrets of the Company, acknowledging that the Company has spent time, effort and money to develop and/or acquire such confidential information or trade secrets.  The term “Confidential Information” means all proprietary information and data or information (and any tangible evidence, record or representation thereof) whether prepared, conceived or developed by an employee or agent of the Company (including Participant) or received by the Company from an outside source which is maintained in confidence by the Company or the outside source who provided the information in question.  The term “Trade Secrets” means any Information: (i) from which the Company derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use; and (ii) for which the Company takes commercially reasonable efforts to maintain its secrecy.
Without limiting the forgoing, Confidential Information shall also include: 

(i)    the identities of clients and potential clients, customers and potential customers (collectively, “Customers”); the identities of contact persons at Customers; the preferences and needs of Customers; customer contact persons; information regarding sales terms, service plans, methods, practices, strategies, forecasts, know-how, and other marketing techniques; the identities of key accounts, potential key accounts; the identities of suppliers and contractors, and all information about those supplier and contractor relationships such as contact person(s), pricing and other terms;

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(ii)    any information relating to the relationship of the Company with any personnel, suppliers, principals, investors, contacts or prospects of the Company and any information relating to the requirements, specifications, proposals, orders, contracts or transactions of or with any such persons; 

(iii)    any marketing material, plan or survey, business plan, opportunity or strategy, development plan or specification or business proposal;

(iv)    financial information, including the Company’s costs, financing or debt arrangements, income, profits, salaries or wages; and

(v)    any information relating to the present or proposed business of the Company.

8.    Additional Provisions with regards to Paragraphs 5, 6, and 7. 
(a)    Consideration.  Participant further acknowledges that a portion of the payments and benefits provided for in this Release are specifically allocated toward compensating Participant for the continuation of the restrictive covenants in Paragraphs 5, 6 and 7 of this Release.

(b)    Restrictions are Reasonable.  Participant certifies and warrants that Participant has carefully read this Release, considered the extent of the restrictive covenants in Paragraphs 5, 6 and 7 of this Release, and the rights and remedies conferred upon the Company, and has had time to evaluate and consult with counsel of Participant’s own choosing, and acknowledges that the restrictions are: (i) reasonable as to duties scope, time and geographic area; (ii) narrowly designed to protect the interest of the Company and prohibit unfair competition; and (iii) that valuable consideration, which is sufficient and adequate consideration to support such restrictive covenants,  has been received by Participant from Company.  Participant acknowledges that the protection afforded the Company is necessary to protect the legitimate business interests of the Company.  Participant also acknowledges that Participant will be able to obtain gainful employment in spite of these restrictive covenants.

(c)    Severability.  If a Court deems any of the restrictions in Paragraphs 5, 6 or 7 unenforceable, the parties intend for and agree that the Court shall strike that particular section but give the remaining sections full force and effect.    

(d)    Injunctive Relief.  Participant expressly agrees and acknowledges that any breach or threatened breach by Participant of the restrictive covenants in Paragraphs 5, 6 or 7 of this Release, and each of them, will cause irreparable damage to the Company, for which monetary damages will be an inadequate remedy, and that the damages flowing from such breach are not readily susceptible to being measured in monetary terms.  Accordingly, in addition to all of the Company's rights and remedies under this Release and by operation of law, including, but not limited to, the right to the recovery of monetary damages from Participant, Participant hereby agrees and consents to the following cumulative rights and remedies which the Company may also specifically seek or enforce against Participant: 

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i.    Participant agrees to the issuance by any court of temporary, preliminary and permanent injunctions, without bond, enjoining any such breach or threatened breach of Participant.  Participant’s sole remedy in the event of any injunction or order shall be dissolution thereof, if warranted, upon a duly held hearing in a court of competent jurisdiction. 

ii.    Participant further agrees that, if Participant breaches any of the restrictive covenants set forth in Paragraphs 5, 6 or 7 of this Release, Participant will, immediately upon demand, account for and pay over to the Company any compensation, commission, bonus, salary, gratuity, or other gain of any kind received directly or indirectly in any transaction or employment as a result of or growing out of or connected with such breach. 

iii.    Participant further agrees that, if Participant breaches any of the restrictive covenants set forth in Paragraphs 5, 6 or 7 of this Release, Participant will, immediately forfeit to the Company any unpaid compensation under the Plan or this Release, or otherwise, that may be due, directly or indirectly, from the Company and is in the possession or control of the Company. 
9.    Return of Property.  Participant confirms that as of the date of this Release, Participant has returned all Company property, including identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files and any other Company property in Participant's possession.  Participant further confirms that Participant has not retained any Company property in any form, including the Company’s products, computer systems, software, e-mail, databases, or any information regarding processes, data, methods, information or other inventions, developments, or improvements that Participant conceived, originated, developed, or created, solely or jointly with others, during or as a result of Participant’s employment , and whether or not any of the foregoing also may be included within “Confidential Information” as defined in this Release.

10.    Non-disparagement.  Participant will not at any time make, publish or communicate any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses, or any of its employees or officers now or in the future.
11.    Arbitration.  In the event either Participant or the Company contests the interpretation or application of any of the terms of this Release, the complaining party shall notify the other in writing of the provision that is being contested.  If the parties cannot satisfactorily resolve the dispute within thirty (30) days, the matter will be submitted to arbitration pursuant to the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (“AAA”) in accordance with, and pursuant to, the terms and requirements of Section 4.06 of the Plan.  The arbitrator shall issue a written award that shall be 
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final and binding upon the parties.  Any arbitration shall take place in Hartsville, South Carolina, unless the Parties agree to hold the arbitration in another location.
12.    Confidentiality. Participant agrees not to disclose the terms, contents, or execution of this Release or the facts and circumstances underlying this Release to any third party, other than Participant’s spouse, future employers, or legal and tax advisors if such future employers and advisors agree to be bound by the confidential nature of this Release.
13.    Governing Laws. This Release shall be governed and construed under the laws of the State of South Carolina.  If any provisions or clauses of this Release, specifically those in Paragraphs 5, 6 and/or 7, are found to be invalid or unenforceable under any applicable law, the Parties desire that this Release shall be considered severable and divisible, and a reviewing court shall have the authority to amend or “blue pencil” the Release so as to make it fully valid and enforceable.
14.    Merger/Entire Agreement.  Except as set forth in the next sentence, this Release sets forth the entire understanding and agreement between Participant and the Company, superseding and replacing any and all preceding written agreements, to include but not limited to employment agreements, bonus agreements, or any other written agreement, verbal agreements, or other codicils and writings, and shall be binding on the parties and any and all of their respective successors, heirs, and assigns.  Notwithstanding the foregoing sentence, this Release shall not affect or modify the rights of Participant with respect to change-in-control benefits under any individual equity award agreement with Participant in effect prior to the Effective Date of the Plan (each, a “Prior Equity Award Agreement”). In no event may Participant receive change-in-control benefits under both this Release or the Plan and a Prior Equity Award Agreement (as relates to the equity award(s) covered thereby), or any other arrangement with the Company, except to the extent the Board of Directors of the Company expressly determines otherwise. If Participant has a Prior Equity Award Agreement, and such Prior Equity Award Agreement provides for change-in-control benefits relating to the equity award(s) covered thereby, to the extent the events giving rise to the change-in-control payments and benefits are covered by such Prior Equity Award Agreement, such Prior Equity Award Agreement, and not 
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the Plan nor this Release, shall govern the change-in-control payments and benefits with respect to such equity awards. 
15.    Modification.  This Release may not be changed orally and can be modified only by a written agreement signed by Participant and the Company. 
16.    Miscellaneous.  

(a)    Nothing in this Release shall be construed as an agreement by Participant to refuse to answer questions or give evidence pursuant to any lawful subpoena or order of any court, nor shall anything herein be construed in a manner so as to violate any law.
(b)    In the event of a material breach of this Release, subject to the arbitration provisions hereof, the non-breaching party shall be entitled to pursue all remedies available to it (including, in the case of the Company, the ability to recoup all consideration provided to Participant under this Release). 
(c)    This Release does not represent an admission of liability or finding of wrongdoing by Participant or the Company.
(d)    Participant may not assign this Release or any part hereof. Any purported assignment by Participant shall be null and void from the initial date of purported assignment.
(e)    This Release may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
17.    Acknowledgment of Full Understanding.  PARTICIPANT HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS RELEASE.  PARTICIPANT ACKNOWLEDGES THAT PARTICIPANT HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF PARTICIPANT’S CHOICE BEFORE SIGNING THIS RELEASE.  PARTICIPANT FURTHER ACKNOWLEDGES THAT PARTICIPANT’S SIGNATURE BELOW IS AN AGREEMENT TO RELEASE THE COMPANY FROM ANY AND ALL CLAIMS.

(SIGNATURES ON FOLLOWING PAGE)

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SIGNATURE PAGE
PLEASE READ CAREFULLY.  THIS RELEASE INCLUDES A WAIVER AND RELEASE OF ALL CLAIMS AGAINST THE RELEASEES THAT MAY HAVE OCCURRED THROUGH THE DATE OF THIS RELEASE.
						
	Agreed:

        
 (Participant’s Full Name)

Date: _____________________________
	
        
 Witness

Date: _____________________________
	

SONOCO PRODUCTS COMPANY
Signed by:
        
(Its:_______________________________)

Date: _____________________________
	

Witness
         

Date: _____________________________

		

9Exhibit 10.1

 

Execution Copy

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

THIS MEMBERSHIP INTEREST PURCHASE
AGREEMENT (this “Agreement”) is entered into as of the 31st day of January, 2022, between Irwin B.Polin
(“Wynn Polin”), an individual resident of Pennsylvania, Karl M. Herring (“Karl Herring”), an individual resident
of Pennsylvania (each a “Seller” and collectively the “Sellers”), and DecisionPoint Systems, Inc., a Delaware
corporation (“Buyer”).

 

RECITALS:

 

WHEREAS, Sellers directly
own, in the aggregate, all of the issued and outstanding membership interests (the “Membership Interests”), of Advanced
Mobile Group, LLC, a limited liability company organized under the laws of the Commonwealth of Pennsylvania (“Company”);

 

WHEREAS, upon the terms and
subject to the conditions set forth in this Agreement, Sellers’ desire to sell to Buyer, and Buyer desires to acquire from Sellers,
all of the Membership Interests; and

 

WHEREAS, Sellers and Buyer
desire to make certain representations, warranties and agreements in connection with, and also to prescribe certain conditions to, the
transactions contemplated by this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual representations, warranties, covenants and agreements set forth in this Agreement and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Buyer and Sellers, intending to be legally bound, hereby agree as set forth
herein.

 

ARTICLE
1

Definitions

 

1.1
Definitions. Certain terms used in this Agreement shall have the meanings set forth in Article 11, or elsewhere herein
as indicated in Article 11.

 

1.2
Accounting Terms. Accounting terms used in this Agreement and not otherwise defined herein shall have the meanings attributed
to them under GAAP, except as may otherwise be specified herein.

 

ARTICLE
2

Purchase and Sale

 

2.1
Membership Interest Purchase and Sale. Subject to the terms and conditions of this Agreement, at the Closing, Sellers hereby
sell, assign, transfer and deliver to Buyer, and Buyer hereby purchases and acquires from Sellers, all of Sellers’ right, title
and interest in and to all of the Membership Interests owned by Sellers.

 

     

     

    

 

2.2
 Purchase Price. The aggregate purchase price (the “Purchase Price”) for all of the Membership Interests
shall be an amount equal to:

 

(a) A cash
payment (the “Cash Purchase Price”) to Sellers equal to:

 

(i)
Four Million Ninety-Four Thousand Seven Hundred Dollars ($4,094,700);

 

(ii)
minus an amount equal to any Closing Indebtedness;

 

(iii)
plus the amount, if any, by which the Closing Working Capital exceeds the Working Capital Target, or minus the amount,
if any, by which the Working Capital Target exceeds the Closing Working Capital;

 

(iv)
minus an amount equal to the Transaction Bonuses; and

 

(v) minus an
amount equal to the Selling Expenses.

 

(b) A targeted
conditional payment of Four Hundred Fifty-Four Thousand Nine Hundred Sixty-Seven Dollar ($454,967) true-up (each a
“Conditional True-Up Payment”), excluding any adjustments for the Working Capital Target, payable over two (2) years at
Two Hundred Twenty-Seven Thousand Four Hundred Eighty-Three and 50/100 Dollars ($227,483.50) each, structured as follows:

 

(i) Year
1 True-Up: Should Company’s EBITDA for the calendar year 2022 (“2022 EBITDA”) exceed $1,137,417, then Buyer shall
pay Sellers $227,483.50 (the “2022 True-Up Payment”), subject to the terms and conditions below. The 2022 True-Up Payment
shall be due and payable no later than March 15, 2023;

 

(ii) Year
2 True-Up: Should Company’s EBITDA for the calendar year 2023 equal or exceed $1,137,417, then Buyer shall pay Sellers $227,483.50
(the “2023 True-Up Payment”), subject to the terms and conditions below. The 2023 True-Up Payment shall be due and payable
no later than March 15, 2024;

 

(iii) Should
Company’s 2022 EBITDA exceed $1,137,417, a portion of the Conditional True-Up Payment for 2023 will be earned and accelerated by
fifty percent (50%) of every dollar of 2022 EBITDA in excess of $1,137,417 (a “2023 Accelerated True-Up Payment”).  Any
2023 Accelerated True-Up Payment will be due and payable with any 2022 True-Up Payment. For purposes of example only, if the 2022 EBITDA
is $1,250,000, a portion of the Conditional True-Up Payment for 2023 equal to $56,292 will be accelerated and paid on or before March
15, 2023 ($1,250,000 - $1,137,417 = $112,583 x 50% = $56,292).  The remaining $171,191.50 of the Conditional True-Up Payment for
2023 will only be earned and paid in accordance with the terms and conditions set forth in Section 2.2(b)(ii) above. The parties acknowledge
and agree that in the event that a 2023 Accelerated True-Up Payment is paid by Buyer, it shall be credited against any 2023 True-Up Payment
that may be earned by Seller and payable by Buyer; and

 

    2

     

    

 

(iv) During
calendar years 2022 and 2023, the Business will be operated, and, solely for purposes of calculating the Conditional True-Up Payments,
the EBITDA calculated in a manner that is consistent with the historical practice of Company.

 

2.3
Estimated Cash Purchase Price; Payment of Indebtedness. On the second (2nd) Business Day before the anticipated Closing
Date, the Company shall estimate in good faith the amount of the Closing Indebtedness, the Closing Working Capital, the Transaction Bonuses
and the Selling Expenses, respectively, and deliver to Buyer a certificate (the “Closing Certificate”) setting forth
such estimates and the calculation of the Estimated Cash Purchase Price (as defined below), along with reasonable supporting detail therefor,
such estimates and calculations to be prepared consistent with the definitions thereof and in a manner consistent with, and using the
same accounting policies, judgments, classifications, estimations, practices, procedures and methodologies (including judgments as to
loss and gain contingencies and materiality determinations) as used in the preparation of, the Most Recent Financial Statements, including
the policies and procedures described in Section 2.3(a) of the Disclosure Schedule (the “Accounting Policies”).
As used herein, “Estimated Closing Indebtedness,” “Estimated Closing Working Capital,” “Estimated
Transaction Bonuses” and “Estimated Selling Expenses” mean the estimates of the Closing Indebtedness, the
Closing Working Capital, the Transaction Bonuses and the Selling Expenses, respectively, set forth in the Closing Certificate, and “Estimated
Cash Purchase Price” means an amount equal to the Cash Purchase Price calculated as set forth in Section 2.2, assuming
for purposes of such calculation that the Closing Indebtedness is equal to the Estimated Closing Indebtedness, that the Closing Working
Capital is equal to the Estimated Closing Working Capital, that the Transaction Bonuses are equal to the Estimated Transaction Bonuses
and that the Selling Expenses are equal to the Estimated Selling Expenses. Subject to the terms and conditions of this Agreement, at the
Closing, Buyer shall: (a) pay and deliver the Estimated Cash Purchase Price (as determined in accordance with the preceding sentence),
less the Holdback Amount (the “Closing Cash Payment”), to Seller by means of a wire transfer of immediately
available cash funds to accounts as directed by Sellers prior to the anticipated Closing Date (the “Sellers’ Account”);
(b)  on behalf of the Company, pay the Indebtedness of the Company identified in Section 2.3(b) of the Disclosure Schedule
(collectively, the “Repaid Closing Indebtedness”); and (d) on behalf of the Company, pay the Selling Expenses and the
Transaction Bonuses.

 

2.4
Post-Closing Adjustment.

 

2.4.1 Adjustment
Statement Preparation. Within ninety (90) days after the Closing Date, Buyer shall prepare and deliver to Sellers an adjustment
statement setting forth Buyer’s written, good faith determination and calculation of the amount of the Closing Indebtedness,
the Closing Working Capital, the Transaction Bonuses and the Selling Expenses, respectively (the “Preliminary Adjustment
Statement”), and, based on the Closing Indebtedness, the Closing Working Capital, the Transaction Bonuses and the Selling
Expenses as derived therefrom, Buyer’s written, good faith determination and calculation of the Cash Purchase Price and the
adjustment necessary to reconcile the Estimated Cash Purchase Price to the Cash Purchase Price (the “Preliminary
Post-Closing Adjustment”). The Preliminary Adjustment Statement and the Final Adjustment Statement shall be prepared
consistent with the definitions of Closing Indebtedness, Closing Working Capital, Transaction Bonuses and Selling Expenses and in a
manner consistent with, and using the same accounting policies, judgments, classifications, estimations, practices, procedures and
methodologies (including judgments as to loss and gain contingencies and materiality determinations) as used in the preparation of,
the Most Recent Financial Statements, including the Accounting Policies, except that the Preliminary Adjustment Statement and
the Final Adjustment Statement shall only reflect those items necessary to calculate the Closing Indebtedness, the Closing Working
Capital, the Transaction Bonuses and the Selling Expenses. In preparing the Preliminary Adjustment Statement: (a) any and all
effects on the assets or liabilities of the Company of any financing or refinancing arrangements entered into by Buyer (or its
Affiliates) at any time on or after the Closing Date shall be entirely disregarded; (b) it shall be assumed that the Company and its
lines of business shall be continued as a going concern; and (c) there shall not be taken into account any of the plans,
transactions or changes that Buyer intends to initiate or make or cause to be initiated or made after the Closing Date with respect
to the Company or its business or assets, or any facts or circumstances that are unique or particular to Buyer or any assets or
liabilities of Buyer, or any obligation for the payment of the Cash Purchase Price hereunder.

 

    3

     

    

 

2.4.2  Adjustment
Statement Review. Seller shall review the Preliminary Adjustment Statement and the Preliminary Post-Closing Adjustment and, if
Sellers believe that either was not prepared in accordance with Section 2.4.1, Seller shall so notify Buyer in writing no
later than thirty (30) days after Sellers’ receipt of the Preliminary Adjustment Statement, setting forth in such notice
Sellers’ objection or objections to the Preliminary Adjustment Statement or the Preliminary Post-Closing Adjustment with
reasonable particularity of the adjustments which Sellers’ claims are required to be made thereto in order to conform same to
the terms of Section 2.4.1. Buyer shall cause the Company and its officers, employees, agents and representatives to provide
reasonable cooperation with the accountants and advisors of Sellers in the review of the Preliminary Adjustment Statement and,
without limiting the generality of the foregoing, shall cause the books and records of the Company used by the Company in the
preparation of the Preliminary Adjustment Statement to be made available during normal business hours to such representatives, and
shall cause the necessary personnel of the Company to assist such representatives in their review of the Preliminary Adjustment
Statement, including by granting such persons reasonable access to the facilities of the Company, in each case, upon reasonable
advance notice. The fees and expenses of any such accountants and advisors retained by Seller shall be paid by Sellers.

 

2.4.3 Adjustment
Statement Dispute Resolution. If Sellers timely notify Buyer in accordance with Section 2.4.2 of an objection to the
Preliminary Adjustment Statement or the Preliminary Post-Closing Adjustment, and if Buyer and Seller are unable to resolve such
dispute through good faith negotiations within fifteen (15) days after Sellers’ delivery of such written notice of objection,
then the parties shall mutually engage and submit such dispute to, and same shall be finally resolved in accordance with the
provisions of this Agreement by a nationally or regionally recognized, independent, public accounting firm mutually agreed upon by
Seller and Buyer in writing (which shall not have any material relationship with Buyer or Sellers) (the “Independent
Accountants”). Buyer and Sellers shall have the opportunity to present their positions with respect to such disputed
matters to the Independent Accountants in accordance with the requirements of this Section 2.4. The Independent Accountants
shall act as an expert (and not as an arbitrator) to resolve all disputed matters based solely on presentations by Buyer and Sellers
(and not by independent review) and on the definitions and other terms included in this Agreement. The Independent Accountants shall
determine and report in writing to Buyer and Sellers as to the resolution of all disputed matters submitted to the Independent
Accountants and the effect of such determinations on the Preliminary Adjustment Statement and the Preliminary Post-Closing
Adjustment within twenty (20) days after such submission or such longer period as the Independent Accountants may reasonably
require. Such determinations by the Independent Accountants shall be final, binding and conclusive as to Buyer, Sellers, and their
respective Affiliates upon which a judgment may be rendered by a court having proper jurisdiction over the party against which such
determination is to be enforced. With respect to each disputed item, the Independent Accountants shall adopt a position that is
either equal to Buyer’s proposed position, equal to Sellers’ proposed position, or between the positions proposed by
Buyer and Sellers. The fees and disbursements of the Independent Accountants shall be borne by the party (i.e., Sellers, on the one
hand, and Buyer, on the other hand) that assigned an aggregate amount to items in dispute that was, on a net basis, furthest in
amount from the amount finally determined by the Independent Accountants.

 

2.4.4 Final Adjustment Statement
and Post-Closing Adjustment. The Preliminary Adjustment Statement and the Preliminary Post-Closing Adjustment shall become the “Final
Adjustment Statement” and the “Final Post-Closing Adjustment,” respectively, and as such shall become final,
binding and conclusive upon Buyer, Sellers, and their respective Affiliates for all purposes of this Agreement, upon the earliest to
occur of the following:

 

(a) the mutual acceptance by Buyer and Sellers of the Preliminary Adjustment Statement and the Preliminary Post-Closing Adjustment,
respectively, with such changes or adjustments thereto, if any, as may be proposed by Sellers and consented to by Buyer in writing;

 

(b) the expiration of thirty
(30) days after Sellers’ receipt of the Preliminary Adjustment Statement and the Preliminary Post-Closing Adjustment, respectively,
without timely written objection thereto by Sellers in accordance with Section 2.4.2; or

 

(c) the delivery to Buyer
and Sellers by the Independent Accountants of the written report of their determination of all disputed matters submitted to them pursuant
to Section 2.4.3.

 

2.4.5 Adjustment of Cash
Purchase Price.

 

(a) If the Cash Purchase
Price, as finally determined in accordance with this Section 2.4, is greater than the Estimated Cash Purchase Price,
then Buyer shall pay the amount of the Final Post-Closing Adjustment to Sellers by means of a wire transfer of immediately available
funds to the Sellers’ Account.

 

(b)
If the Cash Purchase Price, as finally determined in accordance with this Section 2.4, is less than the Estimated Cash
Purchase Price, then Sellers shall directly pay or cause to be paid to Buyer an amount in cash equal to such excess by means
of a wire transfer of immediately available funds to the account of Buyer’s choosing; provided, however,
that if the amount of such deficiency is not paid by Sellers within three (3) Business Days following final determination of the
Cash Purchase Price, the Buyer may deduct such amount from the Holdback Amount, and Sellers shall thereafter be liable to reimburse
the Buyer for such amount and make the Holdback Amount whole within three (3) Business Days thereafter. Notwithstanding anything to
the contrary herein contained, to the extent that any outstanding amount is owed by Sellers to Buyer pursuant to this Section
2.4.5(b), Buyer may, at its sole discretion offset such amount against any 2022 True-Up Payment, 2023 Accelerated True-Up
Payment, and/or 2023 True-Up Payment.

 

    4

     

    

 

(c) If the Cash Purchase
Price, as finally determined in accordance with this Section 2.4, is equal to the Estimated Cash Purchase Price, then
Buyer and Sellers shall make no adjustment to the Cash Purchase Price.

 

All payments due and payable
pursuant to this Section 2.4.5 shall be made no later than three (3) Business Days after the Preliminary Adjustment Statement
and the Preliminary Post-Closing Adjustment become the Final Adjustment Statement and the Final Post-Closing Adjustment, respectively,
pursuant to Section 2.4.4. For Tax purposes, any payment by Buyer or Sellers (or payment on behalf of Sellers, whether from the
Holdback Amount or otherwise) under this Agreement, including pursuant to Article 10, shall be treated as an adjustment to
the Cash Purchase Price unless a contrary treatment is required by Law.

 

ARTICLE
3

Representations and Warranties Concerning the Transaction

 

Each Seller, jointly and severally,
represents and warrants to Buyer as follows:

 

3.1
Authority; Capacity and Representation.  

 

(a)
Each Seller possesses all requisite legal right, power, authority and capacity to execute, deliver and perform this Agreement,
and each other agreement, instrument and document to be executed and delivered by the Sellers pursuant hereto (collectively, the “Seller
Ancillary Agreements”), and to consummate the transactions contemplated herein and therein. The execution, delivery and performance
by the Sellers of this Agreement and the Seller Ancillary Agreements and the consummation by the Sellers of the transactions contemplated
hereby and thereby have been duly and validly authorized on the part of the Sellers.

 

(b) The
copies of each of the Sellers’ Organizational Documents which have been furnished to Buyer reflect all amendments made thereto at
any time prior to the date of this Agreement and are true, complete and correct. The minute books of the Sellers, as applicable, that
have been made available to the Buyer by the Sellers contain all the records of meetings of the shareholders and of the board of directors
and any committees of the board of directors of the Sellers that the Sellers have and accurately reflect the actions taken at such meetings.
To the Sellers’ and Company’s Knowledge, there are no other records of such meetings.

 

3.2
 Ownership of Membership Interests. Sellers are the sole beneficial and record owner of, and has good and marketable title
to, all of the Membership Interests of the Company, free and clear of all Liens (other than restrictions on transfer generally included
under applicable federal and state securities Laws). Upon delivery to Buyer of the certificates, instruments or agreements, as applicable,
representing Sellers’ Membership Interests in the Company and payment for such Membership Interests to Sellers at Closing as provided
in this Agreement, Sellers will convey to Buyer good and valid title to such Membership Interests of the Company, free and clear of all
Liens (other than (i) restrictions on transfer generally included under applicable federal and state securities Laws and (ii) those created
by Buyer). Since the date of its organization, the only issued and outstanding equity interests of the Sellers has been voting common
interests with equal rights and preferences and the Sellers have not made any disproportionate distributions to any equity holder.

 

3.3
Execution and Delivery; Enforceability.

 

This Agreement has been, and each Seller Ancillary
Agreement upon delivery will be, duly executed and delivered by Sellers and constitutes, or upon such delivery will constitute, the legal,
valid and binding obligation of Sellers, enforceable in accordance with its terms, except as such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights
or by principles of equity (the “Enforceability Exceptions”).

 

    5

     

    

 

3.4
Noncontravention.

 

(a)
Except as set forth in Schedule 3.4(a), neither the execution and delivery of this Agreement or any Seller Ancillary Agreement
nor the consummation by the Sellers of the transactions contemplated hereby or thereby, nor compliance by the Sellers with any of the
provisions hereof or thereof, will: (i) violate any Law or Order applicable to the Sellers or by which any properties or assets owned
or used by the Sellers are bound; or (ii) result in a breach of any Contract to which Sellers are a party or by which any of the Sellers’
assets or properties are bound; except in each case to the extent that any such conflict, breach or violation would not delay or impair
the ability of the Sellers to consummate the transactions contemplated by this Agreement.

 

(b)
No consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority is required to
be obtained or made by the Sellers in connection with: (i) the execution, delivery and performance by the Sellers of this Agreement or
any Seller Ancillary Agreement; or (ii) the compliance by the Sellers with any of the provisions hereof or thereof or the consummation
by the Sellers of the transactions contemplated hereby or thereby.

 

3.5 Legal Proceedings.
There is no Order, and no action, suit, arbitration or proceeding, at Law or in equity, pending or, to the Sellers’ or Company’s
Knowledge, threatened against the Sellers, which would give a third party the right to enjoin or rescind the transactions contemplated
by this Agreement or otherwise prevent the Sellers from complying with the terms and provisions of this Agreement.

 

3.6
 Brokerage. No Person is or will become entitled, by reason of any Contract entered into or made by or on behalf of the
Sellers, to receive any brokerage commission, finder’s fee, agent’s commission or other similar compensation in connection
with the negotiations leading to this Agreement or the consummation of the transactions contemplated by this Agreement.

 

3.7
Litigation.  

 

(a) Except
as set forth in Section 3.7 of the Disclosure Schedule, there are no actions, suits, arbitrations or proceedings, at Law or in
equity, pending or, to the Sellers’ or Company’s Knowledge, threatened against the Sellers before any Governmental Authority
in which the claim thereunder (a) involves more than Ten Thousand Dollars ($10,000); or (b) could reasonably be expected to prevent or
materially delay the consummation of the transactions contemplated hereby. Sellers are not subject to any Order or is in material breach
or violation of any Order.

 

(b) Sellers
have not, directly or indirectly, (i) made or agreed to make any contribution, payment or gift to any government official, employee or
agent where either the contribution, payment or gift or the purpose thereof was illegal under the Laws of any federal, state, local or
foreign jurisdiction, (ii) established or maintained any unrecorded fund or asset for any purpose or made any false entries on the books
and records of the Company for any reason or (iii) paid or delivered any fee, commission or any other sum of money or item of property,
however characterized, to any finder, agent, government official or other party, in the United States or any other country, which in any
manner relates to the assets, business or operations of the Company.

 

    6

     

    

 

ARTICLE
4

Representations and Warranties Concerning the Company

 

Each Seller, jointly and severally, represents
and warrants to Buyer as follows:

 

4.1
Organization and Good Standing; Authority; Enforceability.

 

(a)
The Company is a limited liability company duly organized, validly existing and in good standing under the laws of the Commonwealth
of Pennsylvania. The Company has all requisite power and authority to own and lease its assets and to operate its business as the same
are now being owned, leased and operated. The Company is duly qualified or licensed to do business as a foreign entity in, and is in good
standing in, each jurisdiction in which the nature of its business or its ownership of its properties requires it to be so qualified or
licensed, except where the failure to be so qualified or licensed and in good standing would not have a Material Adverse Effect. The Company
has delivered or made available to Buyer a true, correct and complete copy of the Organizational Documents, as currently in effect, of
the Company.

 

(b) The Company possesses
all requisite legal right, power, authority and capacity (corporate or otherwise) to execute, deliver and perform this Agreement,
and each other agreement, instrument and document to be executed and delivered by the Company pursuant hereto (collectively, the
“Company Ancillary Agreements”), and to consummate the transactions contemplated herein and therein. The
execution, delivery and performance by the Company of this Agreement and the Company Ancillary Agreements and the consummation by
the Company of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate
action on the part of the Company.

 

(c)
This Agreement has been, and each Company Ancillary Agreement upon delivery will be, duly executed and delivered by the Company
and constitutes, or upon such delivery will constitute, the legal, valid and binding obligation of the Company, enforceable in accordance
with its terms, except as such enforcement may be limited by the Enforceability Exceptions.

 

(d)
The copies of each of the Company’s Organizational Documents which have been furnished to Buyer reflect all amendments made
thereto at any time prior to the date of this Agreement and are true, complete and correct. The minute books of the Company that have
been made available to the Buyer by Sellers contain all the records of meetings of the shareholders and of the board of directors and
any committees of the board of directors of the Company that Sellers have and accurately reflect the actions taken at such meetings. To
the Sellers’ and Company’s Knowledge, there are no other records of such meetings.

 

4.2
Membership Interests of the Company. The Membership Interests are all owned of record by Sellers. All of the Membership
Interests have been duly authorized and validly issued, are fully paid and nonassessable, and were issued in compliance with (i) the Organizational
Documents of the Company, (ii) all applicable federal and state securities Laws and (iii) any preemptive rights or rights of first refusal
of any Person. Except as set forth in Section 4.2 of the Disclosure Schedule: (1) there are no voting trusts, proxies or other
agreements or understandings with respect to the voting of any membership interests of the Company; (2) there does not exist, nor is there
outstanding, any right or security granted to, issued to or entered into with any Person to cause the Company to issue, grant or sell
any membership interests of the Company or any other profit participation rights to any Person (including any warrant, stock option, call,
preemptive right, convertible or exchangeable obligation, subscription for membership interests, shares or securities convertible into
or exchangeable for membership interests or shares of the Company, or any other similar right, security, instrument or agreement) and
there is no commitment or agreement to grant or issue any such right or security; (3) there is no obligation, contingent or otherwise,
of the Company to: (x) repurchase, redeem or otherwise acquire any share or other equity interests of the Company; or (y) provide funds
to, or make any investment in (in the form of a loan, capital contribution or otherwise), or provide any guarantee with respect to the
obligations of any other Person; and (4) there are no bonds, debentures, notes or other indebtedness which have the right to vote (or
which are convertible into, or exchangeable for, securities having the right to vote) on any matters on which stockholders of the Company
are entitled to vote. Since the date of its organization, the only issued and outstanding equity interests of the Company has been voting
common stock or membership interests with equal rights and preferences and the Company has not made any disproportionate distributions
to any Seller or any other equity holder.

 

4.3
Other Ventures. The Company does not own of record or beneficially any equity ownership interest in any Subsidiary or other
Person, nor is it a partner or member of any partnership, limited liability company or joint venture. The Company’s business is
not conducted through any other Person, except employees of the Company. Except as set forth in Section 4.3 of the Disclosure Schedule,
neither the Sellers, nor any of its Affiliates, owns any other Persons relating to the business operations of the Company.

 

    7

     

    

 

4.4
 Noncontravention.

 

(a)
Assuming all consents, approvals, authorizations, permits, filings and notifications set forth in Section 4.4(b) of the Disclosure
Schedule have been obtained or made, except as set forth in Section 4.4(a) of the Disclosure Schedule, neither the execution
and delivery of this Agreement or any of the Company Ancillary Agreements, nor the consummation by the Company or Sellers of the transactions
contemplated hereby or thereby, nor compliance by the Company with any of the provisions hereof or thereof, will: (i) result in a breach
of any provisions of the Organizational Documents of the Company; (ii) result in the violation or breach of any term, condition or provision
of, or constitute a default under (with or without notice or lapse of time, or both), or give rise to any right of termination, consent,
amendment, cancellation, modification or acceleration with respect to, or give rise to any obligation of the Company to make any payments
under, or result in the creation or imposition of a Lien upon any property or assets of the Company pursuant to, any Material Contract;
or (iii) result in a violation of, or constitute a failure to comply with, any Law or Order applicable to the Company or by which any
properties or assets owned by the Company are bound or affected.

 

(b)
Except as set forth in Section 4.4(b) of the Disclosure Schedule, no consent, approval, authorization or permit of, or filing
with or notification to, any Governmental Authority is required to be obtained or made by the Company in connection with: (i) the execution
and delivery of this Agreement or any Company Ancillary Agreement or (ii) the compliance by the Company with any of the provisions hereof
or thereof or the consummation of the transactions contemplated hereby or thereby.

 

4.5
Financial Statements.

 

(a)
The Company has made available to Buyer copies of (i) the profit & loss, balance sheet and statement of cash flow of the Company
prepared by the Company’s independent accountant for purposes of preparing income tax returns as of and for the fiscal years ended
December 31, 2017, December 31, 2018, December 31, 2019, December 31, 2020 (“Annual Financial Statements and for the nine (9) month
period ended September 30, 2021 (the “Most Recent Financial Statements,” and together with the Annual Financial Statements,
the “Financial Statements”). Except as set forth in Section 4.5(a) of the Disclosure Schedule, the Financial
Statements have been prepared, consistently and present fairly, in all material respects, the financial position of the Company as of
the dates indicated and the results of operations for the periods then ended. The balance sheet as of September 30, 2021 is referred to
herein as the “Acquisition Balance Sheet.”

 

(b)
The Company does not have any liabilities except for (i) liabilities disclosed, reflected or reserved against on the Acquisition
Balance Sheet, (ii) liabilities incurred since the date of the Acquisition Balance Sheet in the ordinary course of business (none
of which is a liability resulting from breach of Contract, breach of warranty, tort, infringement, misappropriation, lawsuit or violation
of Law), (iii) liabilities arising under this Agreement, and (iv) liabilities set forth in Section 4.5(b) of the Disclosure Schedule.

 

4.6
Absence of Certain Changes or Events. Except as set forth in Section 4.6 of the Disclosure Schedule, since September
30, 2021:

 

    8

     

    

 

(a)
 there has not occurred a Material Adverse Effect;

 

(b)
other than as required by applicable Law, there has not been any material change in the Tax reporting or accounting policies or
practices of the Company;

 

(c)
(i) other than in the ordinary course of business, the Company has not made, or granted, (A) any bonus or any wage, severance or
termination pay, salary or compensation increase to any current director or officer, (B) any increase of any benefit provided under any
employee benefit plan, employment agreement or arrangement, including any fringe benefit plan or arrangement, or (C) any equity or equity-based
compensation award; and (ii) except as required to reflect legal requirements or avoid adverse Tax consequences to the Company or
to any employees of the Company, the Company has not amended or terminated any existing Plans or adopted any new Plans;

 

(d)
the Company has not merged or consolidated with any corporation or other entity or invested in, loaned to or made an advance (except
for loans or advances to its employees or officers for business expenses in the ordinary course of business consistent with past practice)
or capital contribution to, or otherwise acquired any capital stock or business of any Person, or consummated any business combination
transaction, in each case, whether a single transaction or series of related transactions;

 

(e)
the Company has not amended its Organizational Documents to take, agree to take or authorize any action to wind up its affairs
or dissolve or change its corporate or other organizational form or amend any terms of its outstanding securities;

 

(f)
the Company has not sold, assigned or transferred any tangible or intangible property or assets having a book value, in any individual
case, in excess of Ten Thousand Dollars ($10,000), except for sales of inventory in the ordinary course of business consistent with past
practice and except for Permitted Liens;

 

(g) the Company has not
purchased or leased, or has committed to purchase or lease, any tangible or intangible property or assets, or authorized any capital
expenditures or commitments for capital expenditures, of any asset for an amount in excess of Ten Thousand Dollars ($10,000)
individually, except for purchases of inventory and supplies in the ordinary course of business consistent with past practice;

 

(h)
except as disclosed in Section 4.13 of the Disclosure Schedules, the Company has not amended, modified or terminated any
existing Material Contract (other than a termination of a Material Contract as a result of the expiration of the term of such Material
Contract);

 

(i)
the Company has not authorized the issuance, issued or sold or agreed or committed to issue or sell (whether through the issuance
or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any membership interests or shares of capital
stock of any class or any other securities or equity equivalents;

 

    9

     

    

 

(j)
 other than in the ordinary course of business, the Company has not declared, set aside or paid any dividends or distributions,
or purchased or redeemed any of their respective outstanding equity securities;

 

(k)
the Company has not incurred any Indebtedness or assumed, guaranteed, or endorsed the indebtedness of any other Person, or canceled
any debt owed to it or released any claim possessed by it, other than (i) in the ordinary course of business, (ii) pursuant to existing
financing arrangements or (iii) Indebtedness reflected in the Financial Statements;

 

(l)
the Company has not mortgaged, pledged or subjected to any material Lien, other than Permitted Liens, any of its material properties
or assets; and

 

(m)
the Company has not entered into any written agreement to do any of the foregoing (other than this Agreement).

 

4.7
Taxes. Except as set forth in Section 4.7 of the Disclosure Schedule:

 

(a)
All material Tax Returns required to be filed by or with respect to the Company have been properly filed (taking into account applicable
extensions of time to file), and all such Tax Returns (including information provided therewith or with respect thereto) are accurate
and complete in all material respects. All Taxes reflected as due on such Tax Returns have been paid, other than Taxes which are not yet
due or which, if due, are not delinquent or are being contested in good faith by appropriate proceedings.

 

(b)
There are no material Tax claims, audits or proceedings by any Taxing Authority pending or, to the Company’s Knowledge, threatened
in writing in connection with any Taxes due from the Sellers.

 

(c)
There are no Liens for Taxes (other than statutory Liens for Taxes not yet due and payable) upon any of the assets of the Company.

 

(d)
There are not currently in force any waivers or agreements binding upon the Sellers for the extension of time or statute of limitations
within which to file any Tax Return or for the assessment or payment of any Tax for any taxable period, and no request for any such waiver
or extension is currently pending.

 

(e)
The Company has properly withheld and paid all material Taxes required to have been withheld and paid in connection with amounts
paid or owing to any Person.

 

(f)
The Sellers are not a party to or bound by any Tax allocation or Tax sharing agreement.

 

(g)
The Sellers (i) have not been a member of an affiliated group filing a consolidated federal income Tax Return or (ii) have no liability
for the Taxes of any Person under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local, or non-U.S. Law).

 

(h)   Within
the past three (3) years, the Sellers have not distributed membership interests or shares of another Person, or has had its
membership interests or shares distributed by another Person, in a transaction that was purported or intended to be governed in
whole or in part by Code Section 355 or Code Section 361.

 

    10

     

    

 

(i)
The Sellers are not a party to any Contract or plan that has resulted or could result, separately or in the aggregate, in the payment
of any “excess parachute payment” within the meaning of Code Section 280G (or any corresponding provision of state, local
or foreign Tax Law). None of the Sellers has been a United States real property holding corporation within the meaning of Code Section
897(c)(2) during the applicable period specified in Code Section 897(c)(1)(A)(ii). The Sellers have disclosed on their federal income
Tax Returns all positions taken therein that could give rise to a substantial understatement of federal income Tax within the meaning
of Code Section 6662.

 

(j)
The Sellers will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any
taxable period (or portion thereof) ending after the Closing Date as a result of any:

 

(i)
change in method of accounting for a taxable period ending on or prior to the Closing Date;

 

(ii)
“closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of state, local
or foreign income Tax Law) executed on or prior to the Closing Date;

 

(iii)
intercompany transaction or excess loss account described in Treasury Regulations under Code Section 1502 (or any corresponding
or similar provision of state, local or foreign income Tax Law);

 

(iv)
installment sale or open transaction disposition made on or prior to the Closing Date; or

 

(v)
prepaid amount received on or prior to the Closing Date.

 

(k)
The Sellers has not engaged in any “listed transaction” as defined in the Treasury Regulations promulgated under Section
6011 of the Code.

 

(l)
The Company is not, nor at any time has been, subject to (i) the dual consolidated loss provisions of Section 1503(d) of the
Code, (ii) the overall foreign loss provisions of Section 904(f) of the Code or (iii) the recharacterization provisions of Section 952(c)(2)
of the Code.

 

4.8 Employees.
Except as set forth in Section 4.8 of the Disclosure Schedule, there are no pending, or to the Sellers’ and
Company’s Knowledge, threatened actions, suits, proceedings or claims by or on behalf of any employee or former employee of
the Company with respect to his or her employment or engagement, termination of employment or engagement or any employee benefits
(other than routine claims for benefits and for matters that can be resolved for less than Twenty Thousand Dollars ($20,000)
individually). The Company is not a party to any Collective Bargaining Agreement nor, to the Sellers’ and Company’s
Knowledge, are any employees of the Company represented by a labor union or is there pending or underway any union organizational
activities or proceedings with respect to employees of the Company. To the Sellers’ and Company’s Knowledge, no union
organizing or decertification efforts are underway or threatened and no such activities have occurred within the past five (5)
years, and no other question concerning representation exists. There is no labor strike, slowdown, lockout or stoppage pending or,
to the Sellers’ and Company’s Knowledge, threatened in writing against the Company, and no such disputes have occurred
during the past five (5) years. To the Sellers’ and Company’s Knowledge, no employee (i) has any present intention to
terminate their employment, or (ii) is a party to any confidentiality, non-competition, proprietary rights or other such agreement
between such employee and any other Person besides the Company that would be material to the performance of such employee’s
employment duties, or the ability of the Company to conduct its business. No labor organization or group of employees has filed any
representation petition or made any written or oral demand for recognition by the Company. There is no workman’s compensation
liability, experience or matter outside the ordinary course of the business of the Company. There is no employment related action,
suit, arbitration or proceeding of any kind, pending or, to the Sellers’ and Company’s Knowledge, threatened in any
forum, relating to an alleged violation or breach by the Company (or its officers or directors) of any Law or Contract and, to the
Sellers’ and Company’s Knowledge, no employee or agent of the Company has committed any act or omission giving rise to
material liability for any such violation or breach. The Company does not have an employee handbook and has not obtained a written
acknowledgement of acceptance of the terms and conditions of the employee handbook from all past and present employees of the
Company.

 

    11

     

    

 

4.9  
Employee Benefit Plans and Other Compensation Arrangements. Set forth on Section 4.9 of the Disclosure Schedule is a list
of (a) all material employee benefit plans (as defined in Section 3(3) of ERISA) and (b) all other severance pay, salary
continuation, bonus, incentive, stock option, phantom equity, stock appreciation rights, welfare, retirement, pension, profit
sharing or deferred compensation plans, contracts, programs, funds or arrangements of any kind, in each case with respect to which
the Company currently is the sponsor or is obligated to make contributions under the plan terms (collectively, the
“Plans”). Except as set forth in Section 4.9 of the Disclosure Schedule:

 

(a) the Company is not and
has not been the sponsor of, and the Company is not and has not been obligated to make contributions under, a “multiemployer plan”
(as defined in Title I or Title IV of ERISA) or a plan subject to Title IV of ERISA;

 

(b) each of the Plans that
is intended to be tax-qualified under Section 401(a) of the Code has received a favorable determination letter or opinion letter from
the Internal Revenue Service as to its qualification and is so qualified in all material respects, except that no representation is made
with respect to any formal qualification requirement with respect to which the remedial amendment period under Section 401(b) of the
Code has not yet expired;

 

(c) all of the Plans have
been operated in compliance in all material respects with their respective terms and all applicable Laws, and all material
contributions required under the terms of the Plans or applicable Laws have been timely made;

 

(d)  except with respect to
the Transaction Bonuses, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby,
disregarding any termination of employment which may occur on or after the Closing, will (i) result in any material payment (including,
without limitation, severance, unemployment compensation, golden parachute or otherwise) becoming due to any director, officer or employee
of the Company from the Company under any Plan or otherwise, (ii) materially increase any benefits otherwise payable under any Plan or
(iii) result in any acceleration of the timing of payment, vesting or funding of any such benefits to any material extent;

 

(e) none of the Plans
provides medical benefits to any retired Person, or any current employee of the Company following such employee’s retirement
or other termination of employment, except as required by applicable Law (including Section 4980B of the Code);

 

(f)
there are no pending, or to the Sellers’ and Company’s Knowledge, threatened actions, suits or claims by or on behalf
of any Plan, by any employee or beneficiary covered under any such Plan, as applicable, or otherwise involving any such Plan (other than
routine claims for benefits);

 

(g) each Plan that is a
“nonqualified deferred compensation plan” (as defined for purposes of Section 409A(d)(1) of the Code) is in documentary
and operational compliance with Section 409A of the Code and all applicable Internal Revenue Service guidance promulgated
thereunder; and

 

(h) the Company is not
required to gross up or reimburse a payment to any employee, officer, director or officer for Taxes incurred under Sections 4999 or
409A of the Code.

 

4.10
Permits; Compliance with Laws. The Company is in compliance in all material respects with all applicable Laws, and possess
all material licenses, permits, registrations, permanent certificates of occupancy, authorizations and certificates from any Governmental
Authority required under applicable Law with respect to the operation of their business as currently conducted (collectively, “Permits”).
Each Permit is set forth in Section 4.10 of the Disclosure Schedule. Except as set forth in Section 4.10 of the Disclosure Schedule,
in the past five (5) years, the Company has not received any written notice from any Governmental Authority regarding any actual material
violation of, or material failure to comply with, any Law or Order applicable to the Company or regarding the failure to hold any material
permit, license, certificate, accreditation or other material authorization of any Governmental Authority. All of such permits, licenses,
accreditations and authorizations will be available for use by the Company immediately after the Closing. The Company has not, directly
or indirectly, (i) made or agreed to make any contribution, payment or gift to any government official, employee or agent where either
the contribution, payment or gift or the purpose thereof was illegal under the Laws of any federal, state, local or foreign jurisdiction,
(ii) established or maintained any unrecorded fund or asset for any purpose or made any false entries on the books and records of the
Company for any reason, (iii) made or agreed to make any contribution, or reimbursed any political gift or contribution made by any other
person, to any candidate for federal, state, local or foreign public office, or (iv) paid or delivered any fee, commission or any other
sum of money or item of property, however characterized, to any finder, agent, government official or other party, in the United States
or any other country, which in any manner relates to the assets, business or operations of the Company. This Section 4.10 does
not relate to (i) Tax related matters, which are the subject of Section 4.7, or (ii) employee benefit matters, which are the subject
of Section 4.9.

 

    12

     

    

 

4.11
 Real and Personal Properties.

 

(a) The Company does not
own any real property. Section 4.11(a) of the Disclosure Schedule identifies all of the real property used pursuant to
leases, subleases, licenses, concessions or similar agreements (collectively, the “Leases”) by the Company
(collectively, the “Leased Real Property”). The Company is not a party to any agreement or option to purchase any
real property or interest therein.

 

(b) The Company holds a
valid and existing leasehold interest under each of the Leases to which it is a party for the terms set forth therein. All of the
Leases are in full force and effect and enforceable by the Company in accordance with their terms, subject to the Enforceability
Exceptions. The Company is not in material breach of or in material default under any Lease. Except as described on Section
4.11(b) of the Disclosure Schedule, no consent, waiver, approval or authorization is required from the landlord under any Lease
as a result of the execution of this Agreement or the consummation of the transactions contemplated herein. With respect to each
Lease, except as set forth in Section 4.11(b) of the Disclosure Schedule: (i) the Company’s possession and quiet
enjoyment of the Leased Real Property under such Lease has not been disturbed, and to the Sellers’ and Company’s
Knowledge, there are no material disputes with respect to such Lease; (ii) no security deposit or portion thereof deposited with
respect to such Lease has been applied in respect of a breach or default under such Lease which has not been redeposited in full;
(iii) the Company does not owe, and will not owe in the future, based upon any Contract in effect on the date hereof, any brokerage
commissions or finder’s fees with respect to such Lease; (iv) the Company has not collaterally assigned or granted any other
security interest in such Lease or any interest therein;

 

(c) The Leased Real Property
constitutes all of the real property currently owned, leased, occupied or otherwise utilized in connection with the business of the Company
as currently conducted and is sufficient for the continued conduct thereof. Other than the Company and any future lessees, there are
no parties in possession or parties having any current or future right to occupy any of the Leased Real Property. All buildings, structures,
improvements, fixtures, building systems and equipment, and all components thereof included in the Leased Real Property (the “Improvements”)
are in good operating condition and repair (normal wear and tear excepted) sufficient for the current conduct of the business of the
Company. The present use of the Leased Real Property and Improvements and the Company’s use thereof conform in all material respects
to all applicable building, zoning and other Laws. All material permits, licenses and other approvals necessary to the current occupancy
and use of the Leased Real Property have been obtained, are in full force and effect and have not been violated in any material respect.

 

(d) The Company has not received
written notice of any pending or contemplated condemnation, expropriation or other proceeding in eminent domain affecting the Leased
Real Property or any portion thereof or interest therein, and to the Sellers’ and Company’s Knowledge, no such proceeding
has been threatened against the Leased Real Property. The Company has not received any written notice that the current use and occupancy
of the Leased Real Property violates any Law in any material respect.

 

(e) The Company has good and
valid title to, a valid leasehold interest in, or otherwise has the right to use, the tangible personal properties material to the operation
of the business of the Company, as currently conducted, and reflected on the Acquisition Balance Sheet or acquired thereafter (except
for assets reflected thereon or acquired thereafter that have been disposed of in the ordinary course of business consistent with past
practice since the date of the Acquisition Balance Sheet), free and clear of all Liens (the “Company Assets”), except
for Liens identified or described in Section 4.11(e) of the Disclosure Schedule and Permitted Liens. The Company Assets which,
taken as a whole, are material to the conduct of the business of the Company as currently conducted, are in working condition and repair
for their age and intended use, normal wear and tear excepted. The Company Assets are sufficient for the conduct of its business as presently
conducted and as conducted as of the date of the Acquisition Balance Sheet.

 

    13

     

    

 

(f)
To the Sellers’ and Company’s Knowledge, all water, oil, gas, electrical, steam, compressed air, telecommunications,
sewer, storm and waste water systems and other utility services or systems for the Leased Real Property have been installed and are operational
and sufficient for the operation of the Company’s business as currently conducted thereon.

 

(g) No use or occupancy of
the Leased Real Property or any portion thereof or the operation of the business as currently conducted there on is dependent on a “permitted
non-conforming use” or “permitted non-conforming structure” or similar variance, exemption or approval from any Governmental
Authority.

 

(h) All real estate Taxes
which are due and payable with respect to the Leased Real Property have been paid. Sellers have not received any written notice of
any special Taxes affecting the Leased Real Property, and no such Taxes are pending or, to the Sellers’ and Company’s
Knowledge, threatened.

 

(i)
There are no claims, actions, governmental investigations, litigation or proceedings which are pending or, to the Sellers’
and Company’s Knowledge of Sellers, threatened against or otherwise relating to the Leased Real Property or any portion thereof
or interest therein.

 

(j)
To the Sellers’ and Company’s Knowledge, there are no outstanding, defaulted or unsatisfied contracts, commitments,
agreements or understandings which have been made to, with or for the benefit of any utility companies, school districts, water districts,
improvement districts or other Governmental Authority which could reasonably be expected to impose any obligation, liability or condition
on Sellers or the Company to grant any easements or to make any payments, contributions or dedications of money or land or to construct,
install or maintain or to contribute to the construction, installation or maintenance of any improvements of a public or private nature,
whether on or off the Leased Real Property.

 

4.12
Intellectual Properties.

 

(a) Section 4.12(a) of the
Disclosure Schedule sets forth a listing of (i) all registered Company Intellectual Property, (ii) all pending applications therefor,
(iii) trade or corporate names, material unregistered trademarks, and material unregistered service marks owned by the Company, and (iv)
any other material Intellectual Property rights owned by the Company.

 

(b) Section 4.12(b) of
the Disclosure Schedule sets forth a listing of all material written licenses (excluding Off-the-Shelf Software and end-user
licenses for mass market Software) pursuant to which the Company is a party either as a licensee or licensor and any other Contracts
under which the Company grants or receives any rights to Intellectual Property (the “Licenses”).

 

(c) The Company solely and
exclusively owns all right, title and interest in or has a valid and enforceable non-exclusive right or license to use pursuant to
the Licenses all of the Intellectual Property necessary for or used in the operation of the Business as currently conduct and as
presently proposed to be conducted. Except for the Company’s failure to obtain confidentiality and restrictive covenant
agreements from all Company Employee’s, the Company has taken reasonable measures, consistent with normal industry practices,
to maintain and protect the confidentiality of all trade secrets and other confidential information of the Company and its Business.
All Company Intellectual Property complies with all applicable Laws (including: payment of filing, examination and maintenance fees;
proofs of working or use; post registration filing of affidavits of use; and incontestability and renewal applications) and is not
subject to any outstanding consent, settlement, decree, order, injunction, judgment, ruling, or charge restricting the use thereof.
Notwithstanding anything to contrary in the foregoing, Company’s rights to the Licenses are subject to the Enforceability
Exceptions, and free and clear of all Liens.

 

(d) With respect to each
of the Licenses: (i) The Licenses are legal, valid, binding, enforceable against Company and against each other party thereto, and in
full force and effect; (ii) except as set forth in Section 4.12(e) of the Disclosure Schedule, the Company is not, and no other
party thereto is, in breach or default, and no event has occurred which with notice or lapse of time could constitute a breach or default
or permit termination, modification, or acceleration thereunder; (iii) no party to the Licenses has repudiated any material provision
thereof; and (iv) except as set forth in Section 4.12(e) of the Disclosure Schedule, no loss or expiration of the license is pending,
reasonably foreseeable (and not as a result of any act or omission by the Sellers, including without limitation, a failure by the Company
to pay any required maintenance fees), or threatened.

 

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(e)  Except
as set forth in Section 4.12(e) of the Disclosure Schedule, (i) no claim by any third party contesting the validity,
enforceability, use or ownership or registrability of any of the Company Intellectual Property has been made in writing, is
currently outstanding before any Governmental Authority or, to the Sellers’ and Company’s Knowledge, is threatened; (ii)
the Company has not received any written notice of any material infringement or misappropriation by, or any other conflict with, any
third party with respect to any Intellectual Property (including any demand or unsolicited offer that the Company license rights
from a third party); (iii) the Company has not infringed or misappropriated any intellectual property rights of any Person,; and
(iv) to the Sellers’ and Company’s Knowledge, no Person has infringed or misappropriated any Company Intellectual
Property and the Company has not brought any claim against any Person alleging the same.

 

(f)
Section intentionally left blank.

 

(g) The computer systems,
including the software, hardware, networks, interfaces, and related systems, owned, leased or licensed by the Company for use in the
business (collectively, “Business Systems”), are, consistent with or exceed current industry standards. Except for
interruptions in service by Comcast, which was previously the Company’s cable provider, in the last five (5) years, there has been
no unplanned disruption, unplanned interruption, unplanned outage or continued substandard performance of the Business Systems that has
materially affected the Company’s ability to conduct its business. The Company has taken commercially reasonable steps, consistent
with normal industry practices, to protect the security of the Business Systems against any unauthorized use, access, interruption, modification
or corruption, including the implementation of commercially reasonable back-up and recovery procedures and business continuity procedures.
To the Sellers’ and Company’s Knowledge, in the five (5) years before the Closing Date, there have not been any actual or
alleged incidents of data security breaches of the Business Systems or other unauthorized use of the Business Systems or any personal
information in the possession or under the control of the Company. The Company has taken commercially reasonable steps to provide for
the back-up and recovery of the data and other information critical to the conduct of its business (including such data and information
that is stored on magnetic or optical media) without material disruption to, or material interruption in, the conduct of the business.

 

    15

     

    

 

(h) To
the Sellers’ and Company’s Knowledge, the Company is in compliance in all material respects with (i) all applicable data
protection or privacy Laws governing the collection or use of personal information and (ii) any privacy policies or related policies,
programs or other notices that concern the Company’s collection or use of personal information. In the past five (5) years there
have not been complaints, notices to, audits, proceedings or investigations conducted or claims asserted, threatened or pending by any
other Person (including any Governmental Authority) arising from the matters referenced in preceding sentence. To the Sellers’ and
Company’s Knowledge, in the past five (5) years, there has not been any incidents of data security breaches, regarding the collection
or use of personal information by the Company.

 

(i) With
respect to each trade secret of the Company (including all of the Company Intellectual Property and other confidential information that
the Company regards as a trade secret): (i) the documentation relating to such trade secret is current, accurate and is sufficient in
detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory of any
individual; (ii) the Company has taken all commercially reasonable precautions to protect the secrecy, confidentiality and value of such
trade secret; and (iii) to the Sellers’ and Company’s Knowledge, such trade secret has not been used, divulged or appropriated
either for the benefit of any Person (other than the Company and its customers) or to the detriment of the Company. With respect to all
other design technologies, manufacturing techniques, process development, material technology, and drawings and specifications for products
(the “Know-How”) of the Company, the documentation relating to such Know-How is current, accurate and is sufficient
in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory of any
individual.

 

4.13 Contracts. Section
4.13 of the Disclosure Schedule sets forth a listing as of the date hereof of all of the currently effective Contracts (written or
oral) of the following types to which the Company is a party:

 

(a) Contracts
or group of related Contracts which involve commitments to make capital expenditures or which provide for the purchase of assets, goods
or services by the Company from any one Person in excess of Twenty-Five Thousand Dollars ($25,000) in any consecutive twelve (12) month
period;

 

(b) Contracts
or group of related Contracts which provide for the sale of goods or services by the Company in excess of Twenty-Five Thousand Dollars
($25,000) in any consecutive twelve (12) month period;

 

    16

     

    

 

(c) partnership,
joint venture or other similar type of Contract involving a sharing of profits or losses with any other Person;

 

(d) instruments
for borrowed money (including any indentures, guarantees, loan agreements, sale and leaseback agreements, mortgages, pledges, hypothecations,
deeds of trust, conditional sale or title retention agreements, security agreements or equipment financing obligations);

 

(e) employment,
non-competition and confidentiality agreements with any employee who receives salary and bonus in excess of Twenty-Five Thousand Dollars
($25,000) per annum or any other Contract with employees providing for severance, retention, change in control or other similar payments;

 

(f) Contracts
not otherwise disclosed herein which presently limit in any material respect the freedom of the Company to engage in any business or compete
with any Person;

 

(g) Contracts
pursuant to which the Company is a lessor or a lessee of any personal property, except for any such leases under which the aggregate annual
rent or lease payments do not exceed Fifty Thousand Dollars ($50,000) and which are not terminable by the Company upon ninety (90) days
or less advance notice;

 

(h) Contracts
with any Seller, officer or director of the Company, or any Affiliate of any of the foregoing, or in the case of any individual, any immediate
family member of any of the foregoing (other than those disclosed in subsection (e) above);

 

(i) Contracts
or group of related Contracts which involve commitments to make capital expenditures by the Company from any one Person in excess of Twenty-Five
Thousand Dollars ($25,000) in any consecutive twelve (12) month period and which are not terminable by the Company upon thirty (30) days
or less advance notice; and

 

(j) Contracts
under which the Company has made advances or loans to any other Person, other than employee loans in the ordinary course of business.

 

Correct and complete copies of each Contract required
to be identified in Section 4.13 of the Disclosure Schedule, including amendments thereto (or a true and accurate description of
the terms of each such oral Contract) (collectively, the “Material Contracts”), have been made available to Buyer.
Except as described in Section 4.13 of the Disclosure Schedule, as of the date of this Agreement: (i) all of the Material Contracts are
in full force and effect and are enforceable against the Company and, to the Sellers’ and Company’s Knowledge, the other parties
thereto, in accordance with their respective terms, subject in each case to the Enforceability Exceptions; (ii) the Company has performed
in all material respects all obligations required to be performed by it pursuant to such Material Contracts; (iii) there are no unresolved,
material defaults, breaches or violations of any of such Material Contracts by any other party thereto; (iv) the Sellers and Company do
not have any Knowledge of any existing or threatened breach or cancellation or termination in connection with any Material Contract; (v)
no event has occurred which with the passage of time or the giving of notice or both would result in a default or breach of any of such
Material Contracts by the Company.

 

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4.14 Litigation. Except
as set forth in Section 4.14 of the Disclosure Schedule, there are no actions, suits, arbitrations or proceedings, at Law or in
equity, pending or, to the Sellers’ and Company’s Knowledge, threatened against the Company, or any of its employees or Affiliates,
before any Governmental Authority in which the claim thereunder (a) involves more than Twenty-Five Thousand Dollars ($25,000); or (b)
could reasonably be expected to prevent or materially delay the consummation of the transactions contemplated hereby. The Company is
not subject to any Order or in material breach or violation of any Order.

 

4.15 Insurance. Section
4.15 of the Disclosure Schedule sets forth a listing of all insurance policies or binders currently owned, held by or applicable
to the Company (or its respective assets or business). All such policies are in full force and effect and all premiums that are due and
payable with respect thereto have been paid. No such policies provide for any retrospective premium adjustment or other experience-based
liability for which Company is liable. Such policies are of the type and in the amounts customarily carried by Persons conducting a business
similar to the business of the Company (including the overseas shipment of inventory) and are sufficient for material compliance with
all applicable Laws and Contracts to which the Company is a party or by which it is bound. Such policies will not be affected or terminated
or lapse by reason of the transactions contemplated herein. The Company has not received any written notice of cancellation or non-renewal
of any such policy or arrangement nor has the termination of any such policy or arrangement been threatened in writing. The Company does
not have any self-insurance or co-insurance program. A copy of each insurance policy has been made available to Buyer.

 

4.16 Environmental
Matters.

 

(a) The
Company is, and has at all times been, in material compliance with all Environmental Laws, which compliance has included maintaining and
complying with all permits, licenses, certificates, accreditation and other authorizations required pursuant to Environmental Laws (“Environmental
Permits”) for the occupation of the Leased Real Property and the operation of the business of the Company. Each Seller is unaware
of any basis for revocation or suspension of any such Environmental Permit and all such Environmental Permits are identified in Section
4.17(a) of the Disclosure Schedule. Except as specifically identified in Section 4.17(a) of the Disclosure Schedule, the Company
has not received any written or, to the Knowledge of the Sellers and Company, oral notice, report, order, directive, or other information
regarding any actual or alleged material violation of, or any Liability (including any investigatory, remedial or corrective obligation)
under, Environmental Laws. Without in any way limiting the generality of the foregoing, except as specifically identified in Section
4.16(a) of the Disclosure Schedule, (i) no asbestos is contained in or forms a part of any building, building component, structure
or office space currently owned, leased, or operated by the Company, and (ii) the Company has not owned or operated any property or facility
(including the Leased Real Property) contaminated by any Hazardous Materials.

 

(b) The
Company has not agreed to assume or accept responsibility by Contract for or provided an indemnity with respect to or otherwise become
subject to any liability of any other Person under Environmental Laws or with respect to Hazardous Materials.

 

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(c) Since
January 1, 2014 the Company has not owned, operated or leased any real property other than the Leased Real Property.

 

(d) The
Company has not received any notification of a material release or material threat of a release of a Hazardous Material at any site or
location, including with respect to any of the Leased Real Property, or with respect to the business operations conducted by the Company
or any prior occupant at or from the Leased Real Property, and the Company has not received written notification of a material release
or material threat of a release of a Hazardous Material at or relating to any of the Leased Real Property, or with respect to the business
operations conducted by Company or prior occupant at or from the Leased Real Property.

 

4.17 Related Party
Transactions. Except as set forth in Section 4.17 of the Disclosure Schedule, no officer,
director, stockholder, member or Affiliate of the Company, or, to the Sellers’ and Company’s Knowledge, member of the
immediate family of such a Person (each a “Related Person”): (a) owes any amount to the Company, nor does the
Company owe any amount to, or has the Company committed to make any loan or extend or guarantee credit to or for the benefit of, any
Related Person (other than any payments to, and reimbursement of fees and expenses of, employees, directors and officers of the
Company in the ordinary course of business); (b) has any direct or indirect interest in any material property or right, tangible or
intangible, that is used by the Company; (c) has any claim or cause of action against the Company, other than claims for accrued
compensation, benefits or expense reimbursement arising in the ordinary course of employment; or (d) is a party to any Contract with
the Company.

 

4.18 Material
Customers and Vendors. Section 4.18 of the Disclosure Schedule sets forth a listing of the
top twenty (20) customers of the Company based on the dollar amount of sales to such customers (the “Material
Customers”) and the top twenty (20) vendors of the Company based on the dollar amount of purchases from such vendors (the
“Material Vendors”), in each case for the twelve (12) month period ended September 30, 2021. Except as set forth
in Section 4.18 of the Disclosure Schedule, since the date of the Acquisition Balance Sheet, none of the Material Customers
or Material Vendors have delivered to the Company any written notice which (a) in the case of any Material Customer, materially
adversely changed its payment or pricing terms or its current agreements, programs or commitments with the Company or (b) in the
case of any Material Vendor, materially decreased its commitment to the Company.The terms under which each Material Vendor
supplies materials, products or services to the Company are at market rates and are the result of arm’s length transactions.
There are no material unresolved disputes between the Company, Sellers, or any of their respective Affiliates and any Material
Vendor.

 

4.19 Accounts
Receivable. The Company has delivered to the Buyer Parties a list of all of the Company’s accounts receivables (the “Accounts
Receivable List”). All of the accounts receivables set forth on the Accounts Receivable List have been legally and validly incurred
pursuant to bona fide transactions in the ordinary course of business. Except as set forth on the Accounts Receivable List, the Company
has not received written notice of any material claim or material dispute by its customers with respect to any of its outstanding accounts
receivable. All accounts receivable reflected on the Acquisition Balance Sheet or set forth on the Accounts Receivable List are valid
accounts receivables, are not subject to any set-offs or counterclaims, have been prepared from, and are in accordance with, the books
and records of the Company and arose solely out of bona fide sales and delivery of goods and performance of services. Notwithstanding
anything to the contrary contained in this Section 4.19, Company’s accounts receivable for purposes of this Agreement shall not
include any accounts ninety (90) or more days past due.

 

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4.20 Inventories.
All of the Company’s inventory reflected on the Acquisition Balance Sheet consists of raw materials and supplies, manufactured and
processed parts, work in process, and finished goods. All of the Company’s inventory is merchantable and fit for the purpose for
which it was procured or manufactured, and is not damaged, defective or obsolete, subject only to the reserve set forth on Section
4.21 of the Disclosure Schedule. Other than as set forth on Section 4.21 of the Disclosure Schedule, none of the inventory has been
held by the Company for a period of longer than twelve (12) months nor is held at levels in excess of a one-year supply. The finished
goods included in inventory are in good condition and of a quality and quantity that are saleable in the ordinary course of business at
a level sufficient to maintain the reasonably anticipated requirements of the business of the Company and to the extent manufactured for
a specific customer under a specific contract have been built to agreed specifications.  Section 4.20 of the Disclosure Schedule
sets forth each location at which the Company’s inventory is maintained.  None of the Company’s inventory has been consigned
(that is, delivered but not sold or sold with an unlimited right of return) to any Person.  The Company’s inventory is adequate
for the present needs of the business of the Company consistent with past practices and is fairly reflected on the books and records of
the Company. Since December 31, 2019, the Company has not sold, used or otherwise transferred any portion of the inventory except in the
ordinary course of business to a bona fide purchaser.

 

4.21 Bank
Accounts. Section 4.21 of the Disclosure Schedule sets forth with regard to each bank account, safety deposit box and lock
box of the Company, the name of the institution where such account is maintained, the account number, a list of the authorized signatories
and its purpose. Other than the accounts listed on Section 4.21 of the Disclosure Schedule, the Company does not maintain any accounts,
lockboxes or safe deposit boxes at any bank, trust company, savings institution, brokerage firm or other financial institution. Other
than as listed on Section 4.21 of the Disclosure Schedule, there are no outstanding powers of attorney executed on behalf of the
Company in respect of any of the Company Assets or the business of the Company, or which would affect the post-closing operation of the
business of the Company.

 

4.22 Product
Warranty. All products designed, marketed, sold, distributed or delivered by or on behalf of the Company during the previous five
(5) years (the “Company Products”) have been in conformity in all material respects with all applicable contractual
commitments and all express and implied warranties made by the Company. To the Sellers’ and Company’s Knowledge, there exist
no facts or circumstances that would reasonably be expected to result in or form the basis of any claim against the Company for material
Liability on account of any express or implied warranty to any third party in connection with the Company Products or services rendered
by the Company. No Company Product and no services rendered by the Company are subject to any guarantee, warranty or other indemnity,
other than the manufacturer’s warranty.

 

4.23 Product
Liability. All Company Products are, and during the previous five (5) years have been, without design defects or manufacturing defects.
During the previous five (5) years there have not been any, and there currently are no actions, suits, arbitrations or proceedings pending
or, to the Sellers’ and Company’s Knowledge, threatened against the Company involving a Company Product, in each case, resulting
from an alleged defect in any Company Product or any alleged failure to warn. The Company does not have any Liability in connection with
the business of the Company (and to the Sellers’ and Company’s Knowledge, there is no basis for any actions, suits, arbitrations
or proceedings giving rise to any Liability in connection with the business of the Company) arising out of any injury to individuals or
property as a result of the ownership, possession or use of any Company Product.

 

    20

     

    

 

4.24 International
Trade & Anti-Corruption Matters.

 

(a) Neither
the Company nor any officer, director, employee or independent contractor of the Company (or, to the Sellers’ and Company’s
Knowledge, any agent or other third parties acting on behalf of the Company or the Business) nor the Sellers are currently, or has been
in the last five (5) years: (i) a Sanctioned Person, (ii) organized, resident or located in a Sanctioned Country, (iii) engaging in any
dealings or transactions with any Sanctioned Person or in any Sanctioned Country, to the extent such activities violate applicable Sanctions
Laws or Ex-Im Laws, or (iv) otherwise in violation of applicable Sanctions Laws, Ex-Im Laws, or the anti-boycott Legal Requirements administered
by the U.S. Department of Commerce and the U.S. Department of Treasury’s Internal Revenue Service (collectively, “Trade Control
Laws”).

 

(b) Neither
the Company nor the Business has imported any merchandise into the United States that has been or is covered by an anti-dumping duty order
or countervailing duty order or is subject to or otherwise covered by any pending anti-dumping or countervailing duty investigation by
agencies of the United States government.

 

(c) During
the five (5) years prior to the date hereof, neither the Company, nor Sellers, in connection with or relating to the Business or any Company
Asset, received from any Governmental Authority or any other Person any notice, inquiry, or internal or external allegation; made any
voluntary or involuntary disclosure to a Governmental Authority; or conducted any internal investigation or audit concerning any actual
or potential violation or wrongdoing related to Trade Control Laws or Anti-Corruption Laws.

 

4.25 Brokerage. No
Person is or will become entitled, by reason of any Contract entered into or made by or on behalf of the Company, to receive any
commission, brokerage, finder’s fee or other similar compensation in connection with the consummation of the transactions
contemplated by this Agreement.

 

4.26 Solvency.
Neither Sellers nor Company is now insolvent or will be rendered insolvent by any of the transactions contemplated by this Agreement.

 

4.27 Sellers
have made no untrue statement of material fact or omitted to state a material fact necessary in order to make the statements made, in
light of the circumstances under which they were made, not misleading, nor has any Seller omitted to disclose any material fact known
to it to Buyer regarding the Company.

 

4.28 No Additional
Representations. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS ARTICLE 4 (AS MODIFIED BY THE
DISCLOSURE SCHEDULE) AND ANY COMPANY ANCILLARY AGREEMENTS, THE SELLERS EXPRESSLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES OF ANY
KIND OR NATURE, EXPRESS OR IMPLIED, AS TO THE CONDITION, VALUE OR QUALITY OF THE COMPANY, THE MEMBERSHIP INTEREST OR THE BUSINESS,
ASSETS AND LIABILITIES OF THE COMPANY.

 

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ARTICLE
5

Representations and Warranties of Buyer

 

Buyer, on behalf of itself
only, represents and warrants to Sellers as follows:

 

5.1 Organization; Authorization.
Buyer is a corporation or limited liability company duly organized, validly existing and in good standing
under the of its jurisdiction of formation. Buyer has all requisite corporate power and authority to execute, deliver and perform this
Agreement and each other agreement, instrument and document to be executed and delivered by Buyer pursuant hereto (collectively, the
“Buyer Ancillary Agreements”), and to consummate the transactions contemplated herein and therein. The execution,
delivery and performance by Buyer of this Agreement and the Buyer Ancillary Agreements and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly and validly authorized (by all requisite corporate action or otherwise) on the part of
Buyer.

 

5.2 Execution and Delivery;
Enforceability. This Agreement has been, and each Buyer Ancillary Agreement upon such delivery will
be, duly executed and delivered by Buyer and constitutes, or upon such delivery will constitute, the legal, valid and binding obligation
of Buyer, enforceable in accordance with its terms, except as such enforcement may be limited by the Enforceability Exceptions.

 

5.3 Noncontravention.

 

(a) Neither
the execution and delivery of this Agreement or any Buyer Ancillary Agreement, nor the consummation by Buyer of the transactions contemplated
hereby or thereby, nor compliance by Buyer with any of the provisions hereof or thereof, will: (i) conflict with or result in a breach
of any provisions of the Organizational Documents of Buyer; (ii) constitute or result in the breach of any term, condition or provision
of, or constitute a default under (with or without notice or lapse of time, or both), or give rise to any right of termination, consent,
amendment, cancellation, modification or acceleration with respect to, or give rise to any obligation of Buyer to make any payments under,
or result in the creation or imposition of a Lien upon any property or assets of Buyer pursuant to any Contract to which Buyer is a party
or by which any of its properties or assets may be subject; or (iii) violate any Law or Order applicable to Buyer or by which any properties
or assets owned or used by Buyer are bound or affected; except, in each case, as would not reasonably be expected to have a material adverse
effect on the ability of Buyer to consummate the transactions contemplated by this Agreement, or as would not materially impair the ability
of Buyer to consummate the transactions contemplated by this Agreement.

 

(b) No
consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority is required to be obtained
or made by Buyer in connection with: (i) the execution, delivery and performance by Buyer of this Agreement or any Buyer Ancillary Agreement
in connection herewith; or (ii) the compliance by Buyer with any of the provisions hereof or thereof or the consummation of the transactions
contemplated hereby or thereby.

 

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5.4 Brokerage. No
Person is or will become entitled, by reason of any agreement or arrangement entered into or made by or on behalf of Buyer, to receive
any commission, brokerage, finder’s fee or other similar compensation in connection with the consummation of the transactions contemplated
by this Agreement.

 

5.5 No
Consents. The execution and delivery by Buyer of this Agreement does not, and the performance of its obligations hereunder will not,
require any consent, approval, authorization or permit of, or filing with or notification to, any Governmental Authority or other Person.

 

5.6 Financial
Ability; Solvency. Buyer has sufficient financial resources to pay the Purchase Price and shall not incur any obligation, commitment,
restriction or liability of any kind that would reasonably be expected to impair or adversely affect Buyer’s ability to pay any
amount required to be paid pursuant to this Agreement. Buyer shall be solvent immediately after giving effect to the transactions contemplated
to occur hereunder. Buyer has not made an assignment for the benefit of creditors and has not filed any bankruptcy, reorganization, insolvency
or liquidation proceedings, nor has any such proceeding been instituted by or against Buyer.

 

ARTICLE
6

The Closing

 

The consummation of the transactions
contemplated herein (the “Closing”) will take place on the date hereof (the “Closing Date”). The
transfers and deliveries described in Article 7 shall be mutually interdependent and shall be regarded as occurring simultaneously,
and, any other provision of this Agreement notwithstanding, no such transfer or delivery shall become effective or shall be deemed to
have occurred until all of the other transfers and deliveries provided for in Article 7 shall also have occurred or been waived
in writing by the party entitled to waive the same. For purposes of allocation of expenses, adjustments, tax and other financial effects
of the transactions contemplated hereby, the Closing shall be deemed to have occurred at 11:59 p.m. Eastern Time on the Closing Date (the
“Effective Time”). For all other purposes, including passage of title and risk of loss, the effective time shall be
at the Closing.

 

ARTICLE
7

Closing Deliveries and Conditions to Closing

 

7.1 Closing Deliveries
of Sellers and the Company. (a) At the Closing, the Sellers shall deliver, or cause to be delivered,
the following items to Buyer:

 

(a) all
certificates for the Membership Interests, duly endorsed for transfer or accompanied by a duly executed stock power, or other appropriate
instrument of assignment and transfer, or if none, affidavits of lost or non-issued certificates to that effect;

 

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(b) the
written resignation, effective as of the Closing, of the Sellers in their respective capacities as Managers and officers of the Company,
as applicable;

 

(c) physical
possession of all books and records, licenses and permits, policies, contracts, plans or other instruments of the Company; provided, that
all such materials shall be deemed delivered to Buyer if they are present at the Company’s corporate office;

 

(d) a
copy of the Company’s formation documentation certified (as of a date not more than thirty (30) days prior to Closing) by the Secretary
of State (or equivalent governmental officer) of the state of its formation or organization, and a copy of its operating agreement, certified
by the Company’s Managers.

 

(e) payoff
letters in a commercially reasonable form with respect to the Repaid Closing Indebtedness, which letters provide for the dollar amount
required to repay in full all such Repaid Closing Indebtedness and for the termination and release of all Liens relating to the Repaid
Closing Indebtedness following satisfaction of the terms contained in such payoff letters;

 

(f) a
subsistence certificate of the Company as of a date not more than thirty (30) days prior to Closing from the Secretary of State of the
Commonwealth of Pennsylvania;

 

(g) a
certificate from the Company dated as of the Closing Date that complies with the requirements of Treasury Regulations § 1.1445-2(c)(3),
certifying that the Company is not a U.S. real property holding corporation;

 

(h) all
required consents set forth on the Disclosure Schedule which shall be in full force and effect, in a form reasonably acceptable to Buyer;

(i) counterpart
signature pages to the Employment Agreements, duly executed by Wynn Polin and Karl Herring; and

 

(j) evidence
of termination or release of all Company guarantees of any Affiliate or third-party Indebtedness.

 

Any agreement or document to
be delivered to Buyer pursuant to this Section 7.1, the form of which is not attached to this Agreement as an exhibit, shall be
in form and substance reasonably satisfactory to Buyer.

 

7.2 Closing Deliveries
of Buyer. (a) At the Closing, Buyer shall deliver, or cause to be delivered, the following items
to Sellers:

 

(a) 
the Closing Cash Payment to the Sellers’ Account in accordance with Section 2.3;

 

(b) Buyer
shall have satisfied, or caused to have been satisfied, the Repaid Closing Indebtedness, the Transaction Bonuses and the Selling Expenses
in accordance with Section 2.3;

 

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(c) a
certificate of good standing as of a date not more than thirty (30) days prior to Closing from the Secretary of State where Buyer is incorporated
or organized; and

 

(d) counterpart
signature pages to the Employment Agreements for Wynn Polin and Karl Herring, duly executed by the Company.

 

Any agreement or document to be delivered to Sellers
pursuant to this Section 7.2, the form of which is not attached to this Agreement as an exhibit, shall be in form and substance
reasonably satisfactory to Seller.

 

ARTICLE
8

Covenants and Agreements

 

8.1 Post-Closing
Publicity. On or after the Closing Date, Buyer and its Affiliates may issue a press release or similar public announcement with respect
to the transactions contemplated herein, so long as Buyer and its Affiliates do not disclose any of the transactions’ financial
terms in such press release or public announcement. Except as set forth in the foregoing sentence, following the Closing, no party hereto
shall make any press release or other public announcement concerning the transactions contemplated by this Agreement without the prior
approval of Buyer or Sellers, as the case may be (or in the case of a third party release or announcement, without the prior approval
of both of Buyer and Sellers), which approval shall not be unreasonably withheld, conditioned or delayed, except to the extent required
by Law. Without limiting the foregoing, no party hereto, without the prior written approval of Buyer or Sellers, as the case may be, shall
disclose the Purchase Price, the approximate amount of the Purchase Price, any other financial information from which the approximate
amount of the Purchase Price may be determined, or disclose any of the other essential terms of this Agreement except as required by Law
or required for financial reporting purposes and except that the parties (or their respective Affiliates) may disclose such terms to their
respective employees, accountants, advisors, and other representatives or their respective financing sources as necessary in connection
with the ordinary conduct of their respective businesses (so long as such Persons agree to or are bound by contract to keep the terms
of this Agreement confidential on terms substantially similar to those set forth in this Agreement that are applicable to the disclosing
party hereunder). Notwithstanding the foregoing Sellers may disclose that the transaction has occurred to its immediate family members.

 

8.2 Expenses.
Buyer shall pay all fees and expenses incident to the transactions contemplated by this Agreement which are incurred by Buyer or its representatives
or are otherwise expressly allocated to Buyer hereunder or such expenses as are accrued to Buyer on the Final Adjustment Statement, and
Sellers, or the Company (with the Company only being obligated for payment of any expenses of the Sellers and the Company if such payment
is made prior to the Closing or such expenses as are accrued to Seller on the Final Adjustment Statement) shall pay all fees and expenses
incident to the transactions contemplated by this Agreement which are incurred by the Sellers, or the Company or their respective representatives
or are otherwise expressly allocated to Seller hereunder.

 

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8.3 Access
by Sellers. Buyer shall, and shall cause the Company to, for a period of five (5) years after the Closing Date, during normal business
hours and upon reasonable advance notice, provide Sellers and its designees and representatives with such access to the books and records
of the Company as may be reasonably requested by Sellers, which shall be entitled, at their expense, to make extracts and copies of such
books and records; provided, however, that the Sellers shall treat confidentially any information obtained pursuant to this
Section 8.3, including, without limitation, any information related to Buyer, the Company or the business of the Company. Buyer
agrees that it shall not, during such five (5) year period, destroy or cause or permit to be destroyed any material books or records without
first obtaining the consent of Seller (or providing to Seller notice of such intent and a reasonable opportunity to copy such books or
records, at Sellers’ expense, at least thirty (30) days prior to such destruction).

 

8.4 Further
Assurances. From time to time during the first twenty-four (24) months after the Closing, at the request of any party hereto, each
other party hereto shall execute and deliver such further certificates, instruments and other documents and take, or cause to be taken,
such other action as such party may reasonably request to carry out the transactions contemplated hereby or as may be necessary, proper
or advisable under applicable Law.

 

8.5 Releases.

 

8.5.1 Seller
Release. Effective upon the Closing, each Seller, on behalf of himself, herself or itself, and each of their respective successors
and assigns (each, a “Seller Releasor”), and in his capacity as a stockholder, member, officer, director, or employee
of the Company, hereby releases, acquits and forever discharges, to the fullest extent permitted by Law, the Company and each of its current
officers, directors, stockholder, partners, members, Affiliates and employees (each, a “Company Releasee”) of, from
and against any and all actions, causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and
description whatsoever, arising from, connected or related to, caused by or based on any facts, conduct, activities, agreements, transactions,
events or occurrences known or unknown, of any type that existed, occurred, happened, arose or transpired from the beginning of time through
immediately prior to Closing; provided, however, that this release does not constitute a release of (i) any right to enforce
Sellers’ rights under this Agreement, any Seller Ancillary Agreement or any Company Ancillary Agreement or any Employment Agreement,
(ii) any rights of such Seller to indemnification under the Company’s Organizational Documents, (iii) any rights or claims of Seller
under or with respect to any Plan in accordance with the terms of such Plan, or (iv) any right or claim that shall arise from events on
or following Closing. Sellers agree not to, and agree to cause its respective Affiliates, and each of their respective successors and
assigns, not to, assert any such claims against the Company Releasees.

 

8.5.2 Buyer
Release. Effective upon the Closing, Buyer, on behalf of itself and the Company and each of their respective stockholders, directors,
employees, successors and assigns (each, a “Buyer Releasor”), hereby releases, acquits and forever discharges, to the
fullest extent permitted by Law, each Seller and, to the extent applicable, their respective Affiliates, agents, attorneys, successors
and assigns, in his capacity as a stockholder, member, officer, director, or employee of the Company, of, from and against any and all
actions, causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and description whatsoever,
arising from, connected or related to, caused by or based on any facts, conduct, activities, agreements, transactions, events or occurrences
known or unknown, of any type that existed, occurred, happened, arose or transpired from the beginning of time through immediately prior
to Closing; provided, however, that this release does not constitute a release by the Company or any of the Buyer Releasors
of any right to enforce its, his or her rights under this Agreement, any Buyer Ancillary Agreement, Company Ancillary Agreement, or any
Employment Agreement, or any other right or claim that shall arise from events following the Closing.

 

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8.6 Employee
and Employee Benefit Matters.

 

8.6.1 Credit.
As applicable and to the extent that Buyer does not maintain the employee benefit plans of the Company, on and after the Closing Date,
Buyer shall give each employee of the Company (the “Transferred Employees”) full credit for purposes of eligibility
to participate and vesting under any employee benefit plans or arrangements maintained by Buyer and its Affiliates made available to the
Transferred Employees and for all purposes under any severance plan, paid-time-off or vacation pay plan maintained by Buyer and its Affiliates
and made available to the Transferred Employees, for the Transferred Employees’ service to the Company to the same extent such service
is recognized by the comparable employee benefit plan or arrangements maintained by said Transferred Employee’s employer immediately
prior to the Closing. Each Transferred Employees shall have the same or better base salary, after Closing as they did immediately before
Closing.

 

8.6.2 Administration.
Following the date of this Agreement, the parties hereto shall cooperate in all matters reasonably necessary to effect the transactions
contemplated by this Section 8.6.

 

8.6.3 No
Amendment of Buyer Employee Benefit Plans. Notwithstanding anything in this Section 8.6 to the contrary, nothing contained
herein, whether express or implied, shall be treated as an amendment to or other modification of any employee benefit plan maintained
by Buyer or any of its Affiliates, or shall limit the right of Buyer to amend, terminate or otherwise modify any employee benefit plan
maintained by Buyer or any of its Affiliates following the Closing Date. If (a) a Person other than the Buyer, on the one hand, or the
Sellers, on the other hand, makes a claim or takes other action to enforce any provision in this Agreement as an amendment to any employee
benefit plan maintained by Buyer or any of its Affiliates and (b) such provision is deemed to be an amendment to such employee benefit
plan maintained by Buyer or any of its Affiliates even though not explicitly designated as such in this Agreement, then, solely with respect
to the employee benefit plan maintained by Buyer or any of its Affiliates at issue, such provision shall lapse retroactively and shall
have no amendatory effect with respect thereto.

 

8.6.4 No
Third-Party Beneficiaries. The parties hereto acknowledge and agree that all provisions contained in this Section 8.6 are included
for the sole benefit of the Buyer, on the one hand, and the Seller, on the other hand, and that nothing in this Agreement, whether express
or implied, shall create any third-party beneficiary or other rights (a) in any other Person, including any other employee or former employee
of the Company, any other participant in any employee benefit plan maintained by Buyer or any of its Affiliates or any dependent or beneficiary
thereof or (b) to continued employment with Buyer or any of its Affiliates.

 

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8.7 Non-Solicitation and
Non-Competition.

 

(a) Non-Competition.
In consideration of the mutual covenants provided for herein and the compensation to be paid to Sellers at the Closing, during the period
beginning on the Closing Date and ending sixty (60) months following the Closing Date (the “Non-Compete Period”), each
Seller agrees, for himself individually, and for no other, that he shall not directly or indirectly own any interest in, manage, control,
participate in, consult with, render services for, or in any manner engage in the Business or any business or activities that are the
same, similar or competing with the business of the Company during the term of the Seller’s ownership of or employment with the
Company, anywhere in the United States. Wynn Polin and Karl Herring each acknowledges that the Company’s business is planned to
be conducted nationally and agrees that the provisions in this Section 8.7 shall operate throughout the United States. Nothing herein
shall prohibit Wynn Polin and Karl Herring from being a passive owner of not more than three percent (3%) of the outstanding stock of
any class of a corporation which is publicly traded, so long as none has any active participation in the business of such corporation.

 

(b) Non-Solicitation.
During the Non-Compete Period, each Seller agrees (with respect to himself only) that he shall not directly or indirectly (i) induce
or attempt to induce any Person who is then in the employ of the business of the Company (“Covered Employees”), or
who is then providing services as a consultant or agent of the business of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and any employee thereof, (ii) hire any of the Covered Employees without Buyer’s
consent, which consent shall not be unreasonably withheld, or (iii) induce or attempt to induce any customer, supplier, vendor, service
provider, employee, licensee, licensor, lessor, franchisee or other business relation of the Company or the business of the Company to
cease doing business with the Company, or in any way interfere with the relationship between any such customer, supplier, vendor, service
provider, employee, licensee, licensor, lessor, franchisee or other business relation and the Company (including making any derogatory
statements or communications about Buyer, the Company or the business of the Company).

 

(c) Confidentiality.
Each Seller hereby undertakes (with respect to himself only) that during the Non-Compete Period, Sellers shall treat and hold as confidential
any information concerning the business or affairs of Buyer, the Company and the business of the Company that is not already generally
available to the public or does not become generally available to the public following the date hereof (the “Confidential Information”),
refrain from using any of the Confidential Information except in connection with this Agreement, and deliver promptly to Buyer, or destroy,
at the request and option of Buyer, all embodiments (including all copies) of the Confidential Information which are in Sellers’
possession or under Sellers’ control. In the event that Sellers are requested or required (by oral question or request for information
or documents in any Proceeding, or by interrogatory, subpoena, civil investigative demand, or similar process) to disclose any Confidential
Information, Sellers shall notify Buyer promptly in writing of the request or requirement so that Buyer may seek an appropriate protective
order or waive compliance with the provisions of this Section 8.7(c). If, in the absence of a protective order or the receipt of a waiver
hereunder, Sellers are, on the advice of counsel, compelled to disclose any Confidential Information to any tribunal or else stand liable
for contempt, Sellers may disclose the Confidential Information to the tribunal; provided, that Sellers shall use reasonable efforts
to obtain, at the request and sole cost and expense of Buyer, an order or other assurance that confidential treatment shall be accorded
to such portion of the Confidential Information required to be disclosed as Buyer shall designate.

 

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(d) Remedy
for Breach. Sellers acknowledge and agree that in the event of a breach by any Seller of any of the provisions of this Section 8.7,
monetary damages shall not constitute a sufficient remedy. Consequently, in the event of any such breach, the Company, Buyer and/or their
respective successors or assigns may, in addition to other rights and remedies existing in their favor, apply to any court of law or equity
of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of
the provisions hereof.

 

(e) Enforcement.
If the final judgment of a court of competent jurisdiction declares that any term or provision of this Section 8.7 is invalid or
unenforceable, the Parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce
the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid
or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which
the judgment may be appealed.

 

(f) Acknowledgment.
Seller expressly acknowledges and agrees that each and every restriction contained in this Section 8.7 is reasonable in all respects
(including with respect to subject matter, time period and geographical area) and such restrictions are necessary to protect Buyer’s
interest in, and value of, the Company (including the goodwill inherent therein).

 

(g) Individual
Responsibility of Sellers. The Buyer and the Company hereby expressly acknowledge and agree that each Seller shall be solely responsible
for his compliance with the provisions of this Section 8.7 and his Employment Agreement and he shall not be responsible for the compliance
of the other Seller to this Section 8.7 and to the other Seller’s Employment Agreement.

 

8.8 Use
of Marks. Each Seller agrees that, as of the Closing Date, it will cease to use, and shall not permit any of its respective Affiliates
or authorize any other Person to use, in any manner (including on the Internet, or as a company name or d/b/a in any sales literature,
sales material or in connection with any products or services or otherwise) all Marks associated with the business of the Company or owned
by the Company.

 

ARTICLE
9

Tax Matters

 

9.1 Apportionment
of Taxes. All Taxes and Tax liabilities with respect to the Sellers and Company that relate to a Straddle Period shall be apportioned
between the Pre-Closing Tax Period and the Post-Closing Tax Period as follows: (a) in the case of Taxes that are either (i) based upon
or measured by reference to income, receipts, profits, capital or net worth (including sales and use Taxes), (ii) imposed in connection
with any sale or other transfer or assignment of property (real or personal, tangible or intangible, other than as provided for in Section
9.5) or (iii) required to be withheld, such Taxes allocated to the Pre-Closing Tax Period shall be deemed equal to the amount which would
be payable if the Tax year ended at the end of the day on the Closing Date; and (b) in the case of Taxes imposed on a periodic basis with
respect to the Sellers other than those described in subsection (a) of this Section 9.1, such Taxes allocated to the Pre-Closing Tax Period
shall be deemed to be the amount of such Taxes for the entire period (or, in the case of such Taxes determined on an arrears basis, the
amount of such Taxes for the immediately preceding period), multiplied by a fraction, the numerator of which is the number of calendar
days in the period ending on the Closing Date and the denominator of which is the number of calendar days in the entire period.

 

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9.2 Tax
Returns; Refunds.

 

9.2.1 Tax
Returns. Except as otherwise provided in this Section 9.2.1, Seller (at its sole expense) shall cause the Company to prepare all Tax
Returns of the Company that relate to any Pre-Closing Tax Period or any Straddle Period (collectively, “Pre-Closing Tax Returns”)
and shall cause the Company to provide to Buyer drafts of such Pre-Closing Tax Returns for review and comment at least sixty (60) days
prior to the due date for the filing of each such Pre-Closing Tax Return, including extensions. Not later than thirty (30) days after
the Sellers have provided any such Pre-Closing Tax Return, Buyer shall notify Sellers of the existence of any objection, specifying in
reasonable detail the nature and basis of such objection that Buyer may have to any item set forth on such draft Pre-Closing Tax Return.
Buyer (on behalf of itself and the Company) and Sellers agree to consult and resolve in good faith any such objection. If such objection
cannot be resolved within five (5) days after delivery of such notice, the parties shall submit such dispute for resolution to the Independent
Accountants pursuant to the procedures set forth in Section 2.4.3. If the Independent Accountants cannot resolve such dispute no later
than five (5) days prior to the due date for filing the relevant Pre-Closing Tax Return, Seller shall cause the Company to file such Pre-Closing
Tax Return in the manner proposed by the Sellers; provided, however, if the dispute is ultimately resolved by the Independent Accountants
in favor of Buyer, Buyer may cause the Company to file an amendment to such Pre-Closing Tax Return consistent with the Independent Accountants’
determination. Except as otherwise required by Law, all Pre-Closing Tax Returns shall be prepared consistent with past practices and,
for the avoidance of doubt, will provide for a refund, in cash, whenever possible for the overpayment of Taxes or otherwise, rather than
a credit for Taxes due for any Post-Closing Tax Period. Sellers shall pay to Buyer, within fifteen (15) Business Days of Buyer’s
request, any and all Taxes due with respect to such Pre-Closing Tax Returns related to Pre-Closing Tax Periods, except to the extent such
Taxes are specifically reflected on the Final Adjustment Statement. Notwithstanding the foregoing, Sellers shall pay any Taxes due and
owing to the extent relating to a Pre-Closing Tax Period (except to the extent such Taxes are specifically reflected on the Final Adjustment
Statement). Buyer shall prepare any Company Tax Returns related to any Post-Closing Tax Period. Buyer or Company shall pay any Taxes due
and owing to the extent relating to a Post-Closing Tax Period. The Sellers shall provide all such Tax Returns to the Buyer for their review
and comment no later than thirty (30) days before the due date of such Tax Return.

 

9.2.2 Tax
Treatment. None of Buyer, the Company or any Affiliate thereof shall (a) make any election with respect to any Pre-Closing Tax Period,
(b) change the Tax treatment of any item on a Tax Return filed after the Closing Date as compared to the treatment of such item on a Tax
Return filed by the Company prior to the Closing Date or (c) file any amended Tax Return or initiate, propose or agree to any adjustment
of any item with the Internal Revenue Service or any other Taxing Authority with respect to any Pre-Closing Tax Period, if in any such
case such action could have the effect of increasing Sellers’ liability for any Taxes, reducing any Tax benefit of Sellers or increasing
the obligations set forth in this Agreement.

 

9.2.3 Refunds.
If the Company receives a Tax refund, applies a credit against Taxes, or is able to utilize a credit carryforward, which refund, credit
or credit carryforward arises from or is attributable to a Pre-Closing Tax Period, such refund or the amount of such credit or credit
carryforward shall be paid to Sellers; provided, however, that Sellers shall not be entitled to any such payment (a) to
the extent reflected in the Final Adjustment Statement or (b) attributable to any carryback of an item from a Post-Closing Tax Period.
If applicable, Buyer shall cause the Company to prepare, and the Company to file, within fifteen (15) days after the Closing Date, an
IRS Form 4466 (and any comparable state and local Tax form) seeking the refund of the amount available for prior Tax payments made by
the Company and upon Buyer’s receipt of any refund to which Sellers are entitled hereunder, pay such amount to Sellers.

 

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9.3 Controversies.
Buyer shall cause the Company to notify Sellers in writing within ten (10) days of the receipt by Buyer
or the Company of any notice of any inquiries, assessments, proceedings or similar events received from any Taxing Authority with respect
to Taxes of the Company for which Sellers may be responsible for payment, directly or indirectly (any such inquiry, assessment, proceeding,
litigation, audit or similar event, a “Tax Matter”). Sellers may, at their own expense, participate in and, upon written
notice to Buyer, assume the defense of any such Tax Matter. If Sellers assume such defense, Sellers shall have the authority, with respect
to such Tax Matter, to represent the interests of the Company before the relevant Taxing Authority and have the right to control the
defense, compromise or other resolution of such Tax Matter subject to the limitations contained herein, including responding to inquiries,
and contesting, defending against and resolving any assessment for additional Taxes or notice of Tax deficiency or other adjustment of
Taxes of, or relating to, such Tax Matter. Buyer has the right (but not the duty) to participate in the defense of such Tax Matter that
Sellers are defending and to employ counsel, at its own expense, separate from the counsel employed by Sellers. Sellers shall not enter
into any settlement of, or otherwise compromise, any such Tax Matter to the extent that it adversely affects the Tax liability of Buyer,
the Company or any Affiliate of the foregoing for a Post-Closing Tax Period without the prior written consent of Buyer which consent
shall not be unreasonably withheld, conditioned or delayed. Sellers shall keep Buyer informed with respect to the commencement, status,
and nature of any such Tax Matter, and will, in good faith, allow Buyer to consult with it regarding the conduct of or positions taken
in any such proceeding. If Sellers do not assume the defense of such Tax Matter, Buyer shall keep Sellers informed of the progress of
such Tax Matter from time to time and shall consult with Sellers with respect to such Tax Matter. Sellers shall have the right (but not
the duty) to participate in the defense of such Tax Matter that Buyer or the Company is defending and to employ counsel, at their own
expense, separate from counsel employed by Buyer or the Company. Neither Buyer nor the Company shall have the right to settle (or to
consent to the settlement or compromise of) such Tax Matter without the prior written consent of Sellers (which consent shall not be
unreasonably withheld, conditioned or delayed) if such settlement or compromise would cause Sellers to be liable for actual payment of
any part of the settlement amount to be paid with respect to such Tax Matter or increase Sellers’ liability for Taxes. To the extent
the provisions of Section 10.4.1 conflict with the provisions of this Section 9.3, the provisions of this Section 9.3
shall control.

 

9.4 Cooperation. In
connection with the preparation of Tax Returns, audit examinations and any administrative or judicial proceedings relating to the
Tax liabilities imposed on the Company for all Pre-Closing Tax Periods, the parties shall cooperate fully with each other,
including, without limitation, the furnishing or making available during normal business hours of records, information, personnel
(as reasonably required), books of account, powers of attorney or other materials reasonably relevant or helpful for the preparation
of such Tax Returns, the conduct of audit examinations or the defense of claims by Taxing Authorities as to the imposition of Taxes.
Buyer agrees to (a) retain all books and records with respect to Tax matters pertinent to the Company relating to any
Pre-Closing Tax Period until the expiration of the applicable statute of limitations and any extension thereof for the respective
taxable periods, and to abide by all record retention agreements entered into with any Taxing Authority and (b) to give Sellers
reasonable written notice prior to transferring, destroying or discarding any such books and records and, if Sellers so requests,
Buyer shall allow Sellers to take possession of such books and records. Buyer and Sellers shall, upon request, use their
commercially reasonable efforts to obtain any certificate or other document from any Governmental Authority or any other Person as
may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the
transactions contemplated hereby).

 

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9.5 Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees
(including any penalties and interest), and all conveyance fees, recording charges and other such charges, in each case incurred in
connection with this Agreement shall be paid by Sellers when due, and Sellers shall, at its own expense, file all necessary Tax
Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and
fees, and, if required by applicable Law, Buyer shall cooperate with Sellers to cause the Company and all other Affiliates of
Sellers to join in the execution of any such Tax Returns and other documentation.

 

9.6 Successors. For
purposes of this Article 9, references to the Company, Sellers, or Buyer shall include successor entities or entities
that are treated as successors for U.S. federal income tax purposes.

 

ARTICLE
10

Indemnification

 

10.1 Indemnification
of Buyer. From and after the Closing and subject to the limitations contained herein, each Seller
shall, jointly and severally, indemnify, hold harmless, pay and reimburse Buyer and each of its officers, directors, employees,
agents, stockholders, Affiliates, successors and assigns (collectively, the “Buyer Indemnitees”), from and
against any Losses suffered or incurred by any Buyer Indemnitee on account of, arising from, or in connection with:

 

(a) any
inaccuracy in or breach of any of the representations and warranties made by such Seller, or the Company herein or in any signed certificate,
instrument or document delivered by the Company or Seller in connection with this Agreement; and

 

(b) any
breach or nonperformance of any of the covenants, undertakings or other agreements made by such Seller or the Company herein or in any
certificate, instrument or other document delivered by Sellers in connection with this Agreement.

 

Seller does not make and shall
not be deemed to have made, nor is the Buyer relying upon, any representation, warranty, covenant or obligation, other than those representations,
warranties, covenants and obligations that are expressly set forth in this Agreement. Neither Seller shall be obligated for any representation,
warranty, covenants, undertakings or other agreements made by the other Seller.

 

10.2 Indemnification
of Sellers. From and after the Closing and subject to the limitations contained herein, Buyer
shall indemnify, hold harmless, pay and reimburse the Sellers and each of their respective trustees, beneficiaries, Affiliates,
successors and assigns (collectively, the “Seller Indemnitees”), from and against any Losses suffered or incurred
by any Seller Indemnitee on account of, arising from or in connection with any inaccuracy in or breach of any of the representations
and warranties, or breach or nonperformance of any of the covenants, undertaking or other agreements made by Buyer herein or in any
certificate, instrument or other document delivered by Buyer in connection with this Agreement. Buyer does not make and shall not be
deemed to have made, nor is the Sellers relying upon, any representation, warranty, covenant or obligation, other than those
representations, warranties, covenants and obligations that are expressly set forth in this Agreement.

 

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10.3 Limitations on
Indemnification. Notwithstanding any other provision of this Agreement, the indemnification
obligations provided for in this Agreement shall be subject to the limitations and conditions set forth in this Section 10.3.

 

(a) Any
claim by a Buyer Indemnitee for indemnification pursuant to Section 10.1(a) shall be required to be made by delivering written
notice to Sellers no later than the twelve (12) month anniversary of the Closing Date; provided, that, any claim by a Buyer Indemnitee
for indemnification pursuant to Section 10.1(a) with respect to any of the Fundamental Representations may be made at any
time. Any covenants made by any Seller, or the Company herein which by their terms are to be performed following the Closing shall survive
the Closing in accordance with their respective terms.

 

(b) The
Buyer Indemnitees will make no individual claims unless in excess of Ten Thousand Dollars ($10,000) and shall not be entitled to indemnification
for any Losses arising under Section 10.1(a) until the aggregate amount of the Buyer Indemnitees’ claims for indemnification
under Section 10.1(a) exceeds the Indemnification Threshold and thereafter the Buyer Indemnitees shall be entitled to indemnification
under Section 10.1(a) only for amounts in excess of the Indemnification Threshold.

 

(c) The
maximum aggregate indemnification amount to which the Buyer Indemnitees may be entitled under Sections 10.1(a) as of any given
date shall be the then-remaining Indemnity Cap Amount which shall be supported in part by the Holdback Amount; provided, that (i)
the maximum aggregate indemnification amount to which the Buyer Indemnitees may be entitled under Sections 10.1(a) with respect
to the Fundamental Representations shall not be limited, and (ii) the Buyer Indemnitees shall be entitled to seek recovery for any Losses
for which the Buyer Indemnitees are entitled to indemnification in excess of the Holdback Amount as offsets against any 2022 True-Up Payment,
2023 Accelerated True-Up Payment, and/or 2023 True-Up Payment or from Sellers directly.

 

(d) The
Buyer Indemnitees shall not be entitled to indemnification under this Agreement if, and to the extent that, the Losses are reflected on
the Final Adjustment Statement.

 

(e) The
Buyer Indemnitees and the Seller Indemnitees shall take commercially reasonable steps to mitigate any Loss subject to Section 10.1
or Section 10.2, as the case may be, upon becoming aware of any event which would reasonably be expected to, or does give
rise thereto.

 

(f) The
amount of Losses payable by an indemnitor under this Article 10 shall be (i) reduced by any insurance proceeds received with respect
to the claim for which indemnification is sought, less any fees and costs associated with recovering such proceeds, and (ii) reduced
by any amounts recovered from any third parties, by way of indemnification or otherwise, with respect to the claim for which indemnification
is sought, less any fees and costs associated with recovering such proceeds. If any payment is made to an indemnitee in respect of Losses
after such Losses have been recovered from the indemnitor, the indemnitee shall promptly reimburse the indemnitor upon receipt of such
payment.

 

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(g) The
parties hereto acknowledge and agree that with respect to any claims for indemnification permitted pursuant to this Agreement, the survival
periods set forth in Section 10.3(a) shall govern when any such claim may be brought and shall replace and supersede any statute
of limitations that may otherwise be applicable.

 

(h) Notwithstanding
the fact that any indemnitee may have the right to assert claims for indemnification under or in respect of more than one provision of
this Agreement in respect of any fact, event, condition or circumstance, no indemnitee shall be entitled to recover the amount of any
Loss suffered by such indemnitee more than once, regardless of whether such Loss may be as a result of a breach of more than one representation,
warranty, obligation or covenant or otherwise. In addition, any liability for indemnification hereunder shall be determined without duplication
of recovery by reason of the state of facts giving rise to such liability, or a breach of more than one representation, warranty, covenant
or agreement, as applicable.

 

(i) The
limitations set forth in this Section 10.3 shall in no way limit the rights of the Buyer Indemnitees with respect to (i) any claims of,
or causes of action arising from, fraud or claims of, or causes of action for which the sole remedy sought is equitable relief or (ii)
any claims of action arising from Section 10.1(b). Buyer Indemnitees shall be entitled to seek recovery for any Losses for which the Buyer
Indemnitees are entitled to indemnification arising from Section 10.1(b) in excess of the Holdback Amount as offsets against any 2022
True-Up Payment, 2023 Accelerated True-Up Payment, and/or 2023 True-Up Payment or from Sellers directly.

 

10.4 Procedures
Relating to Indemnification.

 

10.4.1 Third-Party
Claims. In order for a party (the “indemnitee”) to be entitled to any indemnification provided for under this Agreement
with respect to, arising out of or involving a claim or demand made by any Person against the indemnitee (a “Third-Party Claim”),
such indemnitee must promptly deliver a notice in writing of the Third-Party Claim (a “Notice of Claim”) to the party
from whom indemnification hereunder is sought (the “indemnitor”). Such Notice of Claim shall state in reasonable detail
the amount or estimated amount of such claim (to the extent known) and shall identify the specific basis (or bases) for such claim, including
the representations, warranties, covenants or obligations in this Agreement alleged to have been breached. Failure to give such prompt
notification shall not affect the indemnification provided hereunder, except and only to the extent the indemnitor shall have been actually
prejudiced as a result of such failure. Thereafter, upon request by the indemnitor, the indemnitee shall deliver to the indemnitor, without
undue delay, copies of all notices and documents (including court papers received by the indemnitee) relating to the Third-Party Claim
so long as any such disclosure could not reasonably be expected to have an adverse effect on the attorney-client or any other privilege
that may be available to the indemnitee in connection therewith.

 

Within ten (10) Business Days
of receiving a Notice of Claim, the indemnitor may elect to assume and control the defense of the Third-Party Claim set forth therein,
with counsel selected by the indemnitor, by providing written notice thereof to the indemnitee and acknowledging in such notice the indemnitor’s
indemnification obligations toward the indemnitee in respect of such Third-Party Claim. If the indemnitor assumes such defense in accordance
with the preceding sentence, the indemnitee shall have the right to participate in the defense thereof and to employ counsel, at its own
expense, separate from the counsel employed by the indemnitor, it being understood that the indemnitor shall control such defense; provided,
that the indemnitee shall be entitled, at the indemnitor’s expense, to retain one firm of separate counsel of its choosing (along
with any required local counsel) if (a) the indemnitor and indemnitee so mutually agree, (b) the indemnitor fails to retain counsel reasonably
satisfactory to the indemnitee within ten (10) Business Days of receiving the applicable Notice of Claim, (c) the indemnitee shall have
reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the
indemnitor or (d) the named parties in any such proceeding (including any impleaded parties) include both the indemnitor and indemnitee
and representation of both sets of parties by the same counsel would be inappropriate due to actual or potential differing interests between
them. If the indemnitor does not assume the defense of a Third-Party Claim in accordance with this paragraph within twenty (20) Business
Days after delivery of the applicable Notice of Claim, the indemnitee against which such Third-Party Claim has been asserted shall (upon
delivering notice to such effect to the indemnitor) have the right to undertake the defense, compromise and settlement of such Third-Party
Claim (subject to the following paragraph), and the indemnitor shall be liable for any resulting settlement of such Third-Party Claim
and for any final judgment with respect thereto, subject in all cases to the limitations and other defenses that the indemnitor has or
may have hereunder. In the event the indemnitor assumes the defense of the Third-Party Claim in accordance with this paragraph, the indemnitor
shall keep the indemnitee reasonably informed of the progress of any such defense, compromise or settlement, and in the event that indemnitee
assumes the defense of the claim in good faith, the indemnitee shall keep the indemnitor reasonably informed of the progress of any such
defense, compromise or settlement. If the indemnitor so assumes the defense of any Third-Party Claim in accordance with this paragraph,
all of the indemnified parties shall reasonably cooperate with the indemnitor in the defense or prosecution thereof. Such cooperation
shall include, at the expense of the indemnitor, the retention and (upon the indemnitor’s request) the provision to the indemnitor
of records and information which are reasonably relevant to such Third-Party Claim, and making employees available on a mutually convenient
basis to provide additional information and explanation of any material provided hereunder.

 

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The indemnitee shall not settle,
compromise or discharge such Third-Party Claim without the indemnitor’s prior written consent (which consent shall not be unreasonably
withheld, conditioned or delayed). The indemnitor shall not, without the written consent of the indemnitee (which consent shall not be
unreasonably withheld, conditioned or delayed), enter into any settlement, compromise or discharge or consent to the entry of any judgment
which imposes any obligation or restriction upon the indemnitee or does not include as an unconditional term thereof the giving by each
claimant or plaintiff to such indemnitee of a release from all liability with respect to such Third-Party Claim.

 

10.4.2 Other
Claims. In the event any indemnitee should have a claim against any indemnitor under this Agreement that does not involve a Third-Party
Claim, the indemnitee shall deliver written notice of such claim to the indemnitor promptly following discovery of any indemnifiable Loss,
but in any event, in the case of the Buyer Indemnitees, not later than the last date set forth in Section 10.3 for making
such claim, to the extent applicable. Failure to give such notification shall not affect the indemnification provided hereunder except
to the extent the indemnitor shall have been actually prejudiced as a result of such failure. Such notice shall state in reasonable detail
the amount or an estimated amount of such claim (to the extent known), and shall specify the facts and circumstances which form the basis
(or bases) for such claim, and shall further specify the representations, warranties or covenants alleged to have been breached. Upon
receipt of any such notice, the indemnitor shall notify the indemnitee as to whether the indemnitor accepts liability for any Loss. If
the indemnitor disputes its liability with respect to such claim in whole or in part or fails to respond to the same within thirty (30)
days from receipt of such notice, the indemnitee shall be free to pursue such remedies as may be available to the indemnitee under this
Agreement or applicable Law; provided, however, that indemnitee shall not be required to provide notice before pursuing such injunctive
relief as may be available to the indemnitee under this Agreement or applicable Law.

 

10.5  Holdback
Amount. For any Loss for which the Sellers are obligated to indemnify the Buyer Indemnitees, the Buyer Indemnitees shall seek
reimbursement for such Loss from the Holdback Amount first, and once the Holdback Amount is exhausted, then the Buyer Indemnitees
may proceed to collect the unreimbursed amount of such Loss: (a) in the case of any indemnification claim pursuant to Section
10.1(a) or (b), from any offset against any 2022 True-Up Payment, 2023 Accelerated True-Up Payment, and/or 2023 True-Up Payment,
or (b) in the case of any indemnification claim pursuant to Section 10.1(a) or (b), the Seller jointly and severally, subject
to the limitations set forth in this Agreement, which may be satisfied by payment (to be made within fifteen (15) days after the
final determination of such Losses) of such amount of such Losses owed by the Sellers in immediately available funds to an account
designated in writing by Buyer Indemnitees. The foregoing restrictions shall be in addition to, and not in limitation of, any
further limitation of liability that might otherwise apply (whether by reason of a Buyer Indemnitee’s waiver, relinquishment
or release of any applicable rights or otherwise). Buyer may not hold any portion of the Holdback Amount more than twelve (12)
months after the Closing Date, unless mutually agreed upon by the parties, and on the first annual anniversary of this Agreement
Buyer shall pay the remaining Holdback Amount, less any pending claims to the Sellers. Once any pending claims are resolved in
accordance with this Agreement, the then remaining Holdback Amount shall be paid to Sellers.

 

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10.6 Limitation of
Remedies. Each party acknowledges and agrees that, should the Closing occur, the sole and exclusive remedy with respect to any
and all claims relating to this Agreement or the transactions contemplated hereby (other than claims of, or causes of action arising
from fraud or claims of, or causes of action for which the sole remedy sought is equitable relief) shall be pursuant to the
indemnification provisions set forth in this Article 10. In furtherance of the foregoing, Buyer and Seller, hereby waive
on behalf of itself or himself and all other Persons who might claim by, through or under him or it, from and after the Closing, any
and all rights, claims and causes of action (other than claims of, or causes of action arising from fraud or claims of, or causes of
action for which the sole remedy sought is equitable relief) which any such other Person may have arising under or based upon any
Law and that relates to the transactions contemplated herein or to any aspect of the businesses of the Company, except pursuant to
the indemnification provisions set forth in this Article 10.

 

10.7 Subrogation. Upon
making any indemnity payment pursuant to Sections 10.1 or 10.2, as applicable, the indemnitor shall be subrogated to all
rights of the indemnitee or reimbursed party, as applicable, against any third party in respect of the Losses to which the payment related.
The parties hereto will execute upon request, all instruments reasonably necessary to evidence and perfect the above-described subrogation
rights.

 

10.8 Characterization
of Indemnification Payments. The parties agree that any indemnification payments made pursuant to this Article 10 shall
be treated for all Tax purposes as an adjustment to the Cash Purchase Price unless otherwise required by Law.

 

10.9 Knowledge
No Affect. No knowledge of any breach, claim, Liability, or other obligation, whether obtained by notice hereunder or otherwise, will
affect any party’s right to indemnification or other remedy provided for in this Agreement in respect of any such matter of which
it obtains knowledge or receives such notice unless the relevant party expressly waives such right or remedy in writing.

 

ARTICLE
11

Certain Definitions

 

When used in this Agreement,
the following terms in all of their tenses, cases and correlative forms shall have the meanings assigned to them in this Article 11,
or elsewhere in this Agreement as indicated in this Article 11:

 

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

 

“Accounting Policies”
is defined in Section 2.3.

 

“Accounts Receivable
List” is defined in Section 4.19.

 

“Acquisition Balance
Sheet” is defined in Section 4.5(a).

 

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“Affiliate”
of a specified Person means any other Person which, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with such specified Person, and, if such specified Person is a natural person, any of such
Person’s parents, brothers, sisters, spouse or children. For purposes of this definition, “control” of any
Person means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting capital stock or equity interests, by Contract, or otherwise.

 

“Agreement”
means this Membership Interest Purchase Agreement.

 

“Allocation Statement”
is defined in Section 12.16(a).

 

“Audited Financial
Statements” is defined in Section 4.5(a).

 

“Business”
means the business of the Company, as conducted as of the date hereof and during the immediately preceding twelve (12) months, including
the business of providing computer technology-based hardware products, inclusive of mobile computers, portable and mounted printers, consumables,
professional services, managed services, repair services, deployment services and integrated software directly to end users in the fields
of wireless LAN infrastructure, RFID solutions, voice directed solutions and Automatic Identification and Data Collection (AIDC) solutions.

 

“Business Day”
means any day other than a Saturday, Sunday or day on which banking institutions in Los Angeles, California are authorized or obligated
pursuant to Law to be closed.

 

“Business Systems”
is defined in Section 4.12(g).

 

“Buyer”
is defined in the preamble of this Agreement.

 

“Buyer Ancillary
Agreements” is defined in Section 5.1.

 

“Buyer Indemnitees”
is defined in Section 10.1.

 

“Buyer Releasor”
is defined in Section 8.5.2.

 

“Cash Purchase Price”
is defined in Section 2.2(a).

 

“Closing”
and “Closing Date” are defined in Article 6.

 

“Closing Cash Payment”
is defined in Section 2.3.

 

“Closing Certificate”
is defined in Section 2.3.

 

“Closing Indebtedness”
means the Indebtedness of the Company immediately prior to the Closing. For the avoidance of doubt, Closing Indebtedness will be determined
without giving effect to the transactions contemplated hereby.

 

“Closing
Working Capital” means the Working Capital of the Company as of the Effective Time. For the avoidance of doubt, Closing
Working Capital will be determined without giving effect to the transactions contemplated hereby. For purposes of clarity, the
parties acknowledge and agree that any cash collected by Company prior to Closing for services and products that will be delivered
by Company after the Closing Date is deemed by the parties to be a current liability of Company on the Closing Date.

 

    37

     

    

 

“Code”
means the United States Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

“Collective Bargaining
Agreement” means any collective bargaining agreement, labor Contract or other Contract with any labor union, works council or
employee organization.

 

“Company”
is defined in the preamble of this Agreement.

 

“Company Ancillary
Agreements” is defined in Section 4.1(b).

 

“Company Assets”
is defined in Section 4.11(e).

 

“Company Intellectual
Property” means Intellectual Property owned by the Company.

 

“Company’s
Knowledge” and “Sellers’ Knowledge” means the actual present knowledge of Wynn Polin and/or Karl Herring,
and the knowledge each such individual would have after a reasonable review of the Company’s books and records.

 

“Company Products”
is defined in Section 4.22.

 

“Company Releasee”
is defined in Section 8.5.1.

 

“Contract”
means any legally binding written contract, agreement, lease or license, but specifically excluding quotes and responses to requests for
proposals.

 

“Disclosure Schedule”
is the confidential disclosure schedule, dated as of the date hereof, delivered to Buyer in connection with the execution and delivery
of this Agreement.

 

“Effective Time”
is defined in Article 6.

 

“Employment Agreement”
means each Employment Agreement between Wynn Polin or Karl Herring and the Company, in the form attached hereto as Exhibit 11A.

 

“Enforceability Exceptions”
is defined in Section 3.3.

 

“Environment”
means soil, surface waters, groundwater, land, stream, sediments, surface or subsurface strata or ambient air.

 

“Environmental Claim”
means any claim, action, cause of action, suit, proceeding, investigation, order, demand or notice by any Person alleging actual or potential
liability (including actual or potential liability for investigatory costs, cleanup costs, governmental response costs, natural resources
damages, property damages, personal injuries, attorneys’ fees, or penalties) arising out of, based on or resulting from or relating
to (a) the presence, Release or threatened Release of, or exposure to, any Hazardous Materials at any location, whether or not owned or
operated by the Company, or (b) circumstances forming the basis of any violation or alleged violation of any Environmental Law.

 

    38

     

    

 

“Environmental Law”
means, whenever in effect, any Law or contractual obligation, in each case concerning public or worker health or safety, pollution or
protection of human health or the Environment. Environmental Laws shall include, without limitation, Laws relating to (i) Releases or
threatened Release of, or exposure to, Hazardous Materials, (ii) the manufacture, registration, distribution, formulation, packaging or
labeling of Hazardous Materials or products containing Hazardous Materials, (iii) the manufacture, processing, distribution, use, treatment,
generation, storage, containment, transport or handling of Hazardous Materials, (iv) recordkeeping, notification, disclosure, or reporting
requirements regarding Hazardous Materials, (v) endangered or threatened species of fish, wildlife and plants, and the management or use
of natural resources, and (vi) the preservation of the environment or mitigation of adverse effects on or to human health or the environment.

 

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

 

“Estimated Closing
Indebtedness” is defined in Section 2.3.

 

“Estimated Closing
Working Capital” is defined in Section 2.3.

 

“Estimated Cash Purchase
Price” is defined in Section 2.3.

 

“Estimated Selling
Expenses” is defined in Section 2.3.

 

“Estimated Transaction
Bonuses” is defined in Section 2.3.

 

“Final Adjustment
Statement” is defined in Section 2.4.4.

 

“Final Allocation
Statement” is defined in Section 12.16(a).

 

“Final Post-Closing
Adjustment” is defined in Section 2.4.4.

 

“Financial Statements”
is defined in Section 4.5(a).

 

“Fundamental Representations”
means, collectively, those representations and warranties set forth in Section 3.1 Authority; Capacity and Representation; Section
3.2 Ownership of Membership Interests; Section 3.3 Execution and Delivery, Enforceability; Section 3.6 Brokerage; Section
4.1(a), 4.1(b) and (c) Organization and Good Standing, Authority, Enforceability; Section 4.2 Membership Interests of
Company; Section 4.7 Taxes; Section 4.16 Environmental; and Section 4.25 Brokerage.

 

“GAAP”
means generally accepted accounting principles, as in effect in the United States either from time to time as applied to periods prior
to the Closing Date or as applied on the Closing Date, as applicable, and in either case, applied on a basis consistent with the past
practices of the Company.

 

    39

     

    

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of any such government or political subdivision, or any self-regulated organization or other non-governmental
regulating authority (to the extent that the rules, regulations or orders of such authority have the force of law), or any
arbitrator, tribunal or court of competent jurisdiction.

 

“Gross-Up Amount”
is defined in Section 12.16(b).

 

“Hazardous Material”
means any hazardous, toxic, deleterious, radioactive, noxious or harmful chemical, substance, waste, material, pollutant, or contaminant,
petroleum and petroleum products, by-products, derivatives or wastes, greenhouse gases, asbestos or asbestos-containing materials or products,
polychlorinated biphenyls (PCBs) or materials containing same, lead or lead-based paints or materials above legally acceptable levels.

 

“Holdback Amount”
means Two Hundred Fifty Thousand Dollars ($250,000) to be held, disbursed and/or released by Buyer pursuant to the terms hereof.

 

“Improvements”
is defined in Section 4.11(c).

 

“Indebtedness”
means, as at any date of determination thereof (without duplication), all obligations of the Company not included in Working Capital in
respect of: (a) any borrowed money or funded indebtedness or obligations issued in substitution for or exchange for borrowed money or
funded indebtedness (including obligations with respect to principal, accrued interest and any applicable prepayment charges or premiums);
(b) any indebtedness evidenced by any note, bond, debenture or other debt security; (c) capital lease obligations; (d) any indebtedness
guaranteed by the Company; (e) any obligations with respect to any interest rate hedging or swap agreements; (f) the amount drawn
upon any letters of credit; (g) any accrued, but unpaid, employee bonuses, deferred compensation or severance payments due and owing by
the Company; (h) any pension obligations; (i) all customer deposits and deferred revenue; and (j) all earnout obligations to any third
party. The foregoing calculation of Indebtedness shall not include the principal amount of any undrawn letters of credit or the amount
of issued but uncleared checks, wire transfers and drafts written or issued by the Company as of the Closing Date.

 

“Indemnification
Threshold” means Fifty Thousand Dollars ($50,000).

 

“indemnitee”
and “indemnitor” are defined in Section 10.4.1.

 

“Indemnity Cap Amount”
means Five Hundred Thousand Dollars ($500,000).

 

“Independent Accountants”
is defined in Section 2.4.3.

 

“Intellectual
Property” means any of the following in any jurisdiction throughout the world: (a) patents, patent applications, patent
disclosures and inventions, including any continuations, divisionals, continuations-in-part, renewals and reissues for any of the
foregoing; (b) Internet domain names, trademarks, service marks, trade dress, trade names, logos, slogans and corporate names and
registrations and applications for registration thereof together with all of the goodwill associated therewith; (c) copyrights
(registered or unregistered) and copyrightable works and registrations and applications for registration thereof; (d) mask works and
registrations and applications for registration thereof; (e) computer Software (excluding Off-the-Shelf Software), data, data bases
and documentation thereof; (f) trade secrets and other confidential information (including ideas, formulas, compositions, inventions
(whether patentable or unpatentable and whether or not reduced to practice), know-how, manufacturing and production processes and
techniques, research and development information, drawings, specifications, designs, plans, proposals, technical data, copyrightable
works, financial and marketing plans and customer and supplier lists and information) (collectively, “Trade
Secrets”); and (g) copies and tangible embodiments thereof (in whatever form or medium).

 

    40

     

    

 

“Know-How”
is defined in Section 4.12(i).

 

“Law” means
any federal, state, regional, local or foreign law, statute, ordinance, code, treaty, rule, regulation, order or requirement of any Governmental
Authority.

 

“Leased Real Property”
is defined in Section 4.11(a).

 

“Leases”
is defined in Section 4.11(a).

 

“Licenses”
is defined in Section 4.12(b).

 

“Lien”
means any lien (including mechanic’s and materialman’s liens), charge, mortgage, pledge, easement, encumbrance, security interest,
matrimonial or community interest, tenancy by the entirety claim, adverse claim, judgment, encumbrance or any other title defect or restriction
of any kind.

 

“Loss”
or “Losses” means any and all losses, liabilities, damages, demands, claims, costs, suits, actions or causes of action,
judgments, awards, assessments, interests, penalties or expenses.

 

“Material Adverse
Effect” means any change, event, circumstance, development, occurrence or effect that individually or taken together with any
other change, event, circumstance, development, occurrence or effect is, or would reasonably be expected to be materially adverse to the
business, operations, financial condition properties, assets, liabilities or results of operations of the Company taken as a whole, provided,
however, that changes in business or economic conditions affecting the economy or the Company’ industries generally will
not be deemed, either alone or in combination, to constitute, and none of the following will be taken into account in determining whether
there has been, a “Material Adverse Effect.”

 

“Material Contracts”
is defined in Section 4.13.

 

“Material Customers”
is defined in Section 4.18.

 

“Material Vendors”
is defined in Section 4.18.

 

“Membership Interests”
is defined in the recitals of this Agreement.

 

“Most Recent Financial
Statements” is defined in Section 4.5(a).

 

“Notice of Claim”
is defined in Section 10.4.1.

 

    41

     

    

 

“Off-the-Shelf Software”
means off-the-shelf personal computer software, as such term is commonly understood, that is commercially available under non-discriminatory
pricing terms on a retail basis.

 

“Order”
means any judgment, injunction, award, decision, decree, ruling, verdict, writ or order of any nature of any Governmental Authority.

 

“Organizational Documents”
means the certificate of organization, change of registered address, fictitious name filing, and limited liability company operating agreement
of the Company, and all amendments thereto.

 

“Permits”
is defined in Section 4.10.

 

“Permitted Liens”
means: (a) mechanics’, carriers’, workmen’s, repairmen’s or other like Liens arising or incurred in the ordinary
course of business; (b) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties
entered into in the ordinary course of business and under which the Company is not in default; (c) Liens arising by operation of Law,
including Liens arising by virtue of rights of customers, suppliers and subcontractors in the ordinary course of business under general
principles of commercial Law; (d) Liens for current Taxes and utilities not yet due and payable or which are being contested in good faith;
(e) Leases set forth in Section 4.11(a) of the Disclosure Schedule; (f) easements, covenants, rights-of-way and other similar restrictions
or conditions of record or which would be shown by a current accurate survey of any of the Leased Real Property, none of which, individually
or in the aggregate, materially impairs the continued use and operation of such Leased Real Property; (g): (i) zoning, building and other
similar restrictions imposed by applicable Laws; (ii) Liens that have been placed by any developer, landlord or other third party on property
over which the Company has easement rights or, on any Leased Real Property, under any lease or subordination or similar agreements relating
thereto; and (iii) unrecorded easements, covenants, rights-of-way and other similar restrictions on the Leased Real Property, none of
which, individually or in the aggregate, materially impairs the continued use and operation of such Leased Real Property; and (h) Liens
securing the Repaid Closing Indebtedness, which Liens will be released upon payment of the Repaid Closing Indebtedness at the Closing.

 

“Person”
means an individual, a corporation, a limited liability company, a partnership, a trust, an unincorporated association, a government or
any agency, instrumentality or political subdivision of a government, or any other entity or organization.

 

“Plans”
is defined in Section 4.9.

 

“Post-Closing Tax
Period” means any taxable period that begins after the Closing Date; in the case of a Straddle Period, the portion of the Straddle
Period that begins immediately after the Closing Date shall constitute a Post-Closing Tax Period.

 

“Pre-Closing Tax
Period” means any taxable period ending on or before the Closing Date; in the case of a Straddle Period, the portion of the
Straddle Period that ends on and includes the Closing Date shall constitute a Pre-Closing Tax Period.

 

“Pre-Closing Tax
Returns” is defined in Section 9.2.1.

 

    42

     

    

 

“Preliminary Adjustment
Statement” is defined in Section 2.4.1.

 

“Preliminary Post-Closing
Adjustment” is defined in Section 2.4.1.

 

“Pro Rata Ownership
Interest Percentage” means with respect to (a) Wynn Polin, fifty percent (50%); and (b) Karl Herring, fifty percent (50%).

 

“Purchase Price”
is defined in Section 2.2.

 

“Related Person”
is defined in Section 4.17.

 

“Release”
shall have the meaning assigned it at 42 U.S.C. Section 9601(22) without giving effect to exception clause (A) therein.

 

“Repaid Closing Indebtedness”
is defined in Section 2.3.

 

“Seller”
and “Sellers” are defined in the preamble of this Agreement.

 

“Seller Ancillary
Agreements” is defined in Section 3.1.

 

“Seller Indemnitees”
is defined in Section 10.2.

 

“Seller Releasor”
is defined in Section 8.5.1.

 

“Sellers’ Account”
is defined in Section 2.3.

 

“Selling Expenses”
means all of the fees and expenses for legal counsel, investment bankers, brokers, accountants and other advisors incurred by the Company
in connection with the preparation, negotiation and execution of this Agreement and the consummation or performance of the transactions
contemplated hereby, including, without limitation, the aggregate fees and expenses of the Company owed Harper Business Law, P.C. for
legal services provided to the Company.

 

“Software”
means, as they exist anywhere in the world, computer software programs, including all source code, object code, specifications, databases,
designs and documentation related to such programs.

 

“Straddle Period”
means a taxable period that begins on or before the Closing Date and ends after the Closing Date.

 

“Subsidiary”
and “Subsidiaries” means, as of the relevant date of determination, with respect to any Person, a corporation or other
Person of which 50% or more of the voting power of the outstanding voting equity interests or 50% or more of the outstanding economic
equity interest is held, directly or indirectly, by such Person.

 

    43

     

    

 

“Tax”
or “Taxes” means: any and all federal, state, provincial, local, foreign and other taxes, levies, fees, imposts,
duties, and similar governmental charges (including any interest, fines, assessments, penalties or additions to tax imposed in
connection therewith or with respect thereto) including, without limitation, (a) taxes imposed on, or measured by income, gross
receipts, franchise, or profits, and (b) license, payroll, employment, escheat, withholding, excise, severance, stamp, occupation,
premium, windfall profits, customs duties, capital stock, social security (or similar), unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, ad valorem capital
gains, goods and services, branch, utility, production and compensation taxes.

 

“Tax Matter”
is defined in Section 9.3.

 

“Tax Return”
means any return, declaration, report, claim for refund, election, disclosure, estimate, or information return or statement relating to
Taxes, including any schedule or attachment thereto, and including any amendment thereof required to be filed with any Taxing Authority
with respect to Taxes.

 

“Taxing Authority”
means any domestic or foreign national, state, provincial, multi-state or municipal or other local executive, legislative or judicial
government, court, tribunal, official, board, subdivision, agency, commission or authority thereof, or any other governmental body exercising
any regulatory or taxing authority thereunder having jurisdiction over the assessment, determination, collection or other imposition of
any Tax.

 

“Third-Party Claim”
is defined in Section 10.4.1.

 

“Trade Secrets”
is defined in the definition of “Intellectual Property.”

 

“Transaction Bonuses”
means all transaction bonuses, change-of-control payments, phantom equity payouts, payments under any stock appreciation rights plan,
“stay-put” or other compensatory payments (without duplication, plus any associated withholding taxes or any Taxes required
to be paid by the Company with respect thereto) incurred or accrued by the Company prior to or at the Closing with respect to the transactions
contemplated herein, but excluding, for all purposes, any severance payments triggered by actions taken by Buyer or by the Company at
Buyer’s direction.

 

“Transferred Employee”
is defined in Section 8.6.1.

 

“Working Capital”
means (a) the sum of the Company’s accounts receivable, inventory, prepaid and other current assets, excluding any income Tax assets,
which shall become the property of the Sellers (current, deferred or otherwise), minus (b) the sum of the Company’s accounts
payable and accrued expense, created in the ordinary course of business and other current liabilities, excluding (i) Indebtedness, (ii)
any current, deferred or other income or franchise Tax liabilities, which shall become the obligation of Sellers, (iii) Transaction Bonuses,
and (iv) Selling Expenses; in all cases, calculated in accordance with Section 2.4.1 hereof (including, the policies, practices
and procedures described in Section 2.4.1 of the Disclosure Schedule). A sample calculation of Working Capital, including each
specific general ledger account, is set forth on Exhibit 2.4.1 hereto. For the avoidance of doubt, Working Capital will be determined
without giving effect to the transactions contemplated hereby.

 

“Working Capital
Target” means Three Hundred Fifty Thousand Dollars ($350,000).

 

    44

     

    

 

ARTICLE
12

Construction; Miscellaneous Provisions

 

12.1 Notices. Any
notices, reports, demands, claims and other communications hereunder to be given or delivered pursuant to this Agreement shall be
ineffective unless given or delivered in writing, and shall be given or delivered in writing as follows:

 

(a) If
to Buyer, to:

 

DecisionPoint Systems, Inc.

8697 Research Drive

Irvine, California 92618

Attention: Steven Smith, CEO

Email: ssmith@decisionpt.com

 

With a copy to:

 

Potters & Della Pietra LLP

100 Passaic Avenue

Fairfield, New Jersey 07004

Attention: Christopher V. Della Pietra

Email: cdellapietra@pdplawfirm.com

 

 

		(b)	If to Sellers:

 

Irwin B. Polin

Advanced Mobile Group, LLC

301 S. Main St., Unit N1

Doylestown, PA 18901

Email: karl.herring@advancedmobilegroup.com

 

And to:

 

Karl M. Herring

Advanced Mobile Group, LLC

301 S. Main St., Unit N1

Doylestown, PA 18901

Email: wynn.polin@advancedmobilegroup.com

 

With a copy to:

 

Harper Business Law, P.C.

87 N. Broad Street

Doylestown, Pennsylvania 18901

Attention: Krista Harper

E-Mail: Krista@HarperBusinessLaw.com

 

    45

     

    

 

or in any case, to such other address for a party
as to which notice shall have been given to Buyer and Seller in accordance with this Section 12.1. Notices so addressed shall be
deemed to have been duly given on the next Business Day following the documented acceptance thereof for next-day delivery by a national
overnight air courier service, or (iii) on the date sent by electronic mail transmission, if electronically confirmed. Otherwise, notices
shall be deemed to have been given when actually received at such address.

 

12.2 Entire
Agreement. This Agreement, the Disclosure Schedule and Exhibits hereto constitute the exclusive statement of the agreement among
the Buyer and each Seller concerning the subject matter hereof, and supersede all other prior agreements, oral or written, among or
between any of the parties hereto concerning such subject matter. All prior and contemporaneous negotiations among or between any of
the parties hereto are superseded by this Agreement, and there are no representations, warranties, promises, understandings or
agreements, oral or written, in relation to the subject matter hereof among or between any of the parties hereto other than those
expressly set forth or expressly incorporated herein.

 

12.3 Modification.
No amendment, modification or waiver of this Agreement or any provision hereof, including the provisions of this sentence, shall be
effective or enforceable as against a party hereto unless made in a written instrument that specifically references this Agreement
and that is signed by the party waiving compliance.

 

12.4 Jurisdiction and
Venue; Waiver of Jury Trial. Each party hereto agrees that any claim relating to this Agreement shall be brought in the state
courts of competent jurisdiction located in Orange County, California and the federal courts located in the Central District of
California, Southern Division, and all objections to personal jurisdiction and venue in any action, suit or proceeding so commenced
are hereby expressly waived by all parties hereto. The parties waive personal service of any and all process on each of them and
consent that all such service of process shall be made in the manner, to the party and at the address set forth in Section
12.1 of this Agreement, and service so made shall be complete as stated in such section. Notwithstanding the foregoing, any
disputes between the parties that are submitted to the Independent Accountants for resolution pursuant to the terms of Section
2.4.3 shall be resolved as set forth in accordance with the terms of such section. Each
party hereto hereby acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve
complicated and difficult issues, and therefore each party hereby irrevocably and unconditionally waives any right such party may
have to a trial by jury in respect of any litigation directly or indirectly arising out of or relating to this Agreement or the
transactions contemplated by this Agreement. Each party certifies and acknowledges that (a) no representative, agent or attorney of
any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to
enforce the foregoing waiver, (b) such party understands and has considered the implications of this waiver, (c) such party makes
this waiver voluntarily and (d) such party has been induced to enter into this Agreement by, among other things, the mutual
waivers and certifications in this Section 12.4.

 

    46

     

    

 

12.5 Enforcement.
The parties hereto agree that irreparable damage would occur, and that the parties would not have any adequate remedy at law, in the
event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this
Agreement and to specifically enforce the terms and provisions of this Agreement, without proof of actual damages or otherwise, in
addition to any other remedy to which any party is entitled at law or in equity. Each party agrees to waive any requirement for the
securing or posting of any bond in connection with such remedy. The parties further agree not to assert that a remedy of specific
enforcement is unenforceable, invalid, contrary to law or inequitable for any reason, nor to assert that a remedy of monetary
damages would provide an adequate remedy.

 

12.6 Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of Buyer, the Company and each Seller and their
respective successors and permitted assigns.

 

12.7 Headings.
The article and section headings used in this Agreement are intended solely for convenience of reference, do not themselves form a
part of this Agreement, and may not be given effect in the interpretation or construction of this Agreement.

 

12.8 Number and
Gender; Inclusion. Whenever the context requires in this Agreement, the masculine gender includes the feminine or neuter, the
neuter gender includes the masculine or feminine, the singular number includes the plural, and the plural number includes the
singular. In every place where it is used in this Agreement, the word “including” is intended and shall be construed to
mean “including, without limitation.”

 

12.9 Counterparts.
This Agreement and each document delivered pursuant to this Agreement may be executed by the parties in separate counterparts and by
facsimile or by electronic mail with scan or attachment signature, each of which when so executed and delivered shall be deemed an
original, and all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number
of copies hereof or thereof each signed by less than all, but together signed by all of the parties. A facsimile, electronic or
other copy of a signature shall be deemed an original for purposes of this Agreement.

 

12.10 Third
Parties. Except as may otherwise be expressly stated herein, no provision of this Agreement is intended or shall be construed to
confer on any Person, other than the parties hereto and their respective successors and permitted assigns, any rights hereunder.

 

12.11 Disclosure
Schedule and Exhibits. The Disclosure Schedule and Exhibits, if any, referenced in this Agreement constitute an integral part of
this Agreement as if fully rewritten herein. Any information disclosed in one section of the Disclosure Schedule shall be deemed to
be disclosed in other sections of the Disclosure Schedule and applicable to such other representations and warranties to the extent
that the disclosure is reasonably apparent on its face from a reading of such disclosure (without reference or review of any
documents or further information described on the face of the specific section or subsection of the Disclosure Schedule) item to be
applicable to such other section or subsection of the Disclosure Schedule and such other representations and warranties. Any
disclosures in the Disclosure Schedule that refer to a document are qualified in their entirety by reference to the text of such
document, including all amendments, exhibits, schedules and other attachments thereto, provided that such document has been made
available to Buyer. The Disclosure Schedule may include items and information that are not “material” relative to the
entire business of the Company, taken as a whole, and such inclusion shall not be deemed to be an acknowledgment or agreement that
any such item or information (or any non-disclosed item or information of comparable or greater significance) is
“material” or to further define the meaning of such term for purposes of this Agreement or otherwise. All references in
this document to “this Agreement” and the terms “herein,” “hereof,” “hereunder” and
the like shall be deemed to include all of such sections of the Disclosure Schedule and Exhibits.

 

    47

     

    

 

12.12 Time
Periods. Any action required hereunder to be taken within a certain number of days shall, except as may otherwise be expressly
provided herein, be taken within that number of calendar days; provided, that if the last day for taking such action falls on a
Saturday, a Sunday, or a legal holiday, the period during which such action may be taken shall automatically be extended to the next
Business Day.

 

12.13 Construction.
This Agreement and the other documents contemplated herein shall be deemed to have been drafted by the parties, and neither this
Agreement nor any other document contemplated herein shall be construed against any party as the principal draftsperson hereof or
thereof.

 

12.14 Governing
Law. This Agreement and the performance of the transaction and obligations of the parties hereunder shall be governed by and
construed in accordance with the Laws of the State of California, without regard to the choice-of-laws or conflict-of-laws
provisions thereof.

 

12.15 Non-Recourse.
This Agreement may only be enforced against, and any claim or cause of action based upon, arising out of, or related to this
Agreement or the transactions contemplated hereby may only be brought against, the Persons that are expressly named as parties
hereto and then only with respect to the specific obligations set forth herein with respect to such party. Except to the extent a
named party to this Agreement (and then only to the extent of the specific obligations undertaken by such named party in this
Agreement and not otherwise), no past, present or future director, officer, employee, incorporator, member, partner, stockholder,
Affiliate or agent, attorney, advisor or representative of any such Person or any of its Affiliates shall have any liability
(whether in contract, tort, equity or otherwise) for any one or more of the representations, warranties, covenants, agreements or
other obligations or liabilities of any one or more of the Sellers or Buyer under this Agreement (whether for indemnification or
otherwise) of or for any claim based on, arising out of, or related to this Agreement or the transactions contemplated hereby.

 

    48

     

    

 

12.16 Section
338(h)(10) Election.

 

(a) If timely requested
in writing by the Buyer and conditioned on the advanced payment by Buyer to Sellers of the Gross Up Amount, Sellers shall cooperate
with Buyer in making and filing an election on Internal Revenue Service Form 8023 under Section 338(h)(10) of the Code with respect
to the sale and purchase of Shares pursuant to this Agreement and any similar state law provisions in all states in which such
elections are legally permitted to be made in connection with the sale and purchase of the Membership Interests pursuant to this
Agreement, and each party shall provide the others with all necessary information reasonably requested in writing by the other party
to permit such elections to be made (referred to as the “338 Election”). If timely requested in writing by the Buyer,
Sellers shall, at Buyer’s expense, as promptly as practicable following the Closing Date, cooperate with Buyer as reasonably
requested in writing by Buyer so that Buyer can take all actions necessary and appropriate (including filing such forms, returns,
schedules and other documents as may be required) to effect and preserve a timely Code Section 338(h)(10) election with respect to
the transactions contemplated by this Agreement; provided, however, that (i) Buyer shall be the party responsible for preparing
Internal Revenue Service Form 8023 and any other forms, returns, schedules and other documents necessary for making an effective and
timely Code Section 338(h)(10) election with respect to the transactions contemplated by this Agreement and (ii) any such forms,
returns, schedules and other documents shall be prepared and filed at Buyer’s expense and shall be subject to Sellers’
review and approval (not to be unreasonably withheld, conditioned or delayed). Without limiting the foregoing: within forty five
(45) days after the final determination of the Closing Working Capital pursuant to Section 2.4.4, Buyer shall deliver to the
Seller an allocation of the “aggregate deemed sales price” (as such term is defined in Treasury Regulations Section
1.338-4) among the assets of Company in accordance with Treasury Regulations Sections 1.338-6 and 1.338-7 (the “Allocation
Statement”), including any work papers, schedules and other information used in connection with preparing the Allocation
Statement. The parties agree that no portion of the aggregate deemed sales price will be allocated to any non-solicitation,
non-compete or other restrictive covenants provided in this Agreement, and that the allocation to depreciable assets will be based
on each such asset’s adjusted basis for U.S. federal income Tax purposes immediately prior to the Closing Date. The allocation
of the aggregate deemed sales price shall be in accordance with the fair market value of the acquired assets as provided in Section
1060 of the Code. The Sellers shall have the right to review the Allocation Statement. Within forty-five (45) days after the
Sellers’ receipt of the Allocation Statement, the Sellers shall indicate its concurrence therewith, or propose to Buyer any
changes to the Allocation Statement. The Sellers’ failure to notify Buyer of any objection to the Allocation Statement within
forty-five (45) days after receipt thereof shall constitute the Sellers’ concurrence therewith. Should the Sellers propose any
change to the Allocation Statement, Buyer and the Sellers shall cooperate to resolve any disagreement regarding the Allocation
Statement. If Buyer and the Sellers are unable to reach an agreement, any dispute arising under this Section 12.16 shall be referred
to the Independent Accountants for resolution in a manner similar to Section 2.4.3. The Final Allocation Statement shall be binding
on the parties, and all Tax Returns filed by Buyer, Company and the Seller shall be prepared consistently with the Final Allocation
Statement, and none of them shall take a position on any Tax Return or other form or statement contrary to such allocation, unless
otherwise required by applicable Law. Any adjustments to the Purchase Price pursuant to this Agreement shall be allocated by the
Buyer in a manner consistent with the Allocation Statement, and shall be subject to the procedures and dispute resolution mechanisms
set forth in this Section 12.16. The Allocation Statement as finally determined under this Section 12.16 is referred to as the
“Final Allocation Statement.”

 

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(b) To the extent any
election under Code Section 338(h)(10) (or similar provision of state or local Law) is made in connection with the transactions
contemplated by this Agreement, this Section 12.16(b) shall apply. Buyer shall be responsible for all Taxes imposed on Company or
Sellers as a result of the making of the elections contemplated by Section 12.16(a). Within thirty (30) days following the
determination of the Final Allocation Schedule pursuant to 12.16(a), Buyer shall prepare and deliver to the Sellers a calculation of
the Gross-Up Amount. For purposes of this Agreement, the “Gross-Up Amount” is an amount equal to the sum of (a)
the excess of (i) the aggregate U.S. federal, state and local Taxes payable by the Seller and Company as a result of receipt from
Buyer of the Purchase Price (and any other amounts properly treated as consideration in respect of the purchase and sale of the
Membership Interests pursuant to this Agreement) over (ii) the hypothetical aggregate amount of U.S. federal, state and local Taxes
that would have been payable by Sellers if no election under Code Section 338(h)(10) (or similar provision of state or local Law)
were made in connection with the transactions contemplated by this Agreement, and assuming all other facts and circumstances
applicable to the determination of the amount of Taxes incurred on such proceeds remain unchanged) and (b) any incremental U.S.
state and federal income Taxes imposed on the Sellers or Company attributable to any payments made by Buyer pursuant to this Section
12.16(b). The Sellers will provide to Buyer any comments to Buyer’s calculation of the Gross-Up Amount in writing within
forty-five (45) days of receipt thereof, setting forth in reasonable detail the basis for any disputed items. If the Sellers do not
provide written notice to Buyer of the basis of its disagreement with Buyer’s calculation of the Gross-Up Amount within such
forty-five (45) day period, the Gross-Up Amount as calculated by Buyer shall be final and binding upon the parties. If Sellers do
provide such written notice within such forty-five (45) day period, and the parties are unable to agree on any item with respect to
the calculation of the Gross-Up Amount set forth in such written notice, the parties shall refer the disputed item to the
Independent Accountants for resolution in accordance with the provisions set forth in Section 2.4.3. The Independent
Accountant’s resolution of any issue with respect to the Gross-Up Amount shall be final and binding on the parties. To the
extent any true-up payments or Tax Refunds become due and payable to Sellers pursuant to the terms of this Agreement, the Gross-Up
Amount shall be recalculated by Buyer in accordance with the terms of this Section 12.16(b) (including the notice and dispute
resolutions mechanisms herein). Payment in respect of the Gross-Up Amount shall be made by Buyer to Sellers in cash within five (5)
days following the determination of the Gross-Up Amount, and in advance of Sellers signing any paperwork required to make the 338(h)
Election. The Sellers and Buyer acknowledge and agree that notwithstanding anything in this Section 12.16 to the contrary, no
cooperation of Sellers that is necessary for the calculation and determination of any Gross-Up Amount shall be conditioned upon any
advance payment by Buyer.

 

[signature pages follow]

 

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IN WITNESS WHEREOF, Buyer
and Sellers have executed and delivered this Membership Interest Purchase Agreement, or have caused this Membership Interest Purchase
Agreement to be executed and delivered by their duly authorized representatives, as of the date first written above.

 

	 	BUYER:
	 	 
	 	DECISIONPOINT SYSTEMS, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Steven Smith
	 	 	Name: 	Steven Smith
	 	 	Title:	CEO           

 

Signature Page to
Membership Interest Purchase Agreement

 

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	 	SELLERS  
	 	 
	 	/s/ Irwin B. Polin
	 	Irwin B. Polin
	 	 
	 	/s/ Karl M. Herring
	 	Karl M. Herring

 

Signature Page to
Membership Interest Purchase Agreement

 

 

52

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