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DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                                                                                                                          ASSET PURCHASE AND SALE AGREEMENT                              THIS  ASSET  PURCHASE AND  SALE AGREEMENT  (this  “Agreement”)  is  dated  effective            September 1, 2020 at 12:01 am Central Time (the “Effective Date”) by and between STEWART TITLE            COMPANY, a Texas corporation licensed to do business in Colorado, Nevada and in Arizona, as Stewart            Title  Agency (“Buyer”), and UNIFIED  TITLE  COMPANY,  LLC (“Unified”), UNIFIED  TITLE            COMPANY OF NORTHERN COLORADO, LLC (“Unified NC”), LEGACY TITLE GROUP, LLC            (“Legacy”), EMPIRE  WEST  TITLE  AGENCY,  LLC (“Empire  West”), WESTERN  TITLE            COMPANY, LLC (“Western”), COLORADO ESCROW AND TITLE SERVICES, LLC (“Colorado            Escrow”), EMPIRE  TITLE  OF  COLORADO   SPRINGS,  LLC  (“Empire  CS”), WESTERN            EXCHANGE SERVICES, LLC (“Western Exchange”), EL PASO TITLE PLANT, LLC (“El Paso”),            and ET PRODUCTION SERVICES, LLC (“ET Productions” and collectively with Unified, Unified NC,            Legacy, Empire West, Western, Colorado Escrow, Empire CS, El Paso, and Western Exchange, each a            “Selling Company” and collectively, the “Selling Companies”), ET INVESTMENTS, LLC, a Wyoming            limited  liability  company  (“ET  WY”)  and ET  INVESTMENTS,  LLC,  a  Colorado  limited  liability            company (“ET CO”), and JOHN P. DWYER JR. (“Dwyer”) and BRYAN R. WILLIS (“Willis”) with            respect to Section 5.8(b) only. Buyer, Selling Companies, ET WY, ET CO, Dwyer and Willis may each be            referred to herein as a “Party” or collectively as “Parties.”                                               RECITALS                                                                     A.    ET WY is the majority member of Western and Western is the sole member of Western            Exchange.                   B.    ET CO is the manager of El Paso, Western and Western Exchange and the manager and            majority member of each of Unified, Unified NC, Legacy, Empire West, Colorado Escrow, Empire CS,            and ET Productions.                   C.    Exhibit “A” to this Agreement which is attached and fully incorporated herein sets forth            the name of each of the Selling Companies selling assets to the Buyer and the respective owners of each            such Selling Company.                         D.    The Selling Companies operate title agencies with operations in the States of Colorado,            Nevada and Arizona (each, a “Business” and collectively the “Businesses”) and desire to sell to the Buyer,            and the Buyer desires to buy from the Selling Companies, the operational assets (or parts thereof as more            particularly described below) of the Businesses on the terms and subject to the conditions herein contained.                    E.    The capitalized terms defined in Exhibit “B” hereto, attached and fully incorporated herein,            shall have the meanings set forth therein, while certain other terms are defined throughout this Agreement.                   NOW, THEREFORE, in consideration of the foregoing, and the mutual obligations and covenants            set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby            acknowledged, the Parties agree as follows:                                               ARTICLE I                                         PURCHASE AND SALE                   1.1   Purchase and Sale.  Selling Companies hereby agree to sell, convey, transfer, assign, grant            and deliver to Buyer, and Buyer hereby agrees to purchase, acquire and accept from Selling Companies,            free and clear of all Liens, other than Permitted Liens, all of the Purchased Assets of the Businesses relating            to the branch offices as specifically set forth on Exhibit “C” hereto which is fully incorporated herein, (the                                                                                       52182077.3 

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             “Branch Offices”).  The following shall constitute the “Purchased Assets” unless listed as an “Excluded            Asset” as set forth in Section 1.2:                         (a)   Work in Progress.  The Purchased Assets shall include all work in progress with            respect to transactions opened and in progress in a Branch Office as of the  Closing Date, which represents            all orders or requests received by a Selling Company relating to real property transactions or information            in which such Selling Company has yet to complete the final work product and/or provide the intended            final service  (“Work in Progress”). The anticipated Work in Progress as of the Effective Date is set forth            in Exhibit “D” hereto, which shall be updated one day after the Closing Date.  Buyer agrees to complete            and finish all work in progress at no cost to the respective Selling Company.  Buyer will be entitled to retain            all premium and fees collected for Work in Progress; provided, however, Buyer shall not be entitled to any            premiums  or  fees  collected  for  transactions  that  have  closed  prior  to  the  Closing Date  but  for  which            additional post closing actions are required but will be entitled to reimbursement from the Business for any            third  party  costs  it  incurs.  In  addition  to  the  Work  in  Progress,  Buyer  shall  also  be  entitled  to all            underwriting and escrow files, client prospect and existing client account records related to such Work in            Progress, and all information related thereto in a respective Selling Company’s possession as to each of            these items, whether in electronic form or otherwise, and all other related information, unless prohibited by            requirements in underwriting agreements with third parties;                         (b)   Tangible Personal Property.  All of the Selling Companies’  right, title and interest            in  and  to certain equipment and furniture, telephones,  cell  phones, networking  equipment, computer            hardware and software, fixtures, leasehold improvements, intellectual property, supplies, and other tangible            personal property owned or employed in the operation of the Business by the Branch Offices described            generally or explicitly in Exhibit “E” hereto which is fully incorporated by reference, and all rights to the            warranties received from the manufacturers and distributors of all such personal property and any related            claims, credits, rights of recovery and setoffs with respect to such personal property;                         (c)   Equipment  and  Other  Personal  Property  Leases.  The Selling Companies’            leasehold  interest  in  each  Lease  of  equipment  or  other  tangible  personal  property  employed  in  the            Businesses as set forth on Exhibit “F” hereto which is fully incorporated by reference;                         (d)   Third-Party Software.  The Selling Companies shall assign or transfer to the Buyer            any licenses or third-party software, provided, however, to the extent a license or third-party software is not            assignable or transferrable for any reason, the applicable Selling Company shall ensure that Buyer has            continued access to the software until such a time as Buyer has either obtained independent contracts with            a respective third-party software vendor or licensor or secured acceptable alternative software and licenses.             The current third-party software used in the operation of the Businesses is set forth on Exhibit “G” hereto            which is fully incorporated by reference (collectively, the “Third Party Software”);                         (e)   Permits and Governmental Authorizations.  To the extent transferable, all permits            and  authorizations  of the Selling Companies from  Governmental  Authorities  necessary  to  operate  the            Branch Offices and Businesses as of the Closing Date, if any;                         (f)   Contract  Rights  and Other  Intangible  Assets.   All  rights  arising  under  or  in            connection with the Contracts set forth on Exhibit “H” hereto, which is fully incorporated by reference,            including  any  employment agreements or  non-compete  or  non-solicit agreements (collectively,  the            “Assumed Contracts”) to the extent assignable or transferrable, used by the Businesses relating solely to            the Branch Offices and the Businesses;              2 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (g)   Listings.  All telephone numbers, telephone listings, websites, domain names to            and addresses owned or used by the Businesses for the Branch Offices, along with any administrative rights            to same;                        (h)   Books and Records.  All books and records (including, without limitation, all discs,            tapes, and other media-storage data and information, including both physically and electronically stored            information) relating to the Purchased Assets, including all client or customer records and files related            thereto, but not including the transaction files and records of the Selling Companies relating to transactions            closed prior to the Closing Date (defined below) (collectively, the “Closed Files”) except to the extent they            can be reasonably shared and not otherwise prohibited by third-parties.  Purchased Assets do not include            records stored off-site and being held only for record retention purposes;                        (i)   Other Records and Documents.  The Selling Companies’ right, title, and interest            in and to all of the following to the extent that they relate to the Branch Offices and the Businesses and            whether  in  hard  copy  or  digital  form:   mailing  lists,  customer lists,  vendor  lists  and  data, equipment            maintenance records, warranty information, and all other information relating to the Purchased Assets;                         (j)   Title Escrow Accounts.  Subject to obtaining any necessary customer consents, the            Selling Companies’ interest in the escrow funds in the escrow accounts of the Selling Companies related to            the Work in Progress as well as any subsequent files opened after Closing under that certain Transition            Services Agreement that the  Parties  will execute  in  conjunction  herewith (collectively,  the  “Escrow            Accounts”).  The Escrow Accounts are listed in Exhibit “I” hereto which is fully incorporated by reference;                          (k)   Goodwill and Name.  After the Closing Date, the Selling Companies shall cause            the names of the Selling Companies to be changed, each on a date mutually agreed by the Parties, to a name            deemed sufficiently different and  distinguishable  by  the  respective  State  regulatory  bodies from the            company names used at the time of Closing.  The Selling Companies shall not use the Selling Companies’            legal names except as necessary to complete Work in Progress and work under the Transition Services            Agreement or in any dissolution and wind down or other legal process.  The Selling Companies’ names            shall be transferred to Buyer so that Buyer may choose to use or abandon each name in its sole discretion.             Buyer also shall have the right to use the Selling Companies’ names as an assumed name to conduct the            Business after Closing if it so chooses, provided it is used or adopted in compliance with any applicable            laws, rules or regulations.                           (l)   Real Property Leases.  The leasehold interest in the Leases for the Branch Offices            and storage units as set forth in Exhibit “J” hereto which is fully incorporated by reference (the “Assigned            Leases”);                          (m)   Deposits Expenses.  The use of all real property deposits of the Business as they            relate to the Branch Offices to the extent they relate to any Assigned Leases (collectively, the “Deposit            Expenses”) as set forth in Exhibit “K” hereto which is fully incorporated by reference; provided, however,            the Parties agree that upon the earlier to occur of the termination of an Assigned Lease or the end of a            current lease term, the Buyer shall refund the respective security deposit to the applicable Selling Company;                         (n)   Starter Files.  The Parties agree that while the Buyer is not requesting the transfer            of prior title evidence (“Starter Files”) in the possession of the Selling Companies, Starter Files are not a            specifically Excluded Asset under Section 1.2.  Each Selling Company agrees that upon reasonable notice            and request of the Buyer, such Selling Company shall provide a copy of or access to any Starter File(s) to            the Buyer;                         (o)   Western  Exchange  Assets.  Physical assets located in  the Western  Exchange            Branch Office only (no Work in Progress with respect to the Western Exchange Branch Office is included            as a Purchased Asset); and                           3 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (p)   Title Plant.  The El Paso Title Plant (“El Paso Plant”) that posts and holds;            (i) recorded documents for El Paso County, Colorado consisting of a geographic index from Patent            to 1975 in fiche and paper format; (ii) from 1975 to 1987, a “Chip Plant” where the microfilm is            cut by document copy and indexed by subdivision and/or Section, Township and Range; (iii) the            abstract books with document copies starting with Book A through Book 1337; and (iv) digital            document copies starting in 2002 current through date of Closing.                                  1.2 Excluded Assets.  Notwithstanding anything to the contrary contained in Section 1.1, the            following  assets  and  rights  are  not  Purchased  Assets  and  will  be  retained  by Selling Companies            (collectively, the “Excluded Assets”):                        (a)   Rights Under the Transaction Documents and Consideration.  All rights of Selling            Companies under  the  Transaction  Documents  and  the  consideration  delivered  by  the  Buyer  to Selling            Companies pursuant to the Transaction Documents, including the Purchase Price;                         (b)   Formation  Documents.  The Selling Companies’ formation  instruments,            registration documents, minute books, operating agreement and other governance records, if any, and other            records having exclusively to do with formation, governance and capitalization                         (c)   Cash  and  Equivalents  and  Securities.   All  cash  and  cash  equivalents  and  all            investments  and  securities  of Selling  Companies,  including  but  not  limited  to  funds  held  in  general            accounts, other than the funds held in the Escrow Accounts, and all rights in all accounts with any bank,            savings and loan or other financial institution;                          (d)   Benefit  Plans.   All  Applicable  Plans,  and  their  assets,  including  rights  in            connection therewith and the related policies for insurance;                         (e)   Insurance  Policies.   All  insurance  policies  owned  or  obtained  by Selling            Companies on behalf of the Business and any claims, prepayments and refunds with respect thereto prior            to Closing;                         (f)   Tax Records and Refunds.  All Tax Returns and Tax records of Selling Companies            and all Tax deposits, Tax refunds (and claims therefor) and prepaid Taxes;                         (g)   Certain Agreements.  Title Underwriting Agreements with any underwriter except            Stewart Title Guaranty Company;                          (h)   Physical Assets. Those  physical  assets  owned  by the Selling  Companies not            specifically set forth in Section 1.1 or the accompanying exhibits related to Section 1.1 of this Agreement            and not necessary for the operation of the Business;                         (i)   Equity Interests.  All capital stock or other equity that the Selling Companies may            have in any other entity except for Short Sale Solutions, LLC, the short sale company owned in part by ET            CO and Bill and Rhonda McAfee as addressed in Section 5.14 of this Agreement; and                        (j)   Other Division Assets.  The operating assets of the following divisions of the            indicated Selling Companies:                              (i)   Thomas Title Division of Empire West,                              (ii)  Las Vegas Division of Western,              4 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                               (iii) Colorado Title Group Division (Denver operations) of ET Productions,            and                               (iv)  The  Title  Company  of  the  Rockies, Northwest  Title, Alpine  Title, and            Abstract & Title  of Mesa County  Divisions  of  Colorado  Escrow; and, provided,  however,  pursuant to            Section 1.1(k), the Excluded Assets shall not include the company names of Empire West, Western Title,            ET Productions or Colorado Escrow.                                          1.3   Assumption of Liabilities.                          (a)   At  the  Closing,  Buyer  shall  assume  and  become  responsible  for,  and  shall            thereafter  pay,  perform,  and  discharge  as  and  when  due,  only  the  following  Liabilities  related  to  the            Business arising on or after the Closing Date (collectively, the “Assumed Liabilities”):                               (i)   trade  and  carrier  payables of  the  Selling  Companies related  to  the            Businesses as of the  Closing Date set forth on Schedule 1.3(a)(i) (collectively, the “Payables”);                               (ii)  those certain  accrued  expenses  (other  than  expenses  that  are  Retained            Liabilities) related to the Businesses set forth in the accounts listed on Schedule 1.3(a)(ii); and                               (iii) all Liabilities arising on or after the Closing Date under (A) the Assumed            Contracts, (B) the permits and authorizations from Governmental Authorities relating to the Business as of            the  Closing,  other  than  Retained  Liabilities  under Sections 1.3(b)(ii), 1.3(b)(iv) or 1.3(b)(v), (C)  the            Assumed  Leases,  (D)  the  equipment leases  and  (E)  any  other  liabilities  associated  with  the  Purchased            Assets;                               (iv)  any Liability arising prior to the  Closing Date relating to the Work in            Progress and Escrow Accounts, other than Retained Liabilities under Section 1.3(b)(iv); and                         (b)   Notwithstanding anything to the contrary contained in Section 1.3(a), the Buyer            shall not assume, and shall have no liability under or by reason of this Agreement for any obligations,            duties, or liabilities relating to Selling Companies or the operation of the Businesses arising prior to the             Closing Date and  relating  to  the  operation  of the  Businesses  prior  to  the  Closing  Date, other  than  the            Assumed  Liabilities,  including,  without  limitation,  any  of  the  following  (collectively,  the  “Retained            Liabilities”):                               (i)   all payables of Selling Companies originating prior to the Closing Date,            except to the extent that a portion of a payable is applicable to operations on or after the Closing Date in            which case the Parties will pay their respective pro rata share;                               (ii)  all expenses of, or portion any portion thereof attributable to, the Selling            Companies and their operations prior to the Closing Date, whether or not accrued, unless specifically set            forth in this Agreement as expenses, including prorated expenses, Buyer will be paying;                               (iii) any Liability under any Assumed Contract that arises out of or relates to            any breach or violation that occurred prior to the Closing Date, including, without limitation, any error and            omission  of Selling  Companies or  any  employee,  agent  or  representative  of Selling  Companies, but            excluding Liabilities unknown to Selling Companies relating to the Work In Progress;              5 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                               (iv)  any Liability under any Contract that is not an Assumed Contract except            for those contracts entered into locally by the Branch Offices that due to closing time constraints was not            provided to Buyer in advance of Closing;                               (v)   any  Liability  arising  prior  to  the  Closing  Date  relating  to  the  Work  in            Progress, which to Seller’s Knowledge existed either on the date of this Agreement or on the date of Closing            that was not disclosed to Buyer prior to Closing;                               (vi)  any Liability relating to the Closed Files or any transactions or Work in            Progress not assumed by Buyer;                               (vii) any Liability that arises out of or relates to obligations for the repayment            of Indebtedness by Selling Companies or any of their Affiliates, officers, employees or directors, other than            Indebtedness assumed under an Assumed Contract or lease or otherwise assumed in this Agreement;                               (viii) any Liability related to the Applicable Plans;                               (ix)  any Liability for COBRA continuation for any employee of the Selling            Companies with a qualifying event prior to the Closing Date;                               (x)   any Liability for workers’ compensation claims or deferred compensation            obligations;                               (xi)  any Liability arising from or relating to any claim or proceeding against            the Selling Companies or any employee or manager of the Selling Companies that is pending or incurred            on or before the  Closing Date, including, without limitation, those proceedings set forth in Exhibit “L”,            attached hereto and incorporated by reference;                               (xii) any Liability of the Selling Companies or any of their Affiliates, officers,            employees or directors, for the payment of any Tax, including, without limitation, for (A) the Taxes of any            other Person, whether as transferee, successor, by contract, by Law or otherwise, (B) Taxes resulting from,            or arising in connection with, the transactions contemplated by this Agreement, and (C) Taxes with respect            to the Purchased Assets or the Business arising on or prior to the  Closing Date or with respect to any Tax            periods (or portions thereof) ending on or prior to the  Closing Date;                               (xiii) any Liability of Selling Companies as a transferor under applicable Law            relating to bulk transfers;                               (xiv) any Liability of any Person relating to an environmental condition relating            to the Business, the Purchased Assets, or the Real Property owned or leased by the Selling Companies, that            arises out of or relates to any action or condition that occurred or arose prior to the  Closing Date; or                               (xv)  any  Liability  of Selling Companies for  the  unauthorized  use  of  any            Proprietary Right or other property right.                   (c)   Except for Liability associated with Work in Progress  arising before the Closing Date of            which Selling Companies had no Knowledge, for the avoidance of doubt and notwithstanding anything to            the contrary contained in this Section 1.3, the Parties intend that any cost, liability, expense or portion            thereof arising from or related to the Business prior to the Closing Date shall be a Retained Liability of the            Selling  Companies  and  any  cost,  liability, expense,  or  portion  thereof,  arising  from  or  related  to  the            Businesses on or after the  Closing Date shall be an Assumed Liability of the Buyer.                6 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                                              ARTICLE II                               PURCHASE PRICE AND PAYMENT; CLOSING                   2.1   Purchase Price.  The aggregate purchase price for the Purchased Assets shall be a total            amount  equal  to ONE  HUNDRED  AND  FIVE MILLION DOLLARS AND  NO/100  US  DOLLARS            ($105,000,000.00) in cash (the “Purchase Price”) and the assumption of the Assumed Liabilities.                     2.2   Payment of Purchase Price.   At the Closing, the Buyer shall pay to the Selling Companies            the Purchase Price by wire transfer as specified in Section 2.3.                   2.3   Cash Payment Terms.  All cash payments made pursuant to this Agreement and the other            Transaction Documents shall be made in United States Dollars and all references herein to any amounts            shall be deemed to be denominated in United States Dollars.  All payments made in United States Dollars            pursuant  to  this  Agreement  and  the  other  Transaction  Documents  shall  be  made  by  wire  transfer  of            immediately available funds to the account or accounts specified in writing by Selling Companies at least            two (2) Business Days prior to the due date of any such payment.  Wiring instructions shall be verified by            the Buyer via telephone call to Meghan Martelon, General Counsel of ET CO, at her office number.                     2.4   Closing.  The transactions  contemplated  by  this  Agreement shall  be  consummated            (“Closing”) by transmission to the respective offices of the Parties or their designated legal counsel via e-           mail in portable document format (“.pdf”) with  confirmation of the requisite Transaction Documents duly            executed where required, with the payments required by Section 2.2 delivered via wire transfer, in each            case no later than September1, 2020 at 12:01 am, Central Time (the “Closing Date”).  Notwithstanding the            preceding sentence, the Parties may, by mutual agreement executed in writing, close the transaction at a            later time so long as the Closing Date shall be as of the 15th or the last day of the month.                     2.5   True-Up.                           (a)   The Parties shall execute monthly true-ups after the Closing Date and a final true-           up after the Transaction Services is completed for each of the Selling Companies in order to ensure proper            credit for pipeline revenue and to properly account for working capital and expenses, and to finalize any            other necessary accounting.  Pipeline revenue shall be remitted to Stewart no less than weekly in a manner            set forth in the Transition Services Agreement.  Working capital shall consist of the Selling Companies’            cash, security deposits (excluding those security deposits that will be returned to the Selling Companies            pursuant to Section 1.1(m), cash equivalents, accounts receivable, and vendor pre-paid items and other            similar assets minus Selling Companies’ accounts payable and accrued salaries and expenses as of the            Closing Date except to the extent such accounts payable, accrued salaries or expenses are for products or            services connected to post closing activities or a post-closing time period (“Working Capital”).  As an            example, in the case of a phone bill for the period from August 15, 2020 to September 15, 2020, the Seller            shall be responsible for the period between August 15, 2020 and August 31, 2020 and the Buyer shall be            responsible for the period between September 1, 2020 and September 15, 2020.  Notwithstanding any other            provisions to the contrary herein, Selling Companies shall retain all Working Capital as of the Closing Date,            all revenue for files closed prior to the Closing Date.  Buyer shall retain all revenue for files closed on or            after the Closing Date and shall be solely responsible for all debts and expenses incurred or arising relative            to such files on or after the Closing Date.                                                (b)   Selling  Companies shall  promptly  deliver  to  the  Buyer  any  bill  for  personal            property Taxes with respect to the Purchased Assets, and any bill for Real Property Taxes on or with respect            to the Real Property, part or all of which is attributable to periods subsequent to the Closing Date and            received by Selling Companies after the  Closing Date, and the Buyer shall timely pay the same to the            appropriate Governmental Authority in full.              7 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (c)   True-up accounting shall ensure that the proper prorations are made among the            Parties for rent, common area maintenance charges (CAM), and utilities related to the Leased Real Property            prior to and after the Closing.  For avoidance of doubt, when determining proper prorations hereunder any            expenses, or portion thereof, arising from the Businesses prior to the  Closing date shall be allocated to the            Seller and any expenses, or portion thereof, arising from the Businesses from the  Closing Date and after            shall be allocated to the Buyer.                           (d)   If the Parties are unable to resolve a dispute with respect to the Working Capital            or other true up calculations set forth in this Section 2.5, then either the Buyer or the Selling Companies            may  submit  such  dispute for  resolution to  an  independent  accounting  firm  with  experience  in  the title            industry mutually agreed upon by the Buyer and the Selling Companies (the “Independent Auditors”).  The            Parties shall jointly submit a listing of the nature of the dispute and the objections to the true up calculations            that remain outstanding after the Buyer and Selling Companies have worked in good faith to resolve such            disputes for a period of at least thirty (30) days (the “Differences”).  The Independent Auditors, acting as            experts and not as arbitrators, and reviewing only the disputes set forth in the Differences, shall determine            within thirty (30) days of the date on which such dispute is referred to the Independent Auditors, what            adjustments (if any) to the true ups required herein should be made.  Each of Buyer and Selling Companies            shall  be  afforded  the  opportunity  to  present  to  the  Independent  Auditors  any  material  related  to  the            determination  and  to  discuss  the  determination  with  the  Independent  Auditors.  Buyer  and  Selling            Companies shall share the fees and expenses of the Independent Auditors in direct proportion, by dollar            amounts, with the allocation of the Differences by the Independent Auditors in favor of the Buyer or the            Selling Companies, as the case may be.  The decision of the Independent Auditors shall be final and binding            on the Buyer and the Selling Companies.                  2.6   Allocation  of  Purchase  Price.  For  Tax  purposes,  Buyer and Selling  Companies will            allocate the Purchase Price (including the assumption by the Buyer of the Assumed Liabilities and all other            capitalized costs) in accordance with all applicable laws, rules and regulations and Buyer shall work with            Selling Companies in good faith to allocate based on supporting accounting evidence provided by Selling            Companies.  The Parties will work together in good faith to make the allocation determination within a            reasonable time after the Closing Date to prepare the IRS Form 8594, Asset Acquisition Statement Under            Section 1060, setting forth such allocation.  Subject to the immediately preceding sentence, the Parties will            make consistent use of the allocations specified in this Section 2.6 for all Tax purposes and in all filings,            declarations, and reports with the IRS or other taxing authorities in respect thereof, including the reports            required to be filed under Section 1060 of the Code.  In any proceeding related to the determination of any            Tax, none of the Parties will contend or represent that such allocations are incorrect allocations.                   2.7   Sales and Transfer Taxes.  All sales, use, stamp, registration, transfer or other similar            Taxes or recording fees and charges imposed by any Governmental Authority as a result of the sale of the            Purchased Assets or the consummation of the transactions contemplated by this Agreement shall be paid            by Selling Companies.                   2.8   Closing  Deliveries  by Selling  Companies.  At  the  Closing or, with  respect  to  any            assignment, within a reasonable time thereafter, Selling Companies shall deliver to the Buyer:                         (a)   a separate assignment  and  assumption  agreement  relating  to  the  Assumed            Contracts and the Assumed Liabilities, duly executed by the applicable Selling Company, if applicable, in            a form and substance reasonably satisfactory to the Buyer (the “Assignment and Assumption Agreement”);                         (b)   a separate bill of sale and assignment for each Selling Company relating to the            Purchased Assets other than the Assumed Contracts, duly executed by the applicable Selling Company, in            a form and substance reasonably satisfactory to the Buyer (the “Bill of Sale”);              8 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (c)   a general assignment and assumption of the Assigned Leases, duly executed by the            applicable Selling Company (an “Assignment and Assumption of Lease”) and the respective Landlord, in            each case in a form and substance reasonably satisfactory to the Buyer.  To the extent any Branch Office            Lease is not assigned, and if Landlord will not accept rent payment from Buyer, the applicable Selling            Company shall continue to pay for the Lease until an assignment is agreed to by the Buyer and Landlord or            the Landlord terminates the Lease, in which event, Buyer shall reimburse the Selling Company for all            charges related to said Lease, including any charges resulting from any actions of the Buyer during Buyer’s            occupation of the respective premises;                         (d)   possession and/or control of the Purchased Assets;                         (e)   an Employment Agreement, duly executed by each of the Key Employees;                         (f)   subject to Section 5.12, all Required Authorizations and all Required Filings, if            any;                         (g)   a certification that all Indebtedness of each of the Selling Companies (other than            Transaction Expenses and Liabilities under Assumed Contracts) has been paid and discharged in full and            any Liens related to such Indebtedness of the Selling Companies existing as of the Closing will be released            and terminated;                         (h)   lien releases and UCC-3 financing statements evidencing the termination of any            and all Liens on the Purchased Assets other than those Liens covered by Assumed Contracts;                          (i)   subject to Section 5.12, to the extent obtained prior to or on the Closing Date, duly            executed copies of all consents and approvals required by the terms of any of the Assumed Contracts,            including, without limitation, the Assigned Leases, in connection with the consummation of the transactions            contemplated herein;                          (j)   certification, resolution, or other document reflecting the agreement of each of the            Selling Companies to the sale of its assets pursuant to this Agreement to Buyer;                          (k)   the Transition Services Agreement, executed by the Selling Companies, providing            for Selling Companies’ post-Closing management of certain business operations for the benefit of the Buyer            and  the  orderly  transition  of  the  Purchased  Assets  and  business  operations to the  Buyer  (“Transition            Services Agreement”); and                         (l)   the Employee Leasing Agreement, executed by the Selling Companies and ET CO,            providing for the Leaseback of Employees as provided in Section 5.13.                      2.9   Closing  Deliveries  by  Buyer.  At  the  Closing,  the  Buyer  shall  deliver  to Selling            Companies:                         (a)   the payment required by Section 2.2;                         (b)   the Assignment and Assumption Agreements, duly executed by the Buyer;                         (c)   the Bills of Sale, duly executed by the Buyer;                          (d)   the Assignment and Assumption of Lease agreements, duly executed by Buyer;              9 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (e)   the Employment Agreements duly executed by Buyer;                           (f)   a certificate, duly executed by Buyer and dated as of the Closing Date, certifying            that the Board of Directors of Buyer adopted the resolutions attached to such certificate to authorize the            transactions  contemplated  by  this  Agreement  and  the  other  Transaction  Documents  and  Buyer’s            performance of its obligations hereunder and thereunder;                          (g)   all other previously undelivered documents required to be delivered by the Buyer            to Selling Companies at or prior to the Closing pursuant to the terms of this Agreement;                          (h)   the Transition Services Agreement executed by the Buyer; and                         (i)   the Employee Leasing Agreement executed by the Buyer.                    2.10  Further Assurances.  The Parties agree that they will, at any time and from time to time,            on or after the Closing Date, upon the request of any other Party hereto, execute, acknowledge and deliver,            or use all reasonable efforts to cause to be executed, acknowledged and delivered, all such documents and            instruments, as any other Party may reasonably deem necessary or desirable to consummate the transactions            contemplated by this Agreement.                                              ARTICLE III                     REPRESENTATIONS AND WARRANTIES OF SELLING COMPANIES                   The Selling Companies represent and warrant to the Buyer the following as of the Effective Date            and agree to update any Schedules to reflect changes as of the Closing Date:                   3.1   Organization.    All of the Selling Companies are limited liability companies organized            under the laws of the States of Colorado, Arizona or Nevada, respectively.   The Selling Companies have            full power and authority to own their respective assets and operate their respective Businesses.                   3.2   Enforceable Agreement.  The execution, delivery and performance of this Agreement and            each other Transaction Document by Selling Companies has been duly authorized by all necessary actions            and  proceedings,  and Selling  Companies have full  power  and  authority  to  execute  and  deliver  this            Agreement and the other Transaction Documents and to consummate the transactions contemplated hereby            and  thereby.   This  Agreement  and  the  other  Transaction  Documents  constitute  the  valid  and  binding            obligation of Selling Companies and their members and are enforceable against the Selling Companies in            accordance with the terms hereof and thereof.                   3.3   No  Violation.  Neither  the  execution  and  delivery  of  this  Agreement  or  the  other            Transaction Documents nor the consummation of the transactions contemplated hereby or thereby will,  (a)            violate any provision of the Organizational Documents of Selling Companies; (b) violate, conflict with, or            result in a breach or default under or termination or acceleration of (or otherwise give any other contracting            party the right to terminate or accelerate) any Contract or Permit of Selling Companies, or related to the            Business or assets with the exception of those Contracts or any leases requiring consent to assign ; (c) result            in the creation of any Lien upon the Purchased Assets; (d) to the Knowledge of Selling Companies, violate            any applicable Law or (e) violate any restrictive covenant against competing in the title insurance, escrow            and settlement business.  To Sellers’ Knowledge,  no violations, filings with, notices to or Authorizations            by, any Persons, including, without limitation, any Governmental Authorities, are necessary in connection            with  the  execution  of  this  Agreement  or  the  other  Transaction  Documents  by Selling  Companies,  in            connection  with  the  consummation  of  the  transactions  contemplated  by  this  Agreement  or  the  other              10 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             Transaction Documents, or to vest in the Buyer full right, title and interest in and to the Purchased Assets,            free and clear of all Liens, except Permitted Liens or those Liens to be released at Closing.                     3.4   Assumed Contracts.  True and correct copies (or a written summary of the material terms,            if oral) of  Assumed  Contracts (including any amendments,  extensions,  renewals, guaranties and other            agreements with respect thereto) as set forth on Exhibit H have been made available to Buyer with the            exception of local Branch Office contracts that Seller cannot timely obtain.  The Assumed Contracts are            valid and binding agreements of Selling Companies and are in full force and effect.  To the Knowledge of            Sellers, the other party or parties to the Assumed Contract, are not in default under or in breach of any such            Assumed  Contract;  and  (ii)  no  event has  occurred  which,  with notice or lapse  of  time  or  both,  would            constitute such a default or breach.                     3.5   Financial Information; Undisclosed Liabilities.                         (a)   Selling Companies have made available to the Buyer true, correct and complete            copies of the following financial statements and other financial information, which are attached hereto as            Schedule 3.5 (collectively, the “Financial Information”):  (i)  the Select Agencies Consolidated Income            Statement from January 2020 to June 2020 and (ii) the ET Investments’ Selling Companies’ Adjusted            EBITA Jan-June 2020, both of which are attached hereto as Schedule 3.5.  The Financial Information (i)            was materially prepared in accordance with recognized accounting principles, applied on a consistent basis;            (ii) is based on and consistent with the books and records of Selling Companies, (iii) fairly presents, in all            material respects, for the period in the Financial Information the financial position, and results of operation            of the Businesses and (iv) to Seller’s Knowledge, there are no notable financial, legal, structural or tax            considerations pertaining to the Business that have not been disclosed that would materially impact Buyer’s            valuation of the Businesses based on the Purchase Price.                           (b)    The  Selling  Companies maintain  internal  accounting  controls  over  financial            reporting  to  assist  in  reasonably  assuring  that  (i)  transactions  are executed  in  accordance  with            management’s  general  or  specific  authorization,  (ii)  transactions  are  recorded  as  necessary  to  permit            preparation of the financial statements of Selling Companies and to maintain accountability for its assets,            and  (iii)  receivables  are  recorded  accurately  and  procedures  are  implemented  to  effect  the  realization            thereon on a current and timely basis.  To the Knowledge of Sellers, Selling Companies’ management has            not been advised of:  (x) any significant deficiencies or material weaknesses in the design or operation of            the internal controls over financial reporting (as such term is defined in Section 13(1)(2)(B) and Rules 13d-           15(d) and 15d-15(d) of the Exchange Act) that could adversely affect Selling Companies ability to record,            process,  summarize  and  report  financial  data,  or  (y)  any  fraud,  whether  or  not  material,  that  involves            management or other employees who have a role in the internal controls over financial reporting of the            Selling Companies.                          (c)   There  have been  no  material  adverse  findings  in  any  audits  of  the  Financial            Information with respect to the Businesses.                   3.6   Ownership and  Permitted  Use  of  Assets.  The Selling  Companies have good  and            marketable title to all of the Purchased Assets free and clear of all Liens, except to the extent a Purchased            Asset is leased at Closing.  With respect to the leased Purchased Assets set forth in Exhibit F, Selling            Companies are in compliance with such leases, and hold a valid leasehold interest to such property and            assets, free of any Liens against the leasehold interest, and to the Sellers’ Knowledge said leases are valid            and binding agreements of Selling Companies and are in full force and effect.  To the Sellers’ Knowledge            all of the tangible Purchased Assets (a) are in good condition, ordinary wear and tear excepted, and (b) have            been maintained, repaired and replaced in the Ordinary Course of Business.                11 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   3.7   Absence  of  Changes  or  Events.  Except as contemplated  by  this  Agreement  and  the            transactions contemplated hereby, since August 1, 2020 (the “Applicable Date”), to the Sellers’ Knowledge            (a) the Selling Companies have conducted the Businesses in the Ordinary Course of Business in all material            respects,  (b) there  has  not  been  (i) any  change,  event,  circumstance,  development  or  effect within  the            control of the Selling Companies that individually or in the aggregate has had, or is reasonably likely to            have or result in, a Material Adverse Change (“MAC”) or (ii) any material change by the Selling Companies            in their accounting methods, or (c) without limiting the generality of the foregoing, except in the Ordinary            Course  of  Business, none  of  the Selling Companies have, in  connection  with  their operation  of the            Businesses or the Purchased Assets:                               (i)   adopted, amended or terminated any Plan, in each case, except as required            by applicable Law;                                (ii)  other than as disclosed to and agreed by Buyer, which agreement shall not            be unreasonably withheld, an increase of 10% or more in any manner the compensation or benefits of any            of Selling Companies’ employees or of an independent contractor who receives a monthly retainer, other            than pursuant to requirements of pre-existing Plans; or terminated the employment of any  President of any            of the Selling Companies;                               (iii) sold, assigned, transferred, pledged or encumbered or granted any Lien            (other than a Permitted Lien) on any of the Purchased Assets;                               (iv)  made any change to its accounting principles, policies or practices, except            as required by applicable Law, rule or regulation;                               (iv)  except where Selling Companies advised Buyer in writing, including via            electronic mail, waived any rights under, amended, extended, terminated, assigned or otherwise modified            any Assumed Contract set forth on Exhibit “H” or entered into or assumed any Contract that would be an            Assumed Contract if entered into prior to the date hereof, including any of the Leases set forth in Exhibit            “F” and Exhibit “J”;                               (v)   made any capital expenditures or commitments for capital expenditures            relating to the Purchased Assets or the Business over the sum of $50,000.00;                              (v)   advanced any premiums on behalf of its clients until the premiums have            been paid by the client, or paid in advance to its clients any payments related to claims on behalf of insurance            companies related to Work in Progress; or                               (vi)  agreed or committed to do any of the foregoing.                   3.8   Consumer Privacy Laws.     Other than data storage contracts, there are no Contracts            between the Selling Companies with respect to the Businesses or the Purchased Assets, on the one hand,            and any third party on the other hand, relating to Personal Information or the use or access of any database            system housing such Personal Information.                3.9      Legal Proceedings; Compliance with Laws.                          (a)    To  the  Knowledge of  the  Sellers, as  applicable  to  the  Businesses, no  Legal            Proceeding is pending against any of the Branch Office Employees alleging any failure to comply with any            applicable Law or rule regulating the Businesses.              12 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (b) In the operation of the Business, to the Knowledge of Sellers, the Selling Companies            (or any one of them) are not a party to any Contract that would be an Assumed Contract hereunder that            provides for any payment, allowance or other provision by or to one of the Selling Companies or the Branch            Office employees of any unlawful commissions, referral fee, direct or indirect compensation or fee for            services not encompassed by any approved premium or escrow rate, or unlawful payments based upon the            profitability, claims handling, sales volume or loss ratio of the Business that is the subject of such Contract.                    3.10  Employee Relations.  To Sellers’ Knowledge, there are no active, pending or threatened            administrative or judicial complaints, charges, investigations or proceedings under Title VII of the Civil            Rights  Act  of  1964,  the  Age  Discrimination  in  Employment  Act,  the  Fair  Labor  Standards  Act,  the            Occupational Safety and Health Act, the National Labor Relations Act, the Labor Management Relations            Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Polygraph            Protection Act, the Employee Retirement Income Security Act, any State Fair Employment practice law or            any Law relating to any of the employees of the Branch Offices.                  3.11     Employees, Independent Contractors and Consultants.                         (a)   Exhibit “M” sets forth, as of the Effective Date, a list of (i) the employees of the            Selling Companies for the Branch Offices that are eligible to become Transferred Employees involved in            the Businesses and (ii) any independent contractors and consultants to the Selling Companies involved in            the Businesses and their respective  position and title (if any), current rate  of compensation (separately            identifying  bonuses,  commissions,  incentive  compensation  and  equity-based  compensation  for  the  last            completed fiscal year, if any) and, in the case of an employee, whether such employee is hourly or salaried,            and any car allowances, club memberships or other comparable perquisites such employees, independent            contractors, or consultants received from Selling Companies.  The list set forth on Exhibit “M” is subject            to change daily, and provides the most up to date information available to the Selling Companies.  Prior to            employment, Selling Companies have obtained all criminal background checks required under applicable            Laws for all of the employees who have financial responsibility.  To the Knowledge of Sellers and except            in the Ordinary Course of Business, there is no information or notice of any kind, that any such employee,            independent contractor or consultant intends to disassociate from the Businesses that would result in a            MAC.                         (b)   Neither the execution of this Agreement or the other Transaction Documents nor            the consummation of the transactions contemplated hereby or thereby shall cause the Buyer to have any            Liability with respect to any severance or other amount to any employee of or independent contractor or            consultant to the Selling  Companies except for any  employment  agreement  that  Buyer  may  enter  into            independently with a Transferred Employee.                    3.12  Employee Benefits.  N/A                     3.13  Real Property.                           (a)   To  the  Knowledge  of  the Sellers,  true  and  materially  complete  copies  of  the            Assigned Leases have been made available to the Buyer, the list of which is attached hereto as Exhibit J,            and each of the Assigned Leases is a valid and binding agreement of the Selling Companies and is in full            force and effect, and to Sellers’ Knowledge there are no disputes with respect to such Assigned Leases;                         (b)   No security deposit or portion thereof deposited with respect to any of the Assigned            Leases has been applied in respect of a breach of or default under the applicable Assigned Lease that has            not been re-deposited in full;              13 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         (c)   Selling Companies have not subleased, licensed or otherwise granted any Person            other than the Selling Companies the right to use or occupy the Leased Real Property or any portion thereof,            except for those subleases that are set forth on Exhibit J; and                         (d)   Selling Companies have not collaterally assigned or granted any  Lien in any of            the Assigned Leases or any interest therein and there is no condemnation, expropriation or other proceeding            in eminent domain, pending or threatened, affecting any parcel of Leased Real Property or any portion            thereof or interest therein.                    3.14  Environmental Liability.                         (a)    The Selling Companies have not received any notice from any Person alleging            that the Selling Companies or the Assigned Leases set forth in Exhibit J are in violation of any applicable            Environmental Health and Safety Requirement; and                         (b)   To Sellers’ Knowledge, no Hazardous Substance is present in, on or under the            properties comprising the Assigned Leases, under such conditions or in such quantities as to give rise to a            violation of Environmental Health and Safety Requirements, and, to Sellers’ Knowledge, there has been no            release or transferred release at the Assigned Leases properties at any time in violation of Environmental            Health and Safety Requirements.                   3.15  Insurance.  N/A.                    3.16  Third-Party Software.  The Selling Companies only use in the operation of the Businesses            the  Third-Party  Software set  forth  on Exhibit “G”  hereto.  All Third-Party  Software that  the Selling            Companies use in the operation of the Businesses is either licensed or otherwise purchased commercially            (“Third-Party  Software”).  Upon  and  after  the  Closing,  the  Buyer  will have  access  to  the  Third-Party            Software as more particularly set forth in the Transition Services Agreement, until such a time as the Buyer            is able to obtain direct use of the Purchased Third-Party Software either by assignment from the Seller, as            permitted, or after securing, with the assistance of the Seller, its own contract with a vendor or comparable            software with an alternative vendor.                   3.17  Title Insurance Operations Matters.  To Sellers’ Knowledge, with respect to the Work            in Progress, the Selling Companies and their employees, have in all material respects (a) maintained any            closing  escrows  and  disbursed  the  funds  therefrom  in accordance  with  all  applicable  Laws  and  the            agreement of the Persons with the interests in such escrows, (b) performed any title search and issued any            commitment or title report in accordance with industry standards and any state regulatory requirements, (c)            prepared and distributed any closing disclosure and settlement statements accurately and in conformance            with applicable Laws, (d) correctly disbursed any funds in accordance with instructions and maintained            accurate ledgers related to such disbursement, (e) prepared correctly any tax certification and (f) followed            any closing instructions required by a lender with respect to a transaction.                   3.18  Revenue.  The Selling Companies represent and warrant that any revenue from Work in            Progress for transactions in the pipeline prior to the Closing, but not closed prior to the Closing Date or            opened after the Closing Date on behalf of Buyer, belongs to Buyer and is not revenue of the Selling            Companies or  subject  to the Selling  Companies’  creditors,  including  in  any  bankruptcy  proceeding,            regardless of whether Buyer files a UCC-1 lien on such revenue or not.  For purposes of this Agreement,            revenue is not intended to include money collected from a closing of a transaction that is due an underwriter            for  its  share  of  the premium  collected  for  title  insurance  or  money  due  a  third  party  for  expenses  in            connection with a particular closing.              14 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                                              ARTICLE IV                            REPRESENTATIONS AND WARRANTIES OF BUYER                   The Buyer represents and warrants to Selling Companies, ET CO and ET WY the following as of            the Effective Date:                   4.1   Organization of Buyer.  Buyer is a Texas corporation duly organized, validly existing and            in good standing under the laws of the State of Texas and has full power and authority to own and operate            its assets and business.                     4.2   Enforceable Agreement.  The execution, delivery and performance of this Agreement and            each  other Transaction Document by the  Buyer has been duly authorized  by all necessary actions  and            proceedings, and the Buyer has full power and authority to execute and deliver this Agreement and the            other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby            and  thereby.   This  Agreement  and  the  other  Transaction  Documents  constitute  the  valid  and  binding            obligation of the Buyer and are enforceable against the Buyer in accordance with their terms.                   4.3   No  Violation.   Neither  the  execution  and  delivery  of  this  Agreement  or  the  other            Transaction Documents nor the consummation of the transactions contemplated hereby or thereby will (a)            violate any provision of the Organizational Documents of the Buyer; (b) violate, conflict with, or result in            a breach or default under or termination or acceleration of (or otherwise give any other contracting party            the right to terminate or accelerate) any material Contract of the Buyer, or related to its business or assets;            or  (c)  violate  any  applicable  Law.  To  the  extent  required,  all  necessary filings  with,  notices  to  or            Authorizations by, any third parties, including, without limitation, any Governmental Authorities, have            been obtained or filed, or will be within the required time-frame,, in connection with the execution of this            Agreement or the other Transaction Documents by the Buyer, or in connection with the consummation of            the transactions contemplated by this Agreement or the other Transaction Documents by the Buyer.                         4.4        Licensing. Buyer is duly authorized to transact business in the States of Arizona,            Colorado and Nevada, including all licensure required to conduct the Business.                           4.5   Brokers or Finders.  No Liability has been incurred or shall be incurred by any            Person for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this            Agreement or the transactions contemplated hereby as a result of the actions of the Buyer.                                             ARTICLE V                                    COVENANTS AND AGREEMENTS                   5.1   Conduct of the Business.  N/A.                    5.2   Maintenance of Business.  N/A.                   5.3   Compliance with Obligations.  N/A.                   5.4   Notices of Certain Events.   N/A.                   5.5   Advise of Changes.  N/A.                   5.6   Dissolution. N/A.                              15 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   5.7   Employees and Employee Benefits.                         (a)   As  of  the  Closing, the  Buyer will offer  to  employ all  of  the  Branch  Office            employees set forth on Exhibit “M” hereto which is fully incorporated herein.   Those employees who            become  employees  of  Buyer  shall  be  referred  to  herein  as  “Transferred  Employees.”  Transferred            Employees shall be given the same benefits and right to benefits as Buyer’s other employees depending on            their  status  as  full  time  or  part  time  and  classification  as  to  exempt  or  non-exempt.  Nothing  in  this            Agreement shall confer upon any Transferred Employee any right with respect to continued employment            with  the  Buyer,  nor  shall  anything  herein  limit  or  interfere  with  the  Buyer’s  right  to  terminate  the            employment of any Transferred Employee at any time (subject to applicable law), with or without cause or            notice, or restrict the Buyer in the exercise of independent business judgment in modifying any terms or            conditions of employment of the Transferred Employees on and after the Closing Date, except to the extent            Buyer  has  entered  into  binding employment  agreements  with  certain  of  the  employees.  Prior  to            employment, Buyer may conduct criminal and financial background checks in accordance with Buyer’s            policies.   Employment  of  any  individual  may  be  contingent  on an  employee agreeing  to  allow  the            background check and clearing same in accordance with Buyer’s policies.                            (b)   Following the Closing, with respect to any Plans established or maintained by the            Buyer  in  which  any  Transferred  Employee  may  be  eligible  to  participate  after  the  Closing  (the  “New            Plans”),  each  of the Transferred  Employees  shall  be  credited  with the  same  amount  of service  as  was            credited  by the Selling Companies as of the  Closing under similar or comparable  Plans (including for            purposes of determining eligibility to participate, waiting and notice periods for participation, vesting, and            benefit accrual) maintained by the Selling Companies;  provided that such crediting of service shall not            operate to duplicate any benefit or the funding of any benefit.  Notwithstanding the foregoing sentence,            none of the provisions contained herein shall operate to require coverage of any Transferred Employee            under any benefit plan of the Buyer not otherwise available under the terms of such plan.                             (c)   Selling Companies and Buyer agree that Buyer shall accept responsibility for the            Transferred  Employees’  vacation  obligations  owed  by  Seller  to  the  Transferred  Employees  after            Closing.  Buyer explicitly consents to the assumption of the liability for the accrued but unused vacation            balances as of Closing Date of the transaction, in lieu of Seller paying out vacation upon the Transferred            Employees’ termination from Seller.  Seller will issue payment to Buyer for the Transferred Employees’            accrued but unused vacation balances within 15 days of Closing. Any transferred vacation balances for            employees that elect not to accept employment with Buyer shall be accounted for in the True-Up, pursuant            to Section 2.5.  Transferred Employees shall be entitled to the standard paid time off and sick time pursuant            to Buyer’s plans and policies.  In the event that any Transferred Employee is currently entitled to a higher            annual vacation accrual under the plan offered by the applicable Selling Company than currently offered            pursuant to the Buyer’s plan, the Buyer shall honor the higher annual vacation accrual with respect to such            Transferred Employee to the extent permitted by applicable Law.                         (d)   No assets or Liabilities of any Plan will be transferred to the Buyer or any Affiliate            of the Buyer, provided that Buyer shall allow its retirement plan, if any, to accept a “direct rollover” of the            account balances of the Transferred Employees, if such rollover is elected in accordance with applicable            Law and plan terms by any such Transferred Employee, including any 401(k) loan.                         (e)   Selling Companies shall, and shall cause their respective Affiliates to, provide to            the Buyer on or prior to the Closing certain Employee Personal Data relating to the Transferred Employees,            as allowed by law.                          (f)   Selling Companies will pay the Transferred Employees all sums owed or claimed            by the Transferred Employees through August 31, 2020 for salaries, bonuses and variable compensation,              16 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             including variable compensation or bonuses that are partially earned prior to the Closing Date but would            not be fully paid until a later time had the Closing not occurred.                                5.8   Specific Employment Agreements and Restrictive Covenants.                           (a)   Key Employees.  Prior to and as a condition of closing, the following employees            shall  enter  into an employment or  compensation agreement with  the  Buyer (the  “Employment            Agreements”):  Ashley Bush, Brian Cooper, Michael Oakes, William McAfee, Ronda McAfee, William            Witt, Sylvia Smith-Turk, Robert Chad Felix and Don Booher (herein together the “Key Employees”).  With            the exception of Sylvia Smith-Turk and Ronda McAfee, who will each have one-year term employment            agreements, the employment agreements will be for a three-year term with corresponding   non-compete            and  non-solicit/non-hire  restrictive  covenants.    The  provisions  of these  restrictive  covenants  shall  be            contained in The Key Employees’ Employment Agreements. Buyer covenants that until the post-closing            negotiations  set  forth  in Section 7.1 have  been  concluded/resolved/consummated (and  for  60  days            thereafter), it will not enforce the  non-competition provisions of this Section 5.8 against Brian Cooper with            respect to his indirect partial ownership in Guaranteed Title Group, LLC, an affiliate business arrangement.             Buyer also covenants that it will not enforce or attempt to enforce the non-competition provisions in this            Section 5.8 against William or Rhonda McAfee with respect to their ownership in Short Sale Solutions or            Pikes Peak School of Real Estate during the term of any employment agreement between Buyer and these            employees.                         (b)   Restrictive Covenants.  Selling Companies, ET CO, ET WY, Dwyer and Willis,            for a period of three  (3) years after the  Closing Date (“Restricted Period”) agree not to (i) solicit, attempt to            hire or hire, directly or indirectly, any of the Transferred Employees; or (ii) participate in, open, own, direct,            work for, run or otherwise compete with Buyer in the title insurance, escrow, closing and settlement services            business (“Competing Business”) in counties in which the Businesses operate, as identified on Schedule 5.8(b)               (the “Restricted Areas”); provided, however, Selling Companies shall not be prohibited from acquiring a 5%            or less ownership interest in a public company that operates or has ownership in a Competing Business and            Buyer acknowledges the existence of the Thomas Title Division of Empire West Title Agency, LLC (“Thomas            Title”),  a  primarily commercial  based  title  business located  in  the  Scottsdale,  Arizona  area  and  licensed            throughout the U.S., as well as ET CO and ET WY’s other existing business operations in Colorado, Arizona            and Nevada outside of the Restricted Areas (“Other Operations”).  Buyer acknowledges and agrees that            Thomas Title shall not be subject to the non-Competition provisions of this Agreement and shall be permitted            to continue to close transactions in the ordinary course of business; provided, however, during the Restrictive            Period both Thomas Title and the Other Operations shall be subject to a three year non-hiring restrictive            covenant with  respect  to  the Transferred  Employees. During  the  Restricted  Period,  in  the  event  that  a            Transferred Employee approaches ET CO, ET WY, Thomas Title or any of the Other Operations regarding            employment, ET CO, ET WY, Thomas Title or the Other Operation will first obtain Buyer’s approval before            discussing employment opportunities with the Transferred Employee, but in no event will ET CO, ET WY,            or the Other Operations contact any Transferred Employee regarding employment opportunities.  In addition,            for  the  Restricted  Period,  the Other Operations  will  not  open  physical  (brick  and  mortar)  offices  in  the            Restricted Areas, however, so long as it remains primarily a commercial based title business and operates            consistent with past practices, Thomas Title is not restricted from opening offices in the Restricted Areas.             The Parties acknowledge that, in connection with the transfer of company names the Seller may, for business            purposes,  reconstitute Thomas  Title  and/or  the  Other  Operations into  new  corporate  entities            (“Reconstitution”). Notwithstanding the Reconstitution of Thomas Title or one more of the Other Operations,            the  terms  of  this  Section  5.8 and  Article  VIII will  apply  to  the  any  newly  form  entity  arising  from  a            Reconstitution.                                  17 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   5.9   Third  Party  Claims  Cooperation.   The Parties  shall  cooperate  with  each  other  with            respect to the defense of any claims or litigation made or commenced by third parties subsequent to the             Closing Date which relate to the operation of the Business or ownership of the Purchased Assets prior to            the  Closing Date and which claims or litigation are not subject to the indemnification provisions contained            in Article VI; provided that the Party requesting cooperation shall reimburse the other Party for the other            Party’s reasonable out-of-pocket costs and expenses of furnishing such cooperation.                   5.10  Tail Coverage.  N/A                   5.11  Access to Closed Files.  Upon reasonable notice and so long as Selling Companies are            required to retain the Closed Files under applicable Laws, Seller shall, in a timely matter, make the Closed            Files available for inspection by Buyer for review to the extent inquiries from any customers related to the            Business may require  such review or for other reasonable business purposes.  As used in this Section 5.11,            the right of inspection includes the right to make extracts or copies, at Buyer’s cost; provided that the Buyer            shall advise Selling Companies of any such extracts or copies.                     5.12  Consents and Authorizations; Condition to Transfer of Certain Contracts.                           (a)   The Parties shall use their respective commercially reasonable efforts and work            cooperatively to timely procure all required authorizations, required filings, title agent licenses, permits,            consents, approvals, authorizations, waivers, and all other requirements which must be obtained or satisfied            for the Buyer to own and operate the Purchased Assets and conduct the Business, including all required            consents  from  third  parties  under  the  Contracts  or  otherwise  so  that  the Business may  continue  to  be            operated by the Buyer without interruption following the Closing.                         (b)   Assumed Contracts requiring consent to the assignment thereof to the Buyer are            referred to as, individually, a “Contract Requiring Consent” and collectively as the “Contracts Requiring            Consent.”  The  terms  of  this Section 5.12(b) shall  govern  the  transfer  of  the  benefits  of  any  Contract            Requiring  Consent  where  the  required  consent  has  not  been  obtained  on  or  before  the  Closing  Date.             Notwithstanding anything herein to the contrary, the Parties acknowledge and agree that at the Closing,            Selling Companies shall not assign to the Buyer any Contract Requiring Consent unless the Buyer has            agreed to assume such Contract and the applicable consent has been obtained prior to the Closing Date.             With respect to each Contract Requiring Consent that the Buyer has agreed to assume but has not been duly            assigned on or prior to the Closing  Date (each, an “Unassigned Contract”), after the  Closing Date, if            required by the Buyer, Selling Companies shall continue to deal with the other contracting party(ies) to            each such Unassigned Contract as the prime contracting party and shall use its commercially reasonable            efforts to promptly obtain the consent of all required parties to the assignment of each such Unassigned            Contract, but, as between the Buyer and Selling Companies, the Buyer shall be entitled to all of the benefits            of each such Unassigned Contract accruing after the  Closing Date to the extent that Selling Companies            may provide  the  Buyer with such benefits without violating the terms  of such Unassigned Contract or            applicable Law; provided that the performance by the Buyer of an Unassigned Contract does not cause a            breach  or  threatened  breach  under  such  Unassigned  Contract,  the  Buyer  agrees  to  perform,  at  its  sole            expense, all of the obligations of Selling Companies to be performed after the  Closing Date under each            such Unassigned  Contract for which the  Buyer receives benefits  under after the  Closing Date, and to            reimburse Selling Companies for any reasonable and required expenses are incurred by Selling Companies            on the Buyer’s behalf in keeping such Unassigned Contract in effect.                         (c)   The Parties agree that for those Assigned Leases, with respect to which any of the            Selling  Companies  or  selling  Parties  owns the  Leased  Real  Property  and/or is the  Landlord  under  the            Assigned Lease, the term of the such Assigned Lease shall not exceed five (5) years, and the leases shall be            amended to reflect that change.                18 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                               5.13  Leaseback of Employees. In order to facilitate the closing of transactions in the period            immediately following Closing, the Selling Companies shall for a period of  time to be agreed upon by the            Parties (the “Leaseback Period”), lease some or all of the Transferred Employees from Buyer as more            particularly  described  in  that  certain  Transition  Services  Agreement  and pursuant  to  the  terms  if  the            Employee Leasing Agreement executed by the Parties concurrently with this Agreement.                    5.14  Short Sale Company.   Selling Companies agree to divest themselves of any ownership            or membership interest they may have in Short Sale Solutions, a short sale company owned in part by            William and Rhonda McAfee.                    5.15  Name Changes.  All name changes required pursuant to Section 1.1(k) shall be completed            in a reasonable period of following the Closing Date.                                                ARTICLE VI                                       CONDITIONS TO CLOSING                    6.1   Conditions to the Obligations of Buyer.  The obligations of Buyer hereunder are subject            to the fulfillment or satisfaction of each of the following conditions (any one or more of which may be            waived by Buyer, but only in writing signed by Buyer):                         (a)   All of the material Assumed Contracts shall be valid and binding agreements of            the Selling Companies and shall remain in full force and effect in all material respects.                         (b)   No material claim shall have been asserted, filed, made or threatened by any person            or entity that he, she or it has any right, title or interest in or to the Purchased Assets, other than incidental            or immaterial assets, such as office supplies or other comparable items.                         (c)   Buyer shall have received all of the closing delivery items set forth in Section 2.8.                   6.2   Conditions  to  Obligations  of Selling  Companies.   The  obligations  of Selling            Companies hereunder are subject to the Selling Companies shall having received all of the closing            delivery items set forth in Section 2.9.                                                                         ARTICLE VII                                       POST CLOSING MATTERS                  7.1   Guaranteed Title Group.  ET CO and BLC Management, LLC, whose sole member is Brian            Cooper, are members of Unified JV, LLC, a Colorado limited liability company (“Unified JV”). Unified            JV is  the  thirty  percent  minority  owner  of Guaranteed  Title  Group,  LLC,  a  Colorado  limited  liability            company (the “ABA”).  Buyer and ET CO agree that within 60 days of the Closing Date, Buyer will advise            ET CO whether it desires to purchase ET CO’s interest in the ABA/Unified JV.  If Buyer opts not to            purchase such interest, or the majority owner of the ABA refuses to agree to the transfer of the interest to            Buyer, ET CO shall have six (6) months to divest itself or cause Unified JV to divest itself of such interest            in the ABA.  Until such time, ET CO shall not be in violation of the restrictive covenant not to compete as            set forth in Section 5.8(b) of this Agreement.  If Buyer does decide to purchase the interest in the ABA, ET            CO will transfer the interest in exchange for 50% of Buyer’s earnings attributable to the ABA for the three            (3) years following the transfer of the interest.  The Parties acknowledge that Unified JV’s ownership in the              19 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             ABA is not included in the Purchase Price.   ET CO acknowledges and agrees that Brian Cooper’s indirect            ownership  in  the  ABA  will  represent  a  conflict  with  the  non-compete  provisions  of  his  employment            agreement with Buyer and will ensure that, notwithstanding the result of the negotiations between ET CO            and Buyer hereunder regarding the ABA, Brian Cooper will divest his interest in the ABA within the time            frame set forth in Section 5.8(a).                    7.2   ET  Productions Colorado  Title  Group.  The  Colorado  Title  Group  Division  of  ET            Productions provides title search and exam services to Alpine Title, Title Company of Rockies, Abstract &            Title  of  Mesa  County,  Northwest  Title and  the  ABA  (“Remaining  Operations”).   Upon  successful            completion of the Transition Services Agreement and upon mutual agreement of the Parties, the assets,            employees and equipment, of the Colorado Title Group Division will either remain with ET Productions or            its successor or shall be transferred the Buyer, at no additional cost; provided, however, if the Colorado            Title Group Division assets are transferred to the Buyer, the Buyer and ET shall enter into a three (3) year            service agreement whereby Buyer shall continue to provide title search and exam services to some or all of            the Remaining Operations at service levels and rates consistent with  service levels and rates applicable to            the Remaining Operations as of the Closing Date.                                             ARTICLE VIII                                          INDEMNIFICATION                   8.1   Indemnification by Selling Companies, ET CO and ET WY.  Subject to Section 8.5,            Selling  Companies,  ET  CO,  and  ET  WY shall, severally and  not jointly, indemnify  the  Buyer  and  its            respective  Affiliates,  directors,  employees,  agents  and  other  Representatives  (collectively,  the “Buyer            Indemnified Parties”) against and hold them harmless from all Losses resulting from, arising out of or            related  to (a) any  breach  of  any  representation  or  warranty  of Selling  Companies contained  in  this            Agreement; (b) the Retained Liabilities or (c) fraud or gross and willful misrepresentation of the Selling            Companies (collectively, “Buyer Indemnified Losses”).                     8.2   Indemnification by Buyer.  Subject to Section 8.5, the Buyer shall indemnify Selling            Companies, including their respective managers, shareholders, members, directors, officers, employees,            agents and other Representatives (collectively, the “Seller Indemnified Parties”) against and hold them            harmless from all Losses resulting from, arising out of or related to (a) any breach of any representation or            warranty of the Buyer contained in this Agreement;  (b) the Assumed Liabilities or (c) fraud or gross and            willful misrepresentation of the Buyer (collectively, “Seller Indemnified Losses”).                     8.3   Third Party Claim Procedures.  Subject to the provisions set forth below, an Indemnified            Party shall have the right, at its own expense, to participate in the defense of any Third Party Claim, and if            said right is exercised, the Parties shall cooperate in the investigation and defense of said Third Party Claim.             The following provisions shall apply to any Third-Party Claim:                         (a)   The Indemnified Party will give the Indemnifying Party written notice of any Third            Party Claim within thirty (30) days of becoming aware of any such Third Party Claim; provided, however,            that a delay in giving such notice shall relieve the Indemnifying Party only to the extent the Indemnifying            Party  suffers  irreparable  prejudice  from  or  as  a  result  of  such  a  delay.   The  Indemnifying  Party  will            undertake the defense thereof by representatives chosen by it, unless the Indemnifying Party disputes the            propriety of such Third Party Claim for indemnification against it under the provisions of this Article VIII            and delivers a written notice (“Dispute Notice”) of such dispute and election not to indemnify within twenty            (20) days of receipt of written notice of such Third Party Claim (in which case, the provisions of Section            9.14 shall govern the resolution of such disputed claim).    If the Indemnifying Party undertakes the defense            of such Third Party Claim, the Indemnifying Party shall use its commercially reasonable efforts to defend            any such Third Party Claim actively and in good faith to its conclusion, and the Indemnified Party shall not              20 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             settle  or  agree  to  an  adjudication  of  such  Third  Party  Claim.  The  Indemnified  Party  shall  make  fully            available to the Indemnifying Party and its representatives on a timely basis all records and other materials            required or requested by them and in the possession or under the control of the Indemnified Party, for the            use of the Indemnifying Party and its representatives in defending any such Third Party Claim, and shall in            all other respects give full and prompt cooperation and assistance in such defense.                         (b)   If  the  Indemnifying  Party  timely  delivers  a  Dispute  Notice  to  the  Indemnified            Party, then the Indemnified Party shall undertake the defense of the Third-Party Claim, subject to its rights            against the Indemnifying Party under this Article VIII.  In such event, the Indemnified Party shall have the            right to control the defense of the Third-Party Claim, including the right to settle or compromise any such            Third-Party Claim without the consent of the Indemnifying Party, so long as such settlement includes a full            release of the Indemnifying Party and admits no Liability of the Indemnifying Party.                         (c)   Notwithstanding a Party’s responsibility for the defense of a Third-Party Claim,            the other Party shall have the right to participate, at its own expense and with its own counsel, in the defense            of  a  Third  Party  Claim,  and  to  the  extent  reasonably  requested  by  the  other Party,  the Party  having            responsibility for defense of the Third Party Claim (“Defending Party”) shall consult with the other party            from time to time on all material matters relating to the defense of such Third Party Claim.  The Defending            Party  shall  promptly  provide  the  other Party  with copies  of  all pleadings  and  material  correspondence            relating to such Third-Party Claim.                         (d)   Notwithstanding the foregoing, the Indemnifying Party shall not (i) be entitled to            control the defense of a Third-Party Claim if (A) the Third-Party Claim relates to or arises in connection            with any criminal proceeding, action, indictment, allegation or investigation, (B) the Third-Party Claim            seeks an injunction or equitable relief against the Indemnified Party, (C) an actual conflict of interest exists            between the Indemnified Party and the Indemnifying Party or (D) the Indemnifying Party does not agree in            writing to be fully responsible (with no reservation of rights) for all Losses relating to the Third-Party            Claim, and (ii) be entitled to settle any Third-Party Claim if such settlement imposes any restriction or            Liability on the Indemnified Party other than the payment of money, for which the Indemnifying Party will            be responsible and will pay in full on the date of settlement, and for which the Indemnified Party shall have            no Liability.                         (e)   Notwithstanding anything to the contrary in this Section 8.3, to the extent that any            Third-Party Claim subject to indemnity hereunder is ultimately determined to be the joint liability of the            Indemnified Party and the Indemnifying Party, the Indemnified Party’s recovery hereunder with respect to            such Third Party Claim shall be limited to the Indemnifying Party’s proportional liability of such Third            Party Claim.                   8.4   Direct Claims Procedure.  The following exclusive procedure shall govern any and all            indemnification claims against an Indemnifying Party which may be brought pursuant to the provisions of            this Agreement:  (a) The Indemnified Party shall give written notice to the Indemnifying Party of all claims,            other than Third Party Claims (the procedure for which is set forth in Section 8.3), that could constitute a            claim for indemnification under this Article VIII within thirty (30) days of becoming aware of such claim;            provided, however, that a delay in giving such notice shall relieve the Indemnifying Party only to the extent            the Indemnifying Party suffers irreparable prejudice from or as a result of such a delay.  The written notice            shall specify, to the extent known by the Indemnified Party, (i) the factual basis for such claim and, if            applicable, the specific alleged violation of this Agreement; (ii) the dollar amount of the claim and the basis            therefor;  and  (iii) copies  of  any  underlying  correspondence  or  communications  from  a  third  party  or            otherwise with respect to the foundation of such claim;  (b) With respect to indemnification claims other            than Third Party Claims (the procedure for which is set forth in Section 8.3), following receipt of notice            from the Indemnified Party of a claim, the Indemnifying Party shall have twenty (20) days to make such             21 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             investigation of the claim as the Indemnifying Party deems necessary or desirable.  For the purposes of such            investigation, the Indemnified Party shall fully and timely cooperate with the Indemnifying Party and the            Indemnified  Party  agrees  (subject  to  the  Indemnifying  Party  executing  a  reasonable  confidentiality            agreement)  to  make  fully  and  timely  available  to  the  Indemnifying  Party  and/or  its  authorized            representatives the information relied upon by the Indemnified Party to substantiate the claim, as well as            any other information bearing thereon reasonably requested by the Indemnifying Party.  If the Indemnified            Party and the Indemnifying Party agree at or prior to the expiration of such twenty (20) day investigation            period (or any mutually agreed upon extension thereof) (“Investigation Period”) to the validity and amount            of such claim, then the Indemnifying Party shall immediately pay, or cause to be paid, to the Indemnified            Party the full amount of the claim, subject to the limitations set forth in Section 8.5.  If the Indemnified            Party and the Indemnifying Party do not mutually agree on the validity and amount of such claim at or prior            to the expiration of such Investigation Period, then the Indemnified Party and the Indemnifying Party shall            agree to resolve such dispute pursuant to Section 8.4 and Section 9.14.                   8.5   Time Limitations on Indemnity.  Notwithstanding any other provision of this Agreement:                         (a)   No claim or action shall be brought under Section 8.1 (a) or Section 8.2(a) after            the expiration of the three (3) year period immediately following the Closing Date (the “Claim Period”);            provided, however, the Claim Period shall not apply for any claims resulting from the fraud or gross and            willful misrepresentation of the other Party.                          (b)   The representations and warranties in this Agreement, the Schedules, the Exhibits            and any certificate delivered by any party to another party in connection with this Agreement shall (i)            survive for the periods set forth in Section 8.5(a) and (ii) in no event be affected or deemed waived by            reason  of  any  knowledge  or  any  investigation,  inquiry  or  examination  made  for  or  on  behalf  of  any            Indemnified Party (including by any of its Representatives), by reason of (A) the fact that the Indemnified            Party or any of its Representatives knew or should have known that any such representation or warranty is,            was  or  might  be  inaccurate,  or  (B)  the  Indemnified  Party’s  acceptance  of  any  certificate  or  opinion            hereunder, or (C) the Indemnified Party’s waiver of any condition set forth herein.  The Buyer and Selling            Companies acknowledge  that indemnification hereunder with respect to the breach of any covenant or            agreement contained herein, including any breach of any covenant or agreement in this Agreement, shall            not be subject to any time or other limitations (other than those imposed under any applicable statute of            limitations).                         (c)   Solely for the purposes of determining the amount of Losses arising out of any            breach of  any  representation  or  warranty  set  forth  in  this  Agreement  (and  not  whether  any  such            representation or warranty has, in fact, been breached), such representation or warranty shall be read as if            all qualifications as to materiality were deleted therefrom.                         (d)   Except for Losses resulting from fraud in which event there shall be no cap, an            Indemnified  Parties’ right  to  recover  hereunder  shall  not  exceed  $10,000,000.00  in  the  aggregate            (“Indemnification Limit”).                             (e)   Except for Losses resulting from fraud in which event there shall be no basket, the            Selling Companies, ET CO and ET WY shall not have any obligation to indemnify a Buyer Indemnified            Party unless  and  until  Buyer  Indemnified  Parties have  suffered Buyer  Indemnified Losses,  in  the            aggregate, in excess of One Hundred Fifty Thousand Dollars ($150,000.00) (the “Basket”), at which point            the Selling Companies, ET CO or ET WY, as applicable, shall indemnify such Buyer Indemnified Parties            for amounts in excess of the Basket, subject to the other limitations set forth herein.              22 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   8.6   Net  Liability;  Recovery  from  Third  Parties.   In  computing  the  amount  of  any            Indemnified Loss, such Indemnified Loss shall be deemed to be net of any insurance proceeds, indemnity,            contribution or other similar payment paid by a  third party and  actually received  with respect thereto;            provided, however, that in all cases the timing of the receipt or realization of insurance proceeds, and the            net present value of the incremental premium costs which are incurred by the Indemnifying Party and            substantiated by the applicable insurance carrier in writing as having been so incurred as a result of such            claim, shall each be taken into account in determining the amount of any reduction of the Indemnified Loss.                    8.7   Adjustment  to  Purchase  Price.   Any  payment  made  by  a  Selling  Company  as  an            Indemnifying Party pursuant to this Article VIII will constitute a dollar-for-dollar decrease of the Purchase            Price. For greater certainty, any such decrease of the Purchase Price will be allocated among the Purchased            Assets to which such payment can reasonably be considered to relate or if such payment does not reasonably            relate to a particular asset(s), such decrease will be allocated to goodwill.                    8.8   Exclusive  Remedy.  The remedies set forth in  this Article VIII shall  be  the  exclusive            remedy of the Parties following the Closing for any Losses arising out of any breach of the representations,            warranties, covenants or agreements of the Parties contained in this Agreement, provided that nothing in            this Article VIII will limit any Party’s right to any remedy based on fraud or intentional misconduct or any            right to specific performance or other injunctive remedy.                                               ARTICLE IX                                          MISCELLANEOUS                              9.1   Publicity.  The Purchase Price shall be considered Buyer Confidential Information and            neither Selling  Companies nor their  respective shareholders, officers,  Board,  members,  managers or            employees shall disclose the Purchase Price.  The Parties may issue a joint press release.  If the Parties            desire to issue individual press releases, the Parties will work together to agree on appropriate language that            is positive and agreeable to both Parties.                     9.2   Notices.  All notices required or permitted to be given hereunder shall be in writing and            may be delivered by personal delivery, by overnight national courier, or by United States mail.  If personally            delivered, such notice shall be deemed delivered upon actual receipt.  Notices delivered by mail shall be            deemed given five (5) Business Days after being deposited in the United States mail, postage prepaid, and            registered or certified mail, return receipt requested.  If delivered by overnight courier, such notice shall be            deemed delivered upon receipt.  Any notices by PDF, email or other electronic means of delivery, shall be            deemed given on the next Business Day after transmission; provided, however, (i) sender shall bear the            burden of proof of delivery and (ii) such notice shall only be effective if such notice is also delivered by            one of the other methods set forth above on or before two (2) Business Days after its delivery by PDF,            email or other electronic means of delivery.  All notices shall be addressed as follows:                               (a)   If to Selling Companies, ET CO or ET WY, Dwyer or Willis:                               ET Investments, LLC                              10851 S. Crossroads Drive, Suite E                              Parker, Colorado 80134                              Attn:  General Counsel                              Email:  Martelon-Evans, Meghan mmartelon@etinv.com                                                                                      23 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                               (b)   If to the Buyer:                               Stewart Title Company                              1360 Post Oak Blvd., Suite 100, MC#14-1                              Houston, Texas 77056                              Attn: General Counsel - STC                              Email: cmadole@stewart.com                        and/or  to  such  other  respective  addresses  and/or  addressees  as  may  be  designated  by  notice  given  in            accordance with the provisions of this Section.                    9.3   Fees and Expenses.  Except as provided in this Agreement, Selling Companies on the one            hand, and the Buyer on the other hand, shall each bear and pay for all of their own costs, fees and expenses            (including,  without  limitation,  legal,  accounting,  investment  banking,  broker’s,  finder’s  and  other            professional or advisory fees and expenses) incurred or to be incurred by it, in each case, in negotiating and            preparing  this Agreement  and  the  other  Transaction  Documents  and  in  closing  and  carrying  out  the            transactions contemplated hereby and thereby.                   9.4   Entire Agreement.  This Agreement and the other Transaction Documents constitute the            entire agreement between the parties and shall be binding upon and inure to the benefit of the Parties hereto            and their respective legal representatives, successors and permitted assigns. Any amendments, or alternative            or supplementary provisions to this Agreement, must be made in writing and duly executed by Selling            Companies and Buyer.  That certain Letter of Intent, dated as of March 6, 2020, by and between Stewart            Title Company and ET Investments, LLC is terminated in its entirety.  The Break-Up Agreement is not            subject to any merger clause into this Agreement and shall be governed by its own terms.                     9.5   Non-Waiver.   The  failure  in  any  one  or  more  instances  of  a Party  to  insist  upon            performance of any of the terms, covenants or conditions of this Agreement to exercise any right or privilege            in this Agreement conferred, or the waiver by said Party of any breach of any of the terms, covenants or            conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants,            conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such            forbearance or waiver had occurred.  No waiver shall be effective unless it is in writing and duly executed            by an authorized representative of the waiving Party.                   9.6   Counterparts; PDF Signatures.  This Agreement may be executed in multiple separate            counterparts, each of which shall be deemed to be an original, and all such separate counterparts shall            constitute but one instrument.  Signatures of the Parties transmitted by facsimile, portable document format            (“.pdf”) or other electronic means shall be deemed to be their original signatures for all legal and other            purposes.                   9.7   Severability.  The invalidity of any provision of this Agreement or portion of a provision            shall  not  affect  the  validity  of  any  other provision  of  this  Agreement  or  the  remaining  portion  of  the            applicable provision.                   9.8   Benefit.  Nothing in this Agreement, express or implied, shall confer on any person other            than  the Parties  hereto,  and  their  respective  successors  and  permitted  assigns,  any rights,  remedies,            obligations or liabilities under or by reason of this Agreement, including, without limitation, third party            beneficiary rights.                   9.9   No Assignment.  No Party may assign, whether voluntarily or by operation of Law, or            delegate this Agreement without the prior written consent of the other Party. Except as set forth in the             24 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             preceding sentences, any purported assignment or delegation of this Agreement, in whole or in part, without            the prior written consent of the non-assigning Party shall be void and of no effect.                   9.10  Amendments.  This Agreement shall not be modified or amended except pursuant to an            instrument in writing executed and delivered on behalf of each of the Buyer and Selling Companies.                   9.11  Headings.  The headings contained in this Agreement are for convenience of reference            only and shall not affect the meaning or interpretation of this Agreement.                   9.12  Schedules and Exhibits.  The Schedules and exhibits referred to in this Agreement shall            be construed with and as an integral part of this Agreement to the same extent as if set forth verbatim herein.                   9.13  Interpretation.  All definitions in this Agreement shall apply equally to both the singular            and  plural  forms  of  the  terms  defined.   Wherever  the  context  may  require,  any  pronoun  used  in  this            Agreement  shall  include  the  corresponding  masculine,  feminine  and  neuter  forms.   As  used  in  this            Agreement, the words “include,” “includes,” and “including” shall be deemed to be followed by the phrase            “without limitation”.  As used in this Agreement, the terms “herein,” “hereof,” and “hereunder” shall refer            to this Agreement in its entirety. Any references in this Agreement to “Sections” or “Articles” shall, unless            otherwise specified, refer to Sections or Articles, respectively, of this Agreement.  Where something is            defined in the singular, the plural of the defined term shall be taken to mean two or more of those things            which are within the definition; and where something is defined in the plural or collectively, the singular            of the defined term shall be taken to mean any one of those things which fall within the definition.                   9.14  Governing Law; Dispute Resolution.                           (a)   The  terms  and  conditions  of  this  Agreement  shall  be  governed,  construed,            interpreted and enforced in accordance with the respective domestic laws of the State of Delaware, without            regard to conflicts of law principles.                            (b)   Notwithstanding anything to the contrary in this Section 9.14, the Buyer, Selling            Companies and their respective Affiliates agree that they will attempt to settle any dispute, controversy or            claim arising out of or relating to this Agreement (each, a “Claim”) through good faith negotiations between            senior management of the Buyer and Selling Companies with authority to resolve such matter.  If the Claim            cannot be resolved by such good faith negotiations between senior management of the Buyer and Selling            Companies within thirty (30) Business Days of the delivery of notification of such Claim, the Buyer and            Selling Companies agree that such Claim may be litigated or resolved by any other means agreed to by the            Parties  or available  under  applicable  Law.   The  Parties  acknowledge  that with  respect  to  any  claim,            jurisdiction shall be proper in any state and federal court in the jurisdiction in which the Party against whom            a Claim is made has its principal office located.                   9.15  No Strict Construction.  Each of the Parties confirms that it has reviewed, negotiated and            adopted this Agreement as the joint agreement and understanding of the Parties, and the language used in            this Agreement shall be deemed to be the language chosen by the Parties thereto to express their mutual            intent, and no rule of strict construction shall be applied against any person.                                                                                             [Signature Page Follows]             25 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                                                                                                             IN WITNESS WHEREOF, the Parties have executed this Asset Purchase Agreement effective as            of the Effective Date.                                                                    BUYER:                                                                                                STEWART TITLE COMPANY                                                                                                                                                By:                                                                                 Name: Fred Eppinger                                                Title: Chief Executive Officer                                                             ET CO:                                                                                                ET INVESTMENTS, LLC, a COLORADO                                                LIMITED LIABILITY COMPANY, on behalf of                                                itself and as Manager for Unified Title Company,                                                LLC, Unified Title Company of Northern Colorado,                                                LLC, Legacy Title Group, LLC, Empire West Title                                                Agency, LLC, Empire Title of Colorado Springs, LLC,                                                Colorado Escrow and Title Services, LLC, El Paso Title                                                Plant, LLC, Western Title Company, LLC, Western                                                Exchange Services, LLC, and ET Production Services,                                                LLC                                                                                                 By:                                                                                 Name: John P. Dwyer, Jr.                                                Its: Chief Executive Officer                                                                                                ET WY:                                                                                                ET INVESTMENTS, LLC, a WYOMING LIMITED                                                LIABILITY COMPANY,                                                                                                 By:                                                                                 Name: John P. Dwyer, Jr.                                                 Its: Chief Executive Officer                                                                                                                                                                   John P. Dwyer Jr. and Bryan R. Willis individually                   With respect to only Section 5.8(b)                                      ________________________________                  John P. Dwyer, Jr.                                                       ________________________________                  Bryan R. Willis                

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                                                                                                   EXHIBIT B                   For purposes of the Agreement, the following terms shall have the following meanings:                   “Affiliate” means with respect to any Person, any Person which directly or indirectly, Controls, is            Controlled by, or is under common Control with, such Person.                    “Agreement” has the meaning set forth in the first paragraph of this Agreement.                    “Applicable Date” means July 1, 2020.                   “Applicable  Plan”  means  any  Plan  in  which  any  current  or  former  Representative  of Selling            Companies or any ERISA Affiliate of Selling Companies participates, or which covers or provides any            benefits to any such Representative of Selling Companies or any ERISA Affiliate of Selling Companies,            and (a) to which Selling Companies or any ERISA Affiliate of Selling Companies is a party or is bound, or            (b) with respect to which Selling Companies or any ERISA Affiliate of Selling Companies is required to            make payments or contributions.                   “Assigned Leases” has the meaning set forth in Section 1.1(l).                   “Assignment and Assumption Agreement” has the meaning set forth in Section 2.8(a).                   “Assignment and Assumption of Lease” has the meaning set forth in Section 2.8(c).                   “Assumed Contracts” has the meaning set forth in Section 1.1(f).                   “Assumed Liabilities” has the meaning set forth in Section 1.3(a).                   “Authorizations” means all filings or registrations with, notices to, and permits, orders, consents,            authorizations, waivers, licenses, orders, franchises, certifications and approvals of, third parties, including            all Governmental Authorities.                    “Bill of Sale” has the meaning set forth in Section 2.8(b).                   “Business” has the meaning set forth in the Recitals.                   “Business Day” means any day other than (a) Saturday or Sunday, or (b) any other day on which            banks in Alaska are permitted or required to be closed.                    “Buyer” has the meaning set forth in the first paragraph of this Agreement.                   “Buyer Indemnified Losses” has the meaning set forth in Section 8.1                   “Buyer Indemnified Parties” has the meaning set forth in Section 8.1.                   “Change in Control Payment” means any change in control, severance, stay bonus, success or other            payment triggered by the transactions contemplated by this Agreement.                   “Claim Period” has the meaning set forth in Section 8.5(a)              2 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   “Closed Files” has the meaning set forth in Section 1.1(h).                   “Closing” has the meaning set forth in Section 2.4.                   “Code” means the United States Internal Revenue Code of 1986, as amended.                    “Contract”  means,  with respect to any Person, any written or oral agreement, contract, Lease,            license, instrument, deed, power of attorney, purchase order, release, or other legally binding promise or            undertaking of any nature to which such Person is a party or by which its properties or assets may be legally            bound,  in  each  case,  together  with  all  amendments,  extensions,  renewals,  modifications,  alterations,            guaranties and other changes thereto.                   “Contract(s) Requiring Consent” has the meaning set forth in Section 5.12(b).                   “Control” (including with correlative meaning, controlled by and under common control with) shall            mean, with respect to any party, the possession, directly or indirectly, of the power to direct or cause the            direction of the management and policies of such party, whether through the ownership of voting securities,            by contract or otherwise.                   “Closing Date” has the meaning set forth in Section 2.4.                   “Defending Party” has the meaning set forth in Section 8.3(c).                   “Dispute Notice” has the meaning set forth in Section 8.3(a).                   “Effective Date” has the meaning set forth in the first paragraph of this Agreement.                   “Employee Personal Data” shall mean all information relating to a Transferred Employee that is an            identified or identifiable natural person that (i) is obtained by the Buyer from the Selling Companies or any            of their respective Affiliates or Representatives, (ii) is processed by the Buyer on behalf of the Selling            Companies or any of their respective Affiliates, (iii) pertains to the Transferred Employees, or (iv) is created            by the Buyer based on (i), (ii), or (iii) above.                   “Employment Agreements” has the meaning set forth in Section 5.8(a).                   “Environmental, Health and Safety Requirements”  means  Laws and Authorizations  concerning            public and employer health and safety, pollution, or protection or restoration of the environment or natural            resources (including, without limitation, those related to water, air and soil).                    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.                   “ERISA Affiliate” means any Person that is included in a controlled group of companies within            which Selling Companies is also included, as provided in Section 414(b) of the Code; or which is a trade            or business under common control with Selling Companies, as provided in Section 414(c) of the Code; or            which constitutes a member of an affiliated service group within which Selling Companies is also included,            as provided in Section 414(m) of the Code; or which is required to be aggregated with Selling Companies            to regulations issued under Section 414(o) of the Code.                    “Escrow Accounts” has the meaning set forth in Section1.1(j).                   “Exchange  Act”  means  the  Securities  Exchange  Act  of  1934,  as  amended,  and  the  rules  and            regulations promulgated thereunder, as the same may be amended from time to time.             3 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   “Excluded Assets” has the meaning set forth in Section 1.2.                    “Financial Information” has the meaning set forth in Section 3.5(a).                   “GAAP” means U.S. generally accepted accounting principles applied on a consistent basis from            period to period.                    “Governmental Authority” means any government or any governmental, regulatory or political            body, instrumentality, division, subdivision, department, agency or authority or any court, arbitrator or            mediator (public or private), in each case, whether foreign, federal, state, provincial or local.                   “Hazardous  Substance”  means  any  material  or  substance  defined  or  regulated  as  a  hazardous            substance,  hazardous  material,  toxic  material,  pollutant,  contaminant  or  hazardous  waste  or  similar            substances, material or waste under any Environmental, Health and Safety Requirement.                   “IRS” means the U.S. Internal Revenue Service.                   “Indebtedness” means, with respect to any Person, all Liabilities in respect of: (a) borrowed money;            (b) indebtedness evidenced by bonds, notes, debentures, or similar debt instruments; (c) capitalized lease            obligations;  (d) the  deferred  purchase  price  of  assets,  services  or  securities  (other  than  ordinary  trade            accounts payable); (e) conditional sale or other title retention agreements; (f) all phantom stock obligations            or deferred compensation obligations; (g) the factoring or discounting of accounts receivable; (h) swap or            hedging agreements or arrangements; (i) reimbursement obligations, whether contingent or matured, with            respect to letters of credit, bankers’ acceptances, bank overdrafts, surety bonds, other financial guarantees            and interest rate protection agreements (without duplication of other indebtedness supported or guaranteed            thereby); (j) any change in control Payment; (k) interest, premium, penalties and other amounts owing in            respect of the items described in the foregoing clauses (a) through (j) after giving effect to the Closing; and            (l) all items of the types referred to in clauses (a) through (k) guaranteed in any manner by such Person,            whether or not any of the foregoing would appear on a consolidated balance sheet prepared in accordance            with GAAP.                   “Indemnified  Party”  as  used  in  this  Agreement  shall  mean  a  party  hereto  who  is  entitled  to            indemnification from an Indemnifying Party hereto pursuant to Article VIII.                   “Indemnifying  Party”  as  used  in  this  Agreement  shall  mean  a  party  hereto  who  is  required  to            provide indemnification to an Indemnified Party hereto pursuant to Article VIII.                    “Insurance Department” means, in any jurisdiction, the Governmental Authority primarily charged            with the regulation of the business of insurance in such jurisdiction.                    “Insurance  Regulatory  Agreements  and  Judgments” means  all  written  agreements,  consent            agreements, memorandums of understanding, commitment letters, orders, stipulations, decrees, awards or            judgments entered into between the Selling Companies or any of Selling Companies’ employees and any            applicable Insurance Department or issued by any applicable Insurance Department with respect to the            Business or any of the Selling Companies’ employees that materially restrict the operations of the Business            or  any  of  the  employees  and  remain  in  effect  (collectively,  “Insurance  Regulatory  Agreements  and            Judgments”).                      “Investigation Period” has the meaning set forth in Section 8.4.                   “Key Employees” has the meaning as set forth in Section 5.8(a).              4 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                         “Knowledge”  means (i) the  actual  knowledge or  (ii)  knowledge,  after  due  inquiry a  prudent            individual would reasonably be expected to discover or become aware of in the course of conducting a            reasonable investigation concerning the matter.  Knowledge, when used in the phrases “to the Knowledge            of Sellers” or “to Sellers’ Knowledge” (and similar words or phrases) means the actual knowledge of John            P. Dwyer, Jr. and/or Brian R. Willis as executive officers of Sellers.                     “Law” means any federal, state, provincial, local, municipal, foreign, international or multinational            constitution, law, ordinance, by-law, principle of common law, regulation, rule, statute, or treaty, ruling,            order, judgment, injunction, award, decree, or other requirement.                   “Lease” means any lease or rental contract, license, right to use or installment and conditional sale            agreement and any other contract pertaining to the leasing or use of any real property or personal property,            in each case, together with all amendments, extensions, renewals, modifications, alterations, guaranties and            other changes thereto.                   “Leased Real Property” means all Real Property leased under the Assigned Leases, including all of            the Selling Companies’ interest in any fixtures and improvements attaching thereto or thereunto belonging.                   “Legal  Proceeding”  means  any  claim,  action,  suit,  litigation,  arbitration,  mediation,  hearing,            proceeding or investigation, whether civil, criminal, judicial or investigative, formal or informal, public or            private,  commenced,  brought,  conducted  or  heard  by  or  before  any  Governmental  Authority,  judicial            authority or arbitral panel.                   “Liability”  means  any  direct  or  indirect  Indebtedness,  guaranty,  endorsement,  liability  or            obligation, known or unknown, absolute or contingent, secured or unsecured, matured or unmatured, or            determined  or  determinable,  regardless  of  whether the  same  is  required  to be  accrued  on the  financial            statements of a Person.                   “Lien”  means  any  charge,  claim,  community  property  interest,  equitable  interest,  lien,  option,            pledge, security interest, mortgage, encumbrance, right of way, easement, encroachment, servitude, right            of first option, right of first refusal, right of last refusal or similar restriction, including, any restriction on            use, voting (in the case of any security or equity interest), transfer, receipt of income, or exercise of any            other attribute of Ownership.                   “Loss” means any and all Liabilities, judgments, awards, penalties, fines, sanctions, deficiencies,            assessments,  interest,  losses,  costs,  damages  (including  special,  exemplary,  consequential,  indirect  or            punitive  damages,  lost  profits,  lost  revenues  or  lost  opportunities),  and  fees  and  expenses  (including            reasonable attorneys’ fees and expenses).                   Material Adverse Change (“MAC”) means any change, effect, condition, factor or circumstance            that  is,  or  is  reasonably  likely  to  be,  materially  adverse  to  the  Businesses  in  the  aggregate,  results  of            operations, condition (financial or otherwise), facilities, assets or Liabilities of Selling Companies taken as            a whole;                     “New Plans” has the meaning set forth in Section 5.7(b).                    “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.                    “Ordinary  Course  of  Business”  means,  in  respect  of any  Person,  the  ordinary  course  of  such            Person’s business, as conducted by any such Person in accordance with past practice and in good faith.              5 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                   “Organizational Documents” means (a) with respect to a corporation, the certificate or articles of            incorporation and  bylaws;  (b)  with  respect  to  a  limited  liability  company,  the  certificate  or  articles  of            organization and operating agreement; (c) with respect to a limited partnership, the certificate of formation            and partnership agreement; (d) with respect to any other entity, any charter or similar document adopted or            filed in connection with the creation, formation or organization of such entity; and (e) any amendment to            any of the foregoing.                   “Parties” means Buyer, Selling Companies, ET CO, ET WY, Dwyer and Willis.                   “Payables” has the meaning set forth in Section 1.3(a)(i).                    “Permitted Lien” means as of any relevant time:  (i) Liens for Taxes or governmental assessments,            charges or claims, the payment of which is not yet due; and (ii) statutory Liens of landlords, warehousemen,            mechanics, materialmen and other similar Persons incurred in the Ordinary Course of Business for sums            not yet delinquent; provided, however, that no Lien shall be a Permitted Lien if it interferes with or adversely            affects, individually or in the aggregate, the value, marketability or use of any Purchased Asset.                   “Person” means any individual, corporation, partnership, limited liability company, joint venture,            trust or unincorporated organization or any government or any agency or political subdivision thereof.                   “Personal  Information”  means  any  information  (i)  that  can  be  used  to  distinguish  or  trace  an            individual’s identity, (ii) which is linked or linkable to a specific identified or identifiable natural person            and which does not meet the definition of de-identified as defined by the Health Insurance Portability and            Accountability Act of 1996, (iii) that is collected by Selling Companies, and (iv) which Selling Companies            is required to keep confidential under applicable Law.                   “Plans” means (a) all employee benefit plans as defined in Section 3(3) of ERISA, (b) all other            pension,  retirement,  group  insurance,  severance  pay,  deferred  compensation,  excess  or  supplemental            benefit, vacation, stock, stock option, equity-based compensation, phantom stock, material fringe benefit            and incentive plans, Contracts, schemes, programs, funds, commitments, or arrangements of any kind, and            (c) all other material plans, Contracts, schemes, programs, funds, commitments, or arrangements providing            benefits in the form of money, services, property, or other benefits, whether formal or informal, qualified            or  nonqualified,  funded  or  unfunded,  and  including  any  that have  been  frozen  or  terminated,  to            Representatives.                    “Privacy Laws” means any applicable laws, statutes, rules, regulations, codes, orders, decrees, and            rulings thereunder of any federal, state, regional, county, city, municipal or local government of the United            States that apply to Personal Information.                    “Proprietary  Rights”  means  all  of  the  following,  whether  or  not  registered:  (a)  patents,  patent            applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to            practice); (b) trademarks, service marks, trade dress, trade names and corporate names and registrations,            renewals  and  applications  for  registration  thereof;  (c)  copyrights  and  renewals  and  applications  for            registrations thereof; (d) computer software; (e) trade secrets; and (f) domain names.                   “Purchase Price” has the meaning set forth in Section 2.1.                    “Purchased Assets” has the meaning set forth in Section 1.1.                   “Real Property” means (a) Land; (b) all air, water, mineral, riparian and littoral rights, easements,            hereditaments, appurtenances, development and all division rights, land division and split rights related to              6 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE             the Land, or otherwise, and other real estate interests belonging to, associated with or appurtenant to the            Land; and (c) all improvements, buildings and fixtures located on the Land, and all other on-site structures,            systems, and utilities associated with or utilized in connection with the Land.                   “Representative” means, with respect to any Person, any stockholder, other equity owner, director,            manager, officer, principal, attorney, employee, agent, representative, consultant, independent contractor,            or accountant of such Person.                    “Retained Liabilities” has the meaning set forth in Section 1.3(b).                    “Schedules” means the Schedules referred to in this Agreement.                     “Sellers” has the meaning set forth in the first paragraph of this Agreement.                   “Sellers Indemnified Losses” has the meaning set forth in Section 8.2.                   “Seller Indemnified Parties” has the meaning set forth in Section 8.2.                    “Tax” means any and all federal, state, provincial, local and foreign gross receipts, income, profits,            sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture,            escheats,  employment,  social  security,  excise  and  real  and  personal  property  taxes,  or  any  substitutes            therefor,  or  other  tax  of  any  kind  whatsoever,  whether  computed  on  a  separate,  consolidated,  unitary,            combined or any other basis and shall include (i) all interest, penalties and additions imposed with respect            to such amounts, and (ii) any liability for such amounts as a result of being a member of a consolidated,            combined, unitary or affiliated group or of a contractual obligation to indemnify any other person or any            obligation to indemnify or otherwise succeed to the Tax liability of any other person.                    “Tax Return” means any return, declaration, certification, schedule, report, claim for refund, or            information return or statement filed (or required to be filed) in connection with any Tax.                   “Third Party Claim” as used in this Agreement shall mean any claim of indemnification pursuant            to any Legal Proceeding which is  asserted or threatened by a  party (including, without limitation, any            Governmental Authority), other than the parties hereto, their Affiliates or their successors and permitted            assigns, against any Indemnified Party or to which any Indemnified Party is subject.                   “Title Claim” means any claim under or with respect to any title insurance policy or binder or            guaranteed certificate of title, search, abstract of title or similar item produced by the Selling Companies,            or any settlement, escrow and closing services performed by the Selling Companies in the operation of the            Businesses.                     “Transaction  Documents”  means,  collectively,  this  Agreement  and  the  other  agreements  and            documents referenced in Sections 2.8 and 2.9.                   “Transaction Expenses” means the aggregate amount payable by the Selling Companies (a) to any            professional  advisors  in  connection  with  the  transactions  contemplated  by  this  Agreement,  including            accountant fees, paying agent fees, attorney fees and broker fees, or (b) with respect to any other out-of-           pocket expenses incurred in connection with the transactions contemplated by this Agreement.                   “Transferred Employees” has the meaning set forth in Section 5.7(a).                    “Transition Services Agreement” has the meaning set forth in Sections 2.8(k).               7 | P a g e              

 

DocuSign Envelope ID: 70C8F090-AD7D-4389-882C-37454BD442AE                    “Unassigned Contract” has the meaning set forth in Section 5.12(b).                    “Work in Progress” has the meaning set forth in Section 1.1(a).                    “Working Capital” has the meaning set forth in Section 2.5(a).              8 | P a g eDocument

                                                                                                                                          EXHIBIT 10.20

QUALCOMM INCORPORATED
2016 Long-Term Incentive Plan
Executive Restricted Stock Unit Grant Notice

Qualcomm Incorporated (the “Company”), pursuant to its 2016 Long-Term Incentive Plan (the “Plan”), hereby grants to you, the Participant named below, the number of Restricted Stock Units set forth below, each of which represents the right to receive one (1) share of the Company’s common stock, subject to all of the terms and conditions as set forth in this Executive Restricted Stock Unit Grant Notice (the “Grant Notice”) and the Executive Restricted Stock Unit Agreement (attached hereto) and the Plan1 which are incorporated herein in their entirety.  Capitalized terms not otherwise defined in this Grant Notice or the Executive Restricted Stock Unit Agreement shall have the meaning set forth in the Plan.

Participant:      «Employee»    Grant No.:  «Number»
Emp #:              «ID»    Number of Restricted Stock Units: «Shares_Granted»
Date of Grant:  «Date of Grant»

Vesting Dates:

    Restricted Stock Units Vested    Vesting Date
    «1/3 Shares»    «Vest Date 1»
    «1/3 Shares»    « Vest Date 2»
    «1/3 Shares»    « Vest Date 3»

Additional Terms/Acknowledgments: You must acknowledge, in the form determined by the Company, receipt of, and represent that you have read, understand, accept and agree to the terms and conditions of, this Grant Notice, the Agreement including the Exclusive Consulting Agreement attached to the Agreement and the Plan (including, but not limited to, the binding arbitration provision in Section 3.7 of the Plan).  

Qualcomm Incorporated:

By: 
Steven M. Mollenkopf
Chief Executive Officer
Dated:  «Date»

Attachment:  Executive Restricted Stock Unit Agreement (RSU-EX-A14)

1 A copy of the Plan can be obtained from the Stock Administration website, located on the Company’s internal webpage, or you may request a hard copy from the Stock Administration Department.
        

Qualcomm Incorporated
                                         2016 Long-Term Incentive Plan
                                Executive Restricted Stock Unit Agreement
Qualcomm Incorporated (the “Company”) has granted a number of Restricted Stock Units (this “Award”) with respect to the number of shares of the Company’s common stock (“Stock”) specified in the Executive Restricted Stock Unit Grant Notice (the “Grant Notice”) to you, the Participant named in the Grant Notice pursuant to the terms and conditions set forth in the Grant Notice, this Executive Restricted Stock Unit Agreement and the attachments hereto (together with the Grant Notice, the “Agreement”) and the 2016 Long-Term Incentive Plan (the “Plan”). Capitalized terms that are not explicitly defined in the Grant Notice or this Agreement but are defined in the Plan shall have the same definitions as in the Plan.
The terms and conditions of this Award are as follows:
1.Vesting. 
1.1Service Vesting. Except to the extent that your Restricted Stock Units may vest earlier as provided in the Sections below, your Restricted Stock Units will vest to the extent you are in Service on the applicable Vesting Date(s) specified in the Grant Notice.
1.2Attainment of Normal Retirement Age.  Your Restricted Stock Units will be fully vested upon your attainment of Normal Retirement Age (as defined below).
1.4Death.  If your Service terminates because of your death, the vesting of your Restricted Stock Units shall be accelerated in full effective upon your death. 
1.5Disability.  If your Service terminates because of your Disability, the vesting of your Restricted Stock Units shall be accelerated in full effective as of the date on which your Service terminates due to your Disability.  
1.6Qualified Termination.  If your Service terminates as a result of a Qualified Termination (as defined below) before you attain Normal Retirement Age, then effective as of your Qualified Termination, subject to your execution and non-revocation before the 60th day following your Qualified Termination of a Separation Agreement (as defined in the Severance Plan) and continued compliance with the Confidentiality Agreement (as defined in the Severance Plan) and the Separation Agreement, the vesting of your Restricted Stock Units shall be accelerated effective as of the Qualified Termination with respect to a number of shares of Stock (rounded up to the nearest whole share) equal to the excess of (x) the number of Restricted Stock Units granted herein multiplied by a fraction, the numerator of which is equal to the number of months that have elapsed between the Date of Grant and the earlier of (1) the first anniversary of the Qualified Termination and (2) the final vesting date of the Restricted Stock Units and the denominator of which is the full number of months from the Date of Grant until the final vesting date of the Restricted Stock Units, over (y) the number of Restricted Stock Units (if any) that had vested prior to the Qualified Termination.
1.7CIC Qualified Termination.  If your Service terminates as a result of a CIC Qualified Termination (as defined below) before you attain Normal Retirement Age, then the vesting of your remaining unvested Restricted Stock Units shall be accelerated in full effective as of the date of your CIC Qualified Termination.
1.7Definitions.  For purposes of this Agreement, the following capitalized terms are defined as follows:
        “Cause” has the meaning given such term in the Severance Plan before a Change in Control and the CIC Severance Plan on or after a Change in Control.
    
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        “CIC Qualified Termination” means a Qualified Termination as defined in the CIC Severance Plan.    
        “CIC Severance Plan” means the Qualcomm Incorporated Executive Officer Change in Control Severance Plan, as may be amended from time to time.                
        “Disability” has the meaning given such term in the Severance Plan and CIC Severance Plan.
         “Normal Retirement Age” shall be the later of (1) the date which is six (6) months after the Grant Date or (2) the date on which you have attained age fifty-five (55) and completed at least ten (10) years of consecutive Service.
        “Qualified Termination” means a Qualified Termination as defined in the Severance Plan.
        “Severance Plan” means the Qualcomm Incorporated Executive Officer Severance Plan, as may be amended from time to time.
2.Payment of Your Restricted Stock Units.
2.1Timing of Payment.  
(a)Subject to the other terms of the Plan and this Agreement, any Restricted Stock Units that vest in accordance with Section 1.1 will be paid to you no later than 30 days after the applicable Vesting Date specified in the Grant Notice.
(b)Subject to the other terms of the Plan and this Agreement, any Restricted Stock Units that vest and become nonforfeitable in accordance with Section 1.2 will be paid to you no later than 30 days after the applicable Vesting Date specified in the Grant Notice; provided, however, that payments shall be made pursuant to this Section 2.1(b) following termination of your employment with the Participating Company only if such termination was not for Cause and you (A) execute a general release of claims in a form satisfactory to the Company and that general release becomes irrevocable before the 60th day following your termination of employment, and (B) comply with the requirements contained in the Exclusive Consulting Agreement attached hereto as Attachment 1 (the “Consulting Agreement”).  Notwithstanding the foregoing, in the event you violate any of the provisions contained in the Consulting Agreement, any Restricted Stock Units that became vested pursuant to Section 1.2 shall be immediately forfeited without consideration. In the event that your employment is terminated for Cause, you shall immediately forfeit your right to payment of any Restricted Stock Units following the date of such termination under this Section 2.1(b).
(c)Subject to the other terms of the Plan and this Agreement, any Restricted Stock Units that vest and become nonforfeitable in accordance with Sections 1.3 or 1.4 will be paid to you no later than 30 days after the date your Service terminates.
        (d)    Subject to the other terms of the Plan and this Agreement, any Restricted Stock Units that vest and become nonforfeitable in accordance with Section 1.5 will be paid to you no later than 30 days after the date of your Qualified Termination.
        (e)    Subject to the other terms of the Plan and this Agreement, any Restricted Stock Units that vest and become nonforfeitable in accordance with Section 1.6 will be paid to you no later than 30 days after the date of your CIC Qualified Termination.
2.3Form of Payment.  Your vested Restricted Stock Units shall be paid in whole shares of Stock except as otherwise provided in Section 10.3 of the Plan regarding fractional shares attributable to Dividend Equivalents.
2.Tax Withholding.  You acknowledge that the Company and/or the Participating Company that employs you (the “Employer”) may be subject to withholding tax obligations arising by reason of the vesting and/or payment of this Award.  You authorize your 
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Employer to satisfy the withholding tax obligations by one or a combination of the following methods, as selected by the Company in its sole discretion:  (a) withholding from your pay and any other amounts payable to you; (b) withholding of Stock and/or cash from the payment of this Award; (c) arranging for the sale of shares of Stock payable in connection with this Award (on your behalf and at your direction which you authorize by accepting this Award); or (d) any other method allowed by the Plan or applicable law.  Notwithstanding the foregoing, you may elect in the manner specified by the Company to make a cash payment to the Company or your Employer to satisfy the withholding tax obligations with respect to this Award, provided such election is made during an open trading window under the Qualcomm Insider Trading Policy and you are not in possession of any material nonpublic information at the time of such election.  If your Employer satisfies the withholding obligations by withholding a number of whole shares of Stock as described in subsection (b) herein, you will be deemed to have been issued the full number of shares of Stock subject to this Award, notwithstanding that a number of shares is held back in order to satisfy the withholding obligations.  The “Fair Market Value” of any Stock withheld pursuant to this Section 2.3 shall be equal to the closing price of a share of Stock as quoted on any national or regional securities exchange or market system constituting the primary market for the Stock on the date of determination (or, if there is no closing price on that day, the last trading day prior to that day) or, if the Stock is not listed on a national or regional securities exchange or market system, the value of a share of Stock as determined by the Committee in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse.  The Company shall not be required to issue any shares of Stock pursuant to this Agreement unless and until the withholding obligations are satisfied.
3.Tax Advice.  You represent, warrant and acknowledge that the Company and, if different, your Employer, has made no warranties or representations to you with respect to the income tax consequences of the transactions contemplated by this Award, and you are in no manner relying on the Company, your Employer or their representatives for an assessment of such tax consequences.  YOU UNDERSTAND THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  YOU SHOULD CONSULT YOUR OWN TAX ADVISOR REGARDING THE TAX TREATMENT OF THIS OR ANY OTHER AWARD.  NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.
4.Dividend Equivalents.  If the Board declares a cash dividend on the Company’s Stock, you will be entitled to Dividend Equivalents in the form, payable on the terms and at such times as provided in Section 10.3 of the Plan.
5.Securities Law Compliance.  Notwithstanding anything to the contrary contained herein, no shares of Stock will be issued to you upon vesting or payment of this Award unless the Stock is then registered under the Securities Act or, if such Stock is not then so registered, the Company has determined that such vesting and issuance would be exempt from the registration requirements of the Securities Act.  By accepting this Award, you agree not to sell any of the shares of Stock received under this Award at a time when applicable laws or Company policies prohibit a sale.
6.Transferability.  Prior to the issuance of shares of Stock in payment of all Restricted Stock Units, your Restricted Stock Units shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by your creditors or by your beneficiary, except (a) transfer by will or by the laws of descent and distribution or (b) transfer by written designation of a beneficiary, in a form acceptable to the Company, with such designation taking effect upon your death.  All rights with respect to your Restricted Stock Units shall be exercisable during your lifetime only by you or your guardian or legal representative.  Prior to actual payment of any Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.
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7.Award Not a Service Contract.  This Award is not an employment or service contract and nothing in this Agreement, the Grant Notice or the Plan shall be deemed to create in any way whatsoever any obligation on your part to continue in the Service of a Participating Company, or of a Participating Company to continue your Service with the Participating Company.  In addition, nothing in this Award shall obligate the Company, its stockholders, Board, Officers or Employees to continue any relationship which you might have as a Director or Consultant for the Company.
8.Restrictive Legend.  Stock issued pursuant to the vesting and payment this Award may be subject to such restrictions upon the sale, pledge or other transfer of the Stock as the Company and the Company’s counsel deem necessary under applicable law or pursuant to this Agreement.
9.Representations, Warranties, Covenants, and Acknowledgments. You hereby agree that in the event the Company and the Company’s counsel deem it necessary or advisable in the exercise of their discretion, the transfer or issuance of the shares of Stock issued pursuant to this Award may be conditioned upon you making certain representations, warranties, and acknowledgments relating to compliance with applicable securities laws.
10.Voting and Other Rights.  Subject to the terms of this Agreement, you shall not have any voting rights or any other rights and privileges of a shareholder of the Company unless and until shares of Stock are issued upon payment of this Award.
11.Code Section 409A.  It is the intent that the terms relating to the vesting and payment of the Award as set forth in this Agreement shall qualify for exemption from or comply with the requirements of Section 409A of the Code, and any ambiguities herein will be interpreted to so qualify or comply.  Notwithstanding the foregoing or anything herein to the contrary, if it is determined that this Award fails to satisfy the requirements of the “short-term deferral” exemption and is otherwise deferred compensation subject to Section 409A of the Code, and if you are a “specified employee” (as defined under Section 409A(a)(2)(B)(i) of the Code) as of the date of your “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h)), then the issuance of any shares of Stock that would otherwise be made upon the date of the separation from service or within the first six (6) months thereafter will not be made on the originally scheduled date and will instead be issued in a lump sum on the date that is six (6) months and one day after the date of the separation from service, but only if such delay in the issuance of the shares is necessary to avoid the imposition of additional taxation on you in respect of the shares under Section 409A of the Code.  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all payments provided for under this Agreement are made in a manner that qualifies for exemption from or complies with Section 409A of the Code; provided, however, that the Company makes no representation that the vesting or payments pursuant to this Award provided for under this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to the vesting or payments pursuant to this Award or require that any vesting or payments pursuant to this Award comply with the require Section of 409A of the Code. The Company will have no liability to you or any other party if the Award, the delivery of shares of Stock upon payment of the Award or other payment hereunder that is intended to be exempt from, or compliant with, Code Section 409A, is not so exempt or compliant or for any action taken by the Company with respect thereto.
12.Notices.  Any notices provided for in this Agreement, the Grant Notice or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.
13.Nature of Grant.  In accepting the Award, you acknowledge and agree that:
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(a)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, (subject to any limitations set forth in the Plan);
(b)the Award is voluntary and occasional and does not create any contractual or other right to receive future awards, or benefits in lieu of awards, even if other awards have been awarded repeatedly in the past;
(c)all decisions with respect to future Awards, if any, will be at the sole discretion of the Company;
(d)your participation in the Plan is voluntary;
(e)the Award and the shares of Stock subject to the Award are not intended to replace any pension rights or compensation; 
(f)the Award and the shares of Stock subject to the Award are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any Participating Company;
(g)the future value of the underlying shares of Stock is unknown and cannot be predicted with any certainty; 
(h)no claim or entitlement to compensation or damages shall arise from forfeiture of your Award resulting from termination of your employment or Service or your breach of any terms hereof (for any reason whatsoever and whether or not in breach of local labor laws or later found invalid), and in consideration of the grant of the Award to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the Company, waive your ability, if any, to bring any such claim, and release the Company from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claim;
(i)the Award and the benefits evidenced by this Agreement do not create any entitlement, not otherwise specifically provided for in the Plan or provided by the Company in its discretion, to have the Award or any such benefits transferred to, or assumed by, another company, nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Company’s Stock; and
(j)the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying shares of Stock; you are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
14.Applicable Law.  This Agreement shall be governed by the laws of the State of California as if the Agreement were between California residents and as if it were entered into and to be performed entirely within the State of California.
15.Arbitration.  Any dispute or claim concerning any Restricted Stock Units granted (or not granted) pursuant to the Plan and any other disputes or claims relating to or arising out of this Agreement or the Plan shall be fully, finally and exclusively resolved by binding arbitration conducted by the American Arbitration Association pursuant to the commercial arbitration rules 
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in San Diego, California.  By accepting this Award, you and the Company waive your respective rights to have any such disputes or claims tried by a judge or jury.
16.Amendment.  Your Award may be amended as provided in the Plan at any time, provided no such amendment may adversely affect this Award without your consent unless such amendment is necessary to comply with any applicable law or government regulation, or is contemplated in Section 11 hereof.  No amendment or addition to this Agreement shall be effective unless in writing or in such electronic form as may be designated by the Company.
17.Governing Plan Document.  This Award is subject to this Agreement, the Grant Notice and all the provisions of the Plan, the provisions of which are hereby made a part of this Agreement, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of this Agreement, the Grant Notice and those of the Plan, the provisions of the Plan shall control.
18.Severability.  If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the extent possible.  In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the full extent possible.
19.Description of Electronic Delivery.  The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to you electronically.  In addition, if permitted by the Company, you may electronically accept and acknowledge the Grant Notice and/or this Agreement and/or deliver such documents to the Company or to such third party involved in administering the Plan as the Company may designate from time to time.  Such means of electronic acknowledgement, acceptance and/or delivery may include but do not necessarily include use of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via electronic mail (“e-mail”) or such other means specified by the Company.  You hereby consent to receive the above-listed documents by electronic delivery and, if permitted by the Company, agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company, as set forth herein.
20.Waiver.  The waiver by the Company with respect to your (or any other Participant’s) compliance of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of such party of a provision of this Agreement.
21.Repayment/Forfeiture.  Any benefits you may receive hereunder shall be subject to repayment or forfeiture as may be required to comply with (a) any applicable listing standards of a national securities exchange adopted in accordance with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations of the U.S. Securities and Exchange Commission adopted thereunder, (b) similar rules under the laws of any other jurisdiction, (c) the Qualcomm Incorporated Incentive Compensation Repayment Policy, a copy of which is attached hereto as Attachment 2, and (d) any other policies adopted by the Company, all to the extent determined by the Company in its discretion to be applicable to you.

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Attachment 1

QUALCOMM INCORPORATED 
                                       EXCLUSIVE CONSULTING AGREEMENT
1.Consulting Services Following Normal Retirement Age.  In the event you terminate your employment with the Participating Companies and receive or are entitled to receive additional vesting, payments or other rights or benefits under the Award to which this Exclusive Consulting Agreement is attached as a result of having previously attained Normal Retirement Age, you will provide the Company consulting services related to the subject matter of that employment as provided in this Exclusive Consulting Agreement.  Such consulting services will not exceed five (5) hours per month, and there will be no separate compensation for such services beyond that provided in the Award.  Should the Company request services in excess of five (5) hours per month, you and Company will negotiate appropriate compensation for such additional services before they are undertaken.  You represent, warrant and covenant that you will perform any services under this Exclusive Consulting Agreement in a timely, professional and workmanlike manner and that all services, materials, information and deliverables provided by you hereunder will comply with (i) the requirements communicated by Company, (ii) the Company’s policies and procedures; and (iii) any other agreements between you and the Company, including but not limited to any severance, confidentiality or proprietary agreements.  All capitalized terms in this Exclusive Consulting Agreement not otherwise defined herein shall have the meaning prescribed by the Qualcomm Incorporated 2016 Long-Term Incentive Plan (the “Plan”) or the Award thereunder to which this Exclusive Consulting Agreement is attached.  
2.The Award.  You are a former high-level executive with at least 10 years’ service with the Company and as such you are entitled to additional vesting, payments or other rights or benefits under the Award as a result of having reached Normal Retirement Age.  Your agreement to the terms and conditions of this Exclusive Consulting Agreement is an express condition of the Award and the additional provisions of the Award applicable to you following attainment of Normal Retirement Age.  
3.Independent Contractor Relationship.  Your relationship with Company under this Exclusive Consulting Agreement is that of an independent contractor, and nothing herein is intended to, or shall be construed to, create a partnership, agency, joint venture, employment, or similar relationship.  You will not be entitled to any of the benefits that Company may make available to its employees, including, but not limited to, group health or life insurance, profit-sharing benefits, or retirement benefits, or awards under the Plan unless expressly provided in writing otherwise.  You agree that providing services under this Exclusive Consulting Agreement shall not be treated as Service for purposes of the Plan or the Award.  You are not authorized to make any representation, contract, or commitment on behalf of Company unless specifically requested or authorized in writing to do so by a Company officer.  You are solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state, or local tax authority.  You will indemnify and hold harmless Company from and against any and all tax liability related to this Exclusive Consulting Agreement as well as any claims, actions, or charges arising out of or caused by your classification as an independent contractor.
4.Exclusivity.
4.1The consultancy arrangement contemplated by this Exclusive Consulting Agreement shall be on an exclusive basis.  You shall not, during the Term, without the prior written consent of the Compensation Committee, engage in any work, services, or other activities 

        

for any person or entity which directly or indirectly competes with Company in any way.  This includes, but is not limited to acting as an employee, officer, director, contractor, owner, consultant, or agent of any such person or entity.  The determination of whether a person or entity is competitive with Company shall be subject to the sole and exclusive discretion of the Compensation Committee.  You shall act in the best interest of Company while providing the Exclusive Consulting Services to Company.  
5.Term and Termination.
5.1Term.  This Exclusive Consulting Agreement is effective as of the date of your termination of employment with Company following Normal Retirement Age and will terminate on the two year anniversary thereof unless terminated earlier as set forth below (the “Term”).
5.2Termination by Company.  Company may terminate this Exclusive Consulting Agreement before the end of the Term for any breach of Section 4 hereof by you or any material breach by you of any other provision hereof.  Should Company believe that you breached this Exclusive Consulting Agreement in a manner that allows a termination pursuant to this Section 5.2, Company will notify you in writing and allow you to cure any breach (if such breach is curable) within ten (10) days after the date of Company’s written notice of breach.  You understand that if Company terminates this Exclusive Consulting Agreement pursuant to this Section 5.2, you will forfeit all additional vesting, payments or other rights or benefits under the Award as a result of having attained Normal Retirement Age and you will be subject to the Equity Clawback provisions of Section 6, below.   
5.3Termination by You.  You may not terminate this Exclusive Consulting Agreement during the Term except or unless Company materially breaches this Consulting Agreement.  Should you believe that Company materially breached this Exclusive Consulting Agreement, you will notify the Company in writing and allow Company to cure any breach (if such breach is curable) within ten (10) days after the date of your written notice of breach. 
6.Equity Clawback.  In the event of any breach by you of Section 4 hereof or any material breach by you of any other provision hereof, then any additional vesting, payments or other rights or benefits you may have as a result of having attained Normal Retirement Age shall automatically and immediately terminate and be forfeited.  In addition, you shall, within 30 days following notice from Company, pay to the Company an amount equal to the aggregate benefit, value or gain you realized or obtained as a result of any additional vesting, payments or other rights or benefits you received under the Award as a result of having attained Normal Retirement Age.

        

Attachment 3

QUALCOMM INCORPORATED
Incentive Compensation Repayment Policy
To the extent permitted by governing law, the Company will require an executive officer to repay to the Company the amount of any cash or equity incentive payment that executive officer receives to the extent that (i) the amount of such payment was based on the achievement of certain financial results that were subsequently the subject of a material restatement that occurs within twelve months of such payment, (ii) the executive officer has engaged in theft, dishonesty or intentional falsification of Company documents or records that resulted in the obligation to restate, and (iii) a lower incentive payment would have been made to the executive officer based upon the restated financial results. 
Notwithstanding anything in this Policy to the contrary, an accounting judgment made in good faith and supported by reasonable interpretations of generally accepted accounting principles (“GAAP”) at the time made shall not be the basis for the Company to require any repayments under this Policy.
The executive officer’s repayment obligation under this Policy shall be in addition to, and shall in no way limit, any other remedies that the Company may have available to it, and any other actions that the Company may take, with respect to the conduct of the executive officer or in connection with the accounting restatement.
For purposes of this Policy, an “executive officer” shall be any current or former member of the Company’s executive committee and any other officers or employees of the Company as may be designated by the Company from time to time. 
The interpretation and enforcement of this Policy shall be the responsibility of the HR and Compensation Committee of the Board of Directors of the Company.
This Policy shall be effective with respect to any cash or equity incentive compensation paid to an executive officer on or after September 17, 2020.

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