Document:

Exhibit 10.40

 

EXECUTION COPY

 

 

 

AGREEMENT AND PLAN OF MERGER 

 

by and among

 

COMSovereign Holding Corp.,

 

CHC Merger Sub 8, LLC,

 

Skyline Partners Technology LLC

 

and

 

The Members’ Representative

Named Herein 

 

Dated as of August 24, 2020

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I THE MERGER AND EFFECT ON EQUITY INTERESTS	1
	 	 
	1.1	The Merger.	1
	1.2	Effective Time; Closing.	2
	1.3	Effect of the Merger.	2
	1.4	Articles of Organization; Operating Agreement.	2
	1.5	Managing Member and Officers of the Surviving Company	2
	1.6	Effect on Skyline Units.	3
	1.7	Payment of Merger Consideration.	3
	 	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF SKYLINE	5
	 	 
	2.1	Organization and Qualification; No Subsidiaries.	5
	2.2	Articles of Organization and Operating Agreement.	5
	2.3	Units of Skyline.	6
	2.4	Authority Relative to this Agreement.	6
	2.5	No Conflict; Required Filings and Consents.	6
	2.6	Financial Statements.	7
	2.7	Compliance; Permits.	8
	2.8	No Undisclosed Liabilities.	8
	2.9	Absence of Certain Changes or Events.	9
	2.10	Absence of Litigation.	10
	2.11	Employee Benefit Plans.	10
	2.12	Labor Matters.	13
	2.13	Restrictions on Business Activities.	14
	2.14	Title to Property.	14
	2.15	Taxes.	14
	2.16	Environmental Matters.	17
	2.17	Intellectual Property.	17
	2.18	Material Agreements.	19
	2.19	Customers and Suppliers.	20
	2.20	Agreements with Regulatory Agencies.	20
	2.21	Related Party Transactions.	20
	2.22	Accounts Receivable.	20
	2.23	Deferred Revenue.	21
	2.24	Insurance.	21
	2.25	Board Approval.	21
	2.26	Member Approval.	21
	2.27	Brokers.	21
	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF CHC	21
	 	 
	3.1	Organization and Qualification; Subsidiaries.	21
	3.2	Capital Stock of CHC.	22
	3.3	Authority Relative to this Agreement.	23
	3.4	Valid Issuance of Shares.	23
	3.5	No Conflict; Required Filings and Consents.	23
	3.6	Reports and Financial Statements.	24
	3.7	Compliance; Permits.	25
	3.8	Absence of Certain Changes or Events	25

 

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	3.9	Absence of Litigation.	27
	3.10	Restrictions on Business Activities.	27
	3.11	Title to Property.	27
	3.12	Material Agreements.	27
	3.13	Agreements with Regulatory Agencies.	27
	3.14	Board Approval.	28
	3.15	Stockholder and Member Votes.	28
	3.16	Brokers.	28
	3.17	Solvency	28
	 	 	 
	ARTICLE IV PRE-CLOSING COVENANTS	28
	 	 
	4.1	Covenants of Skyline and CHC.	28
	4.2	Advice of Changes	30
	4.3	Notice and Cure	30
	4.4	Fulfillment of Conditions	31
	4.5	Access to Information; Confidentiality.	31
	4.6	Regulatory and Other Approvals; Further Assurances.	31
	4.8	Stockholder or Member Litigation.	32
	4.9	Public Announcements.	32
	4.10	Notice of Certain Events.	32
	4.11	Tax Matters.	32
	4.12	Transfer Taxes.	35
	4.13	Employees and Consultants.	35
	 	 	 
	ARTICLE V CONDITIONS	35
	 	 
	5.1	Conditions to Each Party’s Obligation to Effect the Merger.	35
	5.2	Conditions to Obligation of CHC to Effect the Merger.	36
	5.3	Conditions to Obligation of Skyline to Effect the Merger.	36
	 	 	 
	ARTICLE VI TERMINATION	37
	 	 
	6.1	Termination.	37
	6.2	Effect of Termination.	38
	 	 	 
	ARTICLE VII INDEMNIFICATION; MEMBERS’ REPRESENTATIVE; EQUITABLE RELIEF	38
	 	 
	7.1	Survival.	38
	7.2	General Indemnification Obligations.	39
	7.3	Exclusive Remedy.	39
	7.4	Limitations on Liability and Indemnification Payments.	40
	7.5	Procedures.	41
	7.6	Members’ Representative.	45
	7.7	Treatment of Indemnity Payments	47
	 	 	 
	ARTICLE VIII COVENANTS	47
	 	 
	8.1	Expenses.	47
	8.2	Stockholder or Member Litigation.	47
	8.3	Public Announcements	47
	8.4	PPP Loan.	47

 

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	ARTICLE IX DEFINED TERMS	47
	 	 
	9.1	Definitions.	47
	 	 	 
	ARTICLE X GENERAL PROVISIONS	53
	 	 
	10.1	Limited Survival of Representations and Warranties.	53
	10.2	Notices.	54
	10.3	Interpretation.	55
	10.4	Counterparts.	56
	10.5	Entire Agreement; Third-Party Beneficiaries.	56
	10.6	Amendment.	56
	10.7	Waiver.	56
	10.8	Severability.	56
	10.9	Governing Law; Dispute Resolution.	57
	10.10	Specific Performance.	57
	10.11	Rules of Construction.	57
	10.11	Assignment.	57
	10.12	WAIVER OF JURY TRIAL.	57
	10.13	Limitation on Damages.	57
	10.14	Attorney-Client Privilege.	58
	10.15	Company Counsel.	58

 

Schedules:

Schedule I – Index to certain defined
terms

Skyline Disclosure Letter

CHC Disclosure Letter

 

Exhibits:

		A	Form of Articles of Merger

		B	Form of CHC Term Debenture

		C	Form of CHC Convertible Debenture

 

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AGREEMENT AND PLAN OF MERGER 

 

This AGREEMENT AND
PLAN OF MERGER (this “Agreement”) is made and entered into as of August 24, 2020 (the “Agreement Date”),
by and among: COMSovereign Holding Corp., a Nevada corporation (“CHC”), CHC Merger Sub 8, LLC, a Colorado limited
liability company and a wholly-owned subsidiary of CHC (“Merger Sub”), Skyline Partners Technology LLC, a Colorado
limited liability company (“Skyline”), and John Helson, solely in his capacity as the Members’ Representative
(as defined herein) and only for the limited purposes expressly stated herein. CHC, Merger Sub, Skyline and the Members’
Representative may be referred to herein individually as a “Party” and collectively as the “Parties.”
Certain additional capitalized terms that are used in this Agreement are defined in Section ‎9.1. Schedule I provides
an index to certain capitalized terms that are defined in other provisions of this Agreement.

 

RECITALS:

 

A.       CHC,
Merger Sub and Skyline wish to effect a business combination through the statutory merger of Merger Sub with and into Skyline,
pursuant to which Skyline would become a wholly-owned Subsidiary of CHC (the “Merger”) on the terms and conditions
set forth in this Agreement and in accordance with the Colorado Limited Liability Company Act (the “CLLCA”).

 

B.       The
Board of Directors of CHC (the “CHC Board”) and the Manager of Merger Sub have each: (i) determined that the
Merger and the other Contemplated Transactions are fair to and in the best interests of each such Person and its stockholders or
members, as the case may by, and (ii) unanimously approved this Agreement, the Merger and the other Contemplated Transactions.

 

C.        The
Manager of Merger Sub has recommended to CHC as the sole member of Merger Sub that CHC adopt and approve this Agreement, the Merger
and the other Contemplated Transactions, and CHC, as the sole member of Merger Sub has so adopted and approved this Agreement,
the Merger and the other Contemplated Transactions.

 

D.       The
Board of Directors of Skyline (the “Skyline Board”) has: (i) determined that the Merger and the other Contemplated
Transactions are fair to and in the best interests of Skyline and its members; (ii) unanimously approved this Agreement, the Merger
and the other Contemplated Transactions; and (iii) determined to recommend that the members of Skyline adopt and approve this Agreement,
the Merger and the other Contemplated Transactions and the requisite members of Skyline have adopted and approved this Agreement,
the Merger and the other Contemplated Transactions.

 

NOW, THEREFORE, in
consideration of the foregoing premises, the mutual covenants, promises and representations set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, the Parties hereby agree
as follows:

 

ARTICLE
I

THE MERGER AND EFFECT ON EQUITY INTERESTS

 

1.1       The
Merger. At the Effective Time and subject to and upon the terms and conditions of this Agreement and the applicable provisions
of the CLLCA, Merger Sub shall be merged with and into Skyline, the separate organizational existence of Merger Sub shall cease
and Skyline shall continue as the surviving entity in the Merger. As a result of the Merger, the outstanding Skyline Units and
membership units of Merger Sub shall be converted or cancelled in the manner provided herein. The organizational existence of Skyline,
with all its purposes, rights, privileges, franchises, powers and objects, shall continue unaffected and unimpaired by the Merger
except as otherwise may be specifically set forth herein. The surviving company of the Merger after the Merger is sometimes referred
to hereinafter as the “Surviving Company”.

 

    

     

    

 

1.2       Effective
Time; Closing. Subject to the provisions of this Agreement, the Parties shall cause the Merger to be consummated by filing
the Articles of Merger in substantially the form attached hereto as Exhibit A (the “Statement of Merger”)
with the Secretary of State of the State of Colorado in accordance with the relevant provisions of the CLLCA. The Statement of
Merger shall be duly executed by Skyline and Merger Sub and, concurrently with or as soon as practicable following the Closing,
delivered to the Secretary of State of the State of Colorado for filing. The Merger shall become effective upon the filing of the
Statement of Merger with the Secretary of State of the State of Colorado or at such later time as Skyline and Merger Sub agree
and specify in the Statement of Merger (the “Effective Time”). The closing of the Merger and the other Contemplated
Transactions (the “Closing”) shall take place remotely and electronically at a time and date to be specified
by the parties hereto, which time and date shall be no later than the third (3rd) Business Day after the satisfaction
or waiver of the conditions set forth in Article V  (other than those conditions that by their nature are to be satisfied
at the Closing, but subject to the satisfaction of or, to the extent permitted hereunder, waiver of all such conditions), unless
this Agreement has been terminated pursuant to its terms, or at such other location, time and date as the parties hereto shall
mutually agree in writing (the date upon which the Closing actually occurs being referred to herein as the “Closing Date”).

 

1.3       Effect
of the Merger. At the Effective Time, the effects of the Merger shall be as provided in this Agreement and the applicable provisions
of the CLLCA.

 

1.4       Articles
of Organization; Operating Agreement. At the Effective Time, the limited liability company agreement of Merger Sub, as in effect
immediately prior to the Effective Time, shall be the limited liability company agreement of the Surviving Company, until thereafter
amended as provided by Law and by the terms of such limited liability company agreement; provided, however, that, as among the
Skyline Members only, (i) all provisions of the Skyline Operating Agreement relating to the allocation of profit and loss and tax
items for Tax periods ending on or before the Closing Date, (ii) the associated distribution, tax audit and enforcement provisions,
both as set forth in the Skyline Operating Agreement immediately prior to Closing, and (iii) provisions related to indemnification
of directors and officers, shall survive as a valid and legally binding agreements (“Members’ Legacy Agreement”).

 

1.5       Managing
Member and Officers of the Surviving Company. At the Effective Time and by virtue of the Merger, CHC shall be the managing
member and Manager of the Surviving Company. The officers of Merger Sub immediately prior to the Effective Time shall be the officers
of the Surviving Company immediately after the Effective Time, each to hold office in accordance with the provisions of the limited
liability company agreement of the Surviving Company.

 

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1.6       Effect
on Skyline Units. Subject to the terms and conditions set forth in this Agreement, at the Effective Time, by virtue of the
Merger, and without any action on the part of the Parties or the holders of any of the following securities, the following shall
occur:

 

(a)       Conversion
of Skyline Units.  At the Effective Time, the Membership Units and Profit Units of Skyline (the “Skyline
Units”) issued and outstanding immediately prior to the Effective Time shall be cancelled and extinguished and automatically
converted into the right to receive, subject to the terms and conditions hereof, collectively, (i) an amount equal to $1,250,000
in cash plus (a) an amount up to $50,000 in respect of expenses previously paid by Skyline related to the Contemplated Transactions
in accordance with Section 1.7(a) and specified in Section 1.7(a)(ii) of the Consideration Spreadsheet, less (b)
the Representative Amount, and less (c) any Funded Indebtedness of Skyline on the Closing Date (such net sum, the “CHC
Cash Consideration”), (ii) $1,500,000 aggregate principal amount of term debentures of CHC which will be dated as of
the Closing Date having the terms and substantially in the form as the form of term debenture annexed hereto as Exhibit B (the
“CHC Term Debentures”), and (iii) $11,150,000 aggregate principal amount of convertible debentures of CHC having
the terms and substantially in the form as the form of convertible debenture annexed hereto as Exhibit C (the “CHC Convertible
Debentures”), which CHC Convertible Debentures shall be convertible by each holder into shares of common stock, par value
$0.0001 per share, of CHC (the “CHC Common Stock”) as set forth in the CHC Convertible Debentures (collectively,
the “Merger Consideration”) and which will be dated as of the Closing Date. The Merger Consideration will be
allocated to the Skyline Members (including, without limitation, Members holding Profit Units in accordance with the spreadsheet
attached hereto as Annex 1.7(a)(i) (the “Consideration Spreadsheet”). For the avoidance of doubt, the
Consideration Spreadsheet, as delivered at the Closing, shall be updated by the Members’ Representative prior to the Closing
Date and shall be conclusive and binding on the Parties and the Skyline Members. For the avoidance of doubt, all right, title and
interest in and to the assets identified in Schedule 1.6(a) (the “Excluded Assets”) shall be for the
account of and benefit of the Skyline Members and to the extent CHC receives payment of any of the Excluded Assets, CHC shall promptly
notify the Members’ Representative of such payment and distribute such cash payment to the Skyline Members, in such amounts
as shall be directed by the Members’ Representative.

 

(b)       Warrants.   At
the Effective Time, all warrants to purchase Skyline Units as listed in Section 2.3(b) of the Skyline Disclosure Letter
(the “Skyline Warrants”) will have been exercised or terminated.

 

(c)       Treatment
of Merger Sub Membership Interests. At the Effective Time, each membership interest of Merger Sub that is issued and outstanding
immediately prior to the Effective Time will constitute one membership interest of the Surviving Company. Such membership interests
shall be the only membership interests of the Surviving Company that are issued and outstanding.

 

1.7       Payment
of Merger Consideration.

 

(a)       Closing
Payments.  At Closing, CHC shall deliver or cause to be delivered to the Skyline Members upon delivery of a letter of
transmittal (i) the CHC Cash Consideration in immediately available funds to the persons, in the amounts and pursuant to the wire
instructions set forth in Section 1.7(a)(i) of the Consideration Spreadsheet, (ii) $1,500,000 aggregate principal amount
of the CHC Term Debentures dated as of the Closing Date and issued in the names and the principal amounts set forth in Section
1.7(a)(i) of the Consideration Spreadsheet, and (iii) $5,575,000 aggregate principal amount of the Convertible Debentures dated
as of the Closing Date and issued in the names and the principal amounts set forth in Section 1.7(a)(i) of the Consideration
Spreadsheet (collectively, the “Closing Consideration”). At the Closing, CHC shall deliver to the Members’
Representative, on behalf of the Skyline Members in the names and percentages set forth in Section 1.7(a)(i) of the Consideration
Spreadsheet, a Convertible Debenture dated as of the Closing Date payable to the Members’ Representative as agent for the
individual Skyline Members in the principal amount of $5,575,000 (the “Escrow Debenture”) which will be otherwise
identical to the Convertible Debentures to be issued to Skyline Members. At the Closing, CHC shall also pay by wire transfer of
immediately available funds to the applicable payees specified on Schedule 1.7(a)(ii) of the Consideration Spreadsheet,
the transaction expenses payable to each such payee as specified on Schedule 1.7(a)(ii) of the Consideration
Spreadsheet; provided, however, that such transaction expenses shall not exceed, when added to the amount included in the determination
of the CHC Cash Consideration pursuant to clause (a)(i) of Section 1.6, $50,000 in the aggregate.

 

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(b)       Within
five (5) Business Days of the termination of the Basic Indemnification Period (the “Settlement Date”), the Members’
Representative shall return for exchange the Escrow Debenture and CHC shall issue and deliver to the Skyline Members in the names
and percentages set forth in Section 1.7(a)(i) of the Consideration Spreadsheet, an aggregate principal amount of Convertible
Debentures, which Convertible Debentures shall be dated the Closing Date and in aggregate equal to $5,575,000 less (i) a
principal amount of Convertible Debentures having a Value equal to the amount of any Losses incurred prior to the Settlement Date
by any CHC Indemnitee that have been definitively determined in accordance with ARTICLE VII, and less (ii) a principal amount
of Convertible Debentures having a Value equal to a reasonable reserve amount (to be determined jointly by CHC and the Members’
Representative in good faith) in respect of any CHC Claims submitted on or prior to the Settlement Date in accordance with ARTICLE
VII (provided that if CHC and the Members’ Representative cannot agree in good faith on a reasonable reserve amount, the
principal amount in this clause (ii) shall equal the aggregate amount claimed by the CHC Indemnitees in all CHC Claim Notices delivered
to the Members’ Representative on or prior to the Settlement Date that CHC and the Members’ Representative have not
resolved as of the Settlement Date).  Thereafter, CHC shall issue to the Skyline Members, within five (5) Business Days following
the date on which any CHC Claim Notice referred to in clause (ii) above is finally resolved, in accordance with Article VII, against
any CHC Indemnitee, an aggregate principal amount of Convertible Debentures, dated the Closing Date, having a Value equal to the
amount of the applicable CHC Claim Notice, such Convertible Debentures to be issued in the names and percentages set forth in Section
1.7(a)(i) of the Consideration Spreadsheet.  

 

(c)       No
Further Ownership Rights in Skyline Units.   All Closing Consideration and the Escrow Debenture issued and delivered
on the Closing Date pursuant to Section 1.7(a)(i) in accordance with the terms hereof shall be deemed to have been issued
at the Effective Time in full satisfaction of all rights pertaining to the Skyline Units outstanding on the Closing Date. From
and after the Effective Time, the transfer books of Skyline shall be closed and there shall be no further registration of transfers
on the transfer books of the Surviving Company of the Skyline Units that were outstanding immediately prior to the Effective Time.

 

(d)       Representative
Amount. At the Closing, CHC shall deposit, or cause to be deposited, with the Members’ Representative, by wire transfer
of immediately available funds to an account designated by the Members’ Representative prior to Closing, $50,000 (the “Representative
Amount”). The Representative Amount shall be used for the purposes set forth in Section 7.5. The Representative
Amount will be deducted from the payments that would otherwise be payable to the Skyline Members on a pro rata basis as shown in
Section 1.7(d) of the Consideration Spreadsheet. To the extent any amount becomes payable out of the Representative Amount
to the Skyline Members pursuant to Section 7, the Members’ Representative shall cause such amount to be paid to the
Skyline Members on a pro rata basis as shown in Section 1.7(d) of the Consideration Spreadsheet.

 

(e)       Withholding
Rights.  Each of the Surviving Company, Merger Sub and CHC shall be entitled to deduct and withhold from the consideration
otherwise payable pursuant to this Agreement to any holder of Skyline Units such amounts as the Surviving Company, Merger Sub or
CHC, as applicable, is required to deduct and withhold pursuant to the applicable rules under the Code, or any provision of state,
local or foreign Tax Law. To the extent that amounts are so withheld or deducted in accordance with the provisions of this Section
‎1.7(e), and are timely paid to
the applicable Governmental Authority in accordance with applicable Law, such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to the holder of the Skyline Units in respect of which such deduction and withholding was
made by the Surviving Company, Merger Sub or CHC, as applicable. Notwithstanding anything in this Agreement to the contrary, in
the event the Surviving Company, Merger Sub or CHC (or any Affiliate thereof) determines that withholding or deduction is required
pursuant to applicable tax Law with respect to any payment required to be made under this Agreement to any holder of Skyline Units,
the paying party shall provide such holder with a written notice of its intent to withhold or deduct from such payment as soon
as reasonably practicable (and, in any case, with sufficient time to allow such holder to prepare and produce any documentation
to eliminate or reduce such withholding or deduction). In connection with the foregoing, the Members’ Representative shall
deliver to CHC prior to the Closing a duly completed and executed IRS Form W-9 from each holder of Skyline Units.

 

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ARTICLE
II

REPRESENTATIONS AND WARRANTIES OF SKYLINE

 

Skyline hereby represents
and warrants to CHC, subject to such exceptions as are specifically disclosed in the disclosure letter supplied by Skyline to CHC,
dated as of the Agreement Date (the “Skyline Disclosure Letter”), as follows:

 

2.1       Organization
and Qualification; No Subsidiaries.

 

(a)       Skyline
is a limited liability company duly organized, validly existing and in good standing under the Laws of Colorado and has the requisite
limited liability company power and authority to own, lease and operate its assets and properties and to carry on its business
as it is now being conducted. Skyline is in possession of all franchises, grants, authorizations, licenses, permits, easements,
consents, certificates, approvals and orders (“Skyline Approvals”) necessary to own, lease and operate the properties
it purports to own, operate or lease and to carry on its business as it is now being conducted, except where the failure to have
such Skyline Approvals would not, individually or in the aggregate, have or reasonably be expected to have a Skyline Material Adverse
Effect. Skyline is duly qualified or licensed as a foreign limited liability company to do business, and is in good standing, in
each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its activities makes such
qualification or licensing necessary, except for such failures to be so duly qualified or licensed and in good standing that would
not, either individually or in the aggregate, have or reasonably be expected to have a Skyline Material Adverse Effect.

 

(b)       No
Subsidiaries. Skyline has no subsidiaries and owns no debt, equity or other similar interest in any other Person. Skyline has
not agreed, nor is Skyline obligated to make, and nor is Skyline bound by, any written, oral or other agreement, contract, sub-contract,
lease, binding understanding, instrument, note, option, warranty, purchase order, license, sub-license, insurance policy, benefit
plan, commitment, or undertaking of any nature, under which it may become obligated to make, any future investment in or capital
contribution to any other Person. Skyline does not directly or indirectly own any equity or similar interest in, or any interest
convertible, exchangeable or exercisable for any equity or similar interest in, any other Person.

 

2.2       Articles
of Organization and Operating Agreement. Skyline has previously furnished or made available to CHC complete and correct copies
of Skyline’s organizational documents (e.g., articles of organization and operating agreement), as amended to date.
Such organizational documents are in full force and effect. Skyline is not in violation of any of the provisions of its organizational
documents in any material respect.

 

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2.3       Units
of Skyline.  

 

(a)       Skyline
Units will be issued and outstanding as of the Closing Date as set forth on Schedule 2.3(a), which Skyline Units are of
the class and are held by the Persons listed on Schedule 2.3(a) of the Skyline Disclosure Letter (the “Skyline
Cap Table”).

 

(b)       Except
as set forth on Schedule 2.3(b) of the Skyline Disclosure Letter or in the Skyline Cap Table, Skyline has no Derivative
Security issued and outstanding, or any other obligation of any type pursuant to which any Person has any right to acquire or receive
any equity interests in Skyline.

 

(c)       All
outstanding Skyline Units have been issued and granted in compliance in all material respects with: (i) all applicable domestic
or foreign statutes, laws, rules, regulations or ordinances (each a “Law”) applicable to the issuance and sale
of securities, and any domestic or foreign judgments, decrees, orders, writs, permits or licenses (each an “Order”)
or otherwise put into effect by or under the authority of any Governmental Entity; and (ii) all requirements set forth in applicable
Contracts, including the Skyline Operating Agreement.

 

(d)       There
are no registration rights and there is no voting trust, proxy, rights plan, antitakeover plan or other agreement or understanding
to which Skyline is a party or by which it is bound with respect to any equity security of any class of Skyline.

 

(e)       The
outstanding Skyline Units are uncertificated.

 

(f)       The
allocation of the Merger Consideration among the Skyline Members in the Consideration Spreadsheet has been approved by the Skyline
Members in accordance with the Skyline Operating Agreement and no Skyline Member has any claim against Skyline in respect of such
allocation.

 

2.4       Authority
Relative to this Agreement. Skyline has all necessary power and authority to execute and deliver this Agreement and all other
Transaction Documents to which it is a party (the “Skyline Transaction Documents”) and to perform its obligations
hereunder and thereunder and, subject to obtaining Skyline Members’ Approval, to consummate the Contemplated Transactions.
The execution and delivery of this Agreement and the Skyline Transaction Documents by Skyline and the consummation by Skyline of
the Contemplated Transactions have been duly and validly authorized by all necessary organizational action on the part of Skyline
and no other organizational proceedings on the part of Skyline are necessary to authorize this Agreement and the Skyline Transaction
Documents or to consummate the transactions so contemplated. This Agreement and the Skyline Transaction Documents have been duly
and validly executed and delivered by Skyline and, assuming the due authorization, execution and delivery by the other parties
thereto, constitute the legal and binding obligation of Skyline, enforceable against Skyline in accordance with their respective
terms, subject to: (i) the effect of bankruptcy, fraudulent conveyance, reorganization, moratorium and other similar laws relating
to or affecting the enforcement of creditor’s rights generally; and (ii) general equitable principles (whether considered
in a proceeding in equity or at law).

 

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2.5       No
Conflict; Required Filings and Consents.

 

(a)       The
execution and delivery of this Agreement and the Skyline Transaction Documents by Skyline do not, and the performance of this Agreement
and the Transaction Documents by Skyline will not: (i) conflict with or violate the organizational documents of Skyline; (ii) subject
to obtaining the consents, approvals, authorizations and permits and making the registrations, filings and notifications set forth
in Section ‎‎2.5‎(a)
of the Skyline Disclosure Letter, conflict with or violate any Law applicable to Skyline or by which its properties are bound or
affected; (iii) except as set forth in Section ‎2.5(a)
of the Skyline Disclosure Letter, result in any breach of or constitute a default (or an event that with notice or lapse of time
or both would become a default) under, or impair Skyline’s rights or alter the rights or obligations of any third party under,
or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on
any of the properties or assets of Skyline pursuant to, any material Contract to which Skyline is a party or by which Skyline or
any of its properties are bound or affected; or (iv) other than as set forth in the provisions of this Agreement or in Section
‎2.3 of the Skyline Disclosure Letter, cause the
acceleration of any vesting of any awards for or rights to Skyline Units or the payment of or the acceleration of payment of any
change in control, severance, bonus or other cash payments or issuance of Skyline Units, except in the case of clauses (ii) and
(iii), to the extent such conflict, violation, breach, default, impairment or other effect would not, individually or in the aggregate,
reasonably be expected to have a Skyline Material Adverse Effect.

 

(b)       The
execution and delivery of this Agreement and the Skyline Transaction Documents by Skyline does not, and the performance of this
Agreement and the Skyline Transaction Documents by Skyline will not, require any consent, approval, authorization or permit of,
or registration, filing with or notification to, any court, federal, state, local or foreign government or political subdivision
thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other
non-governmental regulatory authority or quasi-governmental authority (each, a “Governmental Entity” and, collectively,
“Governmental Entities”), except for: (i) applicable requirements, if any, of the Securities Act of 1933, as
amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and U.S. state securities laws (“Blue Sky Laws”); (ii) the filing and recordation of the Articles of Merger
as required by the CLLCA, as applicable; and (iii) such consents, approvals, authorizations, permits, registrations, filings or
notifications as are set forth in Section 2.5(a) of the Skyline Disclosure Letter or which, if not obtained or made, would
not have a Skyline Material Adverse Effect.

 

(c)       On
the basis of the certificates or acknowledgements executed by the members and the holders of Derivative Securities of Skyline,
to the Knowledge of Skyline, there are not more than 35 holders of Skyline Units or Skyline Derivative Securities that are not
an “accredited investor” as such term is defined under Regulation D promulgated under the Securities Act; provided
that the representation with respect to the holders of the Derivative Securities of Skyline shall only be to the extent that the
issuance of the CHC Term Notes or CHC Convertible Debentures to the holders of Derivative Securities of Skyline is required to
qualify for an exemption from the registration requirements under Section 5 of the Securities Act.

 

2.6       Financial
Statements.

 

(a)       Skyline
is not required to file any reports or documents with the SEC.

 

(b)       The
unaudited interim consolidated financial statements of Skyline as of and for the annual period ending December 31, 2019 and the
quarter ended June 30, 2020, including, in each case, the notes, if any, thereto (collectively, the “Skyline Financial
Statements”) attached Section 2.6 of the Skyline Disclosure Letter: (i) fairly present (subject, in the case of
the unaudited interim financial statements, to normal year-end audit adjustments (which are not expected to be, individually or
in the aggregate, materially adverse to Skyline) and the absence of complete footnotes) in all material respects the financial
position of Skyline as at the respective dates thereof and the results of its operations and cash flows for the respective periods
then ended; and (ii) were compiled from, and are consistent with, the books and records of Skyline, which books and records are
accurate and complete in all material respects.

 

    7

     

    

 

(c)       Skyline
is not a party to, nor does Skyline have any commitment to become a party to, any joint venture, off balance sheet partnership
or any similar Contract (including any Contract or arrangement relating to any transaction or relationship between or among Skyline,
on the one hand, and any unconsolidated Affiliate, including any structured finance, special purpose or limited purpose entity
or Person, on the other hand, or any “off balance sheet arrangements” (as defined in Item 303(a) of Regulation S-K
under the Exchange Act)), where the result, purpose or intended effect of such Contract is to avoid disclosure of any material
transaction involving, or material Liabilities of, Skyline in Skyline’s financial statements.

 

(d)       Skyline
does not currently have outstanding (and will not have outstanding on the Closing Date) any “extensions of credit”
(within the meaning of Section 402 of the Sarbanes-Oxley Act of 2002 (including the rules and regulations promulgated thereunder,
the “Sarbanes-Oxley Act”)) to directors or executive officers (as defined in Rule 3b-7 under the Exchange
Act) of Skyline.

 

2.7       Compliance;
Permits.

 

(a)       Except
as set forth in Section ‎2.7(a) of the Skyline
Disclosure Letter, Skyline is not in conflict with, or in default or violation of: (i) any Law or Order applicable to Skyline,
or by which any of its respective properties is bound or affected; or (ii) any Contract to which Skyline is a party or by which
Skyline or any of its respective properties is bound or affected, except for any conflicts, defaults or violations of such Laws,
Orders or Contracts that (individually or in the aggregate) would not have or reasonably be expected to have a Skyline Material
Adverse Effect. No Governmental Entity has indicated in writing to Skyline an intention to conduct an investigation or review against
Skyline, and, to the Knowledge of Skyline, no investigation or review by any Governmental Entity is pending or threatened against
Skyline.

 

(b)       Skyline
holds all permits, licenses, variances, exemptions, orders and approvals from Governmental Entities which are material to operation
of the business of Skyline as currently conducted (collectively, the “Skyline Permits”). To the Knowledge of
Skyline, Skyline is in compliance in all material respects with the terms of each of the Skyline Permits applicable to it.

 

2.8       No
Undisclosed Liabilities. Except for matters reflected or reserved against in the balance sheet as of June 30, 2020 included
in the Skyline Financial Statements or as disclosed in Section ‎2.8 of the Skyline
Disclosure Letter or with respect to fees and expenses of third parties engaged in connection with the Merger and the transactions
contemplated by this Agreement, Skyline has not at such date, and has not incurred since such date, any Liabilities, except Liabilities
or obligations which were incurred in the Ordinary Course of Business consistent with past practice (none of which is a Liability
for breach of contract, breach of warranty, tort, infringement or a Legal Action for environmental Liability), or Liabilities which,
in the aggregate would not be reasonably expected to have an aggregate obligation amount in excess of $100,000.

 

    8

     

    

 

2.9       Absence
of Certain Changes or Events. Since June 30, 2020, except as described in Section ‎2.9
of the Skyline Disclosure Letter or pursuant to this Agreement, Skyline has not:

 

(a)       sold
or transferred (including licensed) or otherwise disposed of any material portion of its assets or properties that would be material
to Skyline, except for sales or transfers in the Ordinary Course of Business consistent with past practice;

 

(b)       suffered
any material loss, or any material interruption in use, of any material assets or property on account of fire, flood, riot, strike
or other hazard or act of God that is not covered by insurance;

 

(c)       suffered
any change to its businesses, other than in the Ordinary Course of Business consistent with past practice, which has had, or would
reasonably be expected to have, a Skyline Material Adverse Effect;

 

(d)       entered
into any Contract that would constitute a Skyline Material Agreement, other than in the Ordinary Course of Business consistent
with past practice;

 

(e)       terminated
or materially modified, waived any material right under or cancelled any Skyline Material Agreement or waived any material right
with respect to any of the items disclosed in Section ‎2.18
of the Skyline Disclosure Letter;

 

(f)       incurred
any Liens on any material assets or property, or any losses, damages, deficiencies, Liabilities, except for Liabilities incurred
in the Ordinary Course of Business consistent with past practice which are not material to its businesses;

 

(g)       granted
any registration rights with respect to any of its securities;

 

(h)       paid
or declared any dividends or other distributions on its equity securities of any class or issued, purchased or redeemed any of
its equity securities of any class;

 

(i)       transferred,
assigned or granted any license or sublicense of any material rights under, or with respect to, items disclosed in Section ‎2.17
of the Skyline Disclosure Letter, other than in the Ordinary Course of Business consistent with past practice;

 

(j)       made
any material capital expenditures;

 

(k)       split,
combined or reclassified any units of its equity securities;

 

(l)       made
any capital investment in, or any loan to, any other Person;

 

(m)       amended
any of its organizational or constituent documents;

 

(n)       paid
any bonuses to, or materially increased any bonuses, salaries, or other compensation to, any director, officer, or employee except
in the Ordinary Course of Business consistent with past practice;

 

(o)       made
any payments to any Related Party other than as described in Section  ‎2.21
of the Skyline Disclosure Letter and other than wages and benefits that are in the ordinary course and consistent with past practice.

 

(p)       adopted,
modified or increased payments or benefits to any Person other than for regular annual raises that are consistent with past practices;

 

    9

     

    

 

(q)       entered
into, terminated, or received notice of termination of any (a) license, distributorship, dealer, sales representative, joint venture,
credit or similar agreement, or (b) Contract or transaction involving a total remaining commitment of at least $100,000;

 

(r)       materially
changed any accounting method, assumption or period, made, changed or revoked any material Tax election, filed an income or other
material Tax Return in a jurisdiction in which a Tax Return was not previously filed, failed to file any income or other material
Tax Return when due (taking into account extensions of time to file), consented to any extension or waiver of the limitations period
applicable to any material Tax claim or assessment, entered into a closing agreement, or settled any administrative or judicial
proceeding related to Taxes;

 

(s)       changed
any of the material terms in any material respect for the license of its products and services;

 

(t)       instituted,
settled or compromised any Legal Actions pending or threatened before any arbitrator, court or other Governmental Entity involving
the payment of monetary damages of any amount exceeding $50,000 in the aggregate; or

 

(u)       agreed
or committed, whether orally or in writing, to do any of the foregoing.

 

2.10 Absence
of Litigation.  Except as otherwise provided in Section ‎2.10 of the
Skyline Disclosure Letter, to the Knowledge of Skyline, there are no Legal Actions pending or threatened against Skyline, or
any properties or rights of Skyline, before any Governmental Entity, including, for the avoidance of doubt, the SEC.

 

2.11       Employee
Benefit Plans.

 

(a)       Employee
Plans.

 

(i)       Other
than those plans, policies or programs required to be maintained by applicable law, Section ‎2.11(a) of the Skyline
Disclosure Letter lists each “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) and all other pension, retirement, supplemental retirement, deferred
compensation, excess benefit, profit sharing, bonus, incentive, stock purchase, stock ownership, stock option, stock appreciation
right, profits interest, employment, severance, salary continuation, termination, change-of-control, health, life, disability,
group insurance, vacation, holiday and fringe benefit plan, program, contract, or arrangement (whether written or unwritten, qualified
or nonqualified, funded or unfunded and including any that have been frozen or terminated) maintained, contributed to, or required
to be contributed to, by:

 

(A)       Skyline;
or

 

(B)       any
trade or business (whether or not incorporated) which is a member of a controlled group or which is under common control with Skyline
within the meaning of Sections 414(b), 414(c), 414(m) or 414(o) of the Code (a “Skyline ERISA Affiliate”), under
which Skyline or any Skyline ERISA Affiliate has any Liability with respect to any current or former employee, director, officer
or independent contractor of Skyline (the “Skyline Plans”).

 

    10

     

    

 

(ii)       To
Skyline’s Knowledge, Skyline has made available to CHC, as applicable:

 

(A)       correct
and complete copies of all documents embodying each Skyline Plan including (without limitation) all amendments thereto, all related
trust documents, and all material written agreements and contracts relating to each such Skyline Plan (or, in the case of any unwritten
Skyline Plan, a written summary of the material provisions of such plan or agreement);

 

(B)       the
three (3) most recent annual reports (Form Series 5500 and all schedules and financial statements attached thereto), if any, required
under ERISA or the Code in connection with each Skyline Plan;

 

(C)       the
most recent summary plan description together with the summary(ies) of material modifications thereto, if any, required under ERISA
with respect to each Skyline Plan;

 

(D)       all
IRS determination, opinion, notification and advisory letters;

 

(E)       all
material correspondence to or from any Governmental Entity relating to any Skyline Plan;

 

(F)       to
the extent available, all discrimination tests for each Skyline Plan for the most recent three (3) plan years;

 

(G)       the
most recent annual actuarial valuations and/or periodic accounting, if any, prepared for each Skyline Plan;

 

(H)       all
material written agreements and contracts relating to each Skyline Plan, including, but not limited to, administrative service
agreements, group annuity contracts and group insurance contracts;

 

(I)       all
material communications generally distributed to all employees or former employees within the last three (3) years relating to
any amendments, terminations, establishments, increases or decreases in benefits, acceleration of payments or vesting schedules
or other events which would result in any material Liability under any Skyline Plan or proposed Skyline Plan; and

 

(J)       all
policies pertaining to fiduciary liability insurance covering the fiduciaries for each Skyline Plan.

 

(b)       To
Skyline’s Knowledge, each member of Skyline and each Skyline ERISA Affiliate is in compliance in all material respects with
the provisions of ERISA, the Code and all statutes, orders, rules and regulations (foreign or domestic) applicable to the Skyline
Plans. To Skyline’s Knowledge, each Skyline Plan is and has been maintained, operated and administered in compliance in all
material respects with its terms and any related documents or agreements and the applicable provisions of ERISA, the Code and all
statutes, orders, rules and regulations (foreign or domestic) which are applicable to such Skyline Plans.

 

    11

     

    

 

(c)       No
Legal Action (excluding individual claims for benefits incurred in the normal operation of each Skyline Plan) has been brought,
or, to the Knowledge of Skyline, is threatened, against or with respect to any such Skyline Plan. No member of Skyline has received
any correspondence from the IRS or the DOL regarding, and, to the Knowledge of Skyline, there are no audits, enquiries or proceedings
pending or, threatened by the IRS or the DOL with respect to any Skyline Plans. All contributions, reserves or premium payments
required to be made or accrued as of the Closing Date to the Skyline Plans have or will have been timely made or accrued.

 

(d)       Any
Skyline Plan intended to be qualified under Section 401(a) of the Code and each trust intended to qualify under Section 501(a)
of the Code has obtained (or has an outstanding application for or, in the case of a prototype plan, is entitled to rely upon)
a favorable determination, notification, advisory and/or an opinion letter, as applicable, as to its qualified status from the
IRS, and, to the Knowledge of Skyline, nothing has occurred with regard to each such pension plan and the related trusts that could
jeopardize such qualified status and exemption from taxation under Section 501(a) of the Code. Skyline does not have any plan or
commitment to establish any new Skyline Plan, to materially modify any Skyline Plan (except to the extent required by Law or to
conform any such Skyline Plan to the requirements of any applicable Law, in each case as previously disclosed to CHC in writing,
or as required by this Agreement), or to enter into any new Skyline Plan.

 

(e)       No
Skyline Plan is now or at any time has been subject to Part 3, Subtitle B of Title I of ERISA or Title IV of ERISA. Neither Skyline
nor any Skyline ERISA Affiliate has ever contributed to or been required to contribute to any “multiemployer plan”
(within the meaning of Section 3(37) of ERISA) and neither Skyline nor any Skyline ERISA Affiliate has any Liability (contingent
or otherwise) relating to the withdrawal or partial withdrawal from a multiemployer plan. Skyline is not subject to any Liability
or penalty under Section 4975 through 4980B of the Code or Title I of ERISA (other than routine claims for benefits under any Skyline
Plan). No “prohibited transaction,” within the meaning of Section 4975 of the Code or Sections 406 and 407 of ERISA,
and not otherwise exempt under Section 408 of ERISA, has occurred with respect to any Skyline Plan that would reasonably be expected
to impose a material Liability on Skyline.

 

(f)       Skyline
does not have and is not required to have any International Employee Plans.

 

(g)       Skyline
and, to the Knowledge of Skyline, each Skyline ERISA Affiliate have complied in all material respects with the notice and continuation
coverage requirements of Section 4980B of the Code and the regulations thereunder (“COBRA”). None of the Skyline
Plans promises or provides retiree medical or other retiree welfare benefits to any Person except as required by applicable Law,
and Skyline has not represented, promised or contracted (whether in oral or written form) to provide such retiree benefits to any
employee, former employee, director, consultant or other Person, except to the extent required by Law.

 

(h)       Except
as set forth in Section ‎2.11(h) of the Skyline
Disclosure Letter or in this Agreement, neither the execution and delivery of this Agreement or the Skyline Transaction Documents
nor the consummation of the Contemplated Transactions, solely by themselves, will: (i) result in any payment (including severance,
unemployment compensation, golden parachute, bonus or otherwise) becoming due to any member, director or employee of Skyline under
any Skyline Plan or otherwise; (ii) increase any benefits otherwise payable by Skyline to any employee or service provider; (iii)
limit the right to merge, amend or terminate any Skyline Plan; or (iv) result in the acceleration of the time of payment or vesting
of any such benefits.

 

    12

     

    

 

(i)       No
payment or benefit that will or may be made by Skyline or its ERISA Affiliates with respect to any employee, former employee, director,
officer or independent contractor of Skyline under an arrangement existing prior to the Closing, either alone or in conjunction
with any other payment, event or occurrence, (X) will or would reasonably be characterized as an “excess parachute payment”
under Section 280G of the Code as a result of the transactions contemplated by this Agreement or (Y) will not be fully deductible
as a result of Section 162(m) of the Code as a result of circumstances existing prior to the Closing. There is no Contract to which
Skyline is a party or by which it is bound to compensate any individual for excise taxes paid pursuant to Section 4999 of the Code.

 

(j)       Section
‎2.11(j) of the Skyline Disclosure Letter sets forth
the name, title (or job description) and current annual salary of all employees of Skyline.

 

(k)       Except
as would not reasonably be expected to result in a material liability to Skyline, each Skyline Plan that constitutes a “non-qualified
deferred compensation plan” within the meaning of Section 409A of the Code complies in both form and operation with the requirements
of Section 409A of the Code so that no amounts paid pursuant to any such Skyline Plan is subject to tax under Section 409A of the
Code.

 

(l)       Skyline
and each Skyline ERISA Affiliate has, for purposes of each Skyline Plan, correctly classified all individuals performing services
for Skyline as common law employees, leased employees, independent contractors or agents, as applicable.

 

2.12       Labor
Matters.

 

(a)       Skyline
is not a party to any collective bargaining agreement or other labor union contract applicable to Persons employed by Skyline nor
does Skyline know of any activities or proceedings of any labor union to organize any such employees. Skyline does not have any
Knowledge of any strikes, slowdowns, work stoppages or lockouts, or threats thereof, by or with respect to any employees of Skyline.

 

(b)       Except
as disclosed in Section ‎2.12(b) of the Skyline
Disclosure Letter, during the past three (3) years: (i) Skyline is and has been in material compliance with all applicable Laws
with respect to labor and employment, including, without limitation, Laws with respect to fair employment practices, discrimination,
immigration and naturalization, retaliation, work place safety and health, unemployment compensation, workers’ compensation,
affirmative action, terms and conditions of employment and wages and hours; (ii) to the Knowledge of Skyline, there have been no
Legal Actions pending before any Governmental Entity, or threats thereof with respect to labor and employment matters, including
Legal Actions between Skyline (on the one hand) and any of the current or former employees or current or former workers of Skyline
(on the other hand); (iii) there have been no written notices of charges of discrimination in employment or employment practices
for any reason or noncompliance with any other Law with respect to labor or employment that have been asserted, or, to the Knowledge
of Skyline, overt threats thereof, before the United States Equal Employment Opportunity Commission or any other Governmental Entity;
(iv) Skyline has not been a party to, or otherwise bound by, any consent decree or settlement agreement with, or citation by, any
Governmental Entity relating to the current or former employees or employment practices; and (v) to the Knowledge of Skyline, Skyline
has not been subject to any audit or investigation by the Occupational Safety and Health Administration, the DOL, or other Governmental
Entity with respect to labor or employment Laws or with respect to the employees of Skyline, or subject to fines, penalties, or
assessments associated with such audits or investigations.

 

    13

     

    

 

(c)       To
the Knowledge of Skyline, all of the employees of Skyline are: (i) United States citizens or lawful permanent residents of the
United States; (ii) aliens whose right to work in the United States is unrestricted; or (iii) aliens who have valid, unexpired
work authorizations issued by the United States government.

 

(d)       To
the Knowledge of Skyline, Skyline has properly treated all individuals performing rendered services to Skyline as employees, leased
employees, independent contractors or agents, as applicable, for all federal, state, local and foreign Tax purposes. Within the
last six (6) years there has been no determination by any Governmental Entity that any service provider treated by Skyline as an
independent contractor should have been treated as an employee of Skyline.

 

2.13       Restrictions
on Business Activities. There is no agreement, commitment, judgment, injunction, order or decree binding upon Skyline or to
which Skyline is a party which has or would reasonably be expected to have the effect, in any material respect, of prohibiting
or impairing any present business practice of Skyline, any acquisition of property by Skyline or the conduct of business by Skyline
as currently conducted.

 

2.14       Title
to Property.

 

(a)       Skyline
owns no real property. Section ‎2.14 of the Skyline
Disclosure Letter identifies by street address all real property leased or subleased by Skyline (the “Skyline Leased Real
Estate”). All Skyline Leased Real Estate is leased or licensed to Skyline pursuant to written leases or Contracts, complete
and accurate copies of which have been previously delivered or made available to CHC (collectively the “Skyline Leases”).
Skyline has a valid leasehold interest in Skyline Leased Real Estate, free and clear of all Liens. Skyline has not subleased any
Skyline Leased Real Estate. Skyline Leased Real Estate is not subject to any third-party licenses, concessions, leases or tenancies
of any kind, except as indicated on Section ‎2.14
of the Skyline Disclosure Letter. Skyline Leases are in full force and effect. To the Knowledge of Skyline, there are no defaults
in any material respect on the part of any landlord, sublandlord, licensor or Skyline under the Skyline Leases. Skyline has performed
in all material respects all of the obligations on its part to be performed under the Skyline Leases. No written consent of any
landlord or sublandlord or any licensor under Skyline Leases is required or necessary in order to consummate the transactions contemplated
by this Agreement and the Skyline Transaction Documents except as otherwise provided in Section ‎2.14
of the Skyline Disclosure Letter.

 

(b)       Skyline
has not received written notice that the use or occupancy of Skyline Leased Real Estate violates in any material respect any covenants,
conditions or restrictions that encumber such property, or that any such property is subject to any restriction for which any material
permits necessary to the current use thereof have not been obtained.

 

(c)       There
are no pending or, to the Knowledge of Skyline, threatened, condemnation proceedings with respect to any material portion of Skyline
Leased Real Estate.

 

2.15       Taxes.
Except as disclosed on Schedule 2.15:

 

(a)       Definition
of Taxes.  For all purposes of and under this Agreement, “Tax” or “Taxes” refers
to any and all federal, state, local and foreign taxes, assessments and other governmental charges, duties and impositions relating
to taxes, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added,
ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes, together with all interest,
penalties, backup withholding and additions imposed with respect to such amounts.

 

    14

     

    

 

(b)       Tax
Returns and Audits. Except as may be disclosed by Skyline in Section ‎2.15
of the Skyline Disclosure Letter:

 

(i)       Skyline
has timely filed all material federal, state, local and foreign returns, declarations, estimates, information statements and reports
(including any schedule or attachment thereto) relating to Taxes (“Tax Returns”) required to be filed by Skyline,
in all the jurisdictions in which it is or was required to file. Such Tax Returns are true and correct in all material respects,
have been completed in all material respects in accordance with applicable Law, and all Taxes shown to be due on such Tax Returns
have been paid.

 

(ii)       Skyline
has delivered or made available to CHC correct and complete copies of all Tax Returns (including extensions thereof), examination
reports, statements of deficiencies assessed against or agreed to by Skyline, and other material correspondence with Taxing authorities
filed or received with respect to periods beginning on or after January 1, 2017. There are no liens for Taxes (other than
Taxes not yet due and payable or the amount or validity of which is being contested in good faith and for which adequate reserves
have been established) upon any assets of Skyline or its stock. All Taxes not yet due and payable have been properly accrued on
the books of Skyline, and adequate reserves have been established therefor; the charges, accruals and reserves for Taxes provided
for on the financial statements delivered to CHC are adequate in all material respects.

 

(iii)       There
is no Tax deficiency outstanding, proposed in a writing delivered to Skyline or assessed against Skyline by a Taxing authority,
nor has Skyline executed any unexpired waiver or extension of any statute of limitations for the assessment, reassessment or collection
of any Tax, and no power of attorney granted by Skyline with respect to any Taxes is currently in force.

 

(iv)       No
Tax audits or other administrative proceedings or court proceedings are presently pending or in progress with regard to any Taxes
or Tax Returns of Skyline.

 

(v)       Skyline
has not been a member of any consolidated, combined or unitary group for federal, state, local or foreign Tax purposes. Skyline
has no liability for Taxes of any Person under Treasury Regulation Section 1.1502-6 (or any corresponding provision of state, local
or foreign Law), as transferee or successor, by contract or otherwise. Skyline has not been a party to any joint venture, partnership
or other arrangement that could be treated as a partnership for federal income Tax purposes (apart from Skyline’s own classification
as a partnership for federal income tax purposes). Skyline has not made an election pursuant to Treasury Regulations Section 301.7701-3
(or any comparable provision of any state, local or foreign Law) to be treated as an association taxable as a corporation for U.S.
federal income tax purposes.

 

(vi)       Skyline
has (i) withheld all Taxes required to be withheld from its employees, agents, contractors and nonresident members and remitted
such amounts to the proper agencies; (ii) paid all required employer contributions and premiums and (iii) filed all Tax Returns
with respect to employee income tax withholdings, Social Security and unemployment taxes and premiums, and other payroll Taxes,
all in compliance with the withholding Tax provisions of applicable Tax laws.

 

    15

     

    

 

(vii)       Skyline
has not entered into any closing agreement which affects any Taxes of Skyline for any taxable year ending after the Closing Date.
Skyline is not a party to any Tax sharing, Tax indemnity, Tax allocation agreement or similar arrangement for the sharing of Tax
liabilities or benefits (other than customary Tax indemnifications contained in credit or other commercial agreements the primary
purpose of which agreements does not relate to Taxes).

 

(viii)       Skyline
has not agreed to, and is not required to, make any adjustment by reason of a change in accounting method that affects any taxable
year ending after the Closing Date (other than changes required by the Merger). No Taxing authority has proposed to Skyline any
such adjustment or change in accounting methods that affects any taxable year ending after the Closing Date. Skyline does not have
any application pending with any Taxing authority requesting permission for any changes in accounting methods that relate to its
business or operations and that affects any taxable year ending after the Closing Date.

 

(ix)       No
asset of Skyline is “tax exempt use property” under Code Section 168(h). No portion of the cost of any asset of Skyline
has been financed directly or indirectly from the proceeds of any tax-exempt state or local government obligation described in
Code Section 103(a).

 

(x)       None
of the assets of Skyline is property that Skyline is required to treat as being owned by any other person pursuant to the safe
harbor lease provision of former Code Section 168(f)(8).

 

(xi)       No
written claim has been made by a Taxing authority that Skyline has not properly paid Taxes or filed Tax Returns in a jurisdiction
in which Skyline does not file a Tax Return.

 

(xii)       In
the past five (5) years, Skyline has not been a party to a transaction that has been reported as a reorganization within the meaning
of Code Section 368 or distributed a corporation (or been distributed) in a transaction that is reported to qualify under Code
Section 355 or Section 356.

 

(xiii)       Skyline
has not engaged in any transaction which is a “listed transaction” within the meaning of Income Tax Regulation Section
1.6011-4(b)(2), or otherwise a “reportable transaction” for purposes of Code Section 6011, that could affect the income
Tax liability for any taxable year not closed by the statute of limitations.

 

(c)       Section
2.9(r), Section 2.11, Section 2.12(d) and this Section 2.15 contain the sole and exclusive representations
and warranties of Skyline relating to Tax Matters, including compliance with and liabilities arising under Tax Laws, and any claim
for breach of representation with respect to Taxes shall be based solely on the representations in Section 2.9(r), Section
2.11, Section 2.12(d) and this Section 2.15 and shall not be based on the representations set forth in any other
provision of this Agreement. CHC shall not be entitled to rely on this Section 2.15 to determine the jurisdiction in which
to file Tax Returns in Post-Closing Tax Periods.

 

    16

     

    

 

2.16       Environmental
Matters.

 

(a)       To
the Knowledge of Skyline, Skyline is in compliance, in all material respects, with all applicable Environmental Laws and Environmental
Permits.

 

(b)       Skyline
is not required to hold any Environmental Permits for the operation of its businesses.

 

(c)       To
the Knowledge of Skyline, there is no Environmental Claim pending or overtly threatened against Skyline nor is there any reasonable
basis for any such claim or any Liability, in each case, under any applicable Environmental Law. 

 

2.17       Intellectual
Property.

 

(a)       Section
‎2.17(a)(i) of the Skyline Disclosure Letter contains
an accurate and complete list of all Skyline Registered Intellectual Property Rights, specifying as to each such Registered Intellectual
Property Right, as applicable: (i) the jurisdictions by or in which such Registered Intellectual Property Right has been issued
or registered or in which an application for such issuance or registration has been filed; (ii) the registration or application
numbers thereof; and (iii) the date the Registered Intellectual Property Right was granted or such application was filed. Section
2.17(ii) contains an accurate and complete list of all Skyline Licensed Intellectual Property Rights, specifying as to each
such Licensed Intellectual Property Right, as applicable: (i) the name and address of the licensor; and (ii) a brief description
of the technology licensed. Section ‎2.17(a)(iii)
of the Skyline Disclosure Letter contains an accurate and complete list of all Skyline Intellectual Property Rights that are material
to the business of Skyline, both owned and licensed. Section ‎2.17(a)
of the Skyline Disclosure Letter contains an accurate and complete list of all material Computer Software that is owned, licensed,
leased or otherwise used in the business of Skyline, excluding (x) commercially available “shrink-wrap” software, and
(y) Computer Software that Skyline receives as “free software,” “open source software” or under a similar
licensing or distribution model. Section ‎2.17(a)
of the Skyline Disclosure Letter lists all material Computer Software and service offerings that have been licensed, sold, distributed
or provided to third parties on or after January 1, 2016 under which Skyline is obligated to provide maintenance or support (collectively,
“Skyline Products”). Skyline does not own or have any interest in any patents or patent applications.

 

(b)       Section
‎2.17(b) of the Skyline Disclosure Letter lists
all License Agreements and Contracts under which Skyline has granted any third-party rights that are exclusive, or exclusive of
all other third parties, to use, sublicense, resell or distribute any Skyline Intellectual Property Right. Section ‎2.17(b)
of the Skyline Disclosure Letter lists any material License Agreements and Contracts under which (x) Skyline has deposited or is
obligated to deposit source code or other proprietary materials in escrow for the benefit of a third party, or (y) a third party
is or under any circumstances may be entitled to receive source code directly from Skyline or from escrow.

 

(c)       Skyline
is not a party to any License Agreements, forbearances to sue, consents, judgments, orders or similar obligations, in each case,
that restrict the rights of Skyline to use or enforce any Skyline Intellectual Property Rights.

 

(d)       Except
as listed in Section ‎2.17(d), Skyline owns all
right, title, and interest, free and clear of all security interests and similar encumbrances, in and to all Skyline Intellectual
Property Rights. Except as listed in Section ‎2.17(d)
of the Skyline Disclosure Letter, Skyline is listed in the records of the appropriate United States, state or foreign agency as
the sole owner for each Skyline Registered Intellectual Property Right.

 

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(e)       To
the Knowledge of Skyline, Skyline’s Licensed Intellectual Property Rights and Skyline Intellectual Property Rights together
constitute all the Intellectual Property Rights necessary to conduct the business of Skyline as currently conducted. To Skyline’s
Knowledge, the conduct of the business of Skyline as such business is currently conducted, including the design, development, marketing
and sale of Skyline Products and services: (i) does not infringe, misappropriate or otherwise violate the Intellectual Property
Rights of any third party; and (ii) does not constitute unfair competition or unfair trade practices under the Laws in the United
States.

 

(f)       Skyline
has not received any written, or, to the Knowledge of Skyline, oral, communications from any third party that claim that the operation
of the business of Skyline, or any act of Skyline, or any Skyline Product or service, or the use of any Skyline Product or service,
infringes, misappropriates or otherwise violates the Intellectual Property Rights of any third party or constitutes unfair competition
or unfair trade practices under the Laws of any jurisdiction. Skyline has not received any written communication from a third party
pursuant to which the third party offered Skyline a license to use any technology or Intellectual Property Rights in order to avoid
a claim of infringement or misappropriation.

 

(g)       Skyline
has not received written notice of, and there is no pending or, to the Knowledge of Skyline, threatened, Legal Action by a third
party before any Governmental Entity in any jurisdiction challenging the ownership, use, validity, enforceability or registrability
of any Skyline Intellectual Property Rights. There is no pending or, to the Knowledge of Skyline, threatened, Legal Action relating
to the business of Skyline before any Governmental Entity in any jurisdiction challenging the ownership, use, validity, enforceability,
or registrability of any of Skyline’s Licensed Intellectual Property Rights or the rights of Skyline to use or exploit any
of Skyline’s Licensed Intellectual Property Rights, in each case, other than as would not be reasonably expected to result
in a Skyline Material Adverse Effect.

 

(h)       To
the Knowledge of Skyline but without investigation by or for Skyline, no Person has infringed, misappropriated, or otherwise violated,
or is infringing, misappropriating, or otherwise violating, any Skyline Intellectual Property Rights. Skyline has not brought any
Legal Action against any third-party alleging infringement, misappropriation or violation of Skyline Intellectual Property Rights
that remain unresolved. Skyline has the sole and exclusive right to bring a Legal Action against a third party for infringement
or violation of Skyline Intellectual Property Rights.

 

(i)       To
the Knowledge of Skyline, Skyline Intellectual Property Rights are subsisting, in full force and effect, have not been cancelled
or abandoned, have not expired, and, with respect to Skyline Registered Intellectual Property Rights only, are valid and enforceable.
To the Knowledge of Skyline, neither Skyline nor any of its officers, employees or agents have knowingly done, or failed to do,
any act or thing which may, after the Effective Time, materially prejudice the validity or enforceability of any Skyline Intellectual
Property Rights. All necessary registration, maintenance and renewal fees in connection with any Skyline Registered Intellectual
Property Rights have been paid and all necessary documents, recordations and certificates in connection with such Skyline Registered
Intellectual Property Rights have been filed with the relevant patent, copyright, trademark or other authorities in the United
States or foreign jurisdictions, as the case may be, for the purposes of maintaining such Skyline Registered Intellectual Property
Rights.

 

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(j)       Skyline
has made commercially reasonable efforts to protect its trade secrets and preserve their status as intellectual property under
applicable Law. Skyline’s practice is to require all employees, contractors and other parties having access to such trade
secrets to execute a proprietary information/confidentiality agreement with Skyline.

 

(k)       Following
the Effective Time, the Surviving Company will be permitted upon its compliance with any notices or similar regulatory requirements
to exercise all of the rights of Skyline under such License Agreements or Contracts to the same extent Skyline would have been
able to had the Contemplated Transactions not occurred and without the payment of additional amounts or consideration other than
ongoing fees, royalties or payments which Skyline would otherwise be required to pay. The consummation of the Merger and the Contemplated
Transactions will not: (i) result in the breach, modification, cancellation, termination, or suspension of any of Skyline’s
License Agreements or any Contract with any customer of Skyline, or give any Person (other than Skyline) or a party to any of Skyline’s
License Agreements or any Contract with any customer of Skyline the right to do any of the foregoing; (ii) give rise to a right
by any third party to obtain, directly from Skyline or from escrow, source code for Computer Software or other proprietary materials
of Skyline; (iii) result in the loss or impairment of Skyline’s ownership of or right to use Skyline Intellectual Property
Rights or Licensed Intellectual Property Rights; or (iv) cause the Surviving Company or any of its Affiliates (x) to be bound by
any non-compete or other restriction on the operation of any business or (y) to grant any rights or licenses to any Intellectual
Property Rights of the Surviving Company or any of its Affiliates to a third party (including, without limitation, a covenant not
to sue).

 

(l)       To
Skyline’s Knowledge, since December 31, 2017, Skyline has complied in all material respects with all applicable Laws
and regulations relating to privacy, data protection and the collection and use of personally identifiable information gathered
or accessed in the course of the operations of Skyline. Skyline has complied in all material respects with all rules, policies
and procedures established by Skyline from time to time with respect to the foregoing, if any. No claims are pending or, to Skyline’s
Knowledge, threatened or likely to be asserted, against Skyline by any Person alleging a violation of such Person’s privacy,
personal or confidentiality rights under any such Laws, regulations, rules, policies or procedures. To Skyline’s Knowledge,
the consummation of the Merger and the Contemplated Transactions will not breach or otherwise cause any violation of any such Laws,
regulations, rules, policies or procedures.

 

(m)       With
respect to sensitive personally identifiable information, to Skyline’s Knowledge, Skyline has taken all commercially reasonable
steps (including, without limitation, implementing and monitoring compliance with adequate measures with respect to technical and
physical security) to ensure that the information is protected against loss and against unauthorized access, use, modification,
disclosure or other misuse. To the Knowledge of Skyline, there has been no unauthorized access to or other misuse of that information.

 

2.18       Material
Agreements. Section ‎2.18 of the Skyline Disclosure Letter sets forth a list
of all Skyline Material Agreements. All of the Skyline Material Agreements are in full force and effect and constitute the valid,
legal and binding obligation of Skyline and, to the Knowledge of Skyline, constitute the valid, legal and binding obligation of
the other parties thereof, enforceable against each such Person in accordance with its terms, subject to: (i) the effect of bankruptcy,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditor’s
rights generally; and (ii) general equitable principles (whether considered in a proceeding in equity or at law). There are no
material breaches or defaults by Skyline under any of the Skyline Material Agreements or, to the Knowledge of Skyline, events which
with notice or the passage of time would constitute a material breach or default by Skyline, and, to the Knowledge of Skyline,
there is no material breach or default from any other party under any of the Skyline Material Agreements. Skyline has made available
to CHC true and complete copies of all Skyline Material Agreements, including all amendments thereto. All consents and approvals
required under the Skyline Material Agreements in order for the Transactions to be consummated without a breach or default occurring
under the Skyline Material Agreements have been obtained and are in full force and effect as of the Agreement Date.

 

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2.19       Customers
and Suppliers. Skyline has delivered or made available to CHC a list identifying each customer of Skyline from which, for the
twelve (12) month period ended December 31, 2019, Skyline received revenue in excess of  $100,000 for such period (collectively,
“Skyline Major Customers”). Section ‎2.19 of the Skyline Disclosure
Letter sets forth the names of the ten (10) largest suppliers (by expenditure) to Skyline for the twelve (12) month period ended
December 31, 2019. Within the preceding twelve (12) months, Skyline has not received written or, to the Knowledge of Skyline,
oral, notice that any Skyline Major Customer or supplier listed in Section ‎2.19
of the Skyline Disclosure Letter has: (i) threatened to cancel, suspend or otherwise terminate, or intends to cancel, suspend or
otherwise terminate, any relationships of such Person with Skyline; (ii) decreased materially or threatened to stop, decrease or
limit materially, or intends to modify materially its relationships with Skyline; or (iii) intends to refuse to pay any amount
due to Skyline or seek to exercise any remedy against Skyline. Skyline has not, within the past twelve (12) months, been engaged
in any material dispute with any Skyline Major Customer or supplier listed in Section ‎2.19
of the Skyline Disclosure Letter. Skyline is in compliance in all material respects with the insurance requirements set forth in
its agreements with each of its customers.

 

2.20       Agreements
with Regulatory Agencies. Skyline is not (a) subject to any cease-and-desist or other Order issued by, (b) a party to any Contract,
consent agreement or memorandum of understanding with, (c) a party to any commitment letter or similar undertaking to, (d) subject
to any order or directive by, (e) a recipient of any extraordinary supervisory letter from, and (f) has not adopted any board resolutions
at the request of  (each of clauses (a)-(e) of this Section ‎2.20,
a “Regulatory Agreement”), any Governmental Entity that restricts the conduct of its business or that in any
manner relates to its management or its business, or would reasonably be expected, following the Merger and the consummation of
the Contemplated Transactions, to impair in any material respect the Surviving Company’s ability to conduct the business
of Skyline after the Effective Time, as presently conducted. Skyline has not been informed in writing by any Governmental Entity
that such Governmental Entity is considering issuing or requesting any Regulatory Agreement, except for any such proposed Regulatory
Agreements that, individually or in the aggregate, would not have or reasonably be expected to result in a Skyline Material Adverse
Effect.

 

2.21       Related
Party Transactions. Other than in respect of Contracts, interests related to employment or consulting or contracting in the
Ordinary Course of Business, with respect to options or warrants issued as shown on the Skyline Cap Table, or as disclosed in Section
‎2.21 of the Skyline Disclosure Letter, no Related Party is a party to any Contract
with or binding upon Skyline or any of its assets, rights or properties or has any interest in any property owned by Skyline or
has engaged in any transaction with any of the foregoing within the last twelve (12) months or during the calendar year 2019.

 

2.22       Accounts
Receivable. The accounts receivable of Skyline outstanding at the Effective Time represent or will represent valid, bona fide
claims against debtors for sales or other charges arising from sales actually made or services actually performed by Skyline in
the Ordinary Course of Business and in conformity in all material respects with the applicable purchase orders, agreements and
specifications, and such accounts receivable are not, to the Knowledge of Skyline, subject to any material defenses, set-offs or
counterclaims. Skyline has performed in all material respects all obligations with respect to such accounts receivable which it
was obligated to perform. Skyline will bill all unbilled receivables in the Ordinary Course of Business consistent with past practice.

 

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2.23       Deferred
Revenue. The deferred revenue balance of Skyline represents or will represent valid, bona fide obligations of Skyline to perform
services in the Ordinary Course of Business consistent with past practices and the amount of cash payable to Skyline under such
Contracts (including amounts that will have been paid as of the Effective Time) has not been modified or accelerated in any material
respects from the payment obligations of the agreement when initially executed and delivered. To the Knowledge of Skyline, the
obligations of Skyline under the Contracts underlying the deferred revenue amounts of Skyline were incurred in the Ordinary Course
of Business consistent with past practices.

 

2.24       Insurance.
All casualty, general liability, business interruption, product liability, director and officer liability, worker’s compensation,
environmental, automobile and sprinkler and water damage and other insurance policies and bond and surety arrangements maintained
by Skyline are listed in Section ‎2.24 of the Skyline Disclosure Letter (the “Skyline
Insurance Policies”) and true and complete copies of the Skyline Insurance Policies have been made available to CHC.
Skyline has not received any written notice of cancellation or premium increase with respect to or alteration of coverage under
any Skyline Insurance Policy with respect to such Skyline Insurance Policies other than such that are consistent with insurance
policy premium increases and coverages, generally. There are no claims related to the business of Skyline pending under any Skyline
Insurance Policy as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation
of rights.

 

2.25       Board
Approval. The Board of Directors of Skyline has unanimously: (i) approved this Agreement and the Contemplated Transactions;
(ii) determined that the Merger is fair to and in the best interests of the members of Skyline; and (iii) recommended that the
members of Skyline approve and adopt this Agreement and approve the Merger (collectively, the “Skyline Board Recommendation”).

 

2.26       Member
Approval. The requisite holders of the Skyline Units (the “Skyline Members’ Approval”) have (i) approved
this Agreement and the Contemplated Transactions; and (ii) determined that the Merger is fair to and in the best interests of the
members of Skyline.

 

2.27       Brokers.
Skyline has not incurred, nor will it incur, directly or indirectly, any Liability for brokerage or finder’s fees or agent’s
commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF CHC

 

CHC hereby represents
and warrants to Skyline, subject to such exceptions as are specifically disclosed in writing (with reference to a specific section
of this Agreement to which each such exception applies) in the disclosure letter supplied by CHC to Skyline, dated as of the Agreement
Date  (the “CHC Disclosure Letter”) or as disclosed in the CHC SEC Documents, as set forth below in this
Article III. As used in this Article III, unless the context indicates otherwise, the term “CHC Group” (as defined
in Section ‎3.1(a)) means each entity comprising the CHC Group.

 

3.1       Organization
and Qualification; Subsidiaries.

 

(a)       Each
of CHC and its wholly owned subsidiaries disclosed on Section ‎3.1(a)
of the CHC Disclosure Letter (together, the “CHC Subsidiaries” and, together with CHC, the “CHC Group”),
is a corporation or limited liability company duly organized, validly existing and in good standing under the Laws of the jurisdiction
of its formation and has the requisite corporate or company power and authority to own, lease and operate its assets and properties
and to carry on its business as it is now being conducted. The CHC Group is in possession of all franchises, grants, authorizations,
licenses, permits, easements, consents, certificates, approvals and orders (“CHC Approvals”) necessary to own,
lease and operate the properties it purports to own, operate or lease and to carry on its business as it is now being conducted,
except where the failure to have such CHC Approvals would not, individually or in the aggregate, have or reasonably be expected
to have a CHC Material Adverse Effect. Each member of the CHC Group is duly qualified or licensed as a foreign corporation or company,
as applicable, to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased
or operated by it or the nature of its activities makes such qualification or licensing necessary, except for such failures to
be so duly qualified or licensed and in good standing that would not, either individually or in the aggregate, have or reasonably
be expected to have a CHC Material Adverse Effect. CHC directly owns beneficially and of record all outstanding equity interests
of Merger Sub, and no other Person holds any capital stock and other equity interests of Merger Sub nor has any rights to acquire
any interest in Merger Sub.

 

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(b)       No
Subsidiaries. CHC has no subsidiaries, except for the CHC Subsidiaries, and owns no debt, equity or other similar interest
in any other Person, except for the CHC Subsidiaries. None of the CHC Subsidiaries own any debt, equity or other similar interest
in any other Person, except for one or more CHC Subsidiaries. No member of the CHC Group has agreed, nor is any such Person obligated
to make, and nor is any such Person bound by, any written, oral or other agreement, contract, sub-contract, lease, binding understanding,
instrument, note, option, warranty, purchase order, license, sub-license, insurance policy, benefit plan, commitment, or undertaking
of any nature, under which it may become obligated to make, any future investment in or capital contribution to any other Person.
No member of the CHC Group directly or indirectly owns any equity or similar interest in, or any interest convertible, exchangeable
or exercisable for any equity or similar interest in, any other Person other than one or more CHC Subsidiaries.

 

(c)       No
Prior Merger Sub Operations. The Merger Sub was formed solely for the purpose of effecting the Merger and has not engaged in
any business activities or conducted any operations other than in connection with the Merger.

 

3.2       Capital
Stock of CHC. The authorized and issued capital stock of CHC consists of the following:

 

(a)       Preferred
stock, $0.0001 par value: authorized shares of 100,000,000, of which no shares are designated, issued or outstanding.

 

(b)       CHC
Common Stock, $0.0001 par value: authorized shares 300,000,000 of which 140,802,285 shares are issued and outstanding as of the
date hereof and, except for any shares of CHC Common Stock to be issued in the Private Placement or upon the exercise or conversion
of any Derivative Security of CHC outstanding on the date hereof, immediately prior to the Effective Time;

 

(c)       Except
as set forth on Schedule 3.2(c) of the CHC Disclosure Letter, CHC has no Derivative Security issued and outstanding, or any other
obligation of any type pursuant to which any Person has any right to acquire or receive any equity securities of CHC.

 

(d)       All
outstanding shares of CHC Common Stock have been issued and granted in compliance in all material respects with: (i) all applicable
domestic or foreign statutes, laws, rules, regulations or ordinances (each a “Law”) relating to the issuance
of securities, and any domestic or foreign judgments, decrees, orders, writs, permits or licenses (each an “Order”)
or otherwise put into effect by or under the authority of any Governmental Entity; and (ii) all requirements set forth in applicable
Contracts.

 

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(e)       There
are no registration rights and there is no voting trust, proxy, rights plan, antitakeover plan or other agreement or understanding
to which CHC is a party or by which it is bound with respect to any equity security of any class of CHC.

 

(f)       CHC
is the only member of Merger Sub.

 

(g)       There
are no Derivative Securities issued by Merger Sub or any other CHC Subsidiary (or otherwise outstanding).

 

3.3       Authority
Relative to this Agreement. Each of CHC and Merger Sub has all necessary corporate or organizational power and authority to
execute and deliver this Agreement and all other Transaction Documents to which it is a party (the “CHC Transaction Documents”)
and to perform its obligations hereunder and thereunder and, to consummate the Contemplated Transactions. The execution and delivery
of this Agreement and the CHC Transaction Documents by CHC and Merger Sub, and the consummation by CHC and Merger Sub of the Contemplated
Transactions, have been duly and validly authorized by all necessary corporate or organizational action on the part of CHC and
Merger Sub, and no other corporate or organizational proceedings on the part of CHC or Merger Sub are necessary to authorize this
Agreement and the CHC Transaction Documents or to consummate the transactions so contemplated. This Agreement and the CHC Transaction
Documents have been duly and validly executed and delivered by CHC and Merger Sub and, assuming the due authorization, execution
and delivery by the other parties thereto, constitute the legal and binding obligation of CHC and Merger Sub, enforceable against
CHC and Merger Sub in accordance with their respective terms, subject to: (i) the effect of bankruptcy, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditor’s rights generally;
and (ii) general equitable principles (whether considered in a proceeding in equity or at law).

 

3.4       Valid
Issuance of Shares. The CHC Common Stock and the shares underlying the CHC Convertible Debentures, when issued and delivered
in accordance with the terms set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions
on transfer other than restrictions on transfer under applicable state and federal securities laws. Assuming the accuracy of the
representations and warranties of Skyline herein, the CHC Common Stock and the shares underlying the CHC Convertible Debentures
will be issued in compliance with a valid private placement exemption under all applicable federal and state securities laws.

 

3.5       No
Conflict; Required Filings and Consents.

 

(a)       The
execution and delivery of this Agreement and the CHC Transaction Documents by each of CHC and Merger Sub do not, and the performance
of this Agreement and the Transaction Documents by each of CHC and Merger Sub will not: (i) conflict with or violate the organizational
documents of CHC or Merger Sub, as the case may be; (ii) subject to obtaining the consents, approvals, authorizations and permits
and making the registrations, filings and notifications set forth in Section ‎3.5(b),
conflict with or violate any Law applicable to the CHC Group or by which its properties is bound or affected; (iii) result in any
breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or impair
the CHC Group’s rights or alter the rights or obligations of any third party under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the properties or assets of the CHC Group
pursuant to, any material Contract to which any member of the CHC Group is a party or by which any member of the CHC Group or any
of its respective properties are bound or affected; or (iv) cause the acceleration of any vesting of any awards for or rights to
CHC Common Stock or the payment of or the acceleration of payment of any change in control, severance, bonus or other cash payments
or issuance of CHC Common Stock, except in the case of clauses (ii) and (iii), to the extent such conflict, violation, breach,
default, impairment or other effect would not, individually or in the aggregate, reasonably be expected to have a CHC Material
Adverse Effect.

 

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(b)       The
execution and delivery of this Agreement and the CHC Transaction Documents by CHC and Merger Sub do not, and the performance of
this Agreement and the CHC Transaction Documents by CHC and Merger Sub will not, require any consent, approval, authorization or
permit of, or registration, filing with or notification to, any Governmental Entity, except for: (i) applicable requirements, if
any, of the Securities Act, the Exchange Act, Blue Sky Laws and the OTC Markets; (ii) the filing and recordation of the Articles
of Merger as required by the CBCA, as applicable; and (iii) such consents, approvals, authorizations, permits, registrations, filings
or notifications which, if not obtained or made, would not have a CHC Material Adverse Effect.

 

3.6       Reports
and Financial Statements.

 

(a)       CHC
has filed all forms, reports and documents required to be filed with the SEC since January 1, 2018 (all such required forms, reports
and documents are referred to herein as the “CHC SEC Documents”), all of which are available to Skyline through
the SEC’s EDGAR database. As of their respective dates, the CHC SEC Documents: (i) were prepared in accordance with the requirements
of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to
such CHC SEC Documents; and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date
of this Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material
fact require to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The certifications and statements required by (x) Rule 13a-14 under the Exchange
Act and (y) 18 U.S.C. §1350 (Section 906 of the Sarbanes-Oxley Act) relating to the CHC SEC Documents are accurate
and complete and comply as to form and content with all applicable legal requirements.

 

(b)       The
audited consolidated financial statements of CHC as of December 31, 2019 and for the period January10, 2019 (inception) to December
31, 2019, and unaudited financial statements of CHC as of June 30 2020 and for the six-month period ended June 30, 2020, including
the notes thereto (the “CHC Financial Statements”): (i) complied as to form in all material respects with the
published rules and regulations of Regulation S-X promulgated by the SEC; (ii) were prepared in accordance with GAAP, applied on
a consistent basis during the periods involved (except as may be indicated therein in the notes thereto); (iii) fairly present
in all material respects the financial position of CHC as at the respective dates thereof and the results of its operations and
cash flows for the respective periods then ended; and (iv) were compiled from, and are consistent with, the books and records of
CHC, which books and records are accurate and complete in all material respects.

 

(c)       No
member of the CHC Group is a party to, nor does it have any commitment to become a party to, any joint venture, off balance sheet
partnership or any similar Contract (including any Contract or arrangement relating to any transaction or relationship between
or among any member of the CHC Group, on the one hand, and any unconsolidated Affiliate, including any structured finance, special
purpose or limited purpose entity or Person, on the other hand, or any “off balance sheet arrangements” (as defined
in Item 303(a) of Regulation S-K under the Exchange Act)), where the result, purpose or intended effect of such Contract is to
avoid disclosure of any material transaction involving, or material Liabilities of, the CHC Group in CHC’s financial statements.

 

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(d)       No
member of the CHC Group has outstanding (nor has arranged or modified since the enactment of the Sarbanes-Oxley Act) any “extensions
of credit” (within the meaning of Section 402 of the Sarbanes-Oxley Act) to directors or executive officers (as defined in
Rule 3b-7 under the Exchange Act) of any member of the CHC Group.

 

3.7       Compliance;
Permits.

 

(a)       No
member of the CHC Group is in conflict with, or in default or violation of: (i) any Law or Order applicable to any entity
comprising the CHC Group, or by which any of its respective properties is bound or affected; or (ii) any Contract to which any
entity comprising the CHC Group is a party or by which any entity comprising the CHC Group or any of each entity’s respective
properties are bound or affected, except for any conflicts, defaults or violations of such Laws, Orders or Contracts that (individually
or in the aggregate) would not have or reasonably be expected to have a CHC Material Adverse Effect. No Governmental Entity has
indicated in writing to any entity comprising the CHC Group an intention to conduct an investigation or review against any entity
comprising the CHC Group, and, to the Knowledge of CHC, no investigation or review by any Governmental Entity is pending or overtly
threatened against any entity comprising the CHC Group.

 

(b)       The
CHC Group holds all permits, licenses, variances, exemptions, orders and approvals from Governmental Entities which are material
to operation of the business of the CHC Group as currently conducted (collectively, the “CHC Permits”). To the
Knowledge of CHC, each member of the CHC Group is in compliance in all material respects with the terms of each of the CHC Permits.

 

3.8Absence of
Certain Changes or Events. Since the date of the most recent balance sheet included in the CHC Financial Statements, except
(i) as described in Section 3.8 of the CHC Disclosure Letter or in the CHC SEC Documents; or (ii) with the consent of Skyline,
no member of the CHC Group has:(a) sold or transferred (including licensed) or otherwise disposed of any material portion of
its assets or properties that would be material to CHC, except for sales or transfers in the Ordinary Course of Business consistent
with past practice;

 

(b)       suffered
any material loss, or any material interruption in use, of any material assets or property on account of fire, flood, riot, strike
or other hazard or act of God that is not covered by insurance;

 

(c)       suffered
any change to its businesses, other than in the Ordinary Course of Business consistent with past practice, which has had, or would
reasonably be expected to have, a CHC Material Adverse Effect;

 

(d)       entered
into any Contract that would constitute a CHC Material Agreement, other than in the Ordinary Course of Business consistent with
past practice;

 

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(e)       terminated
or materially modified, waived any material right under or cancelled any CHC Material Agreement;

 

(f)       incurred
any Liens on any material assets or property, or any losses, damages, deficiencies, Liabilities, except for Liabilities incurred
in the Ordinary Course of Business consistent with past practice which are not material to its businesses;

 

(g)       granted
any registration rights with respect to any of its securities;

 

(h)       paid
or declared any dividends or other distributions on its equity securities of any class or issued, purchased or redeemed any of
its equity securities of any class;

 

(i)       transferred,
assigned or granted any license or sublicense of any material rights under, or with respect to any Intellectual Property Rights
of CHC, other than in the Ordinary Course of Business consistent with past practice;

 

(j)       made
any material capital expenditures;

 

(k)       split,
combined or reclassified any shares of its equity securities;

 

(l)       made
any capital investment in, or any loan to, any other Person;

 

(m)       amended
any of its organizational or constituent documents;

 

(n)       paid
or materially increased any bonuses, salaries, or other compensation to any director, officer, or employee except in the Ordinary
Course of Business consistent with past practice;

 

(o)       made
any payments to any Related Party other than as described in the CHC SEC Documents other than wages and benefits paid in the Ordinary
Course of Business consistent with past practice;

 

(p)       adopted,
modified or increased payments or benefits to any Person other than for regular annual raises that are consistent with past practices
and that are reflected in the current payroll register of CHC;

 

(q)       entered
into, terminated, or received notice of termination of any (a) license, distributorship, dealer, sales representative, joint venture,
credit or similar agreement, or (b) Contract or transaction involving a total remaining commitment of at least $100,000;

 

(r)       materially
changed any accounting method, assumption or period, made, changed or revoked any material Tax election, filed an income or other
material Tax Return in a jurisdiction in which a Tax Return was not previously filed, failed to file any income or other material
Tax Return (taking into account extensions of time to file), consented to any extension or waiver of the limitations period applicable
to any material Tax claim or assessment, entered into a closing agreement, or settled any administrative or judicial proceeding
related to Taxes;

 

(s)       changed
any of the material terms in any material respect for the license of its products and services;

 

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(t)       instituted,
settled or compromised any Legal Actions pending or threatened before any arbitrator, court or other Governmental Entity involving
the payment of monetary damages of any amount exceeding $50,000 in the aggregate; or

 

(u)       agreed
or committed, whether orally or in writing, to do any of the foregoing.

 

3.9       Absence
of Litigation. There are no Legal Actions pending or, to the Knowledge of CHC, threatened against any member of the CHC Group,
or any properties or rights of any member of the CHC Group, related to Legal Action brought by any stockholder against CHC, any
creditor or otherwise, pursuing any criminal sanctions or penalties, seeking equitable or injunctive relief, including before any
Governmental Entity, including, for the avoidance of doubt, the SEC.

 

3.10       Restrictions
on Business Activities. There is no agreement, commitment, judgment, injunction, order or decree binding upon any member of
the CHC Group or to which any member of the CHC Group is a party which has or would reasonably be expected to have the effect,
in any material respect, of prohibiting or impairing any present business practice of any member of the CHC Group, any acquisition
of property by any member of CHC Group or the conduct of business by any member of CHC Group as currently conducted, in each case,
except as may be disclosed by CHC in CHC SEC Documents.

 

3.11       Title
to Property. No member of the CHC Group owns any real property. The applicable members of the CHC Group has a valid leasehold
interest in all real property leased or subleased by it, free and clear of all Liens. The CHC Group has not received written notice
that the (b) use or occupancy of any leased property violates in any material respect any covenants, conditions or restrictions
that encumber such property, or that any such property is subject to any restriction for which any material permits necessary to
the current use thereof have not been obtained.

 

3.12       Material
Agreements. All of Material Agreements of CHC are in full force and effect and constitute the valid, legal and binding obligation
of the member or members of the CHC Group that is or are a party thereto and, to the Knowledge of CHC, constitute the valid, legal
and binding obligation of the other parties thereof, enforceable against each such Person in accordance with its terms, subject
to: (i) the effect of bankruptcy, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting
the enforcement of creditor’s rights generally; and (ii) general equitable principles (whether considered in a proceeding
in equity or at law). There are no material breaches or defaults by any member of the CHC Group under any of CHC Material Agreements
or, to the Knowledge of CHC, events which with notice or the passage of time would constitute a material breach or default by any
member of the CHC Group, and, to the Knowledge of CHC, there is no material breach or default from any other party under any of
CHC Material Agreements. All consents and approvals required under the CHC Material Agreements in order for the Contemplated Transactions
to be consummated without a breach or default occurring under the Material Agreements have been obtained and are in full force
and effect as of the Closing Date.

 

3.13       Agreements
with Regulatory Agencies. No member of the CHC Group is subject to a Regulatory Agreement issued by or with any Governmental
Entity that restricts the conduct of its business or that in any manner relates to its management or its business, or would reasonably
be expected, following the Merger and the consummation of the Contemplated Transactions, to impair in any material respect the
CHC Group’s ability to conduct the business of the CHC Group after the Effective Time, as presently conducted. No member
of the CHC Group has been informed in writing by any Governmental Entity that such Governmental Entity is considering issuing or
requesting any Regulatory Agreement, except for any such proposed Regulatory Agreements that, individually or in the aggregate,
would not have or reasonably be expected to result in a CHC Material Adverse Effect.

 

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3.14       Board
Approval. The CHC Board has unanimously approved this Agreement and the Contemplated Transactions. The Board of Directors and
Board of Managers of Merger Subs have unanimously approved this Agreement and the Contemplated Transactions.

 

3.15       Stockholder
and Member Votes. No vote of the holders of the outstanding shares of any class or series of CHC’s capital stock is required
by CHC’s Articles of Incorporation or Bylaws for CHC to execute and deliver this Agreement and approve the Merger and the
Contemplated Transactions. The affirmative vote of CHC as the sole shareholder and sole member of Merger Subs will be obtained
as of the Closing Date, and is the only vote of the holders of any class or series of Merger Sub I’s capital stock and Merger
Sub II’s equity interest necessary to approve and adopt this Agreement and approve the Merger and the Contemplated Transactions.

 

3.16       Brokers.
The CHC Group has not incurred, nor will it incur, directly or indirectly, any Liability for brokerage or finder’s fees or
agent’s commissions or any similar charges in connection with this Agreement or any transaction contemplated hereby.

 

3.17       Solvency.
At the Effective Time, both before and after giving effect to the Contemplated Transactions: (a) the fair value of the consolidated
assets of CHC and the CHC Group taken as a whole, will exceed their respective liabilities; and (b) each of CHC and the CHC Group
taken as a whole will be able to pay their respective liabilities as they mature or otherwise become due. CHC has (or will have
prior to the Effective Time) sufficient cash to pay all amounts due under this Agreement.

 

ARTICLE
IV

PRE-CLOSING COVENANTS

 

4.1       Covenants
of Skyline and CHC. At all times from and after the date hereof until the Effective Time, Skyline covenants and agrees as to
itself and its subsidiaries, if any, that (except as necessary to effectuate the Merger and otherwise as expressly contemplated
or permitted by this Agreement, or to the extent that the other party shall otherwise previously consent in writing, which such
consent shall not be unreasonably withheld, conditioned or delayed):

 

(a)       Ordinary
Course. 

 

(i)       Each
of Skyline and its subsidiaries, if any, shall conduct their respective businesses only in, and none of Skyline and its subsidiaries,
if any, shall take any action except in, the ordinary course consistent with past practice.

 

(ii)       Each
of CHC and its subsidiaries shall conduct their respective businesses only in, and none of CHC and its subsidiaries, if any, shall
take any action except in, the ordinary course consistent with past practice; provided, however, that nothing in this clause (ii)
shall prohibit the sale by CHC of shares of CHC Common Stock in a public offering of such shares under the Securities Act. In addition,
CHC will seek to file all forms, reports and documents required to be filed with the SEC on a timely basis.

 

(b)       Skyline
Negative Covenants.  Without limiting the generality of Section ‎4.1‎(a):
(i) each of Skyline and its subsidiaries, if any, shall use all commercially reasonable efforts to preserve intact in all material
respects their respective present business organizations and reputation, to keep available the services of their key officers and
employees, to maintain their assets and properties in good working order and condition, ordinary wear and tear excepted, to maintain
insurance on their tangible personal property and businesses in such amounts and against such risks and losses as are currently
in effect, to preserve their relationships with customers and suppliers and others having significant business dealings with them
and to comply in all material respects with all Laws and Orders of all Governmental Entities; and (ii) except as necessary to effectuate
the Merger or as contemplated by this Agreement, neither Skyline nor its subsidiaries, if any, shall, except as otherwise expressly
provided for in this Agreement:

 

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(i)       amend
or propose to amend their organizational documents other than as contemplated in connection with this Agreement;

 

(ii)       (w)
declare, set aside or pay any dividends on or make other distributions in respect of any of its membership interests or capital
stock, (x) split, combine, reclassify or take similar action with respect to any of its membership interests or capital stock or
issue or authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution for its membership
interests or shares of its capital stock, (y) adopt a plan of complete or partial liquidation or resolutions providing for or authorizing
such liquidation or a dissolution, merger, consolidation, restructuring, recapitalization or other reorganization or (z) directly
or indirectly redeem, repurchase or otherwise acquire any membership interests or shares of its capital stock or any options with
respect thereto;

 

(iii)       issue,
deliver or sell, or authorize or propose the issuance, delivery or sale of, any membership interests of shares of its capital stock
or any options or other equity incentives with respect thereto (other than issuances pursuant to options or warrants outstanding
on the date hereof and in accordance with their present terms);

 

(iv)       acquire
(by merging or consolidating with, or by purchasing a substantial equity interest in or a substantial portion of the assets of,
or by any other manner) any business or any other Person or otherwise acquire or agree to acquire any material assets;

 

(v)       other
than in the ordinary course of business consistent with past practice and of assets which are not, individually or in the aggregate,
material to their business, sell, lease, transfer, license, pledge, grant any security interest in or otherwise dispose of or encumber
any of its material assets or properties;

 

(vi)       except
to the extent required by applicable Law, GAAP or Contracts existing on the date hereof, permit any material change in (A) any
pricing, marketing, purchasing, investment, accounting, financial reporting, inventory, credit, allowance or Tax practice or policy
or (B) any method of calculating any bad debt, contingency or other reserve for accounting, financial reporting or Tax purposes;

 

(vii)       except
to the extent required by applicable Law or Contracts existing on the date hereof, make any material Tax election or settle or
compromise any material Tax Liability with any Governmental Entity;

 

(viii)       (x)
incur any indebtedness for borrowed money, or guarantee any such indebtedness, in excess of $100,000 in the aggregate, or (y) voluntarily
purchase, cancel, prepay or otherwise provide for a complete or partial discharge in advance of a scheduled repayment date with
respect to, or waive any right under, any indebtedness for borrowed money; provided that Skyline may prepay or defease any indebtedness
for borrowed money if such may be done without the payment of any additional fee (other than amounts owed under the terms of such
indebtedness); provided that the foregoing shall not apply to any Payroll Protection Program loan or other Small Business Administration
loan;

 

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(ix)       enter
into, adopt, amend in any material respect (except as may be required by applicable Law) or terminate any employee or similar benefit
plan, or increase in any manner the compensation or fringe benefits of any director, officer or employee, except for annual salary
increases in the ordinary course of business consistent with past practices;

 

(x)       enter
into any Material Agreement or amend, modify, or otherwise terminate, any existing Skyline Material Agreement, as applicable, in
each case, other than in the ordinary course of business and consistent with past practices;

 

(xi)       make
any capital expenditures or commitments for additions to property or equipment constituting capital assets in an aggregate amount
exceeding $50,000;

 

(xii)       make
any material change in the lines of business in which it participates or is engaged;

 

(xiii)       institute,
settle or compromise any Legal Actions pending or threatened before any arbitrator, court or other Governmental Entity involving
the payment of monetary damages of any amount exceeding $50,000 in the aggregate; provided that neither Skyline nor its
subsidiaries, if any, shall settle or agree to settle any Legal Action which settlement involves a conduct remedy or injunctive
or similar relief or has a restrictive impact on their respective business; or

 

(xiv)       enter
into any Contract, commitment or arrangement to do or engage in any of the foregoing (other than those Contracts, commitments and
arrangements pending as of the date hereof). 

 

4.2 Advice
of Changes. Each of CHC and Skyline shall promptly advise the other, orally and in writing, of any change or event, including,
without limitation, any complaint, investigation or hearing by any Governmental Entity (or communication indicating the same may
be contemplated) or the institution or threat of Legal Action, having, or which, insofar as can be reasonably foreseen, could
have, an Skyline Material Adverse Effect or a CHC Material Adverse Effect, as applicable; provided that no Party shall
be required to make any disclosure to the extent such disclosure would constitute a violation of any applicable Law. No notice
given pursuant to this Section 4.2 shall have any effect on the representations, warranties, covenants or agreements contained
in this Agreement for purposes of determining satisfaction of any condition contained herein.

 

4.3 Notice
and Cure. Each of CHC and Skyline will notify the other of, and will use all commercially reasonable efforts to cure
before the Closing, any event, transaction or circumstance, as soon as practical after it becomes known to such party, that causes
or will cause any covenant or agreement of such party under this Agreement to be breached in any material respect or that renders
or will render untrue any representation or warranty of such party contained in this Agreement in any material respect. Each of
CHC and Skyline also will notify the other in writing of, and will use all commercially reasonable efforts to cure, before the
Closing, any material violation or breach, as soon as practical after it becomes known to such party, of any representation, warranty,
covenant or agreement made by such party. No notice given pursuant to this paragraph shall have any effect on the representations,
warranties, covenants or agreements contained in this Agreement for purposes of determining satisfaction of any condition contained
herein; provided that the applicable Disclosure Letter of a Party may, with the written consent of the other Party, be updated
to account for such change.

 

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4.4 Fulfillment
of Conditions. Subject to the terms and conditions of this Agreement, each of CHC and Skyline will take or cause to be
taken all commercially reasonable steps necessary or desirable and proceed diligently and in good faith to satisfy each condition
to the other’s obligations contained in this Agreement and to consummate and make effective the transactions contemplated
hereby, and neither CHC nor Skyline will, nor will it permit any of its subsidiaries to, take or fail to take any action that
would be reasonably expected to result in the nonfulfillment of any such condition.

 

4.5 Access
to Information; Confidentiality.

 

(a) Confidentiality. 
The terms and conditions of the Confidentiality Agreement are hereby ratified and confirmed by each of the parties.

 

(b) Mutual
Access to Information.  During the period from the date of this Agreement until the earlier of (x) the Effective Time,
or (y) the termination of this Agreement in accordance with Section 7.1, each party to this Agreement will (and will cause
such party’s Representatives to) provide the other party (the requesting party) and the requesting party’s Representatives
with reasonable access to the disclosing party’s management, financial statements, books and records, contracts, leases,
operations, forecasts, tax records and other documents in the manner and to the extent such requesting party reasonably requests.
Following the Closing, the Skyline and CHC will provide the Members’ Representative reasonable access upon request to all
relevant books and records of Skyline and its advisors and representatives as may be necessary, appropriate, advisable or desirable
in connection with the Member Representative’s performance of its role under and in connection with this Agreement.

 

4.6 Regulatory
and Other Approvals; Further Assurances.

 

(a) 
Subject to the terms and conditions of this Agreement, each of Skyline and CHC will proceed diligently and in good faith to, as
promptly as practicable: (i) obtain all consents, approvals or actions of, make all filings (including, with respect to CHC, any
Form 8-K filings) with and give all notices to Governmental Entities or any other public or private third parties required to consummate
the Merger and the transactions contemplated hereby; and (ii) provide such other information and communications to such Governmental
Entities or other public or private third parties as the other party or such Governmental Entity or other public or private third
parties may reasonably request in connection therewith. No party shall consent to any voluntary extension of any statutory deadline
or delay the consummation of the Merger at the request of a Governmental Entity without the consent of the other party, which consent
shall not be unreasonably withheld, conditioned or delayed. All such filings and notices made by a party shall be provided for
review and comment by the other party and shall not be filed or made until reasonably acceptable to both parties.

 

(b) Each
Party hereto will, either prior to or after the Effective Time, execute such further documents, instruments, deeds, bills of sale,
assignments and assurances and take such further actions as may reasonably be requested by the other to consummate the Merger,
to vest the Surviving Company with full title to all assets, properties, privileges, rights, approvals, immunities and franchises
of either of Skyline or CHC or to effect the other purposes of this Agreement.

 

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4.7 RESERVED.

 

4.8 Stockholder
or Member Litigation. Each Party shall promptly provide a notice to the other of any Legal Action brought by any
stockholder or member of such Party against such Party and/or its Representatives relating to this Agreement or the
transactions contemplated hereby, including the Merger (each a “Transaction Legal Action”), and shall
promptly inform such other Party of the status thereof.

 

4.9 Public
Announcements. The initial press release with respect to this Agreement and the transactions contemplated hereby
shall be a release mutually agreed to by Skyline and CHC. Thereafter, Skyline and CHC agree that no public release or other
public announcement, including any releases, announcements or other correspondence with customers or suppliers of either
Party, concerning the transactions contemplated hereby shall be issued by any Party without the prior written consent of each
of Skyline and CHC (which consent shall not be unreasonably withheld, conditioned or delayed), except as such release or
announcement may be required by applicable Law or the rules or regulations of the SEC or a Governmental Entity to which the
relevant Party is subject, wherever situated, in which case the Party required to make the release or announcement shall
consult with the other Party about, and allow the other Party reasonable time to comment on, such release or announcement in
advance of such issuance.

 

4.10 Notice
of Certain Events. From and after the date hereof until the earlier of the Effective Time or the termination of this
Agreement, each Party shall give prompt notice to the other Party of any event, transaction or circumstance that has caused or
would reasonably be expected to cause any covenant or agreement of such Party under this Agreement to be breached or that has
rendered or would be reasonably expected to render untrue any representation or warranty of such Party contained in this Agreement
as if the same were made on or as of the date of such event, transaction or circumstance. No notice given pursuant to this Section
4.10 shall have any effect on the representations, warranties, covenants or agreements contained in this Agreement for purposes
of determining satisfaction of any conditions contained herein.

 

4.11 Tax
Matters.

 

(a) Intended
Tax Treatment. The Parties intend that for U.S. federal income Tax purposes the conversion of the Skyline Units into Merger
Consideration will be treated (i) as to the Skyline Members as a taxable sale of the Skyline Units as described in Situation 2
of Revenue Ruling 99-6, 1999-1 C.B. 432; and (ii) as to the CHC as a purchase of the assets and liabilities of Skyline. The Parties
intend that the Skyline Members will report on the installment method of reporting pursuant to Code Section 453 with respect to
the CHC Term Debentures and the CHC Convertible Debentures.

 

(b) Members’
Representative Tax Returns. The Members’ Representative shall (i) prepare or cause to be prepared and timely file or
cause to be timely filed (including extensions validly obtained), all income Tax Returns of Skyline that are required to be filed
with respect to any Tax period that ends on or before the Closing Date (“Members’ Representative Tax Returns”)
in a manner consistent with past practices of Skyline to the extent permitted by Law, and such Tax Returns may take into account
Transaction Expense Deductions that are properly deductible for such periods at a “more likely than not” level of certainty,
and (ii) timely pay or cause to be paid all Taxes shown to be due and payable by Skyline on such Tax Returns. The Members’
Representative shall deliver to CHC copies of all Members’ Representative Tax Returns at least twenty (20) days prior to
the due date thereof (including extensions validly obtained),and shall not unreasonably refuse to incorporate any comments from
CHC received 10 days prior to such due date.

 

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(c) CHC
Tax Returns. CHC shall prepare or cause to be prepared and timely file or cause to be timely filed (including extensions validly
obtained), (i) all Tax Returns for Skyline that are required to be filed with respect to any Tax period that ends on or before
the Closing Date other than Members’ Representative Tax Returns, and (ii) all Tax Returns of Skyline that are required to
be filed with respect to any Tax period that begins before or on the Closing Date and ends after the Closing Date (a “Straddle
Period”) (Tax Returns described in clauses (i) and (ii), collectively, “CHC Tax Returns”) in a manner consistent
with past practices of Skyline to the extent permitted by Law and shall take into account as deductions any Transaction Expense
Deductions that are properly deductible for such periods. CHC shall deliver to the Members’ Representative copies of all
CHC Tax Returns at least twenty (20) days prior to the due date thereof (including extensions validly obtained), and shall not
unreasonably refuse to incorporate any comments from the Members’ Representative received ten (10) days prior to such due
date. The Members’ Representative and Skyline Members shall bear, and pay, or cause to be paid, all Taxes of Skyline for
any Tax Period ending on or before the Closing Date, including the portion of any Straddle Period, ending on the Closing Date,
while CHC shall bear and pay, or cause to be paid, Taxes for all periods beginning after the Closing Date, and the portion of the
Straddle Period beginning after the Closing Date. In the case of Taxes arising in a Straddle Period, the allocation of such Taxes
between the portion of such period ending on the Closing Date (the “Pre-Closing Tax Period”) and the portion
of such period beginning on the calendar day after the Closing Date (the “Post-Closing Tax Period”) shall be
made (1) on the basis of an interim closing of the books in the case of payroll Taxes, income Taxes and other Taxes based
on gross receipts provided that any Transaction Expense Deductions for expenses that are accrued for tax purposes or paid on or
before the Closing Date and that are deductible on such Tax Returns shall be allocated to the Pre-Closing Tax Period, and (2) on
the basis of the number of calendar days elapsed in the portion of the period ending at the end of the Closing Date and the portion
of the period beginning at the beginning of the calendar day following the Closing Date in the case of Taxes not based on income
or gross receipts (including property, ad valorem and similar Taxes), provided that exemptions, allowances or deductions calculated
on an annual basis (other than with respect to property placed in service after the Closing) shall be allocated between the Pre-Closing
Tax Period and the Post-Closing Tax Period on a per diem basis.

 

(d) Tax
Controversies. The Members’ Representative may elect, at its own cost and expense, to control any Tax audit, Tax dispute,
Tax notice (including an assertion of a deficiency or a notice of a proposed adjustment), or any assertion of a claim for Taxes
or Proceeding with respect to Skyline (each, a “Tax Controversy”) with respect to any income Taxes for a Tax period
of Skyline ending on or before the Closing Date (“Members’ Representative Tax Controversies”), provided
that (i) the Members’ Representative shall keep CHC informed of all material events and developments in such Members’
Tax Controversy, and shall reasonably cooperate with CHC and consult in good faith with CHC regarding the conduct of, or positions
taken, in any Members’ Tax Controversy (ii) the Members’ Representative shall settle or compromise, concede, or
enter into any other agreement, with respect to the Tax Controversy, or any portion of such Tax Controversy, only with the prior
written consent of CHC (such consent to not be unreasonably conditioned, withheld or delayed), and (iii) CHC shall be entitled,
at its sole expense, to provide comments to the Members’ Representative regarding the conduct of or positions taken in any
such Members’ Representative Tax Controversy and to participate in such Tax Controversy. Tax Controversies that are not Members’
Representative Tax Controversies, but that are reasonably likely to result in liabilities that the Skyline Members would be required
to indemnify the CHC Indemnitees for under Article VII, will be controlled by CHC, provided that (i) CHC shall
keep the Members’ Representative informed of all material events and developments in such Tax Controversy, and shall reasonably
cooperate with the Member’s Representative and consult in good faith with the Member’s Representative regarding the
conduct of, or positions taken, in any such Tax Controversy (ii) CHC shall settle or compromise, concede, or enter into any
other agreement, with respect to the Tax Controversy, or any portion of such Tax Controversy, only with the prior written consent
of Members’ Representative (such consent to not be unreasonably conditioned, withheld or delayed), and (iii) Members’
Representative shall be entitled, at its sole expense, to provide comments to CHC regarding the conduct of or positions taken in
any such Tax Controversy and to participate in such Tax Controversy.

 

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(e) Cooperation.
After the Closing, each Skyline Member and the Members’ Representative shall cooperate with CHC, including its accounting
firms and legal counsel upon reasonable request, in connection with the preparation of any Tax Return or any refund claim or any
Tax Controversy with respect to the activities or filings of Skyline for any period, or the portion of any period, prior to the
Closing Date. In addition, CHC shall cooperate with the Members’ Representative, in the same manner as set forth above, in
connection with the preparation of any Members’ Representative Tax Return (or any refund claim related thereto) or any Members’
Representative Tax Controversy. The cooperation of any Person under this Section 4.11(e) shall include the retention and
(upon the other Party’s reasonable request) the provision of records and information, including work papers, but excluding
records and information that are protected by recognized professional privilege. The Parties each agree to retain all books and
records with respect to Tax matters pertinent to Skyline relating to the six year period (or portion thereof) prior to the Closing
Date for a period of at least six years and shall provide notice to the other prior to destroying any such books and records (and
an opportunity for the other to take possession of such books and records).

 

(f) Notice.
If, after the Effective Time, any Party receives any document with respect to the Tax matters of Skyline or the Surviving Company
that could reasonably be expected to affect any of the other Parties, the Party receiving such document shall supply a copy of
such document to the potentially affected Party promptly upon receipt thereof, provided, however, that the failure to provide such
a copy shall not be a condition precedent to the liability of any Party under this Agreement. For this purpose, such Tax documents
shall include requests for information, notices of proposed adjustment, revenue agent’s reports or similar reports and notices
of deficiency. Any information provided or obtained under this paragraph shall be kept confidential, except as may otherwise be
necessary in connection with the filing of a Tax Return, refund claims, or any Tax Controversy, or as required by applicable Regulations.

 

(g) Allocation
Methodology. For purposes of determining the Tax consequences of the transactions contemplated by this Agreement to all parties
hereto, including the character of the Skyline Members’ gain recognition under Section 751(a) of the Code, the fair market
value of the assets and liabilities of Skyline shall be determined using the allocation methodology to be agreed upon by the Parties
prior to the Closing (the “Allocation Methodology”). CHC, Skyline, the Surviving Company, and the Skyline Members
shall file all Tax Returns in a manner consistent with the Allocation Methodology, and shall take no position before any Governmental
Authority or in any legal proceeding that is inconsistent with the Allocation Methodology; provided, that (i) nothing contained
herein shall prevent any party from settling in good faith any proposed deficiency or adjustment by a governmental authority based
upon or arising out of the Allocation Methodology, and (ii) no party shall be required to litigate before any court any proposed
deficiency or adjustment by a governmental authority challenging the Allocation Methodology.

 

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(h) Post-Closing
Elections and Amendments.

 

(i) Except
as may be required by Law or contemplated by this Agreement, CHC shall not, and shall not cause or permit the Surviving Company
to, (A) take any action or make any election that is reasonably likely to materially increase the Skyline Members’ liability
for Taxes (or the liability for Taxes of any direct or indirect owner of a Skyline Member) for any Tax period ending on or before
the Closing Date (including any liability of the Skyline member to indemnify CHC for Taxes pursuant to this Agreement), or (B)
amend any Tax Return for any Tax period ending on or before the Closing Date or Straddle Period, in each case, without the Members’
Representative’s prior written consent (which shall not be unreasonably withheld, conditioned or delayed).

 

(ii) The
provisions of this Section 4.10 with respect to the preparation of Tax Returns and the control of Tax Controversies
shall supersede any contrary provisions of the Skyline Operating Agreement. After Closing, CHC agrees that any amendment
to the Skyline Operating Agreement shall not be deemed an amendment or modification of the Members’ Legacy Agreement.

 

4.12 Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration and other similar Taxes, and all conveyance fees,
recording charges and other similar fees and charges (including any penalties and interest) incurred in connection with the
consummation of the transactions contemplated by this Agreement, if any, shall be borne and paid equally (50%-50%) by the
Skyline Members, on one hand, and CHC on the other. The Party required by applicable Law shall prepare and timely file all
Tax Returns required to be filed in respect of any such Taxes. The Skyline Members and the Members’ Representative, on
the one hand, and CHC, on the other hand, upon the other’s reasonable request, shall use their commercially reasonable
efforts to obtain any certificate or other document from any governmental authority as may be necessary to mitigate, reduce
or eliminate any transfer Tax that could be imposed with respect to the transactions contemplated hereby.

 

4.13 Employees
and Consultants. At least ten (10) days prior to the anticipated Closing Date, CHC shall notify Skyline of any
employees or consultants of Skyline that CHC does not intend employ or engage following Closing that are listed on Section ‎2.11(j) of
the Skyline Disclosure Letter. CHC will continue to employ any continuing employees through Skyline’s current payroll
and benefits provider through the end of calendar year 2020.

 

ARTICLE
V

CONDITIONS

 

5.1 Conditions
to Each Party’s Obligation to Effect the Merger.  The respective obligation of each party to effect the Merger
is subject to the fulfillment, at or prior to the Closing, of each of the following conditions:

 

(a) Stockholder
and Member Approval. 

 

(i) Skyline
Members’ Approval shall have been obtained.

 

(ii) Merger
Sub’s member approval shall have been obtained.

 

(b) State
Securities Laws.  The securities issued by CHC to the holders of the Skyline securities shall be in compliance
with federal and state securities laws.

 

(c) Injunctions
or Restraints.  No court of competent jurisdiction or other competent Governmental Entity shall have enacted,
issued, promulgated, enforced or entered any Law or Order (whether temporary, preliminary or permanent) which is then in effect
and has the effect of making illegal or otherwise restricting, preventing or prohibiting consummation of the Merger or the other
transactions hereby and no such Law or Order shall be pending.

 

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5.2 Conditions
to Obligation of CHC to Effect the Merger. The obligation of CHC to effect the Merger is further subject to the
fulfillment, at or prior to the Closing, of each of the following additional conditions (all or any of which may be waived in
whole or in part by CHC in its sole discretion):

 

(a) Representations
and Warranties.  The representations and warranties made by Skyline in this Agreement shall be true and correct in all
material respects (except that where any statement in a representation or warranty expressly includes a standard of materiality,
such statement shall be true and correct in all respects) when made and as of the Closing Date as though made on and as of the
Closing Date or, in the case of representations and warranties made as of a specified date earlier than the Closing Date, on and
as of such earlier date only. Skyline shall have delivered to CHC a certificate, dated the Closing Date and executed in the name
and on behalf of Skyline by its Chief Executive Officer, to such effect.

 

(b) Performance
of Obligations.  Skyline shall have performed and complied with, in all material respects, each agreement, covenant and
obligation required by this Agreement and all other Transaction Documents to which it is a party to be so performed or complied
with by Skyline at or prior to the Closing, and Skyline shall have delivered to CHC a certificate, dated the Closing Date and executed
in the name and on behalf of Skyline by its Chief Executive Officer, to such effect.

 

(c) Governmental
and Regulatory and Other Consents and Skyline Approvals.  Other than the filing of the Articles of Merger and
the receipt of the Skyline Members’ Approval, all consents, approvals and actions of, filings with and notices to any Governmental
Entity or any other public or private third parties required of CHC, Skyline or any of their respective subsidiaries to consummate
the Merger and the transactions contemplated hereby, including those set forth in Section ‎5.2
of the Skyline Disclosure Letter shall have been made or obtained, all in form and substance reasonably satisfactory to CHC and
CHC shall be able to issue the shares of CHC Common Stock in the Merger pursuant to an exemption from the registration requirements
under the Securities Act under Regulation D promulgated thereunder.

 

(d) Proceedings.  All
proceedings to be taken on the part of Skyline in connection with the transactions contemplated hereby and all documents incident
thereto shall be reasonably satisfactory in form and substance to CHC, and CHC shall have received copies of all such documents
and other evidences as CHC may reasonably request in order to establish the consummation of such transactions and the taking of
all proceedings in connection therewith.

 

(e) Skyline
Material Adverse Effect.  Since the date hereof, there shall not have been any Skyline Material Adverse Effect
or any event, change or effect that would, individually or in the aggregate, reasonably be expected to have an Skyline Material
Adverse Effect.

 

(f) CHC
Financing.  CHC shall have consummated a debt or equity offering, or an offering of debt and equity securities, in which
CHC received gross proceeds of at least $5,000,000.

 

(g) Skyline
Warrants. Skyline shall have provided CHC evidence reasonably satisfactory to CHC that all Skyline Warrants shall have been
exercised or terminated.

 

5.3 Conditions
to Obligation of Skyline to Effect the Merger.  The obligation of Skyline to effect the Merger is further subject to
the fulfillment, at or prior to the Closing, of each of the following additional conditions (all or any of which may be
waived in whole or in part by Skyline in its sole discretion):

 

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(a) Representations
and Warranties. The representations and warranties made by CHC in this Agreement shall be true and correct in all
material respects (except that where any statement in a representation or warranty expressly includes a standard of materiality,
such statement shall be true and correct in all respects) when made and as of the Closing Date as though made on and as of the
Closing Date or, in the case of representations and warranties made as of a specified date earlier than the Closing Date, on and
as of such earlier date only. CHC shall have delivered to Skyline a certificate, dated the Closing Date and executed in the name
and on behalf of CHC by its Chief Executive Officer and its Chief Financial Officer, to such effect.

 

(b) Performance
of Obligations. CHC shall have performed and complied with, in all material respects, each agreement, covenant and
obligation required by this Agreement and all other Transaction Documents to which it is a party to be so performed or complied
with by CHC at or prior to the Closing, and CHC shall have delivered to Skyline a certificate, dated the Closing Date and executed
in the name and on behalf of CHC by its Chief Executive Officer or President, to such effect.

 

(c) Governmental
and Regulatory and Other Consents and CHC Approvals. Other than the filing of the Articles of Merger, all consents,
approvals and actions of, filings with and notices to any Governmental Entity or any other public or private third parties required
of Skyline, CHC or any of their respective subsidiaries to consummate the Merger and the transactions contemplated hereby, including
those set forth in Section ‎5.3(c) of the CHC
Disclosure Letter shall have been made or obtained, all in form and substance reasonably satisfactory to Skyline.

 

(d) Proceedings.  All
proceedings to be taken on the part of CHC in connection with the transactions contemplated hereby and all documents incident thereto
shall be reasonably satisfactory in form and substance to Skyline, and Skyline shall have received copies of all such documents
and other evidences as Skyline may reasonably request in order to establish the consummation of such transactions and the taking
of all proceedings in connection therewith.

 

(e) CHC
Material Adverse Effect. Since the date hereof, there shall not have been any CHC Material Adverse Effect or any
event, change or effect that would, individually or in the aggregate, reasonably be expected to have a CHC Material Adverse Effect.

 

(f) Funding.
CHC will have paid the CHC Cash Consideration and the Representative Amount pursuant to Section 1.7(a)(i) and Section
1.7(d), respectively, and shall have delivered the CHC Term Debentures and the CHC Convertible Debentures pursuant to Section
1.7(a)(ii) and Section 1.7(a)(iii), respectively.

 

(g) CHC
Financing. CHC shall have consummated an offering of equity securities in which CHC shall have received gross cash proceeds
of at least $12,000,000 and CHC shall have converted into CHC equity an additional $5,000,000 of CHC debt securities currently
outstanding, following which the CHC Common Stock shall have been listed on the NYSE American Stock Exchange or the NASDAQ National
Market System, or another national stock exchange.

 

ARTICLE
VI

TERMINATION

 

6.1 Termination. This
Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at any time prior to the Effective Time:

 

(a) Mutual
Consent.  By mutual written agreement of each of (x) CHC and (y) Skyline duly authorized by action taken by or on behalf
of their respective Boards of Directors;

 

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(b) Expiration
of Time.  By either Skyline or CHC upon notification to the non-terminating party by the terminating party:

 

(i) at
any time after September 30, 2020, if the Merger shall not have been consummated on or prior to such date and such failure to consummate
the Merger is not caused by a breach of this Agreement by the terminating party;

 

(ii) if
there has been a material breach of any representation, warranty, covenant or agreement on the part of the non-terminating party
set forth in this Agreement, which breach is not curable or, if curable, has not been cured within thirty (30) days following receipt
by the non-terminating party of notice of such breach from the terminating party; or

 

(iii) if
any court of competent jurisdiction or other competent Governmental Entity shall have issued an Order or Law making illegal or
otherwise restricting, preventing or prohibiting the Merger and such Order or Law shall have become final and non-appealable.

 

(c) Bid
Price of CHC Common Stock. By Skyline if the closing bid price of the CHC Common Stock, as reported on the OTCQB tier of the
OTC Markets, Inc., is less than $1.00 per share (subject to adjustment for stock splits, stock combinations and the like) for a
period of five (5) consecutive trading days prior to the Closing Date.

 

6.2 Effect
of Termination. If this Agreement is validly terminated by either Skyline or CHC pursuant to Section ‎6.1,
this Agreement will forthwith become null and void and there will be no Liability or obligation on the part of either Skyline
or CHC (or any of their respective Representatives or Affiliates), except: (i) that the provisions of Section ‎‎4.5
(Access to Information; Confidentiality), this Section ‎6.2 and ‎ARTICLE
X, and, in each case, the provisions of this Agreement that interpret or relate to such provisions will continue to apply following
any such termination; and (ii) that nothing contained herein shall relieve any Party from Liability for willful breach of its
representations, warranties, covenants or agreements contained in this Agreement.

 

ARTICLE
VII

INDEMNIFICATION; MEMBERS’ REPRESENTATIVE; EQUITABLE RELIEF

 

7.1 Survival.

 

(a) Except
in the case of fraud, the representations and warranties of the Skyline, CHC and Merger Sub, as applicable, contained in ARTICLE
II and ARTICLE III of this Agreement and the covenants and agreements of the Skyline Members, Skyline, CHC and Merger Sub, as applicable,
contained in this Agreement will each survive the Closing Date but only to the following extent: (i) all covenants and agreements
that will survive the Closing Date in accordance with their respective terms; (ii) except as provided in clause (iii) below,
the representations and warranties contained in ARTICLE II and ARTICLE III of this Agreement shall survive the Closing Date until
the date that is 180 days following the Closing Date (the “Basic Indemnification Period”); and (iii) the representations
and warranties set forth in Section 2.1, Section 2.2, Section 2.3, Section 2.4, Section ‎2.15,
Section 3.1, Section 3.2, Section 3.3, and Section 3.4 shall survive the Closing Date through the end
of the applicable statute of limitations (the “Fundamental Representations”).

 

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(b) All
claims for indemnification must be asserted on or prior to the date of the termination of the respective survival periods set forth
in ‎Section 7.1(a) except such claims may be pursued thereafter if written notice thereof in accordance with the terms
hereof was duly given within such period. If any claim has been asserted in accordance with the terms hereof prior to the expiration
of the applicable survival period, such claim, if unresolved as of such expiration date, shall not be extinguished as barred by
the expiration of the relevant representation and warranty and such claims shall survive until finally resolved by a settlement
agreement executed by the applicable parties or by binding arbitration in accordance with this Article VII. Any claim for indemnification
not made by CHC or the Members’ Representative (for himself or herself or on behalf of any Skyline Member), as applicable,
on or prior to the date of expiration of the applicable survival period will be irrevocably and unconditionally released and waived.

 

7.2 General
Indemnification Obligations.

 

(a) Subject
to the terms, conditions and limitations set forth in this ARTICLE VII , from and after the Closing, the Skyline Members shall,
severally and not jointly, indemnify and hold harmless CHC, the Surviving Company and their respective successors and permitted
assigns, and the officers, employees, directors, managers, members, Affiliates, partners and stockholders of CHC (collectively,
the “CHC Indemnitees”) from and against any and all losses, liabilities, claims, damages, penalties, fines,
judgments, awards, settlements, Taxes, costs, fees (including reasonable investigation fees), expenses (including reasonable attorneys’
fees) and disbursements (collectively, “Losses”) actually incurred by any of the CHC Indemnitees following the
Closing Date based upon or arising from (i) any breach of or inaccuracy in the representations and warranties of Skyline contained
in ARTICLE II of this Agreement or in a certificate delivered by or on behalf of Skyline pursuant to this Agreement, (ii) any
breach of the covenants or agreements of Skyline or the Skyline Members or any of their Affiliates contained in this Agreement,
(iii) any amount that is not forgiven under the PPP Loan, provided that CHC has complied in all material respects with Section
8.4, (iv) the net amount of any accounts receivable that are not collected by CHC and the Surviving Company prior to the date
that is 180 days following the Closing Date which accounts receivable were borrowed against in an amount which is outstanding as
of the Closing Date under the ABF Loan and (v) any Retained Tax Liabilities.

 

(b) Subject
to the limitations set forth in this ARTICLE VII, from and after the Closing, each of CHC and the Surviving Company, jointly and
severally, shall indemnify and hold harmless the Members’ Representative, the Skyline Members, and their respective successors
and permitted assigns, and the officers, employees, directors, managers, members, partners and stockholders of the Skyline Members
and their heirs and personal representatives (the “Skyline Indemnitees”) from and against any and all Losses
actually incurred by any of Skyline Indemnitees following the Closing Date based upon or arising from (i) any breach of or
inaccuracy in the representations and warranties of CHC or Merger Sub contained in ARTICLE III or in a certificate delivered pursuant
to this Agreement, and (ii) any breach of the covenants or agreements of CHC, the Surviving Company or Merger Sub contained
in this Agreement.

 

7.3 Exclusive
Remedy. The Parties agree that, from and after the Closing, the sole and exclusive remedy of the Parties for any Losses
based upon, arising out of or otherwise in respect of the matters set forth in this Agreement (including representations, warranties,
covenants and agreements) and the transactions contemplated hereby, whether based in contract or tort, other than claims for fraud
on the part of a Party in connection with the Merger or the other Contemplated Transactions, are (x) the indemnification provided
in this ARTICLE VII, and (y) equitable remedies (including, but not limited to, specific performance).

 

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7.4 Limitations
on Liability and Indemnification Payments. Notwithstanding anything in this Agreement or otherwise to the contrary
(except as contemplated by the last sentence of Section ‎7.3), the right of
an Indemnitee to indemnification is limited as follows:

 

(a) The
CHC Indemnitees and Skyline Indemnitees, respectively, will be entitled to indemnification pursuant to Section ‎7.2‎(a)(i)
or Section ‎7.2‎(b)(i) on account of any Losses (other than Losses arising out of a breach of or inaccuracy
in a Fundamental Representation, which shall not be subject to this clause) solely to the extent (but only to the extent) that
the aggregate amount of all Losses actually incurred by such Indemnitees exceeds $250,000 (the “Threshold”),
in which event the CHC Indemnitees or Skyline Indemnitees, as applicable, will be entitled to indemnification for all such Losses
solely to the extent exceeding the Threshold. In determining whether the applicable Threshold has been achieved, Losses relating
to a particular event, occurrence, or breach will be counted and included only to the extent they exceed $10,000 individually,
such that claims involving Losses below that amount will be deemed to be and treated as de minimis and not count toward
the Threshold, or otherwise be included in determining whether the Threshold has been hit).

 

(b) The
CHC Indemnitees will not be entitled to assert any claims or recovery for Losses pursuant to Section 7.2(a)(i) (other than
Losses arising out of a breach or inaccuracy of a Fundamental Representation, which shall not be subject to this clause), or Section
7.2(a)(iii), Section 7.2(a)(iv) or Section 7.2(a)(v) having an aggregate Value in excess of the Set-Off Amount. The
CHC Indemnitees will not be entitled to assert any claims or recovery for Losses pursuant to Section 7.2(a)(i) arising out of a
breach or inaccuracy of a Fundamental Representation having an aggregate Value in excess of the Merger Consideration. No Skyline
Member shall be liable to the CHC Indemnitees pursuant to Section 7.2(a)(i) for any Losses in excess of the aggregate Value of
the Merger Consideration received or to be received by such Skyline Member. Additionally, the Skyline Indemnitees will not be entitled
to assert any claims or recovery for Losses pursuant to Section ‎7.2‎(b)(i) (other than Losses arising out
of a breach or inaccuracy of a Fundamental Representation, which shall not be subject to this clause) in the aggregate more than
$2,000,000; provided, however, that such limitation will not apply or be applicable to any claims arising out of or resulting from
any failure of CHC pay or to deliver consideration or payments due under this Agreement to the Skyline Members.

 

(c) An
Indemnitee’s right to indemnification pursuant to Section ‎7.2 on account of any Losses will be reduced
by all insurance or other third party indemnification proceeds actually received by the Indemnitee (net of collection costs, deductibles,
and retroactive premium adjustments related to the insurance claim). An Indemnitee shall use commercially reasonable efforts to
claim and recover any Losses suffered by such Indemnitees under any such insurance policies or other third-party indemnities; provided,
however, that an Indemnitee is not required to initiate pursuit of such insurance or indemnity proceeds prior to asserting any
claim or claims under this Article VII. The Skyline Indemnitees shall remit to CHC any such insurance or other third-party proceeds
that are paid to the Skyline Indemnitees with respect to Losses for which the Skyline Indemnitees have been previously compensated
pursuant to Section 7.2(b). The CHC Indemnitees shall remit to the Members’ Representative for distribution any such
insurance or other third-party proceeds that are paid to the CHC Indemnitees with respect to Losses for which the CHC Indemnitees
have been previously compensated pursuant to Section 7.2(a).

 

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(d) The
Indemnitees will not be entitled to indemnification hereunder for punitive damages except with respect to any such damages paid
or payable by an Indemnitee to a third party pursuant to a third-party claim.

 

(e) For
purposes of determining the amount of any Loss subject to indemnification hereunder (but, for the avoidance of doubt, not for purposes
of determining whether any breach has occurred), the representations, warranties, covenants and agreements set forth in this Agreement
shall be considered without regard to any materiality or Material Adverse Effect qualification set forth therein.

 

(f) No
Indemnitee shall be entitled to be compensated more than once for the same Loss.

 

(g) The
right of an Indemnitee to indemnification, payment of any Losses or other remedy based on the representations, warranties, covenants
and agreements of the Indemnifying Party pursuant to this Agreement or any agreements entered into in connection herewith shall
not be limited or affected by any investigation or review conducted by such Indemnitee or by its accountants, counsel or other
representatives prior to the Effective Time, nor any knowledge acquired (or capable of being acquired) at any time by such Indemnitee,
whether before or after execution of this Agreement or the Closing Date, with respect to the accuracy of or compliance with any
such representations, warranties, covenants or agreements of the Indemnifying Party.

 

7.5 Procedures.

 

(a) Notice
of Losses by Skyline Indemnitee. As soon as reasonably practicable after a Skyline Indemnitee has actual knowledge of any claim
pursuant to Section 7.2(b) that may result in a Loss (a “Claim”) but in no event more than fifteen (15)
days after becoming aware of such Claim, the Members’ Representative shall give notice thereof (a “Claims Notice”)
to CHC. A Claims Notice must describe the Claim in reasonable detail, including which section of this Agreement was breached, and
set forth the Members’ Representative’s good faith calculation of the Loss that has been suffered by the applicable
Skyline Indemnitee. No delay in or failure to give a Claims Notice by the Members’ Representative to CHC pursuant to this
‎Section 7.1(a) will adversely affect any of the rights or remedies that Skyline Indemnitees have under this Agreement,
or alter or relieve CHC or the Surviving Company of their obligation to indemnify the applicable Skyline Indemnitee, except to
the extent that either CHC or the Surviving Company is materially prejudiced thereby. CHC shall respond to the Members’ Representative
(a “Claim Response”) within 30 calendar days (the “Response Period”) after the date that
the Claims Notice is received by CHC. Any Claim Response must specify whether CHC disputes the Claim described in the Claims Notice
(or the amount of Losses set forth therein). If CHC fails to give a Claim Response within the Response Period, CHC will be deemed
not to dispute the Claim described in the related Claims Notice. If CHC elects not to dispute a Claim described in a Claims Notice,
then the amount of Losses alleged in such Claims Notice with respect to such undisputed Claim will be conclusively deemed to be
an obligation of CHC, and CHC shall, at its election, within three Business Days of the last day of the applicable Response Period,
either make payment to the applicable Skyline Indemnitee(s) in cash in an aggregate amount equal to the amount specified in the
Claims Notice with respect to such undisputed Claim, or issue to the applicable Skyline Indemnitee(s) such number of shares of
CHC Common Stock as have an aggregate Value equal to the amount specified in the Claims Notice with respect to such undisputed
Claim, in either case subject to the limitations contained in this ARTICLE VII. If CHC delivers a Claim Response within the Response
Period indicating that it disputes one or more of the Claims identified in the Claims Notice, CHC and the Members’ Representative
shall promptly meet and use their commercially reasonable efforts to settle the dispute. In connection with the commencement of
any arbitration proceedings pursuant to Section 7.5(c), upon either (i) receipt of the final binding decision of the Arbitrator
with respect to the subject matter of a Claims Notice or (ii) written agreement of CHC and Members’ Representative with respect
to the resolution of the subject matter of a Claims Notice, the Skyline Members shall be entitled to recover from CHC an amount
of Losses in accordance with such determination or resolution, subject to the limitations contained in this ARTICLE VII.

 

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(b) Notice
of Losses by CHC Indemnitee. As soon as reasonably practicable after a CHC Indemnitee has actual knowledge of any claim pursuant
to Section 7.2(a) that may result in a Loss (a “CHC Claim”) but in no event more than fifteen (15) days
after becoming aware of such CHC Claim, then CHC shall give notice thereof (a “CHC Claim Notice” and together
with a Claims Notice, a “Notice”) to the Members’ Representative. A CHC Claim Notice must describe the
CHC Claim in reasonable detail, including which section of this Agreement was breached, and set forth CHC’s good faith calculation
of the Loss that has been suffered by a CHC Indemnitee. No delay in or failure to give a CHC Claims Notice by CHC to the Members’
Representative pursuant to this Section 7.5(b) will adversely affect any of the rights or remedies that a CHC Indemnitee
has under this Agreement, except to the extent that the Skyline Members and/or Members’ Representative is materially prejudiced
thereby. The Members’ Representative shall respond to CHC (a “Dispute Notice”) within 30 calendar days
(the “Dispute Period”) after the date the CHC Claim Notice is received by the Members’ Representative.
Any Dispute Notice must specify whether the Members’ Representative disputes a CHC Claim described in a CHC Claim Notice
(or the amount of Losses set forth therein). If the Members’ Representative fails to give a Dispute Notice within the Dispute
Period, the Members’ Representative will be deemed not to dispute the CHC Claim described in the CHC Claim Notice. If the
Members’ Representative elects not to dispute a CHC Claim described in a CHC Claim Notice, then CHC shall be entitled to
recover from the Skyline Members the amount of Losses specified in the CHC Claim Notice, subject to the limitations contained in
this ARTICLE VII. If the Members’ Representative delivers a Dispute Notice to CHC within the Dispute Period, CHC and the
Members’ Representative shall promptly meet and use their commercially reasonable efforts to settle the dispute as to whether
and to what extent the CHC Indemnitees are entitled to indemnification on account of such CHC Claim. In connection with the commencement
of any arbitration proceedings pursuant to Section 7.5(c), upon either (i) receipt of the final binding decision of the Arbitrator
with respect to the subject matter of a Dispute Notice or (ii) written agreement of CHC and Members’ Representative with
respect to the resolution of the subject matter of a Dispute Notice, CHC shall be entitled to recover from the Skyline Members
an amount of Losses in accordance with such determination or resolution, subject to the limitations contained in this ARTICLE VII.

 

(c) Arbitration.
CHC and the Members’ Representative shall each provide a list of unresolved CHC Claims and Claims or anticipated claims
on the 150th day following the Closing Date (the “Open Dispute Notice”). For the 30 day period following the
delivery of an Open Dispute Notice, CHC and the Members’ Representative shall meet and use their commercially reasonable
efforts to settle any disputes. If CHC and the Members’ Representative are unable to reach agreement within 30 calendar
days after (i) the conclusion of the Response Period, (ii) CHC receives a Dispute Notice, or (iii) delivery of the Open Dispute
Notices, then CHC and the Members’ Representative shall submit, in writing, their briefs detailing their views as to the
correct nature and amount of each item remaining in dispute to a single arbitrator (“Arbitrator”) selected from and
administered by the Nevada office of JAMS (“JAMS”), in accordance with its then existing Comprehensive Arbitration
Rules & Procedures. The arbitration hearing shall be held in Nevada, and, unless otherwise agreed to in writing by the parties,
all substantive and procedural issues arising therein shall be governed by and construed under the laws of the State of Delaware.
The Members’ Representative and CHC shall use their commercially reasonable efforts to cause the Arbitrator to render a
written decision resolving the matters submitted to it within thirty (30) days following the submission thereof. Each party shall
bear its own attorneys’ fees, costs and disbursements arising out of the arbitration, and shall pay an equal share of the
fees and costs of the Arbitrator and JAMS; however, the Arbitrator shall be authorized to determine whether a party is the prevailing
party and, if so, to award to that prevailing party reimbursement for its reasonable attorneys’ fees, costs and disbursements,
and the fees and costs of the Arbitrator and JAMS. Any decision of the Arbitrator shall be final and binding and subject to the
limitations set forth in this ARTICLE VII.

 

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(d) Payment
of Claims. If and to the extent the CHC Indemnitees are entitled to recover any amounts pursuant to this ARTICLE VII (other
than Losses arising out of a breach or inaccuracy of a Fundamental Representation), such amounts shall be recovered only by reducing
the principal amount of CHC Convertible Debentures to be issued by CHC pursuant to Section 1.7(b) by a principal amount
of CHC Convertible Debentures with a Value equal to such amounts. Notwithstanding anything in this Agreement to the contrary, the
CHC Indemnitees shall be entitled to recover any Losses arising out of a breach of inaccuracy of a Fundamental Representation (i)
first by reducing the principal amount of CHC Convertible Debentures to be issued by CHC pursuant to Section 1.7(b) by a
principal amount of CHC Convertible Debentures with a Value up to the Set-Off Amount in accordance with the foregoing terms, (ii)
second, from the Skyline Members pro rata pursuant to the percentages set forth in Section 1.7(a)(i) of the Consideration Spreadsheet
by set-off and cancellation against the outstanding CHC Convertible Debentures with a Value equal to such Losses in accordance
with the Consideration Spreadsheet, (iii) third, from the Skyline Members pro rata pursuant to the percentages set forth in Section
1.7(a)(i) of the Consideration Spreadsheet by setoffs and cancellation against the outstanding CHC Term Notes in a principal amount
equal to such Loses, and (iv) fourth, from the Skyline Members pro rata pursuant to the percentages set forth in Section 1.7(a)(i)
of the Consideration Spreadsheet in cash. Notwithstanding anything herein or otherwise to the contrary, the sole remedy for CHC
Indemnitees to recover any consideration for a breach of a Fundamental Representation is offset against the CHC Convertible Debentures,
CHC Term Debentures and cash issuable, issued or paid to the Skyline Members. If and to the extent the Skyline Indemnitees are
entitled to recover any amounts pursuant to this ARTICLE VII (other than Losses arising out of a breach or inaccuracy of a Fundamental
Representation), such amounts shall be recovered only by the issuance and delivery by CHC of shares of CHC Common Stock having
a Value equal to such amounts. Notwithstanding anything in this Agreement to the contrary, the Skyline Indemnitees shall be entitled
to recover any Losses arising out of a breach of inaccuracy of a Fundamental Representation by CHC (i) first from the issuance
of shares of CHC Common Stock having a Value of up to $2,000,000 in accordance with the foregoing terms, and (ii) second, in cash
by wire transfer of immediately available funds to the Skyline Members no later than three (3) Business Days following the determination
of any such amount pursuant to the terms of this Agreement.

 

(e) Failure
of Payment. Notwithstanding anything herein or otherwise to the contrary, except as provided in this Article VII, the Skyline
Indemnitees will not be limited in any way in their right to recover against CHC for any failure to deliver the full amount of
any and all amounts to be paid and delivered hereunder.

 

(f) Access
to Information. For all purposes of this ARTICLE VII (including those pertaining to disputes under Section 7.5(a) and
Section 7.5(b), each Party shall cooperate with and make available to the other Parties and their respective representatives
all information, records and data, and shall permit reasonable access to its facilities and personnel, as applicable, as may be
reasonably required in connection with the resolution of such disputes unless it would adversely affect the ability of a Party
to assert attorney-client privilege, attorney work product privilege or similar privilege.

 

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(g) Opportunity
to Defend Third Party Claims. In the event of any claim by a third party against a CHC Indemnitee or Skyline Indemnitee for
which indemnification is available hereunder, the party from whom indemnification is being sought (the “Indemnifying Party”),
has the right, exercisable by notice to CHC or the Members’ Representative, as applicable, within 30 calendar days of receipt
of a Notice from CHC or the Members’ Representative, as applicable, to assume and conduct the defense of such claim with
counsel selected by the Indemnifying Party and reasonably acceptable to the Indemnitee. If the Indemnifying Party has assumed such
defense as provided in this Section 7.5(g), the Indemnifying Party will not be liable for any legal expenses subsequently
incurred by any Indemnitee in connection with the defense of such claim. If the Indemnifying Party does not assume the defense
of any third party claim in accordance with this Section 7.5(g), the Indemnitee may continue to defend such claim at the
sole cost and expense of the Indemnifying Party (subject to the limitations set forth in this ARTICLE VII) and the Indemnifying
Party may still participate in, but not control, the defense of such third party claim at the Indemnifying Party’s sole cost
and expense. The Indemnitee will not consent to a settlement of, or the entry of any judgment arising from, any such claim, without
the prior written consent of the Indemnifying Party (such consent not to be unreasonably withheld, delayed or conditioned). Except
with the prior written consent of the Indemnitee, no Indemnifying Party, in the defense of any such claim, will consent to the
entry of any judgment or enter into any settlement that (i) provides for injunctive or other nonmonetary relief affecting the Indemnitee
or (ii) does not include as an unconditional term thereof the giving by each claimant or plaintiff to such Indemnitee of a release
from all liability with respect to such claim. The Party responsible for the defense of such third party claim (the “Responsible
Party”) shall, to the extent reasonably requested by the other Party, keep such other Party informed as to the status
of such claim.

 

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7.6 Members’
Representative.

 

(a) Each
Skyline Member by virtue of the approval and adoption of this Agreement or by accepting any consideration payable or issuable hereunder
shall be deemed to have constituted, appointed and empowered the Members’ Representative, for the benefit of the Skyline
Members, as the exclusive agent and attorney-in-fact to act for and on behalf of each Skyline Member, in connection with and to
facilitate the consummation of the transactions contemplated hereby, which shall include the power and authority: (i) to execute
and deliver such waivers, consents and amendments (with respect to any and all matters or issues, including those which may have
a negative impact on a Skyline Member) under this Agreement and the other agreements, documents and instruments executed in connection
herewith and the consummation of the transactions contemplated hereby as the Members’ Representative, in its sole discretion,
may deem necessary or desirable; (ii) as the Members’ Representative, to enforce and protect the rights and interests of
the Skyline Members and to enforce and protect the rights and interests of such Persons arising from the Excluded Assets, out of
or under or in any manner relating to this Agreement, and the other agreements, documents and instruments executed in connection
herewith and the transactions provided for herein and therein, and to take any and all actions which the Members’ Representative
believes are necessary or appropriate with respect to the Excluded Assets, under this Agreement and the other agreements, documents
and instruments executed in connection herewith for and on behalf of the Skyline Members, including consenting to, compromising
or settling any such claims, conducting negotiations with CHC, the Surviving Company and their respective Representatives regarding
such claims, and, in connection therewith, to (A) assert any claim or institute any action, proceeding or investigation; (B) investigate,
defend, contest or litigate any claim, action, proceeding or investigation initiated by CHC, the Surviving Company or any other
Person, or by any Governmental Entity against the Members’ Representative and/or any of the Skyline Members, and receive
process on behalf of any or all Skyline Members in any such claim, action, proceeding or investigation and compromise or settle
on such terms as the Members’ Representative shall determine to be appropriate, and give receipts, releases and discharges
with respect to, any such claim, action, proceeding or investigation; (C) file any proofs of debt, claims and petitions as the
Members’ Representative may deem advisable or necessary; (D) settle or compromise any claims asserted under this Agreement;
and (E) file and prosecute appeals from any decision, judgment or award rendered in any such action, proceeding or investigation,
it being understood that the Members’ Representative shall not have any obligation to take any such actions, and shall not
have any liability for any failure to take any such actions; (iii) to refrain from enforcing any right of the Skyline Members arising
out of or under or in any manner relating to this Agreement and the other agreements, documents and instruments executed in connection
herewith; provided, however, that no such failure to act on the part of the Members’ Representative, except as otherwise
provided in this Agreement, shall be deemed a waiver of any such right or interest by the Members’ Representative or by the
Skyline Members unless such waiver is in a writing signed by the waiving Party or by the Members’ Representative; (iv) to
make, execute, acknowledge and deliver all such other agreements, guarantees, orders, receipts, endorsements, notices, requests,
instructions, certificates, stock powers, letters and other writings, and, in general, to do any and all things and to take any
and all action that the Members’ Representative, in its sole and absolute discretion, may consider necessary, proper or convenient
in connection with or to carry out the transactions contemplated by this Agreement and the other agreements, documents and instruments
executed in connection herewith; (v) to engage special counsel, accountants and other advisors and incur such other expenses on
behalf of the Members in connection with any matter arising under this Agreement and the other agreements, documents and instruments
executed in connection herewith; and (vi) to collect, hold and disburse any amounts, including any portion of the Excluded Assets
or CHC Convertible Debentures subject to set-off received by the Members’ Representative pursuant to the terms hereof in
accordance with the terms of this Agreement and the other agreements, documents and instruments executed in connection herewith.
Notwithstanding the foregoing, the Members’ Representative may resign at any time by providing written notice of intent to
resign to the Skyline Members, which resignation shall be effective upon the earlier of (A) thirty (30) calendar days following
delivery of such written notice or (B) the appointment of a successor by the Skyline Members. In addition, the Members’ Representative
may be removed by the consent of Skyline Members holding a majority of the Membership Units of Skyline outstanding prior to the
Closing Date. Skyline Members holding a majority of the Membership Units outstanding prior to the Closing Date shall appoint a
new Members’ Representative in the event of any vacancy. By executing this Agreement the Members’ Representative hereby
(x) accepts its appointment and authorization to act as Members’ Representative as attorney-in-fact and agent on behalf of
the Skyline Members in accordance with the terms of this Agreement and (y) agrees to perform its obligations under, and otherwise
comply with, this Section ‎7.5.

 

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(b) The
Members’ Representative shall be entitled to receive reimbursement from, and be indemnified by, the Skyline Members for certain
expenses, charges and liabilities as provided below. In connection with this Agreement, and in exercising or failing to exercise
all or any of the powers conferred upon the Members’ Representative hereunder, (i) the Members’ Representative shall
incur no responsibility whatsoever to any Skyline Members by reason of any error in judgment or other act or omission performed
or omitted hereunder, excepting only responsibility for any act or failure to act which represents willful misconduct and (ii)
the Members’ Representative shall be entitled to rely on the advice of counsel, public accountants or other independent experts
experienced in the matter at issue, and any error in judgment or other act or omission of the Members’ Representative pursuant
to such advice shall in no event subject the Members’ Representative to liability to any Skyline Member. Each Skyline Member
shall indemnify, severally in proportion to its Pro Rata Share and not jointly, the Members’ Representative against all Losses,
including reasonable attorneys’, accountants’ and other experts’ fees and the amount of any judgment against
them, of any nature whatsoever (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating,
preparing or defending against any litigation, commenced or threatened or any claims whatsoever), arising out of or in connection
with any claim, investigation, challenge, action or proceeding or in connection with any appeal thereof, relating to the acts or
omissions of the Members’ Representative hereunder. The foregoing indemnification shall not apply in the event of any action
or proceeding which finally adjudicates the liability of the Members’ Representative hereunder for its willful misconduct.
In the event of any indemnification hereunder, upon written notice from the Members’ Representative to the Skyline Members
as to the existence of a deficiency toward the payment of any such indemnification amount, each Skyline Member shall promptly deliver
to the Members’ Representative full payment of such Skyline Member’s share of the amount of such deficiency in proportion
to such Skyline Member’s Pro Rata Share. The Members’ Representative shall only have the duties expressly stated in
this Agreement and shall have no other duty, express or implied. The Members’ Representative may engage attorneys, accountants
and other professionals and experts at the cost and expense of the Skyline Members.

 

(c) All
of the indemnities, immunities and powers granted to the Members’ Representative under this Agreement shall survive the Effective
Time and/or any termination of this Agreement.

 

(d) CHC
and the Surviving Company shall have the right to rely upon all actions taken or omitted to be taken by the Members’ Representative
pursuant to this Agreement, all of which actions or omissions shall be legally binding upon the Skyline Members.

 

(e) The
grant of authority provided for herein (i) is coupled with an interest and shall be irrevocable and survive the death, incompetency,
bankruptcy or liquidation of any Skyline Member and (ii) shall survive the consummation of the Merger, and any action taken by
the Members’ Representative pursuant to the authority granted in this Agreement shall be effective and absolutely binding
on each Skyline Member notwithstanding any contrary action of or direction from such Skyline Member, except for actions or omissions
of the Members’ Representative constituting willful misconduct.

 

(f) Each
of Skyline, Merger Sub and CHC acknowledges and agrees that the Members’ Representative is a party to this Agreement solely
to perform certain administrative functions in connection with the consummation of the transactions contemplated hereby. Accordingly,
each of Skyline, Merger Sub and CHC acknowledges and agrees that, other than in the Members’ Representative’s role
as a Skyline Member (if applicable), the Members’ Representative shall have no liability to, and shall not be liable for
any Losses of, any of Skyline, Merger Sub or CHC or to any Person in connection with any obligations of the Members’ Representative
under this Agreement or otherwise in respect of this Agreement or the transactions contemplated hereby, except to the extent such
Losses shall be proven to be the direct result of fraud by the Members’ Representative in connection with the performance
by the Members’ Representative of its obligations hereunder.

 

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7.7 Treatment
of Indemnity Payments. All indemnification payments made under this Agreement shall be deemed to be an adjustment to the Merger
Consideration to the extent permitted by applicable Law.

 

ARTICLE
VIII

COVENANTS

 

8.1 Expenses.
Except as otherwise specifically set forth elsewhere in this Agreement, including Section 1.7(a), whether or not the Merger
is consummated, all costs and expenses incurred in connection with this Agreement and the Contemplated Transactions shall be
paid by the Party incurring such cost or expense.

 

8.2 Stockholder
or Member Litigation. Each Party shall promptly provide a notice to the other of any Transaction Legal Action brought by
any stockholder or member of such Party, as the case may be, against such Party and/or its Representatives relating to this
Agreement or the Contemplated Transactions, including the Merger, and shall promptly inform such other Parties of the status
thereof.

 

8.3 Public
Announcements. The initial press release with respect to this Agreement and the Contemplated Transactions shall be a
release mutually agreed to by Skyline and CHC. After delivery of the initial press release, Skyline will not issue any press
release except with the prior review by and approval of CHC. Skyline and CHC agree that no public release or other public
announcement, including any releases, announcements or other correspondence with customers or suppliers of any Party,
concerning the Contemplated Transactions shall be issued by (x) CHC or its affiliates without the prior written consent of
the Member Representative (which consent shall not be unreasonably withheld, conditioned or delayed), or (y) the Member
Representative, Skyline or its affiliates without the prior written consent of CHC (which consent shall not be unreasonably
withheld, conditioned or delayed), except as such release or announcement may be required by applicable Law or the rules or
regulations of the SEC or a Governmental Entity to which the relevant Party is subject, wherever situated, in which case the
Party required to make the release or announcement shall consult with the other Parties about, and allow the other Parties
reasonable time to comment on, such release or announcement in advance of such issuance.

 

8.4 PPP Loan. 
Prior to the Closing Date, the Members’ Representative shall notify CHC of the outstanding balance of the PPP Loan. Following
the Closing, CHC shall cause the Surviving Company to continue to comply with the terms of the PPP Loan so as to maximize the
amount to be forgiven, including submitting any required applications for forgiveness in a timely manner, as directed by the Members’
Representative.

 

ARTICLE
IX

DEFINED TERMS

 

9.1 Definitions.
For purposes of this Agreement, the following terms will have the following meanings when used herein with initial capital
letters:

 

“ABF Loan”
means that certain Loan and Security Agreement, dated September 18, 2019 between Skyline and Access Business Financing LLC.

 

“Action”
means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity.

 

“Affiliate”
as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person; for purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the
ownership of voting securities, by Contract or otherwise.

 

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“Business
Day” means a day other than a Saturday, Sunday or any day on which commercial banks located in the State of New York
are authorized or obligated to close.

 

“Computer
Software” means all computer programs, databases, compilations, data collections (in each case, whether in human-readable,
machine readable, source code or object code form) and documentation related to the foregoing.

 

“Confidentiality
Agreement” means that certain Mutual Confidentiality Agreement between CHC and Skyline dated March 10, 2020.

 

“Contemplated
Transactions” means the Merger and the other transactions contemplated by this Agreement and in the other Transaction
Documents.

 

“Contract”
means any contract, agreement, license, lease, guaranty, indenture, sales or purchase order or other legally binding commitment
in the nature of a contract (whether or not written) to which a Person is a party.

 

“CHC Intellectual
Property Rights” means any Intellectual Property Rights owned by, licensed to or registered to CHC or any of its subsidiaries,
as applicable.

 

“CHC Material
Adverse Effect” means a Material Adverse Effect on CHC.

 

“CHC Registered
Intellectual Property Rights” means any Registered Intellectual Property Rights included in CHC Intellectual Property
Rights.

 

“Derivative
Security” means any option, warrant, equity security, equity-linked security, appreciation rights, phantom equity, or
similar ownership interests, calls, rights (including preemptive rights), Contracts, commitments or agreements of any character
to which the specified Person is a party or by which either is bound obligating such Person to issue, deliver or sell, or cause
to be issued, delivered or sold, or repurchase, redeem or otherwise acquire, or cause the repurchase, redemption or acquisition
of, or deliver cash or other consideration with respect to, any shares of capital stock or similar ownership interests or equity-linked
securities of such Person or obligating such Person to grant, extend, accelerate the vesting of or enter into any such subscription,
option, warrant, equity security, equity-linked security, appreciation rights, call, right, commitment or agreement.

 

“DOL”
means the United States Department of Labor.

 

“Environmental
Claim” means any and all administrative, regulatory or judicial Legal Actions alleging Liability arising out of or resulting
from: (1) the presence or Release into the environment of any Hazardous Substance at the Skyline Leased Real Estate or CHC Leased
Real Estate, as applicable; or (2) any violation of Environmental Law.

 

“Environmental
Laws” means all federal, state or local statutes, laws, regulations, judgments and orders in effect on the Effective
Time and relating to protection of human health or the environment, including laws and regulations relating to Releases or threatened
Releases of Hazardous Substances, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Substances.

 

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“Environmental
Permits” means all governmental licenses, permits, registrations and government approvals issued pursuant to Environmental
Law.

 

“Financial
Advisor” means any investment bank or financial advisor or Person that acts in any similar capacity that provides financial
or investment advisor services to a Party in connection with the Merger.

 

“Funded Indebtedness”
means, without duplication to current liabilities, all: (i) obligations for borrowed money (including any unpaid principal, premium,
accrued and unpaid interest, prepayment penalties, commitment and other fees, reimbursements, indemnities and all other amounts
payable in connection therewith); (ii) liabilities evidenced by bonds, debentures, notes, or other similar instruments or
debt securities; excluding the PPP Loan and the ABF Loan.

 

“Hazardous
Substances” means any chemicals, materials or substances which are defined as or included in the definition of 
“hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous
wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants” or similar
terms under any Environmental Law.

 

“Intellectual
Property Rights” means all worldwide (a) inventions, whether or not patentable, (b) patents and patent applications,
(c) trademarks, trademark applications, service marks, service mark applications, trade dress, logos, Internet domain names and
trade names, whether or not registered, and all goodwill associated therewith, (d) rights of publicity and other rights to use
the names and likeness of individuals, (e) copyrights and related rights, whether or not registered, (f) Computer Software, data,
databases, files, and documentation and other materials related thereto, (g) trade secrets and all confidential, technical, technological,
industrial, business processes and business information, (h) know how, (i) all rights in any of the foregoing provided by bilateral
or international treaties or conventions, and (j) all rights to sue or recover and retain damages and costs and attorneys’
fees for past, present and future infringement or misappropriation of any of the foregoing.

 

“International
Employee Plan” means a Skyline Plan or CNC Plan, as applicable, that has been adopted or maintained by a Person, whether
informally or formally, for the benefit of current or former employees of such Person outside the United States.

 

“IRS”
means the United States Internal Revenue Service.

 

“Knowledge”
means, with respect to Skyline or Skyline, the actual knowledge after reasonable enquiry of Harald Braun and John Helson, and with
respect to CHC, the actual knowledge after reasonable enquiry of Daniel L. Hodges or Brian T. Mihelich; provided in each case that
such enquiry shall not require making enquiries of customers, suppliers or other third-party contractors.

 

“Legal Action”
means any claim, action, suit, arbitration, proceeding or governmental investigation or proceeding.

 

“Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured or
determined or determinable, including, without limitation, those arising under any Law, Legal Action or Order and those arising
under any contract, agreement, arrangement, commitment or undertaking.

 

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“License Agreements”
means all agreements (whether written or oral, including license agreements, research agreements, development agreements, distribution
agreements, consent to use agreements and covenants not to sue, or settlement agreements containing like provisions) to which a
Person is a party or otherwise bound, pursuant to which a Person has granted or been granted any right to use, exploit or practice
any Intellectual Property Rights, or that restrict the right of a Person to use or enforce any Intellectual Property Rights.

 

“Licensed
Intellectual Property Rights” means any Intellectual Property Rights owned by a third party that a Person has a right
to use, exploit or practice by virtue of a license grant, immunity from Legal Action or otherwise.

 

“Liens”
means all liens, pledges, hypothecations, charges, mortgages, security interests, encumbrances, claims, infringements, interferences,
options, right of first refusals, preemptive rights, community property interests or restriction of any nature (including any restriction
on the voting of any security, any restriction on the transfer of any security or other asset, any restriction on the possession,
exercise or transfer of any other attribute of ownership of any asset), other than Permitted Liens.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition, state of facts or development or change which, individually
or in the aggregate (i) is reasonably expected to result in any change or effect that is materially adverse to the business, results
of operations, condition (financial or otherwise), properties, assets liabilities or results of operations of the specified Party
and its subsidiaries, taken as a whole; or (ii) is reasonably expected to prevent or materially impede, interfere with, hinder
or delay the consummation by such Party of the Contemplated Transactions on a timely basis; provided, however,
that none of the following shall be deemed, either alone or in combination, to constitute, and none of the following shall be taken
into account in determining whether there has been or will be, a Material Adverse Effect: (A) changes generally affecting the economy
or financial or securities markets; (B) the announcement of the Contemplated Transactions, including the impact thereof on the
relationships, contractual or otherwise, of the specified person with employees, customers, suppliers or counterparty to any Contract
of such Party; (C) any change, circumstance, condition, development, effect, event, occurrence or state of facts arising directly
or indirectly from or otherwise relating to any outbreak or escalation of war, act of terrorism, national or international calamity,
natural disaster (including hurricanes, tornadoes, floods or earthquakes), epidemic, pandemic or any other similar event; (D) changes
(including changes of applicable Law) or general conditions in the industry in which such Party operates; (E) changes in GAAP
(or authoritative interpretations of GAAP); (F) any Transaction Legal Action, to the extent relating to the negotiations between
the Parties and the terms and conditions of this Agreement; and (G) compliance with the terms of, or the taking of any action required
by, this Agreement (including, without limitation and for the avoidance of doubt, the terms of Section ‎8.3);
provided, further, however, that any event, change and effect referred to in clauses (A), (C) or (D) immediately
above shall be taken into account in determining whether a Material Adverse Effect with respect to the specified Person has occurred
or would reasonably be expected to occur to the extent that such event, change or effect has a materially disproportionate effect
on such Party, compared to other participants in the industries in which such Party conducts its businesses.

 

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“Material
Agreements” means each Contract to which the specified Party is a party or subject to or by which its assets are bound
which: (a) provides for obligations, payments, Liabilities, consideration, performance of services or the delivery of goods to
or by such Party of any amount or value reasonably expected to be in excess of  $100,000 in any annual period; (b) contains
covenants limiting the freedom of such Party to engage in any line of business in any geographic area or to compete with any Person
or restricting the ability of such Party to acquire equity interests in any Person; (c) is an employment or severance contract
or indemnification contract, or a consulting or non-compete agreement, applicable to any employee of such Party whose annual total
compensation exceeds $120,000 or any director of such Party; (d) relates to, or is evidence of, or is a guarantee of, or provides
security for, indebtedness or the deferred purchase price of property (whether incurred, assumed, guaranteed or secured by any
asset of such Party); (e) is a letter of credit, bond or similar arrangement running to the account of, or for the benefit of,
such Party in an amount in excess of  $100,000; (f) is a lease or agreement under which such Party is a lessor of or permits
any third party to hold or operate any property owned or controlled by such Party; (g) relates to the use of, or the right to use,
Intellectual Property Rights by such Party, except for any of the foregoing related to the use of generally available Computer
Software that is sold or licensed under shrink-wrap or click-through terms; (h) is a collective bargaining agreement; (i) is a
joint venture or partnership contract or a limited liability company operating agreement; (j) is entered into with, or otherwise
relates to, any Affiliate, officer or director or their family members of such Party; (k) cannot be terminated on less than 60
days’ notice without penalty or is continuous over a period of more than one year from the Effective Date and cannot be terminated
on less than 60 days’ notice, in either case without penalty or payment of an amount (including acceleration of obligations)
of $50,000 or more; (l) provides for the payment of cash or other compensation or benefits upon the Merger and the consummation
of the Contemplated Transactions; (m) relates to any loan to any directors, officers or Affiliates of such Party; (n) relates to
voting, transfer or other arrangements related to any equity interests of such Party or warrants, options or other rights to acquire
any equity interests of such Party (other than this Agreement, the Merger and the Contemplated Transactions); or (o) is otherwise
material to the operations and business of such Party.

 

“Membership
Units” means Class A Units, Class B Units and
Common Units of Skyline, as defined in the Skyline Operating Agreement.

 

“Members’
Representative” means John Helson, or any other Person selected as a successor thereto in accordance with the provisions
of this Agreement.

 

“Ordinary
Course of Business” means an action which is taken in the ordinary course of the normal day-to-day operations of the
Person taking such action consistent with the past practices of such Person, is not required to be authorized by the board of directors
of such Person (or by any Person or group of Persons exercising similar authority) and is similar in nature and magnitude to actions
customarily taken, without any authorization by the board of directors (or by any Person or group of Persons exercising similar
authority), in the ordinary course of the normal day-to-day operations of other Persons that are in the same line of business as
such Person.

 

“OTC Markets”
means the OTCQB tier of the OTC Markets, Inc. on which the CHC Common Stock is trading.

 

“Permitted
Liens” means (a) statutory Liens for current Taxes or other governmental charges not yet due and payable or the amount
or validity of which is being contested in good faith and for which adequate reserves have been established, (b) mechanics’,
carriers’, workers’, repairers’ and similar statutory Liens arising or incurred in the Ordinary Course of Business
for amounts which are not delinquent or which are being contested by appropriate proceedings, (c) zoning, entitlement, building
and other land use regulations imposed by Governmental Entities having jurisdiction over such Person’s owned or leased real
property, which are not violated by the current use and operation of such real property, (d) covenants, conditions, restrictions,
easements and other similar non-monetary matters of record affecting title to such Person’s owned or leased real property,
which do not materially impair the occupancy or use of such real property for the purposes for which it is currently used in connection
with such Person’s businesses, (e) any right of way or easement related to public roads and highways, which do not materially
impair the occupancy or use of such real property for the purposes for which it is currently used in connection with such Person’s
businesses, (f) Liens arising under workers’ compensation, unemployment insurance, social security, retirement and similar
legislation, and (g) any other Liens that, in the aggregate, do not materially impair the value or the continued use and operation
of the assets or properties to which they relate, including without limitation, the rights to use a license under the applicable
Contract.

 

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

 

“PPP Loan”
means the loan evidenced by that certain Note, dated April 17, 2020, issued by Skyline to First Western Trust Bank.

 

“Pro Rata
Share” means each Skyline Member’s respective proportionate ownership of Skyline as set forth on Section 2.3(a)
of the Skyline Disclosure Letter and the Consideration Spreadsheet.

 

“Profit Units”
means the Class P Incentive Units of Skyline, as defined in the Skyline Operating Agreement.

 

“Registered
Intellectual Property Rights” means all patents and patent applications, registered copyrights and copyright applications,
registered trademarks and trademark applications, and any other Intellectual Property Right that is the subject of an application,
certificate, filing, registration or other document issued by, filed with, or recorded by, any Governmental Entity.

 

“Related Party”
of any specified Person means: (i) an executive officer or director (or any Person that exercises substantially similar right and
authority) of such specified Person; (ii) any Person owning 5% or more of the voting shares of such specified Person (assuming
the exercise or conversion of any Derivative Securities of such specified Person that represents, directly or indirectly, the right
to acquire voting shares of such specified Person); (iii) any Person that can significantly influence the management or operating
policies of such specified Person, including the ability that would prevent such specified Person from fully pursuing its own separate
interests, through the ownership of securities, contract or both; or (iv) the immediate family members or Affiliates or associates
of any Person described in the foregoing clauses of this paragraph.

 

“Release”
means any release, spill, emission, emptying, leaking, injection, deposit, disposal, discharge, dispersal, leaching, pumping, pouring,
or migration into the atmosphere, soil, surface water, groundwater or property.

 

“Representatives”
of any entity means such entity’s directors, officers, employees, legal, investment banking and financial advisors, accountants
and any other agents and representatives.

 

“Retained
Tax Liabilities” means: (i) all Taxes of Skyline for any taxable period ending on or before the Closing Date and, with
respect to any taxable period beginning before and ending after the Closing Date, Taxes attributable to the portion of such taxable
period ending on and including the Closing Date as determined under Section 4.2(c); (ii) all Taxes of any member of an affiliated,
consolidated, combined or unitary group attributable to Skyline (or any predecessor of Skyline) being or having been a member of
such group on or prior to the Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6 or any comparable
provisions of foreign, state or local Law; and (iii) any and all Taxes of any person imposed on Skyline arising under the principles
of transferee or successor liability or by contract, attributable to an event or transaction occurring before the Closing Date.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

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“Set-Off Amount”
means CHC Convertible Debentures with an aggregate Value of $5,575,000.

 

“Skyline Intellectual
Property Rights” means any Intellectual Property Rights owned by, licensed exclusively to or registered to Skyline.

 

“Skyline Operating
Agreement” means the Second Amended and Restated Operating Agreement of Skyline dated as of June 10, 2019, as in effect
on the Agreement Date.

 

“Skyline Material
Adverse Effect” means a Material Adverse Effect on Skyline.

 

“Skyline Members”
means the Persons  listed on  Schedule 2.3(a) of the Skyline Disclosure Letter or the Skyline Cap Table, which shall
include all holders of Membership Units and Profit Units immediately prior to the Effective Time.

 

“Skyline Registered
Intellectual Property Rights” means any Registered Intellectual Property Rights included in Skyline Intellectual Property
Rights.

 

“subsidiary”
means, with respect to any Person, any corporation or other organization, whether incorporated or unincorporated, of which more
than fifty percent (50%) of either the equity interests in, or the voting control of, such corporation or other organization is,
directly or indirectly through subsidiaries or otherwise, beneficially owned by such Person.

 

“Transaction
Documents” means this Agreement and the documents, agreements and instruments referenced herein or entered into in connection
with this Agreement, the Merger or the other Contemplated Transactions.

 

“Transaction
Expense Deductions” means, collectively, all federal, state, local, foreign or other income Tax deductions recognized
by Skyline or the Surviving Company as a result of, or in connection with, the transactions contemplated by this Agreement, in
each case, to the extent related to expenses or costs paid or incurred by Skyline or the Surviving Company on or prior to the Closing
Date in connection with such transactions, including such items related to: (a) the vesting or exercise of, or payments with
respect to, any equity-based compensation arrangements; (b) the payment of any change in control or stay bonuses, or similar
compensatory amounts, to employees or other service providers or to any owner of Skyline; and (c) any acceleration of deferred
financing fees related to the repayment of Skyline’s indebtedness.

 

“Value”
means, with respect to any CHC Convertible Debenture, the Value of the shares of CHC Common Stock issuable upon the conversion
of the principal amount of such CHC Convertible Debenture, and with respect to any shares of CHC Common Stock, an amount equal
to the Conversion Price (as defined in the CHC Convertible Debenture).

 

ARTICLE
X

GENERAL PROVISIONS

 

10.1 Limited
Survival of Representations and Warranties. The representations and warranties of Skyline and CHC contained in this
Agreement shall terminate on the date (the “Claim Expiration Date”) that is 180 days after the Closing
Date (or if such date is not a Business Day, then the immediately following Business Day), and only the covenants that by
their terms survive the Effective Time shall survive the Closing Date.

 

    53

     

    

 

10.2 Notices.  

 

(a) All
notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given and duly delivered: (i) when delivered (or delivery was properly tendered) by hand; (ii) when delivered (or
delivery was properly tendered) by the addressee if sent by a nationally recognized overnight courier; or (iii) on the date sent
by e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the
next Business Day if sent after normal business hours of the recipient, if the original of such notice was duly transmitted in
accordance with (i) or (ii) of this Section ‎10.2(a)
or transmitted by certified mail, return receipt requested, postage prepaid. Such communications must be sent to the respective
Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance
with this Section ‎10.2(a)):

 

(b) if
to CHC or Merger Subs (or to Skyline, after the Merger), to:

 

COMSovereign
Holding Corp.

5000 Quorum
Drive STE 400

Dallas, TX 75254

Attention: Daniel
L. Hodges

Email: DHodges@COMSovereign.com

 

with a copy
to (which will not constitute notice to CHC):

 

Pryor Cashman
LLP

7 Times
Square

New York,
NY 10036

Attention:
Eric M. Hellige, Esq.

Email:
ehellige@pryorcashman.com

 

(c) if
to Skyline prior to the Merger, to:

 

Skyline
Partners Technology LLC

1200-28th
Street, Suite 201

Boulder,
Colorado 80303

Attention:
John Helson

Email: jhelson@j2partners.com

 

Mailing
Address:

PO Box 18150

Boulder,
CO 80308

 

with a
copy to (which will not constitute notice to Skyline):

 

Koenig, Oelsner, Taylor, Schoenfeld
& Gaddis PC

2475 Broadway St.

Boulder, CO 80304

Attention: John Gaddis, Esq.

Email: jgaddis@kofirm.com

 

    54

     

    

 

(d) If
to the Members’ Representative, to:

 

Mr. John
Helson

5388 Waterstone
Drive

Boulder
CO 80301

Email:john@helson.net 

 

with copies
to (which will not constitute notice to Skyline):

 

Koenig, Oelsner, Taylor, Schoenfeld
& Gaddis PC

2475 Broadway St.

Boulder, CO 80304

Attention: John Gaddis, Esq.

Email: jgaddis@kofirm.com

 

Gary Jacobs

PO Box 18150

Boulder CO 80308

gary@tvpartners.net

 

Patrick McCamley

1815 South Washington Str,

Denver, CO 80210

patrick@skylinepartnersllc.com

 

or to such other Persons, addresses or
email addresses as may be designated in writing by the Person entitled to receive such communication as provided above.

 

10.3 Interpretation.
When a reference is made in this Agreement to Exhibits, such reference shall be to an Exhibit to this Agreement unless
otherwise indicated. When a reference is made in this Agreement to Sections, Schedules, or Exhibits, such reference shall be
to a Section, Schedule or Exhibit of or to this Agreement. Unless otherwise indicated the words “include,”
“includes” and “including” when used herein shall be deemed in each case to be followed by the words
“without limitation.” The captions and other headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement. When reference is made herein to “the
business of” an entity, such reference shall be deemed to include the business of all direct and indirect subsidiaries
of such entity. A reference in this Agreement to $ or dollars is to U.S. dollars. The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. References to “this Agreement” shall
mean this Agreement together with the Skyline Disclosure Letter and the CHC Disclosure Letter. The headings in this Agreement
are for reference only and shall not affect the interpretation of this Agreement. Unless the context of this Agreement
otherwise requires (a) words of any gender include each other gender and neutral forms of such words, (b) words using the
singular or plural number also include the plural or singular number, respectively, (c) references to clauses without a
cross-reference to a Section or subsection are references to clauses within the same Section or, if more specific,
subsection, (d) references to any Person include the successors and permitted assigns of that Person, or (e) references from
or through any date shall mean, unless otherwise specified, from and including or through and including, respectively. The
symbol “$” refers to United States Dollars. All references to “days” shall be to calendar days unless
otherwise indicated as a “Business Day.” Any action otherwise required to be taken on a day that is not a
Business Day shall instead be taken on the next succeeding Business Day, and if the last day of such period is a non-Business
Day, the period in question shall end on the next succeeding Business Day

 

    55

     

    

 

10.4 Counterparts.
This Agreement may be executed and delivered in multiple counterparts (including facsimile, PDF, DocuSign or other electronic
counterparts), all of which shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that all Parties
need not sign the same counterpart. A signed copy of this Agreement delivered by facsimile, e-mail or other means of
electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this
Agreement.

 

10.5 Entire
Agreement; Third-Party Beneficiaries. This Agreement and the other Transaction Documents (i) constitute the entire
agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings,
both written and oral, among the Parties with respect to the subject matter hereof; and (ii) except as expressly provided in
this Agreement are not intended to confer upon any other Person any rights or remedies hereunder. Notwithstanding anything
herein or otherwise to the contrary, the Skyline Members are express and intended third party beneficiaries of this
Agreement.

 

10.6 Amendment.
This Agreement may be amended, supplemented or modified by action taken by or on behalf of each of: (x) the respective Boards
of Directors of the Parties in the case of CHC, Merger Sub, and Skyline, and (y) the Member Representative, at any time as
set forth in a written instrument duly executed by or on behalf of each Party that sets forth the terms of the relevant
amendments, supplements, or modifications.

 

10.7 Waiver.
Any Party, by action taken by or on behalf of its Board of Directors, may to the extent permitted by applicable Law (i)
extend the time for the performance of any of the obligations or other acts of the other Party, (ii) unless prohibited by
applicable Law, waive any inaccuracies in the representations and warranties or compliance with the covenants and agreements
of the other Party contained herein or in any document delivered pursuant hereto or (iii) unless prohibited by applicable
Law, waive compliance with any of the conditions of such Party contained herein. No such extension or waiver shall be
effective unless set forth in a written instrument duly executed by or on behalf of the Party extending the time of
performance or waiving any such inaccuracy or non-compliance. No waiver by any Party of any term or condition of this
Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion.

 

10.8 Severability.
In the event that any provision of this Agreement or the application thereof, becomes or is declared by a court of competent
jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and
the application of such provision to other Persons or circumstances will be interpreted so as reasonably to effect the intent
of the Parties. The Parties further agree to negotiate in good faith to modify this Agreement so as to replace such void or
unenforceable provision of this Agreement with a valid and enforceable provision that is mutually agreeable to the Parties
and that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable
provision.

 

    56

     

    

 

10.9 Governing
Law; Dispute Resolution. This Agreement, and all claims or causes of action (whether at law, in contract or in tort) that may
be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance hereof, shall be governed
by and construed in accordance with the Laws of the State of Delaware, without giving effect to any choice or conflict of law provision
or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction
other than the State of Delaware. Each of the Parties irrevocably (i) consents to submit itself to the personal jurisdiction of
the District Court of the State of Nevada in the event any dispute arises out of this Agreement or any of the Contemplated Transactions,
and, in connection with any such matter, to service of process by notice as otherwise provided herein, (ii) agrees that it will
not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees
that it will not bring any action relating to this Agreement or any of the Contemplated Transactions in any court other than the
District Court of the State of Nevada. In the event (but only in the event) that the District Court of the State of Nevada does
not have subject matter jurisdiction over such action or proceeding, then the Parties will submit to personal jurisdiction of any
federal court in the State of Nevada. Any Party may make service on another Party by sending or delivering a copy of the process
to the Party to be served at the address and in the manner provided for the giving of notices in Section ‎10.2.

 

10.10 Specific
Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that (i) provided that CHC does not terminate this Agreement in accordance with its terms,
CHC shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which CHC is entitled at
law or in equity; and (ii) provided that Skyline does not terminate this Agreement in accordance with its terms, Skyline shall
be entitled to specific performance of the terms hereof, in addition to any other remedy to which Skyline is entitled at law or
in equity. In the event that specific performance is granted to a Party pursuant to the terms and conditions herein, such Party
shall also be entitled to be awarded its costs and expenses (including reasonable attorneys’ fees and expenses) incurred
solely in connection with obtaining such specific performance, together with interest on such amounts from the date of the commencement
of such proceeding until the date of payment at the prime lending rate as published in The Wall Street Journal in effect on the
date of the commencement of such proceeding. The preceding sentence will not limit the right or ability of a Party seeking specific
performance to recover damages, costs or expenses, under another provision of this Agreement or of any other Transaction Document.

 

10.11 Rules
of Construction. The Parties agree that they have been represented by counsel during the negotiation and execution of this
Agreement and, therefore, waive the application of any Law, regulation, holding or rule of construction providing that ambiguities
in an agreement or other document will be construed against the Party drafting such agreement or document.

 

10.12 Assignment.
No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written
approval of the other Parties. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the
benefit of the Parties and their respective successors and permitted assigns.

 

10.13 WAIVER
OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER
TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE CONTEMPLATED TRANSACTIONS. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
(A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO
ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER,
(C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.12.

 

    57

     

    

 

10.14 Limitation
on Damages. In no event will any Party or any shareholder, stockholder, member or partner of any Party be liable
to any other Party under or in connection with this Agreement or in connection with the Contemplated Transactions for
special, general, indirect, consequential, or punitive or exemplary damages, including damages for lost profits or lost
opportunity, even if the Party or any shareholder of member of such Party sought to be held liable has been advised of the
possibility of such damage.

 

10.15 Attorney-Client
Privilege. All communications involving attorney-client privilege between Skyline or Skyline Members (collectively, the
“Company Securityholders”), on the one hand, and their respective counsels, including Koenig, Oelsner,
Taylor, Schoenfeld & Gaddis PC, on the other hand, in the course of the negotiation, documentation and consummation of
the transactions contemplated hereby shall be deemed to be attorney-client confidences that belong solely to such Company
Securityholder (and not Skyline). Accordingly, neither Skyline or the Surviving Company shall have access to any such
communications, or to the files of Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC relating to such engagement. Without
limiting the generality of the foregoing, upon and after the Effective Time, (a) the Company Securityholders and their
Affiliates (and not the Surviving Company) shall be the sole holders of the attorney-client privilege with respect to such
engagement, and neither Skyline or the Surviving Company shall be a holder thereof, (b) to the extent that files of Koenig,
Oelsner, Taylor, Schoenfeld & Gaddis PC in respect of such engagement constitute property of the client, only the Company
Securityholders and their Affiliates (and not Skyline or Surviving Corporation) shall hold such property rights and (c)
Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC shall have no duty whatsoever to reveal or disclose any such
attorney-client communications or files to any member of Skyline or the Surviving Company by reason of any attorney-client
relationship between Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC and Skyline or otherwise; provided that the
foregoing shall not extend to any communication or files not involving the negotiation, documentation and consummation of the
transactions contemplated this Agreement. Notwithstanding the foregoing, in the event that a dispute arises between CHC, the
Surviving Company and the Company Securityholders and a third party (other than a party to this Agreement or any of their
respective Affiliates) after the Effective Time, Skyline or the Surviving Company may assert the attorney-client privilege to
prevent disclosure of confidential communications by Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC to such third party; provided, however,
that Skyline or Surviving Company may not waive such privilege without the prior written consent of the Member
Representative.

 

10.16 Company
Counsel. Notwithstanding that Skyline has been represented by Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC in the
preparation, negotiation and execution of this Agreement, Skyline, CHC and the Surviving Company agree that, after the
Effective Time, Koenig, Oelsner, Taylor, Schoenfeld & Gaddis PC may represent the Company Securityholders and their
affiliates in matters related to this Agreement, including in respect of any indemnification claims.

 

[Remainder of Page Intentionally Left
Blank]

 

    58

     

    

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement and
Plan of Merger to be executed by their respective officers duly authorized thereunto, as of the Effective Date. 

 

	 	COMSovereign Holding Corp.
	 	 
	 	By:	/s/
    Daniel L. Hodges
	 	 	Name:  	Daniel L. Hodges
	 	 	Title: 	Chief Executive Officer
	 	 	 	 
	 	CHC Merger Sub 8, LLC
	 	 	 	 
	 	By:	/s/ Kevin M. Sherlock
	 	 	Name:	Kevin M. Sherlock
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	Skyline Partners Technology LLC
	 	 
	 	By: 	/s/ Harald Braun

	 	 	Name:	Harald Braun

	 	 	Title:	Executive Chairman

	 	 	 	 
	 	/s/ John Helson

	 	John Helson, as Members’ Representative

 

[Signature Page to
Agreement and Plan of Merger Agreement] 

 

    

     

    

 

	Agreement	Preamble
	Blue Sky Laws	‎2.5(b)
	Articles of Merger	‎1.2
	Code	Preamble
	Closing	‎1.2
	COBRA	‎2.11(g)
	Code	Recitals
	CHC	Preamble
	CHC Approvals	‎3.1(a)
	CHC Board	Preamble
	CHC Board Recommendation	‎3.13
	CHC Common Stock	‎1.6(a)
	CHC Disclosure Letter	‎ARTICLE III
	CHC Financial Statement	‎3.6(b)
	CHC Group	‎3.1(a)
	CHC Option Plan	‎3.7(b)
	CHC Outstanding Shares	‎1.6(a)
	CHC Permits	‎3.7(b)
	CHC SEC Documents	‎3.6(a)
	CHC Transaction Documents	‎3.3
	VSCA	Recitals
	Effective Time	‎1.2
	ERISA Affiliate	‎2.11(a)(i)(B)
	ERISA	‎2.11(a)(i)
	Exchange Act	‎2.5(b)
	GAAP	‎2.6(b)
	Governmental Entity	‎2.5(b)
	Law	‎2.3(d)
	Merger Consideration	‎1.6(a)
	Merger Subs	Preamble
	Merger	‎1.1
	Merger Shares	‎1.6(a)
	Order	‎2.3(d)
	Party and Parties	Preamble
	Regulatory Agreement	‎2.20
	Sarbanes-Oxley Act	‎2.6(d)
	Securities Act	‎2.5(b)
	Skyline	Preamble
	Skyline Approvals	 
	Skyline Board Recommendation	‎2.25
	Skyline Board	Recitals
	Skyline Common Stock	‎1.6(a)
	Skyline Disclosure Letter	‎ARTICLE II
	Skyline Financial Statements	‎2.6(b)
	Skyline Insurance Policies	‎2.24
	Skyline Leased Real Estate	‎2.14(a)
	Skyline Leases	‎2.14(a)
	Skyline Major Customers	‎2.19
	Skyline Permits	‎2.7(b)
	Skyline Plans	‎2.11(a)(i)(B) 
	Skyline Products	‎2.17(a)
	Skyline Stockholders’ Approval	‎2.26
	Surviving Company	‎1.1
	Tax Returns	‎2.15(b)(i) 
	Tax	‎2.15(a)
	Tendered Shares	‎1.7(c)(i)
	Transaction Legal Action	‎8.2

 

[Signature Page to Agreement and Plan of Merger Agreement]

 

    

     

    

 

Skyline Disclosure Letter

 

(separately attached)

 

    

     

    

 

CHC Disclosure Letter

 

(separately attached)

 

    

     

    

 

Exhibit A – Form of Articles of
Merger

 

    

     

    

  

Exhibit B –
Form of CHC Term Debenture

 

EXHIBIT
B

 

COMSOVEREIGN
HOLDING CORP.

 

PROMISSORY
NOTE

 

	$[an aggregate of 1,500,000]	[Closing Date]

 

For
value received, COMSOVEREIGN HOLDING CORP., a Nevada corporation (the “Company”), unconditionally promises
to pay to [_________]1 or its assigns (the “Holder”) the principal sum of $[______] with
interest on the outstanding principal amount at the rate of 10% per annum (subject to adjustment as set forth below), or the maximum
rate permissible by law, whichever is less, and calculated on the basis of a 365 day year for the actual number of days elapsed.
Interest shall commence on the date hereof and shall continue on the outstanding principal balance hereof until paid in full.
The principal balance of this Note, together with the accrued unpaid interest thereon shall be due and payable on the dates and
in the manner set forth below.

 

1. Reference
to Merger Agreement. This Promissory Note (this “Note”) is one of a series of promissory notes
(collectively, the “Term Debentures”) which are delivered pursuant to and in accordance with the terms and
conditions of that certain Agreement and Plan of Merger, dated as of [_______], by and between the Company, CHC Merger Sub 8,
LLC, Skyline Partners Technology LLC (“Skyline”), and the other parties named therein (as it may be
amended, the “Merger Agreement”). Capitalized terms used in this Note without definition herein shall have
the meanings given to them in the Merger Agreement.

 

2.
Maturity; Payments; Prepayment; Waiver of Presentment.

 

(a)
Maturity Date. This Note shall mature on the earlier of (i) January 1, 2022, (ii) the date on which the Sales
Condition (set forth below) is satisfied, or (iii) the date on which the Financing Condition (set forth below) is satisfied
(the “Maturity Date”).

 

(i) Sales
Condition. As used herein, the “Sales Condition” shall mean an aggregate of $6,000,000 worth of
products and services are sold following the Closing Date by (A) Skyline and (B) the Company and its subsidiaries and
affiliates (other than Skyline) to the Skyline customers that are identified on Annex __ to this Note.

 

(ii) As
used herein, the “Financing Condition” shall mean the Company issues and sells shares of CHC Common Stock (as
defined below) or debt securities to investors after the Closing Date in a bona-fide arms-length financing transaction for aggregate
consideration of at least $12,000,000.

 

(b)
Payments.

 

(i) The
Company shall make semi-annual payments of all accrued, unpaid interest on the unpaid principal amount on December 1 and on June
1 of each year that this Note is outstanding, commencing on December 1, 2020.

 

 

		1	NTD:
                                         Will be issued to each Skyline Member.

 

     

     

    

 

(ii) All
payments of principal and interest shall be in lawful money of the United States of America and shall be payable at the address
of the Holder listed on the Company’s records, unless another place of payment shall be specified in writing by the Holder.
All payments shall be applied first to any fees or expenses due to the Holder then to accrued interest, including any interest
that accrues after the commencement of a proceeding by or against the Company under Title 11 of the United States Code, and thereafter
to the outstanding principal balance hereof. If any payments on this Note become due on a Saturday, Sunday or a public holiday
under the laws of the State of Arizona, such payment shall be made on the next succeeding business day and such extension of time
shall be included in computing interest in connection with such payment. Each payment which is made on the Term Debentures (whether
of principal, interest, or any other amount) shall be allocated and remitted pro rata among the Holders of the outstanding
Term Debentures, based upon the aggregate outstanding principal amount on the Term Debentures. If any Holder receives any payment
(whether voluntary, involuntary, by application of offset, or otherwise) under this Note in excess of Holder’s pro rata
share of the payments received by all Holders of the Term Debentures, then Holder shall hold in trust all such excess payments
for the benefit of the Holders of the other Term Debentures, and shall pay such amounts held in trust to such other Holders upon
demand.

 

(c) Prepayment.
This Note may be prepaid by the Company in whole or in part prior to the Maturity Date without penalty or premium.

 

(d) Waiver.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

3.
Repayment.

 

(a) At
any time after the Maturity Date, if this Note has not been paid in full, each Holder, may: (i) demand payment of the entire outstanding
principal balance and all unpaid accrued interest under this Note (a “Payment Demand”); or (ii) continue to
hold this Note, in which case the interest rate shall be increased and this Note shall thereafter accrue interest at the rate
of 15% per annum, compounded semiannually, until such time as this Note is paid in full.

 

(b) Corporate
Transaction. In the event that (i) the Company enters into an agreement pertaining to (A) a sale, lease, conveyance,
exclusive license or other disposition of all or substantially all of the assets of the Company or (B) (1) any consolidation
or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization,
in which the equityholders of the Company immediately prior to such consolidation, merger or reorganization own less than
fifty percent (50%) of the voting power of the surviving or successor entity (or in the event stock or ownership interests of
an affiliated entity are issued in such transaction, less than fifty percent (50%) of the voting power of such affiliated
entity) immediately after such consolidation, merger or reorganization; or (2) any transaction or series of related
transactions to which the Company is a party in which in excess of fifty percent (50%) of the Company’s outstanding
voting power is transferred; other than (x) any consolidation or merger effected exclusively to change the domicile of the
Company, or (y) any transaction or series of transactions principally for bona fide equity financing purposes in which cash
is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof
(each such event described in (A) and (B) above being referred to herein as a “Corporate Transaction”),
and (ii) this Note has not previously been paid in full, then, before any distribution or payment shall be made to the
holders of equity securities of the Company, the Holder shall be entitled to be paid the principal balance of this Note then
outstanding plus unpaid accrued interest thereon through the date of such Corporate Transaction.

 

     

     

    

 

4.
Default.

 

(a)
Each of the following events shall be an “Event of Default” hereunder:

 

(i)
the Company engages in any liquidation, dissolution or winding up;

 

(ii) the
Company transfers substantially all of the assets or voting control over a material subsidiary;

 

(iii) the
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other
law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors
or takes any corporate action in furtherance of any of the foregoing;

 

(iv) an
involuntary petition is filed against the Company under any bankruptcy statute now or hereafter in effect and such petition continues
without dismissal for a period of 90 days or more, or a custodian, receiver, trustee, assignee for the benefit of creditors (or
other similar official) is appointed to take possession, custody or control of any property of the Company;

 

(v) the
Company executes an assignment for the benefit of creditors with respect to a majority of its assets;

 

(vi) the
Company fails to make any payment of interest under this Note within five (5) days of the date due;

 

(vii) the
Company fails to pay this Note and any and all unpaid principal, accrued interest or other amounts owing hereunder at any time
on or after Holder makes a Payment Demand following the Maturity Date;

 

(viii) any
default under any agreement of the Company with a third party which consists of the failure to pay indebtedness for borrowed money
in excess of $2,500,000 at maturity or which results in a right by such third party, whether or not exercised, to accelerate the
maturity of such indebtedness for borrowed money of the Company, including, without limitation, the occurrence of any Event of
Default (as defined) under the CHC Convertible Debentures issued pursuant to the Merger Agreement;

 

(ix) (A)
the Company fails to file any form, report or document required to be filed with the Securities Exchange Commission within 10
days of the due date thereof, (B) the Company voluntarily begins a process to delist from any exchange to which it is registered,
or (C) the Company receives any delisting warning from any exchange with which it is registered; and

 

(x) the
Company breaches any covenant or agreement in any material respect made by Company in this Note (except as set forth in (vi)
above) and, as to any breach that is capable of cure, the Company fails to cure such breach within thirty (30) days of
the Company becoming aware of the occurrence of such breach.

 

     

     

    

 

(b) Upon
the occurrence and following any Event of Default hereunder, all unpaid principal, accrued interest and other amounts owing hereunder
shall, at the option of the Holder, and, in the case of an Event of Default pursuant to Section 3(a)(iii) or (iv) above, automatically,
be immediately due, payable and collectible by the Holder pursuant to applicable law.

 

(c) In
the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred
by the Holder in enforcing and collecting this Note.

 

(d) Upon
and during the occurrence of any Event of Default, interest shall accrue thereafter at the rate of 15% per annum compounded semiannually.

 

5. Notification
of Default or Satisfaction of Sales Condition or Financing Condition. Until the payment of all amounts due under the Term
Debentures, the Company shall give written notice to Holder of any event which, with or without notice or passage of time or both
would (i) constitute an Event of Default, (ii) constitute satisfaction of the Sales Condition, or (iii) constitute satisfaction
of the Financing Condition, in each case, within five business days of becoming aware of such event.

 

6. Usury.
In no event shall the interest rate or rates payable under this Note plus any other amounts paid in connection herewith and therewith,
exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem
applicable. The Company and the Holder, in executing and delivering this Note, intend legally to agree upon the rate or rates
of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary
notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then,
ipso facto, as of the date of this Note, the Company is and shall be liable only for the payment of such maximum as allowed
by law, and payment received from the Company in excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of any remaining obligations to the extent of such excess.

 

 7. Miscellaneous.

 

(a) Tax
Status of Note. The Company intends that this Note represents indebtedness of the Company for federal income tax purposes,
and that this Note does not bear original issue discount as determined for U.S. federal income tax purposes. The Company shall
report for all U.S. federal income tax purpose in accordance with intentions described in the preceding sentence.

 

     

     

    

 

(b) Notices.
All notices required or permitted by this Note shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the recipient; (ii) when sent by confirmed facsimile or electronic mail during normal business hours of the recipient,
and if not sent during normal business hours of the recipient, then on the next business day; (iii) five calendar days after having
been sent by registered or certified mail, with return receipt requested and postage prepaid; or (iv) one business day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications
to the Company shall be sent to the Company at 5000 Quorum Drive, Suite 400, Dallas, Texas 75254, Attention: Chief Financial Officer,
Email: bmihelich@comsovereign.com (or at such other address or to the attention of such other person as the Company may designate
by ten days’ advance written notice to the Holder) with a copy to Pryor Cashman LLP, 7 Times Square, New York, New York
10036, Attention: Eric M. Hellige, Esq., Email: ehellige@pryorcashman.com; and to Holder at the address set forth on the Signature
Page attached hereto (or at such other address or to the attention of such other person as Holder may designate by ten days’
advance written notice to the Company).

 

(c) Successors
and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties.

 

(d) Governing
Law. This Note shall be governed by and construed under the laws of the State of Delaware as applied to agreements among Delaware
residents, made and to be performed entirely within the State of Delaware.

 

(e) Titles
and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing
or interpreting this Note.

 

(f) Amendment
and Waiver. This Note may be amended only with the written consent of the Company and the Holder.

 

(g) Cumulative
Remedies. The Holder’s rights and remedies hereunder shall be cumulative. No exercise by the Holder of one right or
remedy shall be deemed an election, and no waiver by the Holder of any Event of Default shall be deemed a continuing waiver.

 

[Remainder
of Page Intentionally Left Blank]

 

     

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered as of the day and year first written above.

 

	 	COMSOVEREIGN HOLDING CORP.
	 	 	 
	 	By:	                                         
	 	 	Name:
	 	 	Title:

 

	Acknowledged and Agreed
	 	 
	[HOLDER]
	 	 	 
	By:	                                     	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 
	 	 	 
	 	Email:	 

 

[SIGNATURE
PAGE TO PROMISSORY NOTE]

 

     

     

    

EXHIBIT C

 

THIS CONVERTIBLE PROMISSORY
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE NOTE,
OR DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE OR
TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH THE ACT OR UNLESS SOLD IN FULL COMPLIANCE WITH RULE 144 UNDER THE ACT.

 

ComSovereign
Holding Corp.

 

CONVERTIBLE PROMISSORY NOTE

 

Note Number: _________

 

	$[an aggregate of 11,150,000]	[Closing Date]

 

For value received,
ComSovereign Holding Corp., a Nevada corporation (the “Company”),
unconditionally promises to pay to [_________]1
or its assigns (the “Holder”) the principal sum of $[______] with interest on the outstanding principal amount
as set forth below. The principal balance of this Note, together with the accrued interest thereon shall be due and payable on
the dates and in the manner set forth below.

 

1. Reference
to Merger Agreement. This Convertible Promissory Note (this “Note”) is one of a series of convertible promissory
notes (collectively, the “Convertible Debentures”) which are delivered pursuant to and in accordance with the
terms and conditions of that certain Agreement and Plan of Merger, dated as of [_______], by and between the Company, CHC Merger
Sub 8, LLC, Skyline Partners Technology LLC (“Skyline”), and the other parties named therein (as it may be amended,
the “Merger Agreement”). Capitalized terms used in this Note without definition shall have the meanings given
to them in the Merger Agreement.

 

2. Maturity;
Payments; Prepayment; Waiver of Presentment.

 

(a) Maturity
Date. This Note shall mature 5 years from date of issuance (which shall be the Closing Date) (the “Maturity Date”).
At any time on or after the Maturity Date, if this Note has not been paid in full, the Holder, may: (i) by providing a Conversion
Notice to the Company in accordance with Section 3, below, elect to be paid in cash all unpaid accrued interest of this Note through
the Conversion Date and convert the unpaid principal of the Note into shares of CHC Common Stock in accordance with Section 3;
(ii) demand payment of the entire outstanding principal balance and all unpaid accrued interest under this Note (a “Payment
Demand”); or (iii) continue to hold this Note, in which case the interest rate shall be increased to fifteen percent
(15%) and this Note shall thereafter accrue interest at the rate of 15% per annum compounded annually, until such time as (x) Holder
makes a Payment Demand and the Note is repaid in full; or (y) this Note is converted in full pursuant to Section 3.

 

(b) Interest.
Interest on the outstanding principal amount shall accrue at the rate of 1.01% per annum and shall be adjusted to the Prime Rate
as published by the Wall Street Journal on each annual anniversary of the Closing Date so long as the Note is outstanding (subject
to adjustment as set forth below), or the maximum rate permissible by law, whichever is less, and calculated on the basis of a
365 day year for the actual number of days elapsed. Interest shall commence on the date hereof and shall continue on the outstanding
principal balance hereof until paid in full.

 

 

		1	NTD: Will be issued to each Skyline Member.

 

     

     

    

  

(c) Payments.

 

(i) The
Company shall make annual payments of all accrued, unpaid interest on the unpaid principal amount on January 1 of each year that
this Note is outstanding.

 

(ii) Following
the Maturity Date, the Company shall give the Holder written notice at least 15 days prior to any repayment of this Note so that
Holder may elect to convert the Note pursuant to Section 3 prior to any such repayment.

 

(iii) All
payments of principal and interest shall be in lawful money of the United States of America and shall be payable at the office
of the Holder listed on the Company’s records, unless another place of payment shall be specified in writing by the Holder.
All payments shall be applied first to any fees or expenses due to the Holder then to accrued interest, including any interest
that accrues after the commencement of a proceeding by or against the Company under Title 11 of the United States Code, and thereafter
to the outstanding principal balance hereof. If any payments on this Note become due on a Saturday, Sunday or a public holiday
under the laws of the State of Nevada, such payment shall be made on the next succeeding business day and such extension of time
shall be included in computing interest in connection with such payment. Each payment which is made on the Convertible Debentures
(whether of principal, interest, or any other amount) shall be allocated and remitted pro rata among the Holders of the
outstanding Convertible Debentures, based upon the aggregate outstanding principal amount on the Convertible Debentures. If any
Holder receives any payment (whether voluntary, involuntary, by application of offset, or otherwise) under this Note in excess
of Holder’s pro rata share of the payments received by all Holders of the Convertible Debentures, then Holder shall
hold in trust all such excess payments for the benefit of the Holders of the other Convertible Debentures, and shall pay such amounts
held in trust to such other Holders upon demand.

 

(d) Prepayment.
This Note may not be prepaid by the Company prior to the Maturity Date without the written consent of the Holder.

 

(e) Waiver.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

3. Conversion.

 

(a) Within
3 business days of the receipt by the Company from the Holder of a written notice to convert this Note pursuant to this Section
3 given at any time that is more than one (1) year after the date of issuance of this note (a “Conversion Notice”),
(i) the Company shall pay to the Holder any accrued and unpaid interest through the date on which such Conversion Notice is given
(the “Conversion Date”), and (ii) the Company shall instruct its transfer agent to convert the entire outstanding
principal balance hereof into a number of shares of common stock, par value $0.0001 per share, of the Company (the “CHC
Common Stock”) equal to (x) the outstanding principal balance hereof, divided by $1.74 (the “Conversion
Price”); provided that a Conversion Notice given on or after the Maturity Date must be made pursuant to the provisions
of Section 2(a), above. Notwithstanding any other provision of this Note to the contrary, this Note may not be converted at any
time within one (1) year of the date of issuance of this Note.

 

     

     

    

 

(b) Corporate
Transaction. In the event that (i) the Company enters into an agreement pertaining to (A) a sale, lease, conveyance, exclusive
license or other disposition of all or substantially all of the assets of the Company or (B) (1) any consolidation or merger of
the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in which the equityholders
of the Company immediately prior to such consolidation, merger or reorganization own less than fifty percent (50%) of the voting
power of the surviving or successor entity (or in the event stock or ownership interests of an affiliated entity are issued in
such transaction, less than fifty percent (50%) of the voting power of such affiliated entity) immediately after such consolidation,
merger or reorganization; or (2) any transaction or series of related transactions to which the Company is a party in which in
excess of fifty percent (50%) of the Company’s outstanding voting power is transferred; other than (x) any consolidation
or merger effected exclusively to change the domicile of the Company, or (y) any transaction or series of transactions principally
for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company
is cancelled or converted or a combination thereof (each such event described in (A) and (B) above being referred to herein as
a “Corporate Transaction”), and (ii) the Note has not previously been paid in full or converted into capital
securities of the Company, then, before any distribution or payment shall be made to the holders of equity securities of the Company,
the Holder shall be entitled to be paid the greater of (X) the principal balance of this Note then outstanding plus unpaid accrued
interest thereon through the date of such Corporate Transaction, or (Y) the amount that the Holder would have received had the
Note been converted pursuant to Section 3(a) above.

 

(c) Conversion
Procedures. Upon the conversion of this Note pursuant to Section 2(a) or Section 3(a), this Note shall be converted automatically
without any further action by the Holder and whether or not this Note is surrendered to the Company or its transfer agent.

 

(d) Fractional
Equity. No fractional share shall be issued upon the conversion of this Note. All shares issuable upon conversion of the outstanding
principal amount of this Note shall be aggregated for purposes of determining whether the conversion would result in the issuance
of any fractional share. If, after the aforementioned aggregation, the conversion would result in the issuance of a fraction of
a share, the Company shall, in lieu of issuing any fractional share, either pay the Holder who is otherwise entitled to such fraction
a sum in cash equal to the fair market value of such fraction on the date of conversion (as determined in good faith by the Board
of the Company) or issue a full share in lieu of such fractional share.

 

(e) Restrictive
Legends. If, at the time of conversion of this Note, the Holder has held this Note for a period of at least one year and the
Holder has not been for a period of at least three months an “affiliate” of the Company, the Company shall cause to
be delivered to its transfer agent in connection with the issuance of the shares of CHC Common Stock issuable upon such conversion,
a legal opinion from the Company’s corporate counsel opining that, pursuant to Rule 144 under the Securities Act, such shares
of CHC Common Stock need not include any restrictive legend or market place trading or transfer restrictions.

 

(f) Adjustment
of Conversion Price. If the Company subdivides (by any stock split, stock dividend, recapitalization or otherwise) its outstanding
shares of CHC Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision
will be proportionately reduced. If the Company at any time combines (by combination, reverse stock split or otherwise) its outstanding
shares of CHC Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination
will be proportionately increased. Any adjustment pursuant to this Section 3(f) shall become effective immediately after the effective
date of such subdivision or combination.

 

     

     

    

 

4. Default.

 

(a) Each
of the following events shall be an “Event of Default” hereunder:

 

(i) the
Company engages in any liquidation, dissolution or winding up;

 

(ii) the
Company transfers substantially all of the assets or voting control over a material subsidiary;

 

(iii) the
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other
law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors
or takes any corporate action in furtherance of any of the foregoing;

 

(iv) an
involuntary petition is filed against the Company under any bankruptcy statute now or hereafter in effect and such petition continues
without dismissal for a period of 90 days or more, or a custodian, receiver, trustee, assignee for the benefit of creditors (or
other similar official) is appointed to take possession, custody or control of any property of the Company;

 

(v) the
Company executes an assignment for the benefit of creditors with respect to a majority of its assets;

 

(vi) the
Company fails to make any payment of interest under this Note within five (5) days of the date due;

 

(vii) the
Company fails to pay this Note and any and all unpaid principal, accrued interest or other amounts owing hereunder at any time
on or after Holder makes a Payment Demand following the Maturity Date;

 

(viii) any
default under any agreement of the Company with a third party which consists of the failure to pay indebtedness for borrowed money
in excess of $2,500,000 at maturity or which results in a right by such third party, whether or not exercised, to accelerate the
maturity of such indebtedness for borrowed money of the Company, including, without limitation, the occurrence of any Event of
Default (as defined) under the CHC Term Debentures issued pursuant to the Merger Agreement;

 

(ix) the
Company fails to convert this Note as required hereunder and the Company fails to cure such breach within five (5) days of the
Company becoming aware of the occurrence of such breach;

 

(x) (A)
the Company fails to file any form, report or document required to be filed with the Securities Exchange Commission within 10 days
of the due date thereof, (B) the Company voluntarily begins a process to delist from any stock exchange on which the CHC Common
Stock is then listed, or (C) the Company receives any delisting warning from any stock exchange on which the CHC Common Stock is
then listed and such warning is not cured or withdrawn within 120 days; and

 

(xi) the
Company breaches any covenant or agreement in any material respect made by Company in this Note (except as set forth in (vi) or
(ix) above) and, as to any breach that is capable of cure, Company fails to cure such breach within thirty (30) days of the Company
becoming aware of the occurrence of such breach.

 

     

     

    

 

(b) Upon
the occurrence and following any Event of Default hereunder, all unpaid principal, accrued interest and other amounts owing hereunder
shall, at the option of the Holder, and, in the case of an Event of Default pursuant to Section 3(a)(iii) or (iv) above, automatically,
be immediately due, payable and collectible by the Holder pursuant to applicable law.

 

(c) In the
event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by
the Holder in enforcing and collecting this Note.

 

(d) Upon
and during the occurrence of any Event of Default, interest shall accrue thereafter at the rate of 15% per annum compounded annually.

 

5. Notification
of Default. Until the payment of all amounts due under the Convertible Debentures, the Company shall give written notice to
Holder of any event which, with or without notice or passage of time or both would constitute an Event of Default within five business
days of becoming aware of such event.

 

6. Usury.
In no event shall the interest rate or rates payable under this Note plus any other amounts paid in connection herewith and therewith,
exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem
applicable. The Company and the Holder, in executing and delivering this Note, intend legally to agree upon the rate or rates of
interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary
notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then,
ipso facto, as of the date of this Note, the Company is and shall be liable only for the payment of such maximum as allowed
by law, and payment received from the Company in excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of any remaining obligations to the extent of such excess.

 

[ For inclusion
in the Escrow Debenture only:

 

7. Set Off.
Notwithstanding anything to the contrary in this Note, the principal amount of this Note and accrued and unpaid interest thereon
shall be subject to offset and reduction in respect to any Losses relating to a CHC Claim Notice in the amounts, and subject to
the terms and limitations, set forth in Article VII of the Merger Agreement.]

 

8. Miscellaneous.

 

(a) Tax Status
of Note. The Company intends that this Note represents indebtedness of the Company for federal income tax purposes, and that
this Note does not bear original issue discount as determined for U.S. federal income tax purposes. The Company shall report for
all U.S. federal income tax purposes in accordance with the intentions described in preceding sentence.

 

(b) Notices. 
All notices required or permitted by this Note shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the recipient; (ii) when sent by confirmed facsimile or electronic mail during normal business hours of the recipient,
and if not sent during normal business hours of the recipient, then on the next business day; (iii) five calendar days after having
been sent by registered or certified mail, with return receipt requested and postage prepaid; or (iv) one business day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications
to the Company shall be sent to the Company at 5000 Quorum Drive, Suite 400, Dallas, Texas 75254, Attention: Chief Financial Officer,
Email: bmihelich@comsovereign.com (or at such other address or to the attention of such other person as the Company may designate
by ten days’ advance written notice to the Holder) with a copy to Pryor Cashman LLP, 7 Times Square, New York, New York 10036,
Attention: Eric M. Hellige, Esq., Email: ehellige@pryorcashman.com; and to Holder at the address set forth on the Signature Page
attached hereto (or at such other address or to the attention of such other person as Holder may designate by ten days’ advance
written notice to the Company).

 

     

     

    

 

(c) Successors
and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties.

 

(d) Governing
Law. This Note shall be governed by and construed under the laws of the State of Delaware as applied to agreements among Delaware
residents, made and to be performed entirely within the State of Delaware.

 

(e) Titles and
Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing
or interpreting this Note.

 

(f) Amendment
and Waiver. This Note may be amended only with the written consent of the Company and the Holder.

 

(g) Cumulative
Remedies. The Holder’s rights and remedies hereunder shall be cumulative. No exercise by the Holder of one right or remedy
shall be deemed an election, and no waiver by the Holder of any Event of Default shall be deemed a continuing waiver.

 

[Remainder of Page Intentionally Left Blank]

 

     

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed and delivered as of the day and year first written above.

 

	 	ComSovereign Holding Corp.
	 	 	 
	 	By:	     
	 	 	Name:
	 	 	Title:

 

	Acknowledged and Agreed	 
	 	 
	[HOLDER]	 
	 	 
	By:	 	 
	 	Name:  	 
	 	Title:  	 
	 	Address:	 
	 	 	 
	 	Email:	 

 

[SIGNATURE
PAGE TO CONVERTIBLE PROMISSORY NOTE]Document

EXHIBIT 4.1

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
COMMON STOCK PURCHASE WARRANT
OBLONG, INC.
Warrant Shares: _____________    Initial Exercise Date: June 7, 2021
THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _______________________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after June 7, 2021 (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on June 7, 2023 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Oblong, Inc., a Delaware corporation (the “Company”), up to ________________ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock.  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
Section 1.    Definitions.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated December 6, 2020, among the Company and the Purchasers signatory thereto.
Section 2.    Exercise.
a)Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”).  Within the two (2) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless 
    1

exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.  No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
b)Exercise Price.  The exercise price per share of Common Stock under this Warrant shall be $5.49, subject to adjustment hereunder (the “Exercise Price”).
c)Cashless Exercise.  If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. (“Bloomberg”) as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular 
    2

trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;
(B) = the Exercise Price of this Warrant, as adjusted hereunder; and 
(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.
If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act as in effect on the date hereof, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to take any position contrary to this Section 2(c).
“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or 
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agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
d)Mechanics of Exercise. 
a.Delivery of Warrant Shares Upon Exercise.  The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by evidence of a book entry position or physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is two (2) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”); provided that payment of the aggregate Exercise Price is received prior thereto.  Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within two (2) Trading Days following delivery of the Notice of Exercise.  If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $10,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.  The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable.
b.Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to 
    4

purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.
c.Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.
d.Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.
e.No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to 
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purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.
f.Charges, Taxes and Expenses.  Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that, in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.  The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.
g.Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.
e)    Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the 
    6

Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.  Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.
Section 3.    Certain Adjustments.
a)Stock Dividends and Splits.  If the Company, at any time while this Warrant is outstanding:  (i) pays a stock dividend or otherwise makes a distribution or 
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distributions on shares of its Common Stock payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant or upon conversion or redemption of shares of the Company’s capital stock), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.
b)[RESERVED]
c)Subsequent Rights Offerings.  In addition to any adjustments pursuant to Section 3(a) above, if at any time this Warrant is outstanding the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). 
d)Pro Rata Distributions.  During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate 
    8

rearrangement, scheme of arrangement or other similar transaction), to which neither Section 3(a) nor 3(c) applies (a “Distribution”), then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).
e)Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company (or any Subsidiary), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such 
    9

Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction).  Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.
f)Calculations.  All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
g)Notice to Holder.  
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1.Adjustment to Exercise Price.  Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment. 
2.Notice to Allow Exercise by Holder.  If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company (or any of its Subsidiaries) is a party, any sale or transfer of all or substantially all of its assets, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company (unless such matter is disclosed by the Company in information filed with or furnished to the Commission, in which case no additional notice is required to be provided to the Holder), at least ten (10) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice.  To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such material, non-public information with the Commission pursuant to a Current Report on Form 8-K.  The Holder shall remain entitled to exercise 
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this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 
h)Voluntary Adjustment By Company.  Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.
Section 4.    Transfer of Warrant.
a)Transferability.  Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  
b)New Warrants.  This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.  All Warrants issued on transfers or exchanges shall be dated the original issue date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 
c)Warrant Register.  The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the 
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registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.
d)Transfer Restrictions.  If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.
e)Representation by the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.
Section 5.    Miscellaneous.
a)No Rights as Stockholder Until Exercise; No Settlement in Cash.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.  Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section 2(c), in no event shall the Company be required to net cash settle an exercise of this Warrant.
b)Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.
c)Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.
d)Authorized Shares.  
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The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).  
Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
e)Jurisdiction.  All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.
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f)Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise after the Rule 144 holding period, will have restrictions upon resale imposed by state and federal securities laws.
g)Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.  Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
h)Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.
i)Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
j)Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.
k)Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.
l)Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.
m)Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any 
    15

provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.
n)Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

(Signature Page Follows)

    16

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

     
			
	OBLONG, INC.

	
	By:  __________________________________________
     Name: Peter Holst
     Title:  Chief Executive Officer

    17

ANNEX A
NOTICE OF EXERCISE
TO:    OBLONG, INC.
(1)The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2)Payment shall take the form of (check applicable box):
[  ] in lawful money of the United States; or
[  ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).
(3)Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
The Warrant Shares shall be delivered to the following DWAC Account Number:

						
		
		
		
		

(4)    Accredited Investor.  The undersigned represents and warrants that it is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:     

Signature of Authorized Signatory of Investing Entity:     
Name of Authorized Signatory:______________________________________    
Title of Authorized Signatory: ______________________________________________________________
Date: __________________________________________________________________________________

Annex A-1

ANNEX B
ASSIGNMENT FORM
(To assign the foregoing Warrant, execute this form and supply required information.  Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to
						
	Name:	
		(Please Print)
	Address:	
	

Phone Number:
Email Address: 
	(Please Print)
_____________________________________
_____________________________________

	Dated: _______________ __, ______	
	Holder’s Signature:_____________________
	
	Holder’s Address:______________________
	

Annex B-1

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