Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement, dated as of January 7, 2020 (the “Agreement”), is by and between Tyme Technologies,
Inc., a Delaware corporation with its principal offices at 17 State Street, 7th Floor, New York, NY 10004 (the “Company”), and Eagle Pharmaceuticals, Inc., a Delaware corporation with its principal offices at 50 Tice Boulevard,
Suite 315, Woodcliff Lake, NJ 07677 (the “Purchaser”). 
 WHEREAS, the Company desires to issue and sell to the Purchaser a
number of shares (each a “Share” and collectively, as applicable, the “Shares”) of the common stock, par value $0.0001 per share (the “Common Stock”) or the Series A preferred stock, par value
$0.0001 per share (the “Preferred Stock”), of the Company and the Purchaser desires to purchase and acquire the Shares, all on the terms and subject to the conditions as set forth in this Agreement; 

WHEREAS, the Purchaser desires to provide further payments and to purchase additional Shares, and the Company desires to issue and sell such
Shares, upon the occurrence of certain milestone events as described herein; 
 WHEREAS, the Company and the Purchaser are executing and
delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D
(“Regulation D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act; 

WHEREAS, simultaneously with the entry into this Agreement, the parties have entered into a
Co-Promotion Agreement pursuant to which Purchaser and its Affiliates will provide sales services to the Company in exchange for 15% of net sales revenue from SM-88
sales in the United States; and 
 WHEREAS, simultaneously with the entry into this Agreement, the Company and the Purchaser have entered
into a Registration Rights Agreement attached hereto as Exhibit A, pursuant to which the Company will agree to provide certain registration rights in respect of the Shares under the Securities Act, and the rules and regulations promulgated
thereunder, and applicable state securities laws. 
 NOW THEREFORE, in consideration of the mutual agreements, representations, warranties
and covenants herein contained, the parties hereto agree as follows: 
 1. Definitions. In addition to those capitalized terms otherwise defined in
this Agreement, as used in this Agreement, the following capitalized terms shall have the following respective meanings: 
 (a)
“Affiliate” of a party, means any corporation or other business entity controlled by, controlling or under common control with such party. For this purpose, “control” shall mean direct or indirect beneficial ownership of
fifty percent (50%) or more of the voting or income interest in such corporation or other business entity. 
  

 (b) “Associate” means (i) a corporation or organization of which such
person is an officer or partner or is, directly or indirectly, the beneficial owner of 10 percent or more of any class of equity securities, (ii) any trust or other estate in which such person has a substantial beneficial interest or as to
which such person serves as trustee or in a similar capacity and (iii) any relative or spouse of such person. 
 (c) “Business
Day” means any calendar day other than a Saturday, Sunday or other day on which banks in New York City are authorized or required to be closed. 

(d) “Closing Date” means the Initial Closing Date or the Milestone Closing Date, as applicable. 

(e) “Company Owned IP” means all intellectual property rights owned by the Company (whether exclusively or jointly with any
other person or entity) that are directly related to SM-88 (racemetyrosine). 
 (f) “Company
Registered IP” shall mean each item of Company Owned IP that is Registered IP. 
 (g) “Corporate Transaction” shall
mean any of (i) a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the assets of the Company and its subsidiaries; (ii) a sale, lease, transfer, exclusive license or other disposition of all or
substantially all of the assets of the Company and its subsidiaries related to SM-88 in the United States; (iii) a sale or other disposition (including through the issuance by the Company of shares of its
capital stock) of at least a majority of the voting power of the Company; (iv) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or (v) a merger, consolidation or similar
transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation
or similar transaction into other property, whether in the form of securities, cash or otherwise, provided, however, that none of (1) any change in ownership or sale or other disposition of shares occurring solely through public
trading of the Common Stock by third parties, (2) any public offering of the Company’s capital stock for cash on the part of the Company, including pursuant to any existing or successor “at-the-market” financing facility or (3) any reincorporation, migratory merger effected solely for the purpose of changing the jurisdiction of incorporation, or internal reorganization or
restructuring of the Company shall not constitute a Corporate Transaction. 
 (h) “Effective Date” means the date on which
the initial Registration Statement is required to be declared effective by the SEC under the terms of the Registration Rights Agreement. 

(i) “Exchange Act” means the Securities Exchange Act of 1934, as amended 

(j) “FDA” means the U.S. Food and Drug Administration or successor entity thereto. 

  
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 (k) “Governmental Body” shall mean any national, federal, regional, state,
provincial, local, or foreign or other governmental authority or instrumentality, legislative body, court, administrative agency, regulatory body, commission or instrumentality, including any multinational authority having governmental or
quasi-governmental powers, or any other industry self-regulatory authority or arbitral body. 
 (l) “Knowledge of the
Company,” or any derivation thereof, means the actual knowledge of Steve Hoffman, Michele Korfin, Giuseppe Del Priore, Ben Taylor, John Eckard, or Jim Biehl. 

(m) “Initial Closing Date” means the date of the Initial Closing. 

(n) “Initial Per Share Price” means $2.00. 

(o) “Law” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law,
rule, regulation, executive order, injunction, judgment, order, award, decree, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Body. 

(p) “Milestone Closing Date” means the date of the Milestone Closing. 

(q) “Milestone Event” means the earlier of (i) the successful completion of a pivotal trial in pancreatic cancer, as
defined by achieving the primary efficacy endpoint per the protocol, of (A) Part 2 of the Company’s TYME-88-Panc clinical trial or (B) an arm of the
Precision PromiseSM clinical trial with the Pancreatic Cancer Action Network using SM-88; in either case, with any such amendments or changes to the
protocol resulting from FDA guidance or communications and in each case that is adequate for registration submission and meets the primary endpoint as prespecified in the protocol provided to FDA incorporating FDA comments or (ii) FDA approval
of SM-88 in any cancer indication within the United States in all cases if, and only if, the events set forth in subsections (i) or (ii) hereof occur within five (5) years of the date hereof (the
“Expiration Date”). 
 (r) “Milestone Investment Amount” means $10 million. 

(s) “Milestone Per Share Price” means $1,000 per Preferred Share, it being understood that the conversion price of such
Preferred Shares into common stock would be equal to the product of the average of the VWAP for the seven (7) trading days immediately following the public announcement of the Company achieving the Milestone Event multiplied by 1.15.
Notwithstanding anything else in this Agreement, the conversion price of the Preferred Shares shall not result in common stock issued at less than the “Minimum Price” as defined in Nasdaq Rule 5635(d). 

(t) “Milestone Representations” has the meaning set forth in Section 6.1(a)(ii). 

(u) “Nasdaq” means the Nasdaq Capital Market tier of the Nasdaq Stock Market, Inc. 

  
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 (v) “Registered IP” means all intellectual property rights that are
registered, filed, or issued under the authority of any Governmental Body, including all patents, registered copyrights, registered mask works, and registered trademarks and all applications for any of the foregoing. 

(w) “Registration Rights Agreement” has the meaning set forth in the Recitals. 

(x) “Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights
Agreement and covering the resale of the Registrable Securities (as defined in the Registration Rights Agreement). 
 (y)
“Representatives” is defined in Section 5.14. 
 (z) “SEC Filings” means those reports and filings
made by the Company with the SEC under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, on or after the beginning of the Company’s 2017 fiscal year, the date on which the Company consummated a
reverse triangular merger with Tyme Inc. (“Tyme”) pursuant to which the Company succeeded to the business of Tyme, including the exhibits thereto and documents incorporated by reference therein. 

(aa) “SM-88” means TYME’s SM-88
(racemetyrosine) novel oral therapy. SM-88 (D,L-alpha-metyrosine; racemetyrosine [USAN]) is a proprietary modified dysfunctional tyrosine derivative. 

(bb) “Transaction Documents” means this Agreement and the Registration Rights Agreement. 

(cc) “VWAP” means, as of any date, the volume weighted average price for Common Stock on Nasdaq (or other national exchange on
which the Common Stock is then primarily traded) during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its “VAP” function (set to 09:30 start time and 16:00 end
time). 
 2. Initial Purchase and Sale of Shares. 

2.1 Initial Purchase and Sale of Shares. Subject to and upon the terms and conditions set forth in this Agreement, the Company shall
sell and issue to the Purchaser, and Purchaser shall purchase from the Company, at the Initial Closing, 10 million Shares at the Initial Per Share Price for an aggregate purchase price of $20 million (the “Initial
Purchase”). 
 2.2 Initial Closing. 

(a) Subject to the satisfaction or waiver of the conditions set forth in Section 6 of this Agreement, the Initial Purchase shall take
place on the date hereof (the “Initial Closing”). 

  
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 (b) At the Initial Closing, the Company shall deliver to Purchaser a stock certificate
representing the Shares being purchased and acquired by the Purchaser in the Initial Purchase. 
 (c) At the Initial Closing, the Company
shall deliver to Purchaser the Registration Rights Agreement, in the form of Exhibit A, executed by a duly authorized officer of the Company. 

(d) At the Initial Closing, Purchaser shall make payment of the aggregate price of the Initial Purchase in immediately available funds by wire
transfer to an account of the Company designated in writing by the Company. 
 3. Milestone Events Transactions. 

3.1 Milestone Payment. Upon the Company’s achievement of the Milestone Event, Purchaser shall make a
one-time payment of $10 million to the Company, upon the terms described herein (the “Milestone Payment”). 

3.2 Milestone Share Purchase. Upon the Company’s achievement of the Milestone Event, in addition to the Milestone Payment
referenced in Section 3.1, the Company shall sell and issue to the Purchaser, and Purchaser shall purchase from the Company, a number of Shares equal to the quotient of the Milestone Investment Amount divided by the Milestone Per Share Price
(the “Milestone Share Purchase”). 
 3.3 No Repeat Milestones. For the avoidance of doubt, the first Milestone Event
achieved by the Company shall be the only triggering event for the obligations and transactions described in this Section 3. Purchaser shall only be obligated to make a maximum of one Milestone Payment and one Milestone Share Purchase. 

3.4 Milestone Closing. 

(a) Subject to the satisfaction or waiver of the conditions set forth in Sections 6.1 and 6.2 of this Agreement, the Milestone Payment and
Milestone Share Purchase shall take place on the date that is five (5) Business Days after the determination of the Milestone Per Share Price (the “Milestone Closing”). 

(b) At the Milestone Closing, the Company shall deliver to Purchaser a stock certificate representing the Shares being purchased and acquired
by Purchaser in the Milestone Share Purchase. The Shares issued at the Milestone Closing shall be Series A Preferred Stock, as set forth in the Certificate of Designation (including a conversion ratio of Preferred Stock into Common Stock as
described in the definition of Milestone Per Share Price). 
 (c) At the Milestone Closing, Purchaser shall make payment of the aggregate
amount of the Milestone Payment and the Milestone Investment Amount in immediately available funds by wire transfer to an account of the Company designated in writing by the Company. 

  
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 (d) Notwithstanding anything contained in Section 3 (including this Section 3.4)
to the contrary, in the event that the Company consummates a Corporate Transaction prior to the Milestone Closing, the Purchaser shall have no obligation to effect the Milestone Share Purchase and such obligations shall terminate and be of no
further force and effect. 
 (e) Notwithstanding anything contained in Section 3 (including this Section 3.4) to the contrary, in
the event that the Milestone Event does not occur prior to the Expiration Date, the Purchaser shall have no obligation to effect the Milestone Payment and Milestone Share Purchase and such obligations shall terminate and be of no further force and
effect, it being understood that the Purchaser shall retain its right to consummate the Milestone Share Purchase and Milestone Payment jointly at its option, subject to the terms and conditions applicable to the Milestone Closing as set forth
herein. 
 4. Representations and Warranties of the Company. Except as set forth in the SEC Filings (including any exhibits thereto), the Company
hereby represents and warrants to the Purchaser as of the date hereof (and, with respect to the Milestone Representations, as defined herein, as of the Milestone Closing Date) as follows: 

4.1 Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of
Delaware and is qualified to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification, except where the failure to be in so good standing or to qualify would not have,
individually or in the aggregate, a Material Adverse Effect (as defined below) upon the Company. The Company has all requisite corporate power and authority to carry on its business as now being conducted. 

4.2 Capitalization. The authorized capital stock of the Company consists of 300,000,000 shares of Common Stock, of which 112,533,905
shares are outstanding on the date hereof, and 10,000,000 shares of Preferred Stock, $0.0001 par value per share, of which no shares are outstanding on the date hereof. The Company has designated 10,000 shares of its Preferred Stock as Series A
Preferred Stock as set forth in the Certificate of Designation of Series A Convertible Preferred Stock of the Company (the “Certificate of Designation”), of which no shares are outstanding on the date hereof. Except as set forth in
the SEC Filings or awarded in accordance with the Company’s equity compensation plans filed as exhibits to the SEC Filings, there are no existing options, warrants, calls, preemptive (or similar) rights, subscriptions or other rights,
agreements, arrangements or commitments of any character obligating the Company to issue, transfer or sell, or cause to be issued, transferred or sold, any shares of the capital stock of the Company or other equity interests in the Company or any
securities convertible into or exchangeable for such shares of capital stock or other equity interests, and there are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of its capital stock or
other equity interests. 
 4.3 Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC
Filings. The Company owns, directly or indirectly, all of the issued and outstanding capital stock or other equity interests of each subsidiary free and clear of any liens, and all of the issued and outstanding shares of capital stock or other
equity interests of each subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase equity interests of each subsidiary. 

  
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 4.4 Authorization. All corporate action on the part of the Company and its officers,
directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein has been taken. When executed and delivered by the Company, this Agreement
shall constitute a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’
rights generally and by general equitable principles. The Company has all requisite corporate power to enter into this Agreement, and to carry out and perform its obligations under the terms of this Agreement. 

4.5 Valid Issuance of the Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of
this Agreement, will be duly and validly issued, fully paid and non-assessable and free and clear of all liens imposed or permitted by the Company, other than restrictions on transfer provided for in this
Agreement or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights imposed thereon by provisions of the Amended and Restated Certificate of Incorporation, By-Laws or
other charter or organizational documents of the Company. Assuming the accuracy of the representations and warranties of the Purchaser in this Agreement, the Shares will be issued in compliance with all applicable federal and state securities laws.
Neither the Company nor, to the knowledge of the Company, any person acting on behalf of the Company has offered or sold any of the Shares by any form of general solicitation or general advertising. Neither the Company nor any person acting on its
behalf has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any Company security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) for the
exemption from registration for the transactions contemplated hereby or would require registration of the Shares under the Securities Act. 

4.6 Use of Proceeds. The net proceeds of the sale of the Shares hereunder shall be used by the Company to continue the development of
its clinical and preclinical assets and for general corporate purposes, capital expenditures, working capital and general and administrative expenses. 

4.7 SEC Filings. The Company has filed, or will file, all reports, schedules, forms, statements and other documents required to be filed
by the Company under the Securities Act and the Exchange Act, including pursuant to Section 12(b), 13(a) or 15(d) thereof, since the beginning of the Company’s 2017 fiscal year, on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Filings prior to the expiration of any such extension. As of their respective filing dates, the SEC Filings complied, or will comply, in all material respects with the requirements of the Securities Act and
the Exchange Act, as applicable, and none of the SEC Filings, when filed, contained, or will contain, any untrue statement of a material fact or omitted to state a material fact required 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 Company is engaged in all material respects only in the business described in the SEC Filings. The financial statements included in the SEC Filings

  
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present fairly, in all material respects, the consolidated financial position of the Company as of the dates shown and its consolidated results of operations and cash flows for the periods shown,
subject in the case of unaudited financial statements to normal, immaterial year-end audit adjustments, and such consolidated financial statements have been prepared in conformity with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”) (except as may be disclosed therein or in the notes thereto, and except that the unaudited financial statements may not contain all
footnotes required by GAAP, and, in the case of quarterly financial statements, except as permitted by Form 10-Q under the Exchange Act). Except as set forth in the financial statements of the Company included
in the SEC Filings filed prior to the date hereof, the Company has not incurred any liabilities, contingent or otherwise, except those incurred in the ordinary course of business, consistent (as to amount and nature) with past practices since the
date of such financial statements, none of which, individually or in the aggregate, have had or would reasonably be expected to have a Material Adverse Effect. 

4.8 Internal Accounting Controls. The Company and the subsidiaries have established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the subsidiaries and designed such disclosure controls and procedures to ensure that information required
to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and the subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of
the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its subsidiaries that have materially affected, or is
reasonably likely to materially affect, the internal control over financial reporting of the Company and its subsidiaries. 
 4.9 Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other Governmental Body or
other person in connection with the execution, delivery and performance by the Company of the Transaction Documents (including the issuance of the Shares), other than (i) the filing with the SEC of one or more Registration Statements in
accordance with the requirements of the Registration Rights Agreement, (ii) the filings required by applicable state securities laws or qualifications that may be required by the Financial Industry Regulation Authority, (iii) the filing of
a Notice of Sale of Securities on Form D with the SEC under Regulation D of the Securities Act, (iv) the filing of any requisite notices and/or application(s) to the Nasdaq for the issuance and sale of the Shares and the listing of the
Shares for trading or quotation, as the case may be, thereon in the time and manner required thereby, (v) all SEC Filings required in connection with the Transaction Documents and the transactions contemplated therein and/or (vi) those
that have been made or obtained prior to the Closing Date (the “Required Filings and Consents”). The consent of the holders of warrants issued by the Company on April 2, 2019 to a variable rate transaction has been obtained and
will 

  
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be effective as of the Initial Closing. This representation and warranty is made in reliance on, and assuming the accuracy of, the representations and warranties of the Purchaser in
Section 5 hereof to the extent that the accuracy of such representations and warranties are relevant to the determination of whether any such consent, approval, order or authorization is required. Except for the transactions contemplated by
this Agreement, including the acquisition of the Shares contemplated hereby, no event or circumstance has occurred or information exists with respect to the Company or its business, properties, operations or financial condition, which, under
applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the SEC Filings are being incorporated by reference into an
effective registration statement filed by the Company under the Securities Act). Other than the Purchaser under the Registration Rights Agreement, no person has any right to cause the Company to effect the registration under the Securities Act of
any securities of the Company or any subsidiary. 
 4.10 Transactions with Affiliates and Employees. Except as set forth in the SEC
Filings, none of the officers or directors of the Company or any subsidiary and, to the Knowledge of the Company, none of the employees of the Company or any subsidiary is presently a party to any transaction with the Company or any subsidiary
(other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the
borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the Knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on
behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company. 

4.11 Resale under Rule 144. Assuming that the Purchaser has satisfied its requirements under Rule 144, the Shares are available for
resale under Rule 144 under the Securities Act. 
 4.12 Application of Takeover Protections. The Company and its board of directors
have taken all necessary action, if any, in order to render inapplicable Section 203 of the Delaware General Corporation Law to the extent such is or could become applicable to the Purchaser as a result of the Purchaser and the Company
fulfilling their obligations or exercising their rights under this Agreement, including without limitation as a result of the Company’s issuance of the shares of Common Stock pursuant to the Milestone Share Purchase and the Purchaser’s
ownership of the Shares. 
 4.13 Compliance with Laws. The Company and each of its subsidiaries are, and since January 1, 2017
have been, in compliance in all material respects with all applicable Laws. No investigation, claim, suit, proceeding, audit or other action by any Governmental Body or authority is pending or, to the Knowledge of the Company, threatened in writing
against the Company or any of its subsidiaries. There is no agreement, judgment, injunction, order or decree binding upon Company or any of its subsidiaries which has or would reasonably be expected to have the effect of prohibiting or materially
impairing any business practice of the Company or any of its subsidiaries, any acquisition of material property by Company or any of its subsidiaries or the conduct of business by Company or any of its subsidiaries as currently conducted. 

  
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 4.14 No Conflict. The execution and delivery of the Transaction Documents by the
Company and the consummation of the transactions contemplated hereby will not conflict with or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any obligation or to a loss of a material benefit under (i) any provision of the Amended and Restated Certificate of Incorporation or By-Laws of the Company or (ii) any agreement or
instrument, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations applicable to the Company or its properties or assets, except in the case of clause (ii) to the extent that such violations and defaults would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Company and its properties and assets. The Company is not in material violation, default or breach under any of its material contracts. All
material contracts have been filed with the Company SEC Filings. The Company is not required to be registered as, and immediately following the Closing Date will not be required to register as, an “investment company” within the meaning of
the Investment Company Act of 1940, as amended. 
 4.15 Tax Matters. The Company and its subsidiaries have timely prepared and filed
all material tax returns required to have been filed by them with all appropriate governmental agencies and timely paid all material taxes shown thereon or otherwise owed by them. There are no material unpaid assessments against the Company nor, to
the Knowledge of the Company, any audits by any federal, state or local taxing authority. All material taxes that the Company is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental
entity or third party when due. There are no material tax liens pending or, to the Knowledge of the Company, threatened against the Company or any of its assets or property. With the exception of agreements or other arrangements that are not
primarily related to taxes entered into in the ordinary course of business, there are no outstanding tax sharing agreements or other such arrangements between the Company and any other corporation or entity (other than a subsidiary of the Company).
The Company is not and has never been a “U.S. real property holding corporation” within the meaning of Section 897 of the Internal Revenue Code of 1986 (“Code”), as amended. The transactions set forth herein will not,
either independently or in connection with other transactions, result in an “ownership change” of the Company within the meaning of Section 382 of the Code. The Company is not, and will not become, a “personal holding
company” within the meaning of Section 542 of the Code. 
 4.16 Title to Properties. The Company and its subsidiaries have
good and marketable title to all real properties and all other material properties and assets owned by them, in each case free from liens, encumbrances and defects, except such as would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect; and the Company and its subsidiaries hold any leased real or personal property under valid and enforceable leases with no exceptions, except such as would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect. 

  
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 4.17 ERISA Compliance. A “Benefit Plan” is an “employee benefit
plan” (as defined under the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) that (i) is established or maintained by the
Company, its Subsidiaries or their “ERISA Affiliates” (as defined below), or (ii) provides benefits or compensation to any current or former employee with respect to their employment or services with the Company, a Subsidiary, or an
ERISA Affiliate pursuant to a professional employer organization (PEO) agreement (each, a “Benefit Plan”); provided, however, that an employee benefit plan described in (ii) above shall be considered a Benefit Plan only to the extent
of the participation of the Company, Subsidiary, or ERISA Affiliate in that Benefit Plan. Except as otherwise disclosed in the Prospectus, each Benefit Plan is in compliance in all material respects with ERISA. “ERISA
Affiliate” means, with respect to the Company or any of its Subsidiaries, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended, and the regulations and
published interpretations thereunder (the “Code”) of which the Company or such Subsidiary is a member. No “reportable event” (as defined under ERISA) has occurred or is reasonably expected to occur with respect to any
Benefit Plan. No Benefit Plan, if such Benefit Plan were terminated, would have any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the Company, its Subsidiaries nor any of their ERISA Affiliates has incurred or
reasonably expects to incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code, in each case except as
would not, individually or in the aggregate, have a Material Adverse Change. Each Benefit Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or failure to act,
which would cause the loss of such qualification. Notwithstanding anything in this subsection (ff) to the contrary, with respect to any representation herein that applies to any “employee benefit plan” that is not established or maintained
by the Company, a Subsidiary, or an ERISA Affiliate, such representation shall be deemed to be made to the Company’s knowledge. 
 4.18
Environmental Matters. The Company is not in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic
substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental Laws”), has not released any hazardous substances regulated by Environmental
Law onto any real property that it owns or operates and has not received any written notice or claim it is liable for any off-site disposal or contamination pursuant to any Environmental Laws, which violation,
release, notice, claim, or liability would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, and to the Knowledge of the Company, there is no pending or threatened investigation that would reasonably be
expected to lead to such a claim. 
 4.19 Trading Market. The Company is in compliance with applicable Nasdaq continued listing
requirements. The Common Stock is listed on Nasdaq under the symbol “TYME”, there are no proceedings pending or, to the Knowledge of the Company, threatened to revoke or suspend such listing and the Company has not received any
communication from Nasdaq with respect to any pending or threatened proceeding that would give rise to a delisting from the Nasdaq. The Company is eligible to register the Shares for resale by the Purchasers on Form
S-3 promulgated under the Securities Act. 

  
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 4.20 No Material Adverse Effect; No Undisclosed Liabilities. From the date of the
latest audited financial statements included within the SEC Filings and immediately prior to the date hereof, except as specifically disclosed in any of the SEC Filings filed prior to the date hereof, (i) there has been no event, occurrence or
development that has had or that could reasonably be expected to have or result in a material adverse effect on the results of operations, assets, business, operations or financial condition of the Company and its subsidiaries, taken as a whole, (a
“Material Adverse Effect”), (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the SEC, (iii) the Company has not altered its method of
accounting, and (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock. 

4.21 Permits. Each of the Company and its subsidiaries possess all certificates, authorizations and permits issued by the appropriate
federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Filings (collectively, “Permits”), and is operating such businesses in compliance with such Permits,
except in each case where the failure to possess such Permits or failure to conduct business in compliance with such permits, would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any subsidiary has
received any notice of proceedings relating to the revocation or modification of any such Permit. 
 4.22 Title to Intellectual
Property. 
 (a) Each of the Company and its subsidiaries owns, or has rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or material for use in connection with their respective businesses as described
in the SEC Filings (collectively, the “Company Intellectual Property”). Neither the Company nor any subsidiary has received a written notice that any of the Company Intellectual Property used by the Company or any subsidiary
violates or infringes upon the rights of any third party. To the Knowledge of the Company, it has complied in all material respects with all of its obligations and duties to the respective patent offices, including the duty of candor and disclosure
to the U.S. Patent and Trademark Office, and all applicable Laws, with respect to all Company Registered IP. The Company has no Knowledge of any information, facts or circumstances that would reasonably be expected to result in any challenge to, or
otherwise adversely impact, in any material respect, the ownership of any Company Registered IP. To the Knowledge of the Company, the Company Registered IP, is subsisting, and the issued patents included in the Company Registered IP are valid and
enforceable. No Person has any right of first refusal, option and/or other right to acquire any right, title or interest in or to, or has any other lien or encumbrance with respect to, any Company Owned IP. 

(b) To the Knowledge of the Company, neither the Company’s conduct of its business nor any consultant, employee or other person or entity
that is or was working for the Company has infringed upon or misappropriated or otherwise violated any material intellectual property rights of any other person or entity, and the manufacturing, use or sale of
SM-88 does not and will not infringe upon, misappropriate or otherwise violate the intellectual property rights of any other person or entity. 

  
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 (c) To the Knowledge of the Company, no person or entity has infringed or misappropriated or
otherwise violated, and no person or entity is currently infringing or misappropriating or otherwise violating any Company Intellectual Property related to SM-88. 

4.23 Absence of Litigation. There is no action, suit, proceeding or, to the Knowledge of the Company, investigation, pending, or, to the
Knowledge of the Company, threatened by any Governmental Body against the Company and in which an unfavorable outcome, ruling or finding in any said matter, or for all matters taken as a whole, would have a Material Adverse Effect. The foregoing
includes, without limitation, any such action, suit, proceeding or investigation that questions this Agreement or the right of the Company to execute, deliver and perform under same. 

4.24 Insurance Coverage. The Company maintains in full force and effect insurance coverage that covers its properties, operations,
personnel and businesses, which insurance is in amounts and insures against such losses and risks as are adequate to protect the Company and its business. The Company has not received notice from any insurer or agent of such insurer that capital
improvements or other expenditures are required or necessary to be made in order to continue such insurance nor has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business. 
 4.25 Brokers and
Finders. No person will have, as a result of the transactions contemplated by the Transaction Documents, any valid right, interest or claim against or upon the Company or the Purchaser for any commission, fee or other compensation pursuant to
any agreement, arrangement or understanding entered into by or on behalf of the Company. The Purchaser shall have any obligation with respect to any fees, or with respect to any claims made by or on behalf of other persons for fees, in each case of
the type contemplated by this Section 4.25 that may be due in connection with the transactions contemplated by the Transaction Documents. 

4.26 No Bad Actors. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the 1933 Act (a
“Disqualification Event”) is applicable to the Company or, to the Knowledge of the Company, any Company covered person, except (i) for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3) is applicable.

 4.27 Healthcare Regulatory Compliance. The Company (i) is and at all times has been in compliance with all statutes, rules and
regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, advertising, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured
or distributed by the Company, including, without limitation, the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301 et seq.), regulations relating to Good Clinical Practices and Good Laboratory Practices and all other local, state, federal,
national, and foreign laws, and final guidance relating to the regulation of the Company (collectively, the “Healthcare Laws”), 

  
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except for such non-compliance as would not, individually or in the aggregate, have a Material Adverse Effect; (ii) possesses all material licenses,
exemptions, certificates, approvals, clearances, authorizations, permits, registrations and supplements or amendments thereto required by any such Healthcare Laws (“Authorizations”) and such Authorizations are valid and in full
force and effect and the Company is not in violation of any term of any such Authorizations, except for such violations as would not, individually or in the aggregate, have a Material Adverse Effect; (iii) has not received written notice of any
claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Body or third party (A) alleging that any product operation or activity is in violation of any Healthcare Laws or
Authorizations or (B) has taken or is taking action to materially limit, suspend, materially modify or revoke any Authorizations, nor, to the Knowledge of the Company, is any such claim, action, suit, proceeding, hearing, enforcement,
investigation, arbitration or other action threatened; (iv) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by
any Healthcare Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and accurate on the date filed in all material respects (or were
corrected or supplemented by a subsequent submission); and (v) is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar agreements with or imposed by any Governmental Body.
Neither the Company, any of its subsidiaries nor any of their respective employees, officers, directors, or agents has been excluded, suspended or debarred from participation in any U.S. federal health care program or human clinical research or, to
the Knowledge of the Company, is subject to any inquiry, investigation, proceeding, or other similar action that could reasonably be expected to result in debarment, suspension, or exclusion. 

4.28 Tests and Preclinical and Clinical Trials. (i) The preclinical studies and clinical trials conducted by or, to the Knowledge
of the Company, on behalf of or sponsored by the Company or its subsidiaries, or in which the Company or its subsidiaries have participated, that are described in the SEC Filings, or the results of which are referred to in the SEC Filings, as
applicable, were, and if still pending are, being conducted in all material respects in accordance with standard medical and scientific research standards and procedures for products or product candidates comparable to those being developed by the
Company and all applicable statutes and all applicable rules and regulations of the FDA and comparable regulatory agencies outside of the United States to which they are subject (collectively, the “Regulatory Authorities”) and Good
Clinical Practice and Good Laboratory Practice requirements; (ii) the descriptions in the SEC Filings of the results of such studies and trials are accurate and complete descriptions in all material respects and fairly present the data derived
therefrom as of the date thereof and, giving effect to any updates or changes reflected in subsequent SEC Filings, remain accurate and complete descriptions in all material respects and fairly present the data derived therefrom, as of the Initial
Closing Date; (iii) to the Knowledge of the Company, there are no other studies or trials not described in the SEC Filings, the results of which the Company believes are inconsistent with or reasonably call into question the results described
or referred to in the SEC Filings; (iv) the Company and its subsidiaries have operated at all times and are currently in compliance with all applicable statutes, rules and regulations of the Regulatory Authorities, except where such non-compliance would not, individually or in the aggregate, have a Material 

  
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Adverse Effect; and (v) neither the Company nor any of its subsidiaries have received any written notices, correspondence or other communications from the Regulatory Authorities or any other
governmental agency requiring or threatening the termination, material modification or suspension of any preclinical studies or clinical trials that are described in the SEC Filings or the results of which are referred to in the SEC Filings, other
than ordinary course communications with respect to modifications in connection with the design and implementation of such studies or trials. 

4.29 Warrant Exercise Price. The Initial Price Per Share, as set forth above, is equal to or above the current exercise price of the
warrants issued by the Company on April 2, 2019 (the “Warrants”) and, accordingly, will not trigger the anti-dilution provisions thereof. 

5. Representations, Warranties and Covenants of the Purchaser. The Purchaser represents and warrants to the Company as of the date hereof (and as of the
Milestone Closing Date) as follows: 
 5.1 Authorization. All action on the part of the Purchaser and, if applicable, its officers,
directors and shareholders necessary for the authorization, execution, delivery and performance of this Agreement, the consummation of the transactions contemplated herein has been taken. When executed and delivered, this Agreement will constitute
the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights
generally and by general equitable principles. The Purchaser has all requisite power or corporate power, whichever is applicable, to enter into this Agreement and to carry out and perform its obligations under the terms of this Agreement. 

5.2 Purchase Entirely for Own Account. The Purchaser is acquiring the Shares being purchased by it hereunder for investment, for its own
account, and not for resale or with a view to distribution in violation of the Securities Act. Except as set forth in this Agreement, nothing contained herein shall be deemed a representation or warranty by the Purchaser to hold the Shares for any
period of time. 
 5.3 Investor Status; Etc. The Purchaser is an “accredited investor” as defined in Rule 501 of Regulation
D promulgated under the Securities Act and was not organized for the purpose of acquiring the Shares. The Purchaser’s financial condition is such that it is able to bear the risk of holding the Shares for an indefinite period of time and the
risk of loss of its entire investment. The Purchaser has been afforded the opportunity to ask questions of and receive answers from the management of the Company concerning its investment in the Shares and has sufficient knowledge and experience in
investing in companies similar to the Company in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its investment in the Company. 

5.4 Securities Not Registered. The Purchaser understands that the Shares have not been registered under the Securities Act or the
securities laws of any state, or other jurisdiction, by reason of their issuance by the Company in a transaction exempt from the registration requirements of the Securities Act and applicable state securities laws, and that the Shares must continue
to be held by the Purchaser unless a subsequent disposition thereof is registered under the Securities Act or exempt from such registration. 

  
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 5.5 No Conflict. The execution and delivery of the Transaction Documents by the
Purchaser and the consummation of the transactions contemplated therein will not conflict with or result in any violation of or default by the Purchaser (with or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to a loss of a material benefit under (i) any provision of the organizational documents of the Purchaser, (ii) any agreement or instrument, permit, franchise, license,
judgment, order, statute, law, ordinance, rule or regulations, applicable to the Purchaser or its respective properties or assets or (iii) require the consent, notice or other action by any person under any contract to which the Purchaser is a
party, except in the case of clauses (ii) or (iii) where the failure to obtain any requisite consent or notice would not give rise to an event, occurrence or development that has had or that could reasonably be expected to have or result in a
material adverse effect on the results of operations, assets, business, operations or financial condition of the Purchaser or its subsidiaries, taken as a whole. 

5.6 Consents. All consents, approvals, orders and authorizations required on the part of the Purchaser in connection with the execution,
delivery or performance of this Agreement and the consummation of the transactions contemplated herein have been obtained and are effective as of the applicable Closing Date (except for filings pursuant to Section 16 or Regulation 13D under the
Exchange Act, which shall be filed within the time periods provided for in such regulations). 
 5.7 Company Representations and
Warranties. No representations or warranties have been made to the Purchaser by the Company or any officer, employee, agent, Affiliate, Associate or subsidiary of the Company other than the representations and warranties of the Company contained
herein. In purchasing the Shares, the Purchaser specifically disclaims that it is relying on, or has relied upon, any representations or warranties that may have been made by the Company or any other person other than those contained herein and
acknowledges and agrees that the Company has specifically disclaimed any such other representation or warranty made by the Company or any other person. 

5.8 No Recommendation. The Purchaser understands that no federal or state agency has made any findings or determination as to the
fairness of the offering or the sale and purchase of the Shares hereunder (or any part thereof) for public investment, or any recommendation or endorsement of the Shares (or any part thereof).  

5.9 Access to Information. The Purchaser has had access to such information regarding the business and finances of the Company and
the Shares including, without limitation, the SEC Filings and the Company’s virtual data site containing proprietary and confidential information, and has been provided the opportunity to discuss with the Company’s management the business,
affairs and financial condition of the Company and such other matters with respect to the Company and Shares as would concern a reasonable person considering the transactions contemplated by this Agreement and/or concerned with the operation of the
Company, including, without limitation, pursuant to a meeting and/or discussions with management of the Company. 
 5.10 No Insider
Trading or Tipping. The Purchaser acknowledges that trading in the Company’s securities while in possession of material non-public information or communicating that information to any other
person who trades in such securities could subject the Purchaser to liability under U.S. federal and state securities laws and the rules and regulations promulgated thereunder. The Purchaser and its Affiliates shall not engage in any transaction or
provide material non-public information with respect to securities of the Company while in possession of any material non-public information relating to the Company or
its securities. 

  
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 5.11 Initial Lock-Up and Future Lock-Up Agreements. During the period beginning on the Initial Closing Date and ending at the earlier of the date that is (i) three (3) months after the occurrence of the Milestone Event or
(ii) three (3) years following the date hereof (the “Lockup Period”), Purchaser shall not, directly or indirectly, (i) offer, sell, offer to sell, contract to sell, hedge, pledge, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge, sale of any option or contract to purchase, purchase of any option or
contract of sale, grant of any option, right or warrant to purchase or other sale or disposition), or otherwise transfer or dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition
by any person at any time in the future), any Company Common Stock or any of securities, beneficially owned, within the meaning of Rule 13d-3 under the Exchange Act (“Beneficial Ownership”) by
such Purchaser or (ii) enter into any swap or other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any securities, whether any such swap or transaction
described in clause (i) or (ii) above is to be settled by delivery of any securities. The Purchaser further agrees that, in connection with any public offering of shares of Common Stock or securities exchangeable or convertible into shares of
Common Stock that is consummated within three (3) years of the Initial Closing Date, if and to the extent required by the underwriters for such offering, the undersigned will execute a customary
“lock-up” agreement regarding some or all of the securities of the Company then owned by the undersigned thereby agreeing not to sell such securities for a period of time after completion of the
public offering not to exceed sixty (60) days, whether or not the securities are included in the public offering. 
 5.12 Risk
Factors. The Purchaser has received, read and understands the various risks associated with an investment in the Shares, including those set forth in the Company’s SEC Filings and those on Exhibit B to this Agreement. 

5.13 Warrantholder Rights. The Purchaser acknowledges that the Milestone Share Purchase could result in triggering of the
anti-dilution provisions under the Warrants, depending on the conversion price of the Preferred Shares. 
 5.14 Confidentiality. 

(a) The Purchaser acknowledges that it has received and may in the future receive non-public and
material information within the meaning of the Securities Act (“Confidential Information”). The Purchaser hereby acknowledges and agrees that, for so long as the Confidential Information has not been publicly disclosed by the
Company, the Purchaser shall not (i) disclose any Confidential Information to any person other than to those advisors, agents, counsel, Affiliates, directors, officers, key employees, Associates and other representatives of the Purchaser and
its subsidiaries actively involved in the investment decision with respect to the transactions contemplated by this Agreement (“Representatives”) other than as may be required by law or (ii) use the Confidential Information for
any purpose other than to evaluate the 

  
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transactions contemplated by this Agreement; provided, however, the restriction in clause (ii) above shall not apply after expiration of the Standstill Period. The Purchaser shall cause each
of its Representatives to comply with this Agreement as though a party hereto and shall be responsible for any such breach by a Representative. Notwithstanding the foregoing, Confidential Information shall not include information or material that
(i) is publicly available or becomes publicly available through no action or fault of the Purchaser, (ii) was already in the Purchaser’s possession or known to the Purchaser prior to being disclosed or provided to the Purchaser by or
on behalf of the other party, (iii) was or is obtained by the Purchaser from a third party, provided, that, such third party was not bound by a known contractual, legal or fiduciary obligation of confidentiality to the Company with respect to
such information or material, (iv) is independently developed by the Purchaser without reference to the Confidential Information, or (v) information that is required to be disclosed by applicable Law or a court of competent jurisdiction.

 5.15 Certain Transactions. 

(a) Without the prior written consent of the Company, for a period beginning on the Initial Closing Date and ending at the earlier to occur of
(i) three (3) months after the occurrence of the Milestone Event or (ii) three (3) years following the date hereof (the “Standstill Period”), neither the Purchaser nor any of its Affiliates, Associates or Representatives,
acting alone or as part of a group, will acquire or offer or agree to acquire, directly or indirectly, by purchase or otherwise (including by way of Beneficial Ownership), voting securities or securities convertible into voting securities of the
Company, or any option or other right to acquire such ownership, in each case other than in connection with the purchase of Shares under this Agreement. Without the prior written consent of the Company, for a period of one year from the date hereof,
neither the Purchaser nor any of its Affiliates, Associates or Representatives, acting alone or as part of a group, will knowingly; (i) propose to enter into, directly or indirectly, any merger, business combination, tender offer, exchange
offer, acquisition of assets, acquisition of interests in the Company’s or its Affiliates’ securities, recapitalization, restructuring, liquidation, dissolution or similar transaction involving the Company or any of its Affiliates;
(ii) otherwise seek to influence or control, in any manner whatsoever, the management or policies of the Company or any of its Affiliates (including proxy solicitation or otherwise); (iii) assist, advise or encourage (including by knowingly
providing or arranging financing for that purpose) any other person in performing any of the foregoing; or (d) disclose any intention, plan or arrangement to do any of the foregoing. 

(b) Notwithstanding the foregoing, the provisions of 5.15(a) shall no longer be applicable in the event of the occurrence of any of the
following: 
 (i) Company enters into a definitive written merger, sale or other business combination agreement pursuant to which fifty
percent (50%) or more of the outstanding Common Stock of the Company would be converted into cash or securities of another person or group or, immediately after the consummation of such transaction, fifty percent (50%) or more of the then
outstanding Common Stock of the Company would be owned by persons other than the holders of Common Stock of the Company immediately prior to the consummation of such transaction, or which would result in all or substantially all of the
Company’s assets being sold to any person or group; 

  
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 (ii) The announcement or commencement by any third party person or group of a tender offer
or exchange offer to acquire securities of the Company which, if successful, would result in such person or group owning, when combined with any other securities owned by such person or group, fifty percent (50%) or more of the then outstanding
common stock; 
 (iii) The Company becomes the subject of any bankruptcy, insolvency or similar proceeding (except for an involuntary
proceeding that is dismissed within sixty (60) days). 
 (iv) The Company engages or publicly announces its intention to engage in the
solicitation of one (1) or more third party bids for any transaction which would result in a change of control of the Company; or 

(v) The voting securities or securities convertible into voting securities of the Company being acquired by the Purchaser or any of its
Affiliates, Associates or Representatives is less than 5% of the issued and outstanding equity of the Company. 
 6. Conditions Precedent. 

6.1 Conditions to the Obligation of the Purchaser to Consummate the Closings. The obligation of Purchaser to consummate the Initial
Closing or the Milestone Closing, as applicable, and to purchase and pay for the Shares pursuant to this Agreement is subject to the satisfaction of the following conditions precedent: 

(a) Representations and Warranties. 

(i) For the Initial Closing, the representations and warranties contained herein of the Company shall be true and correct (it being understood
and agreed by the Purchaser that, in the case of any representation and warranty of the Company contained herein which is not hereinabove qualified by application thereto of a materiality standard, such representation and warranty need be true and
correct only in all material respects in order to satisfy as to such representation or warranty the condition precedent set forth in the foregoing provisions of this Section 6.1(a)(i)). 

(ii) For the Milestone Closing, the representations and warranties of the Company contained in Sections 4.1, 4.2, 4.4, 4.5, 4.7, 4.8, 4.9,
4.10, 4.22, 4.26, 4.27 and 4.28 (together, the “Milestone Representations”) shall be true and correct (it being understood and agreed by the Purchaser that, in the case of any representation and warranty of the Company contained
herein which is not hereinabove qualified by application thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in order to satisfy as to such representation or warranty the
condition precedent set forth in the foregoing provisions of this Section 6.1(a)(ii)); provided, however that the representations and warranties contained in Sections 4.22, 4.27 and 4.28 shall be true and correct in all respects
except where the failure of such representation and warranties to be so true and correct would not have, or would not reasonably be expected to have, a Material Adverse Effect. 

  
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 (b) The Company shall have performed all obligations and conditions herein required to be
performed or observed by the Company on or prior to the Closing Date. 
 (c) No proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing Date, shall have been instituted before any court, arbitrator or Governmental Body, agency or official and shall be pending. 

(d) No stop order or suspension of trading shall have been imposed by Nasdaq, the SEC or any other governmental or regulatory body with respect
to public trading in the Common Stock. 
 (e) The Company shall have obtained any and all consents, permits, approvals, registrations and
waivers necessary for the consummation of the purchase and sale of the Shares and the consummation of the other transactions contemplated by the Transaction Documents, all of which shall be in full force and effect. 

(f) The purchase of and payment for the Shares by the Purchaser shall not be prohibited by any law or governmental order or regulation. All
necessary consents, approvals, licenses, permits, orders and authorizations of, or registrations, declarations and filings with, any governmental or administrative agency or of any other person with respect to any of the transactions contemplated
hereby, other than for Regulation D and state “Blue Sky” filings with respect to the sale of the Shares, shall have been duly obtained or made and shall be in full force and effect. 

(g) All instruments and corporate proceedings in connection with the transactions contemplated by this Agreement to be consummated on the
Closing Date shall be reasonably satisfactory in form and substance to the Purchaser, and the Purchaser shall have received counterpart originals, or certified or other copies of all documents, including without limitation records of corporate or
other proceedings, which it may have reasonably requested in connection therewith. 
 (h) The Shares to be issued pursuant to this Agreement
shall have been approved for listing (subject to official notice of issuance) on the Nasdaq market or any other national securities exchange upon which the Company’s shares are then listed. 

(i) Any applicable waiting period applicable to the consummation of the Transactions under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, or any other applicable anti-trust laws relating to the transactions contemplated hereby shall have expired or been terminated. 

(j) There shall have been no Material Adverse Effect with respect to the Company since the date hereof. 

(k) The Company shall have executed and delivered: 

  
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 (i) Instruction to its transfer agent to issue a stock certificate representing the Shares
being purchased and acquired by Purchaser on the Closing Date to be delivered promptly after the Closing Date (but in no event later than one Business Day following the Closing Date); 

(ii) a legal opinion of Company’s legal counsel, in a form satisfactory to Purchaser, executed by such counsel and delivered to the
Purchaser; 
 (iii) the Company’s wire instructions; 

(iv) a copy of the Company’s Certificate of Incorporation, as amended, certified by the Secretary of State of the State of Delaware
within thirty (30) days of the Initial Closing Date; 
 (v) a certificate, signed by a duly elected officer of the Company, certifying
as of the Closing Date as to the satisfaction of each of the conditions set forth in Section 6.1(a) and 6.1(b); 
 (vi) a certificate
evidencing the formation and good standing of the Company issued by the Secretary of State of the State of Delaware, as of a date within ten (10) days of the applicable Closing Date; 

(vii) a certificate executed by the Secretary of the Company and dated as of the Closing Date, certifying as to (i) the resolutions
adopted by the Company’s board of directors approving this Agreement, (ii) the Certificate of Incorporation of the Company, as amended, and (iii) the Company’s bylaws, as amended, each as in effect as of the applicable Closing
Date; 
 (viii) The Company shall not have undergone a Corporate Transaction; and, 

(ix) The Certificate of Designation shall have been filed and accepted by the Secretary of State of the State of Delaware. 

6.2 Conditions to the Obligation of the Company to Consummate the Closing. The obligation of the Company to consummate the Initial
Closing and the Milestone Closing, as applicable, and to issue and sell to the Purchaser the Shares to be purchased at the Initial Purchase is subject to the satisfaction of the following conditions precedent: 

(a) The representations and warranties contained herein of Purchaser shall be true and correct on and as of each Closing Date with the same
force and effect as though made on and as of the each Closing Date (it being understood and agreed by the Company that, in the case of any representation and warranty of a Purchaser contained herein which is not hereinabove qualified by application
thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in order to satisfy as to such representation or warranty the condition precedent set forth in the foregoing provisions of
this Section 6.2(a)). 
 (b) The Purchaser shall have performed all obligations and conditions herein required to be performed or
observed by the Purchaser on or prior to the Closing Date. 

  
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 (c) No proceeding challenging this Agreement or the transactions contemplated hereby, or
seeking to prohibit, alter, prevent or materially delay the Closing Date, shall have been instituted before any court, arbitrator or Governmental Body, agency or official and shall be pending. 

(d) The sale of the Shares by the Company shall not be prohibited by any law or governmental order or regulation. All necessary consents,
approvals, licenses, permits, orders and authorizations of, or registrations, declarations and filings with, any governmental or administrative agency or of any other person with respect to any of the transactions contemplated hereby, shall have
been duly obtained or made and shall be in full force and effect. 
 (e) All instruments and corporate proceedings in connection with the
transactions contemplated by this Agreement to be consummated on the Closing Date shall be reasonably satisfactory in form and substance to the Company, and the Company shall have received counterpart originals, or certified or other copies of all
documents, including without limitation records of corporate or other proceedings, which it may have reasonably requested in connection therewith. 

(f) The receipt by the Company of the Initial Purchase Price in immediately available funds by wire transfer to an account of the Company
designated in writing by the Company to such Purchaser. 
 6.3 Milestone Payment. Except as set forth in Sections 6.1(a)(ii) (with
respect to Sections 4.22, 4.27 and 4.28) and 6.1(j) (collectively, the “Milestone Payment Conditions”), the Parties acknowledge that the obligation of Purchaser to make the Milestone Payment is not subject to the conditions in
Section 6.1. Notwithstanding anything else in this Agreement, in the event that the conditions set forth in Section 6.1 (other than Milestone Payment Conditions) are not met or waived by Purchaser by the Milestone Closing Date, such that
the Milestone Share Purchase is not consummated, the Milestone Payment shall still be payable by Purchaser on the date that is five (5) Business Days after the determination of the Milestone Per Share Price. For the avoidance of doubt, the
Purchaser shall have no obligation to pay the Milestone Payment if the Milestone Payment Conditions are not met or waived in accordance with the terms and conditions of this Agreement. For purposes of this Section 6.3 and the Milestone Payment
Conditions, “Material Adverse Effect” shall be deemed to include the FDA’s express statement, prior to a Milestone Event, that it intends to reject any NDA for SM-88, regardless of the primary
efficacy endpoints having been met, and Tyme is unable to amend the protocol to satisfy the FDA’s registration requirements within nine months of such statement. 

7. Transfer, Legends. 
 7.1 Securities
Law Transfer Restrictions. The Purchaser shall not sell, assign, pledge, transfer or otherwise dispose or encumber any of the Shares being purchased by the Purchaser hereunder, except pursuant to (i) an effective registration statement
under the Securities Act or (ii) an available exemption from registration under the Securities Act and applicable state securities laws and, if requested by the Company, upon delivery by such Purchaser of an opinion of counsel reasonably
satisfactory to the Company and the Company’s counsel to the effect that the proposed transfer is exempt from registration under the Securities Act and applicable state securities laws, 

  
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provided, however, that any such opinion of the Purchaser’s counsel shall be entitled to rely on a letter from the Company’s counsel certifying that the Company is not then a shell
company, as that term is defined in Section 12b-2 of the Exchange Act and has met the information requirements in Rule 144 such that the Shares may be resold in reliance on Rule 144. Any transfer or
purported transfer of the Shares in violation of this Section 7.1 shall be voidable by the Company. The Company shall not register any transfer of the Shares in violation of this Section 7.1. The Company may, and may instruct any transfer
agent for the Company, to place such stop transfer orders as may be required on the transfer books of the Company in order to ensure compliance with the provisions of this Section 7.1. 

7.2 Legends. Each certificate representing any of the Shares shall be endorsed with the legend set forth below, and Purchaser covenants
that, except to the extent such restrictions are waived by the Company, it shall not transfer the Shares represented by any such certificate without complying with the restrictions on transfer described in this Agreement and the legend endorsed on
such certificate: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE (I) ARE SUBJECT TO CERTAIN CONTRACTUAL
RESTRICTIONS UNDER AN AGREEMENT WITH THE ISSUER (THE “PURCHASE AGREEMENT”) AND (II) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED OR THE SECURITIES LAWS OF ANY STATE OF, OR JURISDICTION OUTSIDE OF,
THE UNITED STATES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (A) IN COMPLIANCE WITH THE PURCHASE AGREEMENT AND (B) IN ABSENCE OF (i) AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID ACT OR AN OPINION OF COMPANY COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.” 
 8.
Covenants of the Company. 
 8.1 SEC Reporting; Registration Rights 

(a) The Company agrees to satisfy reporting under, and comply with Section 12(b) or 12(g) reporting obligations, as applicable, under the
Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof required to be filed by the Company pursuant to the Exchange
Act and the Securities Act; provided, however, the preceding covenant shall cease to apply to the Company in the event the Common Stock of the Company shall be the subject of a business combination, tender offer or other purchase transaction that
has been concluded and pursuant to which any of the foregoing reporting obligations shall be subject to termination or suspension under applicable rules of the Exchange Act or the Securities Act. The Company shall use commercially reasonable efforts
to continue to satisfy all applicable requirements of Rule 144 (or any successor thereto) for so long as any Shares are outstanding and not registered pursuant to an effective Registration Statement filed with the SEC, and take commercially
reasonable action to ensure that Rule 144 is available to cover the resale of the Shares. 

  
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 8.2 Share Transfers; Disclosure of Certain Confidential Information 

(a) The Company shall use commercially reasonable efforts immediately prior to the expiration of the Lockup Period to disclose certain of the
Confidential Information (as referenced in Section 5.14) provided by the Company to a Purchaser to the extent, if any, reasonably necessary to enable such Purchaser to seek liquidity concerning the Shares under the Securities Act and Exchange
Act following the Lockup Period; provided, however, the Company shall not be obligated to disclose any Confidential Information that (i) could cause competitive harm if disclosed publicly, (ii) constitutes trade secrets,
(iii) constitutes privileged or confidential commercial or financial information of the Company, or (iv) would be inconsistent with or in breach of applicable law (e.g., the Food and Drugs Act or Health Insurance Portability and
Accountability Act of 1996). 
 (b) The Company shall, after the expiration of the Lockup Period, unless a Registration Statement covering
the resale of Purchaser’s Shares is effective under the Securities Act, upon the written request of the Purchaser, cooperate with Purchaser’s requests, from time to time, to effectuate sales of Shares under Rule 144 or other applicable
exemption under the Securities Act. 
 8.3 Required SEC Filings. Purchaser acknowledges that the transactions contemplated herein may
result in Purchaser becoming subject to certain public reporting and filing requirements under federal and state securities laws based upon its level of equity ownership in the Company. From and after the date hereof, Purchaser shall use
commercially reasonable efforts to timely file all such required reports and filings arising from its level of ownership in the Company, including pursuant to Regulation 13D or Section 16 of the Exchange Act, as applicable, for as long as
Purchaser’s ownership levels require the filing of such reports. 
 8.4 Listing of Common Stock. The Company hereby agrees to use
commercially reasonable efforts to maintain the listing or quotation of the Common Stock on Nasdaq. The Company further agrees, if the Company applies to have the Common Stock traded on any other trading market, it will then include in such
application all of the Shares, and will take such other action as is reasonably necessary to cause all of the Shares to be listed or quoted on such other trading market as promptly as possible. The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a trading market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the trading market. The Company agrees
to maintain the eligibility of the Common Stock for electronic transfer through the Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository Trust Company or
such other established clearing corporation in connection with such electronic transfer. 
 8.5 Subsequent Equity Sales. The Company
shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the
Securities Act) that will be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchaser, or that will be integrated with the offer or sale of
the Shares for purposes of the rules and regulations of any trading market such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent
transaction. 

  
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 8.6 No Conflicting Agreements. The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any material respect with the Company’s ability to fulfill its obligations to the Purchaser under the Transaction Documents. 

8.7 Shareholder Rights Plan. The Company shall not adopt any shareholder rights plan (aka “poison pill”) (or similar rights
agreement) with a share ownership threshold lower than the share ownership percentage which will be held by the Purchaser after each Closing Date unless the Purchaser (and any Affiliate(s) and Associate(s)) is excluded therefrom. 

9. Indemnification. 
 9.1
Indemnification. The Company agrees to indemnify and hold harmless the Purchaser and its Affiliates, and their respective directors, officers, trustees, members, managers, employees, investment advisers and agents (each, for the purposes of
this Section 9, an “Indemnified Party”), from and against any and all losses, claims, damages, liabilities and expenses (including reasonable and documented attorney fees and disbursements and other documented out-of-pocket expenses reasonably incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or threatened and the costs of
enforcement thereof) but excluding (except to the extent arising in connection with any third-party claim, action or proceeding) any incidental, consequential, special or indirect damages (collectively, “Losses”) to which such
Indemnified Party may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under the Transaction Documents, and will reimburse any such Indemnified Party
for all such amounts as they are incurred by such Indemnified Party solely to the extent such amounts have been finally judicially determined not to have resulted from such Indemnified Party’s fraud, gross negligence or willful misconduct. 

9.2 Conduct of Indemnification Proceedings. Any Indemnified Party hereunder shall (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of a third party claim with its own counsel; provided that any person entitled to
indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (a) the indemnifying party has
agreed in writing to pay such fees or expenses, (b) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person
elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further, that the failure of any
Indemnified Party to give written notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in

  
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the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of
more than one separate firm of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. No Indemnified Party will, except with the consent of the indemnifying party,
consent to entry of any judgment or enter into any settlement. 
 10. Miscellaneous Provisions. 

10.1 Public Statements or Releases. The initial press release with respect to the execution of this Agreement shall be a joint press
release to be reasonably agreed upon by Purchaser and the Company. Following such initial press release, the parties shall cooperate in good faith with each other regarding the form, content and timing of any other public disclosure or announcement
of this Agreement or the transactions contemplated hereby, provided, nothing in this Agreement shall limit either party’s ability to make public disclosures reasonably deemed required by such party under applicable law. Following the Initial
Closing, the Company shall timely file a Current Report on Form 8-K regarding the Transaction Documents within the time period required by the Exchange Act. The parties acknowledge that this Agreement shall be
filed as an exhibit to the Company’s SEC Filings. 
 10.2 Form D; Blue Sky Filings. The Company agrees to timely file a Form D
with respect to the sale of the Shares by the Company under this Agreement as required under Regulation D. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify
the Shares for, sale to the Purchaser at the Closing Date under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Purchaser. 

10.3 Further Assurances. Each party agrees to, and shall cause their respective affiliates to, cooperate fully with the other party and
to execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by the other party to better evidence and reflect the transactions described herein and contemplated hereby,
and to carry into effect the intents and purposes of this Agreement and to consummate the transactions contemplate by the Transaction Documents.. 

10.4 Rights Cumulative. Each and all of the various rights, powers and remedies of the parties shall be considered to be cumulative with
and in addition to any other rights, powers and remedies which such parties may have at law or in equity in the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall neither
constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such party. 
 10.5 Corporate
Transaction. Should the Company undergo a Corporate Transaction, Sections 3.2 and 3.4 (only insofar as such provisions relate to the Milestone Share Purchase and not the Milestone Payment) as well as 8.1, 8.2, 8.3, 8.4, 8.5 and 8.7 of this
Agreement (including the obligations to effect the Milestone Share Purchase) shall terminate. 

  
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 10.6 Pronouns. All pronouns or any variation thereof shall be deemed to refer to the
masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require. 
 10.7
Notices. 
 (a) Any notices, correspondence, requests, consents, claims, demands, waivers and other communications required or
permitted to be given hereunder (collectively, “correspondence”) shall be sent by postage prepaid first class mail, courier or recognized overnight mail service or delivered by hand to the party to whom such correspondence is required or
permitted to be given hereunder. The date of giving any correspondence shall be the date of its actual receipt. 
 (b) All correspondence to
the Company shall be addressed as follows: 
 Tyme Technologies, Inc. 

17 State Street, 7th Floor 
 New
York, NY 10004 
 Attention: Jim Biehl, Chief Legal Officer 

Email: Jim.Biehl@tymeinc.com 

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

Drinker Biddle & Reath LLP 

One Logan Square, Suite 2000 

Philadelphia, PA 19103 

Attention: Elizabeth Diffley, Esq. 

Email: Elizabeth.Diffley@dbr.com 

(c) All correspondence to the Purchaser shall be addressed as follows: 

Eagle Pharmaceuticals, Inc. 
 50
Tice Boulevard, Suite 315 
 Woodcliff Lake, NJ 07677 

Attention: Chief Financial Officer 

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

Cooley LLP 
 500 Boylston Street

 Boston, MA 02116 

Attention: Marc Recht and Miguel J. Vega 

Email: mrecht@cooley.com; mvega@cooley.com 

Fax No.: 617.937.2400 
 (d) Any
party may change the address to which correspondence to it is to be addressed by notification as provided for herein. 

  
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 10.8 Captions. The captions and paragraph headings of this Agreement are solely for
the convenience of reference and shall not affect its interpretation. 
 10.9 Severability. Should any part or provision of this
Agreement be held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be replaced with a provision which accomplishes, to the extent possible, the original
business purpose of such part or provision in a valid and enforceable manner, and the remainder of this Agreement shall remain binding upon the parties hereto. 

10.10 Specific Performance and Equitable Remedies. Each of 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 the non-breaching counterparty shall be entitled to equitable remedies, including, but not limited to, obtaining an injunction
and/or specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity. 
 10.11
Governing Law. This Agreement and all matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal and substantive laws of the State of Delaware, without regard to any choice or
conflict of laws provision or rule thereof. 
 10.12 Dispute Resolution. The parties hereby (a) irrevocably and unconditionally
submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the U.S. District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement,
(b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the U.S. District Court for the District of Delaware, and (c) waive, and agree not to
assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or
execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. 

10.13 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT 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 OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT 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 10.13. 

  
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 10.14 Waiver. No waiver of any term, provision or condition of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this
Agreement. 
 10.15 Expenses. Each party to this Agreement will bear its own costs and expenses, including, without limitation, fees
and disbursements of counsel, financial advisors and accountants, in connection with this Agreement and the transactions contemplated hereby, whether or not the Initial Closing and/or Milestone Closing shall have occurred. 

10.16 Assignment. Subject to the express terms of this Agreement, the rights and obligations of the parties hereto shall inure to the
benefit of and shall be binding upon any authorized successors and permitted assigns of each party in accordance with this Agreement. Purchaser may not assign its rights or obligations under this Agreement or designate another person (i) to
perform all or part of its obligations under this Agreement or (ii) to have all or part of its rights and benefits under this Agreement, in each case without the prior written consent of the Company. Notwithstanding the foregoing, Purchaser may
assign this Agreement and the rights and obligations hereunder (A) to any Affiliate of Purchaser (provided the Company receives reasonably satisfactory evidence that such Affiliate is able to meet its obligations hereunder), or (B) to a
successor to all or substantially all of the assets of Purchaser (irrespective of the nature of the transaction, whether by way of stock sale, asset sale or otherwise). The Company may not assign its rights or obligations under this Agreement
without the prior written consent of the Purchaser. In the event of any assignment in accordance with the terms of this Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement by executing and agreeing to an
assumption agreement reasonably acceptable to the other party. Any assignment or transfer in violation of this section shall be void. 

10.17 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties
hereto and their authorized successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement. 
 10.18 Survival. Subject to the limitations and other provisions of this Agreement, the
respective representations and warranties given by the parties hereto shall survive each of the Initial Closing and Milestone Closing for a period of one year, , and each covenant and agreement contained herein shall survive until fully performed by
the applicable party. Notwithstanding the foregoing, any claims asserted in good faith (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to
the expiration of the above survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved. 

10.19 Entire Agreement. This Agreement, along with any confidentiality agreement signed by a Purchaser for the benefit of the Company
and/or its Affiliates, constitutes the sole and entire agreement among the parties hereto respecting the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations, understandings, representations and statements
respecting the subject matter hereof, whether written or oral. 

  
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 10.20 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email 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. 
 10.21 Amendments and Waivers. This Agreement may be amended,
modified or supplemented at any time only by written agreement signed by the Company and the Purchaser, and any failure of the Company to comply with any term or provision of this Agreement may be waived by Purchaser, and any failure of Purchaser to
comply with any term or provisions of this Agreement may be waived by Company, at any time by an instrument in writing signed by or on behalf of such other party, but such waiver shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure to comply. 
 [Signature Page Follows] 

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

 

			
	By:	 	 /s/ Steve Hoffman

	Name:	 	Steve Hoffman
	Title:	 	Chief Executive Officer

 EAGLE PHARMACEUTICALS, INC. 
  

			
	By:	 	 /s/ Pete A. Meyers

	Name:	 	Pete A. Meyers
	Title:	 	Chief Financial Officer

 [Signature Page to Securities Purchase Agreement]AGREEMENT AND PLAN OF MERGER

By and Among

ACQUIRED SALES CORP.

LIFTED LIQUIDS, INC.

GERARD M. JACOBS

WILLIAM C. JACOBS

and

WARRENDER ENTERPRISE INC.

and

NICHOLAS S. WARRENDER

Dated as of January 7, 2020

AGREEMENT AND PLAN OF MERGER

This Agreement and Plan of Merger (this “Agreement”), is entered into as of _______, 2019, by and among Acquired Sales Corp., a Nevada corporation (“AQSP”), Lifted Liquids, Inc., an Illinois corporation and a wholly-owned Subsidiary of AQSP (“Merger Sub”), Gerard M. Jacobs (“GMJ”), William C. Jacobs (“WCJ” and together with GMJ, each, a “Jacobs Owner” and collectively, the “Jacobs Owners”) and WARRENDER ENTERPRISE INC., a Wisconsin corporation d/b/a Lifted Liquids (the “Company”) and Nicholas S. Warrender (the “Company Owner”). Capitalized terms used herein (including in the immediately preceding sentence) and not otherwise defined herein shall have the meanings set forth in Section 9.1.

RECITALS

WHEREAS, the parties intend for AQSP to acquire the Company, on the terms and subject to the conditions set forth in this Agreement;

WHEREAS, in furtherance of such acquisition of the Company by AQSP, and on the terms and subject to the conditions set forth in this Agreement and in accordance with the Illinois Business Corporation Act of 1983 (the “IL BCA”) and the Wisconsin Business Corporation Law (the “WI BCL”), the Company shall be merged with and into Merger Sub (the “Merger”), with Merger Sub as the surviving entity (the “Surviving Entity”), and each outstanding share of the Company’s common stock, no par value  per share (the “Company Common Stock”) shall be converted into the right to receive the Merger Consideration;

WHEREAS, the Board of Directors of the Company has: (a) determined that it is in the best interests of the Company and the holders of shares of Company Common Stock, and declared it advisable, to enter into this Agreement with AQSP and Merger Sub; and (b) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger;

WHEREAS, the Board of Directors of AQSP (the “AQSP Board”) has: (a) determined that it is in the best interests of AQSP and its stockholders, and declared it advisable, to enter into this Agreement; and (b) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger;

WHEREAS, the Board of Directors of Merger Sub/AQSP, in its capacity as the sole shareholder of Merger Sub has: (a) determined that it is in the best interests of Merger Sub and its shareholder, and declared it advisable, to enter into this Agreement; and (b) approved the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, including the Merger;

WHEREAS, the AQSP Board has resolved to recommend that the holders of shares of AQSP’s common stock, par value $0.001 per share (the “AQSP Common Stock”) approve the issuance of shares of AQSP Common Stock in connection with the Merger on the terms and subject to the conditions set forth in this Agreement (the “AQSP Stock Issuance”);

WHEREAS, for U.S. federal income tax purposes, the parties intend that the Merger qualifies as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue 

Code of 1986, as amended (the “Code”), and that this Agreement be, and is hereby, adopted as a plan of reorganization within the meaning of Section 368(a) of the Code; and

WHEREAS, the parties desire to make certain representations, warranties, covenants, and agreements in connection with the Merger and the other transactions contemplated by this Agreement and also to prescribe certain terms and conditions to the Merger.

NOW, THEREFORE, in consideration of the foregoing and of the representations, warranties, covenants, and agreements contained in this Agreement, the parties, intending to be legally bound, agree as follows:

ARTICLE I

THE MERGER

Section 1.1The Merger. On the terms and subject to the conditions set forth in this Agreement, and in accordance with the IL BCA and the WI BCL, at the Effective Time: (i) the Company shall merge with and into Merger Sub; (ii) the separate corporate existence of the Company shall cease; and (iii) Merger Sub shall continue its corporate existence under the IL BCA as the surviving corporation in the Merger. 

Section 1.2Closing. Upon the terms and subject to the conditions set forth herein, the closing of the Merger (the “Closing”) shall take place at 12:01 p.m., Chicago time, on a date that is as soon as practicable (and, in any event, within three Business Days) after the satisfaction or, to the extent permitted hereunder, waiver of all conditions to the Merger set forth in Article VI (other than those conditions that by their nature are to be satisfied at the Closing), unless this Agreement has been terminated pursuant to its terms or unless another time or date is agreed to in writing by the parties hereto. The Closing shall be held at the offices of Fox Rothschild LLP, 321 N. Clark Street, Suite 1600, Chicago, Illinois 60654, unless another place is agreed to in writing by the parties hereto, or by .pdf delivery of the original execution documents and the actual date of the Closing is hereinafter referred to as the “Closing Date.” 

Section 1.3Effective Time. Subject to the provisions of this Agreement, on the Closing Date, the Company and Merger Sub shall cause articles of merger (the “IL Articles of Merger”) to be executed, acknowledged, and filed with the Secretary of State of the State of Illinois in accordance with the relevant provisions of the IL BCA and articles of merger (the “WI Articles of Merger”) with the Secretary of State of the State of Wisconsin in accordance with the relevant provisions of the WI BCL and shall make all other filings or recordings required under the IL BCA and the WI BCL. The Merger shall become effective at such time as the IL Articles of Merger has been duly filed with the Secretary of State of the State of Illinois and the WI Articles of Merger have been duly filed with the Secretary of State of the State of Wisconsin or at such later date or time as may be agreed by the Company and AQSP in writing and specified in the IL Articles of Merger in accordance with the IL BCA and the WI Articles of Merger in accordance with the WI BCL (the effective time of the Merger being hereinafter referred to as the “Effective Time”). 

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Section 1.4Effects of the Merger. The Merger shall have the effects set in this Agreement and in the applicable provisions of the IL BCA and the WI BCL. Without limiting the generality of the foregoing, and subject thereto from and after the Effective Time, the effects of the Merger shall be that all assets, property, rights, privileges, immunities, powers, franchises, licenses, and authority of the Company and Merger Sub shall vest in the Surviving Entity, and all debts, liabilities, obligations, restrictions, and duties of the Company and Merger Sub shall become the debts, liabilities, obligations, restrictions, and duties of the Surviving Entity. 

Section 1.5Organizational Documents. At the Effective Time: (i) the articles of incorporation of Merger Sub shall be the articles of incorporation of the Surviving Entity; and (ii) the by-laws of Merger Sub shall be the by-laws of the Surviving Entity.  

Section 1.6Directors and Officers. At the Effective Time, the directors of AQSP shall be Gerard M. Jacobs (Chairman), Nicholas S. Warrender (Vice Chairman), Vincent J. Mesolella (Lead outside director), Thomas W. Hines, James S. Jacobs, Joshua A. Bloom, Richard E. Morrissy, Michael D. McCaffrey and a ninth director who will be designated by Nicholas S. Warrender and reasonably acceptable to Gerard M. Jacobs, and the officers of AQSP shall be as set forth below, each to hold the office until their respective successors are duly elected or appointed and qualified or until their earlier death, resignation, or removal in accordance with applicable Law: 

Gerard M. Jacobs - Chairman, CEO and Secretary

William C. Jacobs - President, CFO and Treasurer

Nicholas S. Warrender – Co-Founder, Vice Chairman, Chief Operating Officer

 

ARTICLE II

EFFECT OF THE MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES

Section 2.1Effect of the Merger. At the Effective Time, as a result of the Merger and without any action on the part of AQSP or the Company or the holder of any capital stock of AQSP or shares of Company Common Stock: 

(a)Conversion of Common Stock. Each share of Company Common Stock issued and outstanding immediately prior to the Effective Time shall be converted into the right to receive: (i) such number of shares of AQSP Common Stock equal to the product of (A) the Interest Ratio, multiplied by (B) the Stock Consideration; (ii) an amount in cash equal to the product of (A) the Interest Ratio, multiplied by (B) the Cash Consideration; and (iii) an amount in the form of a Promissory Note equal to the product of (a) the Interest Ratio multiplied by (b) the Note Consideration. 

(b)Cancellation of Common Stock. At the Effective Time, all shares of Company Common Stock shall no longer be outstanding and shall be cancelled and retired and shall cease to exist, and each holder of a share of Company Common Stock shall, subject to applicable Law, cease to have any rights with respect thereto, except the right to receive the Merger Consideration in accordance with Section 2.2. 

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(c)Fractional Shares. Any fractional shares of AQSP Common Stock to be issued upon the conversion of the shares of Company Common Stock shall be rounded up to one full share.   

(d)Equity of Merger Sub.  All equity of Merger Sub issued and outstanding at and as of the Effective Time will remain issued and outstanding. 

Section 2.2Payment of Merger Consideration.  For purposes of payment of the Merger Consideration (and the payment in lieu of fractions shares pursuant to Section 2.1(c)), AQSP shall be entitled to rely on the information set forth in Section 3.2 of the Company Disclosure Letter with respect to all of the shares of Company Common Stock being held by the Company Owner and the wire instructions identified for payment to the Company Owner. At or promptly following the Effective Time, AQSP shall: (a) deliver to its transfer agent irrevocable instructions to issue to the Company Owner a number of whole shares of AQSP Common Stock equal to the excess of (i) the Stock Consideration, reduced by (ii) the Escrowed Shares and (b) deliver to the Company Owner cash, delivered by wire transfer, in an amount equal to the excess of (i) the Cash Consideration, reduced by (iii) the Escrowed Cash; and (c) AQSP shall deliver the executed Promissory Note to the Company Owner.  At or promptly following the Effective Time, AQSP shall: (x) deliver to its transfer agent irrevocable instructions to issue to the Company Owner (but deliver to the Escrow Agent) the Escrowed Shares, and (y) deliver to the Escrow Agent the Escrowed Cash.   

Section 2.3Adjustments. Without limiting the other provisions of this Agreement, if at any time during the period between the date of this Agreement and the Effective Time, any change in the outstanding shares of AQSP Common Stock shall occur by reason of any reclassification, recapitalization, stock split (including a reverse stock split), or combination, exchange, readjustment of shares, or similar transaction, or any stock dividend or distribution paid in stock, the Stock Consideration and any other amounts payable pursuant to this Agreement shall be appropriately adjusted to reflect such change. 

Section 2.4Withholding Rights. AQSP shall be entitled to deduct and withhold from the consideration otherwise payable to any Person pursuant to this Article II such amounts as may be required to be deducted and withheld with respect to the making of such payment under any Tax Laws.  

Section 2.5Tax Treatment. The Merger is intended to constitute a “reorganization” within the meaning of Section 368(a) of the Code.  

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE COMPANY OWNER

Except as set forth in the correspondingly numbered Section of the Company Disclosure Letter that relates to such Section or in another Section of the Company Disclosure Letter to the extent that it is reasonably apparent on the face of such disclosure that such disclosure is 

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applicable to such Section, the Company and each Company Owner (jointly and severally) hereby represents and warrants to AQSP as follows:

Section 3.1Organization; Standing and Power; Charter Documents; Subsidiaries. 

(a)Organization; Standing and Power. The Company is a corporation duly incorporated, validly existing, and in good standing under the Laws of the State of Wisconsin and has the requisite corporate power and authority to own, lease, and operate its assets and to carry on its business as now conducted. The Company is duly qualified or licensed to do business as a foreign corporation in each jurisdiction where the character of the assets and properties owned, leased, or operated by it or the nature of its business makes such qualification or license necessary, except where the failure to be so qualified or licensed or to be in good standing, would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

(b)Charter Documents. The Company has delivered or made available to AQSP a true and correct copy of the Company’s Charter Documents. The Company is not in material violation of any of the provisions of its Charter Documents. 

(c)Subsidiaries. The Company has no Subsidiaries. 

Section 3.2Capital Structure; Capital Stock.  Section 3.2 of the Company Disclosure Letter accurately sets forth the outstanding shares of Company Common Stock as of the date hereof. The shares of Company Common Stock have been duly authorized and validly issued, and are owned by the Company Owner, free and clear of all Liens, other than those Liens set forth in Section 3.2 of the Company Disclosure Letter. There are no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character obligating the Company to issue or sell any equity securities of, or any other interest in, the Company, its business or its assets. The Company does not have outstanding or authorized any stock appreciation, phantom stock, profit participation or similar rights. There are no voting trusts, stockholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the shares of Company Common Stock except as set forth in Section 3.2 of the Company Disclosure Letter. The Company does not have any outstanding capital stock other than the shares of Company Common Stock set forth in Section 3.2 of the Company Disclosure Letter. Except as provided in this Agreement, the Company does not have any legal obligation to effect any merger, consolidation or reorganization of the Company, nor to enter into any agreement with respect thereto, nor to redeem or repurchase any shares of capital stock, nor to issue any dividends or to make any divestitures except the Estimated Tax Distribution. 

Section 3.3Authority; Non-Contravention; Governmental Consents. 

(a)Authority. The Company has all requisite corporate power and authority to enter into and to perform its obligations under this Agreement and to consummate the transactions contemplated by this Agreement. The Company Owner has voted, in the Company Owner’s capacity as the sole shareholder of the Company, to approve the Merger in accordance with the requirements of the WI BCL. The execution and delivery  

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of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no other actions on the part of the Company are necessary to authorize the execution and delivery of this Agreement or to consummate the Merger and the other transactions contemplated hereby. This Agreement has been duly executed and delivered by the Company and, assuming due execution and delivery by AQSP and Merger Sub, constitutes the legal, valid, and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as the enforceability may be limited by bankruptcy, insolvency, moratorium, and other similar Laws affecting creditors’ rights generally and by principles of equity.

(b)Non-Contravention. The execution, delivery, and performance of this Agreement by the Company, and the consummation by the Company of the transactions contemplated by this Agreement, including the Merger, do not: (i) contravene or conflict with, or result in any violation or breach of, the Charter Documents of the Company or any Company Permit; (ii) assuming that all Consents contemplated by Section 3.3(c) have been obtained or made, conflict with or violate any Law applicable to the Company or any of its properties or assets; (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, result in the Company’s loss of any benefit or the imposition of any additional payment or other liability under, or give to any third party any rights of termination, amendment, acceleration, or cancellation, or require any Consent under, any Contract to which the Company is a party or otherwise bound as of the date hereof; or (iv) result in the creation of a Lien (other than Permitted Liens) on any of the properties or assets of the Company. 

(c)Governmental Consents. To the Knowledge of the Company, no consent, approval, order, or authorization of, or registration, declaration, or filing with, or notice to (any of the foregoing being a “Consent”), any national, state, municipal, local, or foreign government, any instrumentality, subdivision, court, administrative agency or commission, or other governmental authority, or any quasi-governmental or private body exercising any regulatory or other governmental or quasi-governmental authority (a “Governmental Entity”) is required to be obtained or made by the Company in connection with the execution, delivery, and performance by the Company of this Agreement or the consummation by the Company of the Merger and other transactions contemplated hereby, except for: (i) the filing of the IL Articles of Merger with the Secretary of State of the State of Illinois and the WI Articles of Merger with the Secretary of State of the State of Wisconsin; (ii) such Consents as may be required under applicable state securities or “blue sky” Laws and the securities Laws of any foreign country or the rules and regulations of the OTC; and (iii) the other Consents of Governmental Entities listed in Section 3.3(c) of the Company Disclosure Letter (the “Other Governmental Approvals”). 

Section 3.4Company Financial Statements; Undisclosed Liabilities. 

(a)Financial Statements. Attached as Section 3.4(a) of Company Disclosure Letter are (a) copies of  the Company’s unaudited financial statements consisting of the balance sheet of the Company as of December 31 of each of the years 2017 and 2018 and  

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the related statements of income for the calendar years then ended (the “Annual Financial Statements”) and (b) an unaudited balance sheet of the Company as of September 30, 2019 (the “Interim Balance Sheet”) and the related statements of income for the nine (9) month period then ended (together with the Interim Balance Sheet the “Interim Financial Statements” and the Interim Financial Statements, together with the Annual Financial Statements, the “Financial Statements”). The Financial Statements (i) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto and, in the case of Interim Financial Statements, subject, in the case of the Interim Financial Statements, to year-end adjustments); and (ii) are based on the books and records of the Company, and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated.

(b)Undisclosed Liabilities. The Company does not have any Liabilities other than Liabilities that: (i) are reflected or reserved against in the Interim Balance Sheet; (ii) were incurred since the date of the Interim Balance Sheet in the ordinary course of business consistent with past practice; or (iii) are incurred in connection with the transactions contemplated by this Agreement. 

Section 3.5Absence of Certain Changes or Events. Since the date of the Interim Balance Sheet, except in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, the business of the Company has been conducted in the ordinary course of business consistent with past practice and there has not been or occurred: 

(a)any Company Material Adverse Effect or any event, condition, change, or effect that could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect; or 

(b)any event, condition, action, or effect that, if taken during the period from the date of this Agreement through the Effective Time, would constitute a breach of Section 5.1. 

Section 3.6Taxes. 

(a)Tax Returns and Payment of Taxes. The Company has been a validly electing S corporation within the meaning of Code Section 1361 and 1362 since its formation. The Company has duly and timely filed or caused to be filed (taking into account any valid extensions) all Tax Returns required to be filed by it. Such Tax Returns are true, complete, and correct in all material respects. The Company is not currently the beneficiary of any extension of time within which to file any Tax Return other than extensions of time to file Tax Returns obtained in the ordinary course of business consistent with past practice. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been timely paid. 

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(b)Availability of Tax Returns. The Company has made available to AQSP complete and accurate copies of all material federal, state, local, and foreign income, franchise, and other material Tax Returns filed by or on behalf of the Company for any Tax period ending on or after December 31, 2016. 

(c)Withholding. The Company has withheld and timely paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any Company Employee and complied with all information reporting and backup withholding provisions of applicable Law. 

(d)Liens. There are no Liens for Taxes upon the assets of the Company other than for current Taxes not yet due and payable or for Taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been made in the Company’s Financial Statements. 

(e)Tax Deficiencies and Audits. No deficiency for any amount of Taxes which has been proposed, asserted, or assessed in writing by any taxing authority against the Company remains unpaid. There are no waivers or extensions of any statute of limitations currently in effect with respect to Taxes of the Company. There are no audits, suits, proceedings, investigations, claims, examinations, or other administrative or judicial proceedings ongoing or, to the Knowledge of the Company, pending with respect to any Taxes of the Company. 

(f)Tax Jurisdictions. No claim has ever been made in writing by any taxing authority in a jurisdiction where the Company does not file Tax Returns that the Company may be subject to Tax in that jurisdiction. 

(g)Intended Tax Treatment.  The Company has not taken or agreed not to take any action, and to the Knowledge of the Company, there exist no facts or circumstances that are likely to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code. 

Section 3.7Intellectual Property. 

(a)Scheduled Company-Owned IP. Section 3.7(a) of the Company Disclosure Letter contains a true and complete list, as of the date hereof, of all: (i) Company-Owned IP that is the subject of any issuance, registration, certificate, application, or other filing with any Governmental Entity or authorized private registrar, including patents, patent applications, trademark registrations and pending applications for registration, copyright registrations and pending applications for registration, and internet domain name registrations; and (ii) material unregistered Company-Owned IP. 

(b)Right to Use; Title. The Company is the sole and exclusive owner of all right, title, and interest in and to the Company-Owned IP, and has the valid and enforceable right to use all other Intellectual Property used in or necessary for the conduct of the business of the Company as currently conducted (“Company IP”), in each case, free and clear of all Liens, other than Permitted Liens. The Company Owner does  

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not have any ownership interest in, or any claim in or with respect to, any Intellectual Property used by the Company in the conduct of its business. 

(c)Validity and Enforceability. The Company’s rights in the Company-Owned IP are valid, subsisting, and enforceable.  

(d)Non-Infringement. The Company, in the conduct of its business, has not infringed, misappropriated, or otherwise violated, and is not infringing, misappropriating, or otherwise violating, any Intellectual Property of any other Person. To the Knowledge of the Company, no third party is infringing upon, violating, or misappropriating any Company-Owned IP. 

(e)IP Legal Actions and Orders. There are no Legal Actions pending or, to the Knowledge of the Company, threatened: (i) alleging any infringement, misappropriation, or violation by the Company of the Intellectual Property of any Person; or (ii) challenging the validity, enforceability, or ownership of any Company-Owned IP or the Company’s rights with respect to any Company IP. The Company is not subject to any outstanding Order that restricts or impairs the use of any Company-Owned IP. 

(f)Company IT Systems. Since the Company’s formation, to the Company’s Knowledge there have been no security breaches of, unauthorized access to or use of, failures or unplanned outages in, or other adverse integrity or security events affecting any Company IT Systems or the data or transactions stored or processed thereon. 

Section 3.8Compliance; Permits. 

(a)Compliance. The Company is in material compliance with, all Laws or Orders applicable to the Company or by which the Company or any of its businesses or properties is bound. Since the Company’s formation, no Governmental Entity has issued any written notice or notification stating that the Company is not in compliance with any Law. 

(b)Permits. The Company holds all permits, licenses, registrations, authorizations and approvals from Governmental Entities (collectively, “Permits”) required to conduct its business as currently being conducted. No suspension, cancellation, non-renewal, or adverse modifications of any Permits of the Company is pending or, to the Knowledge of the Company, threatened. The Company is and, since its formation, has been in compliance with the terms of all Permits. To the Company’s Knowledge, the consummation of the Merger will not require AQSP to obtain any additional Permits in order for AQSP or the Merger Sub to carry on the business of the Company (as the surviving entity) as currently conducted and be in compliance with all Laws.  

Section 3.9Litigation; Other Activities. (a) Other than as set forth in Section 3.9 of the Company Disclosure Letter, there is no Legal Action pending, or to the Knowledge of the Company, threatened against the Company or any of its properties or assets or, to the Knowledge of the Company, any officer or director of the Company in their capacities as such other than any such Legal Action that: (a) does not involve an amount in controversy in excess of $25,000; and  

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(b) does not seek material injunctive or other material non-monetary relief. None of the Company or any of its properties or assets is subject to any order, writ, assessment, decision, injunction, decree, ruling, or judgment (“Order”) of a Governmental Entity or arbitrator, whether temporary, preliminary, or permanent. (b)   The Company has properly accounted (in all material respects) for any cash received by the Company and paid out by the Company in the operation of its business.  Neither the Company nor its Owner, officers or employees have made or authorized any bribe, rebate, payoff, influence payment, kickback or other unlawful payment of funds or received or retained any funds in violation of any Law.

Section 3.10Brokers’ and Finders’ Fees. The Company has not incurred, nor shall it incur, directly or indirectly, any liability for investment banker, brokerage, or finders’ fees or agents’ commissions, or any similar charges in connection with this Agreement or any transaction contemplated by this Agreement. 

Section 3.11Related Person Transactions. No Affiliate has been involved in any material business relationship with the Company, since January 1, 2018, other than those set forth on Section 3.11 of the Company Disclosure Letter. 

Section 3.12Employee Matters. 

(a)Schedule. Section 3.12(a) of the Company Disclosure Letter contains a true and complete list, as of the date hereof, of each employment agreement, bonus agreement, pension plan, employee benefits plan or program, collective bargaining agreement, or other arrangement providing for employee compensation, severance, deferred compensation, performance awards, stock or stock-based awards, fringe, retirement, death, disability, medical, or wellness benefits, or other employee benefits or remuneration of any kind, which is sponsored, maintained, contributed to, or required to be contributed to, by the Company, for the benefit of any current or former employee, independent contractor, consultant, or director of the Company (each, a “Company Employee”), or with respect to which the Company or any Company ERISA Affiliate has or may have any Liability (collectively, the “Company Employee Plans”) including each employment, termination, severance, retention, change in control, or consulting or independent contractor plan, program, arrangement, or agreement, in each case whether written or unwritten or otherwise, funded or unfunded, insured or self-insured, including each “employee benefit plan,” within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA.  

(b)Documents. The Company has made available to AQSP correct and complete copies (or, if a plan or arrangement is not written, a written description) of all Company Employee Plan current plan documents and amendments thereto, and, to the extent applicable: (i) all related trust agreements, funding arrangements, insurance contracts, and service provider agreements now in effect or required in the future as a result of the transactions contemplated by this Agreement or otherwise; (ii) the most recent determination letter received regarding the tax-qualified status of each Company Employee Plan; (iii) the most recent financial statements for each Company Employee Plan; (iv) the Form 5500 Annual Returns/Reports and Schedules for the most recent plan year for each Company Employee Plan; (v) the current summary plan description for  

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each Company Employee Plan; and (vi) all actuarial valuation reports in the most recent three plan years  related to any Company Employee Plans.

(c)Employee Plan Compliance. Except for such matters as would not reasonably be expected to have, individually or in the aggregate, a Company material Adverse Effect, (i) Each Company Employee Plan (including any multiemployer plans within the meaning of Section 3(37) of ERISA (each a “Multiemployer Plan”)) has been established, administered, and maintained in all material respects in accordance with its terms and in material compliance with applicable Laws, including, but not limited to ERISA and the Code, where applicable; (ii) all the Company Employee Plans that are intended to be qualified under Section 401(a) of the Code are so qualified and have received timely determination letters from the IRS and no such determination letter has been revoked nor, to the Knowledge of the Company, has any such revocation been threatened, or with respect to a prototype plan, the Company can rely on an opinion letter from the IRS to the prototype plan sponsor, to the effect that such qualified retirement plan and the related trust are exempt from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and to the Knowledge of the Company no circumstance exists that is likely to result in the loss of such qualified status under Section 401(a) of the Code; (iii) the Company, where applicable, has timely made all contributions, premiums, and other payments required by and due under the terms of each Company Employee Plan and applicable Law and accounting principles, and all benefits accrued under any unfunded Company Employee Plan have been paid, accrued, or otherwise adequately reserved to the extent required by, and in accordance with GAAP; (iv) there are no investigations, audits, inquiries, enforcement actions, or Legal Actions pending or, to the Knowledge of the Company, threatened by the IRS, U.S. Department of Labor, Health and Human Services, Equal Employment Opportunity Commission, or any similar Governmental Entity with respect to any Company Employee Plan; (vi) there are no Legal Actions pending, or, to the Knowledge of the Company, threatened with respect to any Company Employee Plan (in each case, other than routine claims for benefits); and (vii) to the Knowledge of the Company, neither the Company nor any of its Company ERISA Affiliates has engaged in a transaction that could subject the Company or any Company ERISA Affiliate to a tax or penalty imposed by either Section 4975 of the Code or Section 502(i) of ERISA. 

(d)Plan Liabilities. Neither the Company nor any Company ERISA Affiliate has: (i) incurred or reasonably expects to incur, either directly or indirectly, any liability under Title IV of ERISA, or related provisions of the Code or foreign Law relating to any Company Employee Plan and nothing has occurred that constitute grounds under Title IV of ERISA to terminate, or appoint a trustee to administer, any Company Employee Plan; (ii) except for payments of premiums to the Pension Benefit Guaranty Corporation (“PBGC”) which have been timely paid in full, incurred any liability to the PBGC in connection with any Company Employee Plan covering any active, retired, or former employees or directors of the Company or any Company ERISA Affiliate, including, without limitation, any liability under Sections 4069 or 4212(c) of ERISA or any penalty imposed under Section 4071 of ERISA, or ceased operations at any facility, or withdrawn from any such Company Employee Plan in a manner that could subject it to liability under Sections 4062, 4063 or 4064 of ERISA; (iii) failed to satisfy the health plan  

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compliance requirements under the Affordable Care Act, including related information reporting requirements; (iv) failed to comply with Section 601 et. seq. of ERISA and Section 4980B of the Code, regarding the health plan continuation coverage requirements under COBRA; (v) failed to comply with the privacy, security, and breach notification requirements under HIPPA; or (vi) incurred any withdrawal liability (including any contingent or secondary withdrawal liability) within the meaning of Sections 4201 or 4204 of ERISA to any Multiemployer Plan and nothing has occurred that presents a material risk of the occurrence of any withdrawal from or the partition, termination, reorganization, or insolvency of any such Multiemployer Plan which could result in any liability of the Company or any Company ERISA Affiliate to any such Multiemployer Plan. No complete or partial termination of any Company Employee Plan has occurred or is expected to occur.

(e)Certain Company Employee Plans. With respect to each Company Employee Plan: 

1.no such plan is a Multiemployer Plan or a “multiple employer plan” within the meaning of Section 413(c) of the Code and neither the Company nor any of its Company ERISA Affiliates has now or at any time in the past six years contributed to, sponsored, maintained, or had any liability or obligation in respect of any such Multiemployer Plan or multiple employer plan; 

2.no Legal Action has been initiated by the PBGC to terminate any such Company Employee Plan or to appoint a trustee for any such Company Employee Plan; 

3.no Company Employee Plan is subject to the minimum funding standards of Section 302 of ERISA or Section 412 or 430 of the Code, and none of the assets of the Company or any Company ERISA Affiliate is, or may reasonably be expected to become, the subject of any lien arising under Section 303 of ERISA or Sections 430 or 436 of the Code; and 

4.no “reportable event,” as defined in Section 4043 of ERISA, has occurred, or is reasonably expected to occur, with respect to any such Company Employee Plan. 

(f)No Post-Employment Obligations. No Company Employee Plan provides post-termination or retiree health benefits to any person for any reason, except as may be required by COBRA or other applicable Law, and neither the Company nor any Company ERISA Affiliate has any Liability to provide post-termination or retiree health benefits to any person or ever represented, promised, or contracted to any Company Employee (either individually or to Company Employees as a group) or any other person that such Company Employee(s) or other person would be provided with post-termination or retiree health benefits, except to the extent required by COBRA or other applicable Law. 

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(g)Potential Governmental or Lawsuit Liability. No Company Employee Plan has in the past six years submitted or corrected operational errors under a voluntary compliance, self-correction, or similar program sponsored by any Governmental Entity. 

(h)Section 409A Compliance. Each Company Employee Plan that is subject to Section 409A of the Code has been operated in material compliance with such section and all applicable regulatory guidance (including, without limitation, proposed regulations, notices, rulings, and final regulations). 

(i)Health Plan Compliance.  If the Company has a Health Plan, it complies in all material respects with the applicable requirements under the Affordable Care Act, the Code, ERISA, COBRA, HIPAA, and other state and federal statutes governing employer sponsored health care plans with respect to any Company Employee Plan that is a group health plan within the meaning of Section 733(a) of ERISA, Section 5000(b)(1) of the Code or such state statute. 

(j)Effect of Transaction. Neither the execution or delivery of this Agreement, the consummation of the Merger, nor any of the other transactions contemplated by this Agreement shall (either alone or in combination with any other event): (i) entitle any current or former director, employee, contractor, or consultant of the Company to severance pay or any other payment; (ii) accelerate the timing of payment, funding, or vesting, or increase the amount of compensation due to any such individual; (iii) limit or restrict the right of the Company to merge, amend, or terminate any Company Employee Plan; or (iv) increase the amount payable or result in any other material obligation pursuant to any Company Employee Plan. No amount that could be received (whether in cash or property or the vesting of any property) as a result of the consummation of the transactions contemplated by this Agreement by any employee, director, or other service provider of the Company under any Company Employee Plan or otherwise would not be deductible by reason of Section 280G of the Code nor would be subject to an excise tax under Section 4999 of the Code. 

(k)Employment Law Matters. The Company: (i) is in material compliance with all applicable Laws and agreements regarding hiring, employment, termination of employment, plant closing and mass layoff, employment discrimination, harassment, retaliation, and reasonable accommodation, leaves of absence, terms and conditions of employment, wages and hours of work, employee classification, employee health and safety, use of genetic information, leasing and supply of temporary and contingent staff, engagement of independent contractors, including proper classification of same, payroll taxes, and immigration with respect to Company Employees, and contingent workers; and (ii) is in material compliance with all applicable Laws relating to the relations between it and any labor organization, trade union, work council, or other body representing Company Employees, in each event, except where such failure would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. 

(l)Labor. The Company is not party to, or subject to, any collective bargaining agreement or other agreement with any labor organization, work council, or  

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trade union with respect to any of its or their operations. There are no Legal Actions, government investigations, or labor grievances pending, or, to the Knowledge of the Company, threatened relating to any employment related matter involving any Company Employee or applicant, including, but not limited to, charges of unlawful discrimination, retaliation or harassment, failure to provide reasonable accommodation, denial of a leave of absence, failure to provide compensation or benefits, unfair labor practices, or other alleged violations of Law.

Section 3.13Real Property and Personal Property Matters. 

(a)Owned Real Estate. The Company does not own any Real Estate. The Company is not a party to any agreement or option to purchase any real property or interest in real property. 

(b)Leased Real Estate. Section 3.13(b) of the Company Disclosure Letter contains a true and complete list of all Leases (including all amendments, extensions, renewals, guaranties, and other agreements with respect thereto) as of the date hereof for each such Leased Real Estate (including the date and name of the parties to such Lease document). The Company has made available to AQSP a true and complete copy of each such Lease. Except as set forth on Section 3.13(b) of the Company Disclosure Letter, with respect to each of the Leases: (i) such Lease is legal, valid, binding, enforceable, and in full force and effect; (ii) neither the Company, nor, to the Knowledge of the Company, any other party to the Lease, is in material breach or default under such Lease, and no event has occurred or circumstance exists which, with or without notice, lapse of time, or both, would constitute a material breach or default under such Lease; (iii) the Company’s possession and quiet enjoyment of the Leased Real Estate under such Lease has not been materially disturbed, and to the Knowledge of the Company, there are no material disputes with respect to such Lease; and (iv) the Company has not collaterally assigned or granted any other Liens other than Permitted Liens in such Lease. The Company has not subleased, licensed, or otherwise granted any Person a right to use or occupy such Leased Real Estate or any portion thereof. 

(c)Real Estate Used in the Business. The Leased Real Estate identified in Section 3.13(b) of the Company Disclosure Letter comprise all of the real property used in the business of the Company. 

(d)Personal Property. The machinery, equipment, furniture, fixtures, and other tangible personal property and assets owned or leased, by the Company are in good working condition and repair, ordinary wear and tear excepted. 

Section 3.14Environmental Matters. Except for such matters as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect: 

(a)The Company is, and for the past three years has been, in material compliance with all Environmental Laws, which compliance includes the possession, maintenance of, compliance with, or application for, all Permits required under applicable  

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Environmental Laws for the operation of the business of the Company as currently conducted.

(b)The Company has not disposed of, released, or discharged any Hazardous Substances on, at, under, in, or from the Leased Real Estate or, to the Knowledge of the Company, at any other location, in either event that is: (i) currently subject to any investigation, remediation, or monitoring; or (ii) to the Knowledge of the Company, reasonably likely to result in liability to the Company, in either case of (i) or (ii) under any applicable Environmental Laws. 

(c)The Company has not: (i) produced, processed, manufactured, transported, treated, handled, used, or stored any Hazardous Substances, except in material compliance with Environmental Laws, at any Leased Real Estate; or (ii) exposed any employee or any third party to any Hazardous Substances under circumstances reasonably expected to give rise to any material Liability or obligation under any Environmental Law. 

(d)The Company has not received written notice of and there is no Legal Action pending, or to the Knowledge of the Company, threatened against the Company, alleging any Liability or responsibility under or for non-compliance with any Environmental Law or seeking to impose any financial responsibility for any investigation, cleanup, removal, containment, or any other remediation or compliance under any Environmental Law. The Company is not subject to any Order, settlement agreement, or other written agreement by or with any Governmental Entity or third party imposing any material Liability or obligation with respect to any of the foregoing. 

(e)The Company has not expressly assumed or retained any Liabilities under any applicable Environmental Laws of any other Person, including in any acquisition or divestiture of any property or business. 

Section 3.15Material Contracts. 

(a)Material Contracts. For purposes of this Agreement, “Company Material Contract” shall mean the following to which the Company is a party or any of its assets are bound (excluding any Leases): 

1.any employment or consulting Contract (in each case with respect to which the Company has continuing obligations as of the date hereof) with any current or former (A) officer of the Company, (B) director of the Company, or (C) Company Employee; 

2.any Contract providing for indemnification or any guaranty by the Company, other than any Contract providing for indemnification of customers or other Persons pursuant to Contracts entered into in the ordinary course of business; 

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3.any Contract that purports to limit the right of the Company (A) to engage in any line of business, (B) compete with any Person or solicit any client or customer, or (C) operate in any geographical location; 

4.any Contract relating to the disposition or acquisition, directly or indirectly (by merger, sale of stock, sale of assets, or otherwise), by the Company after the date of this Agreement of assets or capital stock or other equity interests of the Company, outside the ordinary course of business; 

5.any Contract that grants any right of first refusal, right of first offer, or similar right with respect to any assets, rights, or properties of the Company; 

6.any Contract that contains any provision that requires the purchase of all or a portion of the Company’s requirements for a given product or service from a given third party; 

7.any Contract that obligates the Company to conduct business on an exclusive or preferential basis or that contains a “most favored nation” or similar covenant with any third party or upon consummation of the Merger shall obligate AQSP or any of its Subsidiaries to conduct business on an exclusive or preferential basis or that contains a “most favored nation” or similar covenant with any third party; 

8.any partnership, joint venture, limited liability company agreement, or similar Contract relating to the formation, creation, operation, management, or control of any joint venture, partnership, or limited liability company; 

9.any mortgages, indentures, guarantees, loans, or credit agreements, security agreements, or other Contracts, in each case relating to indebtedness for borrowed money, whether as borrower or lender, other than accounts receivables and payables; 

10.any employee collective bargaining agreement or other Contract with any labor union; 

11.any Company IP Agreement, other than licenses for shrink-wrap, click-wrap, or other similar commercially available off-the-shelf software that has not been modified or customized by a third party for the Company; 

12.any other Contract under which the Company is obligated to make payment or incur costs in excess of $50,000 in any year and which is not otherwise described in clauses (i)–(xii). 

(b)Schedule of Material Contracts; Documents. Section 3.15(b) of the Company Disclosure Letter sets forth a true and complete list as of the date hereof of all  

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Company Material Contracts. The Company has made available to AQSP correct and complete copies of all Company Material Contracts, including any amendments thereto.

(c)No Breach. (i) All the Company Material Contracts are legal, valid, and binding on the Company, enforceable against it in accordance with its terms, and is in full force and effect in all material respects; and (ii) neither the Company nor, to the Knowledge of the Company, any third party is in material breach or default, or has received written notice of a material breach or default, of any Company Material Contract. 

Section 3.16Insurance. Section 3.16 of the Company Disclosure Letter sets forth a true and complete list as of the date hereof of all material insurance policies of the Company.  Each such insurance policy is in full force and effect and such insurance policies provide insurance in such amounts and against such risks as the Company reasonably has determined to be prudent, taking into account the industries in which the Company operates, and as is sufficient to comply with applicable Law. The Company is not in material breach or default, and the Company has not taken any action or failed to take any action which, with notice or the lapse of time, would constitute such a material breach or default, or trigger termination or material modification of, any of such insurance policies. To the Knowledge of the Company: (i) no insurer of any such policy has been declared insolvent or placed in receivership, conservatorship, or liquidation; and (ii) no notice of cancellation or termination, other than pursuant to the expiration of a term in accordance with the terms thereof, has been received with respect to any such policy. 

Section 3.17Information Supplied. None of the information regarding the Company that is supplied or to be supplied by the Company in writing, specifically for inclusion or incorporation by reference in the Schedule 14C information statement to be filed with the SEC and sent to the AQSP stockholders in connection with the AQSP Stockholder Approval Matters (including any amendments or supplements thereto, the “Information Statement”) shall contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. Notwithstanding the foregoing, no representation or warranty is made by the Company with respect to statements made or incorporated by reference therein based on information that was not supplied by the Company in writing specifically for the Information Statement. 

Section 3.18Outside CBD Business. Except as disclosed in Schedule 3.18, as of the date hereof and as of the Closing, the Company Owner does not have any interest in any brand, product, Person or business engaged in the manufacturing, sale, distribution or transport of CBD-infused products other than through the Company (with any interests such businesses being referred to herein as an “Outside CBD Business Interests”). For the avoidance of doubt, Outside CBD Business Interests shall not include the Company Owner owning, solely as an investment, securities of any Person traded over the counter or on any national securities exchange if the Company Owner is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own 3% or more of any class of securities of such Person. 

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF AQSP AND MERGER SUB

Except: (a) as disclosed in the AQSP SEC Documents and that is reasonably apparent on the face of such disclosure to be applicable to the representation and warranty set forth herein (other than any disclosures contained or referenced therein under the captions “Risk Factors,” “Forward-Looking Statements,” “Quantitative and Qualitative Disclosures About Market Risk,” and any other disclosures contained or referenced therein of information, factors, or risks that are predictive, cautionary, or forward-looking in nature); or (b) as set forth in the correspondingly numbered Section of the AQSP Disclosure Letter that relates to such Section or in another Section of the AQSP Disclosure Letter to the extent that it is reasonably apparent on the face of such disclosure that such disclosure is applicable to such Section; AQSP hereby represents and warrants to the Company and each Company Owner as follows:

Section 4.1Organization; Standing and Power; Charter Documents; Subsidiaries. 

(a)Organization; Standing and Power. Each of AQSP and its Subsidiaries is a corporation, limited liability company, or other legal entity duly organized, validly existing, and in good standing (to the extent that the concept of “good standing” is applicable in the case of any jurisdiction outside the United States) under the Laws of its jurisdiction of organization, and has the requisite corporate, limited liability company, or other organizational, as applicable, power and authority to own, lease, and operate its assets and to carry on its business as now conducted. Each of AQSP and its Subsidiaries is duly qualified or licensed to do business as a foreign corporation, limited liability company, or other legal entity and is in good standing (to the extent that the concept of “good standing” is applicable in the case of any jurisdiction outside the United States) in each jurisdiction where the character of the assets and properties owned, leased, or operated by it or the nature of its business makes such qualification or license necessary. 

(b)Charter Documents. The articles of incorporation and by-laws of AQSP as most recently filed with the AQSP SEC Documents are true, correct, and complete copies of such documents as in effect as of the date of this Agreement. AQSP has delivered or made available to the Company a true and complete copy of Merger Sub’s Charter Documents. Neither AQSP nor Merger Sub is in violation of any of the provisions of its Charter Documents. 

(c)Subsidiaries. All of the outstanding shares of capital stock of, or other equity or voting interests in, each Subsidiary of AQSP, including Merger Sub, have been validly issued and are owned by AQSP, directly or indirectly, free of pre-emptive rights, are fully paid and non-assessable, and are free and clear of all Liens, including any restriction on the right to vote, sell, or otherwise dispose of such capital stock or other equity or voting interests, except for any Liens: (i) imposed by applicable securities Laws; or (ii) arising pursuant to the Charter Documents of any non-wholly-owned Subsidiary of AQSP. Except for the capital stock of, or other equity or voting interests in, its Subsidiaries, AQSP does not own, directly or indirectly, any capital stock of, or other equity or voting interests in, any Person. 

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Section 4.2Capital Structure.  

(a)Capital Stock. Section 4.2 of the AQSP Disclosure Letter completely and accurately sets forth the capital structure of AQSP as of the date of this Agreement (including but not limited to, as of the date hereof: (i) the number of shares of AQSP Common Stock authorized, issued and outstanding; and (ii) the number of shares of AQSP Preferred Stock authorized, issued and outstanding, (iii) the number of shares of AQSP Common Stock reserved for issuance pursuant to outstanding AQSP Equity Awards). 

1.Section 4.2(a) of the AQSP Disclosure Letter sets forth a complete and accurate list, as of the close of business on January 7, 2020, of all outstanding Equity Awards of AQSP, indicating with respect to each such Equity Award the name of the holder thereof, the number of shares and class of stock subject to such Equity Award, the exercise price (if applicable) and the date of grant.  Other than as set forth on Section 4.2 of the AQSP Disclosure Letter, as of the date hereof, there are no outstanding (A) securities of AQSP or any of its Subsidiaries convertible into or exchangeable for AQSP Voting Debt or shares of capital stock of AQSP, (B) options, warrants, or other agreements or commitments to acquire from AQSP or any of its Subsidiaries, or obligations of AQSP or any of its Subsidiaries to issue, any AQSP Voting Debt or shares of capital stock of (or securities convertible into or exchangeable for shares of capital stock of) AQSP, or (C) restricted shares, restricted stock units, stock appreciation rights, performance shares, profit participation rights, contingent value rights, “phantom” stock, or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any shares of capital stock of AQSP, in each case that have been issued by AQSP or its Subsidiaries (the items in clauses (A), (B), and (C), together with the capital stock of AQSP, being referred to collectively as “AQSP Securities”). All outstanding shares of AQSP Common Stock, all outstanding AQSP Equity Awards, and all outstanding shares of capital stock, voting securities, or other ownership interests in any Subsidiary of AQSP, have been issued or granted, as applicable, in compliance in all material respects with all applicable securities Laws and, with respect to Equity Awards, in accordance with the terms of the applicable equity plans and award agreements. 

2.Other than as set forth on Section 4.2 of the AQSP Disclosure Letter, as of the date hereof, there are no outstanding Contracts requiring AQSP or any of its Subsidiaries to repurchase, redeem, or otherwise acquire any AQSP Securities or AQSP Subsidiary Securities. Neither AQSP nor any of its Subsidiaries is a party to any voting agreement with respect to any AQSP Securities or AQSP Subsidiary Securities. 

(b)Voting Debt. No bonds, debentures, notes, or other indebtedness issued by AQSP or any of its Subsidiaries: (i) having the right to vote on any matters on which stockholders or equityholders of AQSP or any of its Subsidiaries may vote (or which is convertible into, or exchangeable for, securities having such right); or (ii) the value of  

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which is directly based upon or derived from the capital stock, voting securities, or other ownership interests of AQSP or any of its Subsidiaries, are issued or outstanding (collectively, “AQSP Voting Debt”).

(c)AQSP Subsidiary Securities. As of the date hereof, there are no outstanding: (i) securities of AQSP or any of its Subsidiaries convertible into or exchangeable for AQSP Voting Debt, capital stock, voting securities, or other ownership interests in any Subsidiary of AQSP; (ii) options, warrants, or other agreements or commitments to acquire from AQSP or any of its Subsidiaries, or obligations of AQSP or any of its Subsidiaries to issue, any AQSP Voting Debt, capital stock, voting securities, or other ownership interests in (or securities convertible into or exchangeable for capital stock, voting securities, or other ownership interests in) any Subsidiary of AQSP; or (iii) restricted shares, restricted stock units, stock appreciation rights, performance shares, profit participation rights, contingent value rights, “phantom” stock, or similar securities or rights that are derivative of, or provide economic benefits based, directly or indirectly, on the value or price of, any capital stock or voting securities of, or other ownership interests in, any Subsidiary of AQSP, in each case that have been issued by a Subsidiary of AQSP (the items in clauses (i), (ii), and (iii), together with the capital stock, voting securities, or other ownership interests of such Subsidiaries, being referred to collectively as “AQSP Subsidiary Securities”). 

Section 4.3Authority; Non-Contravention; Governmental Consents; Board Approval. 

(a)Authority. Each of AQSP and Merger Sub has all requisite corporate power and authority to enter into and to perform its obligations under this Agreement and, subject to, in the case of the consummation of the Merger, the Requisite AQSP Vote, to consummate the transactions contemplated by this Agreement. Except for the Requisite AQSP Vote, no other corporate proceedings on the part of AQSP or Merger Sub is necessary to authorize the execution and delivery of this Agreement or to consummate the Merger, the AQSP Stock Issuance, and the other transactions contemplated by this Agreement. This Agreement has been duly executed and delivered by AQSP and Merger Sub and, assuming due execution and delivery by the Company, constitutes the legal, valid, and binding obligation of AQSP and Merger Sub, enforceable against AQSP and Merger Sub in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium, and other similar Laws affecting creditors’ rights generally and by general principles of equity. 

(b)Non-Contravention. The execution, delivery, and performance of this Agreement by AQSP and Merger Sub and the consummation by AQSP and Merger Sub of the transactions contemplated by this Agreement, do not and shall not: (i) contravene or conflict with, or result in any violation or breach of, AQSP’s Charter Documents or Merger Sub’s Charter Documents; (ii) assuming that all of the Consents contemplated by Section 4.3(c) have been obtained or made, and in the case of the consummation of the Merger, obtaining the Requisite AQSP Vote, conflict with or violate any Law applicable to either of AQSP or Merger Sub or any of their properties or assets; (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, result in AQSP’s or any of its Subsidiaries’ loss of any  

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benefit or the imposition of any additional payment or other liability under, or alter the rights or obligations of any third party under, or give to any third party any rights of termination, amendment, acceleration, or cancellation, or require any Consent under, any Contract to which AQSP or any of its Subsidiaries is a party or otherwise bound; or (iv) result in the creation of a Lien (other than Permitted Liens) on any of the properties or assets of AQSP or any of its Subsidiaries.

(c)Governmental Consents. Other than as set forth in Section 4.3 of the AQSP Disclosure letter, no Consent of any Governmental Entity is required to be obtained or made by AQSP or Merger Sub in connection with the execution, delivery, and performance by AQSP or Merger Sub of this Agreement or the consummation by AQSP or Merger Sub of the Merger, the AQSP Stock Issuance, and the other transactions contemplated hereby, except for: (i) the filing of the IL Articles of Merger with the Secretary of State of the State of Illinois and the WI Articles of Merger with the Secretary of State of the State of Wisconsin; (ii) such Consents as may be required under applicable state securities or “blue sky” Laws and the securities Laws of any foreign country or the rules and regulations of the OTC; (iii) the filings with the SEC of such reports under the Exchange Act as may be required in connection with this Agreement, the Merger, the AQSP Stock Issuance, and the other transactions contemplated by this Agreement; and (iv) the Other Governmental Approvals. 

(d)Board Approval. 

1.The AQSP Board by resolutions duly adopted by a majority vote at a meeting of the directors of AQSP duly called and held and, not subsequently rescinded or modified in any way, has (A) determined that this Agreement and the transactions contemplated hereby, including the Merger, and the AQSP Stock Issuance, upon the terms and subject to the conditions set forth herein, are fair to, and in the best interests of, AQSP and the AQSP’s stockholders, (B) approved and declared advisable this Agreement, including the execution, delivery, and performance thereof, and the consummation of the transactions contemplated by this Agreement, including the Merger and the AQSP Stock Issuance, upon the terms and subject to the conditions set forth herein, (C) directed that the AQSP Stockholder Approval Matters be submitted to a vote of, or written consent by, AQSP’s stockholders, and (D) resolved to recommend that AQSP’s stockholders vote in favor of approval of the AQSP Stockholder Approval Matters. 

2.By resolutions duly adopted by AQSP in its capacity as the sole shareholder of Merger Sub and not subsequently rescinded or modified in any way, has (A) determined that this Agreement and the transactions contemplated hereby, including the Merger, upon the terms and subject to the conditions set forth herein, are fair to, and in the best interests of, Merger Sub and AQSP, as the sole shareholder of Merger Sub, and (B) approved and declared advisable this Agreement, including the execution, delivery, and performance thereof, and the consummation of the transactions contemplated by this Agreement, including the Merger, upon the terms and subject to the conditions set forth herein, and  

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(C)resolved to recommend that AQSP as the sole shareholder of Merger Sub, approve the adoption of this Agreement in accordance with the IL BCA.

(e)Voting Requirements. The affirmative vote of the holders of a majority of all outstanding shares of AQSP Common Stock entitled to vote thereon is necessary to adopt this Agreement and approve the AQSP Stockholder Approval Matters (the “Requisite AQSP Vote”). The Requisite AQSP Vote is the only vote of holders of any securities of AQSP or its Subsidiaries necessary to approve and consummate the Merger and the AQSP Stock Issuance, and the transactions contemplated by this Agreement.    

Section 4.4SEC Filings; Financial Statements; Undisclosed Liabilities. 

(a)SEC Filings. AQSP has filed with or furnished to, as applicable, the SEC all registration statements, prospectuses, reports, schedules, forms, statements, and other documents (including exhibits and all other information incorporated by reference) required to be filed or furnished by it with the SEC since January 1, 2016 (the “AQSP SEC Documents”). True, correct, and complete copies of all the AQSP SEC Documents are publicly available in the Electronic Data Gathering, Analysis, and Retrieval database of the SEC. As of their respective filing dates or, if amended or superseded by a subsequent filing prior to the date hereof, as of the date of the last such amendment or superseding filing (and, in the case of registration statements and proxy statements, on the dates of effectiveness and the dates of the relevant meetings, respectively), each of the AQSP SEC Documents conform in all material respects with the applicable requirements of the Securities Act, and the Exchange Act, and the rules and regulations of the SEC thereunder applicable to such AQSP SEC Documents. None of the AQSP SEC Documents, including any financial statements, schedules, or exhibits included or incorporated by reference therein at the time they were filed (or, if amended or superseded by a subsequent filing prior to the date hereof, as of the date of the last such amendment or superseding filing), contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, except that AQSP makes no representation as to the accuracy and completeness of its risk factors and other disclosures regarding the manufacture, sale, distribution or transport of CBD infused products.  Except as disclosed in writing by AQSP, there are no outstanding or unresolved comments received from the SEC with respect to any of the AQSP SEC Documents, and to the Knowledge of AQSP, none of the AQSP SEC Documents is the subject of ongoing SEC review or outstanding SEC investigation. None of AQSP’s Subsidiaries is required to file or furnish any forms, reports, or other documents with the SEC. 

(b)Financial Statements. Each of the consolidated financial statements (including, in each case, any notes and schedules thereto) contained in or incorporated by reference into the AQSP SEC Documents: (i) complied in all material respects with the published rules and regulations of the SEC with respect thereto as of their respective dates; (ii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto and, in the case of unaudited interim financial statements, as may be permitted by the SEC for  

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Quarterly Reports on Form 10-Q); and (iii) fairly presented in all material respects the consolidated financial position and the results of operations, changes in stockholders’ equity, and cash flows of AQSP and its consolidated Subsidiaries as of the respective dates of and for the periods referred to in such financial statements, subject, in the case of unaudited interim financial statements, to normal and year-end audit adjustments as permitted by GAAP and the applicable rules and regulations of the SEC (but only if the effect of such adjustments would not, individually or in the aggregate, be material).

(c)Undisclosed Liabilities. The audited balance sheet of AQSP dated as of December 31, 2018 contained in the AQSP SEC Documents filed prior to the date hereof is hereinafter referred to as the “AQSP Balance Sheet.” Other than as set forth in Section 4.4 of the AQSP Disclosure Letter, neither AQSP nor any of its Subsidiaries has any Liabilities other than Liabilities that: (i) are reflected or reserved against in the AQSP Balance Sheet (including in the notes thereto); (ii) were incurred since the date of the AQSP Balance Sheet in the ordinary course of business consistent with past practice; or (iii) are incurred in connection with the transactions contemplated by this Agreement. 

Section 4.5Absence of Certain Changes or Events. Since the date of the AQSP Balance Sheet, except in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, there has not been or occurred any AQSP Material Adverse Effect or any event, condition, change, or effect that could reasonably be expected to have, individually or in the aggregate, an AQSP Material Adverse Effect. 

Section 4.6Compliance; Permits. 

(a)AQSP and each of its Subsidiaries are and, since November 10, 2018, have been in compliance with, all Laws or Orders applicable to AQSP or any of its Subsidiaries or by which AQSP or any of its Subsidiaries or any of their respective businesses or properties is bound. Since November 10, 2018, no Governmental Entity has issued any notice or notification stating that AQSP or any of its Subsidiaries is not in compliance with any Law. 

(b)Permits. AQSP and its Subsidiaries hold all Permits necessary to operate their respective businesses as such businesses are being operated as of the date hereof.  AQSP and its Subsidiaries are in material compliance with all Permits, and no suspension, cancellation, non-renewal, or adverse modifications of any Permits of AQSP or any of its Subsidiaries is pending or, to the Knowledge of AQSP, threatened.  

Section 4.7Litigation. Except as set forth in Section 4.7 of the AQSP Disclosure Letter, there is no Legal Action pending, or to the Knowledge of AQSP, threatened against AQSP or any of its Subsidiaries or any of their respective properties or assets or, to the Knowledge of AQSP, any officer or director of AQSP or any of its Subsidiaries in their capacities as such other than any such Legal Action that: (a) does not involve an amount that would reasonably be expected to have, individually or in the aggregate, an AQSP Material Adverse Effect; and (b) does not seek material injunctive or other material non-monetary relief. None of AQSP or any of its Subsidiaries or any of their respective properties or assets is subject to any Order of a Governmental Entity or arbitrator, whether temporary, preliminary, or  

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permanent, which would reasonably be expected to have, individually or in the aggregate, an AQSP Material Adverse Effect. Except as set forth on Section 4.7 of the AQSP Disclosure Letter, to the Knowledge of AQSP, there are no SEC inquiries or investigations, other governmental inquiries or investigations, or internal investigations pending or threatened, in each case regarding any accounting practices of AQSP or any of its Subsidiaries or any malfeasance by any officer or director of AQSP.

Section 4.8Brokers. Except as set forth on Section 4.8 of the AQSP Disclosure Letter, neither AQSP nor any of its Affiliates has incurred, nor shall it incur, directly or indirectly, any liability for investment banker, brokerage, or finders’ fees or agents’ commissions, or any similar charges in connection with this Agreement or any transaction contemplated hereby. 

Section 4.9Tax Matters. 

(a)Each of AQSP and its Subsidiaries has filed all federal income Tax Returns and all other material Tax Returns that it was required to file. All such Tax Returns were true, correct, and complete in all material respects. All material Taxes due and owing by AQSP or any of its Subsidiaries (whether or not shown on any Tax Return) have been paid.  Neither AQSP nor any of its Subsidiaries currently is the beneficiary of any extension of time within which to file any Tax Return. No written claim has been made within the past 3 years by an authority in a jurisdiction where AQSP or any of its Subsidiaries does not file Tax Returns that AQSP or any of its Subsidiaries is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of AQSP or any of its Subsidiaries. Each of AQSP and its Subsidiaries has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party, and all Forms W-2 and 1099 required with respect thereto have been properly completed and timely filed. 

(b)There is no material dispute or claim concerning any Tax liability of AQSP or any of its Subsidiaries either (A) claimed or raised by any authority in writing or (B) as to which AQSP or its Subsidiaries has Knowledge based upon personal contact with any agent of such authority. 

(c)None of AQSP’s or its Subsidiaries Tax Returns have been audited or are currently the subject of audit. Neither AQSP nor any of its Subsidiaries has waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. 

(d)Neither AQSP nor any of its Subsidiaries is or has been a party to any ‘‘listed transaction,’’ as defined in Code §6707A(c)(2) and Reg. §1.6011-4(b)(2). 

Section 4.10Information Supplied. None of the information supplied or to be supplied by or on behalf of AQSP for inclusion or incorporation by reference in the Information Statement shall contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Information Statement shall comply as to form in all  

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material respects with the requirements of the Exchange Act. Notwithstanding the foregoing, no representation or warranty is made by AQSP with respect to statements made or incorporated by reference therein based on information supplied by the Company.

Section 4.11Ownership of Company Common Stock. Neither AQSP nor any of its Affiliates owns any shares of Company Common Stock.  

Section 4.12Intended Tax Treatment. Neither AQSP nor any of its Subsidiaries has taken or agreed to take any action, and to the Knowledge of AQSP there exists no fact or circumstance, that is reasonably likely to prevent or impede the Merger, taken together, from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code. 

Section 4.13Financial Capability. AQSP has or will have prior to the Effective Time, sufficient funds to pay the aggregate Cash Consideration contemplated by this Agreement and to perform the other obligations of AQSP contemplated by this Agreement. 

Section 4.14Merger Sub. Merger Sub (a) has engaged in no business activities other than those related to the transactions contemplated by this Agreement; and (b) is a direct, wholly-owned Subsidiary of AQSP. 

ARTICLE V

COVENANTS

Section 5.1Conduct of Business of the Company. Except as set forth in Section 5.1 of the Company Disclosure Letter, during the period from the date of this Agreement until the Effective Time or termination of this Agreement, the Company shall, except as expressly contemplated by this Agreement, as required by applicable Law, or with the consent of AQSP (which consent shall not be unreasonably withheld, conditioned, or delayed), conduct its business in the ordinary course of business consistent with past practice. To the extent consistent therewith, the Company shall use its reasonable best efforts to preserve substantially intact its business organization, to keep available the services of its current officers and employees, to preserve its present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, except as otherwise contemplated by this Agreement, or as set forth in Section 5.1 of the Company Disclosure Letter, or as required by Law, between the date of this Agreement and the Effective Time, the Company shall not, without the consent of AQSP (which consent shall not be unreasonably withheld, conditioned, or delayed): 

(a)amend its Charter Documents; 

(b)(i) split, combine, or reclassify any shares of Company Common Stock, (ii) repurchase, redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any shares of Company Common Stock, or (iii) declare, set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise) in respect of, or enter into any Contract with respect to the voting of, any shares of its capital stock, other than the Estimated Tax Distributions (for avoidance of doubt, the Company shall be  

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permitted to make the Estimated Tax Distributions to the Company Owner prior to the Merger in accordance with Section 5.11);

(c)issue, sell, pledge, dispose of, or encumber any shares of Company Common Stock or in any other manner alter the ownership of the shares of Company Common Stock set forth in Section 3.2(a) of the Company Disclosure Letter; 

(d)except as required by applicable Law or by any Company Employee Plan or Contract in effect as of the date of this Agreement (i) increase the compensation payable or that could become payable by the Company to managers, directors, officers, or employees, other than increases in compensation made to non-officer employees in the ordinary course of business consistent with past practice, (ii) promote any officers or employees, except in connection with the Company’s annual or quarterly compensation review cycle or as the result of the termination or resignation of any officer or employee, or (iii) establish, adopt, enter into, amend, terminate, exercise any discretion under, or take any action to accelerate rights under any Company Employee Plans; 

(e)acquire, by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person or division thereof or make any loans, advances, or capital contributions to or investments in any Person outside the ordinary course of business; 

(f)(i) transfer, license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale of stock or assets, or otherwise) or pledge, encumber, or otherwise subject to any Lien (other than a Permitted Lien), any assets, other than in the ordinary course of business; provided, however, that the foregoing shall not prohibit the Company from transferring, selling, leasing, or disposing of obsolete equipment or assets being replaced, or granting of non-exclusive licenses under the Company IP, in each case in the ordinary course of business consistent with past practice, or (ii) adopt or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization, or other reorganization; 

(g)repurchase, prepay, or incur any indebtedness for borrowed money or guarantee any such indebtedness of another Person, issue or sell any debt securities or options, warrants, calls, or other rights to acquire any debt securities of the Company, guarantee any debt securities of another Person, enter into any “keep well” or other Contract to maintain any financial statement condition of any other Person or enter into any arrangement having the economic effect of any of the foregoing, other than in the ordinary course of business consistent with past practice; 

(h)enter into or amend or modify in any material respect, or consent to the termination of (other than at its stated expiry date), any Company Material Contract or any Lease with respect to material Leased Real Estate, other than in the ordinary course of business; 

(i)institute, settle, or compromise any Legal Action involving the payment of monetary damages by the Company of any amount exceeding $25,000 in the aggregate,  

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other than (i) the settlement of the current litigation involving Mile High (ii) any Legal Action brought against AQSP arising out of a breach or alleged breach of this Agreement by AQSP, and (iii) the settlement of claims, liabilities, or obligations reserved against on the Interim Balance Sheet; provided, however, that the Company shall not 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 the Company’s business;

(j)make any material change in any method of financial accounting principles or practices, in each case except for any such change required by a change in GAAP or applicable Law; 

(k)(i) settle or compromise any material Tax claim, audit, or assessment for an amount materially in excess of the amount reserved or accrued on the Interim Balance Sheet, (ii) make or change any material Tax election, change any annual Tax accounting period, or adopt or change any method of Tax accounting, (iii) amend any material Tax Returns or file claims for material Tax refunds, or (iv) enter into any material closing agreement, surrender in writing any right to claim a material Tax refund, offset or other reduction in Tax liability or consent to any extension or waiver of the limitation period applicable to any material Tax claim or assessment relating to the Company; 

(l)enter into any agreement, agreement in principle, letter of intent, memorandum of understanding, or similar Contract with respect to any joint venture, strategic partnership, or alliance; 

(m)take any action to exempt any Person from, or make any acquisition of securities of the Company by any Person not subject to, any state takeover statute or similar statute or regulation that applies to Company, except for AQSP or any of its Subsidiaries or Affiliates, or the transactions contemplated by this Agreement; 

(n)abandon, allow to lapse, sell, assign, transfer, grant any security interest in or otherwise encumber or dispose of any material Company IP, or grant any right or license to any material Company IP other than pursuant to non-exclusive licenses entered into in the ordinary course of business consistent with past practice; 

(o)terminate or modify in any material respect any insurance policy; 

(p)enter into any discussions, negotiations, letters of intent, mergers, reorganizations, stock sales, asset sales (other than asset sales in the ordinary course of business), loan agreements, financing agreements or arrangements of any type, other capital raises, or other contracts or arrangements outside of the ordinary course of business that is intended or that would reasonably be expected to, individually or in the aggregate, prevent, materially delay, or materially impede the consummation of the Merger, or the other transactions contemplated by this Agreement; or 

(q)agree or commit to do any of the foregoing. 

Section 5.2Conduct of the Business of AQSP. During the period from the date of this Agreement until the Effective Time, AQSP shall not, nor shall it permit any of its Subsidiaries  

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(including Merger Sub) to, without the prior written consent of the Company (which consent shall not be unreasonably withheld, conditioned, or delayed):

(a)amend its Charter Documents in a manner that would adversely affect the Company or the holders of shares of Company Common Stock relative to the other holders of AQSP Common Stock; 

(b)(i) split, combine, or reclassify any AQSP Securities or AQSP Subsidiary Securities in a manner that would adversely affect the Company or the holders of the shares of Company Common Stock relative to the other holders of AQSP Common Stock, (ii) repurchase, redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any AQSP Securities or AQSP Subsidiary Securities, or (iii) declare, set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise) in respect of, or enter into any Contract with respect to the voting of, any shares of its capital stock (other than dividends from its direct or indirect wholly-owned Subsidiaries, dividends paid to holders of AQSP Preferred Stock, and ordinary quarterly dividends, consistent with past practice with respect to timing of declaration and payment); 

(c)adopt or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization, or other reorganization; 

(d)take any action that is intended or that would reasonably be expected to, individually or in the aggregate, prevent, impede, or materially delay the consummation of the Merger, or the other transactions contemplated by this Agreement, provided that this clause shall not be deemed or construed to prevent AQSP from raising capital or making acquisitions approved by the Company Owner;  

(e)issue any AQSP Securities other than as set forth on Section 5.2(e) of the AQSP Disclosure Letter or as may hereafter be approved by the Company Owner; or 

(f)agree or commit to do any of the foregoing. 

Section 5.3Access to Information.  From the date of this Agreement until the earlier to occur of the Effective Time or the termination of this Agreement in accordance with the terms set forth in Article VIII, the Company shall afford to AQSP and AQSP’s Representatives reasonable access, at reasonable times and in a manner as shall not unreasonably interfere with the business or operations of the Company thereof, to the officers, employees, accountants, agents, properties, offices, and other facilities and to all books, records, contracts, and other assets of the Company. The Company shall not be required to provide access to or disclose information where such access or disclosure would jeopardize the protection of attorney-client privilege or contravene any Law (it being agreed that the parties shall use their reasonable best efforts to cause such information to be provided in a manner that would not result in such jeopardy or contravention).  AQSP will treat and hold as such any confidential information it receives from the Company in the course of the reviews contemplated by this Section, will not use any of the confidential information except in connection with this Agreement, and, if this Agreement is terminated for any reason whatsoever, will return to the Company all tangible  

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embodiments (and all copies) of the confidential information which are in its possession.  Notwithstanding the foregoing, prior to the Effective Date, without the prior written consent of the Company Owner none of AQSP, its Subsidiaries or their representatives shall contact any suppliers or licensors to or customers of, the Company, in connection with or pertaining to any subject matter of this Agreement. No investigation shall affect the Company’s representations, warranties, covenants, or agreements contained herein, or limit or otherwise affect the remedies available to AQSP pursuant to this Agreement.

Section 5.4AQSP Stockholders Consent. As soon as reasonably practicable following the date of this Agreement, AQSP shall prepare a written consent in accordance with applicable Law and AQSP’s Charter Documents covering all AQSP Stockholder Approval Matters (the “AQSP Stockholders Consent”). AQSP shall use its best efforts to obtain the signatures from AQSP stockholders representing the Requisite AQSP Vote necessary to cause such AQSP Stockholders Consent to be properly approved by the AQSP stockholders in accordance with applicable Law and AQSP’s Charter Documents. AQSP shall promptly notify the Company upon obtaining signatures representing the Requisite AQSP Vote. Each Jacobs Owner agrees to execute promptly the AQSP Stockholders Consent and thereby vote to approve the AQSP Stockholder Approval Matters. 

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Section 5.5Preparation of Information Statement. As soon as reasonably practicable following approval of AQSP Stockholders Consent in accordance with applicable Law and AQSP’s Charter Documents, AQSP shall prepare and file with the SEC a preliminary Information Statement.  AQSP shall use its reasonable best efforts to ensure that the Information Statement complies in all material respects with the applicable provisions of the Securities Act and Exchange Act. AQSP shall promptly provide the Company and its counsel with any comments or other communications, whether written or oral, that AQSP or its counsel may receive from the SEC or its staff with respect to the preliminary Information Statement promptly after the receipt of such comments and AQSP shall give reasonable and good faith consideration to any comments made by the Company or its counsel. AQSP shall use commercially reasonable efforts to respond to any such comments in an expeditious matter (and the Company and the Company Owner shall provide timely, reasonable cooperation to AQSP in respect of any such comments). As soon as practicable following the resolution of any such comments from the SEC, or in the event AQSP has not received any communications from the SEC regarding preliminary Information Statement within ten (10) Business Days of the filing thereof (or has been notified by the SEC that the SEC will not comment on the preliminary Information Statement), then AQSP shall promptly file a definitive Information Statement with the SEC and shall cause the Information Statement to be disseminated to AQSP’s stockholders in accordance with the Exchange Act as promptly as practicable thereafter (with the first day on which the definitive Information Statement is mailed to an AQSP stockholder being the “Mailing Date”). AQSP shall also take any other action (other than qualifying to do business in any jurisdiction in which it is not now so qualified) required to be taken under the Securities Act, the Exchange Act, any applicable foreign or state securities or “blue sky” Laws, and the rules and regulations thereunder in connection with the issuance of AQSP Common Stock in the Merger, and the Company shall furnish to AQSP all information concerning the Company as may be reasonably requested in connection with any such actions. 

Section 5.6Notices of Certain Events; Stockholder Litigation; No Effect on Disclosure Letter. 

(a)The Company shall notify AQSP, and AQSP shall notify the Company, promptly of: (i) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (ii) any notice or other communication from any Governmental Entity in connection with the transactions contemplated by this Agreement; and (iii) any event, change, or effect between the date of this Agreement and the Effective Time which causes or is reasonably likely to cause the failure of the conditions set forth in Section 6.2(a), Section 6.2(b), or Section 6.2(c) of this Agreement (in the case of the Company) or Section 6.3(a), Section 6.3(b), or Section 6.3(c) of this Agreement (in the case of AQSP), to be satisfied. 

(b)The Company shall promptly advise AQSP in writing after becoming aware of any Legal Action commenced, or to the Company’s Knowledge threatened, after the date hereof against the Company or any of its managers or owners (on their own behalf or on behalf of the Company) relating to this Agreement or the transactions contemplated hereby (including the Merger) and shall keep AQSP reasonably informed regarding any such Legal Action. The Company shall give AQSP the opportunity to  

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consult with the Company regarding the defense or settlement of any such litigation and shall consider AQSP’s views with respect to such litigation and shall not settle any such litigation without the prior written consent of AQSP (which consent shall not be unreasonably withheld, delayed, or conditioned).  AQSP shall promptly advise the Company in writing after becoming aware of any Legal Action commenced, or to the AQSP’s Knowledge threatened, after the date hereof against AQSP or any of its managers or owners (on their own behalf or on behalf of the Company) relating to this Agreement or the transactions contemplated hereby (including the Merger) and shall keep the Company reasonably informed regarding any such Legal Action. AQSP shall give the Company the opportunity to consult with AQSP regarding the defense or settlement of any such litigation and shall consider the Company’s views with respect to such litigation and shall not settle any such litigation without the prior written consent of the Company (which consent shall not be unreasonably withheld, delayed, or conditioned).

(c)In no event shall: (i) the delivery of any notice by a party pursuant to this Section 5.6 limit or otherwise affect the respective rights, obligations, representations, warranties, covenants, or agreements of the parties or the conditions to the obligations of the parties under this Agreement; (ii) disclosure by the Company be deemed to amend or supplement the Company Disclosure Letter or constitute an exception to the Company’s representations or warranties; or (iii) disclosure by AQSP be deemed to amend or supplement the AQSP Disclosure Letter or constitute an exception to AQSP’s representations or warranties. This Section 5.6 shall not constitute a covenant or agreement for purposes of Section 6.2(b) or Section 6.3(b). 

Section 5.7Employees; Benefit Plans. 

(a)During the period commencing at the Effective Time and ending on the date which is twelve months from the Effective Time (or if earlier, the date of the employee’s termination of employment with AQSP and its Subsidiaries), and to the extent consistent with the terms of the governing plan documents, AQSP shall provide the employees of the Company who remain employed immediately after the Effective Time (collectively, the “Company Continuing Employees”) with annual base salary or wage level, annual target bonus opportunities (excluding equity-based compensation), and employee benefits (excluding any retiree health or defined benefit retirement benefits) that are, in the aggregate, no less favorable than the annual base salary or wage level, annual target bonus opportunities (excluding equity-based compensation), and employee benefits (excluding any retiree health or defined benefit retirement benefits) provided by the Company on the date of this Agreement, provided, that this Section shall be superseded, in regard to all Company Continuing Employees, by the terms and conditions of any employment agreement between any of the Company Continuing Employees and AQSP. 

(b)With respect to any “employee benefit plan,” as defined in Section 3(3) of ERISA, maintained by AQSP or any of its Subsidiaries, excluding any retiree health plans or programs maintained by AQSP or any of its Subsidiaries, any defined benefit retirement plans or programs maintained by AQSP or any of its Subsidiaries (collectively, “AQSP Benefit Plans”) in which any Company Continuing Employees  

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shall participate effective as of the Effective Time, and subject to the terms of the governing plan documents, AQSP shall credit all service of the Company Continuing Employees with the Company as if such service were with AQSP, for purposes of eligibility to participate (but not for purposes of benefit accrual, except for vacation )or paid time off) and severance, if applicable) for full or partial years of service in any AQSP Benefit Plan in which such Company Continuing Employees may be eligible to participate after the Effective Time; provided, however, that such service shall not be credited to the extent that: (i) such crediting would result in a duplication of benefits; or (ii) such service was not credited under the corresponding Company Employee Plan.  If any Company Employee Plan that is a welfare benefit plan is terminated during a plan year and Company Continuing Employees are enrolled in a comparable AQSP Benefit Plan providing such welfare benefit (including medical, dental, life insurance, short-term and long-term disability plans), AQSP shall waive any waiting periods or limitations for preexisting conditions and shall ensure that each Company Continuing Employee is given credit under the AQSP Benefit Plan for any amounts paid toward deductibles, co-payments or out-of-pocket limits incurred under the Company Employee Plan during the same plan year.

(c)AQSP shall ensure that any Company Continuing Employee whose employment with AQSP or any of its Subsidiaries is involuntarily terminated (other than for cause) within twelve months on or after the Effective Time receives severance benefits the greater of: (i) as required under applicable Law (ii) no less favorable than those provided under the applicable Company Employee Plan covering such Company Employee immediately prior to the Effective Time or (iii) no less favorable in the aggregate than the severance benefits as described on Section 5.7(c) of the Company Disclosure Letter. 

(d)This Section 5.7 shall be binding upon and inure solely to the benefit of each of the parties to this Agreement, and nothing in this Section 5.7, express or implied, shall confer upon any Company Employee, any beneficiary, or any other Person any rights or remedies of any nature whatsoever under or by reason of this Section 5.7. Nothing contained herein, express or implied: (i) shall be construed to establish, amend, or modify any benefit plan, program, agreement, or arrangement; (ii) shall alter or limit the ability of the AQSP or any of its Affiliates to amend, modify, or terminate any benefit plan, program, agreement, or arrangement at any time assumed, established, sponsored, or maintained by it; or (iii) shall prevent AQSP or any of its Affiliates from terminating the employment of any Company Continuing Employee following the Effective Time. The parties hereto acknowledge and agree that the terms set forth in this Section 5.7 shall not create any right in any Company Employee or any other Person to any continued employment with AQSP or any of its Subsidiaries or compensation or benefits of any nature or kind whatsoever, or otherwise alters any existing at-will employment relationship between any Company Employee and AQSP. 

(e)With respect to matters described in this Section 5.7, the Company shall not send any written notices or other written communication materials to Company Employees without the prior written consent of AQSP and, prior to Closing, AQSP shall  

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not send any written notice or other written communication materials to Company Employees without the prior written consent of the Company.

Section 5.8Directors’ and Officers’ Exculpation and Indemnification. 

(a)Other than with respect to violations of this Agreement, AQSP agrees that all rights to indemnification, advancement of Expenses, and exculpation by the Company now existing in favor of each Person who is now, or has been at any time prior to the date hereof or who becomes prior to the Effective Time an officer or director of the Company (each an “Indemnifiable Company Party”) as provided in the Charter Documents of the Company, in each case as in effect on the date of this Agreement, or pursuant to any other Contracts in effect on the date hereof and disclosed in Section 5.8 of the Company Disclosure Letter, shall be assumed by AQSP and shall remain in full force and effect in accordance with their terms. For a period of six years from the Effective Time, AQSP shall maintain in effect the exculpation, indemnification, and advancement of Expenses equivalent to the provisions of the Charter Documents of the Company as in effect immediately prior to the Effective Time with respect to acts or omissions by any Indemnifiable Company Party occurring prior to the Effective Time, and shall not amend, repeal, or otherwise modify any such provisions in any manner that would adversely affect the rights thereunder of any Indemnifiable Company Party, provided that all rights to indemnification in respect of any claim made for indemnification within such period shall continue until the disposition of such action or resolution of such claim. 

(b)The obligations of AQSP under this Section 5.8 shall survive the consummation of the Merger and shall not be terminated or modified in such a manner as to adversely affect any Indemnifiable Company Party to whom this Section 5.8 applies without the consent of such affected Indemnifiable Company Party (it being expressly agreed that the Indemnified Parties to whom this Section 5.8 applies shall be third party beneficiaries of this Section 5.8, each of whom may enforce the provisions of this Section 5.8). 

(c)In the event AQSP: (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger; or (ii) transfers all or substantially all of its properties and assets to any Person, then, and in either such case, proper provision shall be made so that the successors and assigns of AQSP shall assume all of the obligations set forth in this Section 5.8. The agreements and covenants contained herein shall not be deemed to be exclusive of any other rights to which any Indemnifiable Company Party is entitled, whether pursuant to Law, Contract, or otherwise. Nothing in this Agreement is intended to, shall be construed to, or shall release, waive, or impair any rights to directors’ and officers’ insurance claims under any policy that is or has been in existence with respect to the Company or its officers, directors, and employees, it being understood and agreed that the indemnification provided for in this Section 5.8 is not prior to, or in substitution for, any such claims under any such policies. 

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Section 5.9Commercially Reasonable Efforts. 

(a)Upon the terms and subject to the conditions set forth in this Agreement (including those contained in this Section 5.9), each of the parties hereto shall, and shall cause its Subsidiaries to, use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper, or advisable to consummate and make effective, and to satisfy all conditions to, in the most commercially reasonable manner practicable, the transactions contemplated by this Agreement, including: (i) obtaining all necessary Permits, waivers, and actions or nonactions from Governmental Entities and the making of all necessary registrations and filings (including filings with Governmental Entities) and the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any Governmental Entities; (ii) obtaining all necessary consents or waivers from third parties; and (iii) execution and delivery of any additional instruments necessary to consummate the Merger and to fully carry out the purposes of this Agreement. The Company and AQSP shall, subject to applicable Law, promptly: (A) cooperate and coordinate with the other in taking the actions contemplated by clauses (i), (ii), and (iii) immediately above; and (B) supply the other with any information that may be reasonably required in order to effectuate the taking of such actions. Each party hereto shall promptly inform the other party or parties hereto, as the case may be, of any communication from any Governmental Entity regarding any of the transactions contemplated by this Agreement. If the Company, on the one hand, or AQSP, on the other hand, receives a request for additional information or documentary material from any Governmental Entity with respect to the transactions contemplated by this Agreement, then it shall use reasonable best efforts to make, or cause to be made, as soon as reasonably practicable and after consultation with the other party, an appropriate response in compliance with such request, and, if permitted by applicable Law and by any applicable Governmental Entity, provide the other party’s counsel with advance notice and the opportunity to attend and participate in any meeting with any Governmental Entity in respect of any filing made thereto in connection with the transactions contemplated by this Agreement.  

(b)In the event that any administrative or judicial action or proceeding is instituted (or threatened to be instituted) by a Governmental Entity or private party challenging the Merger or any other transaction contemplated by this Agreement, or any other agreement contemplated hereby, the Company and AQSP shall cooperate in all reasonable respects with the other and shall use its reasonable best efforts to contest and resist any such action or proceeding and to have vacated, lifted, reversed, or overturned any Order, whether temporary, preliminary, or permanent, that is in effect and that prohibits, prevents, or restricts consummation of the transactions contemplated by this Agreement.  

(c)Notwithstanding anything to the contrary set forth in this Agreement, none of AQSP or any of its Subsidiaries shall be required to, and the Company may not, without the prior written consent of AQSP, become subject to, consent to, or offer or agree to, or otherwise take any action with respect to, any requirement, condition, limitation, understanding, agreement, or order to: (i) sell, license, assign, transfer, divest,  

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hold separate, or otherwise dispose of any assets, business, or portion of business of the Company, AQSP, or any of their respective Subsidiaries; (ii) conduct, restrict, operate, invest, or otherwise change the assets, business, or portion of business of the Company, AQSP, or any of their respective Subsidiaries in any manner; or (iii) impose any restriction, requirement, or limitation on the operation of the business or portion of the business of the Company, AQSP, or any of their respective Subsidiaries.

Section 5.10Public Announcements. The initial press release with respect to this Agreement and the transactions contemplated hereby shall be a release mutually agreed to by the Company and AQSP substantially in the form set forth on Section 5.10 of the AQSP Disclosure Letter. Thereafter, each of the Company and AQSP agrees that no public release or announcement concerning the transactions contemplated hereby shall be issued by any party without the prior written consent of the Company and AQSP (which consent shall not be unreasonably withheld, conditioned, or delayed), except as may be required by applicable Law or the rules or regulations of any applicable United States securities exchange or other Governmental Entity to which the relevant party is subject or submits, in which case the party required to make the release or announcement shall use its reasonable best efforts to allow the other party reasonable time to comment on such release or announcement in advance of such issuance. Notwithstanding the foregoing, the restrictions set forth in this Section 5.10 shall not apply to any release or announcement made or proposed to be made in connection with any disclosures made in compliance with Section 5.5. 

Section 5.11Certain Tax Matters.  

(a)None of the Company or AQSP shall take or fail to take any action which action (or failure to act) would reasonably be expected to prevent or impede the Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.   

(b)The parties acknowledge that the Company has elected to be taxable as a corporation subject to subchapter S of title 1 of the Code (an “S corporation”), and in accordance therewith, the income of the Company has been allocated to the Company Owner for federal income tax purposes.  As a result of the Merger and pursuant to Treasury Regulations Section 1.1362-3, the Company shall terminate for federal income tax purposes and shall have a short taxable year commencing on January 1, 2020, and ending on the day before the Closing Date.  In recognition of the tax obligations of the Company Owner with respect to the income of the Company for such short taxable year, the Company shall be permitted to make the Estimated Tax Distributions to the Company Owner prior to the Closing Date. 

(c)The parties shall cooperate fully, as and to the extent reasonably requested by another party, in connection with the filing of any Tax Returns and any audit, litigation or other proceeding with respect to Taxes. 

Section 5.12Employment Agreement. In connection with the Closing, AQSP shall execute and deliver, and Nicholas S. Warrender shall execute and deliver, an employment agreement between AQSP and Nicholas S. Warrender, in the form of the Employment Agreement set forth on Exhibit A, attached hereto, using the “Title” and “Base Salary” set forth  

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for Nicholas S. Warrender on Exhibit A-1, attached hereto (the “NW Employment Agreement”). 

Section 5.13Stockholders Agreement. The Company Owner shall execute a Stockholders Agreement with Gerard Jacobs and William Jacobs in the form attached hereto as Exhibit B. 

Section 5.14Closing Date Capital Structure. On the day prior to the Closing Date, AQSP shall deliver to the Company a true, accurate and complete update to Section 4.2(a) along with any revisions made since the date hereof to AQSP’s Charter Documents (the “Closing Capital Structure Schedule”). 

Section 5.15Company Audit.  

Concurrent with the execution hereof, AQSP shall reimburse the Company for all out-of-pocket costs expended by the Company with respect to the Company Audit and shall agree with Fruci & Associates to be primarily responsible for any future costs related to such Company Audit.

Section 5.16Escrow Agreement. At the Closing, the Company Owner, AQSP and the Escrow Agent shall have entered into an Escrow Agreement reasonably acceptable to AQSP and the Company Owner (the “Escrow Agreement”). 

Section 5.17Recipes. At or promptly following the Effective Time, the Company Owner shall deliver to AQSP a file containing all product recipes used in the Company business (or proposed to be used in the Company business). 

Section 5.18Purchase Option. The Company Owner hereby grants to AQSP an exclusive, perpetual, non-expiring option to purchase all or any portion of the Company Owner’s Outside CBD Business Interests for $1.00.  

Section 5.19Further Assurances. At and after the Effective Time, the officers and directors of the Surviving Entity shall be authorized to execute and deliver, in the name and on behalf of the Company, any deeds, bills of sale, assignments, or assurances and to take and do, in the name and on behalf of the Company, any other actions and things to vest, perfect, or confirm of record or otherwise in the Surviving Entity any and all right, title, and interest in, to and under any of the rights, properties, or assets of the Company acquired or to be acquired by the Surviving Entity as a result of, or in connection with, the Merger. 

Section 5.20

 Hemp Processing System.  Through Company Owner and his Father, Robert Warrender II ("Warrender II"), AQSP has been made aware of a potential business opportunity to process CBD from hemp using a system that is currently undergoing proof of concept operational testing and that incorporates particular filtration and pump equipment and technology identified by Warrender II (the "System"). In consideration of Company Owner's and Warrender II's agreement to disclose to AQSP, on an exclusive basis, the completed design, the actual construction and operating costs, and the results of the proof of concept operational testing, of the System (the "System Confidential Information"), AQSP agrees and covenants: 

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(a) to keep the System Confidential Information confidential, and to share the System Confidential Information with AQSP's directors, officers, investment bankers, lawyers, accountants and other professional advisors only on a need-to-know basis;  

 

(b) to analyze the System Confidential Information in regard to the potential financing, construction and operation of one or more Systems; and  

 

(c) to use good faith efforts to attempt to proceed forward, in a joint venture or other arrangement involving Warrender II, with a project(s) consisting of the financing, construction and operation of one or more Systems if but only if: 

 

(1)such analysis is favorable and is approved by the AQSP Board in its discretion; and  

 

(2)Warrender II and AQSP mutually agree upon the structure, terms and conditions of such project(s) including the respective ownership, control, obligations and compensation of Warrender II (or his designees) and AQSP in and from the financing, construction, operation, leasing and/or sale of such project(s), provided that any equity compensation to be received by Warrender II (or his designees) from the financing, construction, operation, leasing and/or sale of such project(s) shall be structured in the form of shares of AQSP Common Stock valued at the then-current trading price of AQSP Common Stock but in no event at higher than $5.00 per share of AQSP Common Stock. 

 

AQSP shall have 90 days after disclosure of the System Confidential Information  to obtain its Board’s approval to proceed as discussed in paragraph (c) above.  In the absence of such approval, Warrender II shall be free to disclose the System Confidential Information for any purpose.

 

Section 5.21Deferred Contingent Stock. As an inducement to the Company Owner to enter into this Agreement and to close the Merger: 

 

(a)Subject to the conditions and contingencies set forth in Sections 5.21(b) and 5.21(c) below, AQSP agrees and covenants to set aside an aggregate of 645,000 shares of unregistered AQSP Common Stock (the "Deferred Contingent Stock") as deferred contingent compensation to be issued and delivered to certain persons (the "Deferred Contingent Stock Recipients"), all as specified by the Company Owner in a schedule (the "Deferred Contingent Stock Schedule") delivered by the Company Owner to AQSP at the Closing. 

 

(b)The issuance and delivery of Deferred Contingent Stock to each of the Deferred Contingent Stock Recipients shall be contingent upon such Deferred Contingent Stock Recipient meeting each of the following conditions and contingencies (the "Stock Conditions and Contingencies"):  

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(1)such Deferred Contingent Stock Recipient must have served continuously as a director of Merger Sub or AQSP, or must have been continuously employed by Merger Sub or AQSP, or must have been continuously retained as a contractor, consultant or advisor by Merger Sub or AQSP, during the period from the Closing Date through the third anniversary of the Closing Date; 

 

(2)if such Deferred Contingent Stock Recipient is listed on the Deferred Contingent Stock Schedule as being subject to a performance review by the Company Owner, then such Deferred Contingent Stock Recipient must not have had his or her performance as a director of Merger Sub or AQSP, or as an employee of Merger Sub or AQSP, or as a contractor, consultant or advisor of Merger Sub or AQSP, during the period from the Closing Date through the third anniversary of the Closing Date, determined by the Company Owner to be unacceptable in his sole discretion, as evidenced by a signed letter from the Company Owner delivered to the CEO of AQSP no later than the third anniversary of the Closing Date;  

 

(3)such Deferred Contingent Stock Recipient must not have disclosed, orally or in writing, directly or indirectly, to any person or entity, excepting only in a required filing with the SEC, either that such Deferred Contingent Stock Recipient is a Deferred Contingent Stock Recipient, or the number of shares of Deferred Contingent Stock which such Deferred Contingent Stock Recipient hopes to be awarded hereunder; and 

 

(4)such Deferred Contingent Stock Recipient must have signed and delivered to AQSP prior to the Closing Date an estoppel letter in form and substance satisfactory to AQSP in its discretion, evidencing that such Deferred Contingent Stock Recipient has no right, title or interest in the stock of the Company or in any of the Company's assets including any of the Company's cash, receivables, contracts, products, customers or intellectual property, and that such Deferred Contingent Stock Recipient is not owed anything whatsoever by the Company or the Company Owner other than wages owed by the Company for the period from the Company's last payroll date through the Closing Date (collectively the "Estoppel Letters"). 

 

(c)If for any reason whatsoever any of the foregoing Stock Conditions and Contingencies is not met by any Deferred Contingent Stock Recipient, then such Deferred Contingent Stock Recipient shall immediately forfeit such Deferred Contingent Stock Recipient's right to receive his or her share of the Deferred Contingent Stock as specified in the Deferred Contingent Stock Schedule, and such forfeited Deferred Contingent Stock shall promptly be issued and delivered to the Company Owner as additional Stock Consideration hereunder. However, if all of the foregoing Stock Conditions and Contingencies are met by any Deferred Contingent Stock Recipient, then AQSP shall issue and deliver to such Deferred Contingent Stock Recipient his or her share of the Deferred Contingent Stock as specified in the Deferred Contingent Stock  

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Schedule, no later than thirty (30) days following the third anniversary of the Closing Date.

 

Section 5.22Warrants. As an inducement to the Company Owner to enter into this Agreement and to close the Merger: 

 

(a)Subject to the terms and conditions set forth in Sections 5.22(b), 5.22(c) and 5.22(d) below, AQSP agrees and covenants to issue, on the Closing Date or within thirty (30) days following the Closing Date, warrants to purchase an aggregate of 1,820,000 shares of unregistered AQSP Common Stock at an exercise price of $5.00 per share (the "Warrants"), to certain persons (the "Warrant Recipients"); all as specified by the Company Owner in a schedule (the "Warrant Schedule") delivered by the Company Owner to AQSP at the Closing. 

 

(b)The Warrants issued to each Warrant Recipient who following the Closing Date serves as a director or officer of AQSP shall be vested and may be exercised by such Warrant Recipient at any time during the five year period from the Closing Date through the fifth anniversary of the Closing Date, and such Warrants shall include a so-called "cashless exercise" feature. 

 

(c)The vesting of the Warrants issued to each of the Warrant Recipients who following the Closing Date does not serve as a director or officer of AQSP shall be contingent upon such Warrant Recipient meeting each of the following conditions and contingencies (the "Warrant Conditions and Contingencies"): 

 

(1)such Warrant Recipient must have been continuously employed by Merger Sub or AQSP, or such Warrant Recipient must have continuously served as a contractor, consultant, paid advisor, or informal unpaid advisor to Merger Sub, AQSP or Nicholas S. Warrender, during the period from the Closing Date through the third anniversary of the Closing Date; 

 

(2)if such Warrant Recipient is listed on the Warrant Schedule as being subject to a performance review by the Company Owner, then such Warrant Recipient must not have had his or her performance as an employee of Merger Sub or AQSP, or as a contractor, consultant, paid advisor, or informal advisor to Merger Sub, AQSP or Nicholas S. Warrender, during the period from the Closing Date through the third anniversary of the Closing Date, determined by Nicholas S. Warrender to be unacceptable in his sole discretion, as evidenced by a signed letter from Nicholas S. Warrender delivered to the CEO of AQSP no later than the third anniversary of the Closing Date; 

 

(3)such Warrant Recipient must not have disclosed, orally or in writing, directly or indirectly, to any person or entity, excepting only in a required filing with the SEC, either that such Warrant Recipient is a Warrant Recipient, or the number of shares of AQSP Common Stock which could be purchased upon the exercise of the Warrants granted to such Warrant Recipient; and 

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(4)such Warrant Recipient must have signed and delivered to AQSP prior to the Closing Date an estoppel letter in form and substance satisfactory to AQSP in its discretion, evidencing that such Warrant Recipient has no right, title or interest in the stock of the Company or in any of the Company's assets including any of the Company's cash, receivables, contracts, products, customers or intellectual property, and that such Warrant Recipient is not owed anything whatsoever by the Company or the Company Owner other than wages owed by the Company for the period from the Company's last payroll date through the Closing Date (collectively the "Estoppel Letters"). 

 

(d)If for any reason whatsoever any of the foregoing Warrant Conditions and Contingencies is not met by any Warrant Recipient who following the Closing Date does not serve as a director or officer of AQSP, then the Warrants granted to such Warrant Recipient shall not vest and shall immediately terminate. However, if all of the foregoing Warrant Conditions and Contingencies are met by any Warrant Recipient who following the Closing Date does not serve as a director or officer of AQSP, then the Warrants granted to such Warrant Recipient shall vest and may be exercised by such Warrant Recipient at any time during the two year period from the third anniversary of the Closing Date through the fifth anniversary of the Closing Date, provided that if after the third anniversary of the Closing Date such Warrant Recipient's continuous employment by Merger Sub or AQSP terminates for any reason, or if after the third anniversary of the Closing Date such Warrant Recipient's continuous service as a contractor, consultant, paid advisor, or informal unpaid advisor to Merger Sub, AQSP or Nicholas S. Warrender terminates for any reason (collectively a "Termination"), then such Warrant Recipient's vested Warrants shall terminate if they are not exercised within thirty (30) days following such Termination. 

 

Section 5.23Wisconsin Acquisitions. Through Company Owner, AQSP has been made aware of a potential business opportunity to acquire two companies located in Wisconsin: a company that among other things plans to manufacture and sell products incorporating a unique CBD delivery system ("Wisconsin Company #1") and a company that among other things plans to test and remediate hemp and hemp oils ("Wisconsin Company #2") (Wisconsin Company #1 and Wisconsin Company #2, collectively, the "Wisconsin Companies"). AQSP agrees and covenants to use good faith efforts to attempt to proceed forward to close (the "Wisconsin Closing") the acquisition (the "Wisconsin Acquisitions") of the Wisconsin Companies on the following terms and conditions, among others: 

 

(a)a capital raise must be completed, on terms acceptable to AQSP and Nicholas S. Warrender, in an amount sufficient to fund the pre-Wisconsin Closing loan referred to in Section 5.23(b) and to fund the cash portion of the Wisconsin Acquisitions consideration paid at the Wisconsin Closing referred to in Section 5.23 (d) (i); 

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(b)a pre-Wisconsin Closing loan may be made by AQSP to the Wisconsin Companies, on terms and conditions mutually acceptable to AQSP, Nicholas S. Warrender, and the owners of the Wisconsin Companies; 

 

(c)the Wisconsin Closing shall be subject to the following terms and conditions, among others: 

 

(1)AQSP's due diligence investigation of the Wisconsin Companies must be acceptable to AQSP and Nicholas S. Warrender; 

 

(2)the audit of the Wisconsin Companies must be acceptable to AQSP and Nicholas S. Warrender; 

 

(3)the definitive acquisition documentation must be mutually acceptable to AQSP, to Nicholas S. Warrender, and to the owners of the Wisconsin Companies; 

 

(4)all necessary third party approvals must be obtained, including approvals by the Board of Directors of AQSP and by a majority of the shareholders of AQSP; and 

 

(5)all necessary securities filings must be made. 

 

(d)the merger consideration paid by AQSP in the Wisconsin Acquisitions shall be as follows (or as otherwise mutually agreed upon by AQSP, Nicholas S. Warrender, and the owners of the Wisconsin Companies): 

 

(1)the cash portion of the Wisconsin Acquisitions merger consideration to be paid at the Wisconsin Closing shall be Two Million Dollars ($2,000,000) in cash; 

 

(2)the stock portion of the Wisconsin Acquisitions merger consideration to be paid at the Wisconsin Closing shall be One Million (1,000,000) shares of AQSP Common Stock; and 

 

(3)the portion of the Wisconsin Acquisitions merger consideration to be paid following the Wisconsin Closing shall be up to an additional Two Million Dollars ($2,000,000) in cash and up to an additional Three Million (3,000,000) shares of AQSP Common Stock, subject to an "earnout" contingency that the Wisconsin Companies shall have achieved, during an "earnout" period of 24-30 months following the Wisconsin Closing, an annualized EBITDA run rate of Four Million Dollars ($4,000,000) or more. 

 

Section 5.24Escrow of Preferred Stock Dividends. Prior to the Closing Date, AQSP shall escrow with a third party escrow agent all of the 3% dividends that are estimated to be payable by AQSP during calendar year 2020 in regard to AQSP's outstanding shares of Series A  

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and Series B convertible preferred stock, to ensure that such 3% dividends are timely paid on the respective anniversaries of the purchases of such shares of preferred stock (subject to appropriate adjustments in regard to any conversions of shares of preferred stock prior to such respective anniversaries).

 

Section 5.25Consultations. The Company Owner shall allow AQSP's lead outside director, Vincent J. Mesolella, to periodically consult with the Company's litigation counsel regarding strategies for potential settlements of the Company's disputes involving third parties. 

 

ARTICLE VI

CONDITIONS

Section 6.1Conditions to Each Party’s Obligation to Effect the Merger. The respective obligations of each party to this Agreement to effect the Merger is subject to the satisfaction or waiver (where permissible pursuant to applicable Law) on or prior to the Closing Date of each of the following conditions: 

(a)AQSP Stockholder Approval. The AQSP Stockholder Approval Matters shall have been approved by the Requisite AQSP Vote. 

(b)Waiting Period. At least twenty (20) days shall have passed since the Mailing Date. 

(c)No Injunctions, Restraints, or Illegality. No Governmental Entity having jurisdiction over any party hereto shall have enacted, issued, promulgated, enforced, or entered any Laws or Orders, whether temporary, preliminary, or permanent, that make illegal, enjoin, or otherwise prohibit consummation of the Merger, the AQSP Stock Issuance, or the other transactions contemplated by this Agreement. 

(d)Governmental Consents. All consents, approvals and other authorizations of any Governmental Entity set forth in Section 6.1 of the Company Disclosure Letter and Section 6.1 of the AQSP Disclosure Letter and required to consummate the Merger, the AQSP Stock Issuance, and the other transactions contemplated by this Agreement (other than the filing of the IL Articles of Merger and the WI Articles of Merger) shall have been obtained, free of any condition that would reasonably be expected to have a Company Material Adverse Effect or AQSP Material Adverse Effect. All filings required under the Securities Act or the Exchange Act necessary to consummate the Merger shall have been made. 

Section 6.2Conditions to Obligations of AQSP. The obligations of AQSP to effect the Merger are also subject to the satisfaction or waiver (where permissible pursuant to applicable Law) by AQSP on or prior to the Effective Time of the following conditions: 

(a)Representations and Warranties. (i) The representations and warranties of the Company set forth in Article III of this Agreement shall be true and correct in all material respects when made and on and as of the Closing Date, as if made on and as of  

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such date (except those representations and warranties that address matters only as of a particular date, which shall be true and correct in all respects as of that date).

(b)Performance of Covenants. The Company and the Company Owner shall have performed in all material respects all obligations, and complied in all material respects with the agreements and covenants, in this Agreement required to be performed by or complied with by it at or prior to the Closing Date, including but not limited to, delivery of the following documents: 

1.Nicholas S. Warrender executing and delivering to AQSP the NW Employment Agreement; 

2.Nicholas S. Warrender executing and delivering the Stockholders Agreement; 

3.The Company Owner executing and delivering the Escrow Agreement; and 

4.The Company Owner executing and delivering to AQSP a registration rights agreement, substantially in the form of the Registration Rights Agreement set forth on Exhibit C, attached hereto. 

(c)Company Material Adverse Effect. Since the date of this Agreement, there shall not have been any Company Material Adverse Effect or any event, change, or effect that would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 

(d)Officers Certificate. AQSP shall have received a certificate, signed by the chief executive officer or chief financial officer of the Company, certifying as to the matters set forth in Section 6.2(a), Section 6.2(b), and Section 6.2(c). 

(e)AQSP shall have received the signed Estoppel Letters referred to in Sections 5.21(c) and 5.22(c). 

Section 6.3Conditions to Obligation of the Company. The obligation of the Company to effect the Merger is also subject to the satisfaction or waiver by the Company on or prior to the Effective Time of the following conditions: 

(a)Representations and Warranties. The representations and warranties of AQSP shall be true and correct in all material respects when made and on and as of the Closing Date, as if made on and as of such date (except those representations and warranties that address matters only as of a particular date, which shall be true and correct in all material respects as of that date). 

(b)Performance of Covenants. AQSP and each Jacobs Owner shall have performed in all material respects all obligations, and complied in all material respects with the agreements and covenants, of this Agreement required to be performed by or  

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complied with by it at or prior to the Closing Date including but not limited to, delivery of the following documents:

1.AQSP executing and delivering to Nicholas S. Warrender the NW Employment Agreement; 

2.AQSP executing and delivering the Escrow Agreement; 

3.AQSP and each Jacobs Owner executing and delivering the Stockholders Agreement; and 

4.AQSP executing and delivering the Registration Rights Agreement. 

(c)AQSP Material Adverse Effect. Since the date of this Agreement, there shall not have been any AQSP Material Adverse Effect or any event, change, or effect that would, individually or in the aggregate, reasonably be expected to have an AQSP Material Adverse Effect. 

(d)Officers Certificate. The Company shall have received a certificate, signed by an officer of AQSP, certifying as to the matters set forth in Section 6.3(a), Section 6.3(b), and Section 6.3(c). 

ARTICLE VII

INDEMNIFICATION

Section 7.1Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein (other than Fundamental Representations and Warranties) shall survive the Closing and shall remain in full force and effect until the date that is twelve (12) months from the Closing Date.  Fundamental Representations and Warranties shall survive the Closing and shall remain in full force and effect indefinitely, other than the representations and warranties set forth in Section 3.6 which shall remain in full force and effect until 30 days following the expiration of the applicable statute of limitations. None of the covenants or other agreements contained in this Agreement shall survive the Closing Date other than those which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated by its terms or if no such term of survival is contemplated, shall survive indefinitely until performed.  Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive until finally resolved. 

Section 7.2Indemnification by Company Owner. Subject to the other conditions set forth in this Article VII, the Company Owner shall indemnify AQSP against, and shall hold AQSP harmless from and against, any and all Expenses incurred or sustained by, or imposed upon, Buyer based upon, arising out of, with respect to or by reason of: 

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(a)any inaccuracy in or breach of any of the representations or warranties of the Company or the Company Owner contained in this Agreement (other than a breach of Section 3.18); or 

(b)any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Company or the Company Owner pursuant to this Agreement. 

Section 7.3Indemnification by AQSP. Subject to the other conditions set forth in this Article VII, AQSP shall indemnify the Company Owner, and shall hold the Company Owner harmless from and against, any and all Expenses incurred or sustained by, or imposed upon, the Company Owner based upon, arising out of, with respect to or by reason of: 

(a)any inaccuracy in or breach of any of the representations or warranties of AQSP contained in this Agreement; or 

(b)any breach or non-fulfillment of any covenant, agreement or obligation to be performed by AQSP or any Jacobs Owner pursuant to this Agreement. 

Section 7.4Certain Limitations. The party making a claim under this Article VII is referred to as the “Indemnified Party”, and the party against whom such claims are asserted under this Article VII is referred to as the “Indemnifying Party”. For the avoidance of doubt, the Company and the Company Owner shall be treated as a single Indemnified Party or Indemnifying Party, as applicable. The indemnification provided for in Section 7.2 and Section 7.3 shall be subject to the following limitations: 

(a)The Indemnifying Party shall not be liable to the Indemnified Party for indemnification under Section 7.2(a) or Section 7.3(a), as the case may be, until the aggregate amount of all Expense in respect of indemnification thereunder exceeds $30,000 (the “Deductible”), in which event the Indemnifying Party shall be liable for all Expenses in excess of the Deductible.  

(b)The aggregate amount of all Expenses for which an Indemnifying Party shall be liable pursuant to Section 7.2(a) or Section 7.3(a), as the case may be (other than for breaches of Fundamental Representations and Warranties), shall not exceed ten percent (10%) of the Cash Consideration and ten percent (10%) of the Stock Consideration (the “Indemnification Cap”); provided that in no event shall the aggregate amount of all Expenses for which an Indemnifying Party shall be liable hereunder exceed the total Cash Consideration. 

(c)Payments by an Indemnifying Party pursuant to Section 7.2 or Section 7.3 in respect of any Expense shall be limited to the amount of any liability or damage that remains after deducting therefrom any insurance proceeds and any indemnity, contribution or other similar payment received or reasonably expected to be received by the Indemnified Party in respect of any such claim. The Indemnified Party shall use its commercially reasonable efforts to recover under insurance policies or indemnity, contribution or other similar agreements for any Expenses prior to seeking indemnification under this Agreement. 

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(d)Payments by an Indemnifying Party pursuant to Section 7.2 or Section 7.3 in respect of any Expense shall be reduced by an amount equal to any Tax benefit realized or reasonably expected to be realized as a result of such Expense by the Indemnified Party. 

(e)In no event shall any Indemnifying Party be liable to any Indemnified Party for any punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple. 

(f)Each Indemnified Party shall take, and cause its Affiliates to take, all reasonable steps to mitigate any Expense upon becoming aware of any event or circumstance that would be reasonably expected to, or does, give rise thereto, including incurring costs only to the minimum extent necessary to remedy the breach that gives rise to such Expense. 

(g)Any indemnification payments from the Company Owner in the form of AQSP Common Stock (whether as Escrowed Shares or otherwise) shall be treated as having a value based on the Deemed Value of the Stock Consideration. 

(h)Notwithstanding anything else contained herein, neither AQSP or the Jacobs Owners, on the one hand, or the Company or the Company Owner, on the other hand, shall be deemed to be in default of, or have any liability under this Agreement (or the transactions contemplated hereby), as a result of the manufacture, sale or distribution of CBD or CBD-Infused products by the Company or AQSP or in regard to any representations or warranties of any nature relating directly or indirectly to the legality or illegality of CBD or CBD-Infused products. 

(i)AQSP acknowledges and agrees, that notwithstanding anything else contained herein, the option set forth in this Section 5.18 shall be AQSP’s sole and exclusive remedy with respect to a breach of any representation and warranty contained in Section 3.18. 

(j)The foregoing indemnification provisions in this Section 7 are the sole and exclusive remedy AQSP (and its Affiliates) may have with respect to the representations, warranties and covenants of the Company and Company Owner set forth in this Agreement and the transactions contemplated by this Agreement. 

Section 7.5Indemnification Procedures. 

(a)Third Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any action, suit, claim or other legal proceeding made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement (a “Third-Party Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve  

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the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Expense that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of, any Third-Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense. In the event that the Indemnifying Party assumes the defense of any Third-Party Claim, subject to Section 7.5(b), the Indemnifying Party shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third-Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right, at its own cost and expense, to participate in the defense of any Third-Party Claim with counsel selected by the Indemnified Party, subject to the Indemnifying Party’s right to control the defense thereof. If the Indemnifying Party elects not to compromise or defend such Third-Party Claim or fails to notify promptly the Indemnified Party in writing of its election to defend as provided in this Agreement, the Indemnified Party may, subject to Section 7.5(b) pay, compromise and defend such Third-Party Claim and seek indemnification for any and all Expenses based upon, arising from or relating to such Third-Party Claim. AQSP and the Company Owner shall cooperate with each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available records relating to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third-Party Claim.

(b)Settlement of Third Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third-Party Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), except as provided in this Section 7.5(b). If a firm offer is made to settle a Third-Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third-Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within ten (10) days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third-Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third-Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third-Party Claim, the Indemnifying Party may settle the Third-Party Claim upon the terms set forth in such firm offer to settle such Third-Party Claim. If the Indemnified Party has assumed the defense pursuant to Section 7.5(a), the Indemnified Party shall not agree to any  

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settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed).

(c)Direct Claims. Any claim by an Indemnified Party on account of an Expense which does not result from a Third-Party Claim (a “Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party prompt written notice thereof. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Expense that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have thirty (30) days after its receipt of such notice to respond in writing to such Direct Claim. During such 30-day period, the Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim, and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information and assistance as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 30-day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement. 

(d)Manner of Payment. Any amounts owing from a Company Owner pursuant to this Article VII shall be made as follows: (i) first, an amount of Escrowed Cash and Escrowed Shares, pro rata in the Cash/Share Ratio, with aggregate Deemed Value equal to the lesser of (A) the aggregate amount owing or (B) the aggregate Deemed Value of any remaining Escrowed Cash and Escrowed Shares and (ii) thereafter, directly by the Company Owner to AQSP (payable in cash and shares of AQSP Common Stock, pro rata in the Cash/Share Ratio). 

(e)When is Payment Due. Any cash indemnification payment to be made pursuant to this Article VII shall be effected by wire transfer of immediately available funds to the applicable account designated by AQSP or the Company Owner, as applicable. Any indemnification payment satisfied by transfer of AQSP Common Stock shall be effected by delivery of an assignment separate from certificate assigning such AQSP Common Stock to AQSP (or its designee). All such indemnification obligations shall be made within five (5) Business Days after the indemnified Expenses have been determined by (i) a final, non-appealable order or judgment of a court of competent jurisdiction or (ii) a written, executed agreement between AQSP and the Company Owner. 

(f)Release of Escrowed Shares and Escrowed Cash. On the twelve (12) month anniversary of the Closing Date (except if not a Business Day, then the next Business Day) (the “Release Date”), any portion of the Escrowed Cash remaining as of the Release Date shall be released to the Company Owner and in accordance with the  

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instructions of the Company Owner, and all Escrowed Shares shall be delivered to the Company Owner; provided that the Escrow Agent shall continue to hold Escrowed Cash and Escrowed Shares, pro rata in the Cash/Share Ratio, with a Deemed Value equal to the lesser of (i) the Deemed Value of the aggregate remaining Escrowed Cash and Escrowed Shares and (ii) the sum of: (A) the aggregate amount claimed by an AQSP Indemnified Party pursuant to claims made in accordance with this Article VII and not fully resolved prior to such date, plus (B) the aggregate outstanding payments pending to an AQSP Indemnified Party pursuant to Section 7.5(c).  At any time following the Release Date, to the extent the Deemed Value of the Escrowed Cash and Escrowed Shares exceeds the aggregate amount claimed by the AQSP Indemnified Parties pursuant to claims made prior to the Release Date and not fully resolved prior to the time of determination, such excess shall be promptly released to each Company Owner as set forth with the previous sentence, pro rata in the Cash/Share Ratio.

ARTICLE VIII

TERMINATION, AMENDMENT, AND WAIVER

Section 8.1Termination by Mutual Consent. This Agreement may be terminated at any time prior to the Effective Time (whether before or after the receipt of the Requisite AQSP Vote) by the mutual written consent of AQSP and the Company. 

Section 8.2Termination by Either AQSP or the Company. This Agreement may be terminated by either AQSP or the Company at any time prior to the Effective Time (whether before or after the receipt of the Requisite AQSP Vote): 

(a)if the Merger shall not have been consummated on or prior to 5:00 p.m., Central Time, on the End Date; or 

(b)if any Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced, or entered any Law or Order making illegal, permanently enjoining, or otherwise permanently prohibiting the consummation of the Merger, the AQSP Stock Issuance, or the other transactions contemplated by this Agreement, and such Law or Order shall have become final and nonappealable; provided, however, that the right to terminate this Agreement pursuant to this Section 8.2(b) shall not be available to any party whose breach of any representation, warranty, covenant, or agreement set forth in this Agreement has been the cause of, or resulted in, the issuance, promulgation, enforcement, or entry of any such Law or Order.  

Section 8.3Termination by AQSP. This Agreement may be terminated by AQSP at any time prior to the Effective Time if there shall have been a material breach of any representation, warranty, covenant, or agreement on the part of the Company or the Company Owner set forth in this Agreement such that the conditions to the Closing of the Merger set forth in Section 6.2(a) or Section 6.2(b), as applicable, would not be satisfied and, in either such case, such breach is incapable of being cured by the End Date; provided, however, that AQSP shall have given the Company at least 30 days written notice prior to such termination stating AQSP’s intention to terminate this Agreement pursuant to this Section 8.3 and provided the Company  

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with the opportunity to cure such breach; provided further, that AQSP shall not have the right to terminate this Agreement pursuant to this Section 8.3 if AQSP is then in material breach of any representation, warranty, covenant, or obligation hereunder, which breach has not been cured.

Section 8.4Termination by the Company. This Agreement may be terminated by the Company at any time prior to the Effective Time if there shall have been a breach of any representation, warranty, covenant, or agreement on the part of AQSP or Jacobs Owner set forth in this Agreement such that the conditions to the Closing of the Merger set forth in Section 6.3(a) or Section 6.3(b), as applicable, would not be satisfied and, in either such case, such breach is incapable of being cured by the End Date; provided, however, that the Company shall have given AQSP at least 30 days written notice prior to such termination stating the Company’s intention to terminate this Agreement pursuant to this Section 8.4; provided further, that the Company shall not have the right to terminate this Agreement pursuant to this Section 8.4 if the Company is then in material breach of any representation, warranty, covenant, or obligation hereunder, which breach has not been cured. 

Section 8.5Notice of Termination; Effect of Termination. The party desiring to terminate this Agreement pursuant to this Article VIII (other than pursuant to Section 8.1) shall deliver written notice of such termination to each other party hereto specifying with particularity the reason for such termination, and any such termination in accordance with this Section 8.5 shall be effective immediately upon delivery of such written notice to the other party, except as otherwise provided herein. If this Agreement is terminated pursuant to this Article VIII, it shall become void and of no further force and effect, with no liability on the part of any party to this Agreement (or any stockholder, director, officer, employee, agent, or Representative of such party) to any other party hereto, except: (a) with respect to this Section 8.5, Section 8.6, and Article IX (and any related definitions contained in any such Sections or Article), which shall remain in full force and effect; and (b) with respect to any liabilities or damages incurred or suffered by a party, to the extent such liabilities or damages were the result of fraud or the breach by another party of any of its representations, warranties, covenants, or other agreements set forth in this Agreement. 

Section 8.6Amendment. At any time prior to the Effective Time, this Agreement may be amended or supplemented in any and all respects, whether before or after receipt of the Requisite AQSP Vote, by written agreement signed by each of the parties hereto; provided, however, that following the receipt of the Requisite AQSP Vote, there shall be no amendment or supplement to the provisions of this Agreement which by Law or in accordance with the rules of any relevant self-regulatory organization would require further approval by the AQSP stockholders without such approval. 

Section 8.7Extension; Waiver. At any time prior to the Effective Time, AQSP, on the one hand, or the Company, on the other hand, may: (a) extend the time for the performance of any of the obligations of the other party(ies); (b) waive any inaccuracies in the representations and warranties of the other party(ies) contained in this Agreement or in any document delivered under this Agreement; or (c) unless prohibited by applicable Law, waive compliance with any of the covenants, agreements, or conditions contained in this Agreement. Any agreement on the part of a party to any extension or waiver shall be valid only if set forth in an instrument in writing  

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signed by such party. The failure of any party to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.

ARTICLE IX

MISCELLANEOUS

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

“10-Day Trading Average” means the arithmetic average (for consecutive trading days) of the closing trading price of a share of AQSP Common Stock on the OTC (for each trading day) as of the close of business during the ten consecutive trading days preceding the last Business Day before the date of this Agreement or, if this Agreement is modified with respect to a term that relates to the amount or type of the consideration the Company Owner will receive in connection with the Merger, subject to the exceptions set forth in Treasury Regulations Section 1.368-1(e)(2)(ii)(B)(2) and (3), the arithmetic average (for consecutive trading days) of the closing trading price of a shore of AQSP Common Stock on the OTC (for each trading day) as of the close of business during the ten consecutive trading days preceding the last Business Day before the date of such modification. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such first Person. For the purposes of this definition, “control” (including, 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.

“Affordable Care Act” means the Patient Protection and Affordable Care Act (PPACA), as amended by the Health Care and Education Reconciliation Act (HCERA).

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

“Annual Financial Statements” has the meaning set forth in Section 3.4(a).

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

“AQSP Balance Sheet” has the meaning set forth in Section 4.4(c).

“AQSP Benefit Plans” has the meaning set forth in Section 5.7(b).

“AQSP Board” has the meaning set forth in the Recitals.

 “AQSP Common Stock” has the meaning set forth in the Recitals.

“AQSP Disclosure Letter” means the disclosure letter, dated as of the date of this Agreement and delivered by AQSP to the Company concurrently with the execution of this Agreement.

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“AQSP Equity Award” means an AQSP Stock Option or an AQSP Restricted Share granted under one of the AQSP Stock Plans, as the case may be.

“AQSP Fundamental Representations and Warranties” means those representations and warranties of AQSP set forth in Section 4.1, Section 4.2, Section 4.3, Section 4.4, Section 4.8, and Section 4.9.

“AQSP Material Adverse Effect” means any event, occurrence, fact, condition, or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse to: (a) the business, results of operations, condition (financial or otherwise), or assets of AQSP and its Subsidiaries, taken as a whole; or (b) the ability of AQSP to consummate the transactions contemplated hereby on a timely basis; provided, however, that an AQSP Material Adverse Effect shall not be deemed to include events, occurrences, facts, conditions, or changes arising out of, relating to, or resulting from: (i) changes generally affecting the economy, financial, or securities markets; (ii) the announcement of the transactions contemplated by this Agreement; (iii) any outbreak or escalation of war or any act of terrorism; (iv) general conditions in the industry in which AQSP and its Subsidiaries operate; (v) any failure, in and of itself, by AQSP to meet any internal or published projections, forecasts, estimates, or predictions in respect of revenues, earnings, or other financial or operating metrics for any period (it being understood that the facts or occurrences giving rise to or contributing to such failure may be deemed to constitute, or be taken into account in determining whether there has been or would reasonably be expected to become, an AQSP Material Adverse Effect, to the extent permitted by this definition and not otherwise excepted by a clause of this proviso); or (vi) any change, in and of itself, in the market price or trading volume of AQSP’s securities or in its credit ratings (it being understood that the facts or occurrences giving rise to or contributing to such change may be deemed to constitute, or be taken into account in determining whether there has been or would reasonably be expected to become, an AQSP Material Adverse Effect, to the extent permitted by this definition and not otherwise excepted by a clause of this proviso), provided further, however, that any event, change, and effect referred to in clauses (i), (iii), or (iv) immediately above shall be taken into account in determining whether an AQSP Material Adverse Effect has occurred or would reasonably be expected to occur to the extent that such event, change, or effect has a disproportionate effect on AQSP and its Subsidiaries, taken as a whole, compared to other participants in the industries in which AQSP and its Subsidiaries conduct their businesses.

“AQSP Preferred Stock” means AQSP’s Series A Preferred Stock, par value $0.001 per share and AQSP’s Series B Preferred Stock, par value $0.001 per share.

“AQSP Restricted Share” means any AQSP Common Stock subject to vesting, repurchase, or other lapse of restrictions granted under any AQSP Stock Plan.

“AQSP SEC Documents” has the meaning set forth in Section 4.4(a).

“AQSP Securities” has the meaning set forth in Section 4.2(a)(i).

“AQSP Stockholder Approval Matters” means the approval of this Agreement, the Merger and the AQSP Stock Issuance.

“AQSP Stock Issuance” has the meaning set forth in the Recitals.

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“AQSP Stock Option” means any option, warrant, or right to purchase warrant to purchase AQSP Common Stock granted under any AQSP Stock Plan.

“AQSP Stock Plans” means the AQSP Board approval for the issuance of any warrants or options exercisable or convertible into shares of AQSP Common Stock that has been approved by the AQSP Board.

“AQSP Subsidiary Securities” has the meaning set forth in Section 4.2(c).

“AQSP Voting Debt” has the meaning set forth in Section 4.2(b).

“Business Day” means any day, other than Saturday, Sunday, or any day on which banking institutions located in Chicago, Illinois are authorized or required by Law or other governmental action to close.

“Cash Consideration” means an amount equal to $3,750,000.

“Cash/Share Ratio” means the relative Deemed Value of the Cash Consideration compared to the Deemed Value of the Stock Consideration.

“Charge” has the meaning set forth in Section 9.16(c).

“Charter Documents” means: (a) with respect to a corporation, the charter, articles or certificate of incorporation, as applicable, and bylaws thereof; (b) with respect to a limited liability company, the certificate of formation or articles of organization, as applicable, and the operating or limited liability company agreement, as applicable, thereof; (c) with respect to a partnership, the certificate of formation and the partnership agreement; and (d) with respect to any other Person the organizational, constituent or governing documents or instruments of such Person.

“Closing” has the meaning set forth in Section 1.2.

“Closing Capital Structure Schedule” has the meaning set forth in Section 5.14.

“Closing Date” has the meaning set forth in Section 1.2.

“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Section 4980B of the Code and Section 601 et. seq. of ERISA.

“Code” has the meaning set forth in the Recitals.

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

“Company Audit” means the audit of the Company’s Annual Financial Statements and Interim Financial Statements by Fruci & Associates.

“Company Common Stock” has the meaning set forth in the Recitals.

“Company Continuing Employees” has the meaning set forth in Section 5.7(a).

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“Company Disclosure Letter” means the disclosure letter, dated as of the date of this Agreement and delivered by the Company to AQSP concurrently with the execution of this Agreement.

“Company Employee” has the meaning set forth in Section 3.12(a).

“Company Employee Plans” has the meaning set forth in Section 3.12(a).

“Company ERISA Affiliate” means all employers, trades, or businesses (whether or not incorporated) that would be treated together with the Company or any of its Affiliates as a “single employer” within the meaning of Section 414 of the Code.

“Company Fundamental Representations and Warranties” means those representations and warranties of the Company or each Company Owner set forth in Section 3.1, Section 3.2, Section 3.3, Section 3.6, Section 3.10 and Section 3.14.

“Company IP” has the meaning set forth in Section 3.7(b).

“Company IP Agreements” means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants not to sue, waivers, releases, permissions, and other Contracts, whether written or oral, relating to Intellectual Property and to which the Company or any of its Subsidiaries is a party, beneficiary, or otherwise bound.

“Company IT Systems” means all software, computer hardware, servers, networks, platforms, peripherals, data communication lines, and other information technology equipment and related systems that are owned or used by the Company or any of its Subsidiaries.

“Company Material Adverse Effect” means any event, occurrence, fact, condition, or change that is, or would reasonably be expected to become, individually or in the aggregate, materially adverse to: (a) the business, results of operations, condition (financial or otherwise), or assets of the Company; or (b) the ability of the Company to consummate the transactions contemplated hereby on a timely basis; provided, however, that, a Company Material Adverse Effect shall not be deemed to include events, occurrences, facts, conditions or changes arising out of, relating to, or resulting from: (i) changes generally affecting the economy, financial, or securities markets; (ii) the announcement of the transactions contemplated by this Agreement; (iii) any outbreak or escalation of war or any act of terrorism; or (iv) general conditions in the industry in which the Company operates; provided further, however, that any event, change, and effect referred to in clauses (i), (iii), or (iv) immediately above shall be taken into account in determining whether a Company Material Adverse Effect has occurred or would reasonably be expected to occur to the extent that such event, change, or effect has a disproportionate effect on the Company compared to other participants in the industries in which the Company conducts its businesses.

“Company Material Contract” has the meaning set forth in Section 3.15(a).

“Company-Owned IP” means all Intellectual Property owned by the Company or any of its Subsidiaries.

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“Company Owner” has the meaning set forth in the Preamble.

“Consent” has the meaning set forth in Section 3.3(c).

“Contracts” means any contracts, agreements, licenses, notes, bonds, mortgages, indentures, leases, or other binding instruments or binding commitments, whether written or oral.

“Deemed Value” means, with respect to cash, the face value of the cash, and with respect to AQSP Common Stock, the value calculated in accordance with the 10-Day Trading Average.

“Direct Claim” has the meaning set forth in Section 7.5(c).

“Effective Time” has the meaning set forth in Section 1.3.

“End Date” means (i) February 15, 2020 but only in the event AQSP has not received any communications from the SEC regarding preliminary Information Statement within ten (10) Business Days of the filing thereof (or has been notified by the SEC that the SEC will not comment on the preliminary Information Statement), otherwise (ii) April 15, 2020.

“Environmental Laws” means any applicable Law, and any Order of any Governmental Entity: (a) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b) concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials. The term “Environmental Law” includes, without limitation, the following (including their implementing regulations and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. §§ 651 et seq.

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

“Escrow Agent” means an escrow agent reasonably acceptable to AQSP and the Company Owner.

“Escrow Agreement” has the meaning set forth in Section 5.18.

“Escrowed Cash” means an amount equal to $375,000.

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“Escrowed Shares” means such number of shares of AQSP Common Stock equal to ten percent (10%) of the number of shares of AQSP Common Stock constituting the Stock Consideration.

“Estimated Tax Distribution” means a dividend or distribution to the Company Owner in an amount equal to the product of (a) the estimated taxable income allocated by the Company to the Company Owner for the short Tax year ending on the Closing Date (as reasonably determined by the Company’s accountant), multiplied by (b) the highest effective combined federal, state and local income tax rate (including any tax rate imposed on “net investment income” by Section 1411 of the Code) applicable during such period to an individual residing in the State of Illinois with respect to the type or character of the particular income (whether capital gain, ordinary income or otherwise), and taking into account any limitations on the deductibility of any Expenses or other amount (or the usage of any loss and treating all state and local income taxes as not deductible).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

“Expenses” means, with respect to any Person, all reasonable and documented out-of-pocket fees and expenses (including all fees and expenses of counsel, accountants, financial advisors, and investment bankers of such Person and its Affiliates), incurred by such Person or on its behalf in connection with or related to the authorization, preparation, negotiation, execution, and performance of this Agreement and any transactions related thereto, any litigation with respect thereto, the preparation, printing, filing, and mailing of the Information Statement, or in connection with other regulatory approvals, and all other matters related to the Merger, the AQSP Stock Issuance, and the other transactions contemplated by this Agreement.

“Financial Statements” has the meaning set forth in Section 3.4(a).

“Fundamental Representations and Warranties” means the AQSP Fundamental Representations and Warranties and the Company Fundamental Representations and Warranties. 

“GAAP” has the meaning set forth in Section 3.4(a).

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

“Governmental Entity” has the meaning set forth in Section 3.3(c).

“Hazardous Substance” shall mean: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral, or gas, in each case, whether naturally occurring or man-made, that is hazardous, acutely hazardous, toxic, or words of similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls.

“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended.

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“IL Articles of Merger” has the meaning set forth in Section 1.3.

“IL BCA” has the meaning set forth in the Recitals.

“Indemnifiable Company Party” has the meaning set forth in Section 5.8(a).

“Indemnified Party” has the meaning set forth in Section 7.4.

“Indemnifying Party” has the meaning set forth in Section 7.4.

“Information Statement” has the meaning set forth in Section 3.17.

“Intellectual Property” means any and all of the following arising pursuant to the Laws of any jurisdiction throughout the world: (a) trademarks, service marks, trade names, and similar indicia of source or origin, all registrations and applications for registration thereof, and the goodwill connected with the use of and symbolized by the foregoing; (b) copyrights and all registrations and applications for registration thereof; (c) trade secrets and know-how; (d) patents and patent applications; (e) internet domain name registrations, and (f) other intellectual property and related proprietary rights, including, but not limited to any logos, color schemes, packaging materials, fictitious business names, brochures, marketing and explanatory materials, and proprietary formulae.

“Interest Ratio” means a fraction, the numerator of which is one, and the denominator of which is the number of shares of Company Common Stock outstanding immediately prior to the Closing, as set forth in Section 3.2(a) of the Company Disclosure Letter.

“Interim Balance Sheet” has the meaning set forth in Section 3.4(a).

“Interim Financial Statements” has the meaning set forth in Section 3.4(a).

“IRS” means the United States Internal Revenue Service.

“Jacobs Owner” has the meaning set forth in the Preamble.

 “Knowledge” means: (a) with respect to the Company, the actual knowledge of each of the individuals listed in Section 9.1 of the Company’s Disclosure Letter; and (b) with respect to AQSP and its Subsidiaries, the actual knowledge of each of the individuals listed in Section 9.1 of the AQSP Disclosure Letter; in each case, after due inquiry.

“Laws” means any federal, state, local, municipal, foreign, multi-national or other laws, common law, statutes, constitutions, ordinances, rules, regulations, codes, Orders, or legally enforceable requirements enacted, issued, adopted, promulgated, enforced, ordered, or applied by any Governmental Entity, other than any US federal or state laws, ordinance, constitution, regulation, statute, treaty, rules or codes to the extent the federal or state laws, ordinance, constitution, regulation, statute, treaty, rules or codes would be violated, or protections under the federal or state laws, ordinance, constitution, regulation, statute, treaty, rules or codes would be unavailable to a party as a result of operating or owning a business engaged in the manufacture, 

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sale, distribution or transport of CBD-infused products or services as currently provided by the Company.

“Lease” shall mean all leases, subleases, licenses, concessions, and other agreements (written or oral) under which the Company holds any Leased Real Estate, including the right to all security deposits and other amounts and instruments deposited by or on behalf of the Company thereunder.

“Leased Real Estate” shall mean all leasehold or subleasehold estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures, or other interest in real property held by the Company.

“Legal Action” means any legal, administrative, arbitral, mediation, or other proceedings, suits, actions, investigations, examinations, claims, audits, hearings, charges, complaints, indictments, litigations, or examinations.

“Liability” shall mean any liability, indebtedness, or obligation of any kind (whether accrued, absolute, contingent, matured, unmatured, determined, determinable, or otherwise, and whether or not required to be recorded or reflected on a balance sheet under GAAP).

“Liens” means, with respect to any property or asset, all pledges, liens, mortgages, charges, encumbrances, hypothecations, options, rights of first refusal, rights of first offer, and security interests of any kind or nature whatsoever.

“Mailing Date” has the meaning set forth in Section 5.5.

“Merger” has the meaning set forth in the Recitals.

“Merger Consideration” means the Cash Consideration, the Note Consideration and the Stock Consideration and payable pursuant to Section 2.2.

“Multiemployer Plan” has the meaning set forth in Section 3.12(c).

“Note Consideration” means $3,750,000 in the form of the Promissory Note.

“NW Employment Agreement” has the meaning in Section 5.12.

“OTC” means the Over-The-Counter Bulletin Board.

“Order” has the meaning set forth in Section 3.9.

“Other Governmental Approvals” has the meaning set forth in Section 3.3(c).

“Outside CBD Business Interests” has the meaning set forth in Section 3.18.

“Owned Real Estate” shall mean all land, together with all buildings, structures, fixtures, and improvements located thereon and all easements, rights of way, and appurtenances relating thereto, owned by the Company.

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“PBGC” has the meaning set forth in Section 3.12(d).

“Permits” has the meaning set forth in Section 3.8(b).

“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 (provided appropriate reserves required pursuant to GAAP have been made in respect thereof); (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 (provided appropriate reserves required pursuant to GAAP have been made in respect thereof); (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; and (f) Liens arising under workers’ compensation, unemployment insurance, social security, retirement, and similar legislation.

“Person” means any individual, corporation, limited or general partnership, limited liability company, limited liability partnership, trust, association, joint venture, Governmental Entity, or other entity or group (which term shall include a “group” as such term is defined in Section 13(d)(3) of the Exchange Act).

“Promissory Note” means a promissory note in the form attached hereto as Exhibit D (a) which is made and payable by AQSP and the Merger Sub jointly, (b) which is payable to the Company Owner, (c) which accrues interest at the rate of 2% annually, (d) which is secured by a first lien security interest in all of the assets of AQSP and the Merger Sub, and by a pledge of (i) all of the capital stock of the Merger Sub, (ii) all of the common stock of Bendistillery Inc., Bend Spirits, Inc., and Ablis Holding Company owned by AQSP, and (iii) all of the capital stock of any other entity owned by AQSP or any of its subsidiaries, (e) which shall contain a legally binding obligation of AQSP and Merger Sub pursuant to which, following the closing of any equity or debt capital raise by AQSP or Merger Sub following the date of this Agreement, excluding only the capital raise for the Wisconsin Acquisitions referred to in Section 5.23(a), AQSP and Merger Sub shall be obligated to allocate and pay over at least 50% of the net proceeds of such capital raise toward a prepayment of the principal and accrued interest on such promissory note, and (f) which shall be due and payable in full upon the earlier of (i) the date which is thirty (30) days after the last day (the "Aggregate EBITDA Calculation Date") of the calendar quarter during which the aggregate earnings before interest, taxes, depreciation and amortization ("EBITDA") of Merger Sub during the period between the Closing Date and the Aggregate EBITDA Calculation Date, as certified by AQSP's firm of independent certified public accountants, exceeds $7,500,000, or (ii) the date which is the fifth anniversary of the Closing Date.

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“Release Date” has the meaning set forth in Section 7.5(f).

“Representatives” has the meaning set forth in Section 5.3(b).

“Requisite AQSP Vote” has the meaning set forth in Section 4.3(a).

“SEC” has the meaning set forth in Section 4.3(c).

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

“Stock Consideration” means 3,900,455 shares of AQSP Common Stock. 

“Subsidiary” of a Person means a corporation, partnership, limited liability company, or other business entity of which a majority of the shares of voting securities is at the time beneficially owned, or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person.

“Taxes” means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto and any interest in respect of such additions or penalties.

“Tax Returns” means any return, declaration, report, claim for refund, information return or statement, or other document relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

“Third-Party Claim” has the meaning set forth in Section 7.5(a).

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

“WI Articles of Merger” has the meaning set forth in Section 1.3.

“WI BCL” has the meaning set forth in the Recitals. 

Section 9.2Interpretation; Construction. 

(a)The table of contents and headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. Where a reference in this Agreement is made to a Section, Exhibit, Article, or Schedule, such reference shall be to a Section of, Exhibit to, Article of, or Schedule of this Agreement unless otherwise indicated. Unless the context otherwise requires, references herein: (i) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions  

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thereof; and (ii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” and the word “or” is not exclusive. The word “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and does not simply mean “if.” A reference in this Agreement to $ or dollars is to U.S. dollars. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. The words “hereof,” “herein,” “hereby,” “hereto,” 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 include the Company Disclosure Letter and AQSP Disclosure Letter.

(b)The parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 

Section 9.3[Intentionally Omitted].  

Section 9.4Governing Law. This Agreement and all Legal Actions (whether based on contract, tort, or statute) arising out of or relating to this Agreement or the actions of any of the parties hereto in the negotiation, administration, performance, or enforcement hereof, shall be governed by and construed in accordance with the internal laws of the State of Illinois without giving effect to any choice or conflict of law provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of Laws of any jurisdiction other than those of the State of Illinois. 

Section 9.5Submission to Jurisdiction. Each of the parties hereto irrevocably agrees that any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by any other party hereto or its successors or assigns shall be brought and determined exclusively in the State courts located in Lake County, Illinois. Each of the parties hereto agrees that mailing of process or other papers in connection with any such Legal Action in the manner provided in Section 9.7 or in such other manner as may be permitted by applicable Laws, shall be valid and sufficient service thereof. Each of the parties hereto hereby irrevocably submits with regard to any such Legal Action for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it shall not bring any Legal Action relating to this Agreement or any of the transactions contemplated by this Agreement in any court or tribunal other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim, or otherwise, in any Legal Action with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder: (a) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Section 9.5; (b) any claim  

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that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise); and (c) to the fullest extent permitted by the applicable Law, any claim that (i) the suit, action, or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action, or proceeding is improper, or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

Section 9.6Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT 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 OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT 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 9.6 

Section 9.7Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by email 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; or (d) on the third day after the date mailed, by certified or registered 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 9.7): 

	If to AQSP or any Jacobs Owner, to:

	Acquired Sales Corp.

31 N. Suffolk Lane

	 

	Lake Forest, Illinois 60045

	 

	Attention: Gerard M. Jacobs

	 

	Email: lakegeneva91@gmail.com

	 

	 

	If to the Company or Company Owner, to:

	Warrender Enterprise Inc.

	 

	12715 210th Ave. 

Bristol, Wisconsin 53104

	 

	Attention: Nicholas Warrender

	 

	Email: nick@liftedliquids.com

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

Section 9.8Entire Agreement. This Agreement (including the Exhibits to this Agreement), the Company Disclosure Letter and the AQSP Disclosure Letter constitute the entire agreement among the parties with respect to the subject matter of this Agreement and supersede all other prior agreements and understandings, both written and oral, among the parties to this Agreement with respect to the subject matter of this Agreement. In the event of any inconsistency between the statements in the body of this Agreement, the AQSP Disclosure Letter, and the Company Disclosure Letter (other than an exception expressly set forth as such in the AQSP Disclosure Letter or Company Disclosure Letter), the statements in the body of this Agreement shall control. 

Section 9.9No Third-Party Beneficiaries. Except as provided in Section 5.8 (which shall be to the benefit of the parties referred to in such section), this Agreement is for the sole benefit of the parties hereto and their permitted assigns and respective successors and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement. 

Section 9.10Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 

Section 9.11Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither AQSP on the one hand, nor the Company on the other hand, may assign its rights or obligations hereunder without the prior written consent of the other party. No assignment shall relieve the assigning party of any of its obligations hereunder. 

Section 9.12Remedies. Except as otherwise provided in this Agreement, any and all remedies expressly conferred upon a party to this Agreement shall be cumulative with, and not exclusive of, any other remedy contained in this Agreement, at Law, or in equity. The exercise by a party to this Agreement of any one remedy shall not preclude the exercise by it of any other remedy. 

Section 9.13Counterparts; Effectiveness. This Agreement may be executed in any number of counterparts, all of which shall be one and the same agreement. This Agreement shall become effective when each party to this Agreement shall have received counterparts signed by all of the other parties. 

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Section 9.14Expenses. In the event the Closing shall have occurred, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants (that remain outstanding as of the Closing), incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by AQSP. Except as otherwise expressly provided herein, in the event this Agreement is terminated prior to the Closing (for any reason) all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses. 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

	ACQUIRED SALES CORP.

	 

	By:

	/s/ Gerard M. Jacobs

	Name:

	Gerard M. Jacobs

	Title:

	CEO

	 

	LIFTED LIQUIDS, INC.

	 

	By:

	/s/ Gerard M. Jacobs

	Name:

	Gerard M. Jacobs

	Title:

	CEO

	 

	 

	JACOBS OWNERS:

	 

	/s/ Gerard M. Jacobs

	GERARD M. JACOBS

	 

	/s/ William C. Jacobs

	WILLIAM C. JACOBS

	 

	 

	WARRENDER ENTERPRISE INC.

	 

	By:

	/s/ Nicholas S. Warrender

	Name:

	Nicholas S. Warrender

	Title:

	President

	 

	COMPANY OWNER:

	 

	/s/ Nicholas S. Warrender

	NICHOLAS S. WARRENDER

	 

65 

EXHIBIT A

Form of Employment Agreement

EXHIBIT A-1

Key Employees Titles and Base Salaries

 

“AQSP” means Acquired Sales Corp.

“Board” means the Board of Directors of AQSP

“Lifted” means [Lifted Liquids [Inc./LLC]], a wholly-owned subsidiary of AQSP

 

	Name

	Title(s)

	Base Salary

	Responsibilities

	Reporting to

	Nicholas S. Warrender

	Co-Founder and Vice Chairman of AQSP

	$100,000

	Participation in all significant decision making at AQSP

	Board and CEO of AQSP

	 

	Chief Operating Officer of AQSP

	 

	Consultation with and advice/assistance to CEOs of all AQSP brands and subsidiaries regarding all business activities and opportunities

	 

	 

	CEO of Lifted

	 

	Leadership of Lifted

	 

EXHIBIT B

Stockholders Agreement

EXHIBIT C

Registration Rights Agreement

EXHIBIT D

Promissory Note

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