Document:

EX-10.12

 Exhibit 10.12 

认购期权协议 
 Call Option Agreement 

本认购期权协议下称“本协议”)由以下各方于
 2020年 11月
10日在中华人民共和国(下称“中国”)上海签订:

 This Call Option Agreement (this “Agreement”) is executed by and among the following Parties as of
November 10, 2020 in Shanghai, the People’s Republic of China (“China” or the “PRC”): 
 甲方:
亘利生物科技(上海)有限公司 

地址: [***] 

Party A: Gracell Bioscience (Shanghai) Co., Ltd. 
 Address:
[***] 
 乙方:
华晓弥 

身份证号码: [***] 
 Party B: HUA Xiaomi 

Chinese Identification Card No.: [***] 
 丙方:
亘喜生物科技(上海)有限公司 

地址: [***] 

Party C: Gracell Biotechnologies (Shanghai) Co., Ltd. 

Address: [***] 
 在本协议中,甲方、乙方和丙方以下各称“一方”,合称“各方”。 
 In this Agreement, each of Party A, Party B and Party C shall be referred to
as a “Party” respectively, and they shall be collectively referred to as the “Parties”. 

  
 1 

Call Option Agreement 
 认购期权协议 

鉴于:乙方持有丙方
0.1%的股权权益。甲方与丙方签订了技术咨询与服务协议、业务合作合同等一系列控制性协议(“
控制协议”)。 
 Whereas: Party B holds 0.1% of the equity interest in Party C. Party A and
Party C have executed a Technical Consultation and Service Agreement, Business Cooperation Agreement and other control agreements (the “Control Agreements”). 

现各方协商一致,达成如下协议:
 
 Now therefore, upon mutual discussion and negotiation, the
Parties have reached the following agreement: 
  

	1.	 股权买卖

 Sale and Purchase of Equity Interest 

 

	 	1.1	 授予权利

 Option Granted 

鉴于甲方向乙方支付了人民币
1元作为对价,且乙方确认收到并认为该对价足够,乙方在此不可撤销地同意,在中国法律允许的前提下,甲

方可以按照自行决定的行使步骤,并按照本协议第
1.3条所述的价格,要求乙方履行和完成中国法律要求的一切审批和登记手续,使得甲方可以随时一次或多次从乙方购买,或指定一人或多人
(“被指定人”)从乙方购买乙方所持有的丙方的全部或部分股权

(“股权购买权”)。甲方的该股权购买权为独家的。除甲方和被指定人外,任何第三人均不得享有股权购买权或其他与乙方股权有关的权利。丙方特此同意乙方向甲方授予股权购买权。本款及本协议所规定的“人”指个人、公司、合营企业、合伙、企业、信托或非公司组织。
 
 In consideration of the payment of RMB 1 by Party A, the receipt
and adequacy of which is hereby acknowledged by Party B, Party B hereby irrevocably agrees that, on the condition that it is permitted by the PRC laws, Party A has the right to require Party B to fulfill and complete all approval and registration
procedures required under PRC laws for Party A to purchase, or designate one or more persons (each, a “Designee”) to purchase, Party B’s equity interests in Party C, once or at multiple times at any time in part or in whole at
Party A’s sole and absolute discretion and at the price described in Section 1.3 herein (such right being the “Equity Interest Purchase Option”). Party A’s Equity Interest Purchase Option shall be exclusive. Except
for Party A and the Designee(s), no other person shall be entitled to the Equity Interest Purchase Option or other rights with respect to the equity interests of Party B. Party C hereby agrees to the grant by Party B of the Equity Interest Purchase
Option to Party A. The term “person” as used herein shall refer to individuals, corporations, partnerships, partners, enterprises, trusts or non- corporate organizations. 

  
 2 

Call Option Agreement 
 认购期权协议 

	 	1.2	 行使步骤

 Steps for Exercise of Equity Interest Purchase Option 

甲方行使其股权购买权以符合中国法律和法规的规定为前提。甲方行

使股权购买权时,应向乙方发出书面通知(“股权购买通知”),股权购买通知应载明以下事项:
(a)甲方关于行使股权购买权的决定;
(b)甲方拟从乙方购买的股权份额(“被购买股权”);和
(c)被购买股权的购买日/转让日。 

Subject to the provisions of the laws and regulations of China, Party A may exercise the Equity Interest Purchase Option by issuing a written
notice to Party B (the “Equity Interest Purchase Option Notice”), specifying: (a) Party A’s decision to exercise the Equity Interest Purchase Option; (b) the portion of equity interests to be purchased from Party B
(the “Optioned Interests”); and (c) the date for purchasing the Optioned Interests and/or the date for transfer of the Optioned Interests. 
  

	 	1.3	 股权买价

 Equity Interest Purchase Price 

被购买股权的买价(“基准买价”)应为中国法律所允许的最低价格。如果在甲方行权时中国法律要求评估股权,各方通过诚信原则另行商

定,并在评估基础上对该股权买价进行必要调整,以符合当时适用之任
 何中国法律之要求(统称“股权买价”)。如果由于适用法律要求,导致甲方向乙方实际支付的股权买价非为零元,则乙方应当按照甲方的

要求,并以合法的形式将乙方取得的股权买价立即返还给甲方或被指
 定人。 

The purchase price of the Optioned Interests (the “Base Price”) shall be the lowest price allowed by the laws of China. If
appraisal is required by the laws of China at the time when Party A exercises the Equity Interest Purchase Option, the Parties shall negotiate in good faith and based on the appraisal result make necessary adjustment to the Equity Interest Purchase
Price so that it complies with any and all then applicable laws of China (collectively, the “Equity Interest Purchase Price”). If the Equity Interest Purchase Price actually paid by Party A is not nil pursuant to the requirements of
applicable laws, Party B shall immediately return to Party A or its Designee the Equity Interest Purchase Price received by Party B at the instruction of Party A and in compliance with applicable laws. 

  
 3 

Call Option Agreement 
 认购期权协议 

	 	1.4	
转让被购买股权 

Transfer of Optioned Interests 

甲方每次行使股权购买权时:
 
 For each exercise of the Equity Interest Purchase Option: 

 

	 	1.4.1	
乙方应责成丙方及时召开股东会会议,在该会议上,应通过批准

乙方向甲方和/或被指定人转让被购买股权的决议;
 

 Party B shall cause Party C to promptly convene a shareholders’ meeting, at which a resolution shall be
adopted approving Party B’s transfer of the Optioned Interests to Party A and/or the Designee(s); 
  

	 	1.4.2	
乙方应就其向甲方和/或被指定人转让被购买股权取得丙方其他
股东同意该转让并放弃优先购买权的书面声明; 

Party B shall obtain written statements from the other shareholders of Party C giving consent to the transfer of the equity interest to Party
A and/or the Designee(s) and waiving any right of first refusal related thereto; 
  

	 	1.4.3	
乙方应与甲方和/或(在适用的情况下)被指定人按照本协议及

股权购买通知的规定,为每次转让签订股权转让合同;

 Party B shall execute a share transfer contract with respect to each transfer with Party A and/or each Designee
(whichever is applicable), in accordance with the provisions of this Agreement and the Equity Interest Purchase Option Notice regarding the Optioned Interests; 
  

	 	1.4.4	
有关方应签署所有其他所需合同、协议或文件,取得全部所需的

政府批准和同意,并采取所有所需行动,在不附带任何担保权益

的情况下,将被购买股权的有效所有权转移给甲方和/或被指定
人并使甲方和/或被指定人成为被购买股权的登记在册所有人。

为本款及本协议的目的,“担保权益”包括担保、抵押、第三方权利或权益,任何购股权、收购权、优先购买权、抵销权、所有权扣留或其他担保安排等;但为了明确起见,不包括在本协议、乙方股权质押合同项下产生的任何担保权益。本款及本协议所规定的“乙方股权质押合同”指甲方,乙方和丙方于本协议签署之日签订的股权质押协议(下称
“乙方股权质押合同”),根据乙方股权质押合同,乙方为担保丙方能履行丙方与甲方签订的控制协议项下的义务,而向甲方质押其在丙方的全部乙方股权。
 

 The relevant Parties shall execute all other necessary contracts, agreements or documents, obtain all necessary
government licenses and permits and take all necessary actions to transfer valid ownership of the Optioned Interests to Party A and/or the Designee(s), unencumbered by any security interests, and cause Party A and/or the Designee(s) to become the
registered owner(s) of the Optioned Interests. For the purpose of this Section and this Agreement, “security interests” shall include securities, mortgages, third party’s rights or interests, any stock options, acquisition right,
right of first refusal, right to offset, ownership retention or other security arrangements, but shall be deemed to exclude any security interest created by this Agreement and Party B’s Equity Pledge Agreement. “Party B’s Equity
Pledge Agreement” as used in this Section and this Agreement shall refer to the Equity Pledge Agreement (“Party B’s Equity Pledge Agreement”) executed by and among Party A, Party B and Party C as of the date hereof,
whereby Party B pledges all of its equity interests in Party C to Party A, in order to guarantee Party C’s performance of its obligations under the Control Agreements executed by and between Party C and Party A. 

  
 4 

Call Option Agreement 
 认购期权协议 

	2.	 承诺 

Covenants 
  

	 	2.1	
有关丙方的承诺 

Covenants regarding Party C 
 乙方(作为丙方的股东)和丙方在此承诺: 
 Party B (as the shareholders of Party C) and Party C hereby covenant as
follows: 
  

	 	2.1.1	
未经甲方的事先书面同意,不以任何形式补充、更改或修改丙方

公司章程文件,增加或减少其注册资本,或以其他方式改变其注
 册资本结构; 

Without the prior written consent of Party A, they shall not in any manner supplement, change or amend the articles of association and bylaws
of Party C, increase or decrease its registered capital, or change its structure of registered capital in other manners; 
  

	 	2.1.2	
按照良好的财务和商业标准及惯例,保持其公司的存续,审慎地
 及有效地经营其业务和处理事务; 

They shall maintain Party C’s corporate existence in accordance with good financial and business standards and practices by prudently and
effectively operating its business and handling its affairs; 
  

	 	2.1.3	
未经甲方的事先书面同意,不在本协议签署之日起的任何时间出

售、转让、抵押或以其他方式处置丙方的任何资产、业务或收入

的合法或受益权益,或允许在其上设置任何其他担保权益;
 

 Without the prior written consent of Party A, they shall not at any time following the date hereof, sell,
transfer, mortgage or dispose of in any manner any assets of Party C or legal or beneficial interest in the business or revenues of Party C, or allow the encumbrance thereon of any security interest; 

  
 5 

Call Option Agreement 
 认购期权协议 

	 	2.1.4	
未经甲方的事先书面同意,不得让丙方发生、继承、保证或容许

存在任何债务,但(i)正常或日常业务过程中产生而不是通过借

款方式产生的债务;和(ii)已向甲方披露和得到甲方书面同意的
 债务除外; 

 Without the
prior written consent of Party A, they shall not cause Party C to incur, inherit, guarantee or suffer the existence of any debt, except for (i) debts incurred in the ordinary course of business other than through loans; and (ii) debts
disclosed to Party A for which Party A’s written consent has been obtained; 
  

	 	2.1.5	
一直在正常业务过程中经营所有业务,以保持丙方的资产价值,
 不进行任何足以影响其经营状况和资产价值的作为/不作为; 

 They shall always operate all of
Party C’s businesses during the ordinary course of business to maintain the asset value of Party C and refrain from any action/omission that may affect Party C’s operating status and asset value; 

 

	 	2.1.6	
未经甲方的事先书面同意,不得让丙方签订任何重大合同,但在

正常业务过程中签订的合同除外(就本段而言,如果一份合同的
 总金额超过人民币
100,000元,即被视为重大合同); 

Without the prior written consent of Party A, they shall not cause Party C to execute any major contract, except the contracts in the ordinary
course of business (for purpose of this subsection, a contract with a price exceeding RMB 100,000 shall be deemed a major contract); 
  

	 	2.1.7	
未经甲方的事先书面同意,丙方不得向任何人提供贷款或信贷;
 

 Without the prior written consent of Party A, they shall not cause Party C to provide any person with any loan
or credit; 
  

	 	2.1.8	
应甲方要求,向其提供所有关于丙方的营运和财务状况的资料;
 

 They shall provide Party A with information on Party C’s business operations and financial condition at
Party A’s request; 
  

	 	2.1.9	
如甲方提出要求,丙方应从甲方接受的保险公司处购买和持有有关其资产和业务的保险,该保险的金额和险种应与经营类似业务的公司一致;
 

 If requested by Party A, they shall procure and maintain insurance in respect of Party C’s assets and
business from an insurance carrier acceptable to Party A, at an amount and type of coverage typical for companies that operate similar businesses; 

  
 6 

Call Option Agreement 
 认购期权协议 

	 	2.1.10	
未经甲方的事先书面同意,丙方不得与任何人合并或联合,或对
 任何人进行收购或投资; 

Without the prior written consent of Party A, they shall not cause or permit Party C to merge, consolidate with, acquire or invest in any
entity; 
  

	 	2.1.11	
将发生的或可能发生的与丙方资产、业务或收入有关的诉讼、仲
 裁或行政程序立即通知甲方; 

They shall immediately notify Party A of the occurrence or possible occurrence of any litigation, arbitration or administrative proceedings
relating to Party C’s assets, business or revenue; 
  

	 	2.1.12	
为保持丙方对其全部资产的所有权,签署所有必要或适当的文件,采取所有必要或适当的行动和提出所有必要或适当的控告或对
 所有索偿进行必要和适当的抗辩; 

To maintain the ownership by Party C of all of its assets, they shall execute all necessary or appropriate documents, take all necessary or
appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims; 
  

	 	2.1.13	
未经甲方事先书面同意,不得以任何形式派发股息予各股东,但一经甲方要求,丙方应立即将其所有可分配利润全部立即分配给其各股东;及
 

 Without the prior written consent of Party A, they shall ensure that Party C shall not in any manner distribute
dividends to its shareholders, provided that upon Party A’s written request, Party C shall immediately distribute all distributable profits to its shareholders; and 
  

	 	2.1.14	
根据甲方的要求,委任由其指定的任何人士出任丙方的董事;未
 经甲方事先书面同意,不得更换丙方的董事。 

At the request of Party A, they shall appoint any persons designated by Party A as directors of Party C; without the prior written consent of
Party A, they shall not replace the directors of Party C. 

  
 7 

Call Option Agreement 
 认购期权协议 

	 	2.2	 乙方的承诺

 Covenants of Party B 

乙方承诺: 
 Party B hereby covenants as follows: 

 

	 	2.2.1	
未经甲方的事先书面同意,不出售、转让、抵押或以其他方式处置其拥有的丙方的股权的合法或受益权益,或允许在其上设置任何其他担保权益,但根据乙方股权质押合同在该股权上设置的质押则除外;
 

 Without the prior written consent of Party A, Party B shall not sell, transfer, mortgage or dispose of in any
other manner any legal or beneficial interest in the equity interests in Party C held by Party B, or allow the encumbrance thereon of any security interest, except for the pledge placed on these equity interests in accordance with Party B’s
Equity Pledge Agreement; 
  

	 	2.2.2	
促使丙方股东会和/或董事会不批准在未经甲方的事先书面同意 的情况下,出售、转让、抵押或以其他方式处置任何乙方持有之

丙方的股权的合法权益或受益权,或允许在其上设置任何其他担

保权益,但批准根据乙方股权质押合同在乙方股权上设置的质押
 则除外; 

 Party B shall cause
the shareholders’ meeting and/or the board of directors of Party C not to approve the sale, transfer, mortgage or disposition in any other manner of any legal or beneficial interest in the equity interests in Party C held by Party B, or allow
the encumbrance thereon of any security interest, without the prior written consent of Party A, except for the pledge placed on these equity interests in accordance with Party B’s Equity Pledge Agreement; 

 

	 	2.2.3	
未经甲方的事先书面同意的情况下,对于丙方与任何人合并或联合,或对任何人进行收购或投资,乙方将促成丙方股东会或董事会不予批准;
 

 Party B shall cause the shareholders’ meeting or the board of directors of Party C not to approve the
merger or consolidation with any person, or the acquisition of or investment in any entity, without the prior written consent of Party A; 
  

	 	2.2.4	
将发生的或可能发生的任何关于其所拥有的股权的诉讼、仲裁或行政程序立即通知甲方;
 

 Party B shall immediately notify Party A of the occurrence or possible occurrence of any litigation,
arbitration or administrative proceedings relating to the equity interests in Party C held by Party B; 
  

	 	2.2.5	
促使丙方股东会或董事会表决赞成本协议规定的被购买股权的转让并应甲方之要求采取其他任何行动;
 

 Party B shall cause the shareholders’ meeting or the board of directors of Party C to vote their approval
of the transfer of the Optioned Interests as set forth in this Agreement and to take any and all other actions that may be requested by Party A; 

  
 8 

Call Option Agreement 
 认购期权协议 

	 	2.2.6	
为保持其对股权的所有权,签署所有必要或适当的文件,采取所

有必要或适当的行动和提出所有必要或适当的控告或对所有索偿进行必要和适当的抗辩;
 

 To the extent necessary to maintain Party B’s ownership in Party C, Party B shall execute all necessary or
appropriate documents, take all necessary or appropriate actions and file all necessary or appropriate complaints or raise necessary and appropriate defenses against all claims; 

 

	 	2.2.7	
应甲方的要求,委任由其指定的任何人士出任丙方的董事和
/或
执行董事;未经甲方事先书面同意,不得更换丙方的董事;
 

 Party B shall appoint any designee of Party A as director and/or executive director of Party C, at the request
of Party A; without the prior written consent of Party A, they shall not replace the directors of Party C; 
  

	 	2.2.8	
应甲方的要求,不时向甲方和
/或其指定的个人出具授权委托书,授权甲方和/或其指定的个人行使与丙方有关的股东表决权; 

Party B shall issue such power of attorney as Party A may request from time to time, to authorize Party A and/or the individual designated by
Party A to exercise Party B’s voting rights as a shareholder in Party C; 
  

	 	2.2.9	
经甲方随时要求,应向其指定的代表在任何时间无条件地根据本

协议的股权购买权立即转让其股权,并放弃其对另一现有股东进行其相应股权转让所享有的优先购买权(如有的话);和
 

 At the request of Party A at any time, Party B shall promptly and unconditionally transfer its equity interests
in Party C to Party A’s Designee(s) in accordance with the Equity Interest Purchase Option under this Agreement, and Party B hereby waives its right of first refusal to the respective share transfer by the other existing shareholder of Party C
(if any); and 
  

	 	2.2.10	
严格遵守本协议及乙方、丙方与甲方共同或分别签订的其他合同

的各项规定,切实履行该等合同项下的各项义务,并不进行任何
 足以影响该等合同的有效性和可执行性的作为/不作为。如果乙
方对于本协议项下或本协议各方签署的乙方股权质押合同项下或对甲方和
/或其指定的个人出具的授权委托书中的股权,还留存有任何权利,除非甲方书面指示,否则乙方仍不得行使该权利。
 

 Party B shall strictly abide by the provisions of this Agreement and other contracts jointly or separately
executed by and among Party B, Party C and Party A, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability thereof. If Party B retains any additional rights other
than those rights provided for under this Agreement, Party B’s Equity Pledge Agreement and the powers of attorney issued to Party A and/or the individual designated by Party A, Party B shall not exercise such rights without Party A’s
written direction. 

  
 9 

Call Option Agreement 
 认购期权协议 

各方签署了《股东表决权委托协议》,约定乙方不可撤销地委托甲方或甲方

指定的个人行使其在丙方中享有的表决权。各方在此确认,若甲方在行使委

托表决权后致使乙方违反本协议第
2.1、2.2条中的承诺,则不应视为乙方违
 反本合同约定。

 The Parties signed the Voting Rights Proxy Agreement and agreed that Party B unconditionally entrust Party A or Party A’s
designee to vote on its behalf at the shareholders’ meeting of Party C. The Parties hereby confirms that if Party A’s entrustment causes Party C in violation of Covenants in Articles 2.1, 2.2 of this Agreement, Party B shall not be
regarded as in breach of this Agreement. 
  

	3.	 陈述和保证

 Representations and Warranties 

乙方和丙方特此在本协议签署之日向甲方共同及分别陈述和保证如下:
 
 Party B and Party C hereby represent and warrant to Party A,
jointly and severally, as of the date of this Agreement that: 
  

	 	3.1	
其具有签订和交付本协议和其为一方的、根据本协议为每一次转让被

购买股权而签订的任何股权转让合同(各称为“
转让合同”),并履行
其在本协议和任何转让合同项下的义务的权力和能力。乙方和丙方同

意在甲方行使购买权时,他们将签署与本协议条款一致的转让合同。本

协议和其是一方的各转让合同一旦签署后,构成或将对其构成合法、有

效及具有约束力的义务并可按照其条款对其强制执行;

 They have the authority to execute and deliver this Agreement and any share transfer contracts to which they are
parties concerning the Optioned Interests to be transferred thereunder (each, a “Transfer Contract”), and to perform their obligations under this Agreement and any Transfer Contracts. Party B and Party C agree to enter into Transfer
Contracts consistent with the terms of this Agreement upon Party A’s exercise of the Equity Interest Purchase Option. This Agreement and the Transfer Contracts to which they are parties constitute or will constitute their legal, valid and
binding obligations and shall be enforceable against them in accordance with the provisions thereof; 

  
 10 

Call Option Agreement 
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	 	3.2	
无论是本协议或任何转让合同的签署和交付还是其在本协议或任何转

让合同项下的义务的履行均不会:(i)导致违反任何有关的中国法律;

(ii)与丙方章程或其他组织文件相抵触;(iii)导致违反其是一方或对其

有约束力的任何合同或文件,或构成其是一方或对其有约束力的任何

合同或文件项下的违约;(iv)导致违反有关向任何一方颁发的任何许可或批准的授予和
(或)继续有效的任何条件;或(v)导致向任何一方颁发
的任何许可或批准中止或被撤销或附加条件; 

The execution and delivery of this Agreement or any Transfer Contracts and the obligations under this Agreement or any Transfer Contracts
shall not: (i) cause any violation of any applicable laws of China; (ii) be inconsistent with the articles of association, bylaws or other organizational documents of Party C; (iii) cause the violation of any contracts or instruments
to which they are a party or which are binding on them, or constitute any breach under any contracts or instruments to which they are a party or which are binding on them; (iv) cause any violation of any condition for the grant and/or continued
effectiveness of any licenses or permits issued to either of them; or (v) cause the suspension or revocation of or imposition of additional conditions to any licenses or permits issued to either of them; 

 

	 	3.3	
乙方对其在丙方拥有的股权拥有良好和可出售的所有权,除乙方股权

质押合同外,乙方在上述股权上没有设置任何担保权益;
 

 Party B has a good and merchantable title to the equity interests in Party C he holds. Except for Party
B’s Equity Pledge Agreement, Party B has not placed any security interest on such equity interests; 
  

	 	3.4	
丙方对所有资产拥有良好和可出售的所有权,丙方在上述资产上没有
 设置任何担保权益; 

Party C has a good and merchantable title to all of its assets, and has not placed any security interest on the aforementioned assets; 

 

	 	3.5	
丙方没有任何未偿还债务,除
(i)在其正常的业务过程中发生的债务,
及(ii)已向甲方披露及经甲方书面同意债务除外;
 

 Party C does not have any outstanding debts, except for (i) debt incurred in the ordinary course of
business; and (ii) debts disclosed to Party A for which Party A’s written consent has been obtained. 
  

	 	3.6	
丙方遵守适用于股权、资产的收购的所有法律和法规;和
 

 Party C has complied with all laws and regulations of China applicable to equity or asset acquisitions; and

  

	 	3.7	
目前没有悬而未决的或构成威胁的与股权、丙方资产有关的或与丙方有关的诉讼、仲裁或行政程序。
 

 There are no pending or threatened litigation, arbitration or administrative proceedings relating to the equity
interests in Party C, assets of Party C or Party C. 

  
 11 

Call Option Agreement 
 认购期权协议 

	4.	 生效日 

Effective Date 
  

	 	4.1	
本协议于下述条件全部满足之日起生效:
 

 This Agreement shall become effective upon satisfaction of all the following conditions: 

 

	 	a)	
每一方均已签署了本协议,以及
 

 Each Party has duly executed this Agreement, and 

 

	 	b)	
乙方登记为丙方股东。 

 Party B is registered as the shareholder of the Party C.

  

	 	4.2	
本协议在乙方拥有的全部丙方股权根据本协议的约定依法转让至甲方和
/或被指定人名下后终止。 

This Agreement shall remain effective until all the equity interest owned by Party B in Party C has been legally transferred to Party A or the
Designee(s) in accordance with this Agreement. 
  

	5.	
适用法律与争议解决

 Governing Law and Resolution of Disputes 

 

	 	5.1	 适用法律

 Governing law 

本协议的订立、效力、解释、履行、修改和终止以及争议解决均适用中国正式公布并可公开得到的法律。对中国正式公布并可公开得到的法

律没有规定的事项,将适用国际法律原则和惯例。 
 The execution, effectiveness, construction, performance, amendment and
termination of this Agreement and the resolution of disputes hereunder shall be governed by the formally published and publicly available laws of China. Matters not covered by formally published and publicly available laws of China shall be governed
by international legal principles and practices. 

  
 12 

Call Option Agreement 
 认购期权协议 

	 	5.2	
争议的解决方法 

Methods of Resolution of Disputes 

因解释和履行本协议而发生的任何争议,本协议各方应首先通过友好

协商的方式加以解决。如果在一方向其他方发出要求协商解决的书面
 通知后 30 天之内争议仍然得不到解决,则任何一方均可将有关争议提

交给位于上海的上海国际经济贸易仲裁委员会,由该会按照其仲裁规

则仲裁解决。仲裁应在上海进行,使用之语言为中文。仲裁裁决是终局性的,对各方均有约束力。
 
 In the event of any dispute with respect to the construction and
performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party’s request to the other Parties for
resolution of the dispute through negotiations, either Party may submit the relevant dispute to the Shanghai International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be
conducted in Shanghai, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties. 
  

	6.	 税款、费用

 Taxes and Fees 

根据中国法律因准备和签署本协议和各转让合同以及完成本协议和各转让合同拟定的交易而由该方发生的或对其征收的任何和全部的转让和注册的税、花费和费用,应由丙方承担。
 
 All transfer and registration tax, expenses and fees incurred
thereby or levied thereon in accordance with the laws of China in connection with the preparation and execution of this Agreement and the Transfer Contracts, as well as the consummation of the transactions contemplated under this Agreement and the
Transfer Contracts shall be borne by Party C. 
  

	7.	 通知 

Notices 
  

	 	7.1	
本协议项下要求或发出的所有通知和其他通信应通过专人递送、挂号

邮寄、邮资预付或商业快递服务或传真的方式发到该方下列地址。每一

通知还应再以电子邮件送达。该等通知视为有效送达的日期按如下方
 式确定: 

 All notices and other
communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such Party set
forth below. A confirmation copy of each notice shall also be sent by email. The dates on which notices shall be deemed to have been effectively given shall be determined as follows: 

 

	 	7.1.1	
通知如果是以专人递送、快递服务或挂号邮寄、邮资预付发出的,

则以于设定为通知的地址在签收或拒收之日为有效送达日。
 

 Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed
effectively given on the date of acceptance or refusal at the address specified for notices. 

  
 13 

Call Option Agreement 
 认购期权协议 

	 	7.1.2	
通知如果是以传真发出的,则以成功传送之日为有效送达日(应
 以自动生成的传送确认信息为证)。 

Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an
automatically generated confirmation of transmission). 
  

	 	7.2	
为通知的目的,各方地址如下:
 

 For the purpose of notices, the addresses of the Parties are as follows: 

 

			
	甲方:	  	亘利生物科技(上海)有限公司
		
	Party A:	  	Gracell Bioscience (Shanghai) Co., Ltd.
		
	地址:	  	[***]
		
	Address:	  	[***]
		
	收件人:	  	曹卫
		
	Attn:	  	CAO Wei
		
	电邮:	  	[***]
		
	Email:	  	[***]
		
	乙方:	  	华晓弥
		
	Party B:	  	HUA Xiaomi
		
	地址:	  	[***]
		
	Address:	  	[***]
		
	电邮:	  	
		
	Email:	  	
		
	丙方:	  	亘喜生物科技(上海)有限公司
		
	Party C:	  	Gracell Biotechnologies (Shanghai) Co., Ltd.
		
	地址:	  	[***]
		
	Address:	  	[***]
		
	收件人:	  	曹卫
		
	Attn:	  	CAO Wei
		
	电邮:	  	[***]
		
	Email:	  	[***]

  
 14 

Call Option Agreement 
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	 	7.3	
任何一方变更接收通知的地址或联系人的,应按本条规定给另一方发出通知。
 

 If any Party change its address for notices or its contact person, a notice shall be delivered to the other
Party in accordance with the terms hereof. 
  

	8.	 保密责任

 Confidentiality 

各方承认及确定有关本协议、本协议内容,以及彼此就准备或履行本协议而

交换的任何口头或书面资料均被视为保密信息。各方应当对所有该等保密信

息予以保密,而在未得到另一方书面同意前,不得向任何第三者披露任何保
 密信息,惟下列信息除外:(a)公众人士知悉或将会知悉的任何信息(惟并非由接受保密信息之一方擅自向公众披露);
(b)根据适用法律法规、股票交易规则、或政府部门或法院的命令而所需披露之任何信息;或
(c)由任何一方就本协议所述交易而需向其股东、投资者、法律或财务顾问披露之信息,而该股东、法律或财务顾问亦需遵守与本条款相类似之保密责任。如任何一方工作人员或聘请机构的泄密均视为该方的泄密,需依本协议承担违约责任。无论本协议以任何理由终止,本条款仍然生效。
 
 The Parties acknowledge that the existence and the terms of this
Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such
confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain
(other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities;
or (c) is required to be disclosed by any Party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial
advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential
information by such Party, which Party shall be held liable for breach of this Agreement. This Section shall survive the termination of this Agreement for any reason. 

  
 15 

Call Option Agreement 
 认购期权协议 

	9.	 进一步保证

 Further Warranties 

各方同意迅速签署为执行本协议的各项规定和目的而合理需要的或对其有利的文件,以及为执行本协议的各项规定和目的而采取合理需要的或对其有利的进一步行动。
 
 The Parties agree to promptly execute documents that are
reasonably required for or are conducive to the implementation of the provisions and purposes of this Agreement and take further actions that are reasonably required for or are conducive to the implementation of the provisions and purposes of this
Agreement. 
  

	10.	 其他 

Miscellaneous 
  

	 	10.1	
修订、修改与补充

 Amendment, change and supplement 

对本协议作出修订、修改与补充,必须经每一方签署书面协议。
 
 Any amendment, change and supplement to this Agreement shall
require the execution of a written agreement by all of the Parties. 
  

	 	10.2	 完整合同

 Entire agreement 

除了在本协议签署后所作出的书面修订、补充或修改以外,本协议构

成本协议各方就本协议标的物所达成的完整合同,取代在此之前就本

协议标的物所达成的所有口头或书面的协商、陈述和合同。
 
 Except for the amendments, supplements or changes in writing
executed after the execution of this Agreement, this Agreement shall constitute the entire agreement reached by and among the Parties hereto with respect to the subject matter hereof, and shall supercede all prior oral and written consultations,
representations and contracts reached with respect to the subject matter of this Agreement. 
  

	 	10.3	 标题 

Headings 
 本协议的标题仅为方便阅读而设,不应被用来解释、说明或在其他方
 面影响本协议各项规定的含义。 
 The headings of this Agreement are for convenience only, and shall not be
used to interpret, explain or otherwise affect the meanings of the provisions of this Agreement. 

  
 16 

Call Option Agreement 
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	 	10.4	 语言 

Language 
 本协议以中文和英文书就,一式三份,甲乙丙三方各持一份,具有同

等效力;中英文版本如有冲突,应以中文版为准。 
 This Agreement is written in both Chinese and English language in three
copies, each Party having one copy with equal legal validity; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail. 

 

	 	10.5	 可分割性

 Severability 

如果本协议有任何一条或多条规定根据任何法律或法规在任何方面被裁定为无效、不合法或不可执行,本协议其余规定的有效性、合法

性或可执行性不应因此在任何方面受到影响或损害。各方应通过诚意

磋商,争取以法律许可以及各方期望的最大限度内有效的规定取代那

些无效、不合法或不可执行的规定,而该等有效的规定所产生的经济

效果应尽可能与那些无效、不合法或不能强制执行的规定所产生的经济效果相似。
 
 In the event that one or several of the provisions of this
Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any
respect. The Parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect
of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions. 
  

	 	10.6	 继任者 

Successors 
 本协议对各方各自的继任者和各方所允许的受让方应具有约束力并对其有利。
 
 This Agreement shall be binding on and shall inure to the
interest of the respective successors of the Parties and the permitted assigns of such Parties. 

  
 17 

Call Option Agreement 
 认购期权协议 

	 	10.7	 弃权 

Waivers 
 任何一方可以对本协议的条款和条件作出弃权,但必须经书面作出并

经各方签字。一方在某种情况下就其他方的违约所作的弃权不应被视

为该方在其他情况下就类似的违约已经对其他方作出弃权。
 
 Any Party may waive the terms and conditions of this Agreement,
provided that such a waiver must be provided in writing and shall require the signatures of the Parties. No waiver by any Party in certain circumstances with respect to a breach by other Parties shall operate as a waiver by such a Party with respect
to any similar breach in other circumstances. 
  

	 	10.8	 继续有效

 Survival 
  

	 	10.8.1	
合同期满或提前终止前因本协议而发生的或到期的任何义务在本协议期满或提前终止后继续有效。
 

 Any obligations that occur or that are due as a result of this Agreement upon the expiration or early
termination of this Agreement shall survive the expiration or early termination thereof. 
  

	 	10.8.2	 本协议第 5、7、8 条和本第 10.8 条的规定在本协议终止后继续 有效。

 The provisions of Sections 5, 7, 8 and this Section 10.8 shall survive the termination of this Agreement. 

  
 18 

Call Option Agreement 
 认购期权协议 

	 	10.9	 补偿 

Indemnification 
  

	 	10.9.1	
各方同意并确认,如一方(以下称“违约方”)实质性地违反

本协议项下所作的任何一项约定,或实质性地未履行本协议项

下的任何一项义务,即构成本协议项下的违约(以下称“违约”),守约方有权要求违约方在合理期限内补正或采取补救

措施。如违约方在合理期限内或在守约方书面通知违约方并提

出补正要求后十(10)天内仍未补正或采取补救措施的,则守

约方有权自行决定选择以下的任一种违约救济方式:(1
)终止
本协议,并要求违约方给予全部的损害赔偿;(2)要求强制履
行违约方在本协议项下的义务,并要求违约方给予全部的损害

赔偿;或者(3)按照乙方股权质押合同的约定以质押股权折价,

拍卖或者变卖,并以折价、拍卖或者变卖的价款优先受偿,并
 要求违约方承担由此造成的全部损失; 

The Parties agree and confirm that, if any Party (the “Defaulting Party”) is in material breach of any provisions herein or
fails to perform any obligations hereunder in any material respect, such breach or failure shall constitute a default under this Agreement (the “Default”), which shall entitle non-defaulting
Party to request Defaulting Party to rectify or remedy such Default with a reasonable period of time. If the Defaulting Party fails to rectify or remedy such Default within the reasonable period of time or within ten (10) days of non-defaulting Party’s written notice requesting for such rectification or remedy, the non-defaulting Party shall be entitled to elect any one of the following remedial
actions: (a) to terminate this Agreement and request the Defaulting Party to fully compensate its losses and damages; (b) to request the specific performance by the Defaulting Party of its obligations hereunder and request the Defaulting
Party to fully compensate non-defaulting Party’s losses and damages; or (c) to enforce the pledge under the Party B’s Equity Pledge Agreement by selling, auctioning or exchanging the pledged
equity thereunder and receive payment in priority from the proceeds derived therefrom, and in the meantime, request the Defaulting Party to fully compensate non-defaulting Party for any losses as a result
thereof. 
  

	 	10.9.2	
本协议规定的权利和救济是累积的,并不排斥法律规定的其他
 权利或者救济; 

The rights and remedies provided for in this Agreement shall be accumulative and shall not affect any other rights and remedies stipulated at
law. 
 [以下为签字页] 
 [SIGNATURE PAGE FOLLOWS] 

  
 19 

Call Option Agreement 
 认购期权协议 

有鉴于此,各方已使得经其授权的代表于文首所述日期签署了本认购期权协议,以昭信守。
 
 IN WITNESS WHEREOF, the Parties have caused their authorized
representatives to execute this Call Option Agreement as of the date first above written. 
  

			
	甲方:
亘利生物科技(上海)有限公司
	
	Party A: Gracell Bioscience (Shanghai) Co., Ltd.
	
	签字:
		
	By:	 	
                     
                               

	姓名:	 	曹卫
	Name:	 	CAO, Wei
	职务:	 	法定代表人
	Title:	 	Legal Representative

  
 Signature Pages of Call
Option Agreement 

认购期权协议签署页 

有鉴于此,各方已使得经其授权的代表于文首所述日期签署了本认购期权协议,以昭信守。
 
 IN WITNESS WHEREOF, the Parties have caused their authorized
representatives to execute this Call Option Agreement as of the date first above written. 
  

			
	乙方: 华晓弥
	
	Party B: HUA, Xiaomi
	
	签字:
		
	By:	 	
                     
                                   

  

  
 Signature Pages of Call
Option Agreement 

认购期权协议签署页 

有鉴于此,各方已使得经其授权的代表于文首所述日期签署了本认购期权协议,以昭信守。
 
 IN WITNESS WHEREOF, the Parties have caused their authorized
representatives to execute this Call Option Agreement as of the date first above written. 
  

			
	丙方:
亘喜生物科技(上海)有限公司
	
	Party C: Gracell Biotechnologies (Shanghai) Co., Ltd.
	
	签字:
		
	By:	 	
                     
                                   

	姓名:	 	曹卫
	Name:	 	CAO, Wei
	职务:	 	法定代表人
	Title:	 	Legal Representative

  
 Signature Pages of Call
Option Agreement 

认购期权协议签署页Exhibit 10.11

 

MEMBERSHIP
UNIT PURCHASE AGREEMENT

 

THIS MEMBERSHIP UNIT
PURCHASE AGREEMENT (this “Agreement”) is entered into as of the 4th day of December, 2020, between Steven L.
Sager (“Sager”), an individual and resident of Colorado, EJW Limited Partnership, a Colorado limited partnership,
Gregory W. Timmons (“Timmons”), an individual and resident of Colorado, Timothy D. Martin (“Martin”),
an individual and resident of Utah, What’s Next Investments, LLC, a Colorado limited liability company, John C. Hellyer,
an individual and resident of Colorado, Darrell C. Wilson, III, an individual and resident of Colorado and Thomas D. St. Clair,
an individual and resident of Colorado, (each a “Seller” and collectively the “Sellers”),
and DecisionPoint Systems, Inc., a Delaware corporation (“Buyer”).

 

RECITALS:

 

A. 
Sellers directly own, in the aggregate, all of the issued and outstanding membership units (the “Membership Units”),
of ExtenData Solutions, LLC, a limited liability company organized under the laws of the State of Colorado (“Company”);

 

B. 
Upon the terms and subject to the conditions set forth in this Agreement, Sellers desire to sell to Buyer, and Buyer desires
to acquire from Sellers, all of the Membership Units; and

 

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

 

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

 

ARTICLE 1

Definitions

 

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

 

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

 

ARTICLE 2

 

Purchase and Sale

 

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

 

     

     

    

 

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

 

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

 

(i) 
Four Million Two Hundred Fifty Thousand Dollars ($4,250,000);

 

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

 

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

 

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

 

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

 

(b) A targeted Seven Hundred Fifty Thousand
Dollar ($750,000) earnout, excluding any adjustments for the Working Capital Target, payable over two (2) years at Three
Hundred Seventy-five Thousand Dollars ($375,000) each, structured as follows:

 

(i) Year
1 Earnout: The parties acknowledge and agree that Company’s gross revenue goal is $14,000,000 for the calendar year
2021 (“First Earnout Period”), which if met will result in the Year 1 Earnout for gross revenue of
$187,500, and Company’s gross profit goal is $4,000,000 (28.5% gross profit) for the First Earnout Period, which if met
will result in the Year 1 Earnout for gross profit of $187,500. Subject to Schedule 2.2, attached hereto and made a part
hereof, if (i) Company’s gross revenue for the First Earnout Period should fall between $13,300,000 and $15,400,000,
the Year 1 Earnout for gross revenue shall be the earnout amount corresponding to the met or exceeded gross revenue milestone
on Schedule 2.2, and (ii) Company’s gross profit for the First Earnout Period should fall between $3,800,000 and
$4,399,000, the Year 1 Earnout for gross profit shall be the earnout amount corresponding to the met or exceeded gross profit
milestone on Schedule 2.2. In no event shall a (i) Year 1 Earnout for gross revenue be payable if Company’s gross
revenue for the First Earnout Period is less than $13,300,000, and/or (ii) Year 1 Earnout for gross profit be payable if
Company’s gross profit for the First Earnout Period is less than $3,800,000. In no event shall either the Year 1
Earnout for gross revenue or gross profit exceed $225,000, respectively. The Year 1 Earnout for gross revenue and Year 1
Earnout for gross profit may hereinafter be collectively referred to as the “Year 1 Earnout Payment.” For
purposes hereof, gross revenue and gross profit during any Earnout period hereunder, shall be determined in accordance with
GAAP and otherwise based upon the Company continuing to operate in the Ordinary Course of Business, consistent with its past
pattern and practice, with respect to operations as maintained by Company prior to Closing (except to the extent that the
operations of Company may be consolidated with Buyer after Closing, but separate and apart for accounting purposes from the
Buyer’s consolidated operations after Closing), and further provided that gross revenue and gross profit for Earnout
purposes shall not take into account any (a) operating results of Buyer prior to Closing, or (b) the impact after Closing of
any (x) acquisitions of or investments in (whether in respect of assets or equity interests) of
any other Person or business by the Company or Buyer, or (y) any sales, disposals or divestments of Subsidiaries or lines of
business of the Buyer or the Company; provided, however, that notwithstanding GAAP, for purposes of calculating gross
revenue, hardware warranty sales shall be grossed-up when recorded; and

 

    2

     

    

 

(ii) Year 2 Earnout: The parties
acknowledge and agree that Company’s gross revenue goal is $14,700,000 for the calendar year 2022 (“Second
Earnout Period”), which if met will result in the Year 2 Earnout for gross revenue of $187,500, and Company’s
gross profit goal is $4,200,500 (28.5% gross profit) for the Second Earnout Period, which if met will result in the Year 2
Earnout for gross profit of $187,500. Subject to Schedule 2.2, if (i) Company’s gross revenue for the Second Earnout
Period should fall between $13,965,000 and $16,870,000, the Year 2 Earnout for gross revenue shall be the earnout amount
corresponding to the met or exceeded gross revenue milestone on Schedule 2.2, and (ii) Company’s gross profit for the
Second Earnout Period should fall between $3,990,000 and $4,820,000, the Year 2 Earnout for gross profit shall be the earnout
amount corresponding to the met or exceeded gross profit milestone on Schedule 2.2. In no event shall a (i) Year 2 Earnout
for gross revenue be payable if Company’s gross revenue for the Second Earnout Period is less than $13,965,000, and/or
(ii) Year 2 Earnout for gross profit be payable if Company’s gross profit for the Second Earnout Period is less than
$3,990,000. In no event shall either the Year 2 Earnout for gross revenue or gross profit exceed $318,750, respectively. The
Year 2 Earnout for gross revenue and Year 2 Earnout for gross profit may hereinafter be collectively referred to as the
“Year 2 Earnout Payment.” In addition to the foregoing, if Company’s (i) gross revenue for the
Second Earnout Period should fall between $14,800,000 and $15,400,000, the Year 1 Earnout make-up for revenue shall be the
make-up amount corresponding to the met or exceeded make-up gross revenue milestones set forth on Schedule 2.2, and (ii)
gross profit for the Second Earnout Period should fall between $4,228,500 and $4,399,500, the Year 1 Earnout make-up for
gross profit shall be the make-up amount corresponding to the met or exceeded make-up gross profit milestones set forth on
Schedule 2.2.

 

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

 

    3

     

    

 

2.4 Post-Closing
Adjustment.

 

2.4.1 Adjustment Statement
Preparation. Within ninety (90) days after the Closing Date, Buyer shall prepare and deliver to Sellers’ Representative
an adjustment statement setting forth Buyer’s written, good faith determination and calculation of the amount of the Closing
Indebtedness, the Closing Working Capital, the Transaction Bonuses and the Selling Expenses, respectively (the “Preliminary
Adjustment Statement”), and, based on the Closing Indebtedness, the Closing Working Capital, the Transaction Bonuses
and the Selling Expenses as derived therefrom, Buyer’s written, good faith determination and calculation of the Cash Purchase
Price and the adjustment necessary to reconcile the Estimated Cash Purchase Price to the Cash Purchase Price (the “Preliminary
Post-Closing Adjustment”). The Preliminary Adjustment Statement and the Final Adjustment Statement shall be prepared
consistent with the definitions of Closing Indebtedness, Closing Working Capital, Transaction Bonuses and Selling Expenses and
in a manner consistent with, and using the same accounting policies, judgments, classifications, estimations, practices, procedures
and methodologies (including judgments as to loss and gain contingencies and materiality determinations) as used in the preparation
of, the Most Recent Financial Statements, including the Accounting Policies, except that the Preliminary Adjustment Statement
and the Final Adjustment Statement shall only reflect those items necessary to calculate the Closing Indebtedness, the Closing
Working Capital, the Transaction Bonuses and the Selling Expenses. In preparing the Preliminary Adjustment Statement: (a) any and
all effects on the assets or liabilities of the Company of any financing or refinancing arrangements entered into by Buyer (or
its Affiliates) at any time on or after the Closing Date shall be entirely disregarded; (b) it shall be assumed that the Company
and its lines of business shall be continued as a going concern; and (c) there shall not be taken into account any of the plans,
transactions or changes that Buyer intends to initiate or make or cause to be initiated or made after the Closing Date with respect
to the Company or its business or assets, or any facts or circumstances that are unique or particular to Buyer or any assets or
liabilities of Buyer, or any obligation for the payment of the Cash Purchase Price hereunder. Notwithstanding anything to the contrary
herein contained, the parties agree that the Preliminary Adjustment Statement and Preliminary Post-Closing Adjustment shall include
a One Hundred Forty-four Thousand Dollar ($144,000) credit by Buyer to Sellers to the Closing Working Capital calculation (“Working
Capital Credit”). The parties agree that the Working Capital Credit shall be subject to offset by any amount by which the
Estimated Cash Purchase Price exceeds the Cash Purchase Price pursuant to the Preliminary Adjustment Statement or Final Adjustment
Statement.

 

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

 

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

 

    4

     

    

 

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

 

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

 

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

 

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

 

2.4.5 Adjustment of Cash Purchase Price.

 

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

 

(b) 
If the Cash Purchase Price, as finally determined in accordance with this Section 2.4, is less than the Estimated
Cash Purchase Price following the application of an offset of the Working Capital Credit pursuant to Section 2.4.1 above, then
Buyer and Sellers’ Representative shall deliver joint written instructions to the Escrow Agent authorizing and instructing
the Escrow Agent to release the amount of such deficiency from the Escrow Account to Buyer; provided, however, that if the
amount of such deficiency exceeds the Escrow Amount, the Sellers shall directly pay or cause to be paid to Buyer an amount in cash
equal to such excess.

 

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

 

    5

     

    

 

ARTICLE 3

 

Representations and Warranties Concerning
the Transaction

 

Each Seller, for himself
or itself individually and not jointly, represents and warrants to Buyer as follows:

 

 3.1 Authority; Capacity and Representation.

 

(a) 
Each Seller possesses all requisite legal right, power, authority and capacity to execute, deliver and perform this Agreement,
and each other agreement, instrument and document to be executed and delivered by the Sellers pursuant hereto (collectively, the
“Seller Ancillary Agreements”), and to consummate the transactions contemplated herein and therein. The execution,
delivery and performance by the Sellers of this Agreement and the Seller Ancillary Agreements and the consummation by the Sellers
of the transactions contemplated hereby and thereby have been duly and validly authorized on the part of the Sellers. If any Seller
is not a natural person, such Seller is duly organized, validly existing, and in good standing under the Laws of its jurisdiction
of formation.

 

(b) 
The copies of each of the Sellers’ Organizational Documents which have been furnished to Buyer reflect all amendments
made thereto at any time prior to the date of this Agreement and are true, complete and correct.

 

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

 

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

 

3.4 Noncontravention.

 

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

 

    6

     

    

 

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

 

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

 

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

 

 3.7 Litigation.

 

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

 

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

 

    7

     

    

 

ARTICLE 4

 

Representations and Warranties Concerning
the Company

 

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

 

 4.1 Organization and Good Standing; Authority;
Enforceability.

 

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

 

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

 

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

 

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

 

    8

     

    

 

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

 

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

 

4.4 Noncontravention.

 

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

 

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

 

    9

     

    

 

 4.5 Financial Statements.

 

(a) 
The Company has made available to Buyer copies of (i) the audited balance sheet and profit and loss statements of Company
as of and for the fiscal year ended December 31, 2019 (for which Haskell & White is expected to issue after Closing a final
audit letter and complete, audited financial statements, including footnotes) (the “Audited Financial Statements”),
copies of which are attached hereto as Schedule 4.5(a) and made a part hereof, and (ii) the unaudited balance sheet and income
statements of the Company as of and for the nine (9) month period ended September 30, 2020 (the “Most Recent Financial
Statements,” and together with the Audited Financial Statements, the “Financial Statements”). Except
as set forth in Section 4.5(a) of the Disclosure Schedule, the Financial Statements have been prepared in accordance with GAAP,
and present fairly, in all material respects, the financial position of the Company as of the dates indicated and the results of
operations for the periods then ended, except with respect to the Most Recent Financial Statements for (i) normal year-end adjustments
and (ii) the absence of disclosures normally made in footnotes. The balance sheet as of September 30, 2020 is referred to herein
as the “Acquisition Balance Sheet.”

 

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

 

4.6 Absence of Certain Changes or Events.
Except as set forth in Section 4.6 of the Disclosure Schedule, since June 30, 2020:

 

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

 

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

 

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

 

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

 

    10

     

    

 

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

 

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

 

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

 

(h) 
the Company has not amended, modified or terminated any existing Material Contract (other than a termination of a Material
Contract as a result of the expiration of the term of such Material Contract);

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    11

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    12

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    13

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    14

     

    

 

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

 

4.11 Real and Personal Properties.

 

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

 

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

 

    15

     

    

 

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

 

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

 

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

 

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

 

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

 

    16

     

    

 

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

 

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

 

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

 

4.12 Intellectual Properties.

 

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

 

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

 

(c) 
The Company solely and exclusively owns all right, title and interest in and to, or has a valid and enforceable right or
license to use pursuant to a license set forth on Section 4.12(b) of the Disclosure Schedule that is owned by a third party,
subject to the Enforceability Exceptions, free and clear of all Liens, all of the Intellectual Property necessary for or used in
the operation of the business as currently conduct and as presently proposed to be conducted. All Company Intellectual Property
is valid, enforceable and subsisting. All Company Intellectual Property is unexpired and subsisting and valid and enforceable.
The Company has taken reasonable measures, consistent with normal industry practices, to maintain and protect the confidentiality
of all trade secrets and other confidential information of the Company and its business. All Company Intellectual Property complies
with all applicable Laws (including: payment of filing, examination and maintenance fees; proofs of working or use; post registration
filing of affidavits of use; and incontestability and renewal applications) and is not subject to any outstanding consent, settlement,
decree, order, injunction, judgment, ruling, or charge restricting the use thereof

 

    17

     

    

 

(d) 
 With
respect to each license, sublicense, agreement, or permission held by Company permitting use of the material Intellectual Property
of any other Person: (i) the license, sublicense, agreement, or permission covering the item is legal, valid, binding, enforceable
against Company and against each other party thereto, and in full force and effect; (ii) the Company is not, and no other party
thereto is, in breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default
or permit termination, modification, or acceleration thereunder; (iii) no party to the license, sublicense, agreement, or permission
has repudiated any material provision thereof; and (iv) no loss or expiration of the item is pending, reasonably foreseeable (and
not as a result of any act or omission by the Sellers, including without limitation, a failure by the Company to pay any required
maintenance fees), or threatened.

 

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

 

(f) 
All past and present employees and independent contractors of the Company that were involved in the creation of Intellectual
Property for the Company have entered into agreements pursuant to which such employee or independent contractor agrees to protect
the confidential information of the Company and assign to the Company all Intellectual Property developed by such employee or independent
contractor in the course of his, her or its relationship with the Company, without further consideration or any restrictions or
obligations on the use or ownership of such Intellectual Property whatsoever.

 

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

 

    18

     

    

 

(h) 
To the Sellers’ and Company’s Knowledge, the Company is in compliance in all material respects with (i) all
applicable data protection or privacy Laws governing the collection or use of personal information and (ii) any privacy policies
or related policies, programs or other notices that concern such the Company’s collection or use of personal information.
In the past five (5) years there have not been complaints, notices to, audits, proceedings or investigations conducted or claims
asserted by any other Person (including any Governmental Authority), or, to the Sellers’ and Company’s Knowledge, any
incidents of data security breaches, regarding the collection or use of personal information in connection with the business of
the Company, and, to the Sellers’ and Company’s Knowledge, no such claim has been Threatened or pending.

 

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

 

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

 

(a) 
Contracts or group of related Contracts which involve commitments to make capital expenditures or which provide for the
purchase of assets, goods or services by the Company from any one Person in excess of Fifty Thousand Dollars ($50,000) in any consecutive
twelve (12) month period;

 

(b) 
Contracts or group of related Contracts which provide for the sale of goods or services by the Company in excess of Fifty
Thousand Dollars ($50,000) in any consecutive twelve (12) month period;

 

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

 

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

 

    19

     

    

 

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

 

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

 

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

 

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

 

(i) 
Contracts or group of related Contracts which involve commitments to make capital expenditures by the Company from any one Person
in excess of Fifty Thousand Dollars ($50,000) in any consecutive twelve (12) month period and which are not terminable by the
Company upon thirty (30) days or less advance notice; and

 

(j) 
Contracts under which the Company has made advances or loans to any other Person, other than employee loans in the Ordinary Course
of Business.

 

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

 

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

 

    20

     

    

 

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

 

4.16
Environmental Matters.

 

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

 

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

 

(c) 
Since January 1, 2013, and to the Sellers’ and Company’s Knowledge, at any time prior to January 1, 2013, the Company
has not owned, operated or leased any real property other than the Leased Real Property.

 

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

 

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

 

4.18
Material Customers and Vendors. Section 4.18 of the Disclosure Schedule sets forth a listing of the top twenty (20)
customers of the Company based on the dollar amount of sales to such customers (the “Material Customers”) and
the top twenty (20) vendors of the Company based on the dollar amount of purchases from such vendors (the “Material Vendors”),
in each case for the twelve (12) month period ended June 30, 2020. Except as set forth in Section 4.18 of the Disclosure Schedule,
since the date of the Acquisition Balance Sheet, none of the Material Customers or Material Vendors have delivered to the Company
any written notice which (a) in the case of any Material Customer, materially adversely changed its payment or pricing terms or
its current agreements, programs or commitments with the Company or (b) in the case of any Material Vendor, materially decreased
its commitment to the Company. The terms under which each Material Vendor supplies materials, products or services to the Company
are at market rates and are the result of arm’s length transactions. There are no material unresolved disputes between the
Company, Sellers, or any of their respective Affiliates and any Material Vendor.

 

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

 

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4.20
Inventories. All of the Company’s inventory reflected on the Acquisition Balance Sheet consists of raw materials
and supplies, manufactured and processed parts, work in process, and finished goods. All of the Company’s inventory is merchantable
and fit for the purpose for which it was procured or manufactured, and is not damaged, defective or obsolete, subject only to
the reserve set forth on Section 4.20 of the Disclosure Schedule. Other than as set forth on Section 4.20 of the Disclosure
Schedule, none of the inventory has been held by the Company for a period of longer than twelve (12) months nor is held at
levels in excess of a one year supply. The finished goods included in inventory are in good condition and of a quality and quantity
that are saleable in the Ordinary Course of Business at a level sufficient to maintain the requirements of the business of the
Company and to the extent manufactured for a specific customer under a specific contract have been built to agreed specifications.
Section 4.20 of the Disclosure Schedule sets forth each location at which the Company’s inventory is maintained.
None of the Company’s inventory has been consigned (that is, delivered but not sold or sold with an unlimited right of return)
to any Person. The Company’s inventory is adequate for the present needs of the business of the Company consistent with
past practices and is fairly reflected on the books and records of the Company. Since December 31, 2018, the Company has not sold,
used or otherwise transferred any portion of the inventory except in the Ordinary Course of Business to a bona fide purchaser.

 

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

 

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

 

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

 

    23

     

    

 

4.24
International Trade & Anti-Corruption Matters.

 

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

 

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

 

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

 

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

 

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

 

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

 

4.28 No
Additional Representations. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS ARTICLE 4 (AS MODIFIED BY THE
DISCLOSURE SCHEDULE) AND ANY COMPANY ANCILLARY AGREEMENTS, THE SELLERS EXPRESSLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES
OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO THE CONDITION, VALUE OR QUALITY OF THE COMPANY OR THE COMPANY’S
ASSETS, AND THE SELLERS SPECIFICALLY DISCLAIM ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, USAGE, SUITABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE COMPANY’S ASSETS, OR AS TO THE WORKMANSHIP THEREOF, OR THE
ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT, IT BEING UNDERSTOOD THAT SUCH SUBJECT ASSETS ARE BEING ACQUIRED
“AS IS, WHERE IS” ON THE CLOSING DATE, AND IN THEIR PRESENT CONDITION. NO SELLER MAKES OR HAS MADE ANY
REPRESENTATIONS OR WARRANTIES TO BUYER REGARDING ANY PROJECTION OR FORECAST REGARDING FUTURE RESULTS OR ACTIVITIES OR THE
PROBABLE SUCCESS OR PROFITABILITY OF THE COMPANY.

 

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ARTICLE
5

 

Representations
and Warranties of Buyer

 

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

 

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

 

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

 

5.3
Noncontravention.

 

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

 

    25

     

    

 

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

 

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

 

5.5 Compliance
with Security Laws. Buyer is acquiring the Membership Units for its own account with the present intention of
holding them for investment purposes and not with a view to public distribution of the Membership Units in violation of
applicable federal, state or foreign securities laws.

 

5.6 Independent
Investigation.

 

(a) 
In making the decision to enter into this Agreement and to consummate the transactions contemplated hereby, other than reliance
on the representations, warranties, covenants and obligations of Sellers expressly set forth in this Agreement and in the transaction
documents, Buyer has relied solely on its own independent investigation, analysis and evaluation of the Business (including Buyer’s
own estimate and appraisal of the value of the Membership Units and the financial condition, operations and prospects of the Business).
Buyer confirms to Sellers that Buyer is sophisticated and knowledgeable in the Business and is capable of evaluating the matters
set forth above.

 

(b) 
In connection with Buyer’s investigation of the Business, Buyer has received from or on behalf of Seller certain projections,
including projected statements of income from operations of the Business and certain business plan information for future periods.
Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates, projections and other forecasts
and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts),
and that Buyer shall not have any claim against Sellers with respect thereto. Accordingly, Sellers do not make any representations
or warranties whatsoever with respect to such estimates, projections and other forecasts and plans (including the reasonableness
of the assumptions underlying such estimates, projections and forecasts). Without limiting the generality of the foregoing, other
than as set forth in this Agreement and in the transaction documents, Sellers have not made, and shall not be deemed to have made,
any representations or warranties in any information, document or material made available to Buyer or its Affiliates or representatives
in certain physical or online “data rooms,” information memoranda, management presentations or any other form in connection
with the transactions contemplated by this Agreement.

 

5.7 Investment
Experience. Buyer has such knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of Buyer’s purchase of the Membership Units. Buyer confirms that it can bear the economic risk of its
investment in the Membership Units, has been furnished the materials relating to Buyer’s purchase of the
Membership Units which it has requested, and Sellers have provided Buyer with the opportunity to ask questions of the
officers and management employees of the Business and to acquire additional information about the business and financial
condition of the Company.

 

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ARTICLE
6

 

The Closing

 

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

 

ARTICLE
7

 

Closing
Deliveries and Conditions to Closing

 

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

 

(a) 
all certificates for the Membership Units, duly endorsed for transfer or accompanied by a duly executed unit power, or other appropriate
instrument of assignment and transfer;

 

(b) 
the written resignation, effective as of the Closing, of the managers and non-employee officers of the Company and of the Sellers
in their respective capacities as managers, officers, or employees of the Company, as applicable;

 

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

 

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

 

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

 

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(f)  a
certificate of good standing of the Company as of the most recent practicable date from the Secretary of State of the State
of Colorado;

 

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

 

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

 

(i) 
a counterpart signature page to the Escrow Agreement, duly executed by Seller;

 

(j) 
counterpart signature pages to the Employment Agreements, duly executed by Sager, Timmons and Martin;

 

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

 

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

 

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

 

(a) 
the Closing Cash Payment to the Sellers’ Account and the Escrow Amount to the Escrow Agent, in each case in accordance with
Section 2.3;

 

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

 

(c) 
a certificate of good standing as of the most recent practicable date from the Secretary of State where Buyer is incorporated
or organized;

 

(d) 
a counterpart to the Escrow Agreement, duly executed by Buyer and the Escrow Agent; and

 

(e) 
counterpart signature pages to the Employment Agreements for Sager, Timmons and Martin, duly executed by the Company.

 

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

 

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7.3 Conditions to
Obligations of Buyer. The obligations of Buyer to consummate the
transactions contemplated by this Agreement are subject to the satisfaction (or, if permitted by Law, waiver by Buyer) of the
following further conditions:

 

(a) 
the representations and warranties set forth in Article 3 and Article 4 hereof shall be true and correct in all
respects as of the Closing Date as though made on and as of the Closing Date, except (i) to the extent such representations and
warranties are made on and as of a specified date, in which case the same shall continue on the Closing Date to be true and current
as of such specified date and (ii) to the extent that the facts, events and circumstances that cause such representations and
warranties to not be true and correct as of such dates have not had, and would not reasonably be expected to have, a Material
Adverse Effect;

 

(b) 
Sellers and the Company shall have performed and complied in all material respects with all covenants required to be performed
or complied with by Sellers and the Company under this Agreement on or prior to the Closing Date;

 

(c) 
since the date of this Agreement, no change, event or circumstance shall have occurred that has had, and continues to have, a
Material Adverse Effect;

 

(d) 
prior to or at the Closing, Sellers shall have delivered a certificate of each individual Seller or authorized officer of Seller,
as applicable, dated as of the Closing Date, to the effect that the conditions specified in Sections 7.3(a), (b) and (c)
are satisfied;

 

(e) 
the Escrow Agreement shall have been executed by Sellers’ Representative and the Escrow Agent; and

 

(f) 
Company shall have obtained and delivered to Buyer the written consents and notices (or waivers with respect thereto) set forth
in the Disclosure Schedule relative to Article 4, in a form satisfactory to Buyer (all such consents, notices and waivers
shall be in full force and effect on and following the Closing) and Buyer shall have received the consent of its existing lender
and such consent shall be in full force and effect on and following the Closing Date.

 

7.4 Conditions
to Obligations of Sellers. The obligations of Sellers and the Company to consummate the transactions contemplated by this
Agreement are subject to the satisfaction (or, if permitted by Law, waiver by Sellers and the Company) of the following
further conditions:

 

(a) 
the representations and warranties of Buyer set forth in Article 5 hereof shall be true and correct in all material respects
as of the Closing Date as though made on and as of the Closing Date, except to the extent such representations and warranties
are made on and as of a specified date, in which case, the same shall continue on the Closing Date and be true and correct in
all material respects as of such specified date;

 

(b) 
Buyer shall have performed and complied in all material respects with all covenants required to be performed or complied with
by it under this Agreement on or prior to the Closing Date;

 

(c) 
prior to or at the Closing, Buyer shall have delivered the following closing documents:

 

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(i) 
a
certificate of an authorized officer of Buyer, dated as of the Closing Date, to the effect that the conditions specified in Sections
7.4(a) and (b) have been satisfied; and

 

(ii) 
a certified copy of the resolutions of Buyer’s board of directors (or other governing body), in each case authorizing
the execution and delivery of the Agreement and the consummation of the transactions contemplated hereby; and

 

(d) the Escrow Agreement shall have been duly
executed and delivered by Buyer and the Escrow Agent.

 

ARTICLE 8

 

Covenants and Agreements

 

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

 

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

 

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

 

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

 

 8.5 Releases.

 

8.5.1 Seller Release.
As of the Closing Date, each Seller, on behalf of himself or itself, and each of their respective successors and assigns (each,
a “Seller Releasor”), and in his capacity as a member, officer, manager, or employee of the Company, hereby
releases, acquits and forever discharges, to the fullest extent permitted by Law, the Company and each of its current officers,
managers, members, Affiliates and employees (each, a “Company Releasee”) of, from and against any and all actions,
causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and description whatsoever,
which such Seller Releasor ever had, now has or may have on or by reason of any matter, cause or thing whatsoever arising prior
to the Closing; provided, however, that this release does not extend to (i) any claim to enforce Sellers’ rights under
this Agreement, any Seller Ancillary Agreement or any Company Ancillary Agreement, (ii) if such Seller is or was a manager and/or
officer of the Company, any rights of such Seller to indemnification under the Company’s Organizational Documents, or (iii)
any rights or claims of Seller under or with respect to any Plan in accordance with the terms of such Plan. Sellers agree not to,
and agree to cause its respective Affiliates, and each of their respective successors and assigns, not to, assert any such claims
against the Company Releasees.

 

8.5.2 Buyer Release.
Effective upon the Closing, Buyer, on behalf of itself and the Company and each of their respective stockholders, directors, employees,
successors and assigns (each, a “Buyer Releasor”), hereby releases, acquits and forever discharges, to the fullest
extent permitted by Law, the Sellers and, to the extent applicable, their respective Affiliates, agents, attorneys, successors
and assigns in his, her or its capacity as a stockholder, option holder or warrant holder of the Company, of, from and against
any and all actions, causes of action, claims, demands, damages, judgments, debts, dues and suits of every kind, nature and description
whatsoever, which such Buyer Releasor ever had, now has or may have on or by reason of any matter, cause or thing whatsoever arising
prior to the Closing; provided, however, that this release does not constitute a release by the Company or any of the Buyer
Releasors of any right to enforce its, his or her rights under this Agreement, any Buyer Ancillary Agreement, Company Ancillary
Agreement, or any Employment Agreement, any claim arising from or relating to such agreements, bringing any claim arising from
the transactions contemplated by this Agreement, or any other right or claim that shall arise from events following the Closing.

 

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 8.6 Employee and Employee Benefit Matters.

 

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

 

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

 

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

 

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

 

 8.7 Non-Solicitation and Non-Competition.

 

(a) Non-Competition.
In consideration of the mutual covenants provided for herein and the compensation to be paid to Sellers at the Closing,
during the period beginning on the Closing Date and ending on the fifth (5th) anniversary of the Closing Date (the
“Non-Compete Period”), Sager, Timmons and Martin shall not directly or indirectly own any interest in,
manage, control, participate in, consult with, render services for, or in any manner engage in the Business or any business
or activities that are the same, similar or competing with the business of the Company anywhere in the United States
(“Competing Business”). Sager, Timmons and Martin each acknowledges that the
Company’s business is planned to be conducted nationally and agrees that the provisions in this Section 8.7
shall operate throughout the United States. Nothing herein shall prohibit Seller, Sager, Timmons and Martin from being a
passive owner of not more than three percent (3%) of the outstanding stock of any class of a Competing Business which is
publicly traded, so long as none has any active participation in the business of such Competing Business.

 

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

 

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

 

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

 

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

 

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

 

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

 

8.9 Conduct of the Business Pending the
Closing Date. Sellers agree that, except pursuant to the prior written consent of Buyer, during the period commencing on
the date hereof and ending on the Closing Date, Sellers will:

 

(a) 
operate the Business only in the Ordinary Course of Business and in compliance with all Laws, rules and regulations applicable
thereto;

 

(b) 
maintain customary levels of customer service with respect to the Business and maintain all existing agreements, contracts,
property and equipment at customary levels;

 

(c) 
take all actions reasonably necessary and appropriate to preserve, protect and maintain all of the assets of the Business,
other than disposable assets, in customary repair, order and condition (reasonable wear and tear excepted);

 

(d) 
make no disposition, other than a disposition of obsolete and/or otherwise unusable assets;

 

(e) 
not sell, transfer, convey or otherwise dispose of, with or without consideration, any assets used or useful in or relating
to the Business;

 

(f) 
not acquire any stock or any property or assets of any other person, firm, association, corporation or other business organization
usable in the conduct of the Business, or enter into any contract or agreement or other commitment to effect any of the foregoing
except in the Ordinary Course of Business;

 

(g) 
not incur any indebtedness for borrowed money or vary the terms of any existing instruments, nor enter into any other material
transaction or commitment in connection with the Business;

 

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(h) not mortgage, pledge or subject to any Lien, lease,
security interest or other charge or encumbrance any of the assets of the Business;

 

(i) 
not adopt any employee benefit plan covering employees of the Business;

 

(j) 
provide Buyer with prompt written notice if any customer of the Business notifies any Seller (in writing or otherwise) that
such customer intends to terminate services from the Business or to reduce the volume of its services from the Business; and

 

(k) 
not enter into any contract or agreement or other commitment with any third party relating to any acquisition or disposition
of all or a portion of the assets used in, or held for use in, connection with the operations of, the Business.

 

8.10 Sellers’ Representative.

 

(a) 
Appointment. Sellers hereby irrevocably constitute and appoint Sager (the “Sellers’ Representative”)
to represent, individually or jointly, the Sellers in connection with this Agreement and the Related Agreements. This power is
irrevocable and coupled with an interest, and shall not be affected by death, incapacity, illness, dissolution or other inability
to act of the Sellers.

 

(b) 
Authority. Sellers hereby irrevocably grant the Sellers’ Representative full power and authority:

 

(i) 
to execute and deliver, on behalf of the Sellers and to accept delivery of, on behalf of the Sellers, all such documents
as may be deemed by Sellers’ Representative, in his sole discretion, to be appropriate to consummate the transactions contemplated
by this Agreement and the Related Agreements;

 

(ii) 
to endorse and deliver on behalf of the Sellers irrevocable interest powers representing the Membership Units;

 

(iii) 
to (A) dispute or refrain from disputing, on behalf of Sellers any claim made by Buyer or any other Person under this Agreement;
(B) negotiate and compromise, on behalf of the Sellers, any dispute that may arise under, and to exercise or refrain from exercising
any remedies available under, this Agreement; and (C) execute, on behalf of the Sellers, any settlement agreement, release or other
document with respect to such dispute or remedy;

 

(iv) 
to give or agree to, on behalf of the Sellers, any and all consents, waivers, amendments or modifications deemed by the
Sellers’ Representative, in his sole discretion, to be necessary or appropriate under this Agreement, and, in each case,
to execute and deliver any documents that may be necessary or appropriate in connection therewith;

 

(v) 
to enforce, on behalf of the Sellers, any claim against Buyer arising under this Agreement or any of the Ancillary Agreements;

 

(vi) 
to engage attorneys, accountants and agents at the expense of the Sellers and Sellers’ Representative;

 

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(vii) 
to
amend this Agreement (other than this Section 8.10) or any of the instruments to be delivered to Buyer by the Sellers and Sellers’s
Representative pursuant to this Agreement or any of the Ancillary Agreements; and

 

(viii) 
to give such instructions and to take such action or refrain from taking such action, on behalf of the Sellers and Sellers’
Representative, as the Sellers’ Representative deems, in his sole discretion, necessary or appropriate to carry out the provisions
of this Agreement.

 

(c) Reliance.
Sellers hereby agree that:

 

(i) 
in all matters in which action by the Sellers’ Representative is required or permitted, the Sellers’ Representative
is authorized to act on behalf of the Sellers and Sellers’ Representative, notwithstanding any dispute or disagreement between
the Sellers and the Sellers’ Representative, Buyer shall be entitled to rely on any and all action taken by the Sellers’
Representative under this Agreement or any of the Ancillary Agreements without any liability to, or obligations to inquire of the
Sellers and Sellers’ Representative, notwithstanding any knowledge on the part of the Buyer of any dispute or disagreement;

 

(ii) 
the power and authority of the Sellers’ Representative, as described in the Agreement, shall continue in force until
all rights and obligations of the Sellers and Sellers’ Representative under this Agreement shall have terminated, expired
or been fully preformed; and

 

(iii) 
the Sellers shall have the right, exercisable from time to time upon unanimous written consent delivered to the Sellers’
Representative and Buyer: (A) to remove the Sellers’ Representative, with our without cause; and (B) to appoint another Sellers’
Representative to fill the vacancy caused by the death, resignation or removal of the initial Sellers’ Representative.

 

8.11 PPP Loan Matters.

 

(a) That Company has filed its Forgiveness
Applications and received such forgiveness. From and after the date of this Agreement until the Closing and, should the
Closing occur, following the Closing, Seller’s Representative shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments, and
documents, as the PPP Lender or any Governmental Authority (including the SBA) may reasonably request relative to the
underlying loan. If, at any time, the Seller’s Representative receives notice from any Governmental Authority that such
Governmental Authority is conducting (or intends to conduct) an audit of the PPP Loan, then Seller’s Representative
shall immediately provide notice of the same to Buyer, which notice shall include a true, correct and complete copy of any
written communication received from any Governmental Authority with respect thereto. Seller’s Representative shall do
and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such
other agreements, certificates, instruments and documents, as Buyer, the PPP Lender or any Governmental Authority (including
the SBA) may reasonably request in order to respond to and administer any such audit of the PPP Loan, and shall keep Buyer
reasonably apprised of all activities associated with such audit.

 

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(b) Buyer shall
promptly (and in any event within three (3) business days after receipt thereof) provide notice to the Seller’s
Representative of the final resolution of any audit of the PPP Loan .

 

ARTICLE 9

Tax Matters

 

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

 

 9.2 Tax Returns; Refunds.

 

9.2.1 Tax
Returns. Except as otherwise provided in this Section 9.2.1, Buyer (at its sole expense) shall cause the Company
to prepare all Tax Returns of the Company that relate to any Pre-Closing Tax Period or any Straddle Period (collectively,
“Pre-Closing Tax Returns”) and shall cause the Company to provide to Sellers’ Representative drafts
of such Pre-Closing Tax Returns for review and comment at least forty-five (45) days prior to the due date for the filing of
each such Pre-Closing Tax Return, including extensions. The Pre-Closing Tax Returns will be prepared using the
Company’s historical records of accounting. Not later than twenty (20) days after the Company has provided any such
Pre-Closing Tax Return, Sellers’ Representative shall notify Buyer of the existence of any objection, specifying in
reasonable detail the nature and basis of such objection that Sellers’ Representative may have to any item set forth on
such draft Pre-Closing Tax Return. Buyer (on behalf of itself and the Company) and Sellers’ Representative agrees to
consult and resolve in good faith any such objection. If such objection cannot be resolved within five (5) days after
delivery of such notice, the parties shall submit such dispute for resolution to the Independent Accountants pursuant to the
procedures set forth in Section 2.4.3. If the Independent Accountants cannot resolve such dispute no later than five
(5) days prior to the due date for filing the relevant Pre-Closing Tax Return, Buyer shall cause the Company to file such
Pre-Closing Tax Return in the manner proposed by the Sellers; provided, however, if the dispute is ultimately resolved
by the Independent Accountants in favor of Buyer, Buyer may cause the Company to file an amendment to such Pre-Closing Tax
Return consistent with the Independent Accountants’ determination. Except as otherwise required by Law, all Pre-Closing
Tax Returns shall be prepared consistent with past practices and, for the avoidance of doubt, will provide for a refund,
in cash, whenever possible for the overpayment of Taxes or otherwise, rather than a credit for Taxes due for any Post-Closing
Tax Period. Sellers shall pay to Buyer, within fifteen (15) Business Days of Buyer’s request, any and all Taxes due
with respect to such Pre-Closing Tax Returns related to Pre-Closing Tax Periods, except to the extent such Taxes are
specifically reflected on the Final Adjustment Statement. Notwithstanding the foregoing, Sellers shall prepare and file all
Tax Returns that are income Tax Returns (including, but not limited to, IRS Forms 1120 and related, similar state and local
income Tax Returns) and pay any income Taxes due and owing with respect thereto to the extent relating to a Straddle Period
(except to the extent such Taxes are specifically reflected on the Final Adjustment Statement). The Sellers shall provide all
such Tax Returns to the Buyer for their review and comment no later than thirty (30) days before the due date of such Tax
Return.

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 10

Indemnification

 

10.1 Indemnification
of Buyer. From and after the Closing and subject to the limitations contained herein, each Seller shall individually and not,
jointly and severally as to Article 3 and jointly and severally as to Article 4, indemnify, hold harmless, pay and reimburse Buyer
and each of its officers, directors, employees, agents, stockholders, Affiliates, successors and assigns (collectively, the “Buyer
Indemnitees”), from and against any Losses suffered or incurred by any Buyer Indemnitee on account of, arising from,
or in connection with:

 

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

 

(b) 
any breach or nonperformance of any of the covenants, undertakings or other agreements made by any Seller, or the Company
herein.

 

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

 

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

 

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

 

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

 

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(c) 
The maximum aggregate indemnification amount to which the Buyer Indemnitees may be entitled under Section 10.1(a)
as of any given date shall be the then-remaining Escrow Amount held by the Escrow Agent pursuant to the Escrow Agreement, which
funds shall serve as the sole and exclusive source of payment and recovery for such Losses and the Sellers will have no liability
with respect to any such Losses in excess of such remaining amount; provided, that (i) the maximum aggregate indemnification
amount to which the Buyer Indemnitees may be entitled under Section 10.1(a) with respect to the Fundamental Representations
shall not be limited, (ii) the Buyer Indemnitees shall be entitled to seek recovery for any Losses for which the Buyer Indemnitees
are entitled to indemnification pursuant to Section 10.1(a), in excess of the Escrow Amount, or pursuant to Section 10.1(b),
as offsets against any Year 1 Earnout Payment, Year 1 Earnout make-up amount, and/or Year 2 Earnout Payment, and (iii) the Buyer
Indemnitees shall be entitled to seek recovery for any Losses for which the Buyer Indemnitees are entitled to indemnification pursuant
to Section 10.1(a) in excess of the Escrow Amount, with respect to the Fundamental Representations, or pursuant to Section
10.1(b), thereafter, from the Sellers directly.

 

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

 

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

 

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

 

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

 

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

 

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(i) The limitations set forth in this Section
10.3 shall in no way limit the rights of the Buyer Indemnitees with respect to any claims of, or causes of action arising
from, willful misconduct, fraud or claims of, or causes of action for which the sole remedy sought is equitable relief.

 

10.4 Procedures Relating to Indemnification.

 

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

 

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

 

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

 

10.4.2 Other Claims.
In the event any indemnitee should have a claim against any indemnitor under this Agreement that does not involve a Third-Party
Claim, the indemnitee shall deliver written notice of such claim to the indemnitor promptly following discovery of any indemnifiable
Loss, but in any event, in the case of the Buyer Indemnitees, not later than the last date set forth in Section 10.3 for
making such claim, to the extent applicable. Failure to give such notification shall not affect the indemnification provided hereunder
except to the extent the indemnitor shall have been actually prejudiced as a result of such failure. Such notice shall state in
reasonable detail the amount or an estimated amount of such claim (to the extent known), and shall specify the facts and circumstances
which form the basis (or bases) for such claim, and shall further specify the representations, warranties or covenants alleged
to have been breached. Upon receipt of any such notice, the indemnitor shall notify the indemnitee as to whether the indemnitor
accepts liability for any Loss. If the indemnitor disputes its liability with respect to such claim in whole or in part or fails
to respond to the same within fifteen (15) days from receipt of such notice, the indemnitee shall be free to pursue such remedies
as may be available to the indemnitee under this Agreement or applicable Law; provided, however, that indemnitee shall not
be required to provide notice before pursuing such injunctive relief as may be available to the indemnitee under this Agreement
or applicable Law.

 

10.5 Escrow.
For any Loss for which the Sellers are obligated to indemnify the Buyer Indemnitees, the Buyer Indemnitees shall seek
reimbursement for such Loss from the Escrow Amount first, and once the Escrow Amount is exhausted, then the Buyer Indemnitees
may proceed to collect the unreimbursed amount of such Loss: (a) in the case of any indemnification claim pursuant
to Section 10.1(a) or (b), from any offset against any Year 1 Earnout Payment, Year 1 Earnout make-up amount, and/or
Year 2 Earnout Payment, or (b) in the case of any indemnification claim pursuant to Section 10.1(a) or (b), the Seller
jointly and severally, subject to the limitations set forth herein, which may be satisfied by payment (to be made within
fifteen (15) days after the final determination of such Losses) of such amount of such Losses owed by the Sellers in
immediately available funds to an account designated in writing by Buyer Indemnitees. The foregoing restrictions shall be in
addition to, and not in limitation of, any further limitation of liability that might otherwise apply (whether by reason of a
Buyer Indemnitee’s waiver, relinquishment or release of any applicable rights or otherwise).

 

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

 

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

 

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

 

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

 

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ARTICLE 11

 

Certain Definitions

 

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

 

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

 

“Accounting Policies” is defined
in Section 2.3.

 

“Accounts Receivable
List” is defined in Section 4.19.

 

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

 

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

 

“Agreement”
means this Membership Interest Purchase Agreement, as may be amended from time to time.

 

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

 

“Business”
means the business of the Company, as conducted as of the date hereof and during the immediately preceding twelve months, including
the business of providing computer technology-based hardware products, integrated software and associated professional services
to its customers.

 

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

 

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

 

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

 

“Buyer Ancillary Agreements”
is defined in Section 5.1.

 

“Buyer Indemnitees” is defined in Section 10.1.

 

“Buyer Releasor”
is defined in Section 8.5.2.

 

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

 

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

 

“Closing Cash Payment” is defined in Section
2.3.

 

“Closing Certificate” is defined in Section 2.3.

 

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

 

“Closing Working
Capital” means the Working Capital of the Company as of the Effective Time. For the avoidance of doubt, Closing Working
Capital will be determined without giving effect to the transactions contemplated hereby.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Company’s
Knowledge” means the actual knowledge of Steve Sager, Greg Timmons and/or Tim Martin, and the knowledge each such individual
would have after a reasonable review of the Company’s books and records and reasonable inquiry of such individual’s
direct reports.

 

“Company Products”
is defined in Section 4.22.

 

“Company Releasee” is defined in Section 8.5.1.

 

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

 

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

 

“Effective Time”
is defined in Article 6.

 

“Employment
Agreement” means each Employment Agreement between Sager, Timmons or Martin and the Company, in the form attached hereto
as Exhibit A.

 

“Enforceability Exceptions”
is defined in Section 3.3.

 

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

 

    46

     

    

 

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

 

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

 

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

 

“Escrow Agent” means Delaware Trust
Company.

 

“Escrow Agreement”
means the Escrow Agreement among the Escrow Agent, Buyer and Sellers’ Representative, due in the form attached hereto as
Exhibit B which will terminate on the one year anniversary of the Closing Date.

 

“Escrow Amount”
means Five Hundred Thousand Dollars ($500,000) to be held and released by Escrow Agent pursuant to the Escrow Agreement.

 

“Estimated Closing Indebtedness”
is defined in Section 2.3.

 

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

 

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

 

“Estimated Selling Expenses”
is defined in Section 2.3.

 

“Estimated Transaction Bonuses” is defined in Section 2.3.

 

“Final Adjustment Statement”
is defined in Section 2.4.4.

 

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

 

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

 

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

 

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

 

“General Information Notice”
shall mean the General Information Notice described at N.J.A.C. 7:26B-3.2(a).

 

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

 

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

 

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

 

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

 

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

 

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

 

“Independent Accountants” is defined
in Section 2.4.3.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Material
Adverse Effect” means any change, event, circumstance, development, occurrence or effect that individually or taken
together with any other change, event, circumstance, development, occurrence or effect is, or would reasonably be expected to
be, (a) materially adverse to the business, operations, financial condition properties, assets, liabilities or results of
operations of the Company taken as a whole, or (b) reasonably expected to prevent or materially delay the consummation of the
transactions contemplated by this Agreement; provided, however, that none of the following will be deemed,
either alone or in combination to constitute, and none of the following will be taken into account in determining whether
there has been a Material Adverse Effect: any event, change, circumstances or development arising out of, resulting from or
attributable to (i) general business, economic or regulatory conditions; (ii) any natural or man-made disaster or acts of God,
including but not limited to epidemics or pandemics such as Covid-19; (iii) national or international political or social
conditions (including but not limited to war or military or terrorist activities); (iv) changes in financial, banking or
securities markets (including but not limited to changes in foreign currency exchange rates) and any disruption thereof and
decline in the price of any security or any market index; (v) changes in applicable accounting regulations
or accounting principles (or interpretations thereof); (vi) general economic factors or conditions that affect the industries
in which the Company operates generally; (vii) changes in Law or other binding directives issued by any Governmental
Authority with proper jurisdiction, or in interpretation thereof by any Governmental Authority with proper jurisdiction;
(viii) compliance with the terms of, or the taking of any action compelled by, this Agreement; or (ix) the public
announcement of the execution of this Agreement or public identification of Purchaser as the acquiror of the
Business.

 

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“Material Contracts” is defined
in Section 4.13.

 

“Material Customers” is defined in Section 4.18.

 

“Material Vendors” is defined in
Section 4.18.

 

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

 

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

 

“Notice of Claim” is defined in
Section 10.4.1.

 

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

 

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

 

“Ordinary
Course of Business” means the ordinary and usual course of normal day-to-day operations of the Business, as conducted
by Company, through the Closing Date consistent with past practice.

 

“Organizational
Documents” means the articles of incorporation, articles of organization, certificate of incorporation, limited partnership
agreement, limited liability company operating agreement, code of regulations and by-laws (or equivalents thereof) and/or other
governing documents of any corporation, limited liability company, partnership, trust, unincorporated association or other entity
or organization.

 

“Permits” is defined in Section
4.10.

 

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

 

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

 

“Plans” is defined in Section
4.9.

 

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

 

“PPP Lender” means Cross River Bank, and
its successors and assigns.

 

“PPP Loan”
means the Paycheck Protection Program Loan made to Seller by the PPP Lender and evidenced by that certain Promissory Note dated
as of April 14, 2020, in the original principal amount of $408,862.50, as the same may be amended, supplemented, restated, or otherwise
modified from time to time.

 

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

 

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

 

“Preliminary Adjustment Statement”
is defined in Section 2.4.1.

 

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

 

“Purchase Price” is defined
in Section 2.2.

 

“Related Person” is defined in Section 4.17.

 

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

 

“Repaid Closing Indebtedness” is
defined in Section 2.3.

 

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“Restricted Period” is defined in Section 8.4.

 

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

 

“Seller Ancillary Agreements” is
defined in Section 3.1.

 

“Seller Indemnitees” is defined
in Section 10.2.

 

“Seller Releasor” is defined in
Section 8.5.1.

 

“Sellers’ Account” is defined
in Section 2.3.

 

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

 

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

 

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

 

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

 

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

 

“Tax Matter” is defined in Section
9.3.

 

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

 

    52

     

    

 

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

 

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

 

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

 

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

 

“Transferred Employee” is defined
in Section 8.6.1.

 

“Working Capital”
means (a) the sum of the Company’s current assets, excluding any income Tax assets (current, deferred or otherwise), minus
(b) the sum of the Company’s current liabilities, excluding (i) Indebtedness, (ii) any current, deferred or other income
or franchise Tax liabilities, (iii) Transaction Bonuses, and (iv) Selling Expenses; in all cases, calculated in accordance with
Section 2.4.1 hereof. For purposes of determining any Working Capital hereunder, the parties agree that fifty percent (50%)
of any Company deferred revenue determined to exist as of the Closing Date as calculated in accordance with GAAP shall be deemed
a current liability of Company. A sample calculation of Working Capital, including each specific general ledger account, is set
forth on Exhibit C hereto, which the parties agree is calculated in accordance with Section 2.4.1  hereof. For the
avoidance of doubt, Working Capital will be determined without giving effect to the transactions contemplated hereby.

 

“Working Capital Target” means
Five Hundred Fifty Thousand Dollars ($550,000).

 

ARTICLE 12

 

Construction; Miscellaneous Provisions

 

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

 

		(a)	If to Buyer, to:

 

DecisionPoint Systems, Inc.

8697 Research Drive

Irvine, California 92618

Attention: Steven Smith, CEO

Email: ssmith@decisionpt.com

 

    53

     

    

 

With a copy to:

 

Potters & Della Pietra LLP

100 Passaic Avenue

Fairfield, New Jersey 07004

Attention: Christopher V. Della Pietra

Email: cdellapietra@pdplawfirm.com

 

		(b)	If to Sellers:

 

ExtenData Solutions, LLC

7399 South Tucson Way

Unit B-1

Centennial CO 80112

Attention: Steve Sager, President and CEO

Email: sagers@extendata.com

 

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

 

Kutak Rock LLP

1801 California Street

Suite 3000

Denver, CO 80202

Attention: Robert C. Roth, Jr., Esq.

Email: Robert.roth@kutakrock.com

 

or in any case, to such other address for
a party as to which notice shall have been given to Buyer and Seller in accordance with this Section 12.1. Notices so addressed
shall be deemed to have been duly given (i) on the first (1st) Business Day after the day of registration, if sent by registered
or certified mail, postage prepaid, (ii) on the next Business Day following the documented acceptance thereof for next-day delivery
by a national overnight air courier service, or (iii) on the date sent by electronic mail transmission, if electronically confirmed.
Otherwise, notices shall be deemed to have been given when actually received at such address.

 

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

 

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

 

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12.4 Jurisdiction
and Venue; Waiver of Jury Trial. Each party hereto agrees that any claim relating to this Agreement shall be brought in the
state or federal court of competent jurisdiction located in the City and County of Denver, Colorado, and all objections to personal
jurisdiction and venue in any action, suit or proceeding so commenced are hereby expressly waived by all parties hereto. The parties
waive personal service of any and all process on each of them and consent that all such service of process shall be made in the
manner, to the party and at the address set forth in Section 12.1 of this Agreement, and service so made shall be complete
as stated in such section. Notwithstanding the foregoing, any disputes between the parties that are submitted to the Independent
Accountants for resolution pursuant to the terms of Section 2.4.3 shall be resolved as set forth in accordance with the
terms of such section. EACH PARTY HERETO HEREBY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER,
(C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.4. FURTHERMORE, EXECPT IN THE CASE OF CLAIMS ARISING FROM FRAUD,
MALICE OR WILLFUL AND WANTON CONDUCT, THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY
HAVE TO SEEK PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES FROM ANY OTHER PARTY HERETO WITH RESPECT TO ANY AND ALL ISSUES PRESENTED
IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST ANOTHER PARTY HERETO OR THEIR SUCCESSORS WITH
RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENTS CONTEMPLATED HEREIN OR RELATED HERETO,
UNLESS AWARDED TO A THIRD PARTY IN CONNECTION WITH SUCH THIRD PARTY CLAIM. THE WAIVER BY THE PARTIES HERETO OF ANY RIGHT ANY OF
THEM MAY HAVE TO SEEK SUCH DAMAGES HAS BEEN NEGOTIATED BY THE PARTIES HERETO, AN IS AN ESSENTIAL ASPECT OF THEIR BARGAIN.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    56

     

    

 

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

 

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

 

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

 

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

 

[signature pages follow]

 

    57

     

    

 

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

 

	 	BUYER:
	 	 	 
	 	DECISIONPOINT SYSTEMS, INC.,

    a Delaware corporation
	 	 	 
	 	By:	 
	 	 	Name: Steven Smith
	 	 	Title: CEO

 

     

     

    

 

	 	SELLERS:
	 	 	 
	 	 
	 	Steven L. Sager
	 	 	 
	 	 
	 	Gregory W. Timmons
	 	 	 
	 	 
	 	Timothy D. Martin
	 	 	 
	 	 
	 	John C. Hellyer
	 	 	 
	 	 
	 	Darrel C. Wilson, III
	 	 	 
	 	 
	 	Thomas D. St. Clair
	 	 	 
	 	EJW LIMITED PARTNERSHIP
	 	 	 
	 	By:	 
	 	 	 
	 	Its:	 
	 	 	 
	 	WHAT’S NEXT INVESTMENTS, LLC
	 	 	 
	 	By: 	                  
	 	 	 
	 	Its:	 

 

     

     

    

 

Exhibit A

 

Form of Employment Agreement

 

See attached.

 

     

     

    

 

Exhibit B

 

Form of Escrow Agreement

 

See attached.

 

     

     

    

 

Exhibit C

 

Sample Working Capital Calculation

 

See attached.

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