Document:

Exhibit 10.1

 

Transaction Agreement

 

This Transaction Agreement (this “Agreement”)
is entered into as of August 8, 2013 (the “Effective Date”) by and among Key Brand Entertainment Inc., a Delaware
corporation (the “Company”), Theatre Direct NY, Inc., a Delaware corporation (“Theatre Direct”
and, together with the Company, the “KB Parties”), and Hollywood Media Corp., a Florida corporation (“HMC”).
The Company, Theatre Direct and HMC are collectively referred to herein as the “Parties”.

 

WHEREAS, HMC and the Company are parties
to that certain Stock Purchase Agreement, dated as of December 22, 2009 (as amended, the “SPA”), pursuant to
which the Company acquired from HMC all of the issued and outstanding shares of capital stock of Theatre Direct (the “Hollywood
Acquisition”);

 

WHEREAS, Theatre Direct and HMC are parties
to that certain Warrant to purchase shares of common stock of Theatre Direct issued as of December 15, 2010 pursuant to the SPA
(as amended by that certain Amendment dated as of December 31, 2012, the “Warrant”);

 

WHEREAS, the Company, Theatre Direct and
HMC also are parties to that certain Second Lien Credit, Security and Pledge Agreement, dated as of December 15, 2010 (as amended,
the “Credit Agreement”), pursuant to which HMC made a loan to the Company (the “Loan”) in
the initial principal amount of $8,500,000 in connection with the payment of consideration for the closing of the Hollywood Acquisition;
and

 

WHEREAS, the Parties wish to set forth herein
the terms under which (i) the Loan will be prepaid in full by the Company and (ii) the Warrant will be redeemed and cancelled by
Theatre Direct, in each case on the Effective Date.

 

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

 

1. Prepayment of the Loan.
Notwithstanding anything to the contrary in Section 2.7 of the Credit Agreement, the Company and HMC agree that the Company
shall prepay the Loan in full, without premium or penalty, on the Effective Date. Such prepayment shall be accompanied by
accrued but unpaid interest on the principal amount being prepaid to (but not including) the Effective Date. Payment of such
principal and interest shall be made by wire transfer of immediately available funds to the account of HMC specified in a
payoff letter in the form of Exhibit A hereto (the “Payoff Letter”), which letter shall be executed
and delivered by HMC and the Company as of the Effective Date.

 

2. Redemption of the Warrant.
Notwithstanding anything to the contrary in the Warrant (including, without limitation, Section 11(A)), Theatre Direct and
HMC agree that Theatre Direct shall redeem the Warrant, in whole and not in part, on the Effective Date in exchange for the
payment by Theatre Direct of the amount of $2,750,000 (the “Redemption Price”). The Redemption Price shall
be payable by Theatre Direct by wire transfer of immediately available funds to the “Account” of HMC set forth in Exhibit
B hereto and, upon payment in full of such amount, the Warrant shall automatically be cancelled (and HMC shall surrender
the Warrant to Theatre Direct for cancellation) and HMC shall have no further rights under the Warrant. HMC hereby waives the
right to receive prior written, telephonic or facsimile notice in connection with the redemption of the Warrant pursuant to
the terms of the Warrant.

 

    	 

    	2

    

 

3. Expenses. The Parties agree
that notwithstanding anything to the contrary in the SPA, the Credit Agreement or the Warrant, each Party shall be
responsible for all costs, fees and expenses whatsoever (including, without limitation, all legal fees and expenses) incurred
by such Party in connection with the preparation, negotiation, execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby.

 

4.Further
Assurances. Each Party agrees to take such further actions, and to execute and deliver
such further instruments and other documents, as any other Party may reasonably request (and at the sole cost and expense of such
other Party) to evidence the consummation of the transactions contemplated hereby. 

 

5. Representations and Warranties of
the Parties.

 

(a)The KB Parties jointly and severally
represent and warrant to HMC that (i) this Agreement has been duly authorized, executed and delivered by the KB Parties, (ii) the
execution, delivery and performance of this Agreement by the KB Parties will not violate the certificate of incorporation and by-laws
of the KB Parties or any contract or other agreement to which either of the KB Parties is a party, (iii) this Agreement, when so
executed and delivered, will constitute a legal, valid and binding obligation of the KB Parties enforceable against them in accordance
with its terms and (iv) no term sheet, letter of intent or other agreement has been entered into, no written offer has been received
by and no investment banker has been engaged or retained by the KB Parties or any of their affiliates, with respect to or in connection
with, any merger or consolidation of either of the KB Parties with another entity, or any transfer, sale or disposition by either
of the KB Parties of the equity or assets of the KB Parties to a third party.

 

(b)HMC represents and warrants to the
KB Parties that (i) this Agreement has been duly authorized, executed and delivered by HMC, (ii) the execution, delivery and
performance of this Agreement by HMC will not violate the articles of incorporation and by-laws of HMC or any contract or other
agreement to which HMC is a party and (iii) this Agreement, when so executed and delivered, will constitute a legal, valid and
binding obligation of HMC enforceable against it in accordance with its terms.

 

(c)Each of the Parties acknowledges
that it has been advised by counsel in relation to this Agreement, is not relying on any representations of the other Parties other
than those set forth in this Agreement, and has had ample time to investigate all facts that may be material in deciding whether
to enter into this Agreement, and that there are no facts which, if known, would have caused such Party not to enter into this
Agreement.

 

    	 

    	3

    

 

6. No Other Earnout Amounts. HMC
acknowledges and agrees that upon the prepayment of the Loan on the Effective Date as contemplated hereby and upon the terms
set forth in the Payoff Letter, all of the earnout amounts payable by the Company to HMC under the SPA during the Earnout
Period (as defined in the SPA) shall have been paid in full.

 

7. Entire Agreement; Amendments and
Waivers. This Agreement represents the entire understanding and agreement between the KB Parties and HMC with respect to
the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral) between the KB
Parties and HMC relating to such subject matter. This Agreement can be amended, supplemented or modified, and any provision
hereof can be waived, only by written instrument making specific reference to this Agreement signed by the Party against whom
enforcement of any such amendment, supplement, modification or waiver is sought.

 

8. Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and
performed in such State without giving effect to the choice of law principles of such State that would require or permit the
application of the laws of another jurisdiction.

 

9. Submission to Jurisdiction;
Consent to Service of Process; Waiver of Jury Trial. The Parties hereby irrevocably submit to the exclusive jurisdiction
of any federal or state court located within the borough of Manhattan of the City, County and State of New York over any
dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby. The Parties hereby
irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to
the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of
such dispute. Each of the Parties agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit
on the judgment or in any other manner provided by law. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT.

 

10. Counterparts; Effectiveness.
This Agreement may be executed in multiple counterparts and by facsimile or other electronic means (including PDF), each of
which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement. This Agreement shall become effective, and the obligations set forth herein binding,
when each Party shall have received counterparts hereof signed by the other Parties.

 

 

[Remainder of Page Intentionally Left
Blank]

 

    	 

    	4

    

 

IN WITNESS WHEREOF, this Agreement has been
duly executed by the Parties as of the Effective Date.

 

 

	 	KEY BRAND ENTERTAINMENT INC.
	 	 
	 	 
	 	By: 	/s/ John Gore
	 	 	Name: John Gore
Title:   Chief Executive Officer
	 	 	 
	 	 	 
	 	THEATRE DIRECT NY, INC.
	 	 	 
	 	 	 
	 	By:	/s/ John Gore
	 	 	Name: John Gore
Title:   Chief Executive Officer
	 	 	 
	 	 	 
	 	HOLLYWOOD MEDIA CORP.
	 	 	 
	 	 	 
	 	By:	/s/ Mitchell Rubenstein
	 	 	Name: Mitchell Rubenstein
Title:   Chairman and CEO

 

    	Signature Page to Transaction Agreement

    	 

    

 

EXHIBIT A

 

FORM OF PAYOFF LETTER

 

Hollywood
Media Corp.

301
E. Yamato Road, Suite 2199

Boca
Raton, Florida 33431

 

July 31, 2013

 

Key Brand Entertainment Inc.

729 Seventh Avenue, 7th Floor

New York, New York 10019

 

		Re:	Payoff of Indebtedness

 

Ladies and Gentlemen:

 

Reference is made to
that certain Second Lien Credit, Security and Pledge Agreement, dated as of December 15, 2010 (as amended by that certain Amendment
No. 1, dated as of April 22, 2012, and as further amended by that certain Amendment No. 2, dated as of December 31, 2012, as further
amended, amended and restated, modified or otherwise supplemented from time to time (the “Credit Agreement”))
(together with any documents and/or agreements executed in connection therewith, including any Fundamental Documents, and as the
same have been amended, amended and restated, supplemented or otherwise modified from time to time, collectively, the “Debt
Documents”), by and among Key Brand Entertainment Inc., a Delaware corporation (the “Borrower”), Theatre
Direct NY, Inc., a Delaware corporation (the “Company”) and Hollywood Media Corp., a Florida corporation (the
“Lender”). Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to
them in the Credit Agreement. Upon the Lender’s receipt of (a) this letter agreement duly executed by the Borrower and the
Company and (b) wire transfer in Dollars in immediately available funds of $13,851,866.10 (the “Scheduled Amount”),
the calculation of which is set forth on the attached Exhibit A, on August 6, 2013 (the “Scheduled Date”)
to the account described below (provided, that if the Scheduled Amount is received after the Scheduled Date, a per diem
amount of $4,936.11 shall be added to the Scheduled Amount (the Scheduled Amount plus any per diem amounts, collectively,
the “Payoff Amount”)), the Lender agrees that, effective immediately upon receipt of the Payoff Amount and without
any further action:

 

(i)all of the outstanding debts, liabilities,
earnout amounts and obligations (including, without limitation, any Obligations) owing by any of the Credit Parties or Theatre
Direct Companies to the Lender or otherwise under the Credit Agreement or any other Debt Documents shall be satisfied and discharged
in full, and the Credit Parties and Theatre Direct Companies shall be released from any and all liability therefor; provided
that the satisfaction and discharge and releases pursuant to this letter agreement shall have no effect with respect to the redemption
of the Warrant, which is addressed pursuant to that certain Transaction Agreement dated as of the date hereof among, inter alios,
the parties hereto;

 

    	1

    	 

    

 

(ii)the Credit Agreement and all other
Debt Documents shall terminate, and be of no further force or effect, and all commitments of the Lender to make or permit to remain
outstanding any loans or indebtedness under any of the Debt Documents shall terminate, and Lender shall be released from any and
all obligations, covenants, agreements and liabilities under the Credit Agreement and all other Debt Documents, and Lender shall
not have any further obligation to make any Loans under the Credit Agreement;

 

(iii)all security interests, encumbrances
and other liens (including, without limitation, any Liens) granted to or held by the Lender for its own benefit or otherwise in
any assets or property of the Credit Parties or Theatre Direct Companies (including, without limitation, in any Collateral or Pledged
Collateral) shall be irrevocably satisfied, released and discharged;

 

(iv)the Lender authorizes the filing of
(by any Credit Party or any financial institution that may provide a loan to Borrower (the “New Lender”) or
any of their respective designees or other advisers or representatives), and shall promptly execute and deliver on the Scheduled
Date and from time to time thereafter to any Credit Party, the New Lender or any of their respective designees or other advisers
or representatives, at the Borrower’s sole cost and expense, any UCC termination statements (including, without limitation,
the UCC-3 financing statements attached as Exhibit B hereto), lien releases and other release documents (if applicable,
in recordable form) that are reasonably necessary to release and terminate of record the security interests, encumbrances or other
liens described in clause (iii) above or that are otherwise reasonably requested by any Credit Party or the New Lender
to evidence or effectuate the agreements herein (including, without limitation, in clause (iii) above); and

 

(v)if requested by any Credit Party, deliver
to the Borrower or the New Lender, or such other persons as Credit Party shall otherwise designate, any original collateral (including,
without limitation, any stock certificates and any powers executed in connection therewith to the extent in the Lender’s
possession) to evidence or effectuate the agreement in clause (iii) above.

 

The Payoff Amount shall
be paid by wire transfer to the following account:

 

	Bank Name:	 
	 	 
	Contact:	 
	 	 
	ABA Routing No.:	 
	 	 
	Account No.:	 
	 	 
	Account Name:	 
	 	 
	Contact:	 
	 	 
	Re:	 

 

    	2

    	 

    

 

The Lender hereby waives
the right to receive any prior written, telephonic or facsimile notice in connection with any prepayment of the Loan and any other
Obligations under the Credit Agreement and other Debt Documents.

 

The Lender agrees that
it shall be responsible for any and all costs, fees and expenses whatsoever (including, without limitation, any and all legal fees
and expenses) incurred by it in connection with the preparation, negotiation, execution, delivery and performance of the terms
of this letter agreement, and none of the Credit Parties or any Theatre Direct Company shall be required to reimburse the Lender
for any such costs, fees or expenses.

 

This letter agreement
shall be construed in accordance with and governed by the laws of the State of New York without regard to any principle of conflicts
of law or other rule of law that could require the application of the law of any other jurisdiction. This letter agreement may
be executed in any number of separate counterparts, each of which shall, collectively and separately, constitute one agreement.
Delivery of the signature pages to this letter agreement by telecopy or electronic format (including PDF) shall be effective as
delivery of a manually executed counterpart hereof. The undersigned parties have signed below to indicate their consent to be bound
by the terms and conditions of this letter agreement. This letter may be relied upon by any Credit Party or any New Lender.

 

[Remainder of Page Intentionally Bank]

 

    	3

    	 

    

 

 

	 	Sincerely,
	 	 
	 	 
	 	HOLLYWOOD MEDIA CORP.,
	 	as Lender
	 	 
	 	 
	 	By: 	 
	 	 	Name: Mitchell Rubenstein
Title:   Chairman & CEO

 

	ACKNOWLEDGED AND AGREED:	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	KEY BRAND ENTERTAINMENT INC.,	 	 	 	 
	on behalf of itself and the other Credit Parties and Theatre Direct Companies	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	 	Name: John Gore	 	 	 	 
	 	Title:   Chief Executive Officer	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	THEATRE DIRECT NY, INC.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	 	Name: John Gore	 	 	 	 
	 	Title:   Chief Executive Officer	 	 	 	 
	 	 	 	 	 	 

 

    	 

    	 

    

 

Exhibit A

(Calculation of Payoff Amount)

 

Notes #1 & #2:

 

	If received on August 6, 2013:
	 
	Principal:	$13,669,230.00
	 	 
	Interest:	$182,636.10
	 	 
	Total:	$13,851,866.10
	 	 
	Per Diem:	$4,936.11EXECUTION VERSION

 

 

 

 

 

ASSET PURCHASE AGREEMENT

 

by and between

 

OAKLEY, INC.

 

and

 

SBG REVO HOLDINGS, LLC

 

dated as of

 

August 2, 2013

 

 

 

 

 

 

    	 

    	 

    

 

 

TABLE OF CONTENTS

Page

 

	Article I Definitions	1
	 	 	 
	Article II Purchase and Sale	7
	 	 	 
	Section 2.01	Purchase and Sale of Assets	7
	Section 2.02	Excluded Assets	8
	Section 2.03	Assumed Liabilities	9
	Section 2.04	Excluded Liabilities	9
	Section 2.05	Purchase Price	11
	Section 2.06	Allocation of Purchase Price	11
	Section 2.07	Transfer of Purchased Assets and Assumed Liabilities	11
	 	 	 
	Article III Closing	12
	 	 	 
	Section 3.01	Closing	12
	Section 3.02	Closing Deliverables	12
	Section 3.03	Post-Closing Deliverables	13
	Section 3.04		13
	 	 	 
	Article IV Representations and Warranties of Seller	14
	 	 	 
	Section 4.01	Organization and Qualification of Seller	14
	Section 4.02	Authority of Seller	14
	Section 4.03	No Conflicts; Consents	14
	Section 4.04	Absence of Certain Changes, Events and Conditions	15
	Section 4.05	Material Contracts	15
	Section 4.06	Intellectual Property	17
	Section 4.07	Legal Proceedings; Governmental Orders	18
	Section 4.08	Compliance With Laws; Permits	18
	Section 4.09	Taxes	18
	Section 4.10	Employees	19
	Section 4.11	Sufficiency of Assets	20
	Section 4.12	Inventory	20
	Section 4.13	Customers and Suppliers	20
	Section 4.14	Product Liability	20
	Section 4.15	Brokers	21
	Section 4.16	No Other Representations and Warranties	21
	 	 	 
	Article V Representations and Warranties of Buyer	21
	 	 
	Section 5.01	Organization of Buyer	21
	Section 5.02	Authority of Buyer	21
	Section 5.03	No Conflicts; Consents	22
	Section 5.04	Brokers	22
	Section 5.05	Sufficiency of Funds	22

 

    	i

    	 

    

 

	Section 5.06	Solvency	22
	Section 5.07	Legal Proceedings	22
	Section 5.08	Independent Investigation	23
	Section 5.09	No Other Representations and Warranties	23
	 	 	 
	Article VI Covenants	 	23
	 	 	 
	Section 6.01	Transaction Documents	23
	Section 6.02	Notification of Certain Matters	23
	Section 6.03	Customer Letter; Public Announcements	23
	Section 6.04	Bulk Sales Laws	24
	Section 6.05	Transfer Taxes	24
	Section 6.06	Tax Matters	24
	Section 6.07	Covenant Not to Sue	24
	Section 6.08	Commercial Accounts and Customer Warranty Claims	25
	Section 6.09	Further Assurances	25
	 	 	 
	Article VII Indemnification	 	26
	 	 	 
	Section 7.01	Survival	26
	Section 7.02	Indemnification By Seller	26
	Section 7.03	Indemnification By Buyer	27
	Section 7.04	Certain Limitations	28
	Section 7.05	Indemnification Procedures	29
	Section 7.06	Seller’s Obligation to Cause Affiliates to Act	32
	 	 	 
	Article VIII Miscellaneous	 	32
	 	 	 
	Section 8.01	Expenses	32
	Section 8.02	Notices.	32
	Section 8.03	Interpretation	33
	Section 8.04	Headings	33
	Section 8.05	Severability	33
	Section 8.06	Entire Agreement	34
	Section 8.07	Binding Effect; Successors and Assigns	34
	Section 8.08	Amendment and Modification; Waiver	34
	Section 8.09	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	34
	Section 8.10	Specific Performance	35
	Section 8.11	Knowledge	35
	Section 8.12	Counterparts	35

 

    	ii

    	 

    

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this “Agreement”), dated as of August 2, 2013, is entered into by and between OAKLEY, INC., a Washington corporation
with its principal office located at One Icon, Foothill Ranch, California 92610 (“Seller”), and SBG REVO HOLDINGS,
LLC, a Delaware limited liability company with its principal office located at 1065 Avenue of the Americas, 30th Floor,
New York, NY 10018 (“Buyer”).

 

RECITALS

 

WHEREAS, Seller is
engaged in the Revo Business and Seller and its Affiliates own or otherwise have the right to use certain assets related thereto;
and

 

WHEREAS, Seller wishes,
for itself and on behalf of its Affiliates, to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller and
its Affiliates, certain assets and liabilities of the Revo Business, subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Article
I

Definitions

 

The following terms
have the meanings specified or referred to in this Article I:

 

“Affiliate” of
a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”), for purposes of this definition, and as used with respect to any Person, means the 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 securities, by Contract or otherwise. Notwithstanding anything to the contrary contained in this Agreement,
Luxottica Group and its Affiliates shall be deemed to be Affiliates of Seller.

 

“Agreed Claims”
has the meaning set forth in Section 7.05(c).

 

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

 

“Allocation
Schedule” has the meaning set forth in Section 2.06.

 

“Assigned
Contracts” has the meaning set forth in Section 2.01(b).

 

“Assignment
and Assumption Agreement” has the meaning set forth in Section 3.02(a).

 

“Assumed
Liabilities” has the meaning set forth in Section 2.03.

 

    	1

    	 

    

  

“Bill
of Sale” has the meaning set forth in Section 3.02(a).

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in New York,
New York are authorized or required by Law to be closed for business.

 

“Buyer”
has the meaning set forth in the preamble.

 

“Buyer Indemnitees”
has the meaning set forth in Section 7.02.

 

“Claim Certificate”
has the meaning set forth in Section 7.05(a).

 

“Closing” has
the meaning set forth in Section 3.01.

 

“Closing
Date” has the meaning set forth in Section 3.01.

 

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

 

“Confidentiality
Agreement” means the Confidentiality Agreement between Buyer and Luxottica Group with an effective date of
January 1, 2013.

 

“Contracts” means
all contracts, leases, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, bonds, guarantees, franchises,
Permits, understandings, arrangements, letters of intent and other written agreements, and any amendments thereto.

 

“Deductible”
has the meaning set forth in Section 7.04(a).

 

“Design
Patents” means all issued design patents and patent applications owned by Seller or its Affiliates and
directed to, claiming, or otherwise disclosing a Revo Product or a feature or component thereof or used or held for use exclusively
in connection with the Revo Business, a complete and accurate list of which is set forth in Section 4.06(a) of the Disclosure
Schedules, and all foreign counterparts, divisionals, continuations and continuations-in-part thereof and any other applications
which otherwise claims priority to any of the foregoing.

 

“Direct
Claim” has the meaning set forth in Section 7.05(c).

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by Seller and Buyer concurrently with the execution and
delivery of this Agreement.

 

“Displays”
has the meaning set forth in Section 2.01(e).

 

“Dollars
or $” means the lawful currency of the United States.

 

“Employees”
means collectively any former or current employee, leased employee, outsourced employee or temporary employee of Seller or any
of its Affiliates.

 

“Encumbrance” means
any lien, pledge, mortgage, deed of trust, security interest, charge, claim, easement, encroachment, option, right of first refusal,
indenture, license or lease to a third party, security agreement or other similar encumbrance or restriction or limitation on ownership
or use of property or irregularity in title thereto.

 

    	2

    	 

    

  

“Excluded
Assets” has the meaning set forth in Section 2.02.

 

“Excluded
Liabilities” has the meaning set forth in Section 2.04.

 

“Fundamental
Representations” means collectively, those representations and warranties contained in Section 4.01 (Organization
and Qualification of Seller), Section 4.02 (Authority of Seller), Section 4.03 (No Conflicts; Consents), Section
4.06(a) (Intellectual Property), Section 4.15 (Brokers), Section 5.01 (Organization of Buyer), Section 5.02
(Authority of Buyer), Section 5.03 (No Conflicts; Consents) and Section 5.04 (Brokers).

 

“Governmental
Authority” means any United States or non-United States federal, state, provincial or local government or
political subdivision thereof, or any agency, commission or instrumentality of such government or political subdivision, or any
self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that
the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal
of competent jurisdiction or any securities exchange.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by
or with any Governmental Authority.

 

“Indemnified
Party” has the meaning set forth in Section 7.04.

 

“Indemnifying
Party” has the meaning set forth in Section 7.04.

 

“Intellectual
Property” means any and all of the following in any jurisdiction throughout the world: (a) logos, brand names,
slogans, trade names, trademarks and service marks, trade dress, symbols, and other indicia of origin, whether registered or unregistered,
including all applications for registration and registrations of any of the foregoing and all renewals thereof, and, the goodwill
connected with the use of and symbolized by any of the foregoing (collectively, “Trademarks”); (b) copyrights,
including all applications for registration and registrations, and works of authorship, whether or not copyrightable and whether
registered or unregistered, and all moral and economic and other similar rights of authors; (c) trade secrets and confidential
information, know-how, concepts, processes, methods, techniques, technology and formulae; (d) inventions (whether or not patentable),
patents and patent applications, including divisionals, continuations, continuations-in-part and foreign equivalents thereof; (e)
websites, Internet domain names and related registrations; (f) computer code and programs and all related documentation, and all
databases, database rights and compilations; (g) rights of publicity (including all rights in a Person’s name, voice, signature,
biography, likeness, image and persona); and (h) all other intellectual property and industrial property rights and assets, and
all rights, interests and protections that are associated with, similar to, or required for the exercise of, any of the foregoing
and all renewals, derivatives or improvements of the foregoing.

 

“Intellectual
Property Assets” has the meaning set forth in Section 2.01(c).

 

    	3

    	 

    

  

“Inventory” has
the meaning set forth in Section 2.01(a).

 

“Knowledge
of Seller” has the meaning set forth in Section 8.11.

 

“Law” means
any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

“Legacy Endorsement
Materials” has the meaning set forth in Section 2.02(j).

 

“Losses” means
without duplication (a) any and all claims, actions, cause of actions, judgment, awards, losses, damages, liabilities, costs or
expenses, including reasonable attorneys’, accountants’ and other professional advisors’ fees and expenses and
(b) any losses or costs incurred in investigating, defending or settling any claim, action or cause of action described in clause
(a) whether or not the underlying claim, action or cause of action is actually asserted or is merely alleged or threatened.

 

“Luxottica
Group” means Luxottica Group S.p.A., the ultimate parent of Seller.  

 

“Luxottica
Group Assignment” has the meaning set forth in Section 3.02(a).

 

“Material
Adverse Effect” means any event, occurrence, fact, condition, circumstance, development, effect or change
that is materially adverse to (a) the Purchased Assets, Assumed Liabilities, or the condition (financial or otherwise) or results
of operations of the Revo Business taken as a whole, or (b) the ability of Seller to consummate the transactions contemplated hereby;
provided, however, that none of the following shall in and of itself constitute a “Material Adverse Effect”
or be considered in determining whether a “Material Adverse Effect” has occurred and “Material Adverse Effect”
shall not include any event, occurrence, fact, condition, or change, solely arising out of or attributable to: (i) any changes,
conditions or effects in the United States or foreign economies or securities or financial markets in general; (ii) economic changes,
conditions or effects that affect the sunglass industry in which the Revo Business operates; (iii) the effect of any changes in
applicable Laws; (iv) the announcement of this Agreement; or (v) conditions caused by acts of terrorism or war (whether or not
declared) or any man-made disaster or acts of God; other than, with respect to clauses (i), (ii), (iii) and (v), changes, conditions,
effects or circumstances that disproportionately and adversely impact the Revo Business relative to other companies in the sunglass
industry in which the Revo Business operates.

 

“Material
Contracts” has the meaning set forth in Section 4.05(a).

 

“Molds”
has the meaning set forth in Section 2.01(d).

 

“Oakley Domain
Name Assignment” has the meaning set forth in Section 3.02(a).

 

“Oakley Patent
Assignment” has the meaning set forth in Section 3.02(a).

 

    	4

    	 

    

  

“Occurrence”
shall mean any accident, happening or event which occurs or has occurred at any time on or prior to the Closing Date that is caused
or allegedly caused by any defect in manufacture, design, materials or workmanship including any failure or alleged failure to
warn or any breach or alleged breach of express or implied warranties or representations with respect to a product manufactured,
shipped, sold or delivered by or on behalf of Seller or any of its Affiliates in connection with the Revo Business which results
or is alleged to have resulted in injury or death to any Person or damage to or destruction of property (including damage to or
destruction of the product itself).

 

“Overlap Period”
shall mean any taxable year or other taxable period beginning on or before and ending after the Closing Date.

 

“Permits” means
all permits, licenses, franchises, approvals, certificates, rights, exemptions, authorizations and consents granted from or issued
by Governmental Authorities.

 

“Permitted
Encumbrances” means (a) liens for Taxes not yet due and payable or being contested in good faith by appropriate
procedures (in each case, for which adequate reserves have been made with respect thereto) and (b) mechanics’, carriers’,
workmen’s, repairmen’s or other like liens arising or incurred in the ordinary course of business securing amounts
that are not past due.

 

“Person” means
and includes an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association, limited liability partnership, limited partnership, group or other entity.

 

“Pre-Closing
Period” shall mean all taxable years or other taxable periods that end on or before the Closing Date and, with respect
to any Overlap Period, the portion of such taxable year or period ending on and including the Closing Date.

 

“Purchase
Price” has the meaning set forth in Section 2.05.

 

“Purchased
Assets” has the meaning set forth in Section 2.01.

 

“Representative” means,
with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants,
agents, managers and other agents of such Person.

 

“Revo
Business” means the design, manufacture, marketing, promotion, production, distribution and sale in various locations
throughout the world of Revo Product.

 

“Revo IP”
has the meaning set forth in Section 4.06(b).

 

“Revo Product”
means sunglasses, sunglass parts and cases, cleaning cloths, and leash and buoy accessories using, bearing, embodying or sold under
any Transferred Mark.

 

“Revo Records”
has the meaning set forth in Section 2.01(f).

 

“Seller” has
the meaning set forth in the preamble.

 

“Seller Indemnitees”
has the meaning set forth in Section 7.03.

 

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“Seller Transaction
Expenses” shall mean all expenses of Seller and its Affiliates incurred or to be incurred in connection with the negotiation,
preparation and execution of this Agreement and the consummation of the transactions contemplated hereby and the Closing, including
out-of pocket costs, fees and disbursements of financial advisors, attorneys, accountants and other advisors and service providers,
severance payments to directors, officers and employees, bonuses, retention payments and any other change-of-control or similar
payments payable as a result of or in connection with the transactions contemplated by this Agreement, payable by Seller or its
Affiliates. The Seller Transaction Expenses specifically include all expenses related to assignments or transfers of Intellectual
Property Assets made to Seller by Affiliates of the Seller prior to Closing, including all legal expenses and filing fees for recordation
with applicable Governmental Authorities. The Seller Transaction Expenses specifically exclude all expenses and filing fees related
to Buyer’s recordation of Intellectual Property Assets with applicable Governmental Authorities after Closing.

 

“Shared Seller
IP” shall mean all of the Revo IP other than the Intellectual Property Assets. Shared Seller IP includes the Utility
Patents.

 

“Special Damages”
has the meaning set forth in Section 7.04(e).

 

“Supply Agreement” has
the meaning set forth in Section 3.02(a).

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other
document required to be filed with respect to Taxes, including any schedule or attachment thereto, and including any amendment
thereof.

 

“Taxes” means
all federal, state, local, foreign and other income, gross receipts, sales, use, value added, capital gain, capital stock, social
security, production, ad valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding,
payroll, employment, unemployment, estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal),
real property gains, windfall profits, customs, duties or other taxes, fees, assessments, levies, or other governmental charges
in the nature of a tax, together with any interest, additions or penalties with respect thereto and any interest in respect of
such additions or penalties, and any liability for such amounts as a result of (a) being a transferee or successor or member of
a combined, consolidated, unitary or affiliated group, or (b) a contractual obligation to indemnify any Person.

 

“Third
Party Claim” has the meaning set forth in Section 7.05(a).

 

“Trademarks”
has the meaning set forth in the definition of “Intellectual Property”.

 

“Transaction
Documents” means this Agreement, the Bill of Sale, Assignment and Assumption Agreement, Supply Agreement,
Oakley Patent Assignment, Luxottica Group Assignment, Oakley Domain Name Assignment, Transition Letter Agreement and the other
agreements, instruments and documents required to be delivered at the Closing.

 

“Transfer
Regulations” has the meaning set forth in Section 4.10(a).

 

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“Transferred
Marks” mean the trade name or trademark REVO and all Trademarks, websites and domain names owned by Seller or its Affiliates
that include the term “Revo”, and all Trademarks that are used exclusively in connection with the Revo Business, including
the Trademarks set forth in Section 4.06(a) of the Disclosure Schedules.

 

“Transition
Letter Agreement” has the meaning set forth in Section 3.02(a).

 

“Utility Patents”
means the issued patents and patent applications owned by Seller and directed to, claiming, or otherwise disclosing a Revo Product
or a feature or component thereof or used or held for use in connection with the Revo Business that are also used in connection
with other businesses or products of Seller, which are set forth in Section 6.07 of the Disclosure Schedules, and all foreign
counterparts, divisionals, continuations and continuations-in-part thereof and any other applications which otherwise claims priority
to any of the foregoing.

 

Article
II

Purchase and Sale

 

Section 2.01       
Purchase and Sale of Assets. Subject to the terms and conditions set forth herein, at the Closing, Seller shall (and
shall cause its Affiliates to) sell, assign, transfer, convey and deliver (except with respect to the timing of delivery of, but
not the title to, the Inventory, Molds and Displays as set forth in Section 3.03), and Buyer shall purchase, all of Seller’s
and its Affiliates’ right, title and interest in, to and under the Purchased Assets free and clear of all Encumbrances of
any kind whatsoever except Permitted Encumbrances. “Purchased Assets” means the following assets owned by Seller
or its Affiliates:

 

(a)Sixty-Four Thousand
(64,000) units of finished goods inventory of Revo Product as set forth on Section 2.01(a) of the Disclosure Schedules (the
“Inventory”);

 

(b)all right, title
and interest in the Contracts set forth on Section 2.01(b) of the Disclosure Schedules (collectively, the “Assigned
Contracts”);

 

(c)all Intellectual
Property owned by Seller or any of its Affiliates that is exclusively used or held for use in connection with the Revo Business,
including the Transferred Marks, the Design Patents, and the other Intellectual Property set forth on Section 4.06(a) of
the Disclosure Schedules, and all rights thereunder, together with all goodwill associated therewith and all rights to enforce
such Intellectual Property with respect to past, present, and future infringements and misappropriations thereof (the “Intellectual
Property Assets”);

 

(d)all molds, tools
and dies that are or have been exclusively used or held for use by Seller or any of its Affiliates in connection with the Revo
Business (the “Molds”);

 

(e)except for the
Legacy Endorsement Materials, all samples, patterns, designs, packaging, labels, containers, (including the shape and graphic designs),
artwork, photography, product books, design books, marketing displays, copy, marketing, advertising and promotional materials (including
websites, print and online advertisements and marketing) that are or have been exclusively used or held for use by Seller or any
of its Affiliates in connection with the Revo Business, including all historical archival or design materials (the “Displays”);

 

    	7

    	 

    

  

(f)all books, records,
files (whether in paper or electronic format) relating to the Purchased Assets, including all prosecution histories and legal files
in the possession of Seller’s or its Affiliates’ legal departments related to or concerning the Intellectual Property
Assets, and all databases and data exclusively related to the Revo Business, its suppliers, manufacturers or contractors, or the
Revo Products (together with, in the case of information that is stored electronically, the media on which the same is stored)
(collectively, the “Revo Records”);

 

(g)to the extent
transferable in compliance with applicable Law, all lists of individual consumers (and such consumers’ information) that
are or have been used or held for use by Seller or its Affiliates exclusively in connection with the Revo Business;

 

(h)all lists of
commercial customers that are or have been used or held for use by Seller or its Affiliates exclusively in connection with the
Revo Business;

 

(h)to the extent
transferrable, all express or implied warranties, indemnities and guarantees in relation to any of the assets described in this
Section 2.01; and

 

(i)all goodwill
associated with any of the assets described in the foregoing clauses.

 

Section 2.02       
Excluded Assets. Buyer expressly understands and agrees that it is not purchasing or acquiring, and Seller is not selling
or assigning, the following properties, assets and other rights of Seller and its Affiliates, and all such assets and properties
shall be excluded from the Purchased Assets (the “Excluded Assets”);

 

(a)all accounts
or notes receivable of the Revo Business;

 

(b)all cash and
cash equivalents, bank accounts and securities of Seller;

 

(c)all Contracts
that are not Assigned Contracts;

 

(d)other than the
Intellectual Property set forth on Section 4.06(a) of the Disclosure Schedules, Intellectual Property owned or controlled
by Seller that is not used exclusively in connection with the Revo Business, including the Utility Patents, notwithstanding that
such Intellectual Property may be utilized by or embedded in Revo Product;

 

(e)the corporate
seals, organizational documents, minute books, stock books, Tax Returns, books of account or other records having to do with the
corporate organization of Seller, all employee-related or employee benefit-related files or records, and any other books and records
which Seller is prohibited from disclosing or transferring to Buyer under applicable Law and are required by applicable Law to
retain;

 

(f)all insurance
policies of Seller and all rights to applicable claims and proceeds thereunder;

 

(g)all Tax assets
(including duty and Tax refunds and prepayments) of Seller or any of its Affiliates that relate to the Revo Business or the Purchased
Assets and that are attributable to any Pre-Closing Period;

 

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(h)all rights to
any action, suit or claim of any nature available to or being pursued by Seller as of the date hereof, whether arising by way of
counterclaim or otherwise related exclusively to any of the Excluded Assets or the Excluded Liabilities;

 

(i)all assets,
properties and rights used by Seller in its business that are not used exclusively in the Revo Business;

 

(j)certain artwork,
photography and marketing materials owned by endorsers of the Revo Business prior to 2013 (other than Jimmy Chin) that Seller is
not permitted to assign to Buyer (the “Legacy Endorsement Materials”); and

 

(k)the rights which
accrue or will accrue to Seller under the Transaction Documents.

 

Section 2.03       
Assumed Liabilities. Subject to the terms and conditions set forth herein, Buyer shall assume and agree to pay, perform
and discharge when due the following liabilities and obligations of Seller to the extent solely and exclusively arising out of
or relating to the Purchased Assets accruing after the Closing in respect of the period after the Closing Date, other than the
Excluded Liabilities (collectively, the “Assumed Liabilities”):

 

(a)except as set
forth on Section 2.03(a) of the Disclosure Schedules, all liabilities and obligations arising under or relating to the Assigned
Contracts in respect of periods after the Closing, provided, that Buyer shall not assume or agree to pay, discharge or perform
any liabilities or obligations arising out of any breach by any Seller or any of their respective Affiliates of any provision of
any Assigned Contract;

 

(b)all liabilities
and obligations for Taxes for which Buyer is liable pursuant to Section 6.05;

 

(c)all customer
warranty claims in respect of Revo Product manufactured after the Closing Date by Buyer and/or its Affiliates and/or their respective
licensees (other than Seller or any of its Affiliates);

 

(d)all liabilities
and obligations related to the prosecution of the Design Patents and Trademarks described in Section 4.06(a) of the Disclosure
Schedules after the Closing; and

 

(e)all other liabilities
and obligations under the Permitted Encumbrances on the Purchased Assets as of the Closing arising out of or relating to Buyer’s
ownership or operation of the Revo Business and the Purchased Assets after the Closing, other than Seller’s and its Affiliates’
liabilities and obligations under the Transaction Documents.

 

Section 2.04       
Excluded Liabilities. Notwithstanding anything contained herein to the contrary, Buyer shall not assume or cause to
be assumed, or be deemed to have assumed and shall not be liable or responsible to pay, perform or discharge any liabilities or
obligations (whether known or unknown, fixed, absolute, matured, unmatured, accrued or contingent, now existing or after the date
hereof) of Seller or any of its Affiliates, other than Assumed Liabilities (collectively, the “Excluded
Liabilities”), including the following:

 

    	9

    	 

    

  

(a)all trade or
other accounts payable of Seller in connection with the Revo Business as of the Closing Date;

 

(b)any liabilities
or obligations arising out of or relating to Seller’s ownership or operation of the Revo Business and the Purchased Assets
on or prior to the Closing Date (including all liabilities and obligations of Seller and its Affiliates relating to the guaranty
of third-party obligations by or indemnification obligations of Seller and its Affiliates and all customer warranty claims or other
claims relating to Revo Product manufactured on or prior to the Closing Date or sold by Seller or its Affiliates, in each case
whether asserted before, on or after the Closing Date);

 

(c)any liabilities
or obligations relating to or arising out of the Excluded Assets;

 

(d)any liabilities
or obligations for Taxes relating to the Revo Business, the Purchased Assets or the Assumed Liabilities for any Pre-Closing Period,
including the portion of the Overlap Period that ends on or before the Closing Date;

 

(e)any liabilities
or obligations relating to (i) any Employee, or (ii) any labor, employment or social security matters relating to any such
Employee, including any liabilities or obligations arising out of or relating to any payment obligation, withholding obligation,
collective bargaining Contract, labor negotiation, statutory benefits, pension plan, profit sharing plan, deferred compensation
plan, accrued holiday benefit, accrued bonus, salary, bonus plan, phantom stock award, stock option or purchase plan, employment
Contract, consulting Contract, employee benefit plan, fines, Governmental Order, severance cost, notice of termination, information
and consulting obligations, mass layoffs and redundancy obligations, or any entitlements arising as a result of or in connection
with the consummation of the transactions contemplated hereby;

 

(f)any Taxes (i)
attributable to the Purchased Assets or the Revo Business with respect to any Pre-Closing Period, including the portion of the
Overlap Period that ends on or before the Closing Date or (ii) imposed on Oakley, Luxottica Group or any of their respective
Affiliates;

 

(g)any liabilities
or obligations arising out of or relating to indebtedness of any Seller or any of their respective Affiliates;

 

(h)any liabilities
or obligations arising out of or relating to any Contract which is not an Assigned Contract;

 

(i)intercompany
accounts payable;

 

(j)the liabilities
and obligations described on Section 2.03(a) of the Disclosure Schedules;

 

(k)any liabilities
or obligations related to the matters listed on Section 4.07(a) of the Disclosure Schedules or any other litigation, arbitration,
investigation, proceeding or claim pertaining to the Revo Business, the Purchased Assets, Seller or any of its Affiliates to the
extent based on a cause of action arising prior to the Closing Date, whether the commencement of such litigation, arbitration,
investigation, proceeding or claim is before, on or after the Closing Date;

 

    	10

    	 

    

  

(l)any Seller Transaction
Expenses;

 

(m)all liabilities
and obligations arising out of any breach under any provision of any Assigned Contract; and

 

(n)any liabilities
or obligations arising from product liability claims for which the injury or loss giving rise thereto (not just the delivery of
the notice of such claims) occurs prior to the Closing Date, including specifically all Losses caused by or arising out of any
alleged defect in design or manufacture of any products manufactured by the Revo Business prior to the Closing Date, whether the
commencement of any related litigation, arbitration, investigation, proceeding or claim is before, on or after the Closing Date.

 

Section 2.05       
Purchase Price. The aggregate purchase price for the Purchased Assets and the entry into the Transaction Documents
shall be the amount set forth in Exhibit A hereto (the “Purchase Price”).
The Purchase Price shall be paid at Closing by wire transfer of immediately available funds to accounts designated in writing
by Seller to Buyer prior to the Closing.

 

Section 2.06       
Allocation of Purchase Price. Prior to the date hereof, Seller and Buyer shall mutually agree upon a schedule allocating
the Purchase Price (and the Assumed Liabilities that are properly allocable under Section 1060 of the Code) (the “Allocation
Schedule”). The Allocation Schedule shall be prepared in accordance with Section 1060 of the Code. Seller
and Buyer agree to file their respective IRS Form 8594 and all federal, state and local Tax Returns in accordance with the Allocation
Schedule, and to file timely any information that may be required to be filed pursuant to treasury regulations promulgated under
Section 1060(b) of the Code.

 

Section 2.07       
Transfer of Purchased Assets and Assumed Liabilities. At the Closing, the Purchased Assets shall be sold, conveyed,
transferred, assigned and delivered (except with respect to the timing of the physical delivery of the Inventory, Molds and Displays
as set forth in Section 3.03) to Buyer, free and clear of all Encumbrances except for Permitted Encumbrances, and the Assumed
Liabilities shall be assumed by Buyer, pursuant to transfer and assumption Contracts, bills of sale in registrable form, endorsements,
assurances, conveyances, releases, discharges, assignments, certificates, drafts, checks or other instruments in such form as
is necessary to effect a sale, conveyance, transfer and assignment of the Purchased Assets and an assumption of the Assumed Liabilities
in the jurisdictions in which such transfers are to be made, as Buyer shall reasonably deem necessary, or as required by Law in
order to consummate the transaction and to vest in Buyer good and marketable title to the Purchased Assets free and clear of any
Encumbrances except for Permitted Encumbrances, which documents and instruments shall be executed (upon the terms and subject
to the conditions hereof) on the Closing Date by Seller (and, as applicable, Luxottica Group and its Affiliates) and Buyer.

 

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Article
III

Closing

 

Section 3.01       
Closing. Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by
this Agreement (the “Closing”) shall take place on the date hereof (the “Closing
Date”).

 

Section 3.02       
Closing Deliverables.

 

(a)At the Closing,
Seller shall deliver (or cause to be delivered) to Buyer the following:

 

(i)                
a bill of sale in the form of Exhibit B hereto (the “Bill of Sale”),
duly executed by Seller;

 

(ii)              
an assignment and assumption agreement in the form of Exhibit C hereto (the “Assignment
and Assumption Agreement”), duly executed by Seller;

 

(iii)            
a License and Supply Agreement in the form of Exhibit D hereto (the “Supply Agreement”), duly
executed by Seller and Sunglass Hut Trading, LLC, an Affiliate of Seller;

 

(iv)            
an Assignment of Patents in the form of Exhibit E hereto, which assignment shall transfer to Buyer all Design Patents
owned by Seller that are included in the Intellectual Property Assets (the “Oakley Patent Assignment”), duly
executed by Seller;

 

(v)              
an Assignment of Intellectual Property in the form of Exhibit F hereto, which assignment shall transfer to Buyer
all Transferred Marks and all Design Patents owned by Luxottica Group that are included in the Intellectual Property Assets (the
“Luxottica Group Assignment”), duly executed by Luxottica Group;

 

(vi)            
an Assignment of Domain Names in the form of Exhibit G hereto, which assignment shall transfer to Buyer all Internet
domain names owned by Seller that are included in the Intellectual Property Assets (the “Oakley Domain Name Assignment”),
duly executed by Seller; and

 

(vii)          
the Transition Letter Agreement in the form of Exhibit H hereto (the “Transition Letter Agreement”),
duly executed by Seller; and

 

(viii)        
such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory
to Buyer, as may be required to give effect to this Agreement.

 

(b)At the Closing,
Buyer shall deliver (or cause to be delivered) to Seller (or, as applicable, Luxottica Group) the following:

 

(i)                
an amount in cash equal to the Purchase Price, payable by wire transfer of immediately available funds in accordance with
Exhibit A;

 

    	12

    	 

    

  

(ii)              
evidence obtained by Buyer from IDB Bank pertaining to the initiation and confirmation of the wire transfer(s) of the Purchase
Price, such evidence to be satisfactory to Seller;

 

(iii)            
the Assignment and Assumption Agreement duly executed by Buyer;

 

(iv)            
the Supply Agreement duly executed by Buyer;

 

(v)              
the Oakley Patent Assignment duly executed by Buyer;

 

(vi)            
the Luxottica Group Assignment duly executed by Buyer;

 

(vii)          
the Oakley Domain Name Assignment duly executed by Buyer;

 

(viii)        
the Transition Letter Agreement duly executed by Buyer; and

 

(ix)            
such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory
to Seller, as may be required to give effect to this Agreement.

 

Section 3.03       
Post-Closing Deliverables. Section 3.04

 

(a)No later than
September 30, 2013, Seller shall deliver to Buyer (or Buyer’s designee as specified by Buyer) the Inventory, which shall
be shipped, at Buyer’s sole expense, to a location designated by Buyer.

 

(b)No later than
September 30, 2013, Seller shall deliver to Buyer (or Buyer’s designee as specified by Buyer) all Molds pertaining to non-active
skus of Revo Product, which shall be shipped, at Buyer’s sole expense, to a location designated by Buyer.

 

(c)No later than
the nine (9) month anniversary of the Closing Date, Seller shall deliver to Buyer (or Buyer’s designee as specified by Buyer)
all Molds pertaining to active skus of Revo Product, which shall be shipped, at Buyer’s sole expense, to a location designated
by Buyer. Seller and Buyer agree that all Molds pertaining to active skus of Revo Product shall be owned by Buyer on the Closing
Date but shall remain in the possession of Seller for a period not to exceed nine (9) months after the Closing Date in order for
Seller to manufacture Revo Product pursuant to the Supply Agreement.

 

(d)No later than
September 30, 2013, Seller shall deliver to Buyer (or Buyer’s designee as specified by Buyer) the Displays, of which (i)
the Displays located at various customer locations or online shall not be shipped to Buyer but shall become the property of Buyer,
and (ii) the Displays in Seller’s corporate inventory shall be shipped, at Buyer’s sole expense, to a location designated
by Buyer.

 

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Article
IV

Representations and Warranties of Seller

 

Except as set forth
in the Disclosure Schedules, Seller represents and warrants to Buyer that the statements contained in this Article IV are
true and correct as of the date hereof.

 

Section 4.01       
Organization and Qualification of Seller. Seller is a corporation duly organized, validly existing and in good
standing under the Laws of the state of Washington. Seller and its Affiliates have all necessary corporate and other power and
authority to own the assets now owned by Seller and its Affiliates and to carry on the Revo Business as currently conducted. Seller
and its Affiliates are duly licensed or qualified to do business and are in good standing in each jurisdiction in which the ownership
of the Purchased Assets or the operation of the Revo Business as currently conducted makes such licensing or qualification necessary,
except where the failure to be so licensed, qualified or in good standing has not had and would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

Section 4.02       
Authority of Seller. Seller and its Affiliates have all necessary corporate and other power and authority to enter
into this Agreement and the other Transaction Documents to which Seller and/or such Affiliate is a party, to carry out their respective
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery
by Seller and its Affiliates of this Agreement and any other Transaction Document to which Seller and/or such Affiliate is a party,
the performance by Seller and its Affiliates of their respective obligations hereunder and thereunder and the consummation by
Seller and its Affiliates of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate
or other action on the part of Seller and its Affiliates. This Agreement has been duly executed and delivered by Seller, and (assuming
due authorization, execution and delivery by Buyer) this Agreement constitutes a legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in equity). At the Closing, each Transaction Document shall have been
duly executed and delivered by Seller and its Affiliates, as applicable, and (assuming due authorization, execution and delivery
by Buyer) each such Transaction Document shall constitute a legal, valid and binding obligation of Seller and/or such Affiliate,
enforceable against Seller and/or such Affiliate in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general
principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

Section 4.03       
No Conflicts; Consents. The execution, delivery and performance by Seller and its Affiliates of this Agreement and
the other Transaction Documents to which Seller and/or such Affiliate is a party, and the consummation of the transactions contemplated
hereby and thereby, do not and will not: (a) result in a violation or breach of or conflict with any provision of the certificate
of incorporation or by-laws (or equivalent organizational documents) of Seller or such Affiliates, in each case, amended to the
date of this Agreement; (b) create any Encumbrance (other than a Permitted Encumbrance) upon any Purchased Asset; (c) result in
a violation or breach of or conflict with any provision of any Law or Governmental Order applicable to Seller, any of such Affiliates,
the Revo Business or the Purchased Assets; or (d) except as set forth in Section 4.03 of the Disclosure Schedules, require
the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default
under or result in the acceleration of any Material Contract. No consent, approval, Permit, or Governmental Order of, declaration
or filing with, or notice to, any Governmental Authority is required by or with respect to Seller or any of its Affiliates in
connection with the execution and delivery of this Agreement or any of the other Transaction Documents and the consummation of
the transactions contemplated hereby and thereby. Seller and its Affiliates have obtained all consents and approvals set forth
in Section 4.03 of the Disclosure Schedules and no other consents or approvals of any Person are necessary for the execution
and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby
and thereby, including the transfer of all the Purchased Assets.

 

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Section 4.04       
Absence of Certain Changes, Events and Conditions. Except as set forth on Section 4.04 of the Disclosure Schedules,
since January 1, 2013, Seller has operated the Revo Business in the ordinary course of business in all material respects and there
has not been, with respect to the Revo Business, any:

 

(a)incurrence of
any indebtedness for borrowed money exclusively in connection with the Revo Business, except unsecured current obligations and
liabilities incurred in the ordinary course of business;

 

(b)sale, assignment,
abandonment, cancellation, transfer, license or other disposition of any of the Purchased Assets, except for the sale of inventory
in the ordinary course of business;

 

(c)imposition of
any Encumbrance upon any of the Purchased Assets, except for Permitted Encumbrances; or

 

(d)event, circumstance,
development, state of facts, occurrence, change or effect which has had or would reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect.

 

Section 4.05       
Material Contracts.

 

(a) Section
4.05(a) of the Disclosure Schedules sets forth an accurate and complete list as of the date hereof of each of the following
Contracts (x) by which any of the Purchased Assets or Assumed Liabilities are bound or affected or (y) to which Seller or any of
its Affiliates are parties or by which Seller or any of its Affiliates are bound in connection with the Revo Business, the Purchased
Assets or the Assumed Liabilities (all such Contracts required to be set forth on Section 4.05(a) of the Disclosure Schedules,
collectively, the “Material Contracts”):

 

(i)                
all Contracts relating to the Revo Business involving aggregate consideration in excess of Twenty-Five Thousand Dollars
($25,000) or requiring performance by any party more than one (1) year from the date hereof, which, in each case, cannot be cancelled
without penalty or without more than sixty (60) days’ notice;

 

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(ii)              
all Contracts that relate to the sale of any of the Purchased Assets, other than sales of inventory in the ordinary course
of business;

 

(iii)            
except for agreements relating to trade receivables, all Contracts relating to indebtedness (including guarantees) related
exclusively to the Revo Business;

 

(iv)            
all Contracts granting or evidencing an Encumbrance on any Purchased Asset or any other property or asset of Seller or any
of its Affiliates and used in connection with the Revo Business, other than a Permitted Encumbrance;

 

(v)              
all Contracts limiting the ability of Seller or any of its Affiliates to (A) engage in the Revo Business or to use any Intellectual
Property Assets in any capacity or (B) compete with any Person or in any geographical area with respect to the Revo Business;

 

(vi)            
all Contracts relating to the Revo Business (other than this Agreement and any agreement or instrument entered into pursuant
to this Agreement) with (A) Seller or any of its Affiliates or (B) Seller or any of its Affiliates or any current or former officer
or director of Seller or any of its Affiliates;

 

(vii)          
all Assigned Contracts; and

 

(viii)        
all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing,
co-promotion, co-packaging, joint development or similar arrangement.

 

(b)Other than the
Material Contracts, there are no Contracts which license any of the Intellectual Property Assets, including the Transferred Marks,
to any other Person or allow any Person to procure, distribute, import or sell any Revo Product. Except as set forth on Section
4.05(b) of the Disclosure Schedules, neither Seller nor any of its Affiliates is in breach of, and there exists no default
or event of default, nor any event, occurrence, condition or act (including the transactions contemplated hereby) which, with the
giving of notice, the lapse of time or the happening of any other event or condition, would become a default or event of default
thereunder with respect to any Material Contract other than any such default, event of default, event, occurrence, condition or
act which has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
Each Material Contract has not been terminated or been repudiated by any party thereto. Each Material Contract is in full force
and effect and is the legal, valid and binding obligation of Seller and its Affiliates, as applicable, and each of the other parties
thereto, enforceable in accordance with the terms thereof, except to the extent that its enforceability may be subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and implied covenant of
good faith and fair dealing. All the covenants to be performed by Seller or its Affiliates under any Material Contract have been
fully performed in all material respects. To the Knowledge of Seller, all of the covenants to be performed by any other party to
any Material Contract have been fully performed in all material respects.

 

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Section 4.06       
Intellectual Property.

 

(a)Section 4.06(a)
of the Disclosure Schedules contains a complete and accurate list of all Design Patents and all other patents, patent applications,
registered copyrights and applications for registration thereof, registered trademarks and service marks and applications for registration
thereof, Internet domain names, and all Transferred Marks not subject to a registration or application for registration thereof
that are included in the Intellectual Property Assets. Seller or Luxottica Group owns, free and clear of all Encumbrances, all
Intellectual Property Assets set forth on such schedule. To the extent indicated on such schedule, the Intellectual Property Assets
listed on Section 4.06(a) of the Disclosure Schedules have been duly registered in, filed in or issued by the United
States Patent and Trademark Office, the United States Copyright Office, a duly accredited and appropriate domain name registrar,
or the appropriate Governmental Authorities of other jurisdictions (foreign and domestic).

 

(b)Except as set
forth in Section 4.06(b) of the Disclosure Schedules, Seller or Luxottica Group owns, free and clear of all Encumbrances,
or has the right to use all Intellectual Property owned, used or held for use by Seller and/or its Affiliates on or prior to the
Closing Date in connection with the Revo Business (the “Revo IP”). Except for the Shared Seller IP, including
the Utility Patents, the Intellectual Property Assets represent the Intellectual Property necessary to manufacture, distribute
and sell Revo Product consistent with Revo Product manufactured, distributed and sold as of Closing and conduct the Revo Business
in substantially the same manner as currently conducted. Other than the Utility Patents and the Design Patents, there are no patents
or patent applications owned by Seller or any of its Affiliates that are or would otherwise be infringed by a Revo Product or the
conduct of the Revo Business prior to or as of the Closing.

 

(c)Except as set
forth in Section 4.06(c) of the Disclosure Schedules, (i) the conduct of the Revo Business and the use of the Intellectual
Property Assets (including the manufacturing, marketing, licensing, sale or distribution of Revo Product) do not infringe, violate,
dilute or misappropriate the Intellectual Property of any Person; and (ii) neither Seller nor its Affiliates have received any
notice or claim (including threats or offers to license and cease and desist communications) from any Person challenging the right
of the Seller or its Affiliates, manufacturers, contractors or licensees to use any of the Intellectual Property Assets, Seller’s
or its Affiliates’ ownership or the validity or enforceability of the Intellectual Property Assets, or alleging any infringement,
misappropriation, or violation of any Person’s Intellectual Property rights in connection with the Revo Business; and (iii)
neither Seller nor its Affiliates have asserted any claim of a violation, infringement, misappropriation or misuse by any Person
of any Intellectual Property Assets. To the Knowledge of Seller, except as set forth in Section 4.06(c) of the Disclosure
Schedules, no Person is infringing, violating, misappropriating or misusing any Intellectual Property Assets.

 

(d)Except as set
forth in Section 4.06(d) of the Disclosure Schedules, Seller and its Affiliates are not aware of any third party uses of
the mark REVO or a term confusingly similar thereto, which might reasonably be found to prevent or restrict Buyer or its licensees
in using the Transferred Marks in connection with goods and services in international trademark class 9 in any particular country.

 

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(e)Except pursuant
to the Contracts listed in Section 4.06(e) of the Disclosure Schedules, the Seller and its Affiliates have not entered into
any Contract to indemnify any other Person in connection with the Revo Business, the Intellectual Property Assets or any Revo IP
against any charge of infringement, misappropriation or violation of any Intellectual Property rights. Other than the Assigned
Contracts, there are no Contracts containing any license or rights concerning Intellectual Property used or held for use exclusively
in connection with the Revo Business.

 

Section 4.07       
Legal Proceedings; Governmental Orders.

 

(a)Except as set
forth in Section 4.07(a) of the Disclosure Schedules, there are no actions, suits, claims, investigations, audits or other
legal proceedings (including arbitration or administrative proceedings, interferences, cancellation proceedings, oppositions or
other contested proceedings), at law or in equity, pending or, to the Knowledge of Seller, threatened against or by Seller or any
of its Affiliates either (i) relating to the Revo Business, the Purchased Assets or the Assumed Liabilities or (ii) that challenge
or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

 

(b)Except as set
forth in Section 4.07(b) of the Disclosure Schedules, there are no outstanding Governmental Orders and no unsatisfied judgments,
penalties or awards against or affecting the Revo Business, the Purchased Assets or the Assumed Liabilities.

 

Section 4.08       
Compliance With Laws; Permits.

 

(a)Except as set
forth in Section 4.08(a) of the Disclosure Schedules, Seller is in material compliance with all Laws applicable to the conduct
of the Revo Business as currently conducted or the ownership and use of the Purchased Assets.

 

(b)All material
Permits used in, necessary, advisable or required to conduct the Revo Business as currently conducted or for the ownership and
use of the Purchased Assets have been obtained by Seller and are in the possession of Seller, and Seller has made all registrations
or filings with, or notices to any Governmental Authority or any other Person necessary or advisable for the lawful conduct of
the Revo Business or necessary or advisable for the lawful ownership of the Purchased Assets. No proceeding to modify, suspend,
revoke, withdraw, terminate or otherwise limit any such Permit is pending, or, to the Knowledge of Seller, threatened and Seller
does not know of any valid basis for such proceeding, including the transactions contemplated hereby.

 

Section 4.09       
Taxes. 

 

Except as set forth in
Section 4.09 of the Disclosure Schedules,

 

(a)Seller and its
Affiliates have timely filed, or will timely file (taking into account any valid extensions), all Tax Returns with respect to the
Revo Business or the Purchased Assets required to be filed on or prior to the Closing Date. Neither Seller nor any of its Affiliates
is currently the beneficiary of any extension of time within which to file any material Tax Return other than extensions of time
to file Tax Returns obtained in the ordinary course of business.

 

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(b)All material
Taxes and Tax liabilities due and payable on or prior to the Closing Date by or with respect to the income or operations of the
Revo Business or the Purchased Assets for all Pre-Closing Periods have been timely paid or will be timely paid in full.

 

(c)(A) Neither
Seller nor any of its Affiliates has been the subject of an audit or other examination of Taxes by the tax authorities of any nation,
state or locality with respect to the Revo Business or the Purchased Assets; (B) no such audit is contemplated in writing or pending;
and (C) neither Seller nor its Affiliates has received any written notices from any taxing authority relating to any issue that
could affect any Tax liability with respect to the income or operations of the Revo Business or the Purchased Assets.

 

(d)Neither Seller
nor its Affiliates (A) has entered into a contract or waiver or been requested to enter into a contract or waiver extending any
statute of limitations relating to the payment or collection of Taxes with respect to the income or operations of the Revo Business
or the Purchased Assets that has not expired (other than extensions of time to file Tax Returns obtained in the ordinary course),
or (B) is presently contesting the Tax liability with respect to the income or operations of the Revo Business or the Purchased
Assets before any Governmental Authority.

 

(e)All material
Taxes that Seller or any of its Affiliates is (or was) required by Law to withhold or collect with respect to the income or operations
of the Revo Business or the Purchased Assets in connection with amounts paid or owing to any employee, independent contractor,
creditor, equity holder or other third party have been duly withheld or collected, and have been timely paid over to the proper
authorities to the extent due and payable.

 

(f)None of the
Purchased Assets is an equity interest in a partnership or a corporation (or an entity treated as a partnership or a corporation)
for U.S. federal income tax purposes.

 

(g)The representations
and warranties set forth in this Section 4.09 are Seller’s sole and exclusive representations and warranties regarding
Tax matters.

 

Section 4.10       
Employees.

 

(a)Neither Seller
nor its Affiliates have any Employees who will transfer with the Purchased Assets to Buyer or any of its Affiliates by operation
of law, under any applicable Transfer Regulations or individual or collective bargaining Contract, or who are otherwise entitled
by Law to be offered employment with Buyer or any of its Affiliates, as a result of or in connection with the consummation of the
transactions contemplated hereby. “Transfer Regulations” shall mean (i) in relation to any member state of the
European Union, the Council Directive 2001/23/EC of 12 March 2001, as amended, reenacted, extended or consolidated from time to
time and any national Law transposing or implementing it, and (ii) in relation to any other jurisdiction, any national or local
Law that provides for the transfer of employment upon the transfer and/or sale of an undertaking, a business, parts of an undertaking
or parts of a business.

 

(b)Neither Seller
nor its Affiliates have any obligation to inform and consult with any Employees or any Employee’s representatives, trade
unions, works council, or other labor organization, as a result of or in connection with the consummation of the transactions contemplated
hereby.

 

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Section 4.11       
Sufficiency of Assets. Except for the Shared Seller IP, including the Utility Patents, which are not being transferred
to Buyer hereunder, the sale and transfer of the Purchased Assets will constitute a conveyance to Buyer, free and clear of any
Encumbrances, other than Permitted Encumbrances, of all the assets, properties, interests and rights (including tangible and intangible
personal property) owned or used or held for use by Seller and/or its Affiliates and necessary to conduct the Revo Business in
substantially the same manner as currently conducted.

 

Section 4.12       
Inventory. The Inventory is in the physical possession of Seller, and no Inventory has been pledged as collateral or
otherwise is subject to any Encumbrance (other than a Permitted Encumbrance) or is held on consignment from others. The Inventory
was acquired or produced in the ordinary course of business. The Inventory is undamaged and is presently useable and saleable
in the ordinary course of business consistent with Seller’s current quality standards for Revo Product.

 

Section 4.13       
Customers and Suppliers. Section 4.13 of the Disclosure Schedules sets forth an accurate and complete list of
each supplier and customer accounting for more than five percent (5%) of the consolidated purchases and sales, as the case may
be, of Seller and its Affiliates in respect of the Revo Business, for the eighteen (18) month period ended June 30, 2013. Except
as set forth in Section 4.13 of the Disclosure Schedules, since January 1, 2013, no supplier or customer has cancelled
or otherwise terminated, or to the Knowledge of Seller, threatened to cancel or otherwise terminate, its relationship with Seller
or any of its Affiliates with respect to the Revo Business. Since January 1, 2013, neither Seller nor any of its Affiliates has
received any written notice that any supplier or customer may cancel or otherwise materially and adversely modify its relationship
with Seller or any of its Affiliates or limit its services, supplies or materials to Seller or any of its Affiliates in respect
of the Revo Business, or its usage or purchase of the services and products of Seller and its Affiliates with respect to the Revo
Business, either as a result of the transactions contemplated hereby or otherwise.

 

Section 4.14       
Product Liability.

 

(a)There have been
no legal proceedings or suits relating to the Revo Business or the Purchased Assets by or before any Governmental Authority against
or involving Seller or any of its Affiliates or concerning any Revo Product manufactured, shipped, sold or delivered by or on behalf
of any of them relating to or resulting from an alleged defect in design, manufacture, materials or workmanship of any product
manufactured, shipped, sold or delivered by or on behalf of Seller or any of its Affiliates with respect to the Revo Business or
any alleged failure to warn, or any alleged breach of implied warranties or representations, and, to the Knowledge of Seller, none
has been threatened.

 

(b)To the Knowledge
of Seller, there has not been any Occurrence relating to the Revo Business or the Purchased Assets that has had or would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

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(c)There has not
been any product recall, post-sale warning or similar action with respect to any Revo Product manufactured (or to be manufactured),
shipped, sold or delivered by or on behalf of Seller or any of its Affiliates.

 

(d)To the Knowledge
of Seller, there have been no material defects in design, manufacturing, materials or workmanship including any failure to warn,
or any breach of express or implied warranties or representations, which involve any Revo Product manufactured, shipped, sold or
delivered by or on behalf of Seller or any of its Affiliates.

 

Section 4.15       
Brokers.

 

(a)Except for Tegris
LLC (whose fees and expenses shall be paid by Seller and shall constitute Seller Transaction Expenses) no broker, finder, firm
or investment banker or any other Person is entitled to any brokerage, finder’s or other fee or commission in connection
with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf
of Seller.

 

Section 4.16       
No Other Representations and Warranties. Except for the representations and warranties contained in this Article
IV (including the related portions of the Disclosure Schedules), neither Seller, nor any other Person, has made or makes any
other express or implied representation or warranty, either written or oral, on behalf of Seller including any representation
or warranty as to the accuracy or completeness of any information regarding the Revo Business and the Purchased Assets furnished
or made available to Buyer and its Representatives, or as to the future revenue, profitability or success of the Revo Business,
or any representation or warranty arising from statute or otherwise in law.

 

Article
V

Representations and Warranties of Buyer

 

Except as set forth
in the Disclosure Schedules, Buyer represents and warrants to Seller that the statements contained in this Article V are
true and correct as of the date hereof.

 

Section 5.01       
Organization of Buyer. Buyer is a limited liability company duly organized, validly existing and in good standing under
the Laws of the state of Delaware and has all necessary limited liability company power and authority to own, operate or lease
the properties and assets now owned, operated or leased by it and to carry on its business as currently conducted.

 

Section 5.02       
Authority of Buyer. Buyer has all necessary limited liability company power and authority to enter into this Agreement
and the other Transaction Documents to which Buyer is a party, to carry out its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction
Document to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation
by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the
part of Buyer. This Agreement has been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery
by Seller) this Agreement constitutes a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws
affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in
a proceeding at law or in equity).

 

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Section 5.03       
No Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the other Transaction
Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not:
(a) result in a violation or breach of or conflict with any provision of the certificate of incorporation or by-laws of Buyer,
in each case, amended as of the date of this Agreement; (b) result in a violation or breach of or conflict with any provision
of any Law or Governmental Order applicable to Buyer; or (c) except as set forth in Section 5.03 of the Disclosure Schedules,
require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute
a default under or result in the acceleration of any agreement to which Buyer is a party, except in the cases of clauses (b) and
(c), where the violation, breach, conflict, default, acceleration or failure to give notice would not have a material adverse
effect on Buyer’s ability to consummate the transactions contemplated hereby. No consent, approval, Permit, Governmental
Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Buyer in connection
with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions
contemplated hereby and thereby, except for such consents, approvals, Permits, Governmental Orders, declarations, filings or notices
which would not have a material adverse effect on Buyer’s ability to consummate the transactions contemplated hereby and
thereby.

 

Section 5.04       
Brokers. No broker, finder, firm or investment banker or any other Person is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document
based upon arrangements made by or on behalf of Buyer.

 

Section 5.05       
Sufficiency of Funds. Buyer has sufficient cash on hand or other sources of immediately available funds to enable it
to make payment of the Purchase Price and consummate the transactions contemplated by this Agreement.

 

Section 5.06       
Solvency. Immediately after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall:
(a) be able to pay its debts as they become due; (b) own property and/or assets that have a fair saleable value greater than the
amounts required to pay its existing debts (including a reasonable estimate of the amount of all contingent liabilities) as they
become absolute and matured; and (c) have adequate capital to carry on its business. No transfer of property is being made and
no obligation is being incurred in connection with the transactions contemplated hereby with the intent to hinder, delay or defraud
either present or future creditors of Buyer. In connection with the transactions contemplated hereby, Buyer has not incurred,
nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

 

Section 5.07       
Legal Proceedings. There are no actions, suits, claims, investigations or other legal proceedings pending or, to Buyer’s
knowledge, threatened against or by Buyer or any Affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay
the transactions contemplated by this Agreement.

 

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Section 5.08       
Independent Investigation. Buyer has conducted its own independent investigation, review and analysis of the Revo Business
and the Purchased Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises,
books and records, and other documents and data of Seller for such purpose. Buyer acknowledges and agrees that: (a) in making
its decision to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon
its own investigation and the express representations and warranties of Seller set forth in Article IV of this Agreement
(including related portions of the Disclosure Schedules); and (b) neither Seller, nor any other Person has made any representation
or warranty as to Seller, the Revo Business, the Purchased Assets or this Agreement, except as expressly set forth in Article
IV of this Agreement (including the related portions of the Disclosure Schedules).

 

Section 5.09       
No Other Representations and Warranties. Except for the representations and warranties contained in this Article
V, neither Buyer nor any other Person has made or makes any other express or implied representation or warranty, either written
or oral, on behalf of Buyer. Buyer hereby disclaims any other express or implied representations or warranties with respect to
itself or such other Person.

 

Article
VI

Covenants

 

Section 6.01       
Transaction Documents. From and after the Closing, Seller shall not, and shall cause its Affiliates not to, use any
of the Intellectual Property Assets, conduct any Revo Business or manufacture, distribute or sell any Revo Product other than
pursuant to and in accordance with the Transaction Documents. Seller shall, and shall cause its Affiliates to, comply with the
terms of the Transaction Documents.

 

Section 6.02       
Notification of Certain Matters. During the period beginning on the Closing Date and ending on the one (1) year anniversary
of the Closing Date, Seller and its Affiliates shall promptly notify Buyer in writing of (a) any actions, suits, claims or proceedings
commenced or, to the Knowledge of Seller, threatened in writing, relating to the Revo Business, the Purchased Assets or the Assumed
Liabilities, (b) any written notice of a default or event that, with notice or lapse of time or both, would become a default under
any Contract disclosed (or required to be disclosed) on Section 4.05(a) of the Disclosure Schedules, or (c) any written
notice from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated
by this Agreement.

 

Section 6.03       
Customer Letter; Public Announcements. Seller and Buyer shall jointly prepare a letter to customers of the Revo Business,
in substantially the form of Exhibit I hereto, to be sent to such customers within thirty (30) days after the Closing.
None of the parties hereto (nor any of their respective Affiliates) shall make any public announcements, disclosures to any third
party or news releases pertaining to this Agreement, its existence or any of its contents without the prior written consent of
the other party (which consent shall not be unreasonably withheld, conditioned or delayed), except as may be required by Law,
regulatory process or securities exchange. In the event any party or its Affiliate determines that disclosure is required, such
party shall provide advance notice and an advance copy of such disclosure to the other party unless prohibited by the terms of
the applicable order, subpoena, request for disclosure or similar instrument, and in all cases such other party will have the
right to approve (which approval shall not be unreasonably withheld, conditioned or delayed) any reference to such other party
or any of its Affiliates and, in the case where information to be disclosed is deemed by either party to be of a sensitive nature
or otherwise eligible for confidential treatment under applicable rules and regulations, the parties agree that they will use
commercially reasonable efforts to cooperate to prepare the appropriate documentation and filings (including redacting, to the
extent permitted by Law, any sensitive information requested by either party from the applicable disclosures and agreements).

 

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Section 6.04       
Bulk Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar
Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.
If requested by Seller, Buyer agrees to provide applicable resale certificate(s) to Seller. In the
event any claim is made by any creditor of Seller against Buyer or related to the transactions contemplated hereby which could
have been asserted under any bulk sales, bulk transfer or similar Laws of any jurisdiction,
Buyer shall notify Seller of such claim and Seller shall have thirty (30) days in which to satisfy or discharge such claim, or
to take appropriate defensive action to dispute such claim in accordance with Article VII (Indemnification) hereof. Seller
shall indemnify Buyer for all Losses (including any Tax liabilities) resulting from non-compliance with any such Laws.

 

Section 6.05       
Transfer Taxes. All transfer, documentary, sales, use, stamp, registration and other such Taxes (other than any value
added Taxes) and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction
Documents shall be borne and paid by Buyer when due. Buyer shall, at its own expense, timely file any Tax Return or other document
with respect to such Taxes or fees (and Seller shall cooperate with respect thereto as necessary).

 

Section 6.06       
Tax Matters. All Taxes and Tax liabilities with respect to the income or operations of the
Revo Business or the ownership of the Purchased Assets that relate to the Overlap Period shall be apportioned between Seller on
one hand and Buyer on the other as follows: (i) in the case of Taxes other than sales and use and withholding Taxes, on a per
diem basis; and (ii) in the case of sales and use and withholding Taxes, as determined as if there was a closing of the books
and records on the Closing Date. Seller shall be liable for Taxes with respect to the income or operations of the Revo Business
or the ownership of the Purchased Assets that are attributable to all Pre-Closing Periods, and Buyer shall be liable for such
Taxes to the extent attributable to taxable periods beginning after the Closing Date or the portion of an Overlap Period beginning
after the Closing Date. 

 

Section 6.07       
Covenant Not to Sue. As of the Closing, Seller, for itself and on behalf of its Affiliates, covenants not to sue, and
agrees, for itself and on behalf of its Affiliates, not to object to, oppose or otherwise challenge the use by Buyer and/or its
Affiliates and/or their respective successors, assigns, licensees, sublicensees, contractors, manufacturers, agents and/or representatives
of the Utility Patents and any other Shared Seller IP in connection with Revo Product, the Revo Business or any other future goods
and services developed or offered using, bearing, embodying or sold under any Transferred Mark, or a Trademark confusingly similar
to any Transferred Mark. The foregoing covenant not to sue will survive any change of control of Seller, its Affiliates, Buyer
and/or its Affiliates and any sale, assignment, license, transfer or disposition of any Shared Seller IP, including any of the
Utility Patents, the Purchased Assets or the Revo Business, and Buyer, Seller and their respective Affiliates shall ensure that
any successor in interest to any of the foregoing assets agrees in writing to the terms of the covenant not to sue set forth in
this Section 6.07. Buyer shall agree that it shall not make reference to the Utility Patents or Seller’s High Definition
OpticsTM (HDOTM) in its marketing materials for Revo Product. Subject to Seller and its Affiliates’ compliance
with the terms of the covenant not to sue set forth in this Section 6.07, Buyer agrees not to challenge or contest, either
directly or indirectly, the validity or enforceability of any of the Utility Patents or their continuations, continuations-in-part,
divisionals, reissues or reexaminations.

 

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Section 6.08       
Commercial Accounts and Customer Warranty Claims.

 

(a)For a period
of ninety (90) days after the Closing Date, Seller shall, and shall cause its Affiliates to, accept return shipments from commercial
accounts, of Revo Product manufactured by Seller and/or its Affiliates, whether manufactured (i) on or prior to the Closing Date
or (ii) pursuant to any Transaction Document. Notwithstanding the foregoing, the decision as to whether to accept returns shall
be at Seller’s reasonable discretion in accordance with Seller’s standard procedures for acceptance of product returns
from commercial accounts.

 

(b)Seller shall,
and shall cause its Affiliates to, be responsible for and handle all customer warranty claims for a period of one (1) year after
the Closing Date for claims made in the United States, and for a period of two (2) years after the Closing Date for claims made
in Europe or Australia, related to all Revo Product manufactured by Seller and/or its Affiliates, whether manufactured (i) on or
prior to the Closing Date or (ii) pursuant to any Transaction Document.

 

(c)Buyer shall
be responsible for and handle all customer warranty claims related to all Revo Product manufactured by Buyer, its Affiliates and/or
their respective licensees (other than Seller and/or its Affiliates) after the Closing.

 

(d)Seller shall
be responsible for and shall indemnify Buyer from any and all product liability claims, actions, loss, liability, judgments, expenses
and costs (including reasonable attorneys’ fees) related to (i) the Inventory included in the Purchased Assets; and (ii)
Revo Product or other products using the Intellectual Property Assets or any other Revo IP manufactured prior to the Closing Date
or sold by Seller or its Affiliates, in each case whether asserted before, on or after the Closing Date.

 

Section 6.09       
Further Assurances. Following the Closing, without further consideration, each of the parties hereto shall, and shall
cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and
take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions
contemplated by this Agreement and the other Transaction Documents, including (a) such further actions, at Buyer’s expense,
as may be reasonably required to register in the name of Buyer the assignment of the Intellectual Property Assets in any appropriate
governmental agency or registrar, (b) such further actions, at Buyer’s expense, as may be reasonably required to substitute
Buyer as a party in the actions, suits, claims, investigations, audits and other legal proceedings identified on Section 4.07(a)
of the Disclosure Schedules and (c) the use of commercially reasonable efforts to provide information requested by Buyer pertaining
to the Intellectual Property Assets in order for Buyer to prosecute, maintain and enforce the Intellectual Property Assets. In
the event that any Seller or any of its Affiliates retained any of the Intellectual Property Assets or failed to obtain any consent
necessary for the transfer of any Intellectual Property Assets, Seller shall (and shall cause its Affiliates to) transfer of such
Intellectual Property Assets to Buyer or obtain such consent, as applicable, at Seller’s sole expense.

 

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Article
VII

Indemnification

 

Section 7.01       
Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties contained
herein, in the Disclosure Schedules, in any Exhibit or certificate attached hereto or delivered pursuant to this Agreement shall
survive the Closing and shall remain in full force and effect until the date that is twelve (12) months from the Closing Date
except that (a) the Fundamental Representations shall survive indefinitely; and (b) the representations and warranties contained
in Section 4.09 (Taxes) and Section 4.10 (Employees) shall survive until sixty (60) days following the expiration
of the applicable statute of limitations (giving effect to any extensions and waivers thereof). Each covenant and other agreement
contained in this Agreement shall survive the Closing until the full performance of such covenant or agreement in accordance with
its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at
such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable
survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive until finally
resolved, whether or not the amount of the Losses resulting from such breach has been finally determined at the time the notice
is given.

 

Section 7.02       
Indemnification By Seller. Subject to the other terms and conditions of this Article VII, from and after the
Closing, Seller agrees to indemnify Buyer, its Affiliates and its and their respective Representatives (the “Buyer Indemnitees”)
against, and shall hold each of them harmless from and against, any and all Losses suffered, incurred, paid, sustained by, or
imposed upon, any Buyer Indemnitee based upon, arising out of, with respect to or by reason of:

 

(a)any failure
of any representation or warranty made by Seller or its Affiliates in Article IV of this Agreement or in any Transaction
Document, Disclosure Schedule or certificate delivered pursuant to this Agreement to be true and correct in all respects (without
giving effect to any “material”, “materially”, “materiality”, “Material Adverse Effect”,
“material adverse effect”, “material adverse change” or similar qualification contained in any such representation
or warranty other than those contained in Section 4.04(d)) on and as of the Closing Date as if made at and as of such time
(other than those made on a specified date (other than any date specified in the preamble to Article IV), which shall be
true and correct in all respects as of such specified date);

 

    	26

    	 

    

  

(b)any breach or
non-fulfillment of any covenant, agreement or obligation to be performed by any Seller or any of its Affiliates pursuant to this
Agreement or any Transaction Document;

 

(c)any Excluded
Asset or any Excluded Liability;

 

(d)any failure
by Seller or any of its Affiliates, or claim by a creditor of Seller or any of its Affiliates that any of them has failed, in each
case, to comply with the provisions of any bulk sales, bulk transfer or similar Laws of any jurisdiction;

 

(e)any Taxes (i)
attributable to the Purchased Assets or the Revo Business with respect to any Pre-Closing Period or (ii) imposed on Seller or any
of its Affiliates; or

 

(f)any claim or
legal proceeding from any consultant or independent contractor of Seller or any of its Affiliates, any Employee or employee representative,
or Governmental Order against Buyer or any of its Affiliates in relation to (i) the employment or termination of the employment
of any Employee or (ii) the retention or termination of any such consultant or independent contractor.

 

Section 7.03       
Indemnification By Buyer. Subject to the other terms and conditions of this Article VII, Buyer shall indemnify
Seller, its Affiliates and its and their respective Representatives (the “Seller Indemnitees”), and shall hold
each of them harmless from and against, any and all Losses suffered, incurred, paid, sustained by, or imposed upon, any Seller
Indemnitee based upon, arising out of, with respect to or by reason of:

 

(a)any failure
of any representation or warranty made by Buyer in Article V of this Agreement or in any Transaction Document, Disclosure
Schedule or certificate delivered pursuant to this Agreement to be true and correct in all respects (without giving effect to any
“material”, “materially”, “materiality”, “Material Adverse Effect”, “material
adverse effect”, “material adverse change” or similar qualification contained in any such representation or warranty)
on and as of the Closing Date as if made at and as of such time (other than those made on a specified date (other than any date
specified in the preamble to Article V), which shall be true and correct in all respects as of such specified date);

 

(b)any breach or
non-fulfillment of any covenant, agreement or obligation to be performed by Buyer or its Affiliates pursuant to this Agreement
or any Transaction Document;

 

(c)any Assumed
Liability; or

 

(d)any Taxes attributable
to the Purchased Assets or the Revo Business to the extent attributable to taxable periods beginning after the Closing Date or
the portion of an Overlap Period beginning after the Closing Date.

 

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Section 7.04       
Certain Limitations. The party making a claim under this Article VII is referred to as the “Indemnified
Party”, and the party against whom such claims are asserted under this Article VII is referred to as the
“Indemnifying Party”. The indemnification provided for in Section 7.02
and Section 7.03 shall be subject to the following limitations:

 

(a)The Indemnifying
Party shall not be liable to the Indemnified Party for indemnification under Section 7.02(a) or Section 7.03(a),
as the case may be, until the aggregate amount of all Losses in respect of indemnification under Section 7.02(a) or Section
7.03(a) exceeds One Hundred Thousand Dollars ($100,000.00) (the “Deductible”),
in which event the Indemnifying Party shall only be required to pay or be liable for Losses in excess of the Deductible. The parties
agree that any claim for any individual Loss or group of related Losses indemnifiable pursuant to Section 7.02(a) or Section
7.03(a), as applicable, in an amount less than Five Thousand Dollars ($5,000.00) shall not count towards the applicable Deductible.
Notwithstanding anything herein to the contrary, the limitations set forth in this Section 7.04(a) shall not apply to Losses
described in Sections 7.02(b)-(f) or Sections 7.03(b)-(d), or to Losses incurred by (i) any Buyer Indemnitee in connection
with or arising from any breach of any Fundamental Representation of Seller or any representation or warranty of Seller in Section
4.09 (Taxes), and (ii) any Seller Indemnitee in connection with or arising from any breach of any Fundamental Representation
of Buyer.

 

(b)The aggregate
amount of all Losses for which an Indemnifying Party shall be liable pursuant to Section 7.02 or Section 7.03, as
the case may be, shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00); provided, that the limitation
set forth in the first clause of this Section 7.04(b) shall not apply to (i) Losses described in Sections 7.02(c)-(f)
or Sections 7.03(c)-(d), (ii) Losses described in Section 7.02(b) or Section 7.03(b) as a result of any willful
or intentional breach or non-fulfillment, or (iii) Losses incurred by (A) any Buyer Indemnitee in connection with or arising from
any breach of any Fundamental Representation of Seller or any representation or warranty of Seller in Section 4.09 (Taxes)
or Section 4.10 (Employees), or (B) any Seller Indemnitee in connection with or arising from any breach of any
Fundamental Representation of Buyer; provided, further, that the maximum aggregate amount of all Losses for which
an Indemnifying Party shall be liable pursuant to Section 7.02 or Section 7.03, as the case may be, shall not exceed
the Purchase Price.

 

(c)Payments by
an Indemnifying Party pursuant to Section 7.02 or Section 7.03 in respect of any Loss shall be limited to the amount
of any liability or damage that remains after deducting therefrom any insurance proceeds (net of any costs of investigation of
the underlying claim and collection, including Taxes) and any indemnity, contribution or other similar payment actually received
by the Indemnified Party in respect of such Loss.

 

(d)Payments by
an Indemnifying Party pursuant to Section 7.02 or Section 7.03 in respect of any Loss shall be reduced by an amount
equal to any Tax benefit actually realized as a result of such Loss by the Indemnified Party in, or prior to, the taxable year
the Loss was incurred.

 

(e)No Indemnifying
Party shall be liable to any Indemnified Party for any punitive, incidental, consequential, special or indirect damages, including
loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement,
or diminution of value or any damages based on any type of multiple (collectively, “Special Damages”); provided,
that Special Damages shall be indemnifiable pursuant to Section 7.02 or Section 7.03, as applicable, to the extent
Special Damages are (i) actually paid to a third party pursuant to any settlement entered into by the Indemnified Party in accordance
with Section 7.05, provided that the Indemnifying Party has consented in writing to any such settlement, or (ii)
ordered, by a court of competent jurisdiction, to be paid by the Indemnified Party to a third party.

 

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(f)Each Indemnified
Party shall take, and cause its Affiliates to take, commercially reasonable steps to mitigate any Loss as soon as reasonably practicable
upon becoming aware of any event or circumstance that would be reasonably expected to, or does, give rise thereto, such Loss.

 

Section 7.05       
Indemnification Procedures.

 

(a)Third Party
Claims. If any Indemnified Party receives notice of the assertion or commencement of any action, suit, claim or other legal
proceeding made or brought by any Person who is not a party to this Agreement (a “Third Party
Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification
under this Agreement, the Indemnified Party shall deliver as promptly as practicable a written notice (a “Claim Certificate”),
which Claim Certificate shall describe the Third Party Claim (or Direct Claim, if delivered pursuant to Section 7.05(c))
in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if
reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The failure to provide such Claim
Certificate shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent
that the Indemnifying Party forfeits rights or defenses by reason of such failure or is materially prejudiced thereby. The Indemnifying
Party shall have the right to participate in or, by giving written notice to the Indemnified Party within ten (10) Business Days
after its receipt of a Claim Certificate, to assume the defense of, the Third Party Claim described in such Claim Certificate at
the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate
in good faith in such defense; provided, that the Indemnifying Party shall only have the right to assume the defense of
a Third Party Claim if the Indemnifying Party acknowledges in writing its indemnity obligation; provided, further,
that in the event that the Indemnifying Party assumes the defense of any Third Party Claim, then (x) subject to Section 7.05(b),
it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining
to any such Third Party Claim in the name and on behalf of the Indemnified Party and (y) the Indemnified Party shall have the right,
at its own cost and expense, to participate in the defense of any Third Party Claim with counsel selected by it. Notwithstanding
anything to the contrary contained in this Agreement, the Indemnifying Party shall not be entitled to assume control of the defense
of a Third Party Claim and shall pay, subject to the limitations of liability set forth in Section 7.04, the fees and expenses
of counsel retained by the Indemnified Party if: (i) such Third Party Claim may give rise to Losses which are more than 100% of
the amount indemnifiable by such Indemnifying Party pursuant to this Section 7.05; (ii) such Third Party Claim for indemnification
relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation; (iii) such Third
Party Claim seeks an injunction or equitable relief against the Indemnified Party; (iv) the Indemnified Party has been advised
in writing by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified
Party; (v) the Indemnified Party reasonably believes an adverse determination with respect to the action, lawsuit, investigation,
proceeding or other claim giving rise to such claim for indemnification would be detrimental to or injure the Indemnified Party’s
reputation or future business prospects; or (vi) upon petition by the Indemnified Party, the appropriate court rules that
the Indemnifying Party failed or is failing to vigorously prosecute or defend such Third Party Claim. Notwithstanding any other
provision of this Agreement, with respect to a claim for indemnification with respect to Taxes, (A) Seller shall have the right
to control such claim for indemnification if, but only if, such claim relates solely to Taxes (1) attributable to the Purchased
Assets or the Revo Business with respect to any Pre-Closing Period or (2) imposed on Seller and (B) Seller shall not consent to
have any settlement or compromise of any such claim without the written consent of Buyer, which consent shall not be unreasonably
withheld or delayed. If the Indemnifying Party elects not to compromise or defend such Third Party Claim or fails to promptly notify
the Indemnified Party in writing of its election to defend as provided in this Agreement, the Indemnified Party may, subject to
Section 7.05(b), pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon,
arising from or relating to such Third Party Claim. Seller and Buyer shall cooperate with each other in all commercially reasonable
respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party
Claim.

 

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(b)Settlement
of Third Party Claims. 

 

(i)                
Any Indemnified Party shall have the right to employ separate counsel and to participate in the defense of any Third Party
Claim, but the fees and expenses of such counsel shall not be at the expense of the Indemnifying Party unless (A) the Indemnifying
Party shall have failed, or is not entitled, to assume the defense of such Third Party Claim in accordance with Section 7.05(a),
(B) the employment of such counsel has been specifically authorized in writing by the Indemnifying Party, which authorization shall
not be unreasonably withheld, or (C) the named parties to any such action (including any impleaded parties) include both such Indemnified
Party and the Indemnifying Party and such Indemnified Party shall have been advised in writing by such counsel that there may be
one (1) or more legal defenses available to the Indemnified Party which are not available to the Indemnifying Party, or are available
to the Indemnifying Party but the assertion of which would be adverse to the interests of the Indemnified Party. So long as the
Indemnifying Party is reasonably contesting any such Third Party Claim in good faith, the Indemnified Party shall not pay or settle
any such Third Party Claim. Notwithstanding the foregoing, the Indemnified Party shall have the right to pay or settle any such
Third Party Claim; provided that in such event it shall waive any right to indemnity therefor by the Indemnifying Party
for such Third Party Claim unless the Indemnifying Party shall have consented to such payment or settlement.

 

(ii)              
If the Indemnifying Party does not notify the Indemnified Party within ten (10) Business Days after the receipt of a Claim
Certificate with respect to a Third Party Claim hereunder that it elects to undertake the defense thereof, or if the Indemnified
Party assumes the defense of such Third Party Claim pursuant to Section 7.05(a), the Indemnified Party shall have the right
to contest, settle or compromise the Third Party Claim but shall not thereby waive any right to indemnity therefor pursuant to
this Agreement; provided, that the Indemnified Party shall not agree to any settlement without the written consent of the
Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed).

 

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(iii)            
Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not, without the prior written consent
of the Indemnified Party, enter into any settlement of a Third Party Claim that is not entirely indemnifiable by the Indemnifying
Party pursuant to this Article VII and does not include as an unconditional term thereof the giving by the Person or Persons
asserting such Third Party Claim to all Indemnified Parties of an unconditional release from all liability with respect to such
Third Party Claim or consent to entry of any judgment.

 

(c)Direct Claims.
Any claim by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a “Direct
Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice
thereof in a Claim Certificate. The failure to provide such Claim Certificate shall not, however, relieve the Indemnifying Party
of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason
of such failure or is materially prejudiced thereby. In the event that the Indemnifying Party objects to the indemnification of
an Indemnified Party in respect of any claim or claims specified in any Claim Certificate, the Indemnifying Party shall, within
thirty (30) days after receipt by the Indemnifying Party of such Claim Certificate, deliver to the Indemnified Party a notice to
such effect, specifying in reasonable detail the basis for such objection, and the Indemnifying Party and the Indemnified Party
shall, within the sixty (60) day period beginning on the date of receipt by the Indemnified Party of such objection, attempt in
good faith to agree upon the rights of the respective parties with respect to each of such claims to which the Indemnifying Party
shall have so objected. During such sixty (60) day period, the Indemnified Party shall allow the Indemnifying Party and its Representatives
to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is
payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving
such reasonable information and assistance (including a copy of any accounts, documents or records) as the Indemnifying Party or
any of its Representatives may reasonably request. If the Indemnified Party and the Indemnifying Party shall succeed in reaching
agreement on their respective rights with respect to any of such claims, the Indemnified Party and the Indemnifying Party shall
promptly prepare and sign a memorandum setting forth such agreement. Should the Indemnified Party and the Indemnifying Party be
unable to agree as to any particular item or items or amount or amounts within such time period, then the Indemnified Party shall
be permitted to submit such dispute to the courts set forth in Section 8.09. Claims for Losses specified in any Claim Certificate
to which an Indemnifying Party shall not object in writing within thirty (30) days of receipt of such Claim Certificate, claims
for Losses covered by a memorandum of agreement of the nature described above and claims for Losses the validity and amount of
which have been the subject of judicial determination as described above and in Section 8.09 or shall have been settled
with the consent of the Indemnified Party, as described in Section 7.05(b) are hereinafter referred to, collectively, as
“Agreed Claims”. Within ten (10) Business Days of the determination of the amount of any Agreed Claim, the Indemnifying
Party shall pay to the Indemnified Party an amount equal to the Agreed Claim by wire transfer in immediately available funds to
the bank account or accounts designated by the Indemnified Party in a notice to the Indemnifying Party not less than two (2) Business
Days prior to such payment.

 

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(d)No Right
of Offset. Notwithstanding anything to contrary contained in this Agreement, Seller acknowledges and agrees that in the event
that Buyer is obligated to make an indemnification payment to any Seller Indemnitee under Section 7.03, (i) no Seller Indemnitee
shall have any right to offset all or any portion of the amount of such indemnification obligation against any amounts owed to
Buyer or any of its Affiliates or licensees under any Transaction Documents and (ii) Seller shall not, and shall cause each Seller
Indemnitee not to, effect any such offset.

 

Section 7.06       
Seller’s Obligation to Cause Affiliates to Act. Seller acknowledges and agrees that, to the extent any provision
of this Agreement requires any of Seller’s Affiliates, or Seller agrees on behalf of its Affiliates, to perform, take or
refrain from taking any action, (a) Seller shall have an obligation to cause such Affiliate to perform, take and/or refrain from
taking such action, as applicable, and (b) the failure of such Affiliate to perform, take or refrain from taking such action shall
constitute a breach by Seller of such provision (notwithstanding any lack of an express obligation on the part of Seller to cause
such Affiliate to take such action).

 

 

Article
VIII

Miscellaneous

 

Section 8.01       
Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of
counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section 8.02       
Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing
and shall be deemed to have been given (a) when received by the addressee if delivered by hand or sent by a nationally recognized
overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document if sent between 9:00 A.M,
and 6:00 P.M. New York City time on any Business Day, and on the next Business Day if sent outside of such hours or (d) on the
third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. In the case of facsimile
or e-mail of a PDF document, such copies shall also be sent by overnight courier service or by registered mail. Such communications
must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified
in a notice given in accordance with this Section 8.02):

 

		If to Seller to:	Oakley, Inc.

One
Icon

Foothill Ranch, CA 92610

Attn:
Senior Vice President & Chief Financial Officer

Fax No.: 949.672.6096

Email: Gianluca@oakley.com

 

		with a copy to:	Oakley, Inc.

25361
Commercentre Drive

Lake Forest, CA 92630

Attn: Director of Legal Affairs

Fax No.: 949.699.3565

 

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or to such other person or address as Seller
shall furnish to Buyer in writing.

 

		If to Buyer to:	SBG Revo Holdings, LLC

c/o
Sequential Brands Group, Inc.

1065 Avenue of the Americas, 30th Floor

New York, NY 10018

Attn: Chief Executive Officer

Email: yshmidman@sbg-ny.com

 

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

 

White & Case LLP

1155 Avenue of the Americas

New York, NY 10036

Fax No.: 212.354.8113

Attn: Nazim Zilkha

 

or to such other person or address as Buyer
shall furnish to Seller in writing.

 

Notices sent by multiple
means, each of which is in compliance with the provisions of this Agreement will be deemed to have been received at the earliest
time provided for by this Agreement.

 

Section 8.03       
Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including”
shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive;
and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder”
refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure
Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y)
to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and
modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an
instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed
with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

Section 8.04       
Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section 8.05       
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision
is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated
hereby be consummated as originally contemplated to the greatest extent possible.

 

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Section 8.06       
Entire Agreement. This Agreement, together with the Exhibits hereto, the Disclosure Schedules and the other Transaction
Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained
herein and therein, and supersede all prior and contemporaneous representations, warranties, understandings and agreements, both
written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of
this Agreement and those in the other Transaction Documents, the Exhibits and Disclosure Schedules (other than an exception expressly
set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

 

Section 8.07       
Binding Effect; Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and permitted assigns. Except with respect to Article VII hereof, which
shall inure to the benefit of each Buyer Indemnitee and Seller Indemnitee, all of whom are intended as express third-party beneficiaries
thereof, no other Person not party to this Agreement shall be entitled to the benefits of this Agreement. Neither party may assign
its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably
withheld or delayed; provided, that after the Closing Date either party may assign its rights, interests and obligations
hereunder to any of its respective Affiliates. Each party shall provide written notice to the other party of any such assignment.
Any attempted assignment in violation of this Section 8.07 will be void. Notwithstanding any assignment by any party pursuant
to this Section 8.07, such party shall be responsible for full performance of such party’s covenants, agreements
and obligations hereunder.

 

Section 8.08       
Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in
writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect
of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character,
and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or
privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise
of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.

 

Section 8.09       
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)This Agreement
shall be governed by and construed in accordance with the internal laws of the State of New York. The parties expressly waive the
application of the United Nations Convention on the International Sale of Goods to this Agreement.

 

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(b)ANY LEGAL SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK
IN EACH CASE LOCATED IN THE BOROUGH OF MANHATTAN, STATE OF NEW YORK, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S
ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN
SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

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

 

Section 8.10       
Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were
not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.11       
Knowledge. When any representation, warranty, covenant or agreement contained in this Agreement is expressly qualified
by reference to the “Knowledge of Seller”, it shall mean the actual knowledge of the officers and other members
of management of Seller responsible for conducting the Revo Business.

 

Section 8.12       
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of
which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

    	35

    	 

    

  

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

 

	SELLER:	BUYER:
	 	 
	OAKLEY, INC.	SBG REVO HOLDINGS, LLC
	 	 
	 	By:  Sequential Brands Group, Inc.,
	By:  /s/ Colin Baden___________________	        its sole member
	Name:  Colin Baden	 
	Title:  Chief Executive Officer & President	 
	 	        By:  /s/ Yehuda Shmidman___________

        Name:  Yehuda Shmidman
	By:  /s/ Gianluca A. Tagliabue___________	        Title:  Chief Executive Officer
	Name:  Gianluca A. Tagliabue	 
	
        Title: Senior Vice President &
Chief Financial Officer

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