Document:

Exhibit
10.1

 

ASSET
PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (the “Agreement”), is entered into and effective as of September 26, 2022 (the “Signing
Date”) by and among Endonovo Therapeutics, Inc., a Delaware corporation (the “Buyer”), Western
Star Concrete, LLC, a Texas limited liability company (“Western Star” and/or “Seller”)
and Gabriel Mark Salmons (“Owner,” and collectively with Seller , the “Seller Parties”).
Buyer, Seller and Owner are referred to individually herein as a “Party” and collectively herein as the “Parties.”

 

WHEREAS,
Seller is a large concrete services contractor engaged in the business of building foundations, retaining walls, driveways, patios, sidewalks
and barn pads and related services for tract residential and commercial builders and developers (collectively, the “Business”);

 

WHEREAS,
the Owner owns 100% of the outstanding membership interests in Western Star (the “Western Star Interests” or
the “Securities”); and

 

WHEREAS,
Seller desires to sell, assign and transfer to Buyer and Buyer desires to purchase and acquire from Seller, all of the Purchased Assets
(as defined below) of the Business, in accordance with the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and the mutual representations, warranties and covenants of the Parties hereinafter set
forth, the Parties agree as follows:

 

1.
PURCHASE AND SALE OF ASSETS

 

1.1.
Purchase and Sale of Assets. Subject to the terms and conditions of this Agreement, at the Closing (as hereinafter defined), Seller
shall sell, transfer, convey, assign and deliver to Buyer, and Buyer shall purchase, acquire and accept from Seller, free and clear of
all Encumbrances other than Permitted Liens (as defined below), including but not limited to, all of Seller’s right, title and
interest in and to all of the assets and properties of every kind, nature, character and description, whether real, personal or mixed
and whether tangible or intangible and wherever located, owned or leased, used or held for use, by Seller (“the “Purchased
Assets”) as of the date of the Closing (the “Closing Date”) for the closing (the “Closing”)
of the Transactions (as defined below), including, without limitation, the following with respect to Seller:

 

(a)
all tangible personal property including all furniture, fixtures, equipment, instruments, computer hardware, and replacement items therefore;

 

(b)
advertising and marketing materials;

 

(c)
all inventory works in process, backlog (including contracted, uncontracted and/or unfinished projects and potential business opportunities),
supplies, parts, tools, office supplies, consumables and spare and replacement items therefor;

 

(d)
all (i) trade, note and other accounts receivable owing to Seller arising out of the sale or other disposition of goods or services of
the Business (“Accounts Receivable”) and (ii) other current assets of Seller;

 

(e)
all Owned Intellectual Property (as defined in Section 3.16) and Seller’s right, title and interest in and to all Licensed
Intellectual Property (as defined elsewhere in this Agreement);

 

(f)
all documents (whether stored in hard-copy form or electronically), records, data or data bases, engineering data, designs, operating
manuals, files and computer software;

 

    	 

    	 

    

 

(g)
all internet domain names and email addresses linked with such domain names associated with the Business;

 

(h)
all mobile phone except Owner’s mobile phone (817-304-5280), internet based or land line-based telephone lines and numbers and
facsimile numbers;

 

(i)
all rights, benefits, and interests under any of the Contracts listed on Schedule 1.1(i) (the “Assumed Contracts”),
which includes all customer or client Contracts entered into in the ordinary course of Seller’s business for goods and services
required to conduct the Business consistent with historical practice (including any agreements providing recurring revenue to Seller);

 

(j)
all business licenses, permits, and approvals necessary to operate the Business held by Seller Parties (but only to the extent transferable
under applicable Law and by their terms);

 

(k)
all rights to all leasehold improvements;

 

(l)
all deposits, prepaid insurance, prepaid expenses, and refunds;

 

(m)
all warranties and guaranties made by or received from any third party with respect to the Purchased Assets;

 

(n)
Seller’s rights, if any, to enforce and sue for any past, present or future violation of any confidentiality, non-compete, secrecy,
invention or similar covenants in favor of Seller; and

 

(o)
all goodwill and going concern value of Seller (including personal goodwill, if any, of the Owners).

 

Notwithstanding
anything to the contrary in this Section 1.1, Seller shall not sell, transfer, convey, assign or deliver to Buyer and Buyer shall
not purchase, acquire or accept from Seller, (t) Excluded Records, (u) any claims of any Seller Parties arising under this Agreement
or any of the agreements contemplated hereby, (v) any insurance policies of Seller and any claims thereunder, (w) any tax refunds, or
(x) any (1) payments received in connection with the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) (the “CARES
Act”) or similar funds from federal, state and local Governmental Bodies (as defined in Section 3.3), including
any amounts that have not been repaid or forgiven under the SBA Paycheck Protection Program and any amounts that have not been repaid
from any participation in the CMS Accelerated and Advance Payment Program or (2) deferral of payment of Seller’s share of the Social
Security employment tax (clauses (1) and (2) collectively, “Coronavirus Relief Programs” and each, a “Coronavirus
Relief Program”) (y) subject to the provisions of Section 2.1(c) with respect to current assets included in the
calculation of Working Capital, cash or cash equivalents and related bank and deposit accounts (except pursuant to Section 1.1(l))
or (z) any real estate owned by any Seller Party or any other assets set forth on Schedule 1.1 ((t) through (z) collectively,
the “Excluded Assets”).

 

For
purposes of this Agreement, (I) “Excluded Records” shall mean (i) the Seller’s minute book, tax
returns and similar corporate documents, (ii) all books, records, correspondence and other information which relates exclusively to the
Excluded Assets, and (iii) to the extent exclusion is required by applicable state or federal law or to the extent any Seller Party is
required to retain such records under applicable state or federal law, (A) any personnel files of any former employee of the Seller,
and (B) any personnel files of any employee who does not consent to the disclosure of his or her personnel file to the Seller, except
for records evidencing disciplinary action issued to personnel or a summary of records relating thereto but only to the extent permitted
by applicable law, (II) “Encumbrance” shall mean any lien, pledge, collateral assignment, hypothecation, charge,
mortgage, security interest, title retention, conditional sale or other security arrangement, or any charge, adverse claim of title,
ownership or right to use, or any other encumbrance of any kind whatsoever, and (III) “Permitted Liens” shall
mean those liens or encumbrances, if any, identified as Permitted Liens on Schedule 1.1 (none of which are, individually or in
the aggregate, material to the Business or the Purchased Assets).

 

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Notwithstanding
the foregoing, the transfer of the Purchased Assets shall not include the assumption of any liability or obligation relating to the Purchased
Assets or the Business, unless and only to the extent that such liability or obligation is included in the Assumed Liabilities.

 

1.2. Assumed Liabilities.
At Closing, Seller Parties shall assign and Buyer shall assume and agree to discharge Sellers from only (a) the current liabilities of
Seller, but only to the extent included in the final determination of Working Capital, and (b) those liabilities arising after the Closing
under the Assumed Contracts, other than liabilities or obligations (i) to any Owner or affiliates of such Owner, (ii) arising out of
or relating to any breach of any Assumed Contract or other action taken by any Seller Party prior to the Closing, (iii) arising out of
or relating to any event, circumstance or condition occurring or existing on or prior to the Closing that, with notice or lapse of time,
would constitute or result in a breach of any of such Assumed Contracts, (iv) arising from contingent customer liabilities not specifically
disclosed in the Disclosure Schedules, (v) that would constitute a breach of this Agreement for which Buyer would be entitled to receive
indemnification pursuant to Article 6 ((a) and (b) collectively, the “Assumed Liabilities”).

 

1.3.
Excluded Liabilities. Except as provided in Section 1.2 above with respect to the Assumed Liabilities, Buyer shall not
assume or become responsible for any of Seller’s duties, obligations or liabilities, whether known or unknown, fixed or contingent
or arising from contract, tort or otherwise (the “Excluded Liabilities”). For the avoidance of doubt, the Excluded
Liabilities shall include any and all of Seller’s duties, obligations or liabilities arising from or related to any Coronavirus
Relief Program and any and all Taxes (or the non-payment thereof): (i) imposed on or payable in respect of any of the Purchased Assets
to the extent such Taxes are attributable to any taxable period (or portion thereof) that ends on or before the Closing Date; and (ii)
of any person imposed on or payable in respect of the Seller Parties, whether as a transferee or successor, by contract or pursuant to
any Law or otherwise, which Taxes relate to an event or transaction occurring on or prior to the Closing Date, in each instance regardless
of whether any such Taxes are reflected or shown as due or payable on any Tax return, and regardless of whether any such Taxes are assessed,
payable or due prior to, on or after the Closing Date. The Excluded Liabilities shall also include any and all of Seller’s duties,
obligations or liabilities arising from or in connection with any change in control, accrued payroll, commissions, and benefits, 401k
and profit sharing, retention, bonus, termination, severance, paid time off, or other Plan. To the extent Seller maintains annual bonus
or similar plans for non-Owner employees and such items are paid annually, Seller will be responsible for their pro rata share of the
liability which shall be reflected as a current liability of the Seller for purposes of calculation of Working Capital.

 

1.4.
Contracts and Third-Party Consents. To the extent that a Seller’s rights under any Assumed Contract constituting a Purchased
Asset, or any other Purchased Asset, may not be assigned to Buyer without the consent of another person that has not been obtained, this
Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful,
and the Seller Parties, at their expense, shall use their commercially reasonable efforts to obtain any such required consent(s) as promptly
as possible. If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair Buyer’s
rights under the Purchased Asset in question so that Buyer would not in effect acquire the benefit of all such rights, Seller, to the
maximum extent permitted by law and the Purchased Asset, shall act after the Closing as Buyer’s agent in order to obtain for it
the benefits thereunder and shall cooperate, to the maximum extent permitted by law and the Purchased Asset, with Buyer in any other
reasonable arrangement designed to provide such benefits to Buyer (including, without limitation, entering into a transition services
agreement pursuant to which the applicable Seller would provide the benefits of the Purchased Assets until the necessary consents have
been obtained). Notwithstanding anything to the contrary contained in this Section 1.4, nothing herein shall be deemed to require
Buyer to proceed to Closing in the event any Required Consents (as defined in Section 2.5) are not obtained.

 

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2.
PURCHASE PRICE

 

2.1.
Purchase Price. Subject to the terms and conditions of this Agreement (including any adjustments as set forth in Section 2.7),
the aggregate purchase price (“Purchase Price”) for the Purchased Assets shall equal to the Adjusted EBITDA
for the Seller (as defined in Schedule 2.1) for the twelve (12) month period ending on the last day of the calendar month immediately
prior to Closing (the “TTM Adjusted EBITDA”), multiplied by four (4) (the “Closing Payment”);
provided that:

 

(a)
On behalf of Seller, Buyer shall pay at Closing the outstanding Transaction Expenses (as defined in Section 2.2) to the appropriate
payees in accordance with invoices submitted therefor, if applicable;

 

(b)
On behalf of Seller, Buyer pay at Closing the outstanding Estimated Seller Debt (as defined in Section 2.2) to the appropriate
payees in accordance with the Payoff Letters submitted therefor, if applicable; and

 

(c)
A holdback of [ten percent, (10%)] of the Closing Payment (the “Escrow Amount”), shall be deposited, for twelve
(12) months following the Closing Date, into an escrow account to be established by Buyer pursuant to an Escrow Agreement (the “Escrow
Agreement”)1 among Buyer, Owner and a third party escrow company of its choosing (the “Escrow Account”);
and

 

(d)
Buyer shall pay to the Seller at Closing (via wire transfer pursuant to the wiring instructions provided to Buyer by Seller) an amount
of immediately available funds equal to the Closing Payment, less the Transaction Expenses to be paid by Buyer pursuant to Section
2.1(a) and the Estimated Seller Debt to be paid by Buyer pursuant to Section 2.1(b), plus the amount by which Estimated
Working Capital exceeds $[TBD] (“Target Working Capital”), if at all, and less the amount by which Target
Working Capital exceeds Estimated Working Capital, if at all (collectively, the “Net Purchase Price”). Buyer
and Seller agree to work in good faith to determine the Target Working Capital within fourteen (14) days of the Signing Date.

 

“Working
Capital” means the current assets (including Accounts Receivable, deposits, and prepaid expenses (but only to the extent
such prepaid expenses were paid under contracts that are included in the Purchased Assets), and excluding any cash that is not transferred
to Buyer at Closing) of the Seller minus the current liabilities (including accounts payable and a pro rata portion of any annual bonuses
as described in Section 1.3) of the Seller, determined in accordance with GAAP, but only to the extent such current liabilities
are included in the Assumed Liabilities and not paid directly by Seller or deducted from the Purchase Price in accordance with Section
2.1(d). For purposes of calculating Working Capital, the following shall not be included as an asset of Seller: (i) Accounts Receivable
that (A) remain unpaid more than forty-five (45) days past the invoice date, or (B) are from account debtors whose invoices that remain
unpaid more than ninety (90) days past the invoice date if such unpaid invoices represent more than 20% of the total outstanding invoices
of such account debtor (the Accounts Receivable described in (A) and (B) above being referred to herein as the “Retainage
Accounts”), and (ii) any inventory that is more than one hundred eighty (180) days old.

 

 

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The Escrow Agreement shall provide for the disbursement of half (50%) of the Escrow Amount after the expiration of six (6) months
following the Closing Date, and the remainder of the Escrow Amount to be disbursed after twelve (12) months following the Closing Date.

 

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“GAAP”
means generally accepted accounting principles in the United States as of the Closing Date.

 

2.2.
Closing Estimates.

 

(a)
Within seven (7) days prior to the Closing Date, Seller shall deliver to Buyer a statement (the “Closing Statement”)
setting forth, as of the Closing, (i) Seller’s estimate of (a) the aggregate indebtedness of Seller (“Estimated Seller
Debt”), together with payoff letters (the “Payoff Letters”), if applicable, in form and substance
acceptable to Buyer indicating the amount required to discharge any Encumbrances securing such indebtedness; and (b) Transaction Expenses
(“Estimated Transaction Expenses”), together with bills, invoices or other vendor statements in respect of
such Transaction Expenses through Closing, (ii) Seller’s estimate of Working Capital as of the Closing (“Estimated
Working Capital”), and attaching (a) an estimated combined balance sheet of Seller as of the Closing (the “Estimated
Closing Balance Sheet”), and (b) a listing of the Retainage Accounts as of the Effective Time which shall include the name
of the Retainage Account debtor and an aging of the Retainage Accounts (the “Estimated Retainage Account Statement”),
(iii) Seller’s estimate of TTM Adjusted EBITDA (the “Estimated TTM Adjusted EBITDA”) and attaching an
estimated combined financial statement for the applicable trailing twelve month period (the “Estimated Closing TTM Statement”)
(which shall be derived from, and calculated in a manner consistent with, the Closing Financial Statements , and (iv) based on the foregoing,
Seller’s calculation of the Net Purchase Price (as calculated pursuant to Section 2.1). Seller shall prepare the Estimated
Closing Balance Sheet and Estimated Closing TTM Statement in accordance with GAAP. “Transaction Expenses” means
the aggregate fees and expenses of the Seller Parties due, incurred and/or payable in connection with this Agreement and the consummation
of the Transactions (including, without limitation, broker or investment banker fees, fees for lawyers and accountants, and employee
closing or transaction bonuses (to the extent not included as a current liability in the calculation of Estimated Working Capital)).

 

(b)
Upon delivery of the Estimated Closing Balance Sheet, Estimated Closing TTM Statement, and Closing Statement, Seller shall provide Buyer
and its representatives with reasonable access to the relevant employees, accountants and books and records of Seller to review the accuracy
of such amounts. If Buyer does not agree with Seller’s calculation of Estimated Working Capital or TTM Adjusted EBITDA, the amount
of Estimated Seller Debt and/or the amount of Estimated Transaction Expenses, Seller and Buyer shall negotiate in good faith to mutually
agree upon acceptable estimates and each such Party shall consider in good faith any proposed comments or changes that the other Party
may reasonably suggest; provided, however, that Seller’s failure to include any changes by Buyer or Buyer’s
failure to accept changes or positions of Seller, or the acceptance by any Party of the Estimated Closing Balance Sheet, Estimated Closing
TTM Statement, and Closing Statement, shall not limit or otherwise affect any such Party’s right to include such changes or other
changes in the Closing Balance Sheet, Closing TTM Statement or Post-Closing Statement, or constitute an acknowledgement by any Party
of the accuracy of the Estimated Working Capital, the TTM Adjusted EBITDA, the amount of Estimated Seller Debt or the amount of Estimated
Transaction Expenses.

 

(c)
As part of Seller’s preparation of the Estimate Closing Balance Sheet, Seller shall perform a full physical inventory within five
days of the Closing Date subject to test counts performed by third party accounting firm selected by Buyer.

 

2.3.
Closing. The closing (the “Closing”) of the sale and purchase of the Purchased Assets and transactions
contemplated by this Agreement (the “Transactions”) shall take place no later than three (3) business days
following satisfaction or waiver of all of the conditions to the obligations of the Parties to consummate the Transactions in accordance
with this Agreement, or at such other time, place and date as is mutually agreed by the Parties. The date of the Closing is referred
to in this Agreement the “Closing Date” and shall be effective as of 11:59 p.m. PT (the “Effective
Time”) for tax and accounting purposes. Seller Parties, from time to time after the Closing, at the request of Buyer and
without further consideration, shall execute and deliver further instruments of transfer and assignment and take such other action as
Buyer may reasonably require to transfer and assign the Purchased Assets to, and vest title to such in, Buyer and to consummate the Transactions.
All deliveries, payments and other transactions and documents relating to the Closing shall not be effective unless and until all are
effective (or waived in writing by the applicable Party) and shall be deemed to be consummated simultaneously.

 

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2.4.
Purchase Price Allocation. The Parties agree to allocate the Purchase Price (together with the Assumed Liabilities and other items
treated as taxable consideration for income tax purposes) for income tax purposes (the “Total Consideration”)
among the Purchased Assets pursuant to Section 1060 of the Internal Revenue Code of 1986, as amended (the “Code”),
the applicable U.S. Treasury regulations promulgated thereunder. Within ninety (90) days following the determination of the Final Adjustment
Amount, Buyer shall deliver to Seller a draft allocation schedule of the Total Consideration among the Purchased Assets (the “Allocation
Schedule”). Seller shall be entitled to review and comment on such schedule for a period of ten (10) days. Buyer shall
consider in good faith any comments from Seller in determining a final Allocation Schedule. The Parties agree to file their respective
IRS Forms 8594 and all federal, state, and local Tax returns in accordance with the Allocation Schedule (as finally determined). No Party
shall take or permit others to take on its behalf any position, whether in connection with a Tax audit, a Tax return, Tax proceeding,
or otherwise, that is inconsistent with the Allocation Schedule unless required to do so by applicable Law.

 

2.5.
Conditions to Obligations of Buyer. The obligations of Buyer to effect the Transactions are subject to satisfaction at or prior
to the Closing of the following conditions (any of which may be waived in Buyer’s sole and absolute discretion):

 

(a)
The representations and warranties of the Seller Parties set forth in this Agreement shall be true and correct in all material respects
(except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof).

 

(b)
Each of the Seller Parties shall have performed and complied in all material respects with each agreement, covenant and obligation required
by it pursuant to this Agreement or the Ancillary Agreements to which it is a party to be so performed or complied with by the Seller
Parties at or before the Closing.

 

(c)
No Material Adverse Effect shall have occurred since the Signing Date.

 

(d)
Seller shall have delivered to Buyer a certificate, dated as of the Closing Date and executed by an authorized officer of Seller certifying
as to the fulfillment of the conditions specified in Sections 2.5(a), 2.5(b), and 2.5(c).

 

(e)
Buyer and its Affiliates, as applicable, shall have completed its due diligence regarding the Business to its satisfaction and shall
have secured financing on terms reasonably acceptable to Buyer and its Affiliates in their sole determination in amounts sufficient to
finance the Purchase Price

 

(f)
No claim, action, suit, investigation or proceeding shall be pending or threatened before any Governmental Body which presents a risk
of the restraint or prohibition of the Transactions.

 

(g)
Any and all consents or waivers required from third parties and regulatory authorities relating to this Agreement or the Ancillary Agreements
or any of the other transactions contemplated hereby or thereby shall have been obtained, including, but not limited to, any consents
related to assignment, any “change of control,” “potential change of control” or similar provision in any contract
(collectively, the “Required Consents”).

 

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(h)
Buyer shall have obtained on commercially reasonable terms all insurance (including any bonding arrangements or policies) and Permits
reasonably required for the operation of the Business and ownership of the Purchased Assets following the Closing.

 

(i)
Seller Parties shall have delivered to Buyer:

 

(i)
a Bill of Sale, Assignment and Assumption Agreement (“Bill of Sale”), duly executed by Seller Parties conveying
all of the Purchased Assets to Buyer, and such other instruments of conveyance, transfer, and assignment as may be reasonably necessary
to convey to Buyer good and valid title to the Purchased Assets, all in such form as shall be reasonably satisfactory to Buyer and its
counsel;

 

(ii)
an Employment Agreement between Buyer and Owner, in substantially the same forms as Exhibit B-1 and Exhibit B-2 hereto,
respectively (the “Employment Agreements”), duly executed by the applicable employee;

 

(iii)
a Restrictive Covenant Agreement between Buyer, Seller and the Owner in substantially the same form as Exhibit C hereto (the “Restrictive
Covenant Agreement”), duly executed by Seller and Owner;

 

(iv)
[Employment offer letters] with the employees of Seller designated by Buyer at least fifteen (15) days prior to Closing, in a form provided
by Buyer, duly executed by each of such employees;

 

(v)
a Lease with respect to the premises located at on terms and in a form and substance reasonably acceptable to Buyer (the “Lease”);

 

(vi)
On or prior to November 01, 2022 (or such other date as Buyer and Seller may mutually agree), delivery to Buyer of certified audited
combined balance sheets of Seller and related audited combined statements of income and cash flows as of and for the fiscal years ended
December 31, 2021 and December 31, 2020 (collectively, the “Year-End Audited Financial Statements”) and (ii)
unaudited reviewed financial statements of Seller as of September 30, 2022 and related combined statement of income and cash flows for
the nine (9) month period (if necessary to comply with SEC reporting requirements. (the “Closing Interim Financial Statements”
and, together with the Year-End Audited Financial Statements, the “Closing Financial Statements”), , along
with each of the unaudited financial statements required pursuant to Section 5.6; it being agreed that any financial statements
delivered pursuant to this Section 2.5(i)(vi) shall be in a form and substance compliant with AICPA standards and requirements
as well as any requirements of the Securities and Exchange Commission applicable to Buyer with respect to the transactions contemplated
by this Agreement;

 

(vii)
On or prior to the earlier of November 15, 2022 or fourteen (14) days following the date on which the Closing Financial Statements are
delivered to Buyer (or such other date as Buyer and Seller may mutually agree), delivery to Buyer of the Updated Disclosure Schedules
which are required by Section 5.7 and shall be in a form and substance reasonably acceptable to Buyer and which shall not
disclose any material adverse changes from the Preliminary Disclosure Schedules and unaudited reviewed balance sheet of Seller as of
September 30, 2022 and related combined statement of income and cash flows for the nine (9) month period then ended;

 

(viii)
a certificate of a duly elected officer of Seller certifying that attached thereto are true and complete copies of all resolutions adopted
by the director(s) and/or manager(s) and stockholders and/or members of Seller authorizing the execution, delivery and performance of
this Agreement and the other documents required to be delivered hereby (the “Ancillary Agreements”) and the
consummation of the Transactions, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection
with the Transactions;

 

(ix)
a certificate duly executed by Seller, in form reasonably satisfactory to Buyer, stating, under penalty of perjury, that Seller is not
a “foreign person” as defined in Section 1445 of the Code;

 

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(x)
A release of claims, in a form reasonably acceptable to Buyer, duly executed by Owner, as to pre-Closing claims or liabilities of Seller
to Owner;

 

(xi)
The Escrow Agreement, duly executed by Seller Parties; and.

 

(xii)
Buyer shall have received such other documents as Buyer may reasonably request.

 

As
used in this Agreement, “Material Adverse Effect” means a material adverse effect on (i) the assets, properties,
liabilities, operations, business, prospects or condition (financial or otherwise) of Seller and the Business, taken as a whole, or (ii)
the ability of Seller or the Owner to perform its or their obligations hereunder; caused by (A) terrorism or war (whether or not declared),
(B) general market or economic conditions, (C) conditions generally affecting the industries in which Seller operates (including, without
limitation, the effects of the Coronavirus Pandemic in its current state as of the date hereof, but excluding any worsening thereof),
or (D) any material disruption in financial, banking, or securities markets in general. .

 

2.6.
Conditions to Obligations of the Seller Parties. The obligations of the Seller Parties to effect the Transactions are subject
to satisfaction at or prior to the Closing of the following conditions (any of which may be waived by the Seller Parties in their sole
and absolute discretion):

 

(a)
The representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects (except that
such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof).

 

(b)
Buyer shall have performed and complied in all material respects with each agreement, covenant and obligation required by this Agreement
and the Ancillary Agreements to be so performed or complied with by the Buyer at or before the Closing.

 

(c)
Buyer shall have delivered to the Seller Parties a certificate, dated as of the Closing Date and executed by an authorized officer of
Buyer, certifying as to the fulfillment of the conditions specified in Sections 2.6(a) and 2.6(b).

 

(d)
No claim, action, suit, investigation or proceeding shall be pending or threatened before any Governmental Body which presents a risk
of the restraint or prohibition of the Transactions.

 

(e)
Buyer shall have delivered to the Seller Parties:

 

(i)
the Bill of Sale, duly executed by Buyer;

 

(ii)
the Lease, duly executed by Buyer;

 

(iii)
the Employment Agreements, duly executed by Buyer; and

 

(iv)
the Escrow Agreement, duly executed by Buyer and Owner at Closing pursuant to Section 2.1.

 

2.7.
Working Capital and TTM Adjusted EBITDA Adjustments.

 

(a)
No later than one hundred and twenty (120) days after the Closing Date, Buyer shall cause a combined balance sheet of the Seller as of
the Effective Time (the “Closing Balance Sheet”) along with a combined statement of income and TTM Adjusted
EBITDA for the twelve (12) month period ended on the last day of the most recently full calendar month prior to Closing (the “Closing
TTM Statement”) to be prepared and delivered to Seller, which will be accompanied by a statement (the “Post-Closing
Statement”) setting forth Buyer’s calculation of (i) Working Capital as of the Effective Time, the outstanding indebtedness
of Seller as of the Effective Time (to the extent not paid by Seller following the Closing Date or required to be paid by Buyer in accordance
with Section 2.1(b)), outstanding Transaction Expenses as of the Effective Time (to the extent not paid by Seller following the
Closing Date or required to be paid by Buyer in accordance with Section 2.1(a)), and TTM Adjusted EBITDA, (ii) the Proposed Adjustment
Amount, and (iii) a revised version of the Estimated Retainage Account Statement reflecting Buyer’s summary of the Retainage Accounts
as of the Effective Time (the “Closing Retainage Account Statement”). Buyer shall prepare the Closing Balance
Sheet, Closing TTM Statement, and the Post-Closing Statement in accordance with GAAP. Buyer shall provide a reasonable opportunity for
Seller and their representatives to review the books and records of the Business used in preparing or supporting the Closing Balance
Sheet, Closing TTM Statement, and the Post-Closing Statement and the numbers contained therein and shall provide Seller with reasonable
access to Buyer’s personnel in connection therewith. “Proposed Adjustment Amount” means the net amount
of payments that Buyer proposes pursuant to this Section 2.7(a) as a result of the Working Capital as of the Effective Time, the
applicable outstanding indebtedness of Seller as of the Effective Time, applicable outstanding Transaction Expenses as of the Effective
Time, and the TTM Adjusted EBITDA.

 

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(b)
If, within thirty (30) days following delivery of the Closing Balance Sheet, Closing TTM Statement, and the Post-Closing Statement (the
“Objection Notice Period”), Seller have not given Buyer written notice of any objection to the Closing Retainage
Account Statement or the Proposed Adjustment Amount (which notice is to state in reasonable detail the basis of its objection and the
matters in dispute and the amount of any proposed adjustments in accordance with Section 2.7(c) of this Agreement) (an “Objection
Notice”), then (i) the Closing Retainage Account Statement shall be deemed final, and (ii) Buyer’s calculations of
the Proposed Adjustment Amount is to be deemed the Final Adjustment Amount, and each is to be binding and conclusive on the Parties for
all purposes under this Agreement and not subject to further dispute or challenge.

 

(c)
If Seller give Buyer an Objection Notice with respect to the Closing Retainage Account Statement or Buyer’s calculations of the
Proposed Adjustment Amount within the Objection Notice Period, then Seller and Buyer shall in good faith attempt to resolve the specific
issues set forth in reasonable detail in such Objection Notice (and, for avoidance of doubt, all other calculations with respect to the
Proposed Adjustment Amount are to be binding and conclusive on the Parties). If Seller and Buyer fail to resolve such issues within thirty
(30) days following Buyer’s receipt of such Objection Notice, Seller and Buyer shall submit the specific issues (and only such
issues) set forth in reasonable detail in such Objection Notice remaining in dispute to a nationally or regionally recognized certified
public accounting firm mutually selected by Seller and Buyer (the “Independent Accountants”) for resolution
in accordance with the guidelines and procedures set forth in this Agreement. Buyer and Seller Parties agree that as a condition to selection
of any Independent Accountants, that (i) such Independent Accountants shall not have been engaged by them or provided accounting or other
substantive services to them or their respective affiliates during the three (3) year period prior to the Signing Date, and (ii) neither
they nor their respective affiliates will engage (or promise to engage) or receive substantive services from such Independent Accountant
at any time prior to twelve (12) months following the date that the final Working Capital has been agreed to in accordance with the provisions
of this Agreement. If issues are submitted to the Independent Accountants for resolution, (A) Seller and Buyer shall furnish or cause
to be furnished to the Independent Accountants such work papers and other documents and information relating to the disputed issues as
the Independent Accountants request and are available to such Party or such Party’s representatives and are to be afforded the
opportunity to present to the Independent Accountants any material relating to the disputed issues, (B) the Independent Accountants shall
act as experts and not arbiters and shall determine only those items that remain in dispute in the Objection Notice, (C) the determination
by the Independent Accountants, as set forth in a notice to be delivered to both Seller and Buyer within thirty (30) days of the submission
to the Independent Accountants of the issues remaining in dispute, is to be final, binding and conclusive on the Parties and is to be
used in the calculation of the Final Adjustment Amount, (D) in no event shall any determination of the Independent Accountants be outside
of the range of Buyer’s proposed final calculations of such disputed issues set forth in the Post-Closing Statement and Seller’s
proposed adjustments thereto set forth in the Objection Notice, and (E) the fees and expenses of the Independent Accountants are to be
allocated and payable by Buyer, on the one hand, and the Selling Parties on the other hand, in proportion to the amounts by which the
proposals of Buyer and Seller, respectively, differed from the Independent Accountants’ final determination of the matters in dispute,
and the Independent Accountants are to determine such proportions in the Independent Accountant’s final determination.

 

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(d)
Within five (5) business days after the earlier of (i) the expiration of the Objection Notice Period in the event no Objection Notice
is delivered to Buyer prior thereto, (ii) the joint final resolution of Buyer and Seller of any disputed items set forth in an Objection
Notice, or (iii) the final determination by the Independent Accountants in accordance with Section 2.7(c) (in each case, the “Final
Determination Date”), the following applicable payments shall be made by wire transfer of immediately available funds:

 

(i)
If Working Capital as finally determined pursuant to this Section 2.7 exceeds Estimated Working Capital (the amount by which final
Working Capital exceeds Estimated Working Capital, the “Excess Working Capital”), Buyer shall pay to Seller
an amount equal to the Excess Working Capital. If Working Capital as finally determined pursuant to this Section 2.7 is less than
Estimated Working Capital (the amount by which final Working Capital is less than Estimated Working Capital, the “Deficit
Working Capital”), then the Seller Parties shall pay to Buyer an amount equal to the Deficit Working Capital.

 

(ii)
If the outstanding indebtedness of Seller as of the Effective Time (to the extent included in Assumed Liabilities and not paid by Seller
following the Closing Date or required to be paid by Buyer in accordance with Section 2.1(c)) (“Final Seller Debt”)
as finally determined pursuant to this Section 2.7 exceeds Estimated Seller Debt (the amount by which Final Seller Debt exceeds
the Estimated Seller Debt, the “Excess Seller Debt”), then the Seller Parties shall pay to Buyer an amount
equal to such Excess Seller Debt. If Final Seller Debt as finally determined pursuant to this Section 2.7 is less than Estimated
Seller Debt (the amount by which Final Seller Debt is less than Estimated Seller Debt, the “Deficit Seller Debt”),
then Buyer shall pay to Seller an amount equal to the Deficit Seller Debt.

 

(iii)
If the Transaction Expenses of Seller as of the Effective Time (to the extent included in Assumed Liabilities and not paid by Seller
following the Closing Date or required to be paid by Buyer in accordance with Section 2.1(b)) (“Final Transaction Expenses”)
as finally determined pursuant to this Section 2.7 exceeds Estimated Transaction Expenses (the amount by which Final Transaction
Expenses exceeds Estimated Transaction Expenses, the “Excess Transaction Expenses”), then the Seller Parties
shall pay to Buyer an amount equal to such Excess Transaction Expenses. If Final Transaction Expenses is less than Estimated Transaction
Expenses (the amount by which Final Transaction Expenses is less than Estimated Transaction Expenses, the “Deficit Transaction
Expenses”), then Buyer shall pay to the Seller an amount equal to the Deficit Transaction Expenses.

 

(iv)
If the TTM Adjusted EBITDA as of the Effective Time (“Final TTM Adjusted EBITDA”) as finally determined pursuant
to this Section 2.7 exceeds Estimated TTM Adjusted EBITDA (the amount by which Final TTM Adjusted EBITDA exceeds Estimated TTM
Adjusted EBITDA, the “Excess TTM Adjusted EBITDA”), then the Seller Parties shall pay to Buyer an amount equal
to such Excess TTM Adjusted EBITDA multiplied by four (4). If Final TTM Adjusted EBITDA is less than Estimated TTM Adjusted EBITDA (the
amount by which Final TTM Adjusted EBITDA is less than Estimated TTM Adjusted EBITDA, the “Deficit TTM Adjusted EBITDA”),
then Buyer shall pay to the Seller an amount equal to the Deficit TTM Adjusted EBITDA multiplied by four (4) and as further provided
in this Section 2.7(d).

 

(v)
Any required payments between Buyer and the Seller Parties pursuant to this Section 2.7(d) shall be netted against each other,
as applicable, resulting in an amount (the “Final Adjustment Amount”).

 

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(vi)
Payment of the Final Adjustment Amount is to be made (i) in the case of amounts due from Seller Parties, by wire transfer of immediately
available funds to an account or accounts designated by the Buyer within five (5) days after the date of final determination of such
Final Adjustment Amount, and (ii) in the case of amounts due from Buyer, by wire transfer of immediately available funds to an account
or accounts designated by the Seller within five (5) days after the date of final determination of such Final Adjustment Amount.

 

2.8.
INTENTIONALLY LEFT BLANK 

 

3.
REPRESENTATIONS AND WARRANTIES BY SELLER PARTIES

 

Subject
to such exceptions as are set forth in (i) the Exhibits and Disclosure Schedules delivered to Buyer by the Seller Parties within
fourteen (14) days following the Signing Date (the “Preliminary Disclosure Schedules”), as such
disclosures may be updated in accordance with Section 5.7 of this Agreement (the “Updated Disclosure
Schedules” and, collectively with the Preliminary Disclosure Schedules, the “Disclosure
Schedules”), as of the Signing Date and as of the Closing Date, Seller Parties jointly and severally represent and
warrant to Buyer as set forth below in this Section 3. Any Disclosure Schedules shall contain schedules and references qualifying
the section or subsection they specifically reference:

 

3.1.
Organization. Each Seller is duly organized, validly existing and in good standing under the Laws of the state of its formation
and organization. Seller has full power and authority to carry on the businesses of the Business as now conducted and to own, lease or
operate its properties and assets as now owned, leased or operated.

 

3.2.
Ownership. Seller is wholly owned by Owner. No person has any option to purchase equity in or assets of any Seller, any right
of first refusal to purchase equity in or assets of any Seller, or any other similar right. Seller does not have any subsidiaries, nor
does it own any equity or capital interests, stock, or membership or partnership interests in any person or entity.

 

3.3.
Authorization; No Violation. Seller has the full power and authority, and Owner has the capacity, in each case to enter into this
Agreement and perform its or their respective obligations hereunder and carry out the Transactions. Except as set forth in Schedule
3.3, the execution and delivery of this Agreement and the consummation of the Transactions (a) do not, and will not, violate or conflict
with any organizational document of any Seller, and (b) assuming the third party consents and notices set forth on Schedule 3.14
are obtained and provided, respectively, do not and will not violate or conflict with, or result in a breach of, or default under, any
agreement, contract, covenant, promise, indenture, or other instrument, or any order or decree of any court or other Governmental Body,
to which any Seller Party is a party or by which any Seller Party, or any Seller Party’s assets or properties, are bound. This
Agreement, when executed, will constitute legal, valid and binding obligations of each Seller Party enforceable in accordance with its
terms except (i) to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other Laws affecting the enforcement of creditors’ rights generally and (ii) that the availability of equitable remedies, including
specific performance, is subject to the discretion of the court before which any proceeding thereof may be brought. “Governmental
Body” means any United States or foreign federal, state, provincial, regional, local, or municipal legislative, executive,
or judicial department, commission, board bureau, agency, office, tribunal, court, or other instrumentality, whether governmental or
quasi-governmental.

 

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3.4.
Financial Statements; Accounts Receivable; Accounts Payable; Inventory; Backlog.

 

(a)
Attached as Schedule 3.4(a) are the (i) unaudited combined balance sheets of Seller and related unaudited combined statements
of income and cash flows as of and for the fiscal years ended December 31, 2020 and December 31, 2019 and December 31, 2018 (collectively,
the “Signing Date Year-End Financial Statements”) and (ii) unaudited combined balance sheet of Seller (the
“Most Recent Balance Sheet”) as of September 30, 2021 (the “Most Recent Balance Sheet Date”)
and related combined statement of income and cash flows for the nine (9) month period then ended (the “Signing Date Interim
Financial Statements” and, together with the Signing Date Year-End Financial Statements, the “Signing Date
Financial Statements”). Except as disclosed in Schedule 3.4(a), the Signing Date Financial Statements have been,
and when delivered, the Closing Financial Statements will be, prepared in accordance with GAAP consistently applied and present fairly
in all material respects the financial condition of Seller as of such dates and the results of operations of Seller for such periods
covered thereby, subject, in the case of the Signing Date,Interim Financial Statements and Closing Date Interim Financial Statements,
to normal year-end adjustments and the absence of notes, none of which would, individually or in the aggregate, be materially adverse
to the business, operations, assets, liabilities or financial condition of Seller. Other than the Estimated Seller Debt as set forth
on the Closing Statement, Seller does not have any outstanding indebtedness, for borrowed money or otherwise. Except as set forth on
Schedule 3.4(a), no Seller Party has applied for or otherwise received any payments in connection with the CARES Act or
other Coronavirus Relief Programs, including any amounts under the SBA Paycheck Protection Loans or any amounts from participation in
the CMS Accelerated and Advance Payment Program.

 

(b)
All Accounts Receivable as of the Signing Date (and with respect to the Updated Disclosure Schedules, as of the last day of the calendar
month immediately preceding the date of delivery of the Updated Disclosure Schedules) are set forth on Schedule 3.4(b) All Accounts
Receivable of Seller represent valid obligations of payors, clients, and/or customers arising from sales actually made or services actually
performed by Seller in the ordinary course of business. The underlying transactions comprising the Accounts Receivable are reflected
properly on Seller’s books and such Accounts Receivable. The Accounts Receivable are not subject to any pending or threatened defense,
counterclaim, right of offset, returns, allowances, or credits. Since January 1, 2021, Seller has attempted to collect its Accounts Receivable
in the ordinary course of its business and in a manner that is consistent with its past practices. All accounts receivable of Seller
reflected on the Signing Date, Financial Statements and Closing Date Financial Statements, when delivered, are fully collectible in the
ordinary course of business, after deducting the allowance for doubtful accounts as may be reflected in the Signing Date Financial Statements
or Closing Date Financial Statements, as applicable. None of the receivables are due from Owner or any affiliate of any Seller Party.

 

(c)
The accounts payable of Seller as of the Signing Date (and with respect to the Updated Disclosure Schedules, as of the last day of the
calendar month immediately preceding the date of delivery of the Updated Disclosure Schedules) are set forth on Schedule 3.4(c).
The accounts payable of Seller arose from bona fide arm’s length transactions in the ordinary course of business consistent with
past practice, and no such account payable or note payable is delinquent in its payment. Since the January 1, 2021, Seller has paid its
accounts payable in the ordinary course of its business and in a manner that is consistent with its past practices.

 

(d)
All of the inventories of Seller consist of a quality and quantity of raw materials and finished products that are saleable in the ordinary
course of business consistent with past practice, at normal selling prices, and not subject to write off except for obsolete or defective
materials and excess stock items that are reserved for (including reservation for costs of disposal, if any) on the Signing Date Financial
Statements or Closing Date Financials, as applicable. All of the inventories are located at facilities leased or owned by Seller. None
of the inventories represent consignment inventories.

 

(e)
Schedule 3.4(e) sets forth as of the Signing Date (and with respect to the Updated Disclosure Schedules, as of the last day of
the calendar month immediately preceding the date of delivery of the Updated Disclosure Schedules), a complete and accurate list of the
Backlog of Seller which shall include the name of the customer, aggregate contract price, revenues received to date, any unbilled balance
remaining. For purposes hereof, “Backlog” shall mean all orders of Seller then in progress or under contract
other than those orders which have been completed in full and final invoices issued.

 

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3.5.
Title and Condition of Assets. Except as set forth on Schedule 3.5, Seller collectively own and possess and have good and
marketable title to the Purchased Assets, free and clear of all Encumbrances. All of Seller’s tangible assets included in the Purchased
Assets are in good working condition and repair in all material respects, normal wear and tear excepted. All of Seller’s assets
are a result of Seller’s operation of the Business in the ordinary course and include all assets necessary for the operation of
the Business by Seller as currently operated. No Owner or any affiliate of an Owner owns any assets or properties used in or necessary
for the operation of the Business.

 

3.6.
No Undisclosed Liabilities; Absence of Changes.

 

(a)
Except as disclosed on Schedule 3.6(a), there are no material liabilities or obligations of any nature, individually or in the
aggregate, with respect to the Business except (a) those that are reflected or reserved against in the Most Recent Balance Sheet as of
the Most Recent Balance Sheet Date, (b) Transaction Expenses, and (c) those that have been incurred in the ordinary course of business
since the Most Recent Balance Sheet Date, none of which is indebtedness for borrower money or a liability for delinquent taxes, breach
of contract, tort, infringement, misappropriation, dilution or a claim or lawsuit, a violation of law, or an environmental liability.

 

(b)
Except for liabilities incurred in connection with this Agreement or the Transactions, and except as disclosed on Schedule 3.6(b),
since January 1, 2021, Seller has conducted its business only in the ordinary course of business (other than reasonably necessary changes
to operations in response to the Coronavirus Pandemic (as defined herein)), and there has not occurred any event, effect, circumstance,
change, occurrence, fact or development of any character whatsoever which would be prohibited by Section 5.1 if this Agreement
were in effect at such time or which, individually or in the aggregate, has had or could reasonably be expected to have a material adverse
effect on the business, operations and condition of the Business.

 

3.7.
Taxes.

 

(a)
For the purposes of this Agreement “Taxes” or “Tax” shall mean any (i) taxes, assessments,
charges, duties, fees, levies, imposts or other like assessments of any kind whatsoever in the nature of taxes, including federal, state,
local or foreign income, gross receipts, net proceeds, capital gains, capital, paid-up capital, ad valorem, turnover, real and personal
property (tangible and intangible), alternative or add-on minimum, sales, use, franchise, registration, business and occupation, margin,
estimated, excise, value added, stamp, leasing, lease, user, transfer, title, fuel, excess profits, premium, occupational, interest equalization,
windfall profits, license, payroll, environmental, capital stock, recording, inventory and merchandise, business privilege, federal highway
use, commercial rent, disability, severance, employee’s income withholding, other withholding unemployment and Social Security
taxes and any liability under unclaimed property, escheat, or similar Laws, which are imposed by any Governmental Body; (ii) interest,
penalties, fines or additions to tax or additional amounts imposed by any Governmental Body in connection with (a) any item described
in clause (i) or (b) the failure to comply with any requirement imposed with respect to any Tax Return and (iii) liability in respect
of any items described in clause (i) or (ii) payable by reason of contract (including any Tax sharing, allocation, indemnification or
similar agreement), assumption, transferee, successor or similar liability, operation of Law (including pursuant to Treasury Regulations
Section 1.1502-6 (or any predecessor or successor thereof or any analogous or similar state, local, or foreign Law)) or otherwise (or
(iv) liability for the payment of any amounts of the type described in clause (i) or (ii) arising as a result of Seller or any subsidiary
being (or ceasing to be) a member of any affiliated group within the meaning of Section 1504 of the Code (or any analogous combined,
consolidated, or unitary group defined under state, local or foreign Law) or being included (or required to be included) in any Tax Return
relating thereto. For the purposes of this Agreement “Tax Return” shall mean any report, return, declaration,
form, claim, informational return (including all Forms 1099) or statement required to be filed with any Governmental Body in connection
with any Taxes, including any schedule or attachment thereto or amendment thereof.

 

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(b)
Western Star is classified as an S Corporation for federal income tax purposes. All Tax Returns required to be filed by Seller for any
Pre-Closing Tax Period have been, or will be, timely filed in compliance with all applicable Laws. Such Tax Returns are, or will be,
true, complete and correct in all material respects. All Taxes due and owing with respect to the Business or the Purchased Assets or
by Seller (in each case, whether or not shown on any Tax Return) have been, or will be, timely paid. Seller have made available to Buyer
correct and complete copies of all federal income and other material Tax Returns, examination reports, and statements of deficiencies
assessed against or agreed to by Seller filed or received for all taxable years remaining open under the applicable statute of limitations.

 

(c)
No extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Seller, the Business or
the Purchased Assets, and Seller is not subject to any audit of Taxes..

 

(d)
No deficiencies have been asserted, threatened, claimed, proposed or assessed against the Seller or the Business, by audit or otherwise.

 

(e)
Seller is not a party to any Claim related to Taxes by any taxing authority or any other Governmental Body. There are no pending or threatened
Claims related to Taxes in writing against Seller by any taxing authority or any other Governmental Body. No written claim has been made
by any taxing authority or any other Governmental Body in any jurisdiction where Seller does not file Tax Returns that it is, or may
be, subject to Tax by that jurisdiction.

 

(f)
There are no Encumbrances for Taxes upon any of the Purchased Assets nor, to Seller’s Knowledge, is any taxing authority or any
other Governmental Body in the process of imposing any Encumbrances for Taxes on any of the Purchased Assets (in each case other than
statutory liens for current Taxes not yet due and payable).

 

(g)
Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

 

(h)
Seller has not entered into any transaction identified as a “reportable transaction” for purposes of Section 1.6011-4(b)
of the Code.

 

(i)
Seller has complied with all Laws relating to the payment and withholding of Taxes (including withholding of Taxes pursuant to Sections
1441, 1442, 1445 and 1446 of the Code or any corresponding or similar provisions of state, local or foreign Tax Law), and has, within
the time and in the manner prescribed by Law, withheld from all applicable employees’ and other service providers’ wages
and other compensation and paid over to the proper Governmental Bodies all amounts required to be so withheld and paid over under all
Laws, including federal, state, local and foreign Taxes, and has timely filed or provided all withholding Tax Returns in accordance with
Law.

 

(j)
Seller is not a party to or bound by any power of attorney with respect to Taxes, or by any Tax sharing, Tax indemnity, or Tax allocation
contract, and Seller does not have any Liability to another party under any such contract.

 

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(k)
Seller is not now, nor has ever been, a member of a consolidated, combined, unitary or aggregate group of which Seller was not the ultimate
parent corporation. Seller hasn’t any liability for the Taxes of any Person (other than Seller) under Treasury Regulations Section
1.1502-6 (or any corresponding or similar provision of state, local or foreign Tax law), as a transferee or successor, by contract or
otherwise. The Seller nor any “dual resident corporation” (within the meaning of Section 1503(d) of the Code) in which Seller
is considered to hold an interest, has incurred a dual consolidated loss within the meaning of Section 1503 of the Code.

 

(l)
Seller is not nor has been a party to a transaction or agreement that is in conflict with the Tax rules on transfer pricing in any relevant
jurisdiction. All applicable transfer pricing rules have been complied with, and all documentation required by all relevant transfer
pricing laws has been timely prepared.

 

(m)
Seller is not nor has been party to any joint venture, partnership or other arrangement or contract that is treated as a partnership
for federal income Tax purposes. No entity classification election pursuant to Treasury Regulations Section 301.7701-3 has ever been
filed with respect to Seller.

 

3.8.
Litigation. Except as set forth on Schedule 3.8, since January 1, 2018, there has been no lawsuit, action, mediation, allegation,
complaint, arbitration, hearing, investigation, inquiry, grievance, audit, notice of violation, proceeding, claim, demand, suit, cause
of action, charge, citation, governmental inquiry, summons, subpoena or investigation of any nature, civil, criminal, administrative,
regulatory or otherwise, whether at law or in equity, of any nature (“Claims” and each, a “Claim”)
relating to Seller or the Business and their respective operations including matters with customers, employees or independent contractors,
and no such matters are pending or threatened and, to the Seller’s Knowledge, there is no basis for any such matters. No action
or proceeding in bankruptcy or insolvency has been commenced or is threatened against any Seller Parties. Seller is not a party to any
settlement agreement with any current or former officer, employee or independent contractor of the Seller that involves allegations relating
to sexual harassment or misconduct. Seller has not received any notice of any allegations of sexual harassment or misconduct made against
any current or former officer or employee of Seller relating to or arising in connection with such officer or employee’s service
to the Seller and, to Seller’s Knowledge, no such allegations have been made.

 

3.9.
Compliance with Laws; Permits. Except as set forth in Schedule 3.9, Seller and the Business have at all times been operated
in compliance in all material respects with all applicable statutes, rules, regulations, orders, ordinances, judgments, decrees and requirements
of all federal, state and local commissions, boards, bureaus and agencies, including government third party payors having jurisdiction
over the applicable Seller and the operations of the Business and, to the extent having the force of law, any position statements, advisory
opinions, bulletins, notifications and other guidance relating to any of the foregoing in this definition (collectively, “Laws”).
Seller holds and has held all Permits (as defined below) required under any Laws to conduct the Business as currently conducted and Schedule
3.9 contains a list of all such Permits. Except as set forth on Schedule 3.9, no suspension or cancellation of any Permit
is pending or threatened. Seller Parties and the Business (i) are not subject to any existing, reasonably expected, or threatened action
alleging breach or violation of any federal, state or local Laws; (ii) are not subject to any existing, or reasonably expected or threatened
order or other liability arising from any actual or alleged violation of Law; (iii) have not received any written notice or other communication
from any Governmental Body or any other person or entity regarding any actual or alleged violation of or failure to comply with any applicable
Law in connection with the Business, or Seller’s licenses and permits, or the assets of Seller, including the Purchased Assets,
and (iv) have not received any written notice of a government third party payor billing and reimbursement claim or violation. No Selling
Party has received any notice from the regulatory authorities which enforce the statutory or regulatory provisions of any state’s
insurance commission or any similar entity, relating to any actual or alleged violation of such statutory or regulatory provisions. For
the purposes of this Agreement “Permit” or “Permits” shall mean any permit, approval,
registration, license, grant, authorization, exemption, order, qualification, accreditation, consent or other right or privilege issued,
granted, given or otherwise made available by or under the authority of any Governmental Body or other person pursuant to any Law.

 

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3.10.
Privacy Laws: Regulatory Compliance. The Seller, nor to Seller’s Knowledge, any vendor of Seller (in connection with services
or goods rendered to or at the direction of Seller or client or customer data generated or maintained by Seller), has experienced any
of the following: (1) any unauthorized access to, acquisition of, use of or disclosure of any “personally identifiable information”
or any confidential information, or (2) any unauthorized access to or use of any systems or networks of Seller or any vendor of Seller.

 

3.11.
Employees and Independent Contractors. Schedule 3.11(a) sets forth the names, titles, classification (with respect to (i)
FLSA and (ii) W-2 versus 1099) and hours of all employees and independent contractors of Seller (and which Seller employs or engages
such persons) who perform services in or on behalf of the Business, and the annual rate of compensation (including bonuses and benefits)
being paid to such employee or independent contractor as of the most recent practicable date. The employees and independent contractors
listed on Schedule 3.11(a) constitute all of the employees and independent contractors who are currently providing services to
Seller or are in any way necessary to the continued operation of the Business as the Business is now being conducted (collectively, the
“Seller’s Personnel”). Seller has at all times been in compliance in all material respects with all applicable
Laws concerning the employer-employee relationship and with all Contracts relating to the employment or engagement of Seller’s
Personnel and all former employees of Seller, including applicable wage and hour Laws, the Fair Labor Standards Act (“FLSA”),
safety Laws, leave and worker compensation Laws, unemployment, anti-discrimination and harassment Laws, employee safety and health Laws,
collective bargaining and concerted activity Laws, immigration Laws, Form I-9 practices, worker authorization, minimum wage and overtime
Laws, meal and rest periods Laws, payment and withholding of payroll Taxes, social security Laws and the Worker Adjustment and Retraining
Notification Act of 1988, as amended, or any similar state, local or non-U.S. Law (collectively, the “WARN Act”),
and to Seller’s Knowledge (as defined below) there is no reasonable basis for a claim by anyone that Seller or any of Seller’s
Personnel violated any of the foregoing. All Seller’s Personnel are, and have been, properly classified and treated in accordance
with applicable Laws with respect to compensation (including minimum wages and overtime pay) and with respect to being either an employee
or an independent contractor. To Seller’s Knowledge, no Seller’s Personnel is a party to any non-competition, non-interference,
non-solicitation or other such agreement with any third party that purports to prevent or limit the activities of Seller’s Personnel
in connection with the Business and Seller’s business as currently conducted. There is no pending or threatened workers’
compensation claim or matter with respect to any Seller’s Personnel employment with or service to Seller, including arising from,
or related to, Seller’s response to the 2020 severe acute respiratory syndrome coronavirus 2 pandemic (the “Coronavirus
Pandemic”). Seller Parties are not aware of any fraudulent actions conducted by Seller’s Personnel or any former
employees of Seller.

 

3.12.
Pension and Benefit Plans.

 

(a)
Schedule 3.12 lists each “employee benefit plan” (as that term is defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”)), as well as any health, welfare, pension, retirement, profit
sharing, deferred compensation, equity compensation, savings, severance, retention, bonus, change in control, leave, vacation, paid time
off, life insurance and disability plan, program, agreement and arrangement that (i) Seller sponsors or maintains or in which Seller
participates or to which it contributes or is required to contribute or as to which it has or may have any material liability and (ii)
covers any current or former employee or other service provider of Seller or their beneficiaries immediately prior to the Closing, other
than plans or arrangements established pursuant to statute (each, a “Plan”). The Seller nor any entity which
is or at any relevant time was a member of a “controlled group of corporations” under “common control” or in
an “affiliated service group” with Seller within the meaning of Section 414(b), (c), (m), or (o) of the Code sponsors, maintains,
contributes to or is required to contribute to or has sponsored, maintained, contributed to or been required to contribute to at any
time in the past six (6) years (A) any employee benefit plan subject to Title IV of ERISA or Section 412 of the Code, (B) any “multiemployer
plan” as defined in Section 3(37) of ERISA, (C) any “multiple employer plan” within the meaning of Section 210 of ERISA
or Section 413(c) of the Code, (D) any “multiple employer welfare arrangement” as defined in Section 3(40) of ERISA, (E)
any “voluntary employees’ beneficiary association” within the meaning of Section 501(c)(9) of the Code or (F) a “defined
benefit plan” as defined in Section 3(35) of ERISA.

 

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(b)
Current copies of each of the Plans (or a written description of any material unwritten Plans), including all amendments thereto, and
related contracts and trusts, to the extent applicable, have been provided or otherwise made available to Buyer. There has also been
provided to Buyer, with respect to each Plan, the following (to the extent applicable): (i) copies of the most recent Internal Revenue
Service determination letter or advisory or opinion letter with respect to each such Plan intended to qualify under Section 401(a) of
the Code; (ii) copies of the most recent summary plan descriptions and any summaries of material modifications thereto; (iii) copies
of the three most recent Form 5500 annual reports and accompanying schedules, the actuarial report (to the extent applicable); (iv) the
nondiscrimination testing results for the three most recent plan years; and (v) any material correspondence with any Governmental Body
with respect to any Plan during the last six years.

 

(c)
All Plans have been maintained, funded, and administered in compliance in all respects with their terms and all applicable Laws, including
ERISA and the Code, and each such Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination
or advisory opinion to support such qualified status and nothing has occurred which could reasonably be expected to result in the loss
of such qualified status. There are no actions, suits or claims pending or, to the Knowledge of Seller, threatened or reasonably anticipated
(other than routine claims for benefits) against, or with respect to, any Plan or the assets of any Plan. There is no matter pending
(other than routine qualification determination filings) with respect to any of the Plans before any Governmental Body.

 

(d)
With respect to each Plan, Seller does not have any direct or indirect, actual or contingent liability, other than to make payments for
contributions, premiums or benefits when due in the ordinary course of business, all of which payments have been made to the extent due.

 

(e)
Seller does not have any obligation to offer or provide health benefits to any employee following retirement or other termination, except
continuation coverage as required under Section 4980B of the Code (or equivalent state Law).

 

(f)
Each of the Plans is in compliance in all material respects with the applicable requirements of the Patient Protection and Affordable
Care Act.

 

(g)
None of the Plans nor any trust created thereunder or with respect thereto has engaged in any “prohibited transaction” or
“party-in-interest transaction” as such terms are defined in Section 4975 of the Code and Section 406 of ERISA that could
reasonably be expected to subject any of the Plans or any Seller to a Tax or penalty on prohibited transactions or party-in-interest
transactions pursuant to Section 4975 of the Code or Section 502(i) of ERISA.

 

(h)
Each Plan that is subject to Section 409A of the Code has been administered in all material respects in compliance with its terms and
the operational and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings,
and proposed and final regulations) thereunder; and Seller does not have any obligation to “gross up” any person for any
Taxes under Section 409A of the Code.

 

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(i)
Neither the execution and delivery of this Agreement by the Seller Parties nor the consummation of the Transactions will: (A) entitle
any current or former employee of Seller to severance pay, unemployment compensation, benefits, incentive compensation or any similar
payment; (B) accelerate the time of payment or vesting or increase the amount of any compensation due to any such employee or former
employee (other than payment for accrued vacation upon termination required under applicable law); (C) require any contribution or payment
to fund any obligations under any Plan; or (D) directly or indirectly result in any payment made to or on behalf of any person to constitute
a “parachute payment” within the meaning of Section 280G of the Code; and Seller does not have any obligation to “gross
up” any person for any Taxes under Section 4999 of the Code.

 

3.13.
Contracts. Seller has listed on Schedule 3.13(a) all of the current Contracts in effect for the operation of the Business
or to which The Seller is a party, including any Contracts to which any of the Purchased Assets is bound (the “Business Contracts”).
All of the Business Contracts that constitute Purchased Assets are listed on Schedule 3.13(b). Except as set forth on Schedule
3.13(c), (a) each of the Business Contracts is in full force and effect, (b) The Seller nor, to Seller’s Knowledge, any other
party is in breach of or default under any such Business Contract, (c) no facts or circumstances exist that with the passage of time
or the giving of notice, or both, would constitute an event of default by Seller or, to Seller’s Knowledge, any other party with
respect to any such Business Contract, (d) to Seller’s Knowledge, no party to any of the Business Contracts has declared or filed
for bankruptcy.

 

3.14.
Notices and Consents. Schedule 3.14 sets for a correct and complete list of all Required Consents as well as any notices
required (by contract or otherwise) to permit the assignment of the Assumed Contracts and other Purchased Assets to the Buyer and the
consummation of the Transactions (including Governmental Body regulatory approvals).

 

3.15.
Real Property. Seller does not own any real property. Schedule 3.15 sets forth a correct and complete list of all real
property leased or subleased by Seller, including the street address and the identity of the applicable lessor (“Leased Real
Property”). Except as set forth on Schedule 3.15, the applicable Seller has valid leasehold estates or, as the case
may be, valid leasehold interests, in all Leased Real Property, free and clear of all liens. Seller has not granted any person the right
to use or occupy any portion of any parcel of Leased Real Property or received notice of any claim of any person to the contrary. A correct
and complete copy of each lease for the Leased Real Property has been provided to Buyer. The Leased Real Property constitutes all of
the real property used in connection with the Business.

 

3.16.
Intellectual Property.

 

(a)
Seller owns or is properly licensed to use all Intellectual Property used in or necessary to conduct the business of Seller as presently
conducted or as currently proposed to be conducted by Seller. For purposes of this Agreement, “Intellectual Property”
means all United States and foreign patents (including design patents, if any), patent applications, registered trademarks, trademark
applications, unregistered trademarks, copyrights, copyright applications and registrations, trade dress, domain names, processes, trade
secrets and know-how. “Owned Intellectual Property” means Intellectual Property used by the applicable Seller
in which the Seller has or purports to have an ownership interest, and “Licensed Intellectual Property” means
any Intellectual Property licensed to the applicable Seller. Schedule 3.16(a)(i) sets forth a true, correct and complete list
of the following Owned Intellectual Property of Seller: all United States and foreign patents (including design patents, if any), patent
applications, registered trademarks, trademark applications, unregistered trademarks, filed, issued or registered copyrights and copyright
applications, and domain names registered in the name of, pending on behalf of, or owned by the Seller which list includes each name
used by the Seller in connection with the marketing or sale of products or services. The list included in Schedule 3.16(a)(i),
as to each item, shall also include, to the extent applicable, the registration or application number, the goods with which each patent
or mark on the list is registered and used, the country or countries in which each patent or mark is registered, applied for or used,
and the application date, registration date and renewal date for each such patent or mark, as applicable. Schedule 3.16(a)(ii)
identifies any Owned Intellectual Property which is licensed out to third parties and includes the name of such third party. Schedule
3.16(a)(iii) lists all Licensed Intellectual Property used by Seller and licensed from third parties (excluding shrink wrap or other
“off-the shelf” commercial software products), identifying the name of the third-parties.

 

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(b)
Except as listed in Schedule 3.16(b), the Owned Intellectual Property is owned by the applicable Seller free and clear of all
joint ownership, assignments, licenses, sublicenses, restrictions, liens, security interest and Encumbrances. To the Seller’s Knowledge,
after such inquiry as a reasonably prudent business person in similar circumstances would conduct, no products manufactured or sold in
Seller’s business nor the Owned Intellectual Property infringe or compete unfairly, or have been alleged to infringe or compete
unfairly with any patents, trademarks, service mark, copyrights or other intellectual property rights of any person or entity.
There are no other intellectual property rights within the definition of Intellectual Property used by Seller which are not either Owned
Intellectual Property or Licensed Intellectual Property.

 

(c)
There is (i) no infringement or misappropriation by any third party of any of the Owned Intellectual Property or the Licensed Intellectual
Property to the extent that it is exclusively licensed to Seller, and (ii) there is no infringement or misappropriation by Seller of
any Intellectual Property of any third party. No Seller has within the past three (3) years been party to or threatened with an infringement,
cancellation, opposition, declaratory judgment or similar action against or by, as appropriate, any third party concerning Intellectual
Property.

 

(d)
As to the Owned Intellectual Property listed or required to be listed in Schedule 3.16(a)(i) or (ii): (i) the rights are valid
and subsisting and legal title to such Intellectual Property is in the name of the applicable Seller, (ii) there is no pending or, to
the Seller’s Knowledge, after having made reasonable inquiry, threatened, governmental proceeding or governmental investigations
or other third-party claims, litigation or proceedings pending, asserted or threatened against Seller with respect to such Intellectual
Property, (iii) there are no co-existence agreements, consent decrees, judgments, consents, injunctions, settlement agreements or any
similar agreements which would affect or restrict or limit Seller’s ability to own and/or use the Owned Intellectual Property and,
to Seller’s Knowledge, the Licensed Intellectual Property in its business as currently conducted or currently proposed to be conducted;
and (iv) no third party has any right to receive or pay to any Seller any royalty nor are there any royalty free licenses of the Owned
Intellectual Property to which Seller or any other Seller Party is a party. As to the Licensed Intellectual Property listed in Schedule
3.16(iii), Seller is in compliance with all terms and conditions of the agreements under which such Licensed Intellectual Property
is used by Seller, and no consent of the owner thereof is required in connection with the transactions contemplated by this Agreement.

 

(e)
In the case of inventions of employees, officers or directors relating to Seller’s business, Seller has a valid ownership interest
in all such inventions and, to the extent required under applicable law, such inventions have been, or prior to Closing will be, validly
assigned to the Seller. There are no compensation claims of whatever nature against Seller with respect to any such inventions.

 

3.17.
Affiliate Transactions. Except for transactions between the Seller made in the ordinary course of the Business as historically
conducted or as set forth on Schedule 3.17, no officer, director, manager, direct or indirect equity holder (including Owners)
or Affiliate of any Seller Party is a party to any contract (other than employment agreements) or has any interest in any asset or property
owned or used by Seller or the Business.

 

3.18.
Brokers and Finders. Except as set forth in Schedule 3.18, no brokers or finders have been used in this transaction or
are otherwise entitled to any fee. Seller acknowledges and agree that the Seller Parties are responsible for the payment of all such
fees.

 

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3.19.
Insurance. Schedule 3.19 sets forth a complete list of all existing insurance policies of Seller that are maintained by,
for the benefit of, or at the expense of Seller (the “Insurance Policies”), correct and complete copies of
which have been made available to Buyer. Schedule 3.19 sets forth the name of the insurer under each Insurance Policy, the type
of policy, the policy number and the coverage amount thereunder. There is no claim pending under any Insurance Policy as to which coverage
has been questioned, denied or disputed by the underwriters of such Insurance Policy or which, to Seller’s Knowledge, will not
be covered in full by such Insurance Policy. All premiums due and payable under all Insurance Policies have been timely paid, and the
applicable Seller is otherwise in compliance with the terms of the Insurance Policies. All Insurance Policies remain in full force and
effect and to Seller’s Knowledge there is no threatened termination of, or material premium increase with respect to, any Insurance
Policy. The Insurance Policies (i) are adequate for compliance with all contracts to which the applicable Seller is a party in accordance
with the terms of such contracts, (ii) have been purchased with at least the required minimum limits required by Law, and (iii) provide
insurance coverage in the amounts indicated therein for the applicable Seller’s business, properties, assets and operations as
presently conducted (net of any prior claims paid thereunder to the extent that such claims reduce available amounts). Schedule 3.19
also describes all claims of Seller that are pending under the Insurance Policies (and the amount of insurance coverage available with
respect to each claim) or that have been paid to Seller or third parties during the past five (5) years. To Seller’s Knowledge,
no event insured under an Insurance Policy has occurred that has not been filed as a claim under such Insurance Policy.

 

3.20.
Environmental Matters.

 

(a)
Seller has been and is in material compliance with all Environmental Laws, which compliance includes the possession by the applicable
Seller of all Permits and other governmental authorizations required under Environmental Laws in relation to the Business and material
compliance with the terms and conditions thereof. Seller has not received any written notice or other written communication or, to Seller’s
Knowledge, any oral notice or other oral communication, whether from a Governmental Body, citizens group, employee or otherwise, that
alleges Seller is not in compliance with any Environmental Law, and, to Seller’s Knowledge, there are no circumstances that may
prevent or interfere with the compliance by Seller with any Environmental Law in the future. To Seller’s Knowledge, no client,
customer, or current or prior owner or lessor of any property leased or possessed by Seller has received any written notice or other
written communication, whether from a Governmental Body, citizens group, employee, or otherwise, that alleges that Seller or any such
current or prior owner is not or has not been in compliance with any Environmental Law.

 

(b)
To Seller’s Knowledge, there is and has been no release of Hazardous Materials that remains unresolved at any real property presently
owned, leased, or operated by Seller or at any real property formerly owned, leased, licensed or operated by Seller. Seller has not received
any request for information, notice of claim, demand or notification that it is or that indicates that it may be a “potentially
responsible party” with respect to any investigation or remediation of any threatened or actual release of any Hazardous Materials.
To Seller’s Knowledge, except as described in Schedule 3.20, no above ground or underground storage tanks, whether or not
in use, are or have ever been, located at any property currently or previously leased, owned or occupied by Seller. Sellers have made
available to Buyer all environmental, health and safety assessments, inspections, investigations, audit reports, studies, and analyses
conducted internally or externally or by a Governmental Authority and all related documents and correspondence, and all correspondence
with, and any documents to, from, on behalf of or about, any Governmental Authority, employee or third party regarding compliance with
or violations of applicable Environmental Law, or regarding releases or threatened releases of Hazardous Materials pertaining to the
leased real property, the workplace, or the current or historical operation of Seller, which are in the possession of either Seller or
its consultants, representatives or advisors.

 

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(c)
For purposes of this Agreement, “Environmental Laws” means any and all Laws, Permits, approvals, authorizations,
orders and other requirements having the force and effect of law, whether local, state, territorial or national, at any time in force
or effect relating to: (i) emissions, discharges, spills, releases or threatened releases of Hazardous Materials; (ii) the use, treatment,
storage, disposal, handling, manufacturing, transportation or shipment of Hazardous Materials; (iii) the regulation of storage tanks;
or (iv) otherwise relating to pollution or the protection of human health, safety or the environment. For purposes of this Agreement,
“Hazardous Material” means (i) all substances, wastes, pollutants, contaminants, toxins, and materials regulated,
or defined or designated as hazardous, extremely or imminently hazardous, dangerous or toxic, under Environmental Laws; (ii) all substances
with respect to which any Governmental Body otherwise requires environmental investigation, monitoring, reporting, or remediation; (iii)
petroleum and petroleum products and by products including crude oil and any fractions thereof; (iv) natural gas, synthetic gas, and
any mixtures thereof; and (v) radon, radioactive substances, asbestos, urea formaldehyde, and polychlorinated biphenyls.

 

3.21.
Warranties. Schedule 3.20 sets out the material terms of Seller’s warranty policies that apply to products or services
sold, leased, installed, delivered or provided by Seller on or before the date hereof and remain in effect as of the date hereof, and
identifies any exceptions to such policies, or deviations therefrom, granted to any customer or distributor in respect of product and/or
services which continues to be covered by such policies. Except as set forth on Schedule 3.20, there are no claims pending or,
to the Seller’s Knowledge, threatened against it, with respect to the quality of, or absence of defects in any of the products
or services sold, leased, installed, delivered or provided by Seller other than those incurred or expected to be incurred in the ordinary
course of the Business under the applicable Seller’s return/refund policies in effect from time to time (none of which, individually
or in the aggregate, are, or are expected to be, inconsistent in type or scope with the historical experience of Seller). There are (a)
no inherent design defects or systemic or chronic problems in any product sold, leased, installed, delivered or provided by Seller, (b)
no liabilities for warranty or other claims or returns with respect to any products sold, leased, installed, delivered or provided by
Seller relating to any such defects or problems, and (c) no liabilities arising out of any injury to individuals or property as a result
of any product or service sold, leased, installed, delivered or provided by Seller. Adequate warranty reserves have been included in
the balance sheets included in the Financial Statements.

 

3.22.
Anti-Corruption.

 

(a)
Since January 1, 2015, none of the Seller Parties, and, while acting for or on its behalf, each of either Seller’s officers, directors
and employees (the “Seller Relevant Persons”) have not, and to the Seller’s Knowledge, agents, distributors,
or sub-contractors of Seller or other persons or entities, while acting for or on behalf of Seller (the “Other Relevant Persons”)
have not, directly or indirectly, violated any provision of the U.S. Foreign Corrupt Practices Act of 1977 (as amended), the Corruption
of Foreign Public Officials Act or any other anti- corruption or anti-bribery law (collectively, the “Anti-Corruption Laws”)
to the extent applicable to Seller’s operations or Business.

 

(b)
The Seller and the other Seller Relevant Persons and Other Relevant Persons, while acting on Seller’s behalf, have not, directly
or indirectly made any offer, payment, promise to pay, gift, bribe, rebate, loan, payoff, kickback or any other transfer of value to
any person or entity for the purpose of inducing them to do any act or make any decision in an official capacity with respect to Seller,
including a decision to fail to perform an official function, or use his or her or its influence with a Governmental Body in order to
affect any act or decision of such Governmental Body for the purpose of assisting Seller to obtain or retain any business, or to facilitate
efforts of Seller to transact business or for any other improper purpose (e.g., to obtain a tax rate lower than allowed by law) in each
case in violation of applicable Anti-Corruption Laws.

 

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(c)
To the Seller’s Knowledge, there is no current investigation, allegation, request for information, or other inquiry by any Governmental
Body regarding the actual or possible violation of the Anti-Corruption Laws by Seller and since January 1, 2015, Seller has not received
any written notice that there is any investigation, allegation, request for information, or other inquiry by any Governmental Body regarding
an actual or possible violation of the Anti-Corruption Laws.

 

3.23.
Inappropriate Payments. None of the Seller Parties, and to the Seller’s Knowledge, any officer, director, agent, employee
or representative of Seller (in their respective capacities as such) has since January 1, 2015, directly or indirectly, offered, promised,
paid or made any gift, bribe, rebate, loan, payoff, kickback or payment, or provided anything else of value to any (a) officer of employee
of a Governmental Body (which for purposes of this provision also includes any instrumentality thereof and any state owned or state controlled
enterprise, or of a public international organization), (b) holder of public office, candidate for public office, political party, official
of a political party or member of a royal family or (c) any person or entity acting for or on behalf of any Governmental Body (any of
the foregoing, a “Government Official”), for the purpose of (i) inducing such Government Official to do any
act or make any decision in an official capacity, including a decision to fail to perform an official function, or (ii) using his or
her or its influence with a Governmental Body in order to affect any act or decision of such Governmental Body for the purpose of assisting
any person or entity to obtain or retain any business.

 

3.24.
Customers. Schedule 3.24 sets forth with respect to the Business the top [twenty-five (25)] customers (“Customers”)
by revenue for each of calendar 2019 and 2020, as well as for the period beginning January 1, 2021 and ended on (i) the last day of the
most recently completed calendar month prior to the Signing Date, with respect to the Preliminary Disclosure Schedules and (ii) the last
day of the most recently completed calendar month prior to the Closing Date with respect to the Updated Disclosure Schedules. Seller
has not received, either verbally and/or in writing, any notice that any Customer has ceased, or intends to cease after the Closing,
to use the services of the Business or to otherwise terminate or materially reduce its relationship with the Business. To Seller’s
Knowledge, no Customer intends to cease to use the services of the Business or to otherwise terminate or materially reduce its relationship
with the Business following the Closing.

 

3.25.
Vendors. Schedule 3.25 sets forth a true, complete and accurate list of the [twenty-five (25)] largest vendors (or other
service providers or independent contractors), excluding attorneys, accountants and other similar professional advisors, to Seller (based
on the aggregate value of materials, supplies, merchandise and other goods and services provided to Seller from such vendors or service
providers during such period) (the “Material Vendors”) and total purchase in dollars from each Material
Vendor, in each case, for each of calendar 2019 and 2020, as well as for the period beginning January 1, 2021 and ended on (i) the last
day of the most recently completed calendar month prior to the Signing Date, with respect to the Preliminary Disclosure Schedules and
(ii) the last day of the most recently completed calendar month prior to the Closing Date with respect to the Updated Disclosure Schedules.
Seller has not received any notice, and has no reason to believe, that any Material Vendor has ceased, or intends to cease or alter after
the Closing, its relationship with Seller or the Business or to otherwise terminate or materially reduce its relationship with the Business.

 

4.
REPRESENTATIONS AND WARRANTIES OF BUYER

 

As
of the Signing Date and as of the Closing Date, Buyer represents and warrants to the Seller Parties as follows:

 

4.1.
Organization. Buyer is duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation
or organization, as applicable.

 

4.2.
Authorization. Buyer has full power and authority to enter into this Agreement and perform its obligations hereunder and to carry
out the Transactions. The execution, delivery and performance by Buyer of this Agreement and the consummation of the Transactions have
been duly authorized and approved by all necessary corporate or limited liability company (as applicable) action. This Agreement, when
executed, will constitute a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms except
(i) to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting
the enforcement of creditors’ rights generally and (ii) that the availability of equitable remedies, including specific performance,
is subject to the discretion of the court before which any proceeding thereof may be brought.

 

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4.3.
No Violation. The execution and delivery of this Agreement by Buyer does not, and the consummation of the Transactions will not,
(a) violate any provision of, or result in the creation of any lien or security interest under, any material contract or agreement to
which Buyer is a party or by which any of Buyer’s assets or properties are bound; (b) violate any provision of the organizational
documents of Buyer, if applicable; (c) violate any order, arbitration award, judgment, writ, injunction, decree, statute, rule or regulation
applicable to Buyer; or (d) violate any other contractual or legal obligation or restriction to which Buyer is subject.

 

4.4.
Brokers and Finders. Buyer has not engaged or used any brokers or finders in this transaction.

 

4.5.
No Litigation. No action, suit, claim, arbitration, proceeding or investigation is pending or, to the knowledge of Buyer, threatened
against Buyer which questions or challenges the validity of any Transactions.

 

4.6.
No Conflicts. No consent, authorization, approval, order, license, certificate, permit, or declaration or filing with, any federal,
state, local, or other governmental authority or any court is required by Buyer for the execution, delivery or performance of this Agreement
or any other agreement identified herein by Buyer, except for any thereof as has been duly obtained.

 

4.7.
Non-Reliance on Seller Parties. Except as expressly set forth herein or in the agreements identified herein, Buyer has not received
any written notice from the Seller Parties or any third party on behalf of Seller Parties regarding the Purchased Assets or the Transactions.

 

5.
PRE-CLOSING COVENANTS

 

5.1.
Access to Information. Prior to the Closing, upon reasonable notice from Buyer to the Seller Parties, Seller will afford to the
officers, attorneys, accountants or other authorized representatives of the Buyer reasonable access during normal business hours to the
employees, properties, facilities, contracts and the books and records of Seller so as to afford Buyer reasonable opportunity to make
such review, examination and investigation of the Business as Buyer may desire to make and to obtain information required by Buyer’
debt finance sources. Prior to the Closing, the Seller Parties shall generally keep Buyer informed as to its progress with respect to
completion of the conditions set forth in Section 2.5 hereof.

 

5.2.
Conduct of Business. During the period from the Signing Date and continuing until the earlier of the termination of this Agreement
or the Closing, Seller Parties agree (unless such action is specifically contemplated by, or required to be taken pursuant to, this Agreement
or with the Buyer’s prior written consent) to carry on the Business in the usual, regular and ordinary course of business consistent
with past practice, and to, and institute all commercially reasonable policies to, (i) preserve intact its present business organization
and the rights and privileges pertinent to the Business, (ii) keep available the services of its present directors, officers, employees
and consultants, and (iii) preserve its relationships with customers, suppliers, distributors, licensors, licensees, independent contractors
and other persons having business dealings with it, all with the express purpose and intent of preserving unimpaired its goodwill and
ongoing business at the Closing. Without limiting the generality of the foregoing, during the period from the Signing Date and continuing
until the earlier of the termination of this Agreement or the Closing, Seller shall not, do, cause or permit any of the following, without
the prior written consent of the Buyer: (a) issue, sell or pledge the equity interests of Seller or additional equity interests of any
class, or securities convertible into any such equity, or any rights, warrants or options to acquire any such equity or other convertible
securities, or authorize or propose any of the foregoing; (b) propose or adopt any amendment to its organizational or constituent documents
or authorize or adopt a plan of complete or partial dissolution; (c) incur any indebtedness or issue any debt securities or assume, or
guarantee the obligations of any other person, other than trade indebtedness in the ordinary course of business; (d) increase in any
manner the rate or terms of compensation of any of its directors, officers and other employees, except such increases as are granted
in the ordinary course of business consistent with past practice, or enter into any employment, severance or collective bargaining agreement;
(e) except in the ordinary course of business, sell, transfer or otherwise dispose of any of its property or assets, (f) mortgage or
encumber any of its property or assets; (g) enter into, modify or amend, or terminate any contracts, except in the ordinary course of
business; (h) enter into any Contract or commitment involving an aggregate capital expenditure or commitment exceeding $5,000; (i) amend,
adopt or terminate any of its Plans, except as required by Law; (j) make any significant change in accounting methods, principles or
practices, except as may be required by applicable Law; (k) accelerate collection of any Accounts Receivable, delay payment of payables,
change credit practices or do anything to materially and adversely affect the relationship of customers or suppliers; (l) take any action
that would result in a breach of the representations and warranties contained in Article 3 of this Agreement; (m) make any cash
distributions to equity holders other than tax or other distributions in amounts and at times consistent with historical practice, or
(n) agree in writing to take any of the foregoing actions.

 

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5.3.
Acquisition Proposals. From and after the Signing Date until termination of this Agreement or Closing, each of the Seller Parties
shall not, and shall not authorize or permit any officer, director, manager or employee of, or any investment banker, attorney, accountant
or other representative retained by any Seller Party to, (i) encourage, solicit, initiate discussions (whether in writing or verbally),
facilitate (including by way of furnishing information) or continue inquiries or otherwise take any offers from or discuss any proposals
with any person or entity (other than with or on behalf of Buyer or its Affiliates), relating to the Transactions or any transfer, sale
or purchase of all or any portion of the Business, the Purchased Assets or the Owners’ equity interests in Seller, any recapitalization,
merger or business combination with or involving either of the Sellers or the Business, or any public or private securities offering
or financing or joint venture involving either of the Sellers or the Business (any of the foregoing, an “Acquisition Proposal”),
or (ii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal or take any actions
which may reasonably be expected to lead to any Acquisition Proposal. The Seller Parties agree that the rights and remedies for noncompliance
with this Section 5.3 shall include having such provision specifically enforced by any court having equity jurisdiction, it being
acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to Buyer and its Affiliates and that
money damages would not provide an adequate remedy to Buyer.

 

5.4.
Notice of Adverse Changes. From and after the Signing Date and prior to the Closing, Seller shall give Buyer prompt written notice
of ( but in no event more than three (3) days following) the occurrence of any of the following with respect to Seller, the Business
or the Purchased Assets:

 

(a)
any damage or destruction of Purchased Assets involving individually or in the aggregate more than $10,000;

 

(b)
the commencement or filing by or against Seller or the Business of any decree, judgment, order, proceeding or litigation at law or in
equity, arbitration or other proceeding before any Governmental Body which involves any license or Permit or which could reasonably be
expected to adversely affect the Business in any material respect;

 

(c)
any labor grievance, strike, request for union representation, controversy or dispute affecting the business or operations of the Business;

 

(d)
any violation or written notice of any alleged violation of any Law, license or Permit;

 

    	24

    	 

    

 

(e)
any notice of breach, default, claimed default, or termination of any Assumed Contract or Business Contract;

 

(f)
any other actual or threatened developments with respect to the business or operations of the Business which could reasonably be expected
to result in a Material Adverse Effect or a breach of any of the representations and warranties of the Seller Parties hereunder; or

 

(g)
any incurrence of indebtedness.

 

5.5.
Disclosure Schedules. Between the Signing Date and the Closing, any Seller Party shall promptly notify Buyer in writing if Seller
Party becomes aware of (i) any fact or condition that causes or constitutes a breach of any of the representations and warranties of
any Seller Party made as of the Signing Date or (ii) the occurrence after the Signing Date of any fact or condition that would cause
or be reasonably likely to cause or constitute a breach of any such representation or warranty had that representation or warranty been
made as of the time of the occurrence of, or Seller Party’s discovery of, such fact or condition. In addition, between the Signing
Date and the Closing, any Seller Party shall promptly notify Buyer of the occurrence of any breach of any covenant by Seller Party in
this Article 5 or of the occurrence of any event that may make the satisfaction of any condition in Section 2.5 or Section
2.6 impossible or unlikely. No disclosure pursuant to this Section 5.5 will (i) prevent or cure any breach of any representation
or warranty or covenant set forth herein, (ii) operate as a waiver or otherwise affect any representation, warranty or agreement given
or made by any Seller Party in this Agreement, and (iii) shall not be deemed to amend or supplement the Disclosure Schedules or cure
any breach of any representation, warranty or covenant set forth in this Agreement or any other Transaction Document.

 

5.6.
Financial Statements and Management Reports. Between the Signing Date and Closing, on or before the tenth (10th) day
of each calendar month, the Sellers shall provide Buyer with monthly unaudited combined financial statements (including results of operations
and a balance sheet) and any routine management financial or other reports prepared or developed by the Seller.

 

5.7.
Delivery of Disclosure Schedules. On or prior to the fourteenth (14th) day following the Signing Date, Sellers shall
deliver to Buyer the Preliminary Disclosure Schedules. In addition, on or prior to the earlier of November 15, 2022 or fourteen (14)
days following delivery to Buyer of the Closing Date Financial Statements (or such other date as Buyer and Sellers may agree), Sellers
shall deliver to Buyer the Updated Disclosure Schedules which shall supplement and/or update the disclosures contained in the Preliminary
Disclosure Schedules. The Updated Disclosure Schedules shall (i) expressly state that it is being made pursuant to this Section 5.7,
(ii) specify the representations and warranties to which it applies and (iii) describe in reasonable detail the changes, additions or
events to which it relates. Delivery of the Updated Disclosure Schedules shall not be deemed to cure any breach of any representation
or warranty contained in the Preliminary Disclosure Schedules nor shall any such Updated Disclosure Schedules be considered to constitute
or give rise to a waiver by Buyer of any condition set forth in this Agreement, unless Buyer specifically agrees thereto in writing.

 

6.
INDEMNIFICATION

 

6.1.
Indemnification by Seller Parties; Offset. Seller Parties hereby agrees to jointly and severally defend, indemnify and hold harmless
each Buyer and its affiliates (collectively, the “Buyer Indemnitees”) and shall reimburse Buyer Indemnitees
for, from and against each claim, loss, liability, damage, cost and expense (including without limitation interest, penalties, costs
of preparation and investigation, and the reasonable fees, disbursements and expenses of attorneys, accountants and other professional
advisors) (collectively, “Losses”), directly or indirectly relating to, resulting from, arising out of or incidental
to:

 

(a)
any inaccuracy in or breach of any of the representations or warranties by any Seller Party contained herein;

 

    	25

    	 

    

 

(b)
any breach or default of any covenant, agreement, or obligation of any Seller Party contained in this Agreement;

 

(c)
any Transaction Expenses or indebtedness of any Seller to the extent not taken into account in the calculation of Net Purchase Price;

 

(d)
any Losses arising from or relating to claims by customers, distributors or others relating to products or services sold, leased, installed,
delivered or provided by or at the direction of Seller prior to the Closing Date;

 

(e)
the operation of the Business prior to the Closing (other than with respect to any Assumed Liabilities); and

 

(f)
the Excluded Liabilities or Excluded Assets, including without limitation the Excluded Liabilities set forth on Schedule 6.1.

 

In
the event that Buyer is entitled to indemnification hereunder, then Buyer shall have the right to seek recourse with respect to any such
indemnification obligation against any or all of the Seller Parties and against any amounts otherwise due to any Seller Party under this
Agreement (including, without limitation, any amounts payable to Sellers pursuant to Section 2.7).

 

6.2.
Indemnification by Buyer. Buyer shall indemnify and hold each of Seller Parties and their respective affiliates, employees, officers,
agents, and representatives (collectively, the “Seller Indemnitees”), harmless from against, and in respect
of Losses directly or indirectly relating to, resulting from, arising out of or incidental to:

 

(a)
any inaccuracy in or breach of any of the representations or warranties by Buyer contained herein or in any other agreement, instrument,
or document entered into in connection with this Agreement;

 

(b)
any breach or default of any covenant, agreement, or obligation of Buyer contained in this Agreement or any other agreement, instrument,
or document entered into in connection with this Agreement;

 

(c)
the Assumed Liabilities of Buyer; and

 

(d)
any violation of Laws by Buyer arising after the Closing Date (excluding violations of Laws relating to an inaccurate representation
of a Seller Party).

 

6.3.
Tax Treatment of Indemnity Payments. Any indemnity payment under this Agreement shall be treated as an adjustment to the Purchase
Price unless there is no reasonable basis for doing so under applicable law.

 

6.4.
Buyer Investigation. The right to indemnification shall not be affected by any investigation conducted with respect to, or, except
for disclosures made in the Disclosure Schedules, any knowledge acquired (or capable of being acquired) at any time, whether before or
after the Signing Date, with respect to any representation, warranty, covenant or agreement in this Agreement.

 

6.5.
Materiality. Each of the representations and warranties that contains any “material adverse effect,” “material”
or similar materiality qualifications shall be read as though such qualifications were not contained therein for the purposes of determining
whether or not an indemnified party is entitled to indemnification pursuant to this Article 6 and the amount of Losses to which
such indemnified party may be entitled under this Article 6.

 

    	26

    	 

    

 

6.6.
Limitations on Seller Parties’ Indemnification Liability.

 

(a)
Threshold for Bringing Claims Against the Seller Parties. If a Buyer Indemnitee seeks indemnification for matters identified in
Section 6.1(a), the indemnification by the Seller Parties will not apply unless and until the aggregate Losses exceeds 2% of the
Purchase Price. (the “Indemnification Threshold”). Once the Indemnification Threshold has been reached (and
subject to the provisions and limitations contained in this Article 6), any indemnification obligations of the Seller Parties
under Section 6.1(a) will apply to the all Losses incurred for claims under Section 6.1(a) without regard to the Indemnification
Threshold.

 

(b)
Limitation of Aggregate Amount of Seller Parties’ Liability. Notwithstanding anything to the contrary set forth in this
Agreement, in no event will:

 

(i)
the total cumulative amount of Losses for which the Seller Parties may collectively be liable to the Buyer or Buyer Indemnitees under
Section 6.1(a) exceed the amount of the Closing Payment with respect to Losses resulting from or arising out of breaches of representations
and warranties other than the Fundamental Representations; and

 

(ii)
the total cumulative amount of Losses for which the Seller Parties may collectively be liable to the Buyer or Buyer Indemnitees under
Section 6.1(a) with respect to Fundamental Representations exceed the Net Purchase Price.

 

(c)
Exceptions to Indemnification Limitations. Notwithstanding anything to the contrary contained in this Article 6, the limitations
on liability contained in Section 6.6(a) and 6.6(b) shall not apply to (i) fraud by the Seller Parties. For purposes of
this Agreement, “fraud” shall mean knowing, intentional or grossly negligent misrepresentation, misstatement,
concealment or omission.

 

6.7.
Indemnification Procedures. If any of the Buyer Indemnitees or Seller Indemnitees (each, an “Indemnified Party”)
wishes to seek indemnification under this Article 6, the Indemnified Party shall give written notice thereof to the Seller Parties
or the Buyer, as the case may be (the Seller Parties or the Buyer, in their capacity as indemnifying parties hereunder are referred to
as “Indemnifying Parties”); provided, that in the case of any action or lawsuit brought or asserted by a third
party (a “Third Party Claim”) that would entitle the Indemnified Party to indemnity hereunder, the Indemnified
Party shall promptly notify the Indemnifying Parties of the same in writing; provided, further, that the failure to so notify the Indemnifying
Parties promptly shall not relieve the Indemnifying Parties of their indemnification obligation hereunder except to the extent that the
Indemnifying Parties have been materially prejudiced thereby. Any request for indemnification made by an Indemnified Party shall be in
writing, shall specify in reasonable detail the basis for such claim, the facts pertaining thereto and, if known and quantifiable, the
amount thereof (a “Claim Notice”). No claim for indemnification may be asserted or brought under this Agreement
unless a Claim Notice is delivered to the Indemnifying Parties prior to the expiration of the survival period (if any) for the applicable
representation, warranty or covenant (in which case the claims identified in such Claim Notice may be prosecuted until their conclusion).
If the Indemnifying Parties object to the indemnification of an Indemnified Party in respect of any claim or claims specified in any
Claim Notice, the Indemnifying Parties shall deliver a written notice specifying in reasonable detail the basis for such objection to
the Indemnified Party, within thirty (30) calendar days after delivery by the Indemnified Party of such Claim Notice (the “Dispute
Statement”). If a Dispute Statement is not received by the Indemnified Party within such thirty (30) day period, the amount
set forth in the Claim Notice shall be deemed accepted by the Indemnifying Parties and shall be conclusive and binding upon the Indemnifying
Parties. If the Indemnifying Parties delivers to the Indemnified Party a Dispute Statement applicable to all or any portion of a claim
within the period for delivery of the same set forth above, then the amount in dispute by the Indemnifying Party in such Dispute Statement
shall not be payable to the Indemnified Party until either (i) Buyer and the Seller Parties jointly agree in writing to the resolution
of the amount in dispute in such Dispute Statement, or (ii) a court of competent jurisdiction enters a final unappealable order regarding
the claim and the amount in dispute in such Dispute Statement.

 

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In
the case of any Third Party Claim, if within forty-five (45) calendar days after receiving a Claim Notice, an Indemnifying Parties give
written notice to the Indemnified Party stating (A) that the Indemnifying Parties would be liable for indemnity under the provisions
hereof if such Third Party Claim were valid, (B) that the Indemnifying Parties dispute and intend to defend against such claim and (C)
that the Indemnifying Parties will be solely responsible for all costs, expenses and liabilities incurred in connection with or otherwise
relating to such claim, then counsel for the defense shall be selected by the Indemnifying Parties (subject to the consent of the Indemnified
Party, which consent shall not be unreasonably withheld), whereupon the Indemnifying Parties shall not be required to make any payment
to the Indemnified Party for the costs of its defense counsel in respect of such Third Party Claim as long as the Indemnifying Parties
are conducting a good faith and diligent defense; provided, that the Indemnified Party shall at all times have the right to fully participate
in such defense at its, his or her own expense directly or through counsel. If the Indemnifying Parties assume the defense in accordance
with the preceding sentence, they shall have the right, with the consent of the Indemnified Party, which consent shall not be unreasonably
withheld, to settle the portion of such Third Party Claim that is subject to indemnification; provided, that the settlement (1) does
not involve the imposition of an injunction or other equitable relief on the Indemnified Party or any of its affiliates and (2) expressly
and unconditionally releases the Indemnified Party and its applicable affiliates from all Losses with respect to such Third Party Claim
(and all other claims arising out of the same or similar facts and circumstances), with prejudice. The Indemnifying Parties shall keep
the Indemnified Party apprised of the status of any Third Party Claim for which it has assumed the defense, shall furnish the Indemnified
Party with all documents and information that such Indemnified Party reasonably requests, and shall consult with the Indemnified Party
prior to acting on major matters, including settlement discussions. Notwithstanding any of the foregoing, the Indemnifying Parties shall
not have the right to assume control of the defense, if the Third Party Claim which the Indemnifying Parties seeks to assume control
of: (aa) seeks non-monetary relief; (bb) involves criminal or quasi-criminal allegations; (cc) is one in which any of the Indemnifying
Parties and the Indemnified Party are both named in the complaint; or (dd) involves a claim for which an adverse determination would
have a material adverse effect on the Indemnified Party’s or any of its applicable affiliates’ reputation or future business
prospects. If notice of intent to dispute and defend is not given by the Indemnifying Parties within the time period referenced above,
or if such diligent good faith defense is not being or ceases to be conducted, then the Indemnified Party may undertake the defense of
(with counsel selected by such Indemnified Party), and shall have the right to compromise or settle, such Third Party Claim in its sole
discretion; provided, however, that such compromise or settlement (x) shall not be determinative of whether such claim is indemnifiable
hereunder of or the amount of Losses relating the such claim without the consent of the Indemnifying Parties, which shall not be unreasonably
withheld, and (y) may not be made without the consent of the Indemnifying Parties unless such settlement or compromise (i) does not involve
the imposition of an injunction or other equitable relief on the Indemnifying Party, or any criminal or quasi-criminal allegations against
any of the Indemnifying Parties, and (ii) expressly and unconditionally releases the Indemnifying Parties from all Losses with respect
to such Third Party Claim (and all other claims arising out of the same or similar facts and circumstances), with prejudice.

 

6.8.
Exclusive Remedy. From and after the Closing, this Article 6 shall be the sole and exclusive remedy for any claim or controversy
arising out of or relating to any breach or inaccuracy of any representation or warranty made by any of the Seller Parties pursuant to
Section 6.1(a) or by Buyer pursuant to Section 6.2(a); provided, however, that (1) nothing in this Agreement shall prevent
or restrict the right of any party to obtain injunctive or other equitable relief with a court of competent jurisdiction, and (2) the
exclusivity provisions of this Section 6.8 shall not apply to claims for fraud arising under or relating to the Transactions.

 

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7.
SURVIVAL

 

7.1.
Survival. Except as otherwise stated herein, the representations and warranties contained herein shall survive the Closing and
any investigation made by or on behalf of any Party hereto, until the eighteen (18)-month anniversary of the Closing Date; provided that
the representations and warranties in Sections [3.1, 3.2, 3.3, 3.5, 3.6(a), 3.7, 3.8, 3.9, 3.12 , 3.17, 3.18, 3.20, 3.21, 3.22,
3.23, 4.1, 4.2 and 4.3] (the “Fundamental Representations”) shall survive the Closing
and any investigation made by or on behalf of any Party hereto, until the later of (x) sixty (60) days after expiration of the applicable
statute of limitations, and (y) the seventh (7th) anniversary of the Closing Date. For purposes of clarity, all of the covenants
or other agreements of the Parties set forth in this Agreement shall survive the Closing Date in accordance with their respective terms
or, if no such term is specified, until the seven (7) year anniversary of the Closing Date. The Parties hereby acknowledge and agree
that they are contractually extending the statutes of limitations with respect to certain matters specified pursuant to this Section
7.1.

 

8.
COVENANTS

 

8.1.
Confidentiality and Non-Disparagement.

 

(a)
Confidentiality. The Parties, shall, and shall cause their representatives to, treat as confidential and safeguard and not disclose
or use for the benefit of any person or business (other than the Business) any and all non-public, confidential or proprietary information,
knowledge and data about the Business, the Seller Parties or the Buyer (the “Confidential Information”), except
to the extent that such information can be shown to have been generally available to the public other than as a result of the disclosure
by such person or its representatives. If, after the Closing, a Party, or any of their respective representatives are legally required
to disclose any Confidential Information, such person shall, to the extent permitted by applicable Law, (i) promptly notify all other
Parties to permit any other Party to seek a protective order or take other appropriate action and (ii) cooperate as reasonably requested
by any other Party in its efforts to obtain a protective order or other reasonable assurance that confidential treatment will be accorded
such Confidential Information. If, after the Closing and in the absence of a protective order, any Party or any of their respective representatives
is compelled as a matter of Law to disclose Confidential Information to a third party, such person and its representatives may disclose
to the third party compelling disclosure only the part of such Confidential Information as is required by Law to be disclosed; provided,
however, that, prior to any such disclosure, such person and its representatives will, to the extent permitted by applicable Law, use
good faith efforts to advise and consult with all other Parties and their counsel as to such disclosure and the nature and wording of
such disclosure.

 

(b)
Non-Disparagement. No Party shall, directly or indirectly, make any comments (written, oral, electronic or otherwise) that could
be reasonably construed as defamatory concerning the Business, the Seller Parties, any Buyer or any respective employee or independent
consultant thereof to any person, at any time, including, but not limited to, customers, clients, vendors, current or former or future
employees of the Business, the Seller Parties or any Buyer or affiliate thereof, financial or credit institutions, the media or the general
public.

 

8.2.
Transfer Taxes. All personal property transfer, documentary, sales, use, stamp, registration, and other such similar Taxes, and
all conveyance fees, recording charges, and other fees and charges (including any penalties and interest) imposed in connection with
the transfer of the Purchased Assets to the Buyer shall be paid by the Seller Parties.

 

8.3.
Use of Name. Following the Closing Date, the Seller Parties shall have no rights to use any trademarks or tradenames of the Business,
including, but not limited to, the names “Western Star” or any variants thereof. As soon as reasonably possible after the
Closing Date (and in any event within thirty (30) calendar days), the Seller Parties shall cease all use of such names and the Seller
Parties shall take all action reasonably necessary, including, without limitation, amending Western Star’ organizational documents
and submitting name change filings in all applicable jurisdictions, to change the name of Western Star so that such name does not include
the words “Western Star” or any variants thereof.

 

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8.4.
Offer of Employment to Seller Employees. Subject to the outcome of Buyer’s standard investigations, including background
checks, Buyer will endeavor to offer “at will” employment to all of the full-time employees of the Sellers on terms, including
compensation and benefits, substantially consistent with those Seller had accorded such employees immediately prior to the Closing Date
(other than as set forth in the Employment Agreements with respect to the Owner or as provided in any written employment letters between
Buyer and employees of any Seller) with such employment to be effective on the Closing Date.

 

8.5.
Access to Books and Records. The Buyer will afford the Seller Parties and their respective advisors, during normal business hours,
reasonable access to any and all books and records included in the Purchased Assets, in Buyer’s possession with respect to periods
through the Closing and the right to make copies and extracts therefrom solely to the extent that such access may be reasonably required
by the requesting party, in connection with (i) the preparation of tax returns or financial statements, (ii) any tax audit, tax protest
or other proceeding relating to taxes, (iii) the determination or enforcement of rights and obligations under this Agreement or the Transactions,
(iv) compliance with the requirements of any Governmental Body, (v) any actual or threatened lawsuit, legal proceeding, administrative
enforcement proceeding or arbitration before any Governmental Body or (vi) for purposes of determining and/or verifying the amounts payable
pursuant to Section 2.7. The Seller Parties will afford Buyer and its advisors, during normal business hours, reasonable access
to any business, financial and accounting records retained by Seller Parties with respect to the Business, including, without limitation,
any Excluded Records.

 

9.
JOINT COVENANTS

 

Buyer
and Seller Parties covenant and agree that they will act in accordance with the following:

 

9.1.
Consents. Promptly following the execution of this Agreement, the Parties will proceed to prepare and file with the appropriate
Governmental Bodies any requests for approval or waiver, if any, that are required from Governmental Bodies in connection with the Transactions,
and the Parties shall diligently and expeditiously prosecute and cooperate fully in the prosecution of such requests for approval or
waiver and all proceedings necessary to secure such approvals and waivers. The Seller Parties shall use commercially reasonable efforts
to obtain at the earliest practicable date all consents, waivers and approvals from, and provide all notices to, all persons, set forth
on Schedule 3.14. All such consents, waivers, approvals and notices shall be in writing and in form and substance reasonably satisfactory
to Buyer, and executed counterparts of such consents, waivers and approvals shall be delivered to Buyer promptly after receipt thereof,
and copies of such notices shall be delivered to Buyer promptly after the making thereof. Notwithstanding anything to the contrary in
this Agreement, Buyer shall not be required to pay any amounts in connection with obtaining any consent, waiver or approval set forth
in Schedule 3.14.

 

9.2.
Further Assurances. Following the Closing, as and when requested by any Party and at such Party’s expense, any other Party
shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken,
all such further or other actions as such other Party may reasonably deem necessary to evidence and effectuate the Transactions. Without
limiting the foregoing:

 

(a)
Seller Parties shall promptly forward or cause to be forwarded to Buyer any mail received by Seller Party that relates to the Purchased
Assets or the Assumed Liabilities. Buyer shall promptly forward or cause to be forwarded to Seller any mail received that relates to
the Excluded Assets or the Excluded Liabilities; and

 

    	30

    	 

    

 

(b)
Seller Parties agree to promptly endorse and pay over or cause to be endorsed and paid over to Buyer any payment received by Seller Party
after the Closing Date in respect of any Accounts Receivable or goods sold or services, in each case, to the extent rendered after the
Closing Date.

 

10.
TERMINATION

 

10.1.
Termination. This Agreement may be terminated and the Transactions may be abandoned at any time prior to the Closing Date:

 

(a)
by mutual written consent of Sellers and the Buyer;

 

(b)
by Sellers, on one hand, or Buyer, on the other hand, if there shall be any Law that makes consummation of the Transactions illegal or
otherwise prohibited or if any order enjoining either Buyer or any Seller Party from consummating the Transactions is entered and such
order shall not have been vacated or stayed within thirty (30) days of the entry thereof;

 

(c)
by the Buyer if: (i) at any time there has been a misrepresentation, breach of warranty or breach of covenant on the part of a Seller
Party in any of the representations, warranties or covenants under this Agreement which breach is not curable, or, if curable, is not
cured within ten (10) days after written notice of such breach is given to Sellers; (ii) a Material Adverse Effect has occurred; (iii)
Sellers have failed to timely deliver the Preliminary Disclosure Schedules, the Updated Financial Statements or the Closing Financial
Statements, (iv) should Buyer not be satisfied with the results of its due diligence with respect to Sellers or the Business at any time
prior to the later of fourteen (14) days following delivery of (A) the Closing Financial Statements or (B) any Updated Disclosure Schedules,
or (iv) Buyer has failed to obtain financing satisfactory to Buyer in connection with the Transactions, so long as Buyer has not, in
bad faith, caused the debt financing arrangements to fail in order to terminate this Agreement for reasons unrelated to the debt financing;

 

(d)
by the Seller Parties if there has been a material misrepresentation, material breach of warranty or material breach of covenant on the
part of Buyer in any of the representations, warranties or covenants under this Agreement which breach is not curable, or if curable,
is not cured within ten (10) days after written notice of such breach is given to Buyer; or

 

(e)
by Buyer, on the one hand, or Seller Party, on the other hand, if the Closing has not occurred prior to December 31, 2022; provided,
however that the Parties shall use their commercially reasonable good faith efforts to cause the Closing to occur on or prior to November
30, 2022; provided, however, that the right of Buyer under Section 10.1(c) and Section 10.1(e) and the right of the Seller
Parties under Section10.1(d) and Section 10.1(e) shall not be available to such Party if such Party’s breach of any
obligation under this Agreement has been the cause of, or resulted in, the failure of such transaction to occur on or before such date.
The Party desiring to terminate this Agreement pursuant to this Section 10.1 shall give written notice of such termination to
the other Parties, as applicable, in accordance with Section 11.3 hereof.

 

10.2.
Effect of Termination. If this Agreement is terminated pursuant to Section 10.1, this Agreement shall become void and of
no effect with no liability on the part of any Party, except that the agreements contained in this Section 10.2 and Article
11 hereof shall survive the termination of this Agreement.

 

11.
MISCELLANEOUS

 

11.1.
Expenses. All fees and expenses incurred by any of the Seller Parties, including without limitation legal fees and expenses, in
connection with this Agreement will be borne by the Seller Parties and all fees and expenses incurred by Buyer, including without limitation
legal fees and expenses, in connection with this Agreement will be borne by Buyer; provided that Transaction Expenses will be paid in
accordance with the terms of Section 2.1.

 

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11.2.
Entire Agreement; Amendment; Severability. This Agreement, including the exhibits, schedules, lists and other documents and writings
referred to herein or delivered pursuant hereto, which form a part hereof, contains the entire understanding of the Parties with respect
to its subject matter. This Agreement supersedes all prior agreements and understandings between the Parties with respect to its subject
matter. This Agreement may not be amended, or any term or condition waived, unless signed by the party to be charged or making the waiver.
The invalidity of any term or terms of this Agreement shall not affect any other term of this Agreement, which shall remain in full force
and effect.

 

11.3.
Notices. All notices, requests, demands and other communications under this Agreement shall be in writing, shall be receipted
in writing by the recipient, and delivered in person, or sent by reputable courier or overnight delivery service, or US Certified mail,
return receipt requested, and properly addressed as follows:

 

if
to Buyer, to:

 

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

 

If
to any Selling Party:

Mr.
Gabe Salmons Western Star , LLC

 

1507
Ranger Highway

Weatherford,
TX 76086

gabe@westernstarconcrete.com

 

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

 

Jack
Eggleston

Eggleston
King Davis, LLP

102
Houston Avenue, Suite 300

Weatherford,
TX 76086

jack@ekdlaw.com

 

Any
party may from time to time change its address for the purpose of notices to that party by a similar notice specifying a new address,
but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents.
All notices and other communications required or permitted under this Agreement shall be in writing. Such notices and other communications
shall be effective upon receipt if hand delivered or three (3) business days after mailing if sent by US certified mail return receipt
requested, and one (1) business day after dispatch if sent by courier or overnight delivery service, in each case with a receipt signed
by the recipient and to the addresses provided in accordance with this Section 11.3.

 

11.4.
Section and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.

 

11.5.
Counterparts. This Agreement may be executed in one or more counterparts, 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. Delivery of an executed
counterpart of this Agreement by facsimile or other electronic imaging means shall be effective as an original.

 

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11.6.
Binding Provisions; Assignment; Parties in Interest. This Agreement shall inure to the benefit of and be binding upon the Parties
hereto and their respective heirs, executors, administrators, successors and assigns. Nothing in this Agreement is intended to confer
any rights or remedies under or by reason of this Agreement on any persons other than the Parties to it and their respective successors
and permitted assigns. Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third persons
to any party to this Agreement. No Party may assign this Agreement or assign or delegate, as applicable, any of its rights, interests
or obligations hereunder without the prior written approval of Buyer and Seller; provided, that (a) Buyer may assign, delegate or otherwise
transfer this Agreement or its rights and obligations hereunder to any of its affiliates or to any successor or purchaser of any part
of the business of Buyer without such approval, and (b) Buyer may assign this Agreement and any of the provisions hereof without such
approval for collateral security purposes to any lenders providing financing to Buyer, in each case, so long as Buyer remains responsible
for all such obligations hereunder.

 

11.7.
Applicable Law; Jurisdiction. This Agreement shall be governed by and construed and enforced in accordance with the laws of the
State of Delaware without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws
of any other jurisdiction. Each Party irrevocably agrees that any proceeding against them arising out of or in connection with this Agreement
or the Transactions or disputes relating hereto (whether for breach of contract, tortious conduct or otherwise) shall be brought exclusively
in state or federal courts located in Los Angeles County, California, and hereby irrevocably accepts and submits to the exclusive jurisdiction
and venue of the aforesaid courts in personam with respect to any such proceeding and waives to the fullest extent permitted by
Law any objection that it may now or hereafter have that any such proceeding has been brought in an inconvenient forum.

 

11.8.
Waiver of Jury Trial. Each party hereby waives, to the fullest extent permitted by Law,
any right it may have to a trial by jury in respect to any PROCEEDING OR LITIGATION directly or indirectly arising out of, under or in
connection with this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby or disputes relating
hereto or thereto. Each party (a) certifies that no representative, agent or attorney of any other party has represented, expressly or
otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that
it and the other party hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications
in this Section 11.8.

 

11.9.
Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
The Parties further acknowledge and agree that prior drafts of this Agreement and the other agreements and documents contemplated hereby
will not be deemed to provide any evidence as to the meaning of any provision hereof or the intent of the Parties with respect hereto
and prior drafts will be deemed to be the joint work product of the Parties. Any reference to any federal, state, local, or foreign statute
or Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The
word “including” shall mean “including without limitation”. Where the context so requires, the singular shall
include the plural and vice-versa.

 

11.10.
Recitals. The recitals set forth above are incorporated herein by reference as reflecting the general understanding and intent
of the Parties.

 

    	33

    	 

    

 

11.11.
Non-Waiver. The failure in any one or more instances of a Party to insist upon performance of any of the terms, conditions or
covenants of this Agreement, to exercise any right or privilege in this Agreement conferred, or the waiver by said party of any breach
of any term, condition or covenant of this Agreement shall not be construed as a subsequent waiver of any such term, condition, covenant,
right, or privilege, but the same shall continue in full force and effect.

 

11.12.
Incorporation of Schedules and Exhibits. The schedules and exhibits hereto are incorporated into this Agreement and shall be deemed
a part hereof as if set forth herein in full. References herein to this “Agreement” and the words “herein,” “hereof”
and words of similar import refer to this Agreement (including its schedules and exhibits as an entirety).

 

11.13.
Certain Definitions. For purposes of this Agreement, (i) “Knowledge” or “knowledge”)
of any of the Seller Parties shall mean the knowledge of Owner, and for purposes of this Agreement, an individual shall be deemed to
have knowledge of a particular fact or other matter if (A) such individual is actually aware of such fact or other matter or (B) such
individual would be expected to discover or otherwise become aware of such fact or other matter after reasonable investigation, and (ii)
“Contract” or “contract” with respect to any person or entity, any contract, agreement,
lease, license, commitment, arrangement or undertaking, written or oral, or other document or instrument to which or by which such person
or entity is a party or otherwise subject or bound or to which or by which any asset, property or right of such person or entity is subject
or bound, including all amendments, supplements and other modifications thereto, (iii) an “Affiliate” or “affiliate”
shall mean (A) with respect to an individual, (1) the members of the immediate family (including parents, siblings and children) of the
individual, (2) the individual’s spouse, and (3) any other person or entity that directly or indirectly, through one or more intermediaries
is Controlled by, or is under common Control with, any of the foregoing individuals, or (B) with respect to any entity, any other person
or entity that, directly or indirectly, Controls, is Controlled by, or is under common Control with or of, such entity, and (iv) “Control”
or “control” (including, with correlative meaning, the terms “Controlled by” and “under common
Control with”), as used with respect to any person or entity, means the possession, directly or indirectly, of the power to direct
or cause the direction, management or policies of such person or entity, whether through the ownership of voting securities, by contract
or otherwise. For the avoidance of doubt, the “affiliates” of any trust shall include the beneficiaries, the trustees, and
the grantor of such trust.

 

[Remainder
of page intentionally left blank]

 

    	34

    	 

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Asset Purchase Agreement as of the date first above written.

 

	BUYER:	 
	 	 	 
	Endonovo
    Therapeutics, Inc.	 
	 	 
	By:	 	 
	Name:
    	Alan
    Collier	 
	Title:
    	CEO	 

 

Address:
6320 Canoga Avenue, 15th Floor

Woodland
Hills, CA 91367

 

Signature
Page to Asset Purchase Agreement

 

    	 

    	 

    

 

	SELLERS:	 
	WESTERN STAR CONCRETE , LLC

                                                                     a
Texas limited liability company
	 
	 	 	 
	By:	 	 
		Gabriel
    Marc Salmons	 
	 	Manager	 
	 	 	 
	OWNER:
    	 
	 	 	 
	By:	 	 
	 	Gabriel
    Marc Salmons	 

 

[Signature
Page to Asset Purchase Agreement]Document

Exhibit 10.1
Execution Version

SECURITIES PURCHASE AGREEMENT
THIS SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of September 26, 2022, by and among Exicure, Inc., a Delaware corporation (the “Company”), and each purchaser identified on Schedule 1 hereto (each, including its successors and assigns, a “Purchaser” and together, the “Purchasers”). Capitalized terms used herein but not otherwise defined shall have the meanings given to them in Section 1.6.
RECITALS
A.    On the terms and subject to the conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company at Closing (as hereinafter defined), that number of shares of common stock, $0.0001 par value, of the Company set forth opposite such Purchaser’s name on Schedule 1 hereto at a purchase price specified in Section 1.1.
B.    The shares of Common Stock issued to the Purchaser[s] pursuant to this Agreement shall be referred to in this Agreement as the “Shares”.
C.     The parties acknowledge that the sale of the Shares to the Purchaser will constitute in the Purchaser holding more than 19.99% of the Company’s outstanding shares of Common Stock as of the date hereof (the “Exchange Cap”).
D.    The Board of Directors of the Company (the “Board”) has unanimously determined that this Agreement and the transactions contemplated hereby are advisable, fair and in the best interests of the Company and its stockholders.
AGREEMENT
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:
ARTICLE I
PURCHASE AND SALE
1.1    Authorization of Sale of Shares. Subject to the terms and conditions of this Agreement, each Purchaser agrees to, severally and not jointly, purchase from the Company, that number of Shares as set forth opposite each Purchaser’s name on Schedule 1 attached hereto, at a price per Share equal to $1.60 (the “Price Per Share” and the total purchase price for the Shares to be paid by each Purchaser, the “Share Purchase Price”); provided, that, if during the period from the date hereof until and including the Closing, the Company issues to any Person any shares of Company Common Stock or similar securities convertible into, exchangeable for or having the right to subscribe for shares of Company Common Stock at a price per share less than the Price Per Share (other than shares of Company Common Stock issued upon the exercise of options, warrants or similar securities outstanding as of the date hereof), the number of Shares issued to each Purchaser at the Closing will be proportionally and ratably increased such that the Shares issued to each Purchaser will not be affected by any such dilution.
1.2    Closing. Subject to the occurrence of the Closing Event, upon the terms and conditions set forth in this Agreement, at the Closing, the Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase from the Company, the Shares (the closing of 
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	271063633 v6

such transaction, the “Closing”).  The parties understand and agree that, assuming Stockholder Approval is obtained and the other conditions to Closing are satisfied or waived, the Closing shall take place at the offices of Cooley LLP, 500 Boylston Street, Boston, Massachusetts, 02116 or at such other place as the Company and the Purchasers may mutually agree upon, orally or in writing. 
1.3    Payment.  On the Closing Date, (a) each Purchaser shall pay to the Company its Share Purchase Price in United States dollars and in immediately available funds, by wire transfer to the Company’s account as set forth in instructions previously delivered to each Purchaser, and (b) the Company shall irrevocably instruct American Stock Transfer & Trust Company, LLC (the “Transfer Agent”) to deliver to such Purchaser the number of Shares set forth opposite such Purchaser’s name on Schedule 1 hereto, duly executed on behalf of the Company and registered in the name of such Purchaser as set forth on the Stock Registration Questionnaire included as Exhibit A. 
1.4    Closing Deliverables.  
(a)    Company.  On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:
(i)    a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver the number of Shares set forth opposite such Purchaser’s name on Schedule 1 hereto, registered in the name of such Purchaser as set forth on the Stock Registration Questionnaire included as Exhibit A; and
(ii)    the Registration Rights Agreement, duly executed by the Company; 
(b)    Purchasers. On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:
(i)    a fully completed and duly executed Stock Registration Questionnaire in the form attached hereto as Exhibit A;
(ii)    the Registration Rights Agreement, duly executed by each Purchaser;
(iii)    a fully completed and duly executed Accredited Investor Qualification Questionnaire in the form attached hereto as Exhibit B; 
(iv)    a fully completed and duly executed Bad Actor Questionnaire in the form attached hereto as Exhibit C; and 
(v)    the Share Purchase Price by wire transfer to the account specified by the Company.
(c)    Further Assurances.  On or prior to the Closing Date, the parties hereto shall execute and deliver or cause to be executed and delivered such additional documents that take such additional actions as the parties may reasonably deem to be practical and necessary in order to consummate the transactions contemplated hereby.
1.5    [Reserved].
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1.6    Defined Terms Used in This Agreement.  In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person. For the purposes of this definition, “control,” when 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; and the terms of “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing. 
“Company Common Stock” means the Company’s common stock, par value $0.0001 per share.
“Nasdaq” means The Nasdaq Stock Market LLC.
“Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.
“Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of the Closing Date, by and between the Company and the Purchasers, in the form of Exhibit D attached to this Agreement.
“Stockholder Approval” means such approval as may be required by the applicable rules and regulations of Nasdaq (or any successor entity) from the stockholders of the Company with respect to the transactions contemplated by this Agreement and the Transaction Documents, including the issuance of all of the Shares in excess of the Exchange Cap.
“Trading Day” means a Nasdaq trading day. 
“Transaction Documents” means this Agreement, the Registration Rights Agreement and the annexes and exhibits attached hereto and thereto.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
    Subject to and except as set forth in the SEC Documents (as defined below), the Company hereby represents and warrants to each Purchaser as of the date hereof as follows. For purposes of these representations and warranties (other than those in Sections 2.2, 2.3, 2.5 and 2.6), the term the “Company” shall include any subsidiaries of the Company, unless otherwise noted herein.
2.1    Organization, Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted and as described in the reports filed by the Company with the United States Securities and Exchange Commission (the “Commission”) pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since the end of the Company’s 2021 fiscal year through the date hereof, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022. The Company is qualified to do business as a foreign corporation and is in good standing in every jurisdiction in which the failure to be so qualified would have or would 
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reasonably be expected to have, individually or in the aggregate, a material adverse effect upon the business, properties, assets, liabilities, operations, financial condition or results of operations of the Company, or the ability of the Company to perform its obligations under the Transaction Documents (a “Material Adverse Effect”). 
2.2    Authorization; Enforcement. Subject to Stockholder Approval, the Company has the requisite corporate power and authority to enter into and perform the Transaction Documents and to issue and sell the Shares to be issued by the Company in accordance with the terms hereof. The execution, delivery and performance of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action (subject to the receipt of Stockholder Approval), and no further consent or authorization of the Company, its board of directors or stockholders is required, other than Stockholder Approval. When executed and delivered by the Company, this Agreement shall constitute a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. The Board, at a meeting duly called and held, adopted resolutions approving the transactions contemplated hereby, including the issuance of the Shares to be issued by the Company pursuant to this Agreement.
2.3    Issuance of Shares. The issuance of the Shares has been duly authorized by all necessary corporate action, other than Stockholder Approval, and, when paid for and issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable. In addition, the Shares will be free and clear of all liens, claims, charges, security interests or agreements, pledges, assignments, covenants, restrictions or other encumbrances created by, or imposed by, the Company and rights of refusal of any kind imposed by the Company (other than as provided in the Transaction Documents or restrictions on transfer under applicable securities laws) and the holder of the Shares shall be entitled to all rights accorded to a holder of Company Common Stock.
2.4    No Conflicts; Governmental Approvals. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) violate any provision of the Company’s certificate of incorporation or bylaws as currently in effect, (ii) conflict with, or constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party or by which the Company’s properties or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected (except for Stockholder Approval). Other than obtaining Stockholder Approval, the Company is not required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell the Shares to be issued by the Company in accordance with the terms hereof, other than filings that have been made, or will be made, or consents that have been obtained, or will be obtained, pursuant to the rules and regulations of Nasdaq, including Stockholder Approval, a Nasdaq Listing of Additional Shares notification form, applicable state securities laws and post-sale filings pursuant to applicable state and federal securities laws which the Company undertakes to file or obtain within the applicable time periods and the filings required to be made pursuant to this Agreement.
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2.5    Capitalization. The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and nonassessable and are not subject to any preemptive rights, rights of first refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in the Company’s most recent annual report on Form 10-K or subsequent quarterly reports on Form 10-Q (other than the grant of additional awards under the Company’s equity incentive plans or changes in the number of outstanding shares of Company Common Stock due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible or exchangeable into, shares of Company Common Stock, in each case outstanding as of the date set forth in the Company’s most recent annual report on Form 10-K or quarterly report on Form 10-Q). Except as disclosed in the Company’s most recent annual report on Form 10-K or subsequent quarterly reports on Form 10-Q, the Company does not have any outstanding options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities (other than the grant of additional awards under the Company’s equity incentive plans).
2.6    SEC Documents, Financial Statements. The Company represents and warrants that as of the date hereof, the Company Common Stock is registered pursuant to Section 12(b) of the Exchange Act. Since January 1, 2021, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting requirements of the Exchange Act (the “SEC Documents”). At the times of their respective filing, all such reports, schedules, forms, statements and other documents of the Company conformed in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder. Except as disclosed in the SEC Documents, at the times of their respective filings, such reports, schedules, forms, statements and other documents of the Company did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the Commission or other applicable rules and regulations with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects the consolidated financial position of the Company as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
2.7    No Liabilities. Except for as disclosed to the Purchaser, the Company has no liabilities or obligations (accrued, absolute, contingent or otherwise), other than liabilities or obligations (i) reflected on the most recent balance sheet of the Company included in the SEC Documents, (ii) incurred in the ordinary course of business since the date of the most recent balance sheet of the Company included in the SEC Documents, (iii) incurred in connection with this Agreement, (iv) incurred pursuant to contracts binding on the Company (other than those resulting from a breach thereof), or (v) that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect or prevent the consummation of the transactions contemplated hereby.
2.8    [Reserved].
2.9    Accountants.  The Company represents and warrants that KPMG LLP, whose report on the financial statements of the Company is filed with the Commission in the 
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Company’s Annual Report on Form 10-K for the year ended December 31, 2021, was, at the time such report was issued, an independent registered public accounting firm as required by the Securities Act. Except as described in the SEC Documents and as preapproved in accordance with the requirements set forth in Section 10A of the Exchange Act, to the Company’s knowledge, KPMG LLP has not engaged in any non-audit services prohibited by subsection (g) of Section 10A of the Exchange Act on behalf of the Company.
2.10    Internal Controls. The Company has established and maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles in the United States and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company’s internal control over financial reporting is effective and the Company is not currently aware of any material weaknesses in its internal control over financial reporting.
2.11    Disclosure Controls. The Company has established and maintains disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that are designed to comply with the requirements of the Exchange Act applicable to the Company; such disclosure controls and procedures have been designed to ensure that material information relating to the Company is made known to the Company’s principal executive officer and principal financial officer by others within those entities; and such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established. The Company has conducted evaluations of the effectiveness of its disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act. Since the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal controls or in other factors with respect to the Company that could significantly affect the Company’s internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses. The Company is in compliance in all material respects with all provisions currently in effect and applicable to the Company of the Sarbanes-Oxley Act of 2002, and all rules and regulations promulgated thereunder or implementing the provisions thereof.
2.12    Intellectual Property. Except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) the Company owns, or otherwise has the right to use (including pursuant to license, sublicense, agreement or permission), the patents, trademarks, service marks, patent applications, trade names, copyrights, trade secrets, domain names, information, know-how, proprietary rights and processes (collectively, “Intellectual Property”) reasonably necessary to conduct the business of the Company as described in the SEC Documents and as currently conducted (excluding commercially available off-the-shelf software programs that are licensed to the Company or its subsidiaries pursuant to “shrink-wrap” licenses for a total cost of less than $30,000), without any known conflict with or infringement of the Intellectual Property of others, (ii) to the Company’s knowledge, there has not been any infringement by any third party of any Intellectual Property or other similar rights of the Company, and (iii) the Company has not received any written communications alleging that the Company has violated, infringed or conflicted with, or, by conducting its business as described in the SEC Documents, would violate, infringe or conflict with any of the Intellectual Property of any other person or entity.
2.13    Taxes. The Company has (i) paid all material federal, state, local and foreign taxes required to be paid through the date hereof, except (x) any such taxes being contested in good faith and for which adequate reserves have been established in accordance with applicable 
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accounting requirements or (y) if a failure to pay such taxes would not reasonably be expected to have a Material Adverse Effect, and (ii) filed all material tax returns required to be filed through the date hereof, in each case except for (x) those returns for which a request for extension has been filed or (y) any failure to file that would not reasonably be expected to have a Material Adverse Effect; and there is no tax deficiency that has been asserted against the Company, except where such deficiencies, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.
2.14    Employee Matters. No labor disturbance by or dispute with employees of the Company exists or, to the Company’s knowledge, is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the employees of any of the Company’s principal suppliers, manufacturers, contractors or customers, except as would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. The Company has not received any notice of cancellation or termination with respect to any collective bargaining agreement to which it is a party.
2.15    Employee Benefits.  Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any organization which is a member of a controlled group of corporations within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”) has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to, ERISA and the Code, except for noncompliance that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. No prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, excluding transactions effected pursuant to a statutory or administrative exemption, has occurred with respect to any Plan that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any member of its Controlled Group have ever maintained or contributed to or participated in a Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA or a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA. There is no pending audit or investigation by the Internal Revenue Service, the U.S. Department of Labor or any other governmental agency or any foreign regulatory agency with respect to any Plan that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
2.16    Environmental Laws. The Company and its subsidiaries (A) are, and at all times for the two years preceding the date of this Agreement have been, in compliance in all material respects with any and all applicable federal, state, local and foreign laws, rules, regulations, requirements, decisions, decrees, orders and other legally enforceable requirements relating to Hazardous Substances, the environment, natural resources or the protection of human or worker health or safety (collectively, “Environmental Laws”), (B) have obtained and are in compliance with all permits, licenses, certificates or other authorizations or approvals required of them under applicable Environmental Laws for the conduct of their respective businesses as currently conducted, (C) have not received notice of any actual or potential liability (including such liability of a third party that would reasonably be expected to materially and adversely affect the Company or any of its subsidiaries) under or relating to, or actual or potential violation of, any Environmental Laws, including for the investigation or remediation of any release or threat of release of any pollutant, contaminant or toxic or hazardous material, substance or waste or petroleum or any fraction thereof (each a “Hazardous Substance”), (D) are not conducting or paying for, in whole or in part, any investigation, remediation or other corrective action pursuant to any Environmental Law at any location, and (E) are not a party to any order, decree or agreement that imposes any obligation or liability under any Environmental Law, and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company or 
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its subsidiaries, except, in the case of each of (i) and (ii) above, for any such failure to comply, or failure to receive required permits, licenses or approvals, or cost, obligation or liability, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There has been no storage, generation, transportation, use, handling, treatment, release or threat of release of Hazardous Substances by, due to or caused by the Company or any of its subsidiaries (or, to the Company’s knowledge, any other entity (including any predecessor) for whose acts or omissions the Company or any of its subsidiaries is or would reasonably be expected to be liable) at, on, under or from any property or facility now or previously owned, operated or leased by the Company or any of its subsidiaries, or at, on, under or from any other property, in violation of any Environmental Laws or in a manner or amount or to a location that would reasonably be expected to result in any liability under any Environmental Law, except for any violation or liability which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
2.17     Insurance. Except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) the Company and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, which insurance is in amounts and insures against such losses and risks as are, in the reasonable judgment of the Company, ordinary and customary for comparable companies in the same or similar businesses and (ii) neither the Company nor any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.
2.18    Anti-Corruption Laws. In the last five years, none of the Company or any of its subsidiaries, or any director, officer, or employee thereof, or, to the Company’s knowledge, any agent, or representative of the Company or of any of its subsidiaries, has, while acting on behalf of the Company or any of its subsidiaries, taken or will take any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment, giving or receipt of money, property, gifts or anything else of value, directly or indirectly, to any government official (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) in order to influence official action, or to any person in violation in any material respect of any applicable anti-corruption laws. In the last five years, the Company and each of its subsidiaries have conducted their respective businesses in compliance in all material respects with applicable anti-corruption laws. Neither the Company nor any of its subsidiaries will use, directly or indirectly, the proceeds of the transactions contemplated by this Agreement in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any person in violation of any applicable anti-corruption law.
2.19    Money Laundering Laws. The operations of the Company and each of its subsidiaries are and have been conducted at all times in compliance in all material respects with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company and each of its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
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2.20    Data Privacy. Since January 1, 2021, except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) the Company and its subsidiaries have operated their business in a manner compliant with (a) all applicable privacy, data security and data protection laws and regulations, (b) all legally binding contractual obligations, and (c) all written, externally distributed Company policies, for each (i)(a) through (c), governing the collection, handling, usage, disclosure and storage of personally identifiable data in the Company’s possession or control, as that term (or similar terms) are defined under applicable privacy, data security and data protection laws (“Personal Data, (ii)  the Company has implemented and maintains policies and procedures designed to ensure the integrity, security and confidentiality of Personal Data collected, handled, used, disclosed and/or stored by the Company in connection with the Company’s operation of its business, (iii)  the Company requires third parties which process Personal Data on its behalf to maintain measures designed to protect the privacy and security of such Personal Data, as applicable, and (iv) since January 1, 2021, the Company has not experienced any actual security incident that has resulted in unauthorized access, acquisition, alteration or modification, loss, theft or other unauthorized processing of any Personal Data.
2.21    No Material Adverse Change. Except as disclosed in the SEC Documents or to the Purchaser, since December 31, 2021, there has not been:
(a)    any change in the assets, liabilities, financial condition or operating results of the Company from that reflected in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, except for changes in the ordinary course of business which have not had and would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; 
(b)    any declaration or payment by the Company of any dividend, or any authorization or payment by the Company of any distribution, on any of the capital stock of the Company, or any redemption or repurchase by the Company of any securities of the Company; 
(c)    any material damage, destruction or loss, whether or not covered by insurance, to any assets or properties of the Company; 
(d)    any waiver, not in the ordinary course of business, by the Company of a material right or of a material debt owed to it; 
(e)    any satisfaction or discharge of a material lien, claim or encumbrance or payment of any obligation by the Company, except in the ordinary course of business; 
(f)    except as described in the SEC Documents, any change or amendment to the Company’s Certificate of Incorporation or Bylaws, or termination of or material amendment to any contract of the Company that the Company is required to file with the Commission pursuant to Item 601(b)(10) of Regulation S-K; 
(g)    any material labor difficulties or labor union organizing activities with respect to employees of the Company; 
(h)    except as described in the SEC Documents, any material transaction entered into by the Company other than in the ordinary course of business; 
(i)    the loss of the services of any executive officer (as defined in Rule 405 under the Securities Act) of the Company; or
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(j)    any other event or condition that has had or would reasonably be expected to have a Material Adverse Effect.
2.22    No Undisclosed Events or Circumstances. Except as disclosed in the SEC Documents, since December 31, 2021, except for the consummation of the transactions contemplated herein, to the Company’s knowledge, no event or circumstance has occurred or exists with respect to the Company or its businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed.
2.23    Litigation. Except as disclosed in the SEC Documents or otherwise disclosed to each Purchaser, no action, suit, proceeding or investigation is currently pending or, to the knowledge of the Company, has been threatened in writing against the Company that: (i) concerns or questions the validity of this Agreement; (ii) concerns or questions the right or authority of the Company to enter into the Transaction Documents and to perform its obligations thereunder; or (iii) is reasonably likely to have a Material Adverse Effect. The Company is neither a party to nor subject to the provisions of any material order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company currently expects to have a Material Adverse Effect.
2.24    Compliance. The Company (i) is not in violation of any provision of the Company’s certificate of incorporation or bylaws as currently in effect, (ii) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (iii) is not in violation of any order of any court, arbitrator or governmental body, or (iv) is not or has not been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business, except in each case (other than with respect to clause (i) above) for such defaults or violations as would not have a Material Adverse Effect.
2.25    [Reserved].
2.26    Investment Company Act. The Company is not and, after giving effect to the offering and sale of the Shares, will not be an “investment company” or an entity “controlled” by an “investment company,” as such terms are defined in the Investment Company Act of 1940.
2.27    Private Placement.  Assuming the accuracy of each Purchaser’s representations and warranties set forth in Article III hereof, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers hereunder.  The Shares (i) were not offered by any form of general solicitation or general advertising (as such terms are defined in Regulation D under the Securities Act) and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or any state securities laws.  No disqualifying event described in Rule 506(d)(1)(i)-(viii) under the Securities Act (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person (as defined below), except for a Disqualification Event as to which Rule 506(d)(2)(ii)-(iv) or (d)(3) under the Securities Act is applicable. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under the Securities Act. “Company Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 under the Securities Act, any person listed in the first paragraph of Rule 506(d)(1) under the Securities Act.
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2.28    No Integrated Offering. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares or that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of Nasdaq such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction.
2.29    Shell Company Status.  The Company is not, and has not been since September 26, 2017, an issuer identified in Rule 144(i)(1) of the Securities Act.  The Company filed current “Form 10 information” (as defined in Rule 144 (i)(3)) with the SEC reflecting its status as an entity that was no longer an issuer described in Rule 144(i)(1)(i) more than one (1) year ago from the date hereof. 
2.30    [Reserved].
2.31    [Reserved].
2.32    CFIUS.  The Company does not engage in (i) the design, fabrication, development, testing, production or manufacture of one or more “critical technologies” within the meaning of section 721 of the Defense Production Act, 50 U.S.C. § 4565, and all implementing regulations thereof (the “DPA”); (ii) the ownership, operation, maintenance, supply, manufacture, or servicing of “covered investment critical infrastructure” within the meaning of the DPA; or (iii) the maintenance or collection, directly or indirectly, of “sensitive personal data” of U.S. citizens within the meaning of the DPA.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASERS
    Each Purchaser, for itself and for no other Purchaser, hereby represents, warrants and covenants to the Company as follows:
3.1    Authorization and Power.  Such Purchaser has the requisite power and authority to enter into and perform the Transaction Documents and to purchase the Shares being sold to it hereunder. The execution, delivery and performance of this Agreement by such Purchaser and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and no further consent or authorization of such Purchaser or its board of directors, stockholders or other governing body is required. When executed and delivered by such Purchaser, this Agreement shall constitute a valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.
3.2    No Conflict. The execution, delivery and performance of the Transaction Documents by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby do not and will not (i) violate any provision of such Purchaser’s charter or organizational documents, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation to which such Purchaser is a party or by which such Purchaser’s properties or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree 
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(including federal and state securities laws and regulations) applicable to such Purchaser or by which any property or asset of such Purchaser are bound or affected.
3.3    Purchaser Sophistication; Accredited Investor. Such Purchaser (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to, investments in shares presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company and investments in comparable companies, and has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Shares; (b) in connection with its decision to purchase the Shares, relied only upon the SEC Documents, other publicly available information, and the representations and warranties of the Company contained herein; (c) is an “accredited investor” pursuant to Rule 501 of Regulation D under the Securities Act; (d) is acquiring the Shares for its own account for investment only and with no present intention of distributing any of the Shares or any arrangement or understanding with any other persons regarding the distribution of the Shares; (e) has not been organized, reorganized or recapitalized specifically for the purpose of investing in the Shares; (f) will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire to take a pledge of) any of the Shares except in compliance with the Securities Act and applicable state securities laws; (g) understands that the Shares are being offered and sold to it in reliance upon specific exemptions from the registration requirements of the Securities Act and state securities laws, and that the Company is relying upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Shares; (h) understands that its investment in the Shares involves a significant degree of risk, including a risk of total loss of such Purchaser’s investment (provided that such acknowledgment in no way diminishes the representations, warranties and covenants made by the Company hereunder); and (i) understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Shares.
3.4    Private Placement. Such Purchaser acknowledges and agrees that the Shares are being offered in a transaction not involving a public offering within the meaning of the Securities Act and that the Shares have not been registered under the Securities Act.  Such Purchaser acknowledges and agrees that the Shares may not be offered, resold, transferred, pledged or otherwise disposed of by such Purchaser absent an effective registration statement under the Securities Act or an applicable exemption from the registration requirements of the Securities Act, including Rule 144 promulgated thereunder. 
3.5    Ownership of Capital Stock. Except as previously disclosed to the Company in writing or by email and excluding the Shares, such Purchaser and its Affiliates beneficially own no shares of capital stock of the Company as of the date hereof.
3.6    Stock Legends. Such Purchaser acknowledges that certificates or book-entry credits evidencing the Shares shall bear a restrictive legend in substantially the following form (and including related stock transfer instructions and record notations):
THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR 
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PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY.
3.7    No Legal, Tax or Investment Advice. Such Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to such Purchaser in connection with the purchase of the Shares constitutes legal, tax or investment advice. Such Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares. 
3.8    No General Solicitation; Pre-Existing Relationship. Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement (as defined in Regulation D under the Securities Act). Such Purchaser also represents that such Purchaser was contacted regarding the sale of the Shares by the Company (or a representative of the Company) and the Shares were offered to such Purchaser solely by direct contact between such Purchaser and the Company (or an authorized representative of the Company). Such Purchaser did not become aware of this offering of Shares, nor were the Shares offered to such Purchaser, by any other means.
3.9    Purchase Entirely for Own Account.  The Shares to be received by such Purchaser hereunder will be acquired for such Purchaser’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state securities laws.  Nothing contained herein shall be deemed a representation or warranty by such Purchaser to hold the Shares for any period of time.
3.10    Experience of the Purchasers.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.
3.11    Disclosure of Information.  Such Purchaser has had an opportunity to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the Shares.  The Purchaser acknowledges receipt of copies of the SEC Documents (or access thereto via EDGAR).  Neither such inquiries nor any other due diligence investigation conducted by such Purchaser shall modify, limit or otherwise affect such Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement.
3.12    [Reserved].
3.13    No Rule 506 Disqualifying Activities. Neither such Purchaser nor any person or entity with whom such Purchaser will share beneficial ownership of the Shares is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)-(viii) under the Securities Act.
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3.14    Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Company or such Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of such Purchaser. 
3.15    Disclaimer of Other Representations and Warranties. Except as expressly set forth in Article II (as qualified by the SEC Documents) or in any other Transaction Document, such Purchaser acknowledges that neither the Company nor any other Person has made or is making any representation or warranty of any kind, express or implied, at law or in equity, including with respect to it or any of its subsidiaries or any of their respective businesses, assets, liabilities, condition (financial or otherwise), prospects or operations, or otherwise, and any such other representations and warranties are hereby expressly disclaimed by the Company. Without limiting the foregoing, such Purchaser has received and may continue to receive from the Company certain estimates, projections, forecasts and other forward-looking information, as well as certain business plans and cost-related plan information, regarding the Company, its subsidiaries and their respective businesses and operations, and such Purchaser is making its own evaluation of the adequacy and accuracy of all such estimates, projections, forecasts and other forward-looking information, as well as such business plans and cost-related plan information, and such Purchaser has not relied upon and will not have any claim against the Company or any of its subsidiaries, or any of their respective stockholders, directors, officers, employees, Affiliates, advisors, agents or representatives, or any other Person, with respect thereto.
ARTICLE IV
COVENANTS OF THE PARTIES
4.1    Lockup.
(a)    Agreement to Lock-Up.  Each Purchaser hereby agrees that it will not, without the prior written consent of the Company during the period commencing on the Closing Date and ending on the date that is ninety (90) days after the Closing Date (the “Lock-Up Period”) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Company Common Stock; or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any shares of Company Common Stock, whether any such transaction described in clause (a) or (b) above is to be settled by delivery of Company Common Stock or other securities, in cash or otherwise; provided, that this Section 4.1 shall not apply to any transfer of Shares by such Purchaser to its Affiliates, provided that as a condition of such transfer, such Affiliate agrees in writing to be bound by the provisions of this Section 4.1 to the same extent as such Purchaser.  Notwithstanding the foregoing, each Purchaser or their respective Permitted Transferees may transfer shares of Company Common Stock during the Lock-Up Period (a) to (i) such Purchaser’s officers or directors, (ii) any immediate family members of such Purchaser’s officers or directors, or (iii) any direct or indirect partners, members or equity holders of Purchaser or any related investment funds or vehicles controlled or managed by such persons or entities or their respective affiliates, (b) to the Company; or (c) in connection with a liquidation, merger, stock exchange, reorganization, tender offer approved by the Board or a duly authorized committee thereof or other similar transaction which results in all of the Company’s stockholders having the right to exchange their shares of Company Common Stock for cash, securities or other property subsequent to the Closing Date; provided, however, that in the case of clauses (a)(i) to (a)(iii), it shall be a condition to the transfer that the Permitted Transferee execute an agreement stating that the Permitted Transferee is receiving and holding such capital stock subject to this Section 4.1 and there shall be no further transfer of such capital stock except in accordance with this Section 4.1, and provided further that any such transfer shall not involve a disposition for value.  The term “Permitted Transferees” means, prior to the 
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expiration of the Lock-Up Period, any person or entity to whom such Purchaser is permitted to transfer such shares of Company Common Stock prior to the expiration of the Lock-Up Period pursuant to this Section 4.1(a).
(b)    Stop Transfer Instructions.  In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the shares of Company Common Stock of such Purchaser (and transferees and assignees thereof) until the end of such restricted period.
4.2    Board Rights. Subject to Nasdaq Listing Rule 5640 (the “Voting Rights Rule”), for so long as the Purchasers (and their Affiliates) beneficially own the Shares, the Purchaser shall be entitled to designate for recommendation by the Nominating and Corporate Governance Committee of the Board and, upon such recommendation, nomination by the Board, the number of directors substantially equivalent to the Purchaser’s proportional equity ownership of shares of Common Stock of the Company from time to time as set forth below (any individual designated by the Purchasers, the “Purchaser Designee”). For the avoidance of doubt, for so long as the Purchasers (and their Affiliates) as a shareholder group beneficially own a majority of voting stock of the Company, the Purchasers shall be entitled to designate a majority of directors of the Board as long as such nomination of said directors would not violate the Voting Rights Rule after consultation with Nasdaq. For the further avoidance of doubt, the said majority of directors means three directors in a five-member Board, or four directors in seven-member Board or likewise. In order to effectuate the intent of this Section 4.2, upon closing and thereafter, the Board, at all times and to the extent feasible to do so, shall be composed of an odd number of directors. Notwithstanding the foregoing, each Purchaser Designee must be reasonably acceptable to the Nominating and Corporate Governance Committee of the Board of Directors and the Board, including completion of a satisfactory background check and each Purchaser Designee shall have provided the Nominating and Governance Committee of the Board such information as the Nominating Committee customarily requests pursuant to its charter then in effect or pursuant to the Company’s bylaws, to determine that such board designee is not otherwise disqualified by applicable Nasdaq or Commission rules or regulations from service on the Board. The Company agrees to take all necessary corporate and other actions, including increasing or reducing the size of the Board, if necessary, and filling any vacancy or available directorship by vote of the Board, to permit the designees nominated by the Purchasers to constitute the percentage of the Board substantially equivalent to such Purchaser’s proportional equity ownership of shares of Common Stock, pursuant to the Company’s certificate of incorporation and bylaws. The Purchasers may not assign the rights set forth in this Section 4.2. In the event that Nasdaq informs the Company that it is not in compliance with the Voting Rights Rule as a result of the Purchaser’s rights under this Section 4.2, the Purchaser shall cooperate with the Company to promptly remedy such non-compliance, including replacing or relinquishing its right to a Purchaser Designee hereunder.
4.3     Stockholder Approval. 
(a)    The Company shall take all action necessary under applicable law to call, give notice of, convene and hold a meeting of the stockholders of the Company for the purpose of obtaining Stockholder Approval (the “Special Meeting”). As soon as practicable after the date hereof but in no event no later than twenty (20) calendar days after the date hereof, the Company shall submit to the SEC a preliminary proxy statement with regard to the Special Meeting for the purpose of obtaining Stockholder Approval, with the recommendation of the Board that such proposal be approved, and the Company shall solicit proxies from its shareholders in connection therewith in the same manner as all other management proposals in such proxy statement and all management-appointed proxyholders shall vote their proxies in favor of such proposal. The Company shall use its reasonable best efforts to obtain such Shareholder Approval.
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(b)    Nothing contained in this Agreement shall prohibit the Company or the Board from (i) complying with Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act, or (ii) issuing a “stop, look and listen” communication or similar communication of the type contemplated by Section 14d-9(f) under the Exchange Act or (iii) otherwise making any disclosure to the Company stockholders; provided, however, that in the case of the foregoing clause (iii) the Board determines in good faith, after consultation with its outside legal counsel, that failure to make such disclosure would be inconsistent with its fiduciary duties under applicable law.
(c)    The Purchasers shall furnish any and all information as may be reasonably requested in connection with the preparation, filing and distribution the proxy statements with regard to the Special Meeting in a timely manner and any such information so furnished shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading. The Company shall promptly notify the Purchasers upon the receipt of any comments from the Commission or its staff or any request from the Commission or its staff for amendments or supplements to the proxy statements. Each of the Company and the Purchasers shall use reasonable best efforts to respond as promptly as practicable to any comments of the Commission with respect to the proxy statements.
4.4    Other Offers.
(a)    Notwithstanding anything contrary in this Agreement, if at any time prior to obtaining Stockholder Approval (and in no event after obtaining Stockholder Approval), (i) the Board receives a bona fide written acquisition proposal made after the date hereof that the Board determines in good faith, after consultation with its financial advisor and outside legal counsel, is or is reasonably likely to lead to a superior proposal (a “Superior Proposal”) and (ii) the Board determines in good faith, after consultation with its outside legal counsel, that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties under applicable law, then the Board, may, subject to compliance with this Agreement, (A) engage in negotiations or discussions with such third party and its representatives, (B) furnish to such third party or its representatives non-public information relating to the Company or any of its subsidiaries pursuant to a confidentiality agreement, a copy of which shall be provided, promptly after its execution, to the Purchasers for informational purposes; provided that the Company shall promptly provide to the Purchasers any such information that is provided to any such Person which was not previously provided to or made available to the Purchasers and (C) following receipt of a Superior Proposal after the date of this Agreement, (x) choose not to make, withdraw or modify a prior recommendation of the Board in a manner adverse to the Purchasers, (y) choose not to make or include a recommendation as specified in Section 4.3(a) in the proxy statements, or (C) recommend, adopt or approve or publicly propose to recommend, adopt or approve such Superior Proposal. 
(b)    Notwithstanding anything contrary in this Agreement, this Agreement may be terminated and the transactions contemplated hereby may be abandoned by the Company at any time prior to the Closing by the Company if the Board has determined to enter into a written agreement to accept a Superior Proposal.
4.5    Continued Payment. The Purchasers hereby agree that following the Closing, the Purchasers shall cause the Company to fulfill and continue to fulfill its obligations with respect to any separation, severance or other employment agreements or written arrangements existing as of and entered into by the Company prior to the Closing Date, including with respect to the payment of any severance, separation, or other similar obligations required thereunder. Other than as discussed with the Purchasers, upon execution of this Agreement and until the Closing Date, the Company agrees not to enter into any new separation, severance or other employment 
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agreements or written arrangements, or modify any existing separation, severance or other employment agreements or written arrangements, without prior written consent of the Purchaser(s) which consent shall not be unreasonably withheld. 
4.6    Further Transfers.  Without in any way limiting the provisions of Section 4.1, each Purchaser covenants that the Shares will only be sold, offered for sale, pledged, loaned, or otherwise disposed of pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance with any applicable state securities laws. In connection with any transfer of Shares other than pursuant to an effective registration statement or Rule 144, the Company may require such Purchaser to provide to the Company an opinion of counsel selected by such Purchaser, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act.
4.7    Indemnification. 
(a)    The Company agrees to indemnify and hold harmless the Purchasers, and their respective directors, officers, stockholders, members, partners, employees and agents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title), each person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, stockholders, agents, members, partners or employees (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title) of such controlling person (collectively, the “Purchaser Indemnitees”), from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced or threatened) based upon or arising out of the Company’s breach of any representation, warranty or covenant contained herein; provided, however, that the Company will not be liable in any such case to the extent and only to the extent that any such loss, liability, claim, damage, cost, fee or expense arises out of or is based upon the inaccuracy of any representations made by such indemnified party in this Agreement, or the failure of such indemnified party to comply with the covenants and agreements contained herein. 
(b)    Promptly after receipt by an indemnified party under this Section 4.5 of notice of the commencement of any indemnifiable action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 4.5, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party otherwise than under this Section 4.5 except to the extent the indemnified party is actually prejudiced by such omission. In case any such indemnifiable action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein, and to the extent that it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, however, if the defendants in any such indemnifiable action include both the indemnified party and the indemnifying party and either (i) the indemnifying party or parties and the indemnified party or parties mutually agree or (ii) representation of both the indemnifying party or parties and the indemnified party or parties by the same counsel is inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such indemnifiable action on behalf of such indemnified party or parties. Upon receipt of notice 
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from the indemnifying party to such indemnified party of its election so to assume the defense of such indemnifiable action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 4.5 for any reasonable legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed counsel in connection with the assumption of legal defenses in accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel in such circumstance), (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the indemnifiable action or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying party. No indemnifying party shall (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened indemnifiable action in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such indemnifiable action) unless such settlement, compromise or consent requires only the payment of money damages, does not subject the indemnified party to any continuing obligation or require any admission of criminal or civil responsibility, and includes an unconditional release of each indemnified party from all liability arising out of such indemnifiable action, or (ii) be liable for any settlement of any such indemnifiable action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment of the plaintiff in any such indemnifiable action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment.
(c)    Each Purchaser acknowledges on behalf of itself and each Purchaser Indemnitee that, other than for actions seeking specific performance of the obligations under this Agreement or in the case of fraud, the sole and exclusive remedy of such Purchaser and such Purchaser Indemnitee with respect to any and all claims relating to this Agreement shall be pursuant to the indemnification provisions set forth in this Section 4.5.
4.8    Director and Officer Liability. Following the Closing, the Purchasers shall agree the Company, and the Company hereby agrees, to do the following:
(a)    For six years after the Closing, the Company shall indemnify and hold harmless the present and former directors, officers, employees, of the Company and its subsidiaries (in each case, when acting in such capacity) (each, an “Indemnified Person”) from and against any losses, damages, liabilities, costs, expenses (including attorneys’ fees), judgments, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of any thereof) in respect of the Indemnified Persons’ having served in such capacity prior to the Closing, in each case to the fullest extent provided under the Company’s certificate of incorporation and bylaws in effect on the date hereof or any indemnification agreements in effect on the date hereof. If any Indemnified Person is made party to any claim, action, suit, proceeding or investigation arising out of or relating to matters that would be indemnifiable pursuant to the immediately preceding sentence, the Company shall advance fees, costs and expenses (including attorneys’ fees and disbursements) as incurred by such Indemnified Person in connection with and prior to the final disposition of such claim, action, suit, proceeding or investigation; provided, that, such Indemnified Person to whom expenses are advanced undertakes to repay such advances if it is ultimately determined by final non-appealable order that such Indemnified Person is not entitled to indemnification.
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(b)    For six years after the Closing, the Company shall maintain in effect provisions in the Company’s certificate of incorporation and bylaws (or in such documents of any successor to the business of the Company) regarding elimination of liability of directors, indemnification of officers, directors, employees, fiduciaries and agents and advancement of fees, costs and expenses that are no less advantageous to the intended beneficiaries than the corresponding provisions in existence on the date of this Agreement.
(c)    Prior to the Closing, the Company shall obtain and fully pay the premium for the non-cancellable extension of the directors’ and officers’ liability coverage of the Company’s existing directors’ and officers’ insurance policies (collectively, “D&O Insurance”), which D&O Insurance shall (i) be for a claims reporting or discovery period of at least six years from and after the Closing with respect to any claim related to any period of time at or prior to the Closing, (ii) be from an insurance carrier with a substantially comparable credit rating as the Company’s current insurance carrier with respect to D&O Insurance and (iii) have terms, conditions, retentions and limits of liability that are no less favorable than the coverage provided under the Company’s existing policies with respect to any actual or alleged error, misstatement, misleading statement, act, omission, neglect, breach of duty or any matter claimed against an Indemnified Person by reason of his or her having served in such capacity that existed or occurred at or prior to the Closing (including in connection with this Agreement or the transactions or actions contemplated hereby). If the Company for any reason fails to obtain such “tail” insurance policies as of the Closing, the Company shall continue to maintain in effect, for a period of at least six years from and after the Closing, the D&O Insurance in place as of the date hereof with the Company’s current insurance carrier or with an insurance carrier with a substantially comparable credit rating as the Company’s current insurance carrier with respect to D&O Insurance with terms, conditions, retentions and limits of liability that are no less favorable than the coverage provided under the Company’s existing policies as of the date hereof. Notwithstanding the foregoing, in no event shall the Company be required to expend for the D&O Insurance or for any other policies pursuant to this Section 4.7 an annual premium amount in excess of 350% of the premium amount per annum for the Company’s existing policies; and provided, further, that if the aggregate premiums of such insurance coverage exceed such amount, the Company shall be obligated to obtain a policy with the greatest coverage available, with respect to matters occurring prior to the Closing, for a cost not exceeding such amount.
(d)    If the Company (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and assigns of the Company, as the case may be, shall assume the obligations set forth in this Section 4.7.
(e)    The rights of each Indemnified Person under this Section 4.7 shall be in addition to any rights such person may have under the certificate of incorporation or bylaws of the Company or any of its subsidiaries, under Delaware law or any other applicable law or under any agreement of any Indemnified Person with the Company or any of its subsidiaries. These rights shall survive consummation of the transactions contemplated hereby and are intended to benefit, and shall be enforceable by, each Indemnified Person.
ARTICLE V
CONDITIONS TO CLOSING
5.1    Conditions Precedent to the Obligations of Purchasers. The obligation of the Purchasers to acquire the Shares at the Closing is subject to the satisfaction or waiver by the Purchasers, at or before the Closing, of each of the following conditions:
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(a)    Representations and Warranties. The representations and warranties of the Company contained in Article II shall be true and correct in all respects as of the date of this Agreement and as of the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the representations and warranties made by the Company in Article II hereof not qualified as to materiality shall be true and correct in all material respects as of the date hereof and the Closing Date, except to the extent any such representation or warranty expressly speaks as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such earlier date.
(b)    Performance. The Company shall have performed and complied, in all material respects, with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company on or before the Closing, including, without limitation, the delivery by the Company of the items contemplated by Section 1.4(a).
(c)    No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.
(d)    No Nasdaq Objection. Nasdaq shall have raised no objection to the consummation of the transactions contemplated by the Transaction Documents (other than confirmation of receipt of Stockholder Approval).
(e)    Listing of Additional Shares. The Company shall have submitted a Listing of Additional Shares Notification with the Nasdaq covering all of the Shares.
(f)    Registration Rights Agreement.  The Company shall have executed and delivered the Registration Rights Agreement, and the Registration Rights Agreement shall be in full force and effect.
(g)    Stockholder Approval. The Stockholder Approval shall have been duly obtained.
5.2    Conditions Precedent to the Obligations of the Company. The obligation of the Company to issue the Shares at the Closing is subject to the satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions:
(a)    Representations and Warranties. The representations and warranties of the Purchasers contained in Article III shall be true and correct in all respects as of the Closing (unless as of a specific date therein in which case they shall be accurate as of such date).
(b)    Performance. Each Purchaser shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the Closing, including, without limitation, the delivery by such Purchaser of the items contemplated by Section 1.4(a)(ii).
(c)    No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction (other than Stockholder Approval) shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.
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(d)    Stockholder Approval.  The Stockholder Approval shall have been duly obtained.
(e)    No Nasdaq Objection. Nasdaq shall have raised no objection to the consummation of the transactions contemplated by the Transaction Documents (other than confirmation of receipt of Stockholder Approval).
(f)    Registration Rights Agreement.  Each Purchaser shall have executed and delivered the Registration Rights Agreement, and the Registration Rights Agreement shall be in full force and effect.
ARTICLE VI
MISCELLANEOUS
6.1    Survival of Warranties.  Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the Purchasers contained in or made pursuant to this Agreement shall survive the Closing and the delivery of the Shares.
6.2    Exchange Act Filing.  The Company shall, by 9:00 am Boston time, on the first (1st) Trading Day immediately following the date of the Closing, issue one or more press releases or file with the Commission a Current Report on Form 8-K (the “Disclosure Document”) disclosing, to the extent not previously publicly disclosed, all material terms of the transactions contemplated hereby and any other material non-public information that the Company provided to the Purchasers at any time prior to the filing of the Disclosure Document. Upon the issuance of the Disclosure Document, to the Company’s knowledge, the Purchasers shall not be in possession of any material, non-public information received from the Company or any of its officers, directors, employees or agents, and the Purchasers shall no longer be subject to any confidentiality or similar obligations under any current agreement, whether written or oral, with the Company or any of its agents or affiliates in connection with the transactions contemplated by this Agreement. Notwithstanding anything in this Agreement to the contrary, the Company (i) shall not publicly disclose the name of the Purchasers or any of its affiliates or advisers, or include the name of the Purchasers or any of their affiliates or advisers in any press release, without the prior written consent of such Purchaser and (ii) shall not publicly disclose the name of such Purchaser or any of its affiliates or advisers, or include the name of such Purchaser or any of its affiliates or advisers in any filing with the Commission or any regulatory agency or trading market, without the prior written consent of such Purchaser, except (A) as required by the federal securities laws, rules or regulations and (B) to the extent such disclosure is required by other laws, rules or regulations, at the request of the staff of the Commission or regulatory agency or under the regulations of Nasdaq.
6.3    No Finder’s Fees.  The Company agrees to indemnify and to hold harmless the Purchasers from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.  Each Purchaser, severally and not jointly, agrees to indemnify and hold harmless the Company from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which such Purchaser or any of its officers, employees or representatives is responsible.
6.4    Fees and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.
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6.5    Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules; provided, however, that any confidentiality agreements previously entered into between the Company and the Purchasers shall remain in full force and effect. At or after the Closing, and without further consideration, the Company will execute and deliver to the Purchasers, and the Purchasers will execute and deliver to the Company, such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.
6.6    Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address specified in this Section prior to 4:00 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email at the facsimile number or email address specified in this Section on a day that is not a Trading Day or later than 4:00 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers and email addresses for such notices and communications are those set forth below, or such other address or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person:
						
	If to the Company:	Exicure, Inc.
		2430 N. Halsted St.
		Chicago, IL 60614
		Attention: Chief Executive Officer
		Email: mschroff@exicuretx.com
		
	with copies (which copies	Cooley LLP
	shall not constitute notice	500 Boylston Street
	to the Company) to:	Boston, MA 02116
		Attention: Marc Recht
		Email: mrecht@cooley.com

		
		
	If to the Purchasers:	To their respective addresses as set forth on Schedule 1 hereto.

6.7    Amendments; Waivers. This Agreement and any term hereof may be amended, terminated or waived only with the written consent of the Company and the Purchasers. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.
6.8    Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 
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The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
6.9    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser; provided, however, that no such consent shall be required in connection with any assignment (i) occurring by operation of law in connection with any merger or consolidation to which the Company is a party, (ii) in connection with the acquisition of all or substantially all of the assets of the Company or (iii) any other similar business combination transaction involving the Company. A Purchaser may assign its rights under this Agreement only to a Person to whom such Purchaser assigns or transfers all Shares held by such Purchaser; provided, that (i) following such transfer or assignment, the further disposition of the Shares by the transferee or assignee is restricted under the Securities Act and applicable state securities laws, (ii) as a condition of such transfer, such transferee agrees in writing to be bound by all of the terms and conditions of this Agreement as a party hereto and (iii) such transfer shall have been made in accordance with the applicable requirements of this Agreement and with all laws applicable thereto.
6.10    Persons Entitled to Benefit of Agreement. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.
6.11    Governing Law; Jurisdiction.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware without regard to the choice of law principles thereof.  Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the Delaware Chancery Court (or, if the Delaware Chancery Court shall be unavailable, then any federal court of the United States of America sitting in the State of Delaware) for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. If any party hereto shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, the prevailing party in such action or proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
6.12    Counterparts; Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
6.13    Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted by law, (a) all other provisions hereof shall remain in full force and effect and shall be liberally construed in order to carry out the intentions of the parties as nearly as may be possible and (b) the parties shall use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal and 
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enforceable provision(s) which, insofar as practical, implement the purposes of such provision(s) in this Agreement.
6.14    Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in any Transaction Document to a number of shares or a price per share shall be deemed to be amended to appropriately account for such event.
[SIGNATURE PAGES TO FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
COMPANY:

EXICURE, INC.

By: /s/ Matthias Schroff    
      Matthias Schroff, Ph.D.
      Chief Executive Officer

    [Signature Page to Securities Purchase Agreement]
			
	271063633 v6

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.
PURCHASERS:

CBI USA, Inc.

By:    /s/ Kyungwon Oh    

Name: Kyungwon Oh    
    (print)

Title:    Chief Executive Officer    

[Signature Page to Securities Purchase Agreement] 
			
	271063633 v6

SCHEDULE 1
SCHEDULE OF PURCHASERS

									
	Name of Purchaser and
Address/Contact
Information
	Number of Shares Purchased	Aggregate Purchase Price
	CBI USA, Inc. 
3000 Western Ave, Suite 400
Seattle, WA 98121

Telephone No.: 425-220-2542
Facsimile No.: 425-212-9109
E-mail Address:
Attention:
	3,400,000	$5,440,000
			
			

 

			
	271063633 v6

Exhibit A
STOCK REGISTRATION QUESTIONNAIRE
Pursuant to Section 1.4 of the Agreement, please provide us with the following information:
									
	

	The exact name that the Shares are to be registered in (this is the name that will appear on the common stock certificate(s) or Direct Registration System advice(s)):	

	

	The relationship between the Purchaser of the Shares and the Registered Purchaser listed in response to Item 1 above:	

	

	The mailing address, telephone and telecopy number of the Registered Purchaser listed in response to Item 1 above:	

	

	

	

	

	

	

	

	

	

	

	

	

	

	The Tax Identification Number (or, if an individual, the Social Security Number) of the Registered Purchaser listed in response to Item 1 above:	

	C
	AST Account Number of the Registered Purchaser listed in response to Item 1 above (indicate none if such Registered Purchaser does not yet have one):	

	

	Form of delivery of Shares:	Stock certificate(s):  
Electronic book-entry in the Direct Registration System:  

			
	271063633 v6

Exhibit B
ACCREDITED INVESTOR QUALIFICATION QUESTIONNAIRE
[See Attached]
			
	271063633 v6

Exhibit C
“BAD ACTOR” QUESTIONNAIRE FORMS
[See Attached]
			
	271063633 v6

Exhibit D
REGISTRATION RIGHTS AGREEMENT
[See Attached]

			
	271063633 v6

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