Document:

Exhibit 10.49

 

EXECUTION COPY

 

ASSET PURCHASE AGREEMENT

 

by and among

 

NUTRICAP LABS, LLC,

 

VITACAP LABS, LLC,

 

CANYON MARKETING V, LLC,

 

CANYON MARKETING II, INC.,

 

CANYON MARKETING III, LLC

 

and

 

TCC
CM Subco I, Inc.

 

dated as of

 

February 4, 2015

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	ARTICLE I DEFINITIONS	1
	 	 
	ARTICLE II PURCHASE AND SALE	9
	 	 	 
	Section 2.01	Purchase and Sale of Assets	9
	 	 	 
	Section 2.02	Excluded Assets	10
	 	 	 
	Section 2.03	Assumed Liabilities	11
	 	 	 
	Section 2.04	Excluded Liabilities	11
	 	 	 
	Section 2.05	Purchase Price	13
	 	 	 
	Section 2.06	Customer Deposits	13
	 	 	 
	Section 2.07	Allocation of Purchase Price	14
	 	 	 
	Section 2.08	Third Party Consents	14
	 	 	 
	ARTICLE III CLOSING	14
	 	 	 
	Section 3.01	Closing	14
	 	 	 
	Section 3.02	Closing Deliverables	15
	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS AND MEMBERS	16
	 	 	 
	Section 4.01	Organization and Qualification of Seller	16
	 	 	 
	Section 4.02	Authority	16
	 	 	 
	Section 4.03	No Conflicts; Consents	17
	 	 	 
	Section 4.04	Financial Statements	17
	 	 	 
	Section 4.05	Undisclosed Liabilities	18
	 	 	 
	Section 4.06	Absence of Certain Changes	18
	 	 	 
	Section 4.07	Material Contracts	19
	 	 	 
	Section 4.08	Title to Purchased Assets and Licensed Intellectual Property	21
	 	 	 
	Section 4.09	[Intentionally Omitted	22
	 	 	 
	Section 4.10	[Intentionally Omitted	22
	 	 	 
	Section 4.11	Intellectual Property	22
	 	 	 
	Section 4.12	Inventory	23
	 	 	 
	Section 4.13	[Intentionally Omitted	23
	 	 	 
	Section 4.14	Customers and Suppliers; Orders	23
	 	 	 
	Section 4.15	Insurance	24

 

    	i

    	 

    

 

	Section 4.16	Legal Proceedings; Governmental Orders	24
	 	 	 
	Section 4.17	Compliance with Laws	24
	 	 	 
	Section 4.18	Environmental Matters	25
	 	 	 
	Section 4.19	Employee Benefit Matters	26
	 	 	 
	Section 4.20	Employment Matters	28
	 	 	 
	Section 4.21	Taxes	29
	 	 	 
	Section 4.22	Permits	30
	 	 	 
	Section 4.23	Brokers	30
	 	 	 
	Section 4.24	Product Warranty	30
	 	 	 
	Section 4.25	Products Liability	31
	 	 	 
	Section 4.26	Affiliate Interests	31
	 	 	 
	Section 4.27	No Other Representations or Warranties	31
	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF BUYER	32
	 	 	 
	Section 5.01	Organization of Buyer	32
	 	 	 
	Section 5.02	Authority of Buyer	32
	 	 	 
	Section 5.03	No Conflicts; Consents	32
	 	 	 
	Section 5.04	Brokers	33
	 	 	 
	Section 5.05	Legal Proceedings	33
	 	 	 
	Section 5.06	Independent Review	33
	 	 	 
	ARTICLE VI COVENANTS	34
	 	 	 
	Section 6.01	Conduct of Business Prior to the Closing	34
	 	 	 
	Section 6.02	Access to Information	35
	 	 	 
	Section 6.03	No Solicitation of Other Bids	35
	 	 	 
	Section 6.04	Notice of Certain Events; Supplemental Disclosure	36
	 	 	 
	Section 6.05	Employees and Employee Benefits	37
	 	 	 
	Section 6.06	Confidentiality	39
	 	 	 
	Section 6.07	Non-competition; Non-solicitation	39
	 	 	 
	Section 6.08	Governmental Approvals and Consents	41
	 	 	 
	Section 6.09	Books and Records	42
	 	 	 
	Section 6.10	Public Announcements	42
	 	 	 
	Section 6.11	Bulk Sales Laws	43
	 	 	 
	Section 6.12	Receivables	43
	 	 	 
	Section 6.13	Transfer Taxes	44

 

    	ii

    	 

    

 

	Section 6.14	Transition of Customers; Novation Contracts	44
	 	 	 
	Section 6.15	Change of Names	44
	 	 	 
	Section 6.16	Public Filings	45
	 	 	 
	Section 6.17	Deposit of Escrow Amount	45
	 	 	 
	Section 6.18	Financing Covenants	45
	 	 	 
	Section 6.19	Further Assurances	46
	 	 	 
	ARTICLE VII CONDITIONS TO CLOSING	46
	 	 	 
	Section 7.01	Conditions to Obligations of All Parties	46
	 	 	 
	Section 7.02	Conditions to Obligations of Buyer	47
	 	 	 
	Section 7.03	Conditions to Obligations of Sellers	48
	 	 	 
	ARTICLE VIII INDEMNIFICATION	49
	 	 	 
	Section 8.01	Survival	49
	 	 	 
	Section 8.02	Indemnification By Sellers and Members	50
	 	 	 
	Section 8.03	Indemnification By Buyer	50
	 	 	 
	Section 8.04	Certain Limitations	51
	 	 	 
	Section 8.05	Indemnification Procedures	53
	 	 	 
	Section 8.06	Payments	55
	 	 	 
	Section 8.07	Valuation of Buyer Stock	56
	 	 	 
	Section 8.08	Tax Treatment of Indemnification Payments	56
	 	 	 
	Section 8.09	Effect of Investigation	56
	 	 	 
	Section 8.10	Exclusive Remedies	56
	 	 	 
	ARTICLE IX TERMINATION	56
	 	 	 
	Section 9.01	Termination	56
	 	 	 
	Section 9.02	Effect of Termination	57
	 	 	 
	ARTICLE X MISCELLANEOUS	57
	 	 	 
	Section 10.01	Expenses	57
	 	 	 
	Section 10.02	Notices	58
	 	 	 
	Section 10.03	Interpretation	59
	 	 	 
	Section 10.04	Headings	59
	 	 	 
	Section 10.05	Severability	59
	 	 	 
	Section 10.06	Entire Agreement	59
	 	 	 
	Section 10.07	Successors and Assigns	59
	 	 	 
	Section 10.08	No Third-party Beneficiaries	60

 

    	iii

    	 

    

 

	Section 10.09	Amendment and Modification; Waiver	60
	 	 	 
	Section 10.10	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	60
	 	 	 
	Section 10.11	Specific Performance	61
	 	 	 
	Section 10.12	Counterparts	61
	 	 	 
	Section 10.13	Effectiveness	61

 

    	iv

    	 

    

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement
(this “Agreement”), dated as of February 4, 2015 and effective as of the Option Exercise Date (as defined herein),
is entered into by and among NUTRICAP LABS, LLC, a New York limited liability company (“Nutricap”), VITACAP
LABS, LLC, a New York limited liability company (“Vitacap” and with Nutricap, each being a “Seller”
and together, the “Sellers”), CANYON MARKETING V, LLC, a Delaware limited liability company (“Canyon
V”), CANYON MARKETING II, INC., a New York corporation, (“Canyon II”), CANYON MARKETING III, LLC,
a Delaware limited liability company (“Canyon III”, and together with Canyon II and Canyon V, the “Members”)
and TCC CM SUBCO I, INC., a Delaware corporation (“Buyer”).

 

RECITALS

 

WHEREAS, Sellers
are engaged in the business of providing contract manufacturing services for health and wellness companies engaged in selling vitamins,
minerals, and dietary supplements products, including custom formulas and private label products, and related label design, packaging
and order fulfillment services for Customers of such contract manufacturing services (collectively, the “Business”);

 

WHEREAS, (a)
Canyon V is the sole member of Nutricap and (b) Canyon II and Canyon III are the sole members of Vitacap, and in each case, such
Members will derive substantial benefits, financial and otherwise, from the transactions contemplated by this Agreement;

 

WHEREAS, Sellers,
Members and Buyer have entered into an Amended and Restated Call Option Agreement, dated as of December 20, 2014 (as amended from
time to time, the “Call Option Agreement”) pursuant to which Buyer has an option (the “Call Option”)
to purchase the Purchased Assets (as defined herein) in accordance with the terms set forth in this Agreement and the Call Option
Agreement; and

 

WHEREAS, subject
to Buyer’s exercise of the Call Option, Sellers wish to sell and assign to Buyer, and Buyer wishes to purchase from Sellers,
the Purchased Assets, free and clear of any liabilities of Sellers, subject to the terms and conditions set forth herein.

 

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

 

ARTICLE I

Definitions

 

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

 

    	 

    	 

    

 

“Action” means
any claim, charge, action, hearing, cause of action, demand, lawsuit, arbitration, complaint, audit, notice of violation, proceeding,
litigation, citation, summons, subpoena, or investigation, whether at law or in equity, or otherwise, in each case, by or before
any Governmental Authority.

 

“Affiliate” of
a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. For purposes
of this Agreement, none of the Members, Sellers nor Jonathan Greenhut shall be deemed an Affiliate of New Vitality Transaction
Holdings, Inc. (or any successor thereof).

 

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

 

“Buyer Stock”
means the common stock, par value $.0001 per share, of Buyer.

 

“Buyer’s
Accountants” means Tanner LLP.

 

“CERCLA” means
the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization
Act of 1986, 42 U.S.C. §§ 9601 et seq.

 

“Code” means
the Internal Revenue Code of 1986, as amended.

 

“Contracts” means
all contracts, leases, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures and other
agreements and commitments, in each case to the extent constituting legally binding arrangements, whether written or oral.

 

“Customers”
means any Person that (i) has purchased products from any of Sellers during the three year period preceding the Closing Date and
(ii) seeks to purchase products from, or enter into any arrangement or agreement for the provision of dietary supplement contract
manufacturing services by, any of the Sellers at any time during the Transition Period.

 

“Disclosure Schedules” means
the Disclosure Schedules delivered by Sellers pursuant to this Agreement.

 

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

 

“Encumbrance” means
any charge, claim, pledge, equitable interest, lien (statutory or other), option, security interest, mortgage, or other similar
encumbrance.

 

    	2

    	 

    

 

“Environmental
Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment
arising therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for
the costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources
damages, property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief)
arising out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any non-compliance
with any Environmental Law or term or condition of any Environmental Permit.

 

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority:
(a) relating to pollution (or the cleanup thereof) or the protection of human health or safety, or the environment (including ambient
air, soil, surface water or groundwater, or subsurface strata); or (b) concerning the presence of, exposure to, or the management,
manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing,
production, disposal or remediation of any Hazardous Materials. The term “Environmental Law” includes the following
(including their implementing regulations and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid
Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste
Amendments of 1984, 42 U.S.C. §§ 6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean
Water Act of 1977, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§
2601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air
Act of 1966, as amended by the Clean Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety
and Health Act of 1970, as amended, 29 U.S.C. §§ 651 et seq.

 

“Environmental
Notice” means any written directive, written notice of violation or infraction, or other written notice respecting
any Environmental Claim relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any
Environmental Permit.

 

“Environmental
Permit” means any Permit, letter, clearance, consent, waiver or exemption required or issued under or authorized
by any Environmental Law.

 

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

 

“ERISA Affiliate” means,
with respect to any Person, any other Person that, together with such first Person, would be treated as a single employer within
the meaning of Section 414(b), (c), (m) or (o) of the Code.

 

“Escrow Agent” means
the entity designated to serve as escrow agent under the Escrow Agreement.

 

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“Escrow Agreement” means
the Escrow Agreement among Buyer, Sellers, Members, HH and the Escrow Agent, to be executed and delivered at the Closing in the
form of Exhibit A hereto.

 

“Escrow Amount”
means the sum of Nine Hundred Thousand Dollars ($900,000.00) to be deposited with the Escrow Agent and held in escrow pursuant
to the Escrow Agreement.

 

“GAAP” means
United States generally accepted accounting principles in effect from time to time.

 

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

 

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

 

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

 

“HH”
means 2014 Huntington Holdings, LLC, a Delaware limited liability company.

 

“Initial Disclosure
Date” means September 13, 2014.

 

“Intellectual
Property Rights” means all worldwide intellectual property rights, and the goodwill associated therewith, including,
without limitation, patents, trademarks, service marks, logos, copyrights, and registrations and applications therefor, trade names,
Internet domain names, telephone numbers, web addresses, websites (and the contents thereof), accounts with Twitter, Facebook and
other social media companies and the content found thereunder and related thereto (in each case, excluding the social media accounts
owned by Jonathan Greenhut), product specifications, formulas, formularies, know-how, trade secrets, computer software, and awards,
in each case, which is owned or licensed by a Seller, and all rights to any Actions of any nature available to or being pursued
by a Seller to the extent related to the foregoing whether accruing before, on or after the date hereof.

 

    	4

    	 

    

 

“Knowledge of
Buyer” or “Buyer’s Knowledge” or any other similar knowledge qualification, means the actual
knowledge of Richard H. Neuwirth, F. Peter Brechter, and Mark Jaggi.

 

“Knowledge of
Sellers” or “Sellers’ Knowledge” or any other
similar knowledge qualification, means the actual knowledge of Jonathan Greenhut, Michael Scagluso and Vincent Tricarico.

 

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

 

“Liabilities” means
liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent,
accrued or unaccrued, matured or unmatured or otherwise.

 

“License Agreement” means
the license agreement between Nutricap and TCC CM Subco II, Inc., to be executed and delivered at the Closing in the form of Exhibit
F hereto.

 

“Licensed Intellectual
Property” means the Sellers’ Intellectual Property Assets licensed to the Buyer pursuant to the License Agreement.

 

“Losses” means
losses, damages, liabilities, deficiencies, judgments, interest, awards, penalties, fines, Taxes, fees, charges, assessments, costs
or expenses of whatever kind, including (a)(i) reasonable attorneys’ fees and expenses (including expenses of investigation,
court costs, and reasonable fees and expenses of accountants and other experts), and (ii) the cost of enforcing any right to indemnification
hereunder, in each case, subject to Section 8.04(f) but excluding (b)(i) lost profits and other consequential damages,
and (ii) special, indirect, exemplary and punitive damages.

 

“Material Adverse
Effect” means any event, occurrence, fact, condition or change that is, or would reasonably be expected to become,
individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise)
or the ownership and use of the Purchased Assets, or (b) the ability of Sellers to consummate the transactions contemplated hereby
on a timely basis; provided, however, that “Material Adverse Effect” shall not include the effect of any event,
occurrence, fact, condition or change resulting from or relating to: (i) applicable economic or market conditions, including as
related to the industry in which the Business operates, (ii) the announcement of the transactions contemplated by this Agreement,
(iii) (A) the execution of, compliance with the terms of, or the taking of any action required by this Agreement or (B) the consummation
of the transactions contemplated by this Agreement, (iv) any change in GAAP or any change in applicable Laws or the interpretation
thereof, (v) changes in national or international political or social conditions, including the engagement by the United States
in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or
terrorist attack, (vi) general financial or capital market conditions, including interest rates or market prices, or changes therein,
or (vii) the failure of the Business to meet its internal projections for a period ending on or after the date of this Agreement
(it being understood the underlying causes of such failure may be considered in determining whether a Material Adverse Effect has
occurred).

 

    	5

    	 

    

 

“Option Exercise
Date” means the Call Exercise Date (as defined in the Call Option Agreement).

 

“Permits” means
all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained,
or required to be obtained, from Governmental Authorities.

 

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

 

“Post-Closing
Tax Period” means any taxable period beginning after the Closing Date and, with respect to any taxable period beginning
before and ending after the Closing Date, the portion of such taxable period beginning after the Closing Date.

 

“Pre-Closing Tax
Period” means any taxable period ending on or before the Closing Date and, with respect to any taxable period beginning
before and ending after the Closing Date, the portion of such taxable period ending on and including the Closing Date.

 

“Release” means
any actual release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping,
abandonment, disposing or allowing to escape or migrate into or through the environment (including ambient air (indoor or outdoor),
surface water, groundwater, land surface or subsurface strata or within any building, structure, facility or fixture).

 

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

 

“Securities Purchase
Agreement” means the Securities Purchase Agreement dated as of August 1, 2014, by and between Buyer and HH.

 

“Sellers’
Accountants” means Shapiro, Goldstein Moses & Arturo, LLP.

 

“Senior Debt”
means all indebtedness under that certain Loan and Security Agreement, dated as of October 23, 2012, between Nutricap and TD Bank,
N.A.

 

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

 

    	6

    	 

    

 

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

 

“Territory” means
North America.

 

“Transaction Documents” means
this Agreement, the Call Option Agreement, the Transition Services Agreement, the Bill of Sale, the Assignment and Assumption Agreement,
the License Agreement, the First Promissory Note, the Second Promissory Note and the other agreements, instruments and documents
required to be delivered at the Closing.

 

“VitaCap” means
VitaCap Labs, LLC, a New York limited liability company.

 

“WARN Act” means
the federal Worker Adjustment and Retraining Notification Act of 1988, and similar state, local and foreign laws related to plant
closings, relocations, mass layoffs and employment losses.

 

The following terms are
defined in the following Sections of, or other locations in, this Agreement:

 

	Term	 	Section/Location
	Accounts Receivable	 	Section 2.02(a)
	Acquisition Proposal	 	Section 6.03(a)
	Additional Financing	 	Section 6.18(a)
	Agreement	 	Preamble
	Assigned Books & Records	 	Section 2.02(c)
	Assigned Contracts	 	Section 2.02(b)
	Assigned IP	 	Section 2.02(d)
	Assignment and Assumption Agreement	 	Section 3.02(a)(iii)
	Assumed Liabilities	 	Section 2.03
	Audited Financial Statements	 	Section 4.04
	Balance Sheet	 	Section 4.04
	Balance Sheet Date	 	Section 4.04
	Basket	 	Section 8.04(a)
	Benefit Plan	 	Section 4.19
	Bill of Sale	 	Section 3.02(a)
	Business	 	Recitals
	Buyer	 	Preamble
	Buyer Closing Certificate	 	Section 7.03(g)
	Buyer Indemnitees	 	Section 8.02

 

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	Buyer’s Secretary Certificate	 	Section 7.03(i)
	Call Option	 	Recitals
	Call Option Agreement	 	Recitals
	Cap	 	Section 8.04(c)
	Cash Consideration	 	Section 2.05(a)
	Closing	 	Section 3.01
	Closing Date	 	Section 3.01
	Complete Representation	 	Section 7.02(a)
	Customer Labels	 	Section 2.01(c)
	Direct Claim	 	Section 8.05(c)
	Excluded Assets	 	Section 2.02
	Excluded Books and Records	 	Section 2.02(j)
	Excluded Contracts	 	Section 2.02(m)
	Excluded Liabilities	 	Section 2.04
	FIRPTA Certificate	 	Section 7.02(j)
	First Promissory Note	 	Section 3.02(b)(vi)
	Incomplete Representation	 	Section 7.02(a)
	Indemnified Party	 	Section 8.05
	Indemnifying Party	 	Section 8.05
	Insurance Policies	 	Section 4.15
	Interim Balance Sheet	 	Section 4.04
	Interim Balance Sheet Date	 	Section 4.04
	Interim Financial Statements	 	Section 6.04(d)
	Inventory	 	Section 2.02(c)
	Material Contracts	 	Section 4.07(a)
	Material Customers	 	Section 4.14(a)
	Material Suppliers	 	Section 4.14(b)
	Members	 	Preamble
	Multiemployer Plan	 	Section 4.19(c)
	Non-Compete Period	 	Section 6.07
	Non-Novation Event	 	Section 6.14(a)
	Non-Solicitation Period	 	Section 6.07
	Non-Transferable Deposit	 	Section 2.06
	Novation Contract	 	Section 6.14(a)
	Permitted Encumbrances	 	Section 4.08
	Prohibited Names	 	Section 6.14
	Purchase Price	 	Section 2.05(a)
	Purchase Price Allocation	 	Section 2.07
	Purchased Assets	 	Section 2.01
	Qualified Benefit Plan	 	Section 4.19(c)
	Second Promissory Note	 	Section 3.02(b)(vii)

 

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	Seller	 	Preamble
	Seller Benefit Plan	 	Section 4.19(a)
	Sellers’ Closing Certificate	 	Section 6.20(a)
	Seller Indemnitees	 	Section 8.03
	Senior Debt Repayment	 	Section 2.05(b)
	Tangible Personal Property	 	Section 2.02(e)
	Transferred Employees	 	Section 6.05(a)
	Transition Failure Event	 	Section 6.05(g)
	Transition Services Agreement	 	Section 3.02(a)(i)
	Third Party Claim	 	Section 8.05(b)
	Union	 	Section 4.20(b)

 

ARTICLE II

Purchase
and Sale

 

Section 2.01         Purchase
and Sale of Assets. Subject to the exercise by Buyer of the Call Option, and subject to the terms and conditions set forth
herein, at the Closing, Sellers shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Sellers,
free and clear of any Encumbrances all of Sellers’ right, title and interest in, to and under all of Sellers’ assets,
properties and rights specified below, whether real, personal or mixed, tangible or intangible, and whether owned, leased, licensed
or otherwise held by Sellers, wherever located, and expressly excluding the Excluded Assets (collectively, the “Purchased
Assets”):

 

(a)          all
Customer relationships (including all goodwill related specifically to such Customer relationships);

 

(b)          (i)
the right to enter into Novation Contracts (as defined in Section 6.14(a)) in accordance with Section 6.14(a) and (ii) all
formulas or similar manufacturing specifications relating to products and services provided to Customers, to the extent Sellers
own or have a right to acquire such formulas or specifications;

 

(c)          all
labels for goods supplied to Customers that have not yet been affixed to finished goods and that do not reference any Seller on
the label, whether directly or by UPC code (“Customer Labels”), but in all cases subject to the receipt of consent
to the transfer of such Customer Labels pursuant hereto from Customers who own a right to such Customer Labels;

 

(d)          originals,
or where not available, copies, of all books of account, ledgers, Customer lists, Customer purchasing histories, price lists, distribution
lists, supplier lists, Customer sales material and records (including pricing history, total sales, terms and conditions of sale,
sales and pricing policies and practices), as the same may be necessary to enable Buyer to perform contract manufacturing services
for the acquired Customers after the Closing Date, including without limitation pursuant to any Novation Contract, and as have
been identified as such by Buyer, but excluding in all events the Excluded Books and Records (“Assigned Books and Records”);
and

 

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Section 2.02         Excluded
Assets. Notwithstanding the foregoing, the Purchased Assets shall not include any asset of Sellers that is not specifically
identified as a Purchased Asset under Section 2.01, including, without limitation, the following assets (collectively,
the “Excluded Assets”):

 

(a)          all
accounts or notes receivable held by Sellers and the proceeds thereof, and any security, claim, remedy or other right related to
any of the foregoing (“Accounts Receivable”);

 

(b)          all
Contracts, including Contracts relating to Intellectual Property Rights (the “Excluded Contracts”);

 

(c)          all
inventory (finished goods, raw materials, work in progress, packaging, supplies, parts and other inventories, including items held
by Sellers on behalf of Customers, such as warehoused products, excluding Customer Labels) (“Inventory”);

 

(d)          subject
to the terms of the License Agreement, all Intellectual Property Assets;

 

(e)          all
furniture, fixtures, equipment, machinery, tools, vehicles, office equipment, supplies, computers, telephones and other tangible
personal property (the “Tangible Personal Property”);

 

(f)          all
Permits, including Environmental Permits (if any), which are held by Sellers and required for the conduct of the Business as currently
conducted or for the ownership and use of the Purchased Assets, including those listed in Section 4.18(b) and Section 4.22
of the Disclosure Schedules;

 

(g)          all
rights to any Actions of any nature available to or being pursued by Sellers whether arising by way of counterclaim or otherwise;

 

(h)          all
prepaid expenses, credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of recoupment,
deposits, charges, sums and fees (including any such item relating to the payment of Taxes) (“Prepaid Expenses”);

 

(i)      
    all of Sellers’ rights under warranties, indemnities and all similar rights against third
parties;

 

(j)   
       all books and records, including general, financial and accounting records,
machinery and equipment maintenance files, production data, quality control records and procedures, research and development
files, records and data (including all correspondence with any Governmental Authority), strategic plans, internal financial
statements, marketing and promotional surveys, material and research, and files relating to the Intellectual Property Assets
and the Contracts relating to Intellectual Property Rights, but excluding the Assigned Books and Records (the
“Excluded Books and Records”);

 

(k)          all
goodwill and the going concern value of the Business;

 

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(l) 
         Sellers’ cash, cash equivalents and bank accounts and Customer
deposits;

 

(m)         any
current assets not specified elsewhere;

 

(n)          the
corporate seals, organizational documents, minute books, stock books, Tax Returns and other records having to do with the corporate
organization of Sellers;

 

(o)          all
Seller Benefit Plans and assets attributable thereto;

 

(p)          all
accounting records (including records related to Taxes) and internal reports relating to the business activities of Sellers that
are not Purchased Assets;

 

(q)          any
interest in or right to any refund of Taxes that relate to Pre-Closing Tax Periods;

 

(r)          any
insurance policies and rights, claims or causes of action thereunder;

 

(s)          and

 

(t)  
        the rights which accrue or will accrue to Sellers under the Transaction
Documents.

 

Section 2.03         Assumed
Liabilities. Subject to the exercise by Buyer of the Call Option, and subject the terms and conditions set forth herein, Buyer
shall assume and agree to pay, perform and discharge only the following Liabilities of Sellers (collectively, the “Assumed
Liabilities”), and no other Liabilities:

 

(a)          all
Liabilities to the extent arising out of or relating to the ownership or use of the Purchased Assets by Buyer, including, without
limitation, all Liabilities arising under Novation Contracts, in each case after the Closing Date, and including all Liabilities
in respect of Customer deposits existing on the Closing Date (“Customer Deposits”), excluding such Liabilities
that are Excluded Liabilities;

 

(b)          all
Liabilities for Taxes related to the Purchased Assets for the Post-Closing Tax Period; and

 

(a)          all
Liabilities for Buyer’s share of Taxes pursuant to Section 6.13.

 

For the avoidance of doubt, disclosure by Seller
of any particular Liabilities or any particular facts or circumstances in the Disclosure Schedules shall not mean that such Liabilities
or facts or circumstances are Assumed Liabilities, it being expressly understood that Assumed Liabilities shall be limited to those
items described in this Section 2.03.

 

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Section 2.04         Excluded
Liabilities. Notwithstanding the provisions of Section 2.03 or any other provision in this Agreement to the contrary,
Buyer shall not assume and shall not be responsible to pay, perform or discharge any Liabilities of Sellers, or any Affiliates
of Sellers, of any kind or nature whatsoever other than the Assumed Liabilities (the “Excluded Liabilities”).
Sellers shall pay and satisfy concurrently with the Closing the Excluded Liabilities forth on Exhibit B hereto. Without
limiting the generality of the foregoing, the Excluded Liabilities shall include, without limitation, the following Liabilities
of Sellers:

 

(a)          any
Liabilities arising or incurred in connection with the negotiation, preparation, investigation and performance of this Agreement,
the other Transaction Documents and the transactions contemplated hereby and thereby, including fees and expenses of counsel, accountants,
consultants, advisers and others, except as set forth in Section 10.01;

 

(b)          any
Liability for Taxes with respect to the operations of Sellers during the Pre-Closing Tax Period or the Post-Closing Tax Period,
except as set forth in Section 2.03(b);

 

(a)          any
Liabilities relating to or arising out of the Excluded Assets;

 

(b)          any
Liabilities relating to any accounts payable of Sellers, including any Liabilities associated with the Inventory or other current
or long term liabilities of Sellers;

 

(c)          any
Liabilities in respect of any Action, arising out of or relating to facts or circumstances existing on or prior to the Closing
Date, regardless of when such Action arises, including (i) any product Liability or similar claim for injury to a Person; or (ii)
any recall of any products manufactured for or sold by Sellers;

 

(d)          any
Liabilities of Sellers arising under or in connection with Seller Benefit Plans;

 

(e)          any
Environmental Claims, or Liabilities under Environmental Laws, arising out of or relating to facts or circumstances existing on
or prior to the Closing Date;

 

(f)          any
Liabilities of Sellers which are not Assumed Liabilities;

 

(g)          any
Liabilities to indemnify, reimburse or advance amounts to any current or former member, officer, director, employee, agent or Affiliate
of Sellers or Members with respect to the Pre-Closing period, except for indemnification of same pursuant to Section 8.03
as Seller Indemnitees;

 

(h)          any
Liabilities under the Excluded Contracts or other Contracts which are not validly and effectively assigned to Buyer pursuant to
this Agreement or the underlying Contracts of any Novation Contract;

 

(i)     
     any Liabilities of Sellers to any current or former Members, employees, officers, directors,
retirees, independent contractors or consultants of Sellers or Members, including any Liabilities associated with any claims
for wages or other benefits, bonuses, accrued vacation, workers’ compensation, severance, retention, termination or
other payments;

 

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(j)   
       any Liabilities associated with debt, loans or credit facilities of Sellers owing
to financial institutions; and

 

(k)          any
Liabilities to the Persons disclosed in Section 4.23 of the Disclosure Schedules.

 

Section 2.05         Purchase
Price.

 

(a)          The
aggregate consideration for the Purchased Assets shall be (collectively, the “Purchase Price”): (i) Eight Million
Dollars ($8,000,000.00), in cash, reduced dollar for dollar by the amount of Customer Deposits (as so adjusted, the “Cash
Consideration”); plus (ii) the assumption of the Assumed Liabilities; plus (iii) the sum of Two Million Five Hundred
Thousand Dollars ($2,500,000.00) to be paid by delivery of the First Promissory Note (as defined herein); plus (iv) the sum of
One Million Four Hundred Seventy-Eight Thousand Dollars ($1,478,000) to be paid by delivery of the Second Promissory Note (as defined
herein). Customer Deposits shall be addressed as provided in Section 2.06 below.

 

(b)          On
the Closing Date, Buyer shall pay to Sellers an aggregate amount equal to the Cash Consideration less any Senior Debt, if any,
required to be paid at Closing in accordance with the payoff letter delivered by the lender of such Senior Debt, in form and substance
reasonably satisfactory to Buyer (the “Senior Debt Repayment”). Buyer shall (I) deliver the Cash Consideration,
less the Senior Debt Repayment, if any, by wire transfer of immediately available funds to an account designated in writing by
Sellers to Buyer and (II) deliver the Senior Debt Repayment, if any, by wire transfer of immediately available funds to the accounts
designated in writing by the payee thereof.

 

Section 2.06         Customer
Deposits. From and after the Closing, Buyer will be responsible for all liabilities
associated with Customer Deposits. Buyer shall promptly, and in no event later than thirty days following the Closing Date, contact
each Customer for which there is a Customer Deposit that does not relate to a purchase order or supply order as of the Closing
Date to request that such Customer enter into an agreement to acknowledge and consent to the assignment of all liabilities in
respect of such Customer Deposit to Buyer. If such Customer does not deliver such an acknowledgement and consent to Buyer within
a reasonable period of time following such request (the underlying Customer Deposit in such a situation, a “Non-Transferable
Deposit”), Buyer shall provide written notice thereof to Seller. In the event that any Customer Deposit pertains to
order for which there is a Non-Novation Event (as defined herein) or Non-Transferable Deposit, upon receipt of documentation evidencing
the fulfillment by a Seller of the order applicable to such Non-Novation Event or the return of all or any portion of such Non-Transferable
Deposit to the applicable Customer, Buyer shall promptly (i.e., no later than five (5) Business Days following receipt of such
documentation) pay the appropriate Seller an amount equal to the Customer Deposit underlying the order fulfilled in respect of
such Non-Novation Event or returned amount of such Non-Transferable Deposit, as applicable. In connection with the foregoing,
Sellers shall deliver to Buyer on or before the Closing a schedule setting forth the amount of each Customer Deposit, identifying
with particularity the customer and, where applicable, the specific order to which such Customer Deposit relates.

 

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Section 2.07         Allocation
of Purchase Price.  Sellers and Buyer shall jointly prepare an allocation of the Purchase Price (and all other capitalized
costs) among the Purchased Assets (the “Purchase Price Allocation”) consistent with the principles contained
in Section 2.07 of the Disclosure Schedules and in accordance with Section 1060 of the Code, which Purchase Price
Allocation shall be binding upon Buyer and Sellers, and shall be prepared within thirty (30) days after Closing. Buyer and Sellers
shall file Form 8594 (Asset Acquisition Statement Under Section 1060) on a timely basis reporting the Purchase Price Allocation
and shall report, act and file all other Tax Returns in all respects and for all purposes consistent with the Purchase Price Allocation.
Buyer and Sellers shall timely and properly prepare, execute, file and deliver all such documents, forms and other information
as the other may reasonably request in preparing such allocation. Buyer and Sellers shall not take any position on their respective
income tax returns that is inconsistent with such allocation.

 

Section 2.08         Third
Party Consents. To the extent that Sellers’ rights under any Purchased Asset may not be assigned to Buyer without the
consent of another Person which has not been obtained prior to the Closing, this Agreement shall not constitute an agreement to
assign the same if an attempted assignment would constitute a breach thereof or be unlawful, and Sellers shall use commercially
reasonable efforts to obtain any such required consent(s) as promptly as possible following the Closing, at Sellers’ cost
and expense. 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, then Sellers
and Buyer shall cooperate in any lawful and commercially reasonable arrangement, as Sellers and Buyer shall agree, under which
Buyer would, to the extent practicable, obtain the economic claims, rights and benefits under such asset and assume the economic
burdens and obligations with respect thereto in accordance with this Agreement, including by subcontracting, sublicensing or subleasing
to Buyer. Sellers shall promptly pay Buyer when received all monies received by Sellers under such Purchased Asset or any claim
or right or any benefit arising thereunder. Notwithstanding any provision in this Section 2.08 to the contrary, Buyer
shall not be deemed to have waived its rights under Section 7.02 hereof unless and until Buyer either provides written
waivers thereof or elects to proceed to consummate the transactions contemplated by this Agreement at Closing.

 

ARTICLE III

Closing

 

Section 3.01         Closing.
Subject to the terms and conditions of this Agreement, the Call Option Agreement and the satisfaction or waiver of all of
the conditions to the Closing set forth in Article VII (other than conditions which, by their nature, are to be satisfied
on the Closing Date, but subject to the satisfaction or waiver of such conditions), the consummation of the transactions contemplated
by this Agreement (the “Closing”) shall take place at the offices of Goodwin Procter LLP, 620 Eighth Avenue,
New York, New York 10018, at 12:00 pm, EST time, on the second Business Day after the Option Exercise Date, or at such other time,
date or place as Sellers and Buyer may mutually agree upon. The date on which the Closing is to occur is herein referred to as
the “Closing Date”.

 

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Section 3.02         Closing
Deliverables.

 

(a)          At
the Closing, Sellers shall deliver to Buyer (unless delivered previously) the following:

 

(i)          a
transition services agreement in the form of Exhibit C hereto (the “Transition Services Agreement”) duly
executed by Sellers;

 

(ii)         a
bill of sale in the form of Exhibit D hereto (the “Bill of Sale”) duly executed by Sellers, transferring
Sellers’ Purchased Assets to Buyer;

 

(iii)        an
Assignment and Assumption Agreement in the form of Exhibit E hereto (the “Assignment and Assumption Agreement”)
duly executed by Sellers effecting the assignment to and assumption by Buyer of the Purchased Assets and the Assumed Liabilities
of Seller;

 

(iv)        the
License Agreement, duly executed by Sellers;

 

(v)         the
Escrow Agreement, duly executed by Sellers;

 

(vi)        the
Sellers’ Closing Certificate;

 

(vii)       the
Sellers’ Officer Certificate;

 

(viii)      a
payoff letter in respect of the Senior Debt, in form and substance reasonably acceptable to the Buyer, and documentation regarding
the release of all Encumbrances and security granted or entered in connection therewith;

 

(ix)         the
FIRPTA Certificate (as defined herein); and

 

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

 

(b)          At
the Closing, Buyer shall deliver to Sellers the following:

 

(i)          the
Purchase Price (in accordance with Section 2.05);

 

(ii)         the
Transition Services Agreement duly executed by Buyer;

 

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

 

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(iv)        the
License Agreement duly executed by Buyer;

 

(v)         the
Escrow Agreement duly executed by Buyer and Escrow Agent;

 

(vi)        a
promissory note, in the principal amount of $2,500,000.00, in the form of Exhibit G hereto (the “First Promissory
Note”) duly executed by Buyer;

 

(vii)       a
promissory note, in the principal amount of $1,478,000.00, in the form of Exhibit H hereto (the “Second Promissory
Note”) duly executed by Buyer;

 

(viii)      the
Buyer Closing Certificate; and

 

(ix)         the
Buyer’s Secretary Certificate.

 

ARTICLE IV

Representations
and warranties of SellerS AND MEMBERS

 

Sellers and Members jointly
and severally make the following representations and warranties to Buyer, effective as of the Initial Disclosure Date. Exceptions
to any representation or warranty may be made in the corresponding sections of the Disclosure Schedule:

 

Section 4.01         Organization
and Qualification of Seller. Each Seller is a limited liability company duly organized, validly existing and in good standing
under the Laws of the State of New York and has full limited liability company power and authority to own, operate and lease the
properties and assets now owned, operated and leased by it and to carry on the Business as currently conducted. Section 4.01
of the Disclosure Schedules sets forth each jurisdiction in which Sellers are licensed or qualified to do business, and Sellers
are each duly licensed or qualified to do business and are each in good standing in each jurisdiction in which the ownership of
the Purchased Assets or the operation of the Business as currently conducted makes such licensing or qualification necessary,
except for those jurisdictions where a Seller’s failure to be licensed or qualified would not have a Material Adverse Effect.

 

Section 4.02         Authority.

 

(a)          Each
Seller has full limited liability company power and authority to enter into this Agreement and the other Transaction Documents
to which it is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby. The execution and delivery by each Seller of this Agreement and any other Transaction Document to which it is a party,
the performance by such Seller of its obligations hereunder and thereunder and the consummation by each Seller of the transactions
contemplated hereby and thereby have been duly authorized by all requisite limited liability company action on the part of such
Seller. This Agreement has been duly executed and delivered by each Seller and Member, and constitutes a legal, valid and binding
obligation of such Seller or Member enforceable against such Seller or Member in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditor’s rights and remedies generally, and
subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at
Law or in equity). When each other Transaction Document to which a Seller or Member is or will be a party has been duly executed
and delivered by such Seller or Member, such Transaction Document will constitute a legal and binding obligation of such Seller
or Member, enforceable against it or him in accordance with its terms, subject to (in each case), applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws affecting creditor’s rights and remedies generally, and subject, as to enforceability,
to general principles of equity (regardless of whether enforcement is sought in a proceeding at Law or in equity).

 

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(b)          The
Persons listed in Section 4.02(b)(i) of the Disclosure Schedules own all of the issued and outstanding equity interests
of Sellers and/or Members, respectively, in the percentages shown thereon, and (ii) except as set forth in Section 4.02(b)(ii)
of the Disclosure Schedules, no Person owns any options, warrants, subscriptions or other rights to purchase, or securities convertible
into or exchangeable for, any equity interest in any Seller or Member.

 

Section 4.03         No
Conflicts; Consents. Except as set forth in Section 4.03 of the Disclosure Schedules, the execution, delivery
and performance by each Seller and Member of this Agreement and the other Transaction Documents to which a Seller or Member is
a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result
in a violation or breach of, or default under, any provision of the organizational documents of either Seller; (b) conflict with
or result in a violation or breach of any provision of any Law or Governmental Order applicable to any Seller, Member or the Purchased
Assets; or (c) require notice to, or the consent, or other action by any Person under, conflict with, result in a violation or
breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default
under, result in the acceleration of or create in any Person the right to accelerate, terminate, modify or cancel any Contract
to which either Seller is a party or by which either Seller or to which any of the Purchased Assets are subject; or (d) result
in the creation or imposition of any Encumbrance on the Purchased Assets, other than Permitted Encumbrances. No consent, approval,
Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect
to either Seller in connection with the execution and delivery of this Agreement or any of the other Transaction Documents and
the consummation of the transactions contemplated hereby and thereby.

 

Section 4.04         Financial
Statements. Complete copies of the consolidated audited financial statements of Sellers consisting of a balance sheet as at
December 31, 2013 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the
year then ended (the “Audited Financial Statements”) have been made available to Buyer prior to the Initial
Disclosure Date, and the consolidated unaudited financial statements of Sellers consisting of the balance sheet as of June 30,
2014 and related statements of income and retained earnings, members’ equity and cash flow for the period then ended (the
“Initial Interim Financial Statements” and together with the Audited Financial Statements, the “Financial
Statements”). The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout
the period involved, subject, in the case of the Initial Interim Financial Statements, to normal and recurring year-end adjustments
(the effect of which will not be materially adverse in the aggregate) and the absence of notes (that, if presented, would not
differ materially from those presented in the Audited Financial Statements). The Financial Statements are based on the Books and
Records of Sellers and fairly present in all material respects the consolidated financial condition of Sellers as of their respective
dates and the results of the operations of Sellers’ Business for the periods indicated. The balance sheet of Sellers included
in the Audited Financial Statements is referred to herein as the “Balance Sheet” and the date thereof as the
“Balance Sheet Date”, and the balance sheet of Sellers as of the date of the Initial Interim Financial Statements
is referred to herein as the “Initial Interim Balance Sheet” and the date thereof as the “Initial
Interim Balance Sheet Date”).

 

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Section 4.05         Undisclosed
Liabilities. Except as set forth in Section 4.05 of the Disclosure Schedules, neither Seller has any monetary
Liabilities except (a) those which are adequately reflected or reserved against on the Initial Interim Balance Sheet, (b) those
which have been incurred in the ordinary course of business consistent with past practice since the Initial Interim Balance Sheet
Date, (c) those liabilities arising under this Agreement and the other Transaction Documents, (d) those which are included in
the computation of the Purchase Price, (e) those which are disclosed in the Disclosure Schedules, or (f) those Liabilities which
do not or would not, individually or in the aggregate, exceed $50,000.

 

Section 4.06         Absence
of Certain Changes.  Except as set forth in Section 4.06 of the Disclosure Schedules, since the Initial Interim
Balance Sheet Date (other than with respect to clause (a) below, which shall be since the Balance Sheet Date) there has not been
any:

 

(a)          event,
occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect;

 

(b)          material
change in any method of accounting or accounting practice of Sellers, except as required by GAAP or Law, or as disclosed in the
notes to the Financial Statements;

 

(c)          material
change in cash management practices and policies, practices and procedures with respect to collection of Accounts Receivable, establishment
of reserves for uncollectible Accounts Receivable, accrual of Accounts Receivable, inventory control, prepayment of expenses, payment
of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of Customer deposits;

 

(d)          transfer,
assignment, sale or other disposition of material assets that individually or in the aggregate are material to the Business, except
for the sale of Inventory in the ordinary course of business;

 

(e)          cancellation
of any claims or amendment, termination or waiver of any material rights of either Seller;

 

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(f)  
        transfer, assignment or grant of any license or sublicense of any rights
under or with respect to any Intellectual Property Assets;

 

(g)          material
damage, destruction or loss, or any material interruption in use, of any Purchased Assets, whether or not covered by insurance;

 

(h)          acceleration,
termination, or modification of any Material Contract or Permit;

 

(i)         
 imposition of any Encumbrance upon any Purchased Assets other than Permitted Encumbrances;

 

(j)         
 (i) grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other
compensation or benefits in respect of any employees, officers, directors, independent contractors or consultants, other than
as provided for in any written agreements, required by applicable Law or in the ordinary course of business consistent with
past practice, or (ii) action to accelerate the vesting or payment of any compensation or benefit for any employee, officer,
director, consultant or independent contractor;

 

(k)          adoption,
modification or termination of any: (i) employment, severance, retention or other Contract with any current or former member, manager,
employee, officer, independent contractor or consultant, (ii) Seller Benefit Plan, or (iii) collective bargaining or other agreement
with a Union;

 

(l)          any
loan to (or forgiveness of any loan to) or entry into any other transaction with Member or any manager, officer, employee or Affiliate
of either Seller or Member;

 

(m)          adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar
Law;

 

(n)          purchase,
lease or other acquisition of the right to own, use or lease any property or assets for an annual amount of $200,000 or more in
the aggregate, except for purchases of Inventory or supplies in the ordinary course of business consistent with past practice (including
purchases of Inventory or related product for Customers’ orders); or

 

(o)          any
Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section 4.07         Material
Contracts.

 

(a)          Section 4.07(a)
of the Disclosure Schedules lists each of the following Contracts (other than purchase orders (including commitments effected through
e-mail)) (x) by which any of the Purchased Assets are bound or affected or (y) to which either Seller is a party or by which it
is bound (such Contracts, together with all Contracts relating to Intellectual Property Rights set forth in Section 4.11(b)
of the Disclosure Schedules, being “Material Contracts”), as of the Initial Disclosure Date:

 

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(i)          all
Contracts involving any capital expenditures or series of related capital expenditures in excess of $50,000;

 

(ii)         all
contracts that provide for the indemnification of any Person or the assumption of any Tax, environmental or other Liability of
any Person;

 

(iii)        all
Contracts that relate to the acquisition or disposition of any business, a material amount of equity or assets of any other Person
(whether by merger, sale of stock, sale of assets or otherwise) pursuant to which either Seller has any continuing obligations,
or any continuing indemnification, “earn-out” or other liabilities (fixed, contingent or otherwise);

 

(iv)         all
broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing
consulting, and public relations and advertising Contracts that provide for payment or receipt by either Seller in connection with
the Business in excess of $25,000 on an annual basis;

 

(v)          all
Contracts with managers, officers, employees, independent contractors or consultants;

 

(vi)         all
Contracts relating to indebtedness or the granting of security for indebtedness, and all guaranties;

 

(vii)        all
Contracts with any Governmental Authority;

 

(viii)      all
Contracts that limit or purport to limit the ability of either Seller, or any transferee of substantially all of either Seller’s
assets, to compete or engage in any line of business or with any Person or in any geographic area or during any period of time;

 

(ix)         all
joint venture, partnership or similar Contracts;

 

(x)          all
Contracts for the sale of assets (excluding Inventory but including any master sale agreements related to the sale of Inventory)
of either Seller involving the receipt by either Seller of more than $25,000 or for the grant to any Person of any option, right
of first refusal or preferential or similar right to purchase any assets (including Inventory) of either Seller;

 

(xi)         all
powers of attorney;

 

(xii)        all
collective bargaining agreements or Contracts with any Union;

 

(xiii)      all
Contracts for the purchase or lease of real estate;

 

    	20

    	 

    

 

(xiv)      all
Contracts for the acquisition of services, supplies, equipment, inventory, or other personal property involving more than $25,000
in the aggregate per annum;

 

(xv)       all
Contracts with Member, or any Affiliate of either Seller or Member;

 

(xvi)      all
Contracts with respect to the return of Inventory in the possession of Customers by reason of alleged overshipment, defective merchandise
or otherwise; and

 

(xvii)     any
Contract or series of related Contracts that involve payments of more than $25,000 in the aggregate per annum;

 

(xviii)    all
Contracts that relate to the settlement of any Action within the three (3) years prior to the Initial Disclosure Date; and

 

(xix)       all
Contracts that terminate more than one year from the date hereof.

 

(b)          Each
Material Contract is valid and binding on the applicable Seller in accordance with its terms and is in full force and effect. Except
as set forth in Section 4.07(b) of the Disclosure Schedules, neither Sellers nor, to Sellers’ Knowledge, any
other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received
any written notice of any intention to terminate, any Material Contract. Except as set forth in Section 4.07(b) of
the Disclosure Schedules, to Sellers’ Knowledge, no event or circumstance has occurred that, with notice or lapse of time
or both, would constitute a material default under any Material Contract or result in a termination thereof or would cause or permit
the acceleration or other changes of any material right or obligation or the loss of any material benefit thereunder. Complete
and correct copies of each Material Contract (including all modifications, and supplements thereto and waivers thereunder) have
been made available to Buyer by Sellers. Except as set forth in Section 4.07(b) of the Disclosure Schedules, there
are no material disputes pending, or to Sellers’ Knowledge, threatened, under any Material Contract.

 

Section 4.08         Title
to Purchased Assets and Licensed Intellectual Property. Sellers have good and valid title to all of the Purchased Assets and
the Licensed Intellectual Property. All such Purchased Assets and Licensed Intellectual Property are free and clear of Encumbrances
except for the following (collectively referred to as “Permitted Encumbrances”):

 

(a)          those
items set forth in Section 4.08 of the Disclosure Schedules;

 

(b)          those
Encumbrances that will be discharged and released at the Closing by delivery of the Lien Release Payment; and

 

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(c)          mechanics’,
carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the ordinary course of business
consistent with past practice for amounts that are not delinquent and which are not, individually or in the aggregate, material
to the Business as presently conducted, the Purchased Assets or the Licensed Intellectual Property.

 

Section 4.09         [Intentionally
Omitted.]

 

Section 4.10         [Intentionally
Omitted.]

 

Section 4.11         Intellectual
Property.

 

(a)          Sellers
do not own any issued patents or pending applications for patents, applications or registrations for copyrights, or software. Section 4.11(a)
of the Disclosure Schedules contains a complete list of all applications and registrations for trademarks and domain names owned
by Sellers (the “Intellectual Property Assets”) and such registrations are in good standing.

 

(b)          Sellers
do not license any Intellectual Property Rights to any Person. Section 4.11(b) of the Disclosure Schedules contains
a complete list of all material licenses of Intellectual Property Rights to Sellers (but expressly excluding licenses of “off-the-shelf”
and other commercially available software licensed pursuant to standard terms). All such licenses are valid and binding in accordance
with their terms and in full force and effect. Neither Sellers nor, to Sellers’ Knowledge, any other party thereto is in
breach of or in default under (or is alleged to be in breach of or in default under), or has provided or received any written
notice of breach or default of or any intention to terminate any such license. To Sellers’ Knowledge, no event or circumstance
has occurred that, with notice or lapse of time or both, would constitute an event of default under any such license or result
in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any
benefit thereunder, except as disclosed in Section 4.11(b) of the Disclosure Schedules.

 

(c)          To
Sellers’ Knowledge, Sellers own or are otherwise authorized or licensed to use all Intellectual Property Rights necessary
for the conduct of its Business as presently conducted. The Intellectual Property Rights used in the Business as presently conducted
are sufficient in all material respects for the conduct of such Business. The Intellectual Property Rights owned by Sellers are
free and clear of any Encumbrances other than Permitted Encumbrances.

 

(d)          The
execution, delivery and performance of this Agreement and the other Transaction Documents to which Sellers are a party, and the
consummation of the transactions contemplated hereby and thereby, will not constitute a material breach of any license of material
Intellectual Property Rights to Sellers, nor cause the forfeiture, termination or impairment of any material Intellectual
Property Rights of Sellers, or result in payment of any additional amounts with respect to, such Intellectual Property Rights.

 

    	22

    	 

    

 

(e)          To
Sellers’ Knowledge, no Person is infringing upon, misappropriating, or otherwise violating the Intellectual Property Rights.

 

(f)          To
Sellers’ Knowledge, the use of the Intellectual Property Rights in the Business as presently conducted does not infringe
upon, misappropriate or otherwise violate any intellectual property rights of any Person.

 

(g)          Except
as set forth in Section 4.11(g) of the Disclosure Schedule, there are no Actions (including any oppositions, interferences
or re-examinations) settled, pending or to Sellers’ Knowledge, threatened (including in the form of offers to obtain a license);
(i) alleging any infringement or other violation of the Intellectual Property Rights of any Person by Sellers, (ii) challenging
the validity, enforceability, registrability or ownership of any Intellectual Property Rights of Sellers or Sellers’ rights
with respect to any Intellectual Property Rights; or (iii) either by Sellers or any other Person alleging any infringement or other
violation by any Person of any Intellectual Property Rights of Sellers. Sellers are not subject to any outstanding or prospective
Governmental Order that does or would restrict or impair the use of any of its Intellectual Property Rights.

 

Section 4.12         Inventory.
Section 4.12 of the Disclosure Schedules contains (a) a complete and correct list of Sellers’ Inventory as of the
Initial Interim Balance Sheet Date and as of the Closing Date, (b) the identity of the Customers for whom such Inventory is held
and (c) the value of such Inventory in accordance with GAAP applied on a consistent basis with the Financial Statements. All Inventory
is owned by Sellers free and clear of all Encumbrances other than Permitted Encumbrances, and no Inventory is held on a consignment
basis.

 

Section 4.13         [Intentionally
Omitted.]

 

Section 4.14         Customers
and Suppliers; Orders.

 

(a)          Section 4.14(a)
of the Disclosure Schedules sets forth, for the twelve (12) months prior to the Initial Interim Balance Sheet Date, (i) the top
ten (10) Customers (based on aggregate consideration paid to Sellers for goods or services rendered) (collectively, the “Material
Customers”); and (ii) the approximate amount of consideration paid by each Material Customer during such 12-month period.
Neither Seller has received any written notice that any of the Material Customers have ceased or intend to cease, after the Closing,
to purchase goods or services from Sellers or to otherwise terminate or materially reduce its relationship with Sellers.

 

(b)          Section 4.14(b)
of the Disclosure Schedules sets forth, for the twelve (12) months prior to the Initial Interim Balance Sheet Date, (i) the top
ten (10) suppliers (based on aggregate consideration paid by Sellers for goods or services rendered) (collectively, the “Material
Suppliers”); and (ii) the approximate amount of purchases from each Material Supplier during such 12-month period. Neither
Seller has received any written notice that any of the Material Suppliers has ceased, or intends to cease, after the Closing, to
supply goods or services to Sellers or to otherwise terminate or materially reduce its relationship with Sellers.

 

    	23

    	 

    

 

(c)          Sellers’
backlog of orders is consistent with their past practice. Sellers’ orders on hand are bona fide orders at prices similar
to recent past prices, and Sellers have no reason to believe any such orders will be subject to cancellation, deferred or
renegotiation in any material respect (other than adjustments consistent with past practices).

 

Section 4.15         Insurance.
Sellers have in place policies of fire, liability, product liability, umbrella liability, real and personal property, workers’
compensation, vehicular, fiduciary liability and other casualty and property insurance (collectively, the “Insurance
Policies”), which policies are in full force and effect and enforceable in accordance with their terms, and are sufficient
for compliance with all applicable Laws and Contracts to which either Seller is a party or by which it is bound. Section 4.15
of the Disclosure Schedules sets forth a list of all pending claims as of the Initial Disclosure Date, and the claims history
for the three (3) years prior to the Initial Disclosure Date, under Sellers’ insurance policies.

 

Section 4.16         Legal
Proceedings; Governmental Orders.

 

(a)          Except
as set forth in Section 4.16(a) of the Disclosure Schedules, there are no Actions pending by either Seller, and there
are no Actions pending, or, to Sellers’ Knowledge, threatened (in the form of a letter of counsel, or in a communication
from a consumer stating that he or she has or is retaining counsel) against either Seller. There are no Actions pending or, to
Sellers’ Knowledge, threatened, that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated
by this Agreement.

 

(b)          Except
as set forth in Section 4.16(b) of the Disclosure Schedules, there are no outstanding Governmental Orders and no unsatisfied
judgments, penalties or awards against, relating to or affecting either Seller. Sellers are in compliance in all material respects
with the terms of each Governmental Order set forth in Section 4.16(b) of the Disclosure Schedules.

 

Section 4.17         Compliance
with Laws. Except as set forth in Section 4.17 of the Disclosure Schedules, Sellers have complied within the two
(2) years prior to the date hereof, and are now complying, in all material respects with all applicable Laws (including applicable
occupational health and safety laws and regulations). Neither Seller has been charged in writing or threatened in writing with
any charge by any Governmental Authority concerning any violation of any provision of any Law that would result in material Liability
to the Purchased Assets or the Licensed Intellectual Property. Neither Seller is subject to any outstanding Governmental Order
of any Governmental Authority. Without limiting the generality of the foregoing, except as set forth in Section 4.17
of the Disclosure Schedules, there have been no product recalls, withdrawals or seizures by any Governmental Authority with respect
to any products developed, sold, licensed or delivered by Sellers.

 

    	24

    	 

    

 

Section 4.18         Environmental
Matters.

 

(a)          Except
as set forth in Section 4.18(a) of the Disclosure Schedules, the operations of Sellers are currently and have been
in compliance in all material respects with all Environmental Laws. Neither Seller has received from any Person any: (i) Environmental
Notice or Environmental Claim; or (ii) written request for information pursuant to Environmental Law, which, in each case, either
remains pending or unresolved, or is the source of ongoing obligations or requirements as of the Initial Disclosure Date.

 

(b)          Sellers
have obtained and are in material compliance with all Environmental Permits (each of which is disclosed in Section 4.18(b)
of the Disclosure Schedules) necessary for the conduct of the Business as currently conducted by Sellers or the ownership, operation
or use of the Purchased Assets and all such Environmental Permits are in full force and effect, and Sellers have no Knowledge of
any condition, event or circumstance that might prevent or impede, after the Closing Date or adversely affect the conduct of the
Business as currently conducted by Sellers or the ownership, operation or use of the Purchased Assets. With respect to any such
Environmental Permits, Sellers have undertaken, or will undertake prior to the Closing Date, all commercially reasonable measures
necessary to facilitate transferability of the same and to Sellers’ Knowledge there is no condition, event or circumstance
that might prevent or impede the transferability of the same, and neither Seller has received any Environmental Notice or written
communication regarding any material adverse change in the status or terms and conditions of the same or which would affect the
transferability of same.

 

(c)          To
Sellers’ Knowledge, no real property currently or formerly leased or operated by either Seller is listed on, or, to Sellers’
Knowledge, has been proposed for listing on, the National Priorities List (or CERCLIS) under CERCLA, or any similar state list.

 

(d)          There
has been no Release of Hazardous Materials in contravention of Environmental Law on any real property currently or formerly leased
or operated by either Seller, and neither Seller has received an Environmental Notice that any real property currently or formerly
leased or operated by either Seller has been contaminated with any Hazardous Material.

 

(e)          Section 4.18(e)
of the Disclosure Schedules contains a complete and accurate list of all off-site Hazardous Materials treatment, storage, or disposal
facilities or locations used by Seller and any predecessors as to which Sellers may retain liability, and none of these facilities
or locations has been placed or proposed for placement on the National Priorities List (or CERCLIS) under CERCLA, or any similar
state list, and neither Seller has received any Environmental Notice regarding potential liabilities with respect to such off-site
Hazardous Materials treatment, storage, or disposal facilities or locations used by Sellers.

 

(f)          Sellers
have not retained or assumed, by contract or operation of Law, any liabilities or obligations of any other Person that remain in
effect, valid or enforceable with respect to any material liability under any Environmental Law.

 

    	25

    	 

    

 

(g)          Sellers
have provided or otherwise made available to Buyer and listed in Section 4.18(g) of the Disclosure Schedules all environmental
reports and other similar documents, if any, with respect to any real property currently or formerly leased or operated by Sellers
which are in its possession or under their reasonable control.

 

(h)          Sellers
have no Knowledge of any facts or circumstance concerning the Release or regulation of Hazardous Materials that might, after the
Closing Date, prevent, impede or materially increase the costs associated with the ownership and use of the Purchased Assets.

 

Section 4.19         Employee
Benefit Matters.

 

(a)          Section 4.19(a)
of the Disclosure Schedules contains, as of the Initial Disclosure Date, a true and complete list of each pension, benefit, retirement,
compensation, profit-sharing, deferred compensation, incentive, performance award, phantom equity, stock or stock-based, change
in control, retention, severance, vacation, paid time off, fringe-benefit and other similar agreement, plan, policy, program or
arrangement (and any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded, including
each “employee benefit plan” within the meaning of Section 3(3) of ERISA, whether or not tax-qualified and whether
or not subject to ERISA (a “Benefit Plan”), which is or has within the four (4) years prior to the Initial
Disclosure Date been, maintained, sponsored, contributed to, or required to be contributed to by either Seller for the benefit
of any current or former member, manager, employee, officer, retiree, independent contractor or consultant of either Seller or
any spouse or dependent of such individual, or under which either Seller has or may have any Liability, or with respect to which
Buyer or any of its Affiliates would reasonably be expected to have any Liability, contingent or otherwise (as listed on Section 4.19(a)
of the Disclosure Schedules, each, a “Seller Benefit Plan”).

 

(b)          With
respect to Seller Benefit Plan, Sellers have made available to Buyer complete and correct copies of each of the following: (i)
where the Seller Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where the Seller
Benefit Plan has not been reduced to writing, a written summary of all material plan terms; (iii) copies of any summary plan descriptions,
summaries of material modifications, employee handbooks and any other written employee or workplace policies; (iv) in the case
of Seller Benefit Plan that is intended to be qualified under Section 401(a) of the Code, a copy of the most recent determination,
opinion or advisory letter from the Internal Revenue Service; (v) in the case of any Benefit Plan for which a Form 5500 is required
to be filed, a copy of the most recently filed Form 5500, with schedules attached; (vi) reports related to any Benefit Plans with
respect to the most recently completed plan years; and (vii) copies of material notices, letters or other correspondence from the
Internal Revenue Service, Department of Labor or Pension Benefit Guaranty Corporation relating to the Benefit Plan.

 

    	26

    	 

    

 

(c)          Except
as set forth in Section 4.19(c) of the Disclosure Schedules, Sellers’ Benefit Plans (other than any multiemployer
plan within the meaning of Section 3(37) of ERISA (each a “Multiemployer Plan”)) have been established,
administered and maintained in all material respects in accordance with its terms and in material compliance with all applicable
Laws (including ERISA and the Code). Seller Benefit Plan that is intended to be qualified under Section 401(a) of the Code
(a “Qualified Benefit Plan”) is so qualified and has received a favorable and current determination letter from
the Internal Revenue Service, or with respect to a prototype plan, can rely on an opinion letter from the Internal Revenue Service
to the prototype plan sponsor, to the effect that such Qualified Benefit Plan is so qualified and that the plan and the trust related
thereto are exempt from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code, and Sellers have received
no written notification indicating that the qualified status is being threatened or may be revoked. To the Knowledge of Sellers,
nothing has occurred with respect to any Seller Benefit Plan that could reasonably be expected to subject Buyer or any of its Affiliates,
to a penalty under Section 502 of ERISA or to tax or penalty under Section 4975 of the Code. Except as set forth in Section 4.19(c)
of the Disclosure Schedules, all benefits, contributions and premiums relating to Seller Benefit Plan have been timely paid in
accordance in all material respects with the terms of Seller Benefit Plan and all applicable Laws and accounting principles, and
all benefits accrued under any unfunded Seller Benefit Plan have been paid, accrued or otherwise adequately reserved to the extent
required by, and in accordance with GAAP.

 

(d)          Neither
Seller nor any of Sellers’ ERISA Affiliates have (i) incurred or reasonably expect to incur, either directly or indirectly,
any material Liability under Title I or Title IV of ERISA or related provisions of the Code relating to employee benefit plans;
(ii) withdrawn from any Seller Benefit Plan; or (iii) engaged in any transaction which would give rise to liability under Section 4069
or Section 4212(c) of ERISA.

 

(e)          With
respect to Seller Benefit Plan (i) no such plan is a Multiemployer Plan, (ii) no such plan is a “multiple employer plan”
within the meaning of Section 413(c) of the Code or a “multiple employer welfare arrangement” (as defined in Section 3(40)
of ERISA); and (iii) no such plan is subject to the minimum funding standards of Section 302 of ERISA or Section 412
of the Code.

 

(f)          Except
as set forth in Section 4.19(f) of the Disclosure Schedules and other than as required under Section 601 et. seq.
of ERISA or other applicable Law, no Seller Benefit Plan or other arrangement provides post-termination or retiree welfare (including
medical) benefits to any individual for any reason.

 

(g)          Except
as set forth in Section 4.19(g) of the Disclosure Schedules, within the four (4) years prior to the Initial
Disclosure Date there have not been, and there are not currently, any pending or, to Sellers’ Knowledge, threatened Actions
relating to any Seller Benefit Plan (other than routine claims for benefits), and no Seller Benefit Plan has been the subject of
an examination or audit by a Governmental Authority or the subject of an application or filing under, or is a participant in, an
amnesty, voluntary compliance, self-correction or similar program sponsored by any Governmental Authority.

 

    	27

    	 

    

 

(h)          There
has been no amendment to, announcement by either Seller relating to, or change in employee participation or coverage under, any
Seller Benefit Plan that would increase the annual expense of maintaining such plan above the level of the expense incurred for
the most recently completed fiscal year. Sellers have no commitment or obligation or have made any representations, whether or
not legally binding, to adopt, amend or modify any Seller Benefit Plan.

 

(i)          Each
Seller Benefit Plan that is subject to Section 409A of the Code has been operated in compliance in all material respects with
such Section and all applicable regulatory guidance (including, notices, rulings and proposed and final regulations).

 

(j)          Except
as set forth in Section 4.19(j) of the Disclosure Schedules, neither the execution of this Agreement nor any of the
transactions contemplated by this Agreement will (either alone or upon the occurrence of any additional or subsequent events):
(i) entitle any current or former member, manager, officer, employee, independent contractor or consultant of either Seller to
severance pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of compensation
due to any such individual; (iii) increase the amount payable under or result in any other material obligation pursuant to any
Seller Benefit Plan; or (iv) result in “excess parachute payments” within the meaning of Section 280G(b) of the
Code.

 

Section 4.20         Employment
Matters.

 

(a)          Section 4.20(a)
of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants of Sellers
as of the Initial Disclosure Date, and sets forth for each such individual the following: (i) name; (ii) title or position (including
whether full or part time); (iii) hire date; (iv) current annual base compensation rate; (v) commission, bonus or other incentive-based
compensation; (vi) a description of the fringe benefits provided to each such individual as of the date hereof; and (vii) such
individual’s accrued and unused paid time off. Except as set forth in Section 4.20(a) of the Disclosure Schedules,
as of the Initial Disclosure Date, all compensation, including wages, commissions and bonuses payable to Sellers’ employees,
independent contractors or consultants for services performed on or prior to the Initial Disclosure Date have been paid in full
and there are no outstanding agreements, understandings or commitments of either Seller with respect to any compensation, commissions
or bonuses.

 

(b)          Except
as set forth in Section 4.20(b) of the Disclosure Schedules, neither Seller is, nor has it been, a party to, bound
by, or negotiating any collective bargaining agreement or other Contract with a union, works council or labor organization (collectively,
“Union”), and there is not, and has not been, any Union representing or purporting to represent any employee
of either Seller, and, to Sellers’ Knowledge, no Union or group of employees is seeking or has sought to organize employees
for the purpose of collective bargaining. Except as set forth in Section 4.20(b) of the Disclosure Schedules, there
has not been in the prior two (2) years, nor has there been any written threat of, any strike, slowdown, work stoppage, lockout,
concerted refusal to work overtime or other similar labor disruption or dispute affecting Sellers or any employees of Sellers.
Neither Seller has a duty to bargain with any Union.

 

    	28

    	 

    

 

(c)          Sellers
are and have been in compliance in all material respects with the terms of all employment agreements to which Sellers are a party
(all of which are set forth in Section 4.20(c) of the Disclosure Schedules) and all applicable Laws pertaining
to employment and employment practices. All individuals characterized and treated by Sellers as consultants or independent contractors
of Sellers are properly treated as independent contractors under all applicable Laws. All employees of Sellers classified as exempt
under the Fair Labor Standards Act and state and local wage and hour laws are properly classified. Except as set forth in Section 4.20(c)
of the Disclosure Schedules, there are no Actions against either Seller pending, or to Sellers’ Knowledge, threatened in
writing to be brought or filed, by or with any Governmental Authority or arbitrator in connection with the employment of any current
or former applicant, employee, consultant, volunteer, intern or independent contractor of Sellers, including any claim relating
to unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wages and hours or any other employment
related matter arising under applicable Laws.

 

(d)          Neither
Seller is subject to the WARN Act with respect to the transactions contemplated by this Agreement.

 

Section 4.21         Taxes.
Except as set forth in Section 4.21 of the Disclosure Schedules:

 

(a)          All
income Tax Returns and all material non-income Tax Returns required to have been filed by Seller for any Pre-Closing Tax Period
have been, or will be, timely filed. Such Tax Returns are, or will be, complete and correct in all material respects. All Taxes
due and required to have been paid by Sellers (whether or not shown on any Tax Return) have been, or will be, timely paid.

 

(b)          Sellers
have withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any Employee,
independent contractor, creditor, Customer, shareholder or other party, and complied with all information reporting and backup
withholding provisions of applicable Law.

 

(c)          No
extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Sellers.

 

(d)          All
deficiencies asserted, or assessments made, against Sellers as a result of any examinations by any taxing authority have been fully
paid, accrued on the Initial Interim Financial Statements, or finally settled.

 

(e)          Neither
Seller is a party to any Action by any taxing authority. There are no Actions pending, or to Sellers’ Knowledge, threatened
in writing, by any taxing authority against either Seller.

 

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

 

    	29

    	 

    

 

(g)          Neither
Seller is a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

 

(h)          Neither
Seller is, nor has it been, a party to, or a promoter of, a “reportable transaction” within the meaning of Section 6707A(c)(1)
of the Code and Treasury Regulations Section 1.6011 4(b).

 

(i)        
  None of the Purchased Assets or the Licensed Intellectual Property is property that Sellers are required to treat
as being owned by any other person pursuant to the so-called “safe harbor lease” provisions of former
Section 168(f)(8) of the Internal Revenue Code of 1954, as amended.

 

(j)       
   None of the Purchased Assets or the Licensed Intellectual Property is tax-exempt use property within the
meaning of Section 168(h) of the Code.

 

Section 4.22         Permits.
All Permits required for Sellers to carry on their operations as presently conducted have been obtained by Seller and are
valid and in full force and effect, except, in each case, where the failure to have a particular Permit would not be material
to Sellers’ Business or the ownership and use of the Purchased Assets or the Licensed Intellectual Property. All fees and
charges due and payable with respect to such Permits as of the Initial Disclosure Date have been paid in full, except where the
failure to have paid would not be material to Seller’s Business or the ownership and use of the Purchased Assets or the
Licensed Intellectual Property. Section 4.22 of the Disclosure Schedules lists all current material Permits issued
to Sellers, including the names of the Permits and their respective dates of issuance and expiration. To Sellers’ Knowledge,
no event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation,
suspension, lapse or limitation of any Permit set forth in Section 4.22 of the Disclosure Schedules.

 

Section 4.23         Brokers.
Except as set forth in Section 4.23 of the Disclosure Schedules, no broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
or any other Transaction Document based upon arrangements made by or on behalf of Sellers.

 

Section 4.24         Product
Warranty. Except as set forth in Section 4.24 of the Disclosure Schedules, (a) neither Seller has Liability
for replacement of each product manufactured, sold, leased, or delivered by either Seller or other damages in connection
therewith, and (b) each product manufactured, sold, leased, or delivered by Seller has been in conformity in all material
respects with all applicable contractual commitments and all express and implied warranties (other than which the failure of
such product to so conform as a result of actions of Sellers’ subcontractors) subject only to the reserve for product
warranty claims set forth on the Initial Interim Balance Sheet as adjusted for the passage of time through the Closing Date
in accordance with the past custom and practice of Sellers. Section 4.24 of the Disclosure Schedules includes
copies of the standard terms and conditions of sale of Sellers (containing applicable guaranty, warranty, and indemnity
provisions). No product manufactured, sold, leased, or delivered by Sellers is subject to any guaranty, warranty, or other
indemnity beyond the applicable standard terms and conditions of sale set forth in Section 4.24 of the Disclosure
Schedules.

 

    	30

    	 

    

 

Section 4.25         Products
Liability. To Sellers’ Knowledge, no event has occurred that is reasonably likely to result in a material (individually
or in the aggregate) claim against either Seller for any injury to individuals or property as a result of the use of any product
sold or delivered by either Seller.

 

Section 4.26         Affiliate
Interests. Except as set forth in Section 4.26 of the Disclosure Schedules, neither Member nor any manager, or
officer or Affiliate of either Seller or Member:

 

(a)          owns
any interest in any Person which is a competitor, supplier or Customer of either Seller (not including any ownership of three percent
(3%) or less of any class of securities of a company whose securities are registered under the Securities Act);

 

(b)          owns,
in whole or in part, any property, asset or right used in connection with the Business;

 

(c)          has
an interest in any Contract pertaining to either Seller;

 

(d)          has
any contractual arrangements with either Seller; or

 

(e)          owes
any money to, or is owed any money by, either Seller, other than for current wages, benefits, and compensation paid and provided
in the ordinary course of business.

 

Section 4.27         No
Other Representations or Warranties. Except for the representations and warranties contained in this ARTICLE IV (as modified
by the Disclosure Schedules) or elsewhere herein, or in any Transaction Document, no Seller or Member makes, and no Seller or
Member shall have any Liability for, any other express or implied representation or warranty with respect to the Purchased Assets,
the Licensed Intellectual Property, the Business, Sellers or the Members, including with respect to any projections, estimates,
budgets or forward-looking statement heretofore delivered to or made available to Buyer or any information regarding future revenues,
expenses or results of operations of the Business or any other information or documents (financial or otherwise) made available
to Buyer or its Representatives. Subject to the terms of this Agreement, the condition of the Purchased Assets and the Licensed
Intellectual Property shall be “as is” and “where is”, and each Seller and Member disclaims (a) any other
representations or warranties of any kind or nature, express or implied, including as to the condition, value or quality of the
Purchased Assets or the Licensed Intellectual Property, (b) any representation or warranty of merchantability, usage, suitability
or fitness for any particular purpose with respect to such Purchased Assets or Licensed Intellectual Property, any part thereof,
the workmanship thereof, and the absence of any defects therein, whether latent or patent, and Buyer and its Representatives and
Affiliates are relying on their own examination and investigation. Notwithstanding anything in this Section 4.27 to
the contrary, nothing in this Agreement shall limit or restrict any Buyer Indemnitee’s right to enforce (in accordance with
this Agreement) such Person’s rights or remedies in the event of fraud.

 

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ARTICLE V

Representations
and warranties of buyer

 

Buyer represents and warrants
to Sellers as of the Initial Disclosure Date, as follows:

 

Section 5.01         Organization
of Buyer. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the state of Delaware,
and has the corporate power and authority to own, lease and operate its properties and assets and to carry on its business as
now being conducted.

 

Section 5.02         Authority
of Buyer. Buyer has full corporate power and authority to enter into this Agreement and the other Transaction Documents to
which Buyer is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is
a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement
has been duly executed and delivered by Buyer, and constitutes a legal, valid and binding obligation of Buyer enforceable against
Buyer in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws
affecting creditor’s rights and remedies generally, and subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding at Law or in equity). When each other Transaction Document to which Buyer is
or will be a party has been duly executed and delivered by Buyer, such Transaction Document will constitute a legal and binding
obligation of Buyer enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar Laws affecting creditor’s rights and remedies generally, and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a proceeding at Law or in equity).

 

Section 5.03         No
Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the other Transaction Documents
to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict
with or result in a violation or breach of, or default under, any provision of the certificate of incorporation or by-laws of
Buyer; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Buyer;
or (c) require the consent, notice or other action by any Person under, violate conflict with or result in a default (or any event
which, with notice or lapse of time or both, would constitute a default) under, or give rise to any right of termination, cancellation
or acceleration under any Contract to which Buyer is a party or by which Buyer or any of its assets may be bound. No consent,
approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with
respect to Buyer in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby.

 

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

 

Section 5.05         Legal
Proceedings. There are no Actions pending or, to Buyer’s knowledge, threatened (a) against or by Buyer, or (b) that
challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and no event has occurred
or circumstances exist that may give rise or serve as a basis for any such Action.

 

Section 5.06         Independent
Review. Buyer has conducted its own independent review and analysis of the Purchased Assets or the Licensed Intellectual Property,
and acknowledges that Buyer has been provided access to the properties, premises and records of the Business for this purpose.
In entering into this Agreement, Buyer has relied upon its own investigation and analysis and the representations and warranties
contained herein, and Buyer:

 

(a)          acknowledges
that it has had the opportunity to visit with Sellers and meet with their officers and other representatives to discuss the Purchased
Assets and the Licensed Intellectual Property;

 

(b)          acknowledges
that it has undertaken such due diligence (including a review of the assets, liabilities, books, records and Contracts of Sellers,
the Purchased Assets and the Licensed Intellectual Property) as Buyer deems adequate; and

 

(c)          except
for the representations and warranties contained in ARTICLE IV or the other Transaction Documents, Sellers do not make any
representations or warranties in connection with the transactions contemplated by this Agreement.

 

For the avoidance of doubt, nothing in this
Section 5.06, nor Buyer’s investigation, analysis, due diligence review, nor any information received by Buyer,
nor Buyer’s not having conducted any greater investigation, analysis or due diligence than it conducted, shall (w) operate
as a waiver or otherwise diminish any of Sellers’ representations and warranties and agreements given or made by Sellers
or Member in this Agreement, (x) be deemed to amend or supplement the Disclosure Schedules; (y) be deemed to be an acknowledgment
or agreement on the part of Buyer that Sellers’ and the Member’s representations and warranties, or the Disclosure
Schedules, are complete and correct; or (z) mean that Buyer’s Knowledge includes any facts or circumstances not expressly
set forth in Sellers’ and the Member’s representations and warranties or in the Disclosure Schedules.

 

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ARTICLE VI

Covenants

 

Section 6.01         Conduct
of Business Prior to the Closing. From the Option Exercise Date until the Closing Date, except as otherwise provided in this
Agreement or consented to in writing by Buyer, Sellers shall (x) conduct the Business in the ordinary course of business consistent
with past practice; and (y) use commercially reasonable efforts to maintain and preserve intact its current business organization,
operations and franchise and to preserve the rights, goodwill and relationships of its employees Customers, lenders, suppliers
and regulators with Seller. Without limiting the foregoing, from the Option Exercise Date through the Closing Date, Sellers shall:

 

(a)          preserve
and maintain all Permits required for the conduct of the Business as currently conducted by Sellers and the ownership and use of
the Purchased Assets and the Licensed Intellectual Property;

 

(b)          pay
their debts, Taxes and other obligations when due, unless diligently contested in good faith by appropriate proceedings;

 

(c)          continue
to collect Accounts Receivable in the ordinary course of business consistent with past practice;

 

(d)          maintain
the physical properties and assets included in the Purchased Assets and the Licensed Intellectual Property, in each case, in a
state of repair and condition that is consistent with the requirements and normal use of the Purchased Assets and the Licensed
Intellectual Property, in each case, in the ordinary course of business consistent with past practice;

 

(e)          continue
in full force and effect without modification all Insurance Policies, except as requested by applicable Law or for such modifications
made in the ordinary course of business;

 

(f) 
         maintain the Books and Records in accordance with past practice;

 

(g)          comply
in all material respects with all applicable Laws;

 

(h)          not
acquire by merger or consolidation with, or by purchase of a substantial portion of the assets, stock or other equity of, or by
any other manner, any business or any Person or any division thereof, individually or in the aggregate, for a consideration in
excess of $50,000 (provided, that the liabilities assumed by Sellers in connection with such transaction shall not exceed $50,000,
individually or in the aggregate); and

 

(i)          not
take or permit any action that would cause any of the changes, events or conditions described in clauses (b) through (o) of Section 4.06
to occur.

 

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Section 6.02         Access
to Information. Subject to the restrictions of any applicable Law or contractual undertaking disclosed in Section 4.07
of the Disclosure Schedules, from the Option Exercise Date until the Closing, Sellers shall (a) upon reasonable advance notice
received from Buyer, afford Buyer and its Representatives reasonable access to and the right to inspect all of the Real Property,
properties, assets, premises, Books and Records, Contracts and other documents and data related solely to the Purchased Assets,
the Licensed Intellectual Property or the Assumed Liabilities; (b) furnish Buyer and its Representatives with such financial,
operating and other data and information related to solely to the Purchased Assets, the Licensed Intellectual Property or the
Assumed Liabilities as Buyer or any of its Representatives may reasonably request; and (c) instruct the Representatives of Sellers
to cooperate with Buyer in its reasonable investigation of the Business. Any investigation pursuant to this Section 6.02
shall be conducted from time to time (i.e., not on a regular basis) during normal business hours under the supervision
of Sellers’ personnel and in such manner as to maintain the confidentiality of this Agreement and the transactions contemplated
hereby and not to interfere unreasonably with Sellers’ conduct of the Business. In the event Sellers require the engagement
of additional personnel or resources to satisfy its obligations under this Section 6.02, such engagement shall be
made at Buyer’s sole cost and expense.

 

Section 6.03         No
Solicitation of Other Bids.

 

(a)          From
the Option Exercise Date until the Closing Date, Sellers and the Members shall not, and shall not authorize or permit any of their
respective Affiliates or Representatives to, directly or indirectly, (i) encourage, solicit, initiate, facilitate or continue inquiries
regarding an Acquisition Proposal; (ii) enter into discussions or negotiations with, or provide any information to, any Person
concerning a possible Acquisition Proposal; or (iii) enter into any agreements or other instruments (whether or not binding) regarding
an Acquisition Proposal. Sellers and the Members shall immediately cease and cause to be terminated, and shall cause their respective
Affiliates and Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations with any
Persons conducted heretofore with respect to, or that could lead to, an Acquisition Proposal. For purposes hereof, “Acquisition
Proposal” means any inquiry, proposal or offer from any Person (other than Buyer or any of its Affiliates) relating to
the direct or indirect disposition, whether by sale, merger or otherwise, of all or any portion of Sellers’ Business, the
Purchased Assets or the Licensed Intellectual Property. For the avoidance of doubt, nothing in Section 6.01 or this
Section 6.03(a) or shall prohibit Sellers, the Members or their respective Affiliates or Representatives from exploring,
analyzing or examining the possibility of an acquisition of or joint venture with a manufacturer of nutritional products.

 

(b)          In
addition to the other obligations under this Section 6.03, Sellers and the Members shall promptly (and in any event
within two (2) Business Days after receipt thereof by either Seller or its Representatives) advise Buyer orally and in writing
of the existence of (i) any Acquisition Proposal, (ii) any request for information with respect to any Acquisition Proposal, or
(iii) any inquiry with respect to or which could reasonably be expected to result in an Acquisition Proposal.

 

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(c)          The
provisions of Section 6.06 shall be applicable during the periods set forth in Sections 6.03(a) and 6.03(b).

 

Section 6.04         Notice
of Certain Events; Supplemental Disclosure.

 

(a)          From
the Option Exercise Date until the Closing, Sellers shall promptly notify Buyer in writing of:

 

(i)          any
fact or circumstances, the existence of which (A) has had, or could reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect, or (B) has resulted in any covenant or agreement made by any Seller or Member hereunder or under any
other Transaction Document to be in breach;

 

(ii)         any
written notice or other written communication from any Person alleging that the consent of such Person is or may be required in
connection with the transactions contemplated by this Agreement;

 

(iii)        any
written notice or other written communication from any Governmental Authority relating to the transactions contemplated by this
Agreement; and

 

(iv)         any
Actions commenced or, to Sellers’ Knowledge, threatened in writing against, relating to or involving or otherwise affecting
the Business, the Purchased Assets, the Licensed Intellectual Property or the Assumed Liabilities that, if pending on the Option
Exercise Date, would have been required to have been disclosed pursuant to Section 4.16, or that relates to the consummation
of the transactions contemplated by this Agreement.

 

(b)          Sellers
shall, prior to Closing, by notice in accordance with the terms of this Agreement and the Call Option Agreement (pursuant to a
Schedule Update (as defined in the Call Option Agreement)), supplement or amend the Disclosure Schedules with respect to any matter
arising after the Initial Disclosure Date, which, if existing, occurring or known on the Initial Disclosure Date, would have been
required to be set forth or described in the Disclosure Schedules or which existed as of the Initial Disclosure Date but were not
included in the Disclosure Schedules as of the Initial Disclosure Date. Any disclosure in any such supplement or amendment for
purposes of the indemnification and termination rights contained in this Agreement shall not be deemed to have cured any inaccuracy
in or breach of any representation or warranty contained in this Agreement with regard to facts or circumstances existing as of
the Initial Disclosure Date, except as set forth in Section 7.02(a), or for determining whether or not the conditions set
forth in Section 7.01 and Section 7.02 have been satisfied.

 

(c)          Sellers
shall, prior to Closing, deliver consolidated unaudited financial statements of Sellers consisting of a balance sheet as at November
30, 2014 and the related statements of income and retained earnings, members’ equity and cash flow for the period then ended
(the “Interim Financial Statements”). The Interim Financial Statements shall be prepared in accordance with
GAAP applied on a consistent basis throughout the period involved, subject to normal and recurring year-end adjustments (the effect
of which will not be materially adverse in the aggregate) and the absence of notes (that, if presented, would not differ materially
from those presented in the Audited Financial Statements).

 

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(d)          Except
as expressly provided in Section 6.04(b), Buyer’s receipt of information pursuant to this Section 6.04
shall not operate as a waiver or otherwise diminish any representation, warranty, covenant or agreement given or made by Sellers
or the Members in this Agreement or any of the other Transaction Documents.

 

Section 6.05         Employees
and Employee Benefits.

 

(a)          Not
later than ten (10) Business Days prior to the Closing, Buyer shall deliver to Sellers a list of (i) each employee of a Seller
that Buyer will offer employment to, effective as of the Closing Date (a “Non-Continuing Employees”) and (ii)
each employee of a Seller who Buyer will not offer employment to as of the Closing (the “Continuing Employee”).
Commencing on the Closing Date, Sellers shall terminate all employees who are identified by Buyer as Non-Continuing Employees.
No later than the Closing Date, Buyer shall offer employment to each Non-Continuing Employee (which employment may be offered on
an “at will” basis). Sellers shall bear any and all obligations and liability under the WARN Act resulting from
employment losses pursuant to this Section 6.05. Each Non-Continuing Employee who accepts an offer of employment with
Buyer effective as of the Closing Date shall be referred to herein as a “Transferred Employee.”  No less
than ten (10) days prior to the Closing, Sellers shall provide Buyer with a list of employee layoffs, by date and location, implemented
by Sellers in the 90-day period preceding the Closing.

 

(b)          The
Transferred Employees shall receive credit for all periods of employment and/or service with Sellers and their Affiliates prior
to the Closing Date for purposes of eligibility and vesting under Buyer’s relevant plans and policies.

 

(c)          Effective
as of the Closing Date, Buyer shall offer the Transferred Employees and their eligible dependents participation in the Benefit
Plans of Buyer, including such medical, dental, life insurance, and short- and long-term disability as Buyer may offer to its other
similarly situated employees, in accordance with the terms and conditions of those plans as soon as practicable after the Closing
Date, but in no event more than thirty (30) days after the Closing Date. To the degree allowed under the applicable Buyer Benefit
Plan: (i) all waiting periods and pre-existing condition clauses shall be waived under Buyer’s Benefit Plans for the Transferred
Employees and their eligible dependents who were participating in similar Seller Benefit Plans before the Closing Date, and (ii)
Buyer shall cause its Benefit Plans to recognize any out-of-pocket medical and dental expenses incurred by each of the Transferred
Employees and their eligible dependents prior to the Closing Date and during the calendar year in which the Closing Date occurs
for purposes of determining deductibles and out-of-pocket maximums under Buyer’s Benefit Plans (and Sellers shall provide
such information to Buyer in connection with the Closing).

 

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(d)          From
and after the Closing Date, Buyer shall recognize, and permit each Transferred Employee to use his or her accrued (in the ordinary
course) and unused vacation days since January 1, 2014 (and Sellers shall provide such information to Buyer in connection with
the Closing). Buyer shall recognize service by each Transferred Employee with Sellers and its Affiliates for purposes of determining
entitlement to vacation under the applicable vacation policy of Buyer.

 

(e)          Sellers
shall be solely responsible, and Buyer shall have no obligations whatsoever for, any compensation or other amounts payable to any
current or former employee, officer, independent contractor or consultant of Sellers, including hourly pay, commission, bonus,
salary, accrued vacation, fringe, pension or profit sharing benefits or severance pay for any period relating to the service with
Sellers at any time on or prior to the Closing Date, and Sellers shall pay all such amounts to all entitled Persons in accordance
with Sellers’ normal payroll practices.

 

(f)          Sellers
shall keep its 401-k plan in place for up to ninety (90) days if so requested by Buyer (and at Buyer’s cost), to allow for
an orderly transition for Transferred Employees to Buyer’s 401-k plan.

 

(g)          Sellers
shall remain solely responsible for the satisfaction of all claims for medical, dental, life insurance, health, accident or disability
benefits brought by or in respect of current or former employees, officers, independent contractors or consultants, or the spouses,
dependents or beneficiaries thereof, which claims relate to events occurring on or prior to the Closing Date. Sellers also shall
remain solely responsible for all worker’s compensation claims of any current or former employees, officers, independent
contractors or consultants of Sellers which relate to events occurring on or prior to the Closing Date. Sellers shall pay, or cause
to be paid, all such amounts to the appropriate Persons as and when due.

 

(h)          The
Parties acknowledge that Jonathan Greenhut is expected to perform certain transitional services to Buyer on behalf of Nutricap
pursuant to the terms set forth in the Transition Services Agreement. If Mr. Greenhut terminates his employment with Nutricap
prior to the expiration of the Transition Period (a “Transition Failure Event”), Sellers shall, no later than
five (5) Business Days after Buyer’s written demand, pay to Buyer the sum of Two Hundred Fifty Thousand Dollars ($250,000)
as liquidated damages. The Parties acknowledge and agree that the harm to Buyer caused by a Transition Failure Event would be
impossible or extremely difficult to calculate, establish or estimate. The parties further acknowledge and agree, after negotiation
between Sellers and Buyer, that the liquidated damages set forth herein are a reasonable estimate of the anticipated or actual
harm that might arise from a Transition Failure Event, and therefore constitute reasonable compensation to Buyer, and not a penalty,
in the event of a Transition Failure Event.

 

(i)          Nothing
herein express or implied by this Agreement shall confer upon any employee of Sellers, or legal representative thereof, any rights
or remedies, including any right to employment or benefits for any specified period, of any nature or kind whatsoever, under or
by reason of this Agreement.

 

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Section 6.06         Confidentiality.
From and after the Closing until the third (3rd) anniversary of the Closing Date, Sellers and Member shall, and shall cause
their Affiliates to, hold, and shall use commercially reasonable efforts to cause its respective Representatives to hold, in confidence
any and all information, whether written or oral, concerning the Business, the Purchased Assets or the Licensed Intellectual Property,
except to the extent that Seller or Member can show that such information is generally available to and known by the public through
no fault of Sellers or Member or any of their Affiliates or Representatives; or is required to be disclosed by Law or judicial
or legal process. If Sellers or Member or any of their Affiliates or Representatives are compelled to disclose any information
by judicial or administrative process or by other requirements of Law, Sellers or Member shall promptly notify Buyer in writing
prior to making such disclosure so that Buyer may seek an appropriate protective order and shall disclose only that portion of
such information which Sellers or Member is advised by its counsel in writing is legally required to be disclosed, provided
that Sellers and Member shall use commercially reasonable efforts to ensure that confidential treatment will be accorded such
information. From and after the Closing, neither Sellers, Member nor any Affiliate of Sellers or Member shall directly or indirectly
use, or directly or indirectly assist any other Person in using, whether or not for compensation, any Confidential Information.

 

Section 6.07         Non-competition;
Non-solicitation.

 

(a)          Except
as set forth in Section 3 of the Transaction Services Agreement and except for the fulfillment of orders underlying Non-Novation
Events as contemplated by Section 2.06 and Section 6.14, for a period of three (3) years commencing on the Closing
Date (the “Non-Compete Period”), Sellers and Member shall not, and shall not permit any of their Affiliates
to, directly or indirectly, and whether or not for compensation, (i) engage in or assist others in engaging in the Business in
the Territory; or (ii) have an interest in any Person that engages directly or indirectly in the Business in the Territory in a
capacity as a partner, shareholder, member, officer, director, employee, principal, agent, trustee or consultant; and for a period
of three (3) years commencing on the Closing Date (the “Non-Solicitation Period”), Sellers and Member shall
not, and shall not permit any of their Affiliates to, directly or indirectly, and whether or not for compensation, cause, induce
or encourage any Customer, supplier or licensor of the Business to terminate or modify any relationship with Buyer. Notwithstanding
the foregoing, Sellers and Member may own, directly or indirectly, solely as an investment, securities of any Person traded
on any national securities exchange if such Seller or Member is not a controlling Person of, or a member of a group which
controls, such Person and does not, directly or indirectly, own three percent (3%) or more of any class of securities of such Person.
For the avoidance of doubt, the term “Business” as used in this Agreement, shall not include the business of
direct-to-consumer or the related retail distribution of vitamins, minerals or dietary supplements.

 

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(b)          During
the Non-Solicitation Period, Sellers and Member shall not, and shall not permit any of their Affiliates to, directly or indirectly,
hire or solicit any Transferred Employee or any other person who is employed by Buyer during the Non-Solicitation Period, or encourage
any such employee to leave such employment; provided, however, that Sellers, Member and their respective Affiliates shall
be permitted to (i) hire any Transferred Employee or any other person who is employed by Buyer during the Non-Solicitation Period
who is terminated by Buyer other than as a result of a breach by a Seller or Member of this Section 6.07(b) and (ii)
hire any Transferred Employee or any other person who is employed by Buyer during the Non-Solicitation Period after the 180 day
period following such employee’s voluntary termination of employment with Buyer; provided, however, that Ryan
Mayer shall be permitted to provide services to Stain Away LLC, an Affiliate of Sellers, so long as the performance of such services
do not interfere in any material respect with his performance of services to Buyer.

 

(c)          Sellers
and Member acknowledge that a breach or threatened breach of this Section 6.07 would give rise to irreparable harm
to Buyer, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened
breach by a Seller or Member of any such obligations, Buyer shall, in addition to any and all other rights and remedies that may
be available to it in respect of such breach, be entitled to seek equitable relief, including a temporary restraining order, an
injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any
requirement to post bond or other security).

 

(d)          Sellers
and Member acknowledge that the restrictions contained in this Section 6.07 are reasonable and necessary to
protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate
the transactions contemplated by this Agreement. In the event that any covenant contained in this Section 6.07 should
ever be adjudicated to exceed the time, geographic, product or service or other limitations permitted by applicable Law in any
jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such
jurisdiction to the maximum time, geographic, product or service or other limitations permitted by applicable Law. The covenants
contained in this Section 6.07 and each provision hereof are severable and distinct covenants and provisions. The invalidity
or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants
or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such covenant or provision in any other jurisdiction.

 

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Section 6.08         Governmental
Approvals and Consents.

 

(a)          Sellers
and Buyer shall, as promptly as possible, (i) make, or cause or be made, all filings and submissions required under any Law applicable
to such party or any of its Affiliates; and (ii) use reasonable best efforts to obtain, or cause to be obtained, all consents,
authorizations, orders and approvals from all Governmental Authorities that, in each case, are necessary for its execution and
delivery of this Agreement and the other Transaction Documents and the performance of its obligations pursuant to this Agreement
and the other Transaction Documents. Each party shall cooperate fully with the other parties and its Affiliates in promptly seeking
to obtain all such consents, authorizations, orders and approvals. The parties hereto shall not willfully take any action that
will have the effect of delaying, impairing or impeding the receipt of any required consents, authorizations, orders and approvals.

 

(b)          Sellers
and Buyer shall use commercially reasonable efforts to give all notices to, and obtain all consents from, all third parties to
which notice is required to be given or from which consent is required to be obtained that are described in Section 4.03
of the Disclosure Schedules.

 

(c)          Without
limiting the generality of the parties’ undertakings pursuant to subsections (a) and (b) above, each of the parties hereto
shall use all reasonable best efforts to:

 

(i)          respond
to any inquiries by any Governmental Authority regarding antitrust or other matters with respect to the transactions contemplated
by this Agreement or any other Transaction Document;

 

(ii)         avoid
the imposition of any order or the taking of any action that would restrain, alter or enjoin the transactions contemplated by this
Agreement or any other Transaction Document; and

 

(iii)        in
the event any Governmental Order adversely affecting the ability of the parties to consummate the transactions contemplated by
this Agreement or any other Transaction Document has been issued, to have such Governmental Order vacated or lifted.

 

(d)          All
analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings, arguments, and proposals made by or on
behalf of a party before any Governmental Authority, in connection with the transactions contemplated hereunder (but, for the avoidance
of doubt, not including any interactions between a Seller with Governmental Authorities in the ordinary course of business, any
disclosure which is not permitted by Law and any disclosure required on the part of Buyer or any Affiliates of Buyer for purposes
of federal or state securities laws) shall be disclosed to the other parties hereunder in advance of any filing, submission or
attendance, it being the intent that the parties will consult and cooperate with one another, and consider in good faith the views
of one another, in connection with any such analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings,
arguments, and proposals. Buyer and Sellers shall give notice to the other with respect to any meeting, discussion, appearance
or contact with any Governmental Authority or the staff or regulators of any Governmental Authority (other than federal or state
securities regulatory agencies).

 

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(e)          Notwithstanding
the foregoing, nothing in this Section 6.08 shall require, or be construed to require, Buyer or Sellers to agree to
(i) sell, hold, divest, discontinue or limit, before or after the Closing Date, any assets, businesses or interests of Buyer or
any of its Affiliates; (ii) any conditions relating to, or changes or restrictions in, the operations of any such assets, businesses
or interests which, in either case, could reasonably be expected to result in a Material Adverse Effect or materially and adversely
impact the economic or business benefits to Buyer or Sellers, as applicable, of the transactions contemplated by this Agreement
and the other Transaction Documents; or (iii) any material modification or waiver of the terms and conditions of this Agreement.

 

Section 6.09         Books
and Records.

 

(a)          For
a period of three (3) years after the Closing, Buyer shall:

 

(i)          to
the extent it received any Books and Records from Sellers, retain such Books and Records (including personnel files) relating to
periods prior to the Closing; and

 

(ii)         upon
reasonable notice, afford Sellers reasonable access (including the right to make, at Sellers’ expense, photocopies), during
normal business hours, to such Books and Records.

 

(b)          In
order to facilitate the resolution of any claims made by or against or incurred by Buyer after the Closing, or for any other reasonable
purpose, for a period of three (3) years following the Closing, Sellers shall:

 

(i)          retain
the books and records (including personnel files) of Sellers which relate to the Business and its operations for periods prior
to the Closing; and

 

(ii)         upon
reasonable notice, afford Buyer’s Representatives reasonable access (including the right to make, at Buyer’s expense,
photocopies), during normal business hours, to such books and records.

 

(c)          Neither
Buyer nor Sellers shall be obligated to provide the other party with access to any books or records (including personnel files)
pursuant to this Section 6.09 where such access would violate any Law or cause the waiver of Buyer’s or Sellers’
attorney-client privilege.

 

Section 6.10         Public
Announcements. Unless otherwise required by applicable Law (based upon the reasonable advice of counsel), no party to this
Agreement shall make any public announcements or other disclosure or otherwise communicate with any news media in respect of this
Agreement, the Call Option Agreement or the transactions contemplated hereby or thereby without the prior written consent of the
other parties (which, in the case of Sellers and the Members, may be given by either Seller), which consent shall not be unreasonably
withheld or delayed, and the parties shall cooperate as to the timing and contents of any such announcement. Notwithstanding the
foregoing, Sellers and Member acknowledge and agree that any filings or public announcements that Buyer or any Affiliate of Buyer
is required to make for federal or state securities laws purposes shall not be subject to this Section 6.11; provided,
however, Sellers and Member shall be entitled to consult on any proposed language in any filing or public announcement relating
to the transactions contemplated by the Transaction Documents.

 

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Section 6.11         Bulk
Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar Laws of any
jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.

 

Section 6.12         Receivables.

 

(a)          From
and after the Closing, if either Seller or any of its Affiliates receives or collects any funds relating to any Accounts Receivable
that pertains to a Post-Closing sale to a Customer by Buyer, such Seller or its Affiliate shall remit such funds to Buyer within
five (5) Business Days after its receipt thereof. From and after the Closing, if Buyer or its Affiliates receives or collects any
funds relating to any Excluded Asset, Buyer or its Affiliate shall remit any such funds to the appropriate Seller within five (5)
Business Days after its receipt thereof. For the avoidance of doubt, Sellers shall be entitled to the collection and receipt of
all Accounts Receivable arising from (a) the conduct of the Business prior to the close of business on the Closing Date, (b) the
sale of Inventory during the Selloff Period (as defined in the Transition Services Agreement) in accordance with Section 3 of the
Transition Services Agreement and (c) orders in respect of Non-Novation Events, and Buyer shall be entitled to the collection and
receipt of all accounts receivable arising from sales by it to Customers after the Closing Date. In the event that a Customer seeks
to take a deduction, offset or credit from or against an invoice of Buyer or Sellers, as applicable, with respect to Accounts Receivable
owed to the other party(ies), no such deduction, offset or credit shall be granted without the consent of the party who holds the
applicable Accounts Receivable.

 

(b)          The
parties acknowledge that subsequent to the Closing each will have outstanding Accounts Receivable that could be owing from the
same Customer. As between them, the parties agree that any amount collected in respect of any such receivable shall be allocated
to the underlying invoice to the extent such payment can be clearly identified to a specific invoice. If a party receives any payment
which cannot be reconciled to a specific invoice, such party shall notify the other parties hereto and the parties hereto shall
cooperate in good faith to determine how the payment from such Customer should be reconciled; provided, however, in the event that
the party receiving such payment has knowledge that such payment is in respect of the sale of products or provision of services
to such Customer by the another party hereto, the receiving party shall promptly (within 3 Business Days) turn such payment over
to such other party in the same form as received with any necessary endorsements and, in the case of any funds received in electronic
form, remit the proceeds to the designated bank account of such other party, as appropriate.

 

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Section 6.13         Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any
penalties and interest) incurred in connection with this Agreement and the other Transaction Documents (including any real property
transfer Tax and any other similar Tax) shall be borne and paid by Buyer when due. Sellers shall, at Buyer’s expense, timely
file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).

 

Section 6.14         Transition
of Customers; Novation Contracts.

 

(a)          Commencing
on the Closing Date and during the Transition Period (as defined in the Transition Services Agreement), the Sellers shall, at the
Buyer’s cost and request, notify (or cause to be notified) the Customers that the Sellers are winding down their respective
Business and shall recommend that Customers place future orders with Buyer for fulfillment. Notwithstanding anything to the contrary
contained herein, Buyer shall have the right, exercisable in its sole discretion, to provide notice to Sellers at or prior to the
Closing that Buyer is electing to cause any or all purchase orders and/or supply orders entered into by Sellers in respect of the
Business for which the Inventory in respect thereof has not been received by Sellers as of the Closing Date to be terminated, following
discussions with the counterparties to such orders (which discussions shall be facilitated, at Buyer’s request, by Sellers
in accordance with terms of the Transition Services Agreement), and replaced by new purchaser orders or supply orders pursuant
to which such Customer or supplier is contracting directly with Buyer (each, a “Novation Contract”); provided,
however, that with respect to each such order for which there is a Customer Deposit, Buyer shall contact each applicable Customer
no later than thirty (30) days following the Closing Date to request a Novation Contract. The Parties acknowledge that in the event
that (i) a Customer or supplier is unwilling or unable to enter into a Novation Contract within ten (10) days following request
thereof (or such other amount of time as reasonably agreed to by Sellers and Buyer) or (ii) a Customer or supplier is not contacted
to request a Novation Contract within a reasonable period of time following the Closing Date, and the failure to have a Novation
Contract entered into by such time would make it difficult for Sellers to timely fulfill the applicable order on its terms (the
events described in the foregoing clauses (i) and (ii), each a “Non-Novation Event”), Sellers shall be permitted
to fulfill the orders with respect to such Non-Novation Event and Buyer shall pay the amounts due pursuant to Section 2.06.
The failure of any counterparty to a Customer purchase order or supplier order to enter into a Novation Contract shall in no event
be a condition to the consummation of the Closing or give rise to a claim for indemnification by Sellers and Members pursuant to
Section 8.02 hereof, absent a breach of a representation or warranty contained herein.

 

(b)          The
entrance by Buyer into any Novation Contract shall not be deemed a transfer to Buyer pursuant to this Agreement of the underlying
order or agreement so novated.

 

Section 6.15         Change
of Names. Promptly following the termination of the Selloff Period (as defined in the Transition Services Agreement), each
Seller shall file an amendment to its Articles of Organization to change the name of such Seller to a name that does not use any
part of the current name of such Seller (other than “LLC”), or any name that is similar to the current name of such
Seller, or the name of any predecessor of such Seller, or any trade name of such Seller (all such names being “Prohibited
Names”), and thereafter Sellers and Member shall not use any Prohibited Name as the name of either Seller or Member.

 

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Section 6.16         Public
Filings. Prior to the Closing, before filing with the Securities and Exchange Commission (the “SEC”) any
document containing disclosures directly relating to any Seller (a “Seller Disclosure Document”), Buyer shall
furnish (or cause to be furnished) to such Seller copies of the portions of such proposed documents containing disclosures relating
to such Seller. Upon written request from any Seller, Buyer shall make itself available to discuss any Seller Disclosure Document
with such Seller. Buyer shall notify the Sellers after Buyer receives notice of the time when any such Seller Disclosure Document
has been filed. Buyer shall notify the Sellers of any request by the SEC for additional information regarding any Seller or to
amend or supplement any Seller Disclosure Document (an “SEC Disclosure Request”) directly related to this Agreement,
any Transaction Document, Members or Sellers. Notwithstanding the foregoing or anything else contained herein, nothing set forth
in this Agreement shall (x) in any way prohibit or limit Buyer from making, or require Buyer to include any language requested
by Sellers in, any disclosure required by the SEC, (y) require Buyer to include any Seller in any negotiation, conversation, or
other interaction between Buyer and the SEC or (z) require Buyers to (i) take any action to comply with this Section 6.16,
if Buyer is advised by counsel that such action is prohibited by law or otherwise or (ii) make any effort that is greater than
a “commercially reasonable” effort to satisfy Buyer’s obligations set forth in this Section 6.16. Notwithstanding
anything to the contrary contained herein, neither Buyer nor any Affiliate of Buyer shall file any Seller Disclosure Document
or issue any press release or public statement regarding the existence of the Transaction Documents or the transactions contemplated
thereby until the first to occur of (x) the Closing and (y) the fourth (4th) Business Day following the Option Exercise Date.

 

Section 6.17         Deposit
of Escrow Amount. On or prior to the Maturity Date (as defined in the First Promissory Note) of the First Promissory Note,
Buyer shall pay to Nutricap an aggregate amount equal to the Amount Due (as defined in the First Promissory Note) under the First
Promissory Note less the Escrow Amount. Buyer shall (I) deliver the Amount Due under the First Promissory Note, less the Escrow
Amount, by wire transfer of immediately available funds to an account designated in writing by Nutricap to Buyer, and (II) deposit
the Escrow Amount by wire transfer of immediately available funds into an account designated by the Escrow Agent, to be held and
distributed in accordance with the terms of the Escrow Agreement.

 

Section 6.18         Financing
Covenants.

 

(a)          Buyer
shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary, proper or advisable to, as soon as reasonably practical, (i) obtain and consummate equity or debt financing (the
“Additional Financing”) in an amount necessary to permit Buyer to pay the Amount Due under the First Promissory
Note as promptly as reasonably practical following the Closing, but in no event later than sixty (60) days thereafter
and (ii) cause its financing documents to permit the payment of the Amount Due on the terms set forth in the First Promissory Note.
 Buyer acknowledges and agrees that the obtaining of the financing contemplated by this Section 6.18(a) is
not a condition to the Closing. Buyer acknowledges and agrees that it shall use the proceeds of such Additional Financing, net
of any and all legal fees, brokerage or placement fees and other fees and/or expenses customarily paid from the proceeds of equity
or debt financing, to pay the Amount Due under the First Promissory Note in accordance with its terms prior to the use of such
proceeds for any other purpose, except for uses of amounts that are not, in the aggregate, material and which would not cause Buyer
to be unable to timely pay the Amount Due.

 

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(b)          Following
the Closing and until the Maturity Date (as defined in the First Promissory Note) of the First Promissory Note, (i) F. Peter Brechter,
on behalf of the Buyer, shall conduct weekly calls with Jonathan Greenhut, as representative of the Sellers, to reasonably inform
Sellers of all material activity concerning such financing activities and (ii) Buyer shall give Sellers prompt notice of any adverse
change with respect thereto; provided, however, the failure to conduct a weekly call under this Section 6.18(b) shall
not constitute a breach of this Agreement if the parties promptly conduct a call the following week.

 

Section 6.19         Further
Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, use commercially
reasonable efforts to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further
actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this
Agreement and the other Transaction Documents.

 

ARTICLE VII

Conditions
to closing

 

Section 7.01         Conditions
to Obligations of All Parties. The obligations of each party to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment (or written waiver by such party), at or prior to the Closing, of each of the following conditions:

 

(a)          No
Governmental Authority shall have issued any Governmental Order which is in effect and has the effect of making the transactions
contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of
the transactions contemplated hereunder to be rescinded following completion thereof.

 

(b)          No
Action shall have been commenced against Buyer, or either Seller, or any Member seeking to prevent the Closing.

 

(c)          All
approvals, consents and waivers that are listed in Section 7.02(c) of the Disclosure Schedules shall have been received,
and executed counterparts thereof shall have been delivered to Buyer and Sellers at or prior to the Closing.

 

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Section 7.02         Conditions
to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject
to the fulfillment or Buyer’s waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          The
representations and warranties of Sellers contained in this Agreement, the other Transaction Documents and any certificate or other
writing delivered pursuant hereto shall be complete and correct in all respects (in the case of any representation or warranty
qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty
not qualified by materiality or Material Adverse Effect), at and as if made on the Initial Disclosure Date; provided, that,
(i) if such representations and warranties were not so complete and correct in accordance with the foregoing as of the Initial
Disclosure Date (an “Incomplete Representation”), (ii) prior to the Closing Date, such Incomplete Representation
becomes so complete and correct (a “Complete Representation”) (including as a result of actions taken by Sellers),
and (iii) if such Incomplete Representation became a Complete Representation in a manner that does not materially increase Buyer’s
obligations or liabilities, or reasonably foreseeable obligations or liabilities, after the Closing Date, or materially and adversely
impact Buyer’s ability to own and operate the Purchased Assets or the Licensed Intellectual Property after the Closing Date
in substantially the same manner as the Purchased Assets and the Licensed Intellectual Property were owned and operated by Sellers
on the Initial Disclosure Date, then such representations and warranties shall be deemed to have been so complete and correct as
of the Initial Disclosure Date. For the avoidance of doubt, Sellers’ delivery of a Schedule Update shall not in-and-of itself
make an Incomplete Representation a Complete Representation for purposes of this Section 7.02.

 

(b)          Sellers
and Member shall have duly performed and complied in all material respects with all agreements, covenants and conditions required
by this Agreement and each of the other Transaction Documents to be performed or complied with by it prior to or on the Closing
Date.

 

(c)          All
approvals, consents and waivers that are listed in Section 7.02(c) of the Disclosure Schedules shall have been received
and executed counterparts thereof shall have been delivered to Buyer at or prior to the Closing.

 

(d)          From
the date of this Agreement, there shall not have occurred a Material Adverse Effect, which for purposes of this Section 7.02(d)
only, shall also include a material breach of the representations and warranties set forth in Section 4.01, Section 4.02,
and the first sentence of Section 4.08.

 

(e)          Sellers
and Member (as applicable) shall have delivered to Buyer duly executed counterparts to the Transaction Documents and such other
documents and deliveries set forth in Section 3.02(a).

 

(f)          All
Encumbrances relating to the Purchased Assets and the Licensed Intellectual Property shall have been released in full, other than
Permitted Encumbrances, and Sellers shall have delivered to Buyer written evidence, in form and substance reasonably satisfactory
to Buyer, of the release of such Encumbrances.

 

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(g)          All
Senior Debt, if any, to the extent not satisfied by the Senior Debt Repayment, shall have been paid in full, and Buyer shall have
received written evidence thereof in form and substance reasonably satisfactory to Buyer.

 

(h)          Buyer
shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of each Seller, that each of
the conditions set forth in Section 7.02(a) and Section 7.02(b) have been satisfied (the “Sellers’
Closing Certificate”).

 

(i)          Buyer
shall have received a certificate in form and substance reasonably acceptable to Buyer (“Sellers’ Officer Certificate”)
executed by an executive officer of each Seller attaching and certifying true and correct copies of (i) Sellers’ Articles
of Organization, (ii) Sellers’ Operating Agreements, and (iii) the resolutions of Sellers’ Member approving this Agreement
and the transactions contemplated hereby.

 

(j)          Buyer
shall have received a certificate pursuant to Treasury Regulations Section 1.1445-2(b) (the “FIRPTA Certificate”)
that neither Seller is a foreign person within the meaning of Section 1445 of the Code duly executed by Sellers.

 

(k)          Buyer
shall have received from Sellers a schedule setting forth a complete and correct list of all Customer Labels as of the Closing
Date, including identification of the Customers for which such Customer Labels are held.

 

(l)          Buyer
shall have received from Sellers a schedule setting forth a complete and correct list of all Customer Deposits as of the Closing
Date, including the amount of each such Customer Deposit, the identity with particularity of the applicable Customer and, where
applicable, the specific order to which such Customer Deposit relates.

 

Section 7.03         Conditions
to Obligations of Sellers. The obligations of Sellers to consummate the transactions contemplated by this Agreement shall
be subject to the fulfillment or Sellers’ waiver, at or prior to the Closing, of each of the following conditions:

 

(a)          No
Governmental Authority shall have issued any Governmental Order which is in effect and has the effect of making the transactions
contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of
the transactions contemplated hereunder to be rescinded following completion thereof.

 

(b)          No
Action shall have been commenced against Buyer or Sellers seeking to prevent the Closing.

 

(c)          All
approvals, consents and waivers that are listed in Section 7.02(c) of the Disclosure Schedules shall have been received,
and executed counterparts thereof shall have been delivered to Buyer at or prior to the Closing.

 

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(d)          The
representations and warranties of Buyer contained in this Agreement, the other Transaction Documents and any certificate or other
writing delivered pursuant hereto shall be complete and correct in all respects (in the case of any representation or warranty
qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty
not qualified by materiality or Material Adverse Effect), at and as if made on the Closing Date.

 

(e)          Buyer
shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this
Agreement and each of the other Transaction Documents to be performed or complied with by it prior to or on the Closing Date, including
payment of the Purchase Price on the terms and conditions provided herein.

 

(f)          Buyer
shall have delivered to Sellers duly executed counterparts to the Transaction Documents and such other documents and deliveries
set forth in Section 3.02(b).

 

(g)          Buyer
shall have delivered the Senior Debt Repayment pursuant to Section 2.05(b).

 

(h)          Sellers
shall have received a certificate, in form and substance reasonably satisfactory to Sellers, dated the Closing Date and signed
by a duly authorized officer of Buyer, that each of the conditions set forth in Section 7.03(a) and Section 7.03(e)
have been satisfied (the “Buyer Closing Certificate”).

 

(i)          Sellers
shall have received a certificate in form and substance reasonably acceptable to Sellers (“Buyer’s Secretary Certificate”)
executed by the secretary of Buyer attaching and certifying true and correct copies of (i) Buyer’s Certificate of Incorporation,
(ii) Buyer’s Bylaws, (iii) the resolutions of Buyer’s Board of Directors approving this Agreement and the
transactions contemplated hereby, and (iv) the resolutions of Buyer’s shareholders approving this Agreement and the
transactions contemplated hereby.

 

ARTICLE VIII

Indemnification

 

Section 8.01         Survival.
Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall
survive the Closing and shall remain in full force and effect until the date that is eighteen (18) months from the Closing Date
(the “Expiration Date”); provided, that the representations and warranties in Section 4.01,
Section 4.02, the first sentence of Section 4.08, Section 5.01, Section 5.02 and
Section 5.04 shall survive indefinitely, the representations and warranties in Section 4.18 (but only
as to which Buyer’s Losses exceed $100,000) shall survive for four (4) years following the Closing, and the representations
and warranties in Section 4.21 shall survive for the full period of all applicable statutes of limitations (giving
effect to any waiver, mitigation or extension thereof) that would apply to Third Party Claims regarding the subject matter of
such representations and warranties plus sixty (60) days. All covenants and agreements of the parties contained herein shall survive
the Closing for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good faith with
reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching
party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant
representation or warranty and such claims shall survive until finally resolved; provided, that no claim may be asserted
against any party for a breach of a representation and warranty unless written notice of such claim is received by such party,
describing in reasonable detail the facts and circumstances with respect to the subject matter of such claim, on or prior to the
date on which the representation or warranty on which such claim is based ceases to survive as set forth.

 

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Section 8.02         Indemnification
By Sellers and Members. Subject to the other terms and conditions of this ARTICLE VIII, Sellers and Members shall
jointly and severally indemnify and defend Buyer and its Affiliates and their respective Representatives (collectively, the “Buyer
Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them
for, any and all Losses incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, arising out of, with respect
to or by reason of (but without duplication):

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of Sellers, as of the Initial Disclosure Date and as of the
Closing Date, contained in this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the License Agreement, the
Call Option Agreement or in any certificate or instrument delivered by or on behalf of Sellers pursuant to this Agreement;

 

(b)          any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Sellers pursuant to this Agreement, the Bill
of Sale, the Assignment and Assumption Agreement, the License Agreement, the Call Option Agreement or any certificate or instrument
delivered by or on behalf of Sellers pursuant to this Agreement; or

 

(c)          any
Excluded Asset or any Excluded Liability, provided that any claims for indemnification with regard to the Excluded Liabilities
set forth in Section 2.04(g) shall be subject to the same indemnification limitations applicable to inaccuracies or
breaches of the representations and warranties set forth in Section 4.18.

 

Section 8.03         Indemnification
By Buyer. Subject to the other terms and conditions of this ARTICLE VIII, Buyer shall indemnify and defend Sellers
and their respective Affiliates and Representatives (collectively, the “Seller Indemnitees”) against, and shall
hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained
by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of (but without duplication):

 

(a)          any
inaccuracy in or breach of any of the representations or warranties of Buyer, as of the Initial Disclosure Date and as of the Closing
Date contained in this Agreement, or in any certificate or instrument delivered by or on behalf of Buyer pursuant to this Agreement,
the Bill of Sale, the Assignment and Assumption Agreement or the License Agreement;

 

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(b)          any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement, the Bill
of Sale, the Assignment and Assumption Agreement, the License Agreement or the Call Option Agreement; or

 

(c)          any
Assumed Liability or Purchased Asset.

 

Section 8.04         Certain
Limitations. The indemnification provided for in Section 8.02 and Section 8.03 shall be subject to
the following limitations:

 

(a)          Sellers
and Members shall not be liable to the Buyer Indemnitees for indemnification under Section 8.02(a) until the aggregate
amount of all Losses in respect of indemnification under Section 8.02(a) exceeds $157,500 (the “Basket”),
in which event Sellers and Members shall only be liable for any such Losses in excess of the Basket. Representations and warranties
in Article IV that are qualified by the terms “material” or “Material Adverse Effect”, or other terms of
similar impact or effect, shall be read without regard to such terms (i.e., as if such words were deleted from such representation
or warranty), and if the Losses in respect of any breach of any such representation and warranty (as so modified) do not exceed
$15,750, such Losses will not count toward the Basket or otherwise be indemnified; provided that if the aggregate amount
of all such Losses exceeds $50,000, then all such Losses (including the first $50,000 of such Losses) shall count toward the Basket,
but Sellers and Members shall be liable solely for the extent of Losses in excess of the Basket.

 

(b)          Buyer
shall not be liable to the Seller Indemnitees for indemnification under Section 8.03(a) until the aggregate amount
of all Losses in respect of indemnification under Section 8.03(a) exceeds the Basket, in which event Buyer shall be
liable for any such Losses in excess of the Basket.

 

(c)          In
no event shall the aggregate amount of indemnity required to be paid by Sellers and Members pursuant to Section 8.02(a)
or by Buyer pursuant to Section 8.03(a) exceed $1,570,000 (the “Cap”); provided, that the
Cap shall not apply with respect to a breach of any representation or warranty in Section 4.01, Section 4.02,
the first sentence of Section 4.08, Section 4.19, Section 4.21, Section 4.23,
Section 5.01 or Section 5.02. Without limiting the applicability of the previous sentence, the aggregate liability
of Seller for Losses arising out of, resulting from, or relating to (i) Section 8.02(a) or (ii) fraud, shall be limited
to the Purchase Price.

 

(d)          Notwithstanding
the foregoing, the limitations set forth in Section 8.04(a) and Section 8.04(b) shall not apply to Losses
based upon, arising out of, with respect to or by reason of any inaccuracy in or breach of any representation or warranty in Section 4.01,
Section 4.02, the first sentence of Section 4.08, Section 4.18, Section 4.19, Section 4.21,
Section 4.23, Section 5.01 or Section 5.02.

 

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(e)          For
the avoidance of doubt, the limitations set forth in Section 8.04(a), Section 8.04(b), and Section 8.04(c)
shall not apply to Losses based upon, arising out of, with respect to or by reason of Sections 8.02(b) or (c).

 

(f)          The
parties shall cooperate with each other to resolve any claim, Liability or Loss with respect to which one party is obligated to
indemnify the other party hereunder, including making commercially reasonable efforts to resolve such claim, Liability or Loss.
For any indemnifiable claim hereunder, (i) the recovery by the Indemnified Party shall be limited to the amount of actual out-of-pocket
indemnifiable Losses sustained by such Indemnified Party and (ii) the Indemnified Party shall seek indemnification from any then-available
third party insurance coverage. For all purposes of this ARTICLE VIII, “Losses” shall be net of any third
party insurance proceeds or any indemnity, contributions or other similar payment actually paid to the Indemnified Party or its
Affiliates in connection with the facts giving right to the right of indemnification (provided that Buyer shall be under no obligation
to initiate any legal proceedings to obtain such payments).

 

(g)          In
any case where a Buyer Indemnitee recovers from third Persons any amount in respect of a matter with respect to which Seller have
made an indemnification payment to such Buyer Indemnitee pursuant to this Agreement, such Buyer Indemnitee shall promptly pay over
to Sellers the amount so recovered (after deducting therefrom the full amount of the expenses incurred by the Buyer Indemnitee
in procuring such recovery), and any amount expended by Sellers in pursuing or defending any claim arising out of such matter,
but not in excess of the amount of the indemnification payment previously paid by Sellers to or on behalf of such Buyer Indemnitee
in respect of such matter.

 

(h)          Notwithstanding
anything contained in the Transaction Documents to the contrary, no Buyer Indemnitee may recover duplicative Losses in respect
of a single set of facts or circumstances under more than one representation or warranty in this Agreement regardless of whether
such facts or circumstances would give rise to a breach of more than one representation or warranty in this Agreement.

 

(i)          Notwithstanding
the foregoing or anything else contained herein, subject to the proviso in Section 8.09, if the Closing occurs, Buyer
Indemnitees shall be indemnified for any Losses incurred by them as a result of any breaches in any representations and warranties
herein, in the Bill of Sale, the Assignment and Assumption Agreement, the License Agreement, the Call Option Agreement or in any
certificate or instrument delivered by or on behalf of Sellers pursuant to this Agreement, or any changes in facts or circumstances
covered by Sellers’ representations and warranties set forth in any representations and warranties herein, the Bill of Sale,
the Assignment and Assumption Agreement, the License Agreement, the Call Option Agreement or in any certificate or instrument delivered
by or on behalf of Sellers pursuant to this Agreement, that occur between the Initial Disclosure Date and the Closing Date, except
for changes that occur in the ordinary course of business in (i) the list of Sellers’ Inventory set forth in Section 4.12
of the Disclosure Schedule, (ii) the list of Sellers’ Material Customers set forth in Section 4.14(a) of the
Disclosure Schedule and (iii) the list of Sellers’ Material Suppliers set forth in Section 4.14(b) of the Disclosure
Schedule. For the avoidance of doubt, the indemnification set forth in this Section 8.04(i) shall apply even if Seller’s
representations and warranties set forth in Article IV, as supplemented by Schedule Updates, are complete and correct as of the
Closing Date.

 

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Section 8.05         Indemnification
Procedures. The party making a claim under this ARTICLE VIII is referred to as the “Indemnified Party”,
and the party against whom such claims are asserted under this ARTICLE VIII is referred to as the “Indemnifying
Party”.

 

(a)          Third
Party Claims. If any Indemnified Party receives written notice of the threat, assertion or commencement of any Action made
or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative
of the foregoing (a “Third Party Claim”) against such Indemnified Party with respect to which an Indemnifying
Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party prompt
written notice thereof (and in any event, prior to the Expiration Date), provided, that the delay or failure to so notify
the Indemnifying Party shall not relieve the Indemnifying Party of its indemnification obligations, except and only to the extent
that the Indemnifying Party is actually prejudiced thereby. Such notice by the Indemnified Party shall describe the Third Party
Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount,
if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall
have the right to participate in, or by giving written notice to the Indemnified Party within thirty (30) days following the Indemnifying
Party’s receipt of notice of a Third Party Claim, to assume the defense of any Third Party Claim at the Indemnifying Party’s
expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense;
provided, that if the Indemnifying Party is a Seller, such Indemnifying Party shall not have the right to defend or direct
the defense of any such Third Party Claim that involves any criminal or quasi-criminal legal proceeding to which the Indemnified
Party is a party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to Section 8.05(b),
it shall have the right to take such action as it deems necessary to dispute, defend, appeal or make counterclaims pertaining to
any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate
in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control
the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party, provided,
that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available to an Indemnified
Party that are different from or additional to those available to the Indemnifying Party; or (B) there exists a conflict of interest
between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the
reasonable fees and expenses of counsel to the Indemnified Party, provided, however, that the Indemnifying Party
will not be required to pay the fees and expenses of more than one counsel for all Indemnified Parties in any jurisdiction in any
single Third Party Claim. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to notify
the Indemnified Party in writing within the 30-day period noted above of its election to defend as provided in this Agreement,
or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 8.05(b),
pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating
to such Third Party Claim. In any Third Party Claim with respect to which indemnification is being sought hereunder, the Indemnified
Party or the Indemnifying Party, whichever is not assuming the defense of such Third Party Claim, shall have the right to participate
in such matter and to retain its own counsel at such party’s own expense. The Indemnified Party and the Indemnifying Part
shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making
available (subject to the provisions of Section 6.06) records relating to such Third Party Claim and furnishing, without
expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending
party as may be reasonably necessary for the preparation of the defense of such Third Party Claim and shall at all times use reasonable
best efforts to keep the other party reasonably apprised of the status of any matter the defense of which they are maintaining.

 

    	53

    	 

    

 

(b)          Settlement
of Third Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement
of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided in this Section 8.05(b).
If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation
or restriction on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified
Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept
and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified
Party fails to consent to such firm offer within ten (10) days after its receipt of such notice, the Indemnified Party may continue
to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third
Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to respond to such firm offer
within ten (10) days after its receipt of notice and also fails to assume defense of such Third Party Claim, the Indemnifying Party
may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified
Party has assumed the defense pursuant to Section 8.05(a), it shall not agree to any settlement without the written
consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

 

(c)          Direct
Claims. Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a “Direct
Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof
(in any event, prior to the Expiration Date, if applicable), provided that the failure to give such prompt written notice shall
not relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party
is actually prejudiced thereby. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall
include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of
the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have thirty (30) days after its
receipt of such notice to respond in writing to such Direct Claim. If the Indemnifying Party does not so respond within such thirty
(30) day period, the Indemnifying Party shall be deemed to have accepted such claim. If the Indemnifying Party rejects such claim,
the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject
to the provisions of this Agreement.

 

    	54

    	 

    

 

Section 8.06         Payments.
 Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this ARTICLE VIII:

 

(a)          If
the Indemnifying Party is Buyer, Buyer shall satisfy its obligations within fifteen (15) Business Days of such agreement or final,
non-appealable adjudication by wire transfer of immediately available funds. The parties hereto agree that should Buyer not make
full payment of any such obligations within such fifteen (15) Business Day period, any amount payable shall accrue interest from
and including the date of agreement of Buyer or a final, non-appealable adjudication to and including the date such payment has
been made at a rate per annum equal to ten percent (10%). Such interest shall be calculated daily on the basis of a 365 day year
and the actual number of days elapsed, without compounding.

 

(b)          If
the Indemnifying Party is a Seller or Member, such indemnification obligations shall be satisfied (i) first, from the Escrow Amount
that is being held in escrow pursuant to the Escrow Agreement, (ii) second, if the indemnifiable Losses exceed such portion of
the Escrow Amount (or if no portion of the Escrow Amount is then being held in escrow) the remaining indemnifiable Losses shall
be paid by delivery to Buyer from escrow of all or a portion of the Buyer Stock purchased by HH pursuant to the Securities Purchase
Agreement, valued as set forth in Section 8.07 and (iii) lastly, if the indemnifiable Losses exceed such portion of
the Escrow Amount and the value of the Buyer Stock at the time any payment pursuant to this Section 8.06 is being made,
the remaining indemnifiable Losses shall be paid jointly and severally by Sellers and the Members.

 

(c)          On
the date that is six (6) months following the Closing Date, Buyer and Sellers shall jointly instruct the Escrow Agent, in accordance
with the Escrow Agreement, to release one-half (1/2) of the then remaining Escrow Amount from such escrow, except the Escrow Agent
shall retain an amount equal to the aggregate amount of all unsatisfied or disputed claims for Losses specified in the written
notices for Third Party Claims and/or Direct Claims delivered to Sellers as an Indemnifying Party pursuant to Section 8.05.
On the Expiration Date, Buyer and Sellers shall jointly instruct the Escrow Agent, in accordance with the Escrow Agreement, to
release the remaining funds held in such escrow, except the Escrow Agent shall retain an amount equal to the aggregate amount of
all unsatisfied or disputed claims for Losses specified in the written notices for Third Party Claims and/or Direct Claims delivered
to Sellers as an Indemnifying Party pursuant to Section 8.05. Any portion of such escrow fund retained for unresolved
claims shall be released by the Escrow Agent upon their resolution in accordance with this ARTICLE VIII and the terms
of the Escrow Agreement.

 

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Section 8.07         Valuation
of Buyer Stock. Any claim for indemnification of Losses suffered by Buyer or a Buyer Indemnitee that is to be satisfied by
delivery of shares of the Buyer Stock, shall be satisfied by the delivery to Buyer of such number of shares of Buyer’s Stock
that, multiplied by $2.29, equals the amount of the Losses.

 

Section 8.08         Tax
Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the parties
as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

Section 8.09         Effect
of Investigation. The representations, warranties and covenants of the Indemnifying Party and the Indemnified Party’s
right to indemnification with respect to breaches thereof, shall not be affected or deemed waived by (a) reason of any investigation
made by or on behalf of the Indemnified Party (including by any of its Representatives) or (b) by reason of the fact that the
Indemnified Party or any of its Representatives knew or should have known that any such representation or warranty is, was or
might be inaccurate, regardless of whether the Indemnifying Party cured any defects in any such representations and warranties
by providing any Schedule Updates (as defined in the Call Option Agreement) or (c) by reason of the Indemnified Party’s
waiver of any condition set forth in Section 7.02 or Section 7.03, as the case may be; provided,
that Sellers shall have no post-Closing liability for any breach of any representation or warranty in Article IV
if (i) Buyer had knowledge of such breach prior to the Option Exercise Date and Buyer exercised the Call Option, or (ii) Buyer
had knowledge of a Material Adverse Effect and waived the closing condition provided in Section 7.02(d).

 

Section 8.10         Exclusive
Remedies. Subject to Section 6.07 and Section 10.11, the parties acknowledge and agree that their
sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud), for any breach of any representation,
warranty, covenant, agreement or obligation set forth herein shall be pursuant to the indemnification provisions set forth in
this ARTICLE VIII. Nothing in this Section 8.10 shall limit any Person’s right to seek and obtain
any equitable relief which any Person shall be entitled or to seek any remedy on account of any party’s fraud.

 

ARTICLE IX

Termination

 

Section 9.01         Termination.
Subject to the terms of the Call Option Agreement and this Agreement may be terminated at any time prior to the Closing:

 

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

 

(b)          by
Buyer by written notice to Sellers, if: (i) if all of the conditions (except for such conditions which have been waived by Sellers
or may only be satisfied by Buyer on the Closing Date) set forth in Section 7.01 and Section 7.03 have
been satisfied, and Buyer is not then in material breach of any provision of this Agreement, and (ii) there has been a breach,
inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Sellers or Members pursuant to
this Agreement that would give rise to a failure of any of the conditions specified in Section 7.02, and such breach,
inaccuracy or failure has not been cured by Sellers or Members within forty (40) days of Sellers’ receipt of written notice
of such breach from Buyer;

 

    	56

    	 

    

 

(c)          by
Sellers by written notice to Buyer if: (i) if all of the conditions (except for such conditions which have been waived by Buyer
or may only be satisfied by Sellers or Members on the Closing Date) set forth in Section 7.01 and Section 7.02
have been satisfied, and no Seller or Member is then in material breach of any provision of this Agreement, and (ii) there has
been a breach, inaccuracy in or failure to perform any representation, warranty or agreement made by Buyer pursuant to this Agreement
that would give rise to a failure of any of the conditions specified in Section 7.03, and such breach, inaccuracy or
failure has not been cured by Buyer within forty (40) days of Buyer’s receipt of written notice of such breach from Sellers;

 

(d)          by
Buyer, or Sellers, in the event that (i) there shall be any Law that makes consummation of the transactions contemplated by this
Agreement illegal or otherwise prohibited or (ii) any Governmental Authority shall have issued a Governmental Order restraining
or enjoining the transactions contemplated by this Agreement, and such Governmental Order shall have become final and non-appealable;

 

(e)          by
Buyer, if all of the conditions (except for such conditions which have been waived by Buyer or may only be satisfied by Sellers
or Members on the Closing Date) set forth in Section 7.01 and Section 7.02 have not been satisfied by
no later than forty-five (45) days from the date hereof; or

 

(f)          by
Sellers, if all of the conditions (except for such conditions which have been waived by Seller or may only be satisfied by Buyer
on the Closing Date) set forth in Section 7.01 and Section 7.03 have not been satisfied by no later
than forty-five (45) days from the date hereof.

 

Section 9.02         Effect
of Termination. In the event of the termination of this Agreement in accordance with this Article, this Agreement shall forthwith
become void and there shall be no liability on the part of any party hereto except:

 

(a)          as
set forth in this ARTICLE IX, Section 6.06, Section 6.11 and ARTICLE X hereof;
and

 

(b)          that
nothing herein shall relieve any party hereto from liability for any willful breach of any provision hereof or fraud.

 

ARTICLE X

Miscellaneous

 

Section 10.01         Expenses.
Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial
advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring such costs and expenses, whether or not the Closing shall have occurred, except as set forth in the letter,
dated July 7, 2014, from “Nutricap LLC” to Buyer.

 

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Section 10.02         Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall
be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF
document (with confirmation of receipt by recipient) or (d) when received, if sent by certified or registered mail, return receipt
requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance with this Section 10.02):

 

	If to any Seller or Member:	 	Nutricap Labs, LLC
	 	 	70 Carolyn Blvd.
	 	 	Farmingdale, NY 11735
	 	 	Facsimile:	(800) 658-3043
	 	 	E-mail:  Jon@nutricaplabs.com
	 	 	Attention: Jonathan Greenhut
	 	 	 	 
	with a copy to (which copy shall 	 	Kramer Levin Naftalis & Frankel LLP
	not constitute notice):	 	1177 Avenue of the Americas
	 	 	New York, New York 10036
	 	 	Facsimile:	(212) 715-8453
	 	 	E-mail:	jmoriarty@kramerlevin.com
	 	 	Attention:	James J. Moriarty
	 	 	 	 
	If to Buyer:	 	Twinlab Consolidation Corporation
	 	 	632 Broadway, Suite 201
	 	 	New York, New York 10012
	 	 	Facsimile:	(212) 505-5413
	 	 	E-mail:	rneuwirth@twinlab.com
	 	 	Attention:	General Counsel
	 	 	 	 
	with a copy to (which copy shall 	 	Goodwin Procter LLP
	not constitute notice):	 	The New York Times Building
	 	 	620 Eighth Avenue
	 	 	New York, NY 10018-1405
	 	 	Facsimile:	(212) 355-3333
	 	 	E-mail:	tmeriam@goodwinprocter.com
	 	 	Attention:	Thomas C. Meriam

 

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Section 10.03         Interpretation.
For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall
be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c)
the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer
to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure
Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y)
to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and
modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an
instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed
with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

Section 10.04         Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section 10.05         Severability.
 If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction. Except as provided in Section 6.07(d), upon such determination that any
term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that
the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section 10.06         Entire
Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings
and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements
in the body of this Agreement and those in the other Transaction Documents, the Exhibits and Disclosure Schedules (other than
an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.
For the avoidance of doubt, this Agreement supersedes and replaces in its entirety that certain Asset Purchase Agreement, dated
as of December 20, 2014, by and between the parties hereto.

 

Section 10.07         Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. None of the parties may assign its rights or obligations hereunder without the prior written
consent of the other parties; provided, however, that prior to the Closing Date, Buyer may, without the prior written consent
of Sellers or the Members, assign all or any portion of its rights under this Agreement to one or more of its direct or indirect
wholly-owned subsidiaries. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

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Section 10.08         No
Third-party Beneficiaries.  Except as provided in ARTICLE VIII, this Agreement is for the sole benefit of the
parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or
shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or
by reason of this Agreement.

 

Section 10.09         Amendment
and Modification; Waiver. This Agreement may only be amended or supplemented by an agreement in writing signed by each party
hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed
by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or
default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before
or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section 10.10         Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)          This
Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect
to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

 

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

 

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(c)          EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A)
NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE
FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY
MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.10(c).

 

Section 10.11         Specific
Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition
to any other remedy to which they are entitled at law or in equity.

 

Section 10.12         Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall
be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

Section 10.13         Effectiveness.
This Agreement shall not be considered effective until the Option Exercise Date and no party will have any obligation under this
Agreement until the Option Exercise Date; provided, however, that upon the Option Exercise Date, this Agreement, together with
the Disclosure Schedules attached hereto, dated as of the Initial Disclosure Date, shall be automatically effective without any
further action by any of the parties to this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

	 	SELLERS:
	 	 
	 	NUTRICAP LABS, LLC
	 	 	 
	 	By:	/s/ Jonathan Greenhut
	 	Name: Jonathan Greenhut
	 	Title: Manager
	 	 	 
	 	VITACAP LABS, LLC
	 	 	 
	 	By:	/s/ Jonathan Greenhut
	 	Name: Jonathan Greenhut
	 	Title: Manager
	 	 
	 	MEMBERS:
	 	 
	 	CANYON MARKETING V, LLC
	 	 	 
	 	By:	/s/ Jonathan Greenhut
	 	Name: Jonathan Greenhut
	 	Title: Manager
	 	 
	 	CANYON MARKETING III, LLC
	 	 	 
	 	By:	/s/ Jonathan Greenhut
	 	Name: Jonathan Greenhut
	 	Title: Manager
	 	 
	 	CANYON MARKETING II, INC.
	 	 	 
	 	By:	/s/ Jonathan Greenhut
	 	Name: Jonathan Greenhut
	 	Title: President

 

[Signature Page to Asset Purchase Agreement]

 

    	 

    	 

    

 

	 	BUYER:
	 	 
	 	TCC CM SUBCO I, INC.
	 	 	 
	 	By:	/s/ Richard H. Neuwirth
	 	Name: Richard H. Neuwirth
	 	Title: Executive Vice President, Chief Legal Officer and Secretary

 

For good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and with the understanding that Buyer is relying hereon in entering into the above Asset Purchase
Agreement, the undersigned, being a direct or indirect owner of the Members, hereby agrees to be personally bound by those same
restrictions Sellers and Members are bound by in Section 6.03, Section 6.07 and Section 6.06. For
the avoidance of doubt neither the undersigned nor any trusts or other entities established by the undersigned, for estate planning
purposes, shall have any personal Liability other than (i) as set forth in the preceding sentence and (ii) fraud.

 

	 	/s/ Jonathan Greenhut
	 	Jonathan Greenhut

 

[Signature Page to Asset Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

Form of Escrow Agreement

 

(attached)

 

    	 

    	 

    

 

EXHIBIT B

 

Excluded Liabilities to be Satisfied at Closing

 

The Senior Debt.

 

    	 

    	 

    

 

EXHIBIT C

 

Form of Transition Services Agreement

 

(attached)

 

    	 

    	 

    

 

EXHIBIT D

 

Form of Bill of Sale

 

(attached)

 

    	 

    	 

    

 

EXHIBIT E

 

Form of Assignment and Assumption Agreement

 

(attached)

 

    	 

    	 

    

 

EXHIBIT F

 

Form of License Agreement

 

(attached)

 

    	 

    	 

    

 

EXHIBIT G

 

Form of First Promissory Note

 

(attached)

 

    	 

    	 

    

 

EXHIBIT H

 

Form of Second Promissory Note

 

(attached)Exhibit 10.50

 

EXECUTION VERSION

 

THIS INSTRUMENT IS SUBJECT TO THE TERMS
OF A STANDSTILL AGREEMENT DATED AS OF FEBRUARY 4, 2015 AMONG HOLDER, MAKER AND MIDCAP FUNDING X TRUST, A DELAWARE STATUTORY TRUST,
ADMINISTRATIVE AGENT, WHICH STANDSTILL AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.

 

THIS INSTRUMENT IS SUBJECT TO THE TERMS
OF A STANDSTILL AGREEMENT DATED AS OF FEBRUARY 4, 2015 AMONG HOLDER, MAKER AND PENTA MEZZANINE SBIC FUND I, L.P., A DELAWARE LIMITED
PARTNERSHIP, WHICH STANDSTILL AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.

 

THIS INSTRUMENT IS SUBJECT TO THE TERMS
OF A STANDSTILL AGREEMENT DATED AS OF FEBRUARY 4, 2015 AMONG HOLDER, MAKER AND JL-BBNC MEZZ UTAH, LLC, AN ALASKA LIMITED LIABILITY
COMPANY, WHICH STANDSTILL AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE HAS
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, MORTGAGED, PLEDGED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR AN EXEMPTION
THEREFROM.

 

UNSECURED PROMISSORY NOTE

 

	$2,500,000.00	February 6, 2015

 

FOR VALUE RECEIVED, the
undersigned, TCC CM SUBCO I, INC., a Delaware corporation (“Maker”), promises to pay to NUTRICAP LABS, LLC,
a New York limited liability company (“Holder”), the principal sum of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($2,500,000.00), together with interest on the unpaid principal balance of this Unsecured Promissory Note (this “Note”)
from time to time outstanding until paid in full, in lawful money of the United States of America. This Note shall mature and be
due and payable by Maker on the earlier to occur of (x) the sixty (60) day anniversary of the date hereof and (y) one (1) Business
Day following the funding of Additional Financing (as defined in the Purchase Agreement) (such earlier date, the “Maturity
Date”) or, if such day is not a Business Day, then the next succeeding Business Day.

 

This Note is the “First
Promissory Note” referenced in that certain Asset Purchase Agreement (as amended, restated, modified or supplemented from
time to time, the “Purchase Agreement”), dated February 4, 2015 and effective as of the Option Exercise Date
(as defined in the Purchase Agreement), among Maker, Holder, Vitacap Labs, LLC, a New York limited liability company, Canyon Marketing
V, LLC, a Delaware limited liability company, Canyon Marketing II, INC., a New York corporation, and Canyon Marketing III, LLC,
a Delaware limited liability company. Holder is receiving this Note pursuant to the Purchase Agreement and as part of the consideration
for the sale and transfer of assets of Holder to Maker.

 

    	 

    	 

    

 

ARTICLE
I

TERMS AND CONDITIONS

 

1.01        Payment
of Principal and Accrued Interest. 

 

a.           Interest
shall accrue on the outstanding principal amount of this Note at six percent (6%) per annum (the “Interest Rate”).
Interest shall be computed hereunder based on a 360-day year. Interest shall be payable, in arrears, from time to time, as provided
below.

 

b.           The
principal amount of this Note and accrued interest hereunder (the sum of such principal and accrued interest being hereinafter
referred to as the “Amount Due”) shall be payable on the Maturity Date in accordance with Section 6.17 of the
Purchase Agreement. Upon the occurrence of any Event of Default (as defined below), the Amount Due shall be payable in a single
payment on demand.

 

1.02        Prepayment.

 

a.           The
principal indebtedness evidenced by this Note may be prepaid, in whole or in part, at any time and from time to time, together
with accrued and unpaid interest to the date of such prepayment on the amount so prepaid, without premium or penalty. Any partial
prepayment of principal made after the Maturity Date shall be applied as follows: first, to the payment of accrued interest; and
second, to the payment of principal.

 

b.           Upon
any partial prepayment, at the request of either Maker or Holder, this Note shall be surrendered to Maker in exchange for a substitute
note, which shall set forth the revised principal amount. In the event that this Note is prepaid in its entirety, this Note shall
be surrendered to Maker for cancellation as a condition to any such prepayment.

 

1.03         Payments
Only on Business Days. Payments hereunder shall be made only on a Business Day. Any payment hereunder which, but for this
Section 1.03, would be payable on a day which is not a Business Day, shall instead be due and payable on the next succeeding
Business Day.

 

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ARTICLE
II

DEFAULTS

 

2.01         Events
of Default. The following shall constitute “Events of Default” under this Note:

 

a.           failure
by Maker to make any interest payment required under this Note when the same shall become due and payable (whether at maturity,
by acceleration or otherwise) and the continuation of such failure for a period of five (5) Business Days following notice thereof;
or

 

b.           failure
by Maker to make any payments of principal required under this Note when the same shall become due and payable (whether at maturity,
by acceleration or otherwise) and the continuation of such failure for a period of five (5) Business Days following notice thereof;
or

 

c.           Maker,
pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case or proceeding; (ii) consents to the entry
of an order for relief against it in an involuntary case or proceeding; (iii) consents to the appointment of a custodian of it
or for all or any substantial portion of its property or assets; or (iv) makes a general assignment for the benefit of its creditors;
or

 

d.           an
involuntary case or proceeding is commenced against Maker under any Bankruptcy Law and is not dismissed, bonded or discharged within
sixty (60) days thereafter, or a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is
for relief against Maker in an involuntary case or proceeding; (ii) appoints a custodian of Maker or for all or substantially all
of its properties; or (iii) orders the liquidation of Maker; and in each case the order or decree remains unstayed and in effect
for sixty (60) days.

 

If an Event of Default
occurs, the Interest Rate shall equal fifteen percent (15%) per annum from and after the date of such Event of Default until the
date upon which this Note is repaid in full. If an Event of Default occurs, Holder may, at its option, declare, by notice in writing
to Maker (the “Acceleration Notice”), the entire principal amount of this Note (and any accrued and unpaid interest
thereon) to be immediately due and payable and upon any such declaration such principal and interest shall become and be forthwith
due and payable without any further notice, presentment, protest, or demand of any kind, all of which are hereby expressly waived
by Maker. If an Event of Default specified in Sections 2.01(c) or 2.01(d) hereof occurs, the principal amount of
this Note (and any accrued and unpaid interest thereon) shall become due and payable immediately without any declaration or other
act on the part of Holder. If any Event of Default shall have occurred, Holder may proceed to protect and enforce its rights either
by suit in equity or by action at law, or both, whether for specific performance of any provision of this Note or in aid of the
exercise of any power granted to Holder under this Note.

 

2.02         Late
Payment Fee. If the Amount Due is not paid in full on or before the Maturity Date, Maker agrees to immediately pay to Holder
a late payment fee of TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000.00).

 

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ARTICLE
III

MISCELLANEOUS

 

3.01         No
Waiver: Amendment. Maker hereby waives presentment, demand for payment, notice of dishonor, notice of protest and all other
notices or demands in connection with the delivery, acceptance, performance or default of this Note. No delay by Holder in exercising
any power or right hereunder shall operate as a waiver of any power or right, nor shall any single or partial exercise of any power
or right preclude other or further exercise thereof, or the exercise of any other power or right hereunder or otherwise; and no
waiver whatsoever or modification of the terms hereof, including but not limited to an extension of the time for the payment of
this Note or any installment due hereunder, shall be valid unless set forth in writing by Holder. This Note may not be changed
orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or
discharge is sought. No modifications or amendments made by agreement with any person now or hereafter liable for the payment of
this Note shall operate to release, discharge, modify, change or affect the liability of Maker under this Note, either in whole
or in part unless Holder agrees otherwise in writing.

 

3.02         Limit
of Validity. The provisions of this Note are hereby expressly limited so that in no contingency or event whatsoever, whether
by reason of demand or acceleration of the maturity of this Note or otherwise, shall the amount paid, or agreed to be paid to Holder
for the use, forbearance or retention of money under this Note (“Interest”) exceed the maximum amount permissible
under applicable law. If, from any circumstance whatsoever, performance or fulfillment of any provision hereof or of any agreement
between Maker and Holder shall, at the time performance or fulfillment of such provision shall be due, exceed the limit for Interest
prescribed by law or otherwise transcend the limit of validity prescribed by applicable law, then ipso facto the obligation to
be performed or fulfilled shall be reduced to such limit and if, from any circumstance whatsoever, Holder shall ever receive anything
of value deemed Interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive Interest shall
be applied to the reduction of the principal amount owing under this Note (whether or not then due) or at the option of Holder
be paid over to Maker, and not to the payment of Interest. All Interest (including any amounts or payments deemed to be Interest)
paid or agreed to be paid to Holder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread
throughout the full period until payment in full of the principal amount of this Note so that the Interest thereof for such full
period will not exceed the maximum amount permitted by applicable law.

 

3.03         Arms
Length Agreement. This Agreement has been negotiated and prepared at the mutual request, direction and construction of
Holder and Maker, at arms length, with the advice and participation of counsel, and will be interpreted in accordance with its
terms without favor to any party.

 

3.04         Governing
Law. This Note shall be interpreted, construed and enforced according to the substantive laws of the State of New York,
without giving effect to principles of conflicts of law.

 

3.05         Judicial
Proceedings. All judicial proceedings brought against Maker arising out of or relating to this Note may be brought in the
Federal courts of the United States of America or the courts of the State of New York, in each case, located in the City of New
York and County of New York, and by execution and delivery of this Note, Maker accepts for itself and in connection with its properties,
generally and unconditionally, the nonexclusive jurisdiction of the aforesaid courts and waives any defense of forum non conveniens
and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Note. Maker hereby agrees that service
of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested,
to Maker at its address set forth in Section 3.06, such service being hereby acknowledged by Maker to be sufficient for
personal jurisdiction in any action against Maker in any such court and to be otherwise effective and binding service in every
respect. Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit the right of
Holder to bring proceedings against Maker in the courts of any other jurisdiction.

 

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3.06         Notices.
Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made
by hand delivery, electronic mail or registered or certified mail, postage prepaid, return receipt requested, in accordance with
the Purchase Agreement.

 

3.07         Assignment
and Transfer; Covenant. Neither this Note nor any interest herein shall be assigned, transferred, pledged or otherwise
disposed of, through liquidation or otherwise (any of the foregoing, a “Transfer”), in whole or in part, by
Holder. Neither this Note nor any interest herein or obligation hereunder shall be Transferred, in whole or in part, by Maker without
the express prior written consent of Holder.

 

3.08         Replacement
of Notes. Upon receipt by Maker of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note,
and (in case of loss, theft or destruction) of an indemnity reasonably satisfactory to it, and upon surrender and cancellation
of this Note, if mutilated, Maker will deliver a new Note, or like tenor in lieu of this Note, payable to Holder, in the same principal
amount as the unpaid principal amount of this Note and bearing interest at the same Interest Rate as this Note. Any Note delivered
in accordance with the provisions of this Section 3.08 shall be dated as of the date of this Note.

 

3.09         Successors
and Assigns. The respective rights and obligations of Maker and Holder shall be binding upon and inure to the benefit of
their respective heirs, executors, administrators, successors and permitted assigns.

 

3.10         Collection
Costs. If any amount due under this Note is not paid at the earlier of (i) the due date hereunder or (ii) at acceleration
of maturity as herein provided and is placed in the hands of an attorney for collection, or if it is collected through bankruptcy,
probate or other court after maturity or the acceleration thereof, Maker shall pay all reasonable attorneys’ fees and collection
costs of Holder incurred with respect to the collection of amounts due under this Note promptly on the demand of Holder.

 

3.11         Definitions.
The following terms have the following meanings:

 

“Acceleration
Notice” shall have the meaning set forth in Section 2.01.

 

“Bankruptcy
Law” means Title 11, United States Code, or any similar federal, state or foreign law for the relief of debtors or any
arrangement, reorganization, assignment for the benefit of creditors or any other marshalling of the assets and liabilities of
Maker.

 

“Business Day”
means each day other than Saturdays, Sundays and days when commercial banks are authorized or required by law to be closed for
business in New York, New York.

 

“Events of Default”
shall have the meaning set forth in Section 2.01.

 

“Holder”
shall have the meaning set forth in the Preamble.

 

    	5

    	 

    

 

“Interest”
shall have the meaning set forth in Section 3.02.

 

“Interest Rate”
shall have the meaning set forth in Section 1.01(a).

 

“Maker”
shall have the meaning set forth in the Preamble.

 

“Maturity Date”
shall have the meaning set forth in the Preamble.

 

“Obligations”
means all principal, interest, premium, penalties, fees, indemnities, damages and other liabilities and obligations payable under
the documentation governing, or with respect to, indebtedness for borrowed money (including all interest after the commencement
of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided in the governing documentation, whether
or not such interest is an allowed claim in such proceeding).

 

“Purchase Agreement”
shall have the meaning set forth in the Preamble.

 

“Transfer”
has the meaning set forth in Section 3.07.

 

[SIGNATURE PAGE FOLLOWS]

 

    	6

    	 

    

 

IN WITNESS WHEREOF, Maker has executed this
Note as of the date first above written.

 

	 	TCC CM SUBCO I, INC.
	 	 	 
	 	By:	/s/ Richard H. Neuwirth
	 	 	Name: Richard H. Neuwirth
	 	 	Title: Executive Vice President, Chief Legal Officer and Secretary

 

[First Unsecured Promissory Note]

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