Document:

Exhibit 10.12

  

TRANSITION
SERVICES AGREEMENT

 

This
TRANSITION SERVICES AGREEMENT (this “Agreement”) is made as of [__], 2018 by and between Inpixon, a Nevada corporation
(“Parent”) and Sysorex, Inc., a Nevada corporation (“Company”), each of which is sometimes referred to
as a “party” and collectively as the “parties.”

 

WHEREAS,
Parent and Company have entered into a Separation and Distribution Agreement dated as of August 7, 2018 (the “Separation
Agreement”) which contemplates (i) the separation of the Company (the “Separation”) and (ii) the distribution
to Parent’s stockholders of all of the outstanding Parent Shares and Other Parent Securities, each as defined in the Separation
Agreement (the “Distribution”); and

 

WHEREAS,
in order to ensure an orderly transition under the Separation Agreement it will be necessary for Parent to provide to Company,
or for Company to provide to Parent, the services described herein during the term of this Agreement.

 

NOW,
THEREFORE, in consideration of the above premises and the mutual covenants contained herein, it is agreed by and between the parties
as follows:

 

ARTICLE
I

 

FEES
AND TERM

 

1.1 Company
Price/Payment. Following the Separation and Distribution, as consideration for the services to be provided to Company by Parent
pursuant to Section 2.1 of this Agreement, Company shall pay to Parent a fee (the “Company Services Fee”) in accordance
with Schedule 2.1. The Company Services Fee shall be payable by Company to Parent in arrears 15 days after the close of each month
(prorated for any partial month) during the term of this Agreement. Any services provided by Parent to Company beyond the services
covered by the Company Services Fee shall be billed to Company at negotiated rates, no less favorable to the Company than if Company
had received the service from an independent third party, or on such other basis as the parties may agree from time to time. The
Company Services Fee shall be reviewed and reduced from time to time in accordance with Section 2.3.

 

1.2 Parent
Price/Payment. Following the Separation and Distribution, as consideration for the services to be provided to Parent by Company
pursuant to Section 3.1 of this Agreement, Parent shall pay to Company a fee (the “Parent Services Fee”) in accordance
with Schedule 3.1. The Parent Services Fee shall be payable by Parent to Company in arrears 15 days after the close of each month
(prorated for any partial month) during the term of this Agreement. Any services provided by Company to Parent beyond the services
covered by the Parent Services Fee shall be billed to Parent at negotiated rates, no less favorable to the Parent than if Parent
had received the service from an independent third party, or on such other basis as the parties may agree from time to time. The
Parent Services Fee shall be reviewed and reduced from time to time in accordance with Section 3.3.

  

     

     

    

 

1.3 Term.
The term of this Agreement (the “Term”) shall commence on the date hereof and shall expire one year after the effective
date of the Distribution; provided, however, that either party shall have the right to terminate any or all of the services such
party is to receive hereunder and cease paying the services fee associated with the terminated services which such party would
otherwise be required to pay therefor upon 30 days written notice to the other party, and provided, further, that at the end of
the one-year term, if the parties have not terminated this Agreement earlier, either party may renew or extend the term of this
Agreement with respect to the provision of any services that have not been terminated in exchange for services fees mutually agreed
to by the parties.

 

1.4 Additional
Services. At any time during the Term, if either party identifies any service that is needed to assure a smooth and orderly transition
of the businesses and operations in connection with the Separation and the Distribution, and that is not otherwise governed by
the provisions of this Agreement, the Separation Agreement or any other agreement between the parties, then the parties shall
cooperate in determining whether there is a mutually acceptable arm’s-length basis on which one party will provide such
service to the other party in exchange for a fee.

 

ARTICLE
II

 

SERVICES
TO BE PROVIDED BY PARENT TO COMPANY

 

2.1 Services.
Parent agrees to provide the services set forth on Schedule 2.1 (subject to such modification or adjustment as may be mutually
agreed upon by the parties) to Company during the Term.

 

2.2 Details
of Performance. Reasonable details of Parent’s performance of services hereunder may be specified in one or more memoranda
signed by the parties and such memoranda shall be deemed incorporated in this Agreement by reference as if recited herein in their
entirety.

 

2.3 Phase
Out of Services; Reduction of Company Services Fee. The parties hereby acknowledge that Company will promptly take all steps to
internalize the services to be provided herein by acquiring its own staff or outsourcing to third parties. The parties agree to
periodically review the level of services being utilized by Company, and from time to time to reduce the Company Services Fee
proportionately to account for reductions in the level of services being provided hereunder.

  

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ARTICLE
III

 

SERVICES
TO BE PROVIDED BY COMPANY TO PARENT

 

3.1 Services.
Company agrees to provide the services set forth on Schedule 3.1 (subject to such modification or adjustment as may be mutually
agreed upon by the parties) to Parent during the Term.

 

3.2 Details
of Performance. Reasonable details of Company’s performance of services hereunder may be specified in one or more memoranda
signed by the parties and such memoranda shall be deemed incorporated in this Agreement by reference as if recited herein in their
entirety.

 

3.3 Phase
Out of Services; Reduction of Parent Services Fees. The parties hereby acknowledge that Parent will promptly take all steps to
internalize the services to be provided herein by acquiring its own staff or outsourcing to third parties. The parties agree to
periodically review the level of services being utilized by Parent, and from time to time to reduce the Parent Services Fee proportionately
to account for reductions in the level of services being provided hereunder.

 

ARTICLE
IV

 

MISCELLANEOUS

 

4.1 Confidentiality.
Neither party hereto shall use or disclose to any other person at any time, any confidential or proprietary information or trade
secrets of the other party, including, without limitation, its customer lists, programs, pricing and strategies except to those
of its employees and those other persons who need to know such information to fulfill such party’s obligations hereunder,
provided that such party shall require that such other persons agree to keep confidential such confidential or proprietary information
or trade secrets. Both parties shall provide to the other party semi-annually upon such other party’s written request, a
list of all employees whose duties have required access to confidential or proprietary information or trade secrets, and any other
employees or other persons who, to the actual knowledge of that party’s officers, have had access to such information during
the preceding 6 month period, in each case, designating whether such persons are in the employ of such party as of the date such
list is provided. Both parties agree that all drawings, specifications, data, memoranda, calculations, notes and other materials,
including, without limitation, any materials containing confidential or proprietary information or trade secrets of the other
party, furnished in connection with this Agreement and any copies thereof are and shall remain the sole and exclusive property
of that other party and shall be delivered to that party upon its request.

 

4.2 No
Agency. Both parties shall perform their respective services under this Agreement as an independent contractor. Each party acknowledges
and agrees that it is not granted any express or implied authority to assume or create any obligation or responsibility on behalf
of the other party, or to bind the other party with regard to third parties in any manner.

 

4.3 Notices.
Any notices required or permitted to be provided pursuant to this Agreement shall be provided in writing via e-mail, certified
mail, hand-delivery, telecopier with confirmation or normal mail service, addressed to the recipient party at its e-mail or standard
mailing address set forth on the signature page.

  

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4.4 Force
Majeure. In the event that either party is prevented from performing, or is unable to perform, any of its obligations under this
Agreement due to any act of God, fire, casualty, flood, war, strike, lock out, failure of public utilities, injunction or any
act, exercise, assertion or requirement of governmental authority, epidemic, destruction of production facilities, insurrection,
inability to procure materials, labor, equipment, transportation or energy sufficient to meet manufacturing needs, or any other
cause beyond the reasonable control of the party invoking this provision, and if such party shall have used its best efforts to
avoid such occurrence and minimize its duration and has given prompt written notice to the other party, then the affected party’s
performance for the period of delay or inability to perform due to such occurrence shall be suspended. Should either party fail
to perform hereunder and shall have provided proper notice to the other party that it is unable to perform on account of one or
more reasons set forth in this section, such party may obtain replacement services from a third party for the duration of such
delay or inability to perform, or for such longer period as such party shall be reasonably required to commit to in order to obtain
such replacement services and the services fee payable by such party shall be reduced accordingly.

 

ARTICLE
V

 

GENERAL
PROVISIONS

 

5.1 Entire
Agreement. This Agreement embodies the entire agreement and understanding of the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings relative to said subject matter.

 

5.2 Binding
Effect. This Agreement shall be binding upon, and shall inure to the benefit of Parent, Company and their respective successors
and assigns.

 

5.3 Assignment.
Neither this Agreement nor any rights or obligations hereunder shall be assignable by either party without the prior written consent
of the other party hereto, which consent shall not be unreasonably withheld.

 

5.4 Governing
Law. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada applicable to contracts
to be performed entirely in that State.

 

5.5 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

 

5.6
Headings. The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

(Signatures
Appear On Next Page)

  

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IN
WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the date first above written.

  

	 	PARENT
	 	 
	 	Inpixon
	 	 
	 	By:	 
	 	 	Nadir Ali, Chief Executive Officer
	 	 	Address: c/o Inpixon
	 	 	2479 E. Bayshore Road
	 	 	Suite 195
	 	 	Palo Alto, California 94303
	 	 	E-Mail: nadir.ali@inpixon.com
	 	 
	 	COMPANY
	 	 
	 	Sysorex, Inc.
	 	 
	 	By:	 
	 	 	Zaman Khan, President
	 	 
	 	 	Address prior to the Distribution:
	 	 	Sysorex, Inc.
	 	 	2479 E. Bayshore Road, Suite 195
	 	 	Palo Alto, California 94303
	 	 	Attn.: Zaman Khan, President
	 	 
	 	 	Address following the Distribution:
	 	 	Sysorex, Inc.
	 	 	2355 Dulles Corner Boulevard
	 	 	Suite 600
	 	 	Herndon, Virginia 20171
	 	 	E-Mail:

  

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Schedule
2.1

 

Parent
Services

 

Active
Directory (authentication, access control, audit control, security) - $180/month

O365
E3 Licenses (email, office, sharepoint) - $600/month

Quotewerks,
RDP, GP, UNANET servers - $1,400/month

Helpdesk/support
- $1,500/month

 

Approximate
total - $3,680/month

  

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Schedule
3.1

 

Company
Services

 

To
be mutually agreed upon by Parent and the Company prior to the Separation and Distribution or from time-to-time thereafter during
the Term. At such time, this Schedule may be amended by the parties.

  

    	 	7Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (this “Agreement”),
dated as of August 8, 2018, is by and among (i) Virterras Materials US LLC, a Delaware limited liability company (“Buyer”),
Sable Polymer Solutions, LLC, an Arkansas limited liability company (“Seller”),
(iii) Pioneer Products, LLC, an Arkansas limited liability company (“Pioneer”),
(iv) Ecoark Inc., a Delaware corporation (“Ecoark”),
and (v) Ecoark Holdings, Inc., a Nevada corporation (“Ecoark
Holdings” and together with Pioneer and Ecoark, the “Parent
Companies”).

 

RECITALS

 

WHEREAS,
Seller is a compounder of recycled plastic (the “Business”),
and operates a recycling plant located at 4350 Avery Drive in Flowery Branch, Georgia (the “Plant”);
and

 

WHEREAS,
Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, substantially all of the assets of the Business, subject
to the terms and conditions set forth herein.

 

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

 

ARTICLE
I PURCHASE AND SALE

 

Section
1.01 Purchase and Sale of Assets. Subject to the terms and conditions set forth herein, Seller shall sell, assign, transfer,
convey and deliver to Buyer, and Buyer shall purchase from Seller, free and clear of any mortgage, pledge, lien charge, security
interest, claim or other encumbrance (“Encumbrance”),
all of Seller’s right, title and interest in, to and under all of the assets, properties and rights of every kind and nature,
whether real, personal or mixed, tangible or intangible (including goodwill), wherever located and whether now existing or hereafter
acquired (other than the Excluded Assets), which relate to, or are used or held for use in connection with, the Business (the “Purchased
Assets”), including, without limitation, the following:

 

(a) 
all Purchased Inventory (as determined pursuant to Section
1.05(b));

 

(b) 
all furniture, fixtures, equipment, machinery, tools, vehicles, office equipment, supplies,
computers, telephones and other tangible personal property;

 

(c) 
all leasehold interests in the real property leased by Seller pursuant to that certain Lease
Agreement dated June 26, 2015, by and between Seller and DP 101, LLC, as successor in interest to AD Capital Partners, LLC (as
amended prior to the date hereof, the “Lease”),
and all interests of Seller in and to leasehold improvements relating thereto, including, but not limited to, security deposits,
reserves or prepaid rents paid in connection therewith (provided, however, that prepaid rent shall be prorated between Seller and
Buyer as of the Closing Date);

 

(d) 
the purchase orders, contracts and other agreements set forth on Schedule
1.01(d) (the “Assigned Contracts”);

 

(e) 
all of Seller’s rights under warranties, indemnities and all similar rights against
third parties to the extent related to any Purchased Assets;

 

     

     

    

 

(f) all
prepaid expenses, credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of
recoupment, deposits (including without limitation deposits for utilities at the Plant), charges, sums and fees (including
without limitation any such item relating to the payment of taxes) to the extent related to any Purchased Assets;

 

(g) all
URLs, copyrights, trade secrets, product formulations and other intellectual property and industrial property rights and
assets, and all rights, interests and protections that are associated with, similar to, or required for the exercise of, any
of the foregoing, however arising, pursuant to the laws of any jurisdiction throughout the world, whether registered or
unregistered, in each case, that is owned or licensed by Seller and used in or necessary for the conduct of the Business
as currently conducted (the “Purchased
IP”);

 

(h) all
transferable permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar
rights obtained, or required to be obtained, from governmental authorities, which are held by Seller and required for the
conduct of the Business as currently conducted or for the ownership and use of the Purchased Assets (the “Transferred
Permits”);

 

(i) all
rights to claims, actions, suits, proceedings or governmental investigations (collectively, “Actions”)
of any nature available to or being pursued by Seller to the extent related to the Purchased Assets or the Assumed
Liabilities, whether arising by way of counterclaim or otherwise to the extent related to any Purchased Assets;

 

(j)
all insurance benefits, including rights and proceeds, arising from or relating to the Purchased Assets or the Assumed
Liabilities;

 

(k)
originals, or where not available, copies, of all books and records, including, but not limited to, books of account, samples
and testing records from previously-produced products, ledgers and general, financial and accounting records, machinery and
equipment maintenance files, customer lists, customer purchasing histories, price lists, distribution lists, supplier lists,
production data, quality control records and procedures, customer complaints and inquiry files, research and development
files, records and data (including all correspondence with any governmental authority), sales material and records (including
pricing history, total sales, terms and conditions of sale, sales and pricing policies and practices), strategic plans,
internal financial statements, marketing and promotional surveys, material and research and files relating to the Purchased
Assets (collectively, “Books and
Records”); provided, however, the Seller shall retain all originals of records and documentation related
to the Excluded Assets and all liabilities other than the Assumed Liabilities; and

 

(l)
all goodwill and the going concern value of the Business.

 

Section
1.02 Excluded Assets. Notwithstanding the foregoing, the Purchased Assets shall not include the following assets (collectively,
the “Excluded Assets”):

 

(a) 
cash and cash equivalents;

 

(b) 
all accounts, notes or other amounts receivable held by Seller, and any security, claim, remedy
or other right related to any of the foregoing;

 

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(c) 
all purchase orders, contracts and other agreements that are not Assigned Contracts;

 

(d) 
the corporate seals, organizational documents, minute books, stock books, tax returns, books
of account or other records having to do with the corporate organization of Seller;

 

(e) 
all pension, benefit, retirement, compensation, employment, consulting, profit-sharing, deferred
compensation, incentive, bonus, performance award, phantom equity, stock or stock-based, change in control, retention, severance,
vacation, paid time off, welfare, fringe-benefit and other similar agreements, plans, policies, programs or arrangements (and any
amendments thereto), and assets attributable thereto; and

 

(f)  
all Excluded Inventory (as determined pursuant to Section
1.05(b)).

 

Section
1.03Assumed Liabilities. Subject to the terms and conditionsset forth herein,

Buyer
shall assume and agree to pay, perform and discharge only the following liabilities of Seller (collectively, the “Assumed
Liabilities”), and no other liabilities:

 

(a) 
all obligations and liabilities solely related to the Purchased Assets but only to the extent
that such obligations and liabilities accrue on or after the Closing Date and do not relate to any failure to perform, improper
performance, warranty or other breach, default, violation or other action or inaction by Seller prior to the Closing; and

 

(b) 
accounts payable with respect to inventory ordered by Seller prior to the Closing Date and
title not received on or before the Closing Date, provided that such inventory is consistent with inventory levels for the Business
prior to the Closing as described in Section
1.05(b) hereof. Between the date hereof and the Closing, Seller agrees to keep Buyer reasonably informed with respect
to inventory purchases and expected and actual delivery dates.

 

Section
1.04Excluded Liabilities. Notwithstanding
the provisions of Section 1.03 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 Seller or any of its affiliates (including the Parent
Companies) of any kind or nature whatsoever other than the Assumed Liabilities (the “Excluded
Liabilities”). Without limiting the generality of the foregoing, the Excluded
Liabilities shall include, but not be limited to, (a) trade accounts payable of Seller, (b) any liabilities relating to or arising
out of the Excluded Assets, (c) any liabilities of Seller for any present or former employees, officers, directors, retirees, independent
contractors or consultants of Seller, including, without limitation, any liabilities associated with any claims for wages or other
benefits, bonuses, accrued vacation, workers’ compensation, severance, retention, termination or other payments, and (d)
any liabilities under Environmental Laws (as defined in Section
3.11(a))

 

Section
1.05 Purchase Price and Inventory Adjustment

 

(a)
The aggregate purchase price for the Purchased Assets shall be $1,500,000, subject to adjustment pursuant to Section
1.05(b) hereof (the “Purchase
Price”), plus the assumption of the Assumed Liabilities. The Purchase Price
shall be paid by Buyer to Seller at the Closing in cash, by wire transfer of immediately available funds in accordance with wire
transfer instructions given by Seller to Buyer.

 

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(b)
For the one day preceding the Closing Date (or such shorter period as is necessary to complete the physical count and review
hereinafter described), the Business operations shall be closed for a physical count and review of Seller’s inventory,
finished goods, raw materials, work in progress, packaging, supplies, parts and other inventories (collectively, “Inventory”).
Buyer shall perform at the Plant a detailed inventory count and assessment of the amount of useable and saleable Inventory
owned by Seller. All Inventory that Buyer, in its reasonable discretion, determines is not in useable and/or saleable
condition is referred to in this Agreement as “Excluded
Inventory” and all Inventory other than Excluded Inventory is referred to in this Agreement as “Purchased
Inventory”. At or prior to the Closing, Buyer shall provide Seller written notice setting forth which items
of Inventory are Purchased Inventory and which items of Inventory are Excluded Inventory. Buyer and Seller shall establish a
daily use rate for Inventory. If the Purchased Inventory is less than 30
days for Inventory based on such established daily use rate, then the Purchase Price shall be decreased to account
for such deficit. If the Purchased Inventory is greater than 30
days for Inventory based on such established daily use rate, then the Purchase Price shall be increased to account
for such surplus. Buyer and Seller shall reconcile any Purchase Price adjustment based on the average unit cost for the
applicable Inventory over the lesser of (i) the last three orders or (ii) the 90 days preceding the Closing Date.

 

Section
1.06 Allocation of Purchase Price. Seller and Buyer agree to allocate the Purchase Price among the Purchased Assets
for all purposes (including tax and financial accounting) as agreed by their respective accountants, negotiating in good faith
on their behalf. Buyer and Seller shall file all tax returns (including amended returns and claims for refund) and information
reports in a manner consistent with such allocation.

 

ARTICLE
II CLOSING

 

Section
2.01 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall, subject to the satisfaction or waiver in writing of all of the conditions set forth in Article
VI, occur by electronic delivery of documentation, or by physical exchange of documentation at such location as Seller
and Buyer may mutually agree at 10:00 a.m., Eastern Time, on the second business day following the first date upon which all of
the conditions set forth in Article VI have
been satisfied or waived in writing (other than those conditions that by their nature are to be fulfilled at the Closing, but subject
to the fulfillment or waiver of such conditions), or at such other time, or by such other means, as the parties may agree in writing.
The date on which the Closing occurs is referred to herein as the “Closing
Date”. The Closing shall for all purposes be deemed effective at 12:01 a.m., Eastern Time, on the Closing Date,
and shall occur no later than August 31, 2018.

 

(a) 
At the Closing, Seller shall deliver to Buyer the following:

 

(i) a
bill of sale in form and content satisfactory to Seller and Buyer, transferring the Purchased Inventory and other tangible
personal property included in the Purchased Assets to Buyer;

 

(ii) an
assignment and assumption agreement in form and content satisfactory to Seller and Buyer (the “Assignment
and Assumption Agreement”) duly executed by Seller, effecting the assignment to and assumption by Buyer of
the Purchased Assets and the Assumed Liabilities;

 

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(iii) an
assignment and assumption of lease in form and content satisfactory to Seller and Buyer (the “Lease
Assignment and Release”) duly executed by Seller, effecting the assignment to and assumption by Buyer of
the Lease and the landlord’s release of Seller with respect to obligations arising under the Lease after the Closing
Date;

 

(iv) a
consent, acknowledgement and/or waiver in form and content satisfactory to Buyer and Seller (the “Consent”)
duly executed by the landlord under the Lease, pursuant to which the landlord consents to the assignment of the Lease to
Buyer;

 

(v) an
estoppel certificate in form and content satisfactory to Buyer and Seller (the “Estoppel
Certificate”) duly executed by the landlord under the Lease;

 

(vi) a
transition services agreement in form and content satisfactory to Buyer and Seller (the “Transition
Services Agreement”) duly executed by Seller or the applicable Parent Company, pursuant to which Seller or
the applicable Parent Company will provide, for a mutually agreeable period after the Closing, to Buyer (A) limited use of
its NetSuite management accounting system, and (B) certain financial and accounting services; provided that neither (A) nor
(B) shall interfere with the Seller or applicable Parent Company’s business;

 

(vii) the
Books and Records related to the Purchased Assets, including, without limitation, all documents necessary for the prompt
completion of any purchase orders included as Assigned Contracts;

 

(viii) a
certificate of a duly authorized officer of Seller certifying as to (A) the resolutions of the managers, members or other
governing body of Seller, duly adopted and in effect, which authorize the execution, delivery and performance of this
Agreement and the transactions contemplated hereby, (B) the names and signatures of the officers of Seller authorized to sign
this Agreement and the documents to be delivered hereunder, and (C) the satisfaction of the conditions set forth in Section
6.01(a) and Section
6.01(b); and

 

(ix) 
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 Seller the following:

 

(i)  
the Purchase Price;

 

(ii) 
the Assignment and Assumption Agreementduly executed by

 

Buyer;

 

(iii) 
the Lease Assignment and Release duly executed by Buyer;

 

(iv) 
the Transition Services Agreement duly executed by Buyer; and

 

(v) 
a certificate of a duly authorized officer of Buyer certifying as to (A) the resolutions of
the managers, members or other governing body of Buyer, duly adopted and in effect, which authorize the execution, delivery and
performance of this Agreement and the transactions contemplated hereby, (B) the names and signatures of the officers of Buyer authorized
to sign this Agreement and the documents to be delivered hereunder, and (C) the satisfaction of the conditions set forth in Section
6.02(a) and Section 6.02(b).

 

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ARTICLE
III REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller
and the Parent Companies, jointly and severally, represent and warrant to Buyer that the statements contained in this Article
III are true and correct as of the date hereof. For purposes of this Article
III, “Seller’s knowledge,” “knowledge of Seller” and any similar phrases shall mean the
actual knowledge, without independent investigation, of any director or officer of Seller.

 

Section
3.01 Organization and Authority of Seller; Enforceability. Seller is a limited liability company duly organized, validly
existing and in good standing under the laws of the state of Arkansas. Seller has full limited liability company power and authority
to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate
the transactions contemplated hereby. The execution, delivery and performance by Seller of this Agreement and the documents to
be delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite
limited liability company action on the part of Seller. This Agreement and the documents to be delivered hereunder have been duly
executed and delivered by Seller, and (assuming due authorization, execution and delivery by Buyer) this Agreement and the documents
to be delivered hereunder constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with
their respective terms.

 

Section
3.02 No Conflicts; Consents. The execution, delivery and performance by Seller of this Agreement and the documents to
be delivered hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict
with the articles of organization, operating agreement or other organizational documents of Seller; or (b) violate or conflict
with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or the Purchased Assets. Except
as set forth on Schedule 3.02,
no consent, notice, approval, waiver or authorization is required to be obtained by Seller from any person or entity (including
any governmental authority) in connection with the execution, delivery and performance by Seller of this Agreement and the consummation
of the transactions contemplated hereby.

 

Section
3.03 No Undisclosed Liabilities. To Seller’s knowledge, the Purchased Assets are not subject to any claim, liability,
commitment, indebtedness or obligation of any kind whatsoever, whether absolute, accrued, fixed, contingent, matured or unmatured.

 

Section
3.04 Absence of Certain Changes, Events and Conditions. Since January 1, 2018, there has not been any event, occurrence
or development that has had, or could reasonably be expected to have, individually or in the aggregate, a material adverse effect
on (a) the business, results of operations, condition (financial or otherwise) or assets of the Seller, (b) the value of the Purchased
Assets, or (c) the ability of Seller to consummate the transactions contemplated hereby on a timely basis.

 

Section
3.05 Assigned Contracts. Each Assigned Contract, to Seller’s knowledge, is valid and binding on Seller in accordance
with its terms and is in full force and effect. None of Seller or, to Seller’s 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 notice of any intention
to terminate, any Assigned Contract. No event or circumstance, to Seller’s knowledge, has occurred that, with or without
notice or lapse of time or both, would constitute an event of default under any Assigned Contract 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 benefit thereunder. Complete
and correct copies of each Assigned Contract (including all modifications, amendments and supplements thereto and waivers thereunder)
have been made available to Buyer. There are no disputes pending or, to Seller’s knowledge, threatened under any Assigned
Contract. Except as disclosed in Schedule
3.02, all Assigned Contracts are assignable by Seller without consent or notification.

 

    	 	6	 

     

    

 

Section
3.06 Title to Purchased Assets. Seller has good and valid title to, or a valid leasehold interest in, the Purchased
Assets, free and clear of Encumbrances.

 

Section
3.07 Condition and Sufficiency of Assets. The tangible personal property included in the Purchased Assets are adequate
for the uses to which they are being put, and, to Seller’s knowledge, none of such tangible personal property is in need
of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost. The Purchased
Assets are all of the assets necessary for the continued conduct of the Business after the Closing in substantially the same manner
as conducted prior to the Closing, other than the Excluded Assets.

 

Section
3.08 Real Property.

 

(a) 
Seller does not own any real property.

 

(b) 
Seller has delivered to Buyer a true and complete copy of the Lease (including all modifications,
amendments and supplements thereto and waivers thereunder). The Lease is valid, binding, enforceable and in full force and effect,
and Seller enjoys peaceful and undisturbed possession of the real property leased pursuant to the Lease and all leasehold improvements
related thereto (collectively, the “Leased
Real Property”). Seller is not in breach or default under the Lease, and, to Seller’s knowledge, no event
has occurred or circumstance exists which, with the delivery of notice, passage of time or both, would constitute such a breach
or default, and Seller has paid all rent and other amounts due and payable under the Lease. Seller has not received nor given any
notice of any default or event that with notice or lapse of time, or both, would constitute a default by Seller under the Lease
and, to the knowledge of Seller, no other party is in default thereof, and no party to the Lease has exercised any termination
rights with respect thereto. Except for a sublease to RecycleNet that has been terminated, Seller has not subleased, assigned or
otherwise granted to any person or entity the right to use or occupy the Leased Real Property or any portion thereof. Seller has
not pledged, mortgaged or otherwise granted an Encumbrance on its leasehold interest in the Leased Real Property.

 

(c) 
Seller has not received any written notice of (i) violations of building codes and/or zoning
ordinances or other governmental or regulatory laws affecting the Leased Real Property, (ii) existing, pending or threatened condemnation
proceedings affecting the Leased Real Property, or (iii) existing, pending or threatened zoning, building code or other moratorium
proceedings, or similar matters which could reasonably be expected to adversely affect the ability to operate the Leased Real Property
as currently operated. Neither the whole nor any material portion of any Leased Real Property has been damaged or destroyed by
fire or other casualty.

 

    	 	7	 

     

    

 

(d) 
The Leased Real Property is sufficient for the continued conduct of the Business after the
Closing in substantially the same manner and same volume as conducted prior to the Closing.

 

Section
3.09 Intellectual Property.

 

(a) 
Schedule 3.09 lists all Purchased IP,
including, with respect to any registered Purchased IP, the jurisdiction where the application or registration is located, the
application or registration number, and the application or registration date. Seller owns or has adequate, valid and enforceable
rights to use all the Purchased IP, free and clear of all Encumbrances. Seller is not bound by any outstanding judgment, injunction,
order or decree restricting the use of the Purchased IP, or restricting the licensing thereof to any person or entity. With respect
to any registered Purchased IP, (i) all such intellectual property is valid, subsisting and in full force and effect and (ii) Seller
has paid all maintenance fees and made all filings required to maintain Seller’s ownership thereof.

 

(b) 
To Seller’s knowledge, Seller’s prior and current use of the Purchased IP has
not and does not infringe, violate, dilute or misappropriate the intellectual property of any person or entity and there are no
claims pending or threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness or
use of the Purchased IP. To Seller’s knowledge, no person or entity is infringing, misappropriating, diluting or otherwise
violating any of the Purchased IP, and neither Seller nor any affiliate of Seller has made or asserted any claim, demand or notice
against any person or entity alleging any such infringement, misappropriation, dilution or other violation.

 

Section
3.10 Compliance with Laws. Seller is now complying and, to Seller’s knowledge, Seller has complied with all applicable
federal, state and local laws and regulations applicable to ownership and use of the Purchased Assets

.

(a) 
“Environmental
Law” means any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common
law, judgment, decree, other requirement or rule of law of any governmental authority and any governmental order or binding agreement
with any governmental authority: (i) relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered
or threatened species, human health or safety, or the environment (including ambient air, soil, surface water or groundwater, or
subsurface strata); or

 

(ii) 
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, including, without limitation, (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 (collectively, “Hazardous
Materials”).

 

    	 	8	 

     

    

 

(b) 
To Seller’s knowledge. the operations of Seller with respect to the Business and the
Purchased Assets are currently and have been in compliance in all material respects with all Environmental Laws. Seller has not
received from any person or entity, with respect to the Business or the Purchased Assets, any: (i) written directive, notice of
violation or infraction, or notice relating to actual or alleged non-compliance with any Environmental Law or term or condition
of any permit required under or issued pursuant to an Environmental Law; 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
Closing Date.

 

(c) 
To Seller’s knowledge, none of the Business or the Purchased Assets is listed on, or
has been proposed for listing on, the National Priorities List (or CERCLIS) under 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. (“CERCLA”),
or any similar state list.

 

(d) 
There has been no release by Seller or to Seller’s knowledge any other person or entity
of Hazardous Materials in contravention of Environmental Law with respect to the Business or the Purchased Assets, and Seller has
not received written notice that any of the Business or the Purchased Assets (including soils, groundwater, surface water, buildings
and other structure located thereon) has been contaminated with any Hazardous Material.

 

(e) 
There are no active or, to Seller’s knowledge, abandoned aboveground or underground
storage tanks owned or operated by Seller in connection with the Business or the Purchased Assets.

 

(f)  
There are no off-site Hazardous Materials treatment, storage, or disposal facilities or locations
used by Seller or, to Seller’s knowledge, and any predecessors in connection with the Business or the Purchased Assets as
to which Seller 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 Seller has not received any written notice regarding potential liabilities with respect to such off-site Hazardous
Materials treatment, storage, or disposal facilities or locations used by Seller.

 

(g) 
To Seller’s knowledge, Seller has not retained or assumed, by contract or operation
of law, any liabilities or obligations of third parties under Environmental Law.

 

(h) 
Seller has provided or otherwise made available to Buyer any and all environmental reports,
studies, audits, records, sampling data, site assessments, risk assessments, economic models and other similar documents with respect
to the Business or the Purchased Assets which are in the possession or control of Seller.

 

Section
3.12 Permits. Schedule 3.12 sets
forth all Transferred Permits. The Transferred Permits are valid and in full force and effect. All fees and charges with respect
to such Transferred Permits as of the date hereof have been paid in full. 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 Transferred
Permit.

 

Section
3.13 Non-foreign Status. Seller is not a “foreign person” as that term is used in Treasury Regulations Section
1.1445-2.

 

    	 	9	 

     

    

 

Section
3.14 Legal Proceedings. There is no Action of any nature pending or, to Seller’s knowledge, threatened against
or by Seller (a) relating to or affecting the Purchased Assets; or (b) that challenges or seeks to prevent, enjoin or otherwise
delay the transactions contemplated by this Agreement. To Seller’s knowledge, no event has occurred or circumstances exist
that may give rise to, or serve as a basis for, any such Action. Seller has disclosed a pending action to collect a receivable
that is outside the scope of the Purchased Assets.

 

Section
3.15 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 based upon arrangements made by or on behalf of Seller.

 

Section
3.16 Full Disclosure. No representation or warranty by Seller in this Agreement and no statement contained in the Schedules
to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to this Agreement contains
any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein,
in light of the circumstances in which they are made, not misleading.

 

ARTICLE
IV REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to Seller that the statements contained in this Article
IV are true and correct as of the date hereof. For purposes of this Article
IV, “Buyer’s knowledge,” “knowledge of Buyer” and any similar phrases shall mean the actual
knowledge, without independent investigation, of any director or officer of Buyer.

 

Section
4.01 Organization and Authority of Buyer; Enforceability. Buyer is a limited liability company duly organized, validly
existing and in good standing under the laws of the state of Delaware. Buyer has full limited liability company power and authority
to enter into this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate
the transactions contemplated hereby. The execution, delivery and performance by Buyer of this Agreement and the documents to be
delivered hereunder and the consummation of the transactions contemplated hereby have been duly authorized by all requisite limited
liability company action on the part of Buyer. This Agreement and the documents to be delivered hereunder have been duly executed
and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller) this Agreement and the documents to
be delivered hereunder constitute legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their
respective terms.

 

Section
4.02 No Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the documents
to be delivered hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or
conflict with the certificate of formation, limited liability company agreement or other organizational documents of Buyer;
or (b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or
regulation applicable to Buyer. No consent, approval, waiver or authorization is required to be obtained by Buyer from any
person or entity (including any governmental authority) in connection with the execution, delivery and performance by Buyer
of this Agreement and the consummation of the transactions contemplated hereby.

 

Section
4.03 Legal Proceedings. There is no Action of any nature pending or, to Buyer’s knowledge, threatened against
or by Buyer that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No
event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

    	 	10	 

     

    

 

Section
4.04 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 based upon arrangements made by or on behalf of Buyer.

 

Section
4.05 Due Diligence. Buyer is an experienced and knowledgeable owner and operator in the Business and is capable of independently
evaluating the merits and risks of the purchase of the Purchased Assets contemplated by this Agreement. With respect to proceeding
with the transactions contemplated by this Agreement, Buyer has evaluated the merits and risks of purchasing the Purchased Assets
and has relied solely upon its knowledge and experience and the express representations and warranties made by Seller in this Agreement.

 

ARTICLE V COVENANTS

 

Section
5.01 Conduct of Business Prior to Closing. From the date hereof until the Closing, except as otherwise provided in this
Agreement or consented to in writing by Buyer, Seller shall (a) conduct the Business in the ordinary course of business consistent
with past practice; and (b) use reasonable best efforts to maintain and preserve intact its current Business organization, operations
and franchise and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers,
regulators and others having relationships with the Business. Without limiting the foregoing, Seller shall (i) maintain the properties
and assets included in the Purchased Assets in the same condition and in the same manner as they were on the date of this Agreement,
subject to reasonable wear and tear, (ii) defend and protect the properties and assets included in the Purchased Assets from infringement
or usurpation, (iii) perform all of its obligations under all Assigned Contracts, (iv) comply in all material respects with all
laws applicable to the conduct of the Business or the ownership and use of the Purchased Assets, and (v) not make any material
capital expenditures with respect to the Plant, Business or Purchased Assets without Buyer’s prior written consent.

 

Section
5.02 Access to Information. From the date hereof until the Closing, Seller shall (a) afford
Buyer and its representatives full and free access to and the right to inspect all of the Purchased Assets and other
documents and data related to the Business; (b) furnish Buyer and its representatives with such data and information related
to the Purchased Assets and Business as Buyer or any of its representatives may reasonably request; and (c) instruct the
representatives of Seller to cooperate with Buyer in its investigation of the Purchased Assets and the Business. Without
limiting the foregoing, Seller shall permit Buyer and its representatives to conduct due diligence of the Leased Real
Property. No investigation by Buyer or other information received by Buyer shall operate as a waiver or otherwise affect any
representation, warranty or agreement given or made by Seller in this Agreement.

 

Section
5.03 Exclusivity. From and after the date of this Agreement, Seller shall not, nor shall it authorize or knowingly permit
any of its affiliates (including the Parent Companies), employees, investment bankers, attorneys, accountants or other advisors
or representatives to, solicit or initiate contact or enter into any agreement with respect to any inquiry, offer or proposal to
acquire in any manner, directly or indirectly, whether by sale, merger or otherwise, all or any substantial portion of the Business
or Purchased Assets. Seller shall take no action to circumvent or hinder Buyer’s right or ability to acquire the Purchased
Assets.

 

    	 	11	 

     

    

 

Section
5.04 Notice of Certain Events. From the date hereof until the Closing, Seller shall promptly notify Buyer in writing
of any fact, circumstance, event or action the existence, occurrence or taking of which (a) has had, or could reasonably be expected
to have, individually or in the aggregate, a material adverse effect on (i) the business, results of operations, condition (financial
or otherwise) or assets of the Business, (ii) the value of the Purchased Assets, or (iii) the ability of Seller to consummate the
transactions contemplated hereby on a timely basis, (b) has resulted in, or could reasonably be expected to result in, any representation
or warranty made by Seller hereunder not being true and correct or (c) has resulted in, or could reasonably be expected to result
in, the failure of any of the conditions set forth in Section
6.01 to be satisfied. Buyer’s receipt of information pursuant to this Section
5.04 shall not operate as a waiver or otherwise affect any representation, warranty or agreement given or made by Seller
in this Agreement.

 

Section
5.05 Confidentiality.

 

(a)
From and after the Closing, Seller shall, and shall cause its affiliates (including the Parent Companies) to, hold, and shall
use its best efforts to cause its or their respective representatives to hold, in confidence any and all information, whether
written or oral, concerning the Purchased Assets, except to the extent that Seller can show that such information is
generally available to and known by the public through no fault of Seller, any of its affiliates or their respective
representatives; or (ii) is lawfully acquired by Seller, any of its affiliates or their respective representatives from and
after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual or fiduciary
obligation. If Seller or any of its affiliates or their respective representatives are compelled to disclose any information
by judicial or administrative process or by other requirements of law, Seller shall promptly notify Buyer in writing and
shall disclose only that portion of such information which Seller is advised by its counsel in writing is legally required to
be disclosed, provided that Seller shall use best efforts to obtain an appropriate protective order or other reasonable
assurance that confidential treatment will be accorded such information.

 

(b)
From and after the Closing, Buyer shall, and shall cause its affiliates to, hold, and shall use its best efforts to cause its
or their respective representatives to hold, in confidence any and all information, whether written or oral, concerning
Seller or the Parent Companies, except to the extent that Buyer can show that such information (i) is generally available to
and known by the public through no fault of Buyer, any of its affiliates or their respective representatives; or (ii) is
lawfully acquired by Buyer, any of its affiliates or their respective representatives from and after the Closing from sources
which are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation. If Buyer or any of
its affiliates or their respective representatives are compelled to disclose any information by judicial or
administrative process or by other requirements of law, Buyer shall promptly notify Seller in writing and shall disclose only
that portion of such information which Buyer is advised by its counsel in writing is legally required to be disclosed,
provided that Buyer shall use best efforts to obtain an appropriate protective order or other reasonable assurance that
confidential treatment will be accorded such information.

 

    	 	12	 

     

    

 

Section
5.06 Non-competition; Non-solicitation.

 

(a) 
Other than expressly approved in writing, for a period of two (2) years commencing on the
Closing Date (the “Restricted Period”),
Seller shall not, and shall not permit any of its affiliates (including the Parent Companies) to, directly or indirectly, (i) engage
in or assist others in engaging in the compounding of recycled plastic; (ii) have an interest in any entity that engages directly
or indirectly in the compounding of recycled plastic in any capacity, including as a partner, shareholder, member, employee, principal,
agent, trustee or consultant; or (iii) cause, induce or encourage any material actual or prospective client, customer, supplier
or licensor of the Business (including any existing or former client or customer of Seller and any person or entity that becomes
a client or customer of the Business after the Closing), or any other person or entity who has a material business relationship
with the Business, to terminate or modify any such actual or prospective relationship. Notwithstanding the foregoing, Seller may
own, directly or indirectly, solely as an investment, securities of any entity traded on any national securities exchange if Seller
is not a controlling entity of, or a member of a group which controls, such person or entity and does not, directly or indirectly,
own 5% or more of any class of securities of such entity.

 

(b) 
During the Restricted Period, Seller shall not, and shall not permit any of its affiliates
(including the Parent Companies) to, directly or indirectly, hire or solicit any person who is offered employment by Buyer or is
or was employed in the Business during the Restricted Period, or encourage any such employee to leave such employment or hire any
such employee who has left such employment, except pursuant to a general solicitation which is not directed specifically to any
such employees; provided, that
nothing in this Section 5.06(b) shall
prevent Seller or any of its affiliates from hiring (i) any employee whose employment has been terminated by Buyer or (ii) after
180 days from the date of termination of employment, any employee whose employment has been terminated by the employee.

 

(c) 
Seller acknowledges that a breach or threatened breach of this Section
5.06 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 Seller 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 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).

 

(d) 
Seller acknowledges that the restrictions contained in this Section
5.06 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 5.06 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 5.06 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.

 

Section
5.07 Closing Conditions. Each of the parties hereto agrees to use commercially reasonable efforts to satisfy promptly
all conditions to the obligations of the parties hereto in order to expedite the consummation of the transactions contemplated
hereby.

 

    	 	13	 

     

    

 

Section
5.08 Taxes and Fees. All sales and transfer taxes, if any, incurred in connection with this Agreement and the transactions
contemplated hereby will be borne by Seller. All recording, filing and other fees (including any penalties or interest) incurred
in connection with this Agreement and the transactions contemplated hereby will be borne by Buyer. The parties will assist each
other in the filing of all necessary tax returns and other documentation with respect to all such taxes and fees, and, if required
by applicable law, will join in the execution of any such tax returns or other documentation. Real estate taxes and installments
of assessments as shown on the latest available tax duplicates shall be prorated between Buyer and Seller as of the Closing Date.

 

Section
5.09 Public Announcements. Unless otherwise required by applicable law, neither party shall make any public announcements
regarding this Agreement or the transactions contemplated hereby without the prior written consent of the other party (which consent
shall not be unreasonably withheld or delayed).

 

Section
5.10 Further Assurances. Following the Closing, each of the parties hereto shall 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 documents to be delivered hereunder

 

Section
5.11 Receivables. From and after the Closing, if Buyer or any of its affiliates receives or collects any funds relating
to any receivable that is an Excluded Asset, Buyer or its affiliate shall remit such funds to Seller within five Business Days
after its receipt thereof.

 

ARTICLE
VI CLOSING CONDITIONS

 

Section
6.01 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) 
All of the representations and warranties of Seller contained in this Agreement shall be true
and correct in all respects (in the case of any representation or warranty qualified by materiality) or in all material respects
(in the case of any representation or warranty not qualified by materiality) on and as of the date hereof and on and as of the
Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address
matters only as of a specified date, the accuracy of which shall be determined as of that specified date in all respects).

 

(b) 
Seller shall have duly performed and complied in all material respects with all agreements,
covenants and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date; provided,
that, with respect to agreements, covenants and conditions that are qualified by materiality, Seller shall have performed
such agreements, covenants and conditions, as so qualified, in all respects.

 

(c) 
Since the date of this Agreement, there shall not have occurred any material adverse change
in the Business or the condition of the Purchased Assets.

 

    	 	14	 

     

    

 

(d) 
All requirements for the valid consummation by Seller of the transactions contemplated by
this Agreement and the documents to be delivered hereunder shall have been fulfilled, and all authorizations, consents and approvals
of all persons or entities required to be obtained (including the expiration of all applicable waiting periods) in order to permit
the consummation by Seller of the transactions contemplated by this Agreement and the documents to be delivered hereunder shall
have been obtained on terms satisfactory to Buyer.

 

(e) 
All Encumbrances relating to the Purchased Assets shall have been released in full, and Seller
shall have delivered to Buyer written evidence, in form satisfactory to Buyer in its sole discretion, of the release of such Encumbrances.

 

(f)  
No Action shall have been commenced against Buyer or Seller, which would prevent the Closing.
No injunction or restraining order shall have been issued by any governmental authority, and be in effect, which restrains or prohibits
any transaction contemplated hereby.

 

(g) 
All employees and independent contractors listed on Schedule
6.1(g) (individually, a “Key
Employee” and collectively, the “Key
Employees”) shall have accepted Buyer’s offer to employ such employee, or engage such independent contractor,
as of the Closing Date on such terms and conditions (including base compensation, benefits and non-competition covenants) that
are satisfactory to Buyer in its sole discretion; provided, however, that Buyer agrees that such terms and conditions, on the whole,
will be comparable to the terms and conditions provided by Seller prior to the Closing; provided, further, that any such employment
shall be at- will notwithstanding any existing agreement between such Key Employee and Seller; and provided, further, that a condition
to Buyer’s offer shall be that the Key Employees execute a non-disclosure agreement in favor of Buyer in form and content
satisfactory to Buyer and Seller. Buyer intends to offer employment to all employees of Seller, and Seller shall terminate all
employees who accept Buyer’s offer of employment as of the Closing Date.

 

(h) 
Buyer shall have received financing on terms acceptable to Buyer for the payment of the Purchase
Price and consummation of the transactions contemplated by this Agreement.

 

(i)  
Seller shall have delivered to Buyer duly executed counterparts to the documents and deliveries
set forth in Section 2.02(a).

 

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

 

(a) 
The representations and warranties of Buyer contained in this Agreement shall be true and
correct in all respects (in the case of any representation or warranty qualified by materiality) or in all material respects (in
the case of any representation or warranty not qualified by materiality) on and as of the date hereof and on and as of the Closing
Date with the same effect as though made at and as of such date (except those representations and warranties that address matters
only as of a specified date, the accuracy of which shall be determined as of that specified date in all respects).

 

(b) 
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 documents to be delivered hereunder to be performed or
complied with by it prior to or on the Closing Date; provided,
that, with respect to agreements, covenants and conditions that are qualified by materiality, Buyer shall have performed
such agreements, covenants and conditions, as so qualified, in all respects.

 

    	 	15	 

     

    

 

(c) 
No injunction or restraining order shall have been issued by any governmental authority, and
be in effect, which restrains or prohibits any material transaction contemplated hereby.

 

(d) 
Buyer shall have delivered to Seller duly executed counterparts to the documents and deliveries
set forth in Section 2.02(b).

 

ARTICLE
VII INDEMNIFICATION

 

Section
7.01 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 two (2) years from
the Closing Date; provided, that
the representations and warranties in Section
3.01, Section 3.02,
Section 3.06, Section
3.15, Section 4.01,
Section 4.02 and Section
4.04 shall survive indefinitely, and Section
3.11 shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation
or extension thereof) plus 60 days. All covenants and agreements of the parties contained herein shall survive the Closing indefinitely
or 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.

 

Section
7.02 Indemnification By Seller. Seller and the Parent Companies, jointly and severally, shall defend, indemnify and
hold harmless Buyer, its affiliates and their respective stockholders, directors, officers and employees from and against all claims,
judgments, damages, liabilities, settlements, losses, costs and expenses, including attorneys’ fees and disbursements (collectively,
the “Losses”), arising
from or relating to (a) any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement;
(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement;
(c) any Excluded Asset; or (d) any Excluded Liability. Seller and the Parent Companies shall not be liable under Section 7.02(a)
or Section 7.02(b) until the aggregate amount of all Losses in respect of indemnification under Section 7.02(a) and Section 7.02(b)
exceeds $50,000 (the “Basket”),
in which event Seller and the Parent Companies shall be required to pay or be liable for all such Losses from the first dollar.
The aggregate amount of all Losses for which Seller and the Parent Companies shall be liable pursuant to Section 7.02(a) shall
not exceed $500,000 (the “Cap”).

 

Section
7.03 Indemnification By Buyer. Buyer shall defend, indemnify and hold harmless Seller, its affiliates and their respective
stockholders, directors, officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses,
costs and expenses, including attorneys’ fees and disbursements, arising from or relating to (a) any inaccuracy in or breach
of any of the representations or warranties of Buyer contained in this Agreement; (b) any breach or non-fulfillment of any covenant,
agreement or obligation to be performed by Buyer pursuant to this Agreement; or (c) any Assumed Liability. Buyer shall not be liable
under Section 7.03(a) or Section 7.03(b) until the aggregate amount of all Losses in respect of indemnification under Section 7.03(a)
and Section 7.03(b) exceeds the Basket, in which event Buyer shall be required to pay or be liable for all such Losses from the
first dollar. The aggregate amount of all Losses for which Buyer shall be liable pursuant to Section 7.03(a) shall not exceed the
Cap.

 

    	 	16	 

     

    

 

Section
7.04 Indemnification Procedures. Whenever any claim shall arise for indemnification hereunder, the party making a claim
under this Article VII (the “Indemnified
Party”) shall promptly provide written notice of such claim to the party against whom such claims are asserted
under this Article VII (the “Indemnifying
Party”). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any
Action by a person or entity who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon
written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the
Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and
at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may,
but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including, but not limited
to, settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem
appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying
Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party
shall not settle any Action without the Indemnified Party’s prior written consent (which consent shall not be unreasonably
withheld or delayed).

 

Section
7.05 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
7.06 Effect of Investigation. Buyer’s right to indemnification or other remedy based on the representations, warranties,
covenants and agreements of Seller contained herein will not be affected by any investigation conducted by Buyer with respect to,
or any knowledge acquired by Buyer at any time, with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or agreement.

 

Section
7.07 Cumulative Remedies. The rights and remedies provided in this Article
VII are cumulative and are in addition to and not in substitution for any other rights and remedies available at law
or in equity or otherwise.

 

ARTICLE VIII TERMINATION

 

Section
8.01 Termination. This Agreement may be terminated at any time prior to the Closing:

 

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

 

(b) 
by Buyer by written notice to Seller if (i) Buyer is not then in material breach of any provision
of this Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement
made by Seller pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Article
VI and such breach, inaccuracy or failure has not been cured by Seller within ten days of Seller’s receipt of
written notice of such breach from Buyer, or (ii) any of the conditions set forth in Section
6.01 shall not have been, or if it becomes apparent that any of such conditions will not be, fulfilled by August 31,
2018, unless such failure shall be due to the failure of Buyer to perform or comply with any of the covenants, agreements or conditions
hereof to be performed or complied with by it prior to the Closing; or

 

(c) 
by Seller by written notice to Buyer if (i) Seller is not then in material breach of any provision
of this Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement
made by Buyer pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Article
VI and such breach, inaccuracy or failure has not been cured by Buyer within ten days of Buyer’s receipt of written
notice of such breach from Seller, or (ii) any of the conditions set forth in Section
6.02 shall not have been, or if it becomes apparent that any of such conditions will not be, fulfilled by August 31,
2018 (which date shall be extended, upon Buyer’s written notice, to facilitate Buyer’s financing transaction), unless
such failure shall be due to the failure of Seller to perform or comply with any of the covenants, agreements or conditions hereof
to be performed or complied with by it prior to the Closing.

 

Section
8.02 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 VIII and Article
IX hereof, and (b) that nothing herein shall relieve any party hereto from liability for any willful breach of any provision
hereof.

 

ARTICLE
IX MISCELLANEOUS

 

Section
9.01 Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring such costs and expenses.

 

    	 	17	 

     

    

 

Section
9.02 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 transmission) if sent during normal business hours of the recipient, and on the
next business day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the
following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section
9.02):

 

If
to Seller:                                      Sable Polymer Solutions, LLC

3333
S. Pinnacle Hills Parkway, Ste 220

Rogers,
AR 72758

Facsimile:

E-mail:
joliphant@ecoarkusa.com

Attention:
       Jay Oliphant

 

with
a copy to:                                Carmel, Milazzo & DiChiara

55
West 39th Street, 18th Floor Penthouse

New
York, NY 10018

Facsimile:
(646) 838-1314

E-mail:
pdichiara@cmdllp.com

Attention:
Peter DiChiara

 

If
to Buyer prior to the Closing:      Virterras Materials US LLC

c/o
Sanossian, Sardis & Co., LLP

700
White Plains Road, Suite 301

Scarsdale,
NY 10583-5063

Facsimile:

E-mail:

Attention:
George Sanossian, CPA

 

If
to Buyer after the Closing:          Virterras Materials US LLC

4350
Avery Drive

Flowery
Branch, GA 30542

Facsimile:

E-mail:
kmcafee@virterras.com

Attention:
Kirk McAfee

 

Section
9.03 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, Schedules and Exhibits mean the Articles and Sections of, and 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 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.

 

    	 	18	 

     

    

 

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

 

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

 

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

 

Section
9.07 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. Neither party may assign its rights or obligations hereunder without the
prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve
the assigning party of any of its obligations hereunder.

 

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

 

Section
9.10 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions
contemplated hereby may be instituted in the federal courts of the United States of America for the Southern District of New York
or the courts of the State of New York in each case located in the county of New York, and each party irrevocably submits to the
exclusive jurisdiction of such courts in any such suit, action or proceeding.

 

Section
9.11 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 an injunction or injunctions to
prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to
any other remedy to which they are entitled at law or in equity.

 

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

of
electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	19	 

     

    

 

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

 

	BUYER:	Virterras Materials US LLC
	 	 	 
	 	By:	/s/ Kirk McAfee
		Name:	Kirk McAfee
	 	Title:	Chief Financial Officer
	 	 	 
	SELLER:	Sable Polymer Solutions, LLC
	 	 	 
	 	By:	/s/ Randy May
	 	Name:	Randy May
	 	Title:	Manager
	 	 	 
	PIONEER	Pioneer Products LLC
	 	 	 
	 	By:	/s/ Randy May
	 	Name:	Randy May
	 	Title:	Manager
	 	 	 
	ECOARK:	Ecoark Inc.
	 	 	 
	 	By:	/s/ Randy May
	 	Name:	Randy May
	 	Title:	President
	 	 	 
	ECOARK HOLDINGS, INC.	Ecoark Holdings, Inc.
	 	 	 
	 	By:	/s/ Randy May
	 	Name:	Randy May
	 	Title:	Chief Executive Officer

  

[Signature
Page to Asset Purchase Agreement]

 

     

     

    

 

Schedule
1.01(d) - Assigned Contracts

 

The
Lease

 

Schedule
of assigned purchase orders to be agreed upon by Buyer and Seller before the Closing.

 

Schedule
3.02 - Consents 

 

Consent
of the landlord is required to assign the Lease.

 

Schedule
3.09 - Purchased IP

 

http://sablepolymer.com

 

Formulas
for existing products

 

Schedule
3.12 - Transferred Permits

 

Schedule
of Transferred Permits to be agreed upon by Buyer and Seller before the Closing

 

Schedule
6.1(g) - Key Employees

 

Rick
Sofia

 

Toby
Bereznay

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