Document:

Exhibit 10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of October ___, 2020, between
Transportation and Logistics Systems, Inc., a Nevada corporation (the “Company”) and each of the several purchasers
identified on the signature pages to the Purchase Agreement (each such purchaser, a “Purchaser” and, collectively,
the “Purchasers”).

 

WHEREAS,
the Company and the Purchasers are parties to that certain Securities Purchase Agreement, dated as of the date of this Agreement
(the “Purchase Agreement”), pursuant to which the Purchasers are purchasing shares of Common Stock (defined
below) of the Company; and

 

WHEREAS,
in connection with the consummation of the transactions contemplated by the Purchase Agreement, and pursuant to the terms of the
Purchase Agreement, the parties desire to enter into this Agreement in order to grant certain registration rights to the Purchasers
as set forth below.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as
follows:

 

Section
1. Defined Terms. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

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

 

“CDI
612.09” means Section 612.09 of the Commission’s Compliance and Disclosure Interpretations.

 

“Closing”
means the closing of the purchase and sale of the Common Stock pursuant to the Purchase Agreement.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed into.

 

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

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder or any other Registration
Statement, 90 days following the Closing; provided, however, that in the event the Company is notified by the Commission
that one or more of the Registration Statements will not be reviewed or is no longer subject to further review and comments, the
Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is
so notified if such date precedes the date otherwise required above.

 

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“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(b).

 

“Event
Date” shall have the meaning set forth in Section 2(b).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, 30 days following the Closing, and
with respect to any additional Registration Statements which may be required pursuant to Section 3(c), the earliest practical
date on which the Company is permitted by SEC Guidance to file such additional Registration Statements related to the Registrable
Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

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

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Proceeding”
means any action, claim, suit, investigation or legal proceeding (including, without limitation, an informal investigation or
partial proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

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

 

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

 

“Registrable
Securities” means (a) all of the shares of Common Stock issuable under Series E Convertible Preferred Stock and Warrants
issued pursuant to the Purchase Agreement and (b) any securities issued or issuable upon any stock split, dividend or other distribution,
recapitalization or similar event with respect to the foregoing.

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 3(b), including (in each case) the Prospectus, amendments and supplements
to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all
material incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance (including CDI 612.09), comments, requirements or
requests of the Commission staff and (ii) the Securities Act.

 

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

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“Trading
Day” means a day on which the New York Stock Exchange is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange, the NYSE American, the OTCQB, the OTCQX, or the OTC Pink Marketplace (or any successors to any of the foregoing).

 

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“Transaction
Documents” means this Agreement, the Series E COD, the Purchase Agreement, all schedules and exhibits thereto and hereto,
the Warrants, and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Equiniti Trust Company, 1100 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120, and any successor
transfer agent of the Company.

 

Section
2. Shelf Registration.

 

(a)
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form
S-1 and shall contain a description of the Holders planned distribution (unless otherwise directed by at least an 85%
majority in interest of the Holders) substantially in the form of “Plan of Distribution” attached hereto
as Annex A. The Company shall respond to any comments from the staff of the Commission within 15 days of the receipt
of such comments. In the event the amount of Registrable Securities which may be included in the Registration Statement is
limited due to SEC Guidance (provided that, the Company shall use diligent efforts to advocate with the Commission for the
registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, the CDI
612.09) the Company shall use its best efforts to register such maximum portion of the Registrable Securities as permitted by
SEC Guidance. Subject to the terms of this Agreement, the Company shall use its best efforts to cause a Registration
Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any
event prior to the applicable Effectiveness Date, and shall use its best efforts to keep such Registration Statement
continuously effective under the Securities Act until all Registrable Securities covered by such Registration Statement have
been sold, or may be sold pursuant to Rule 144 without the volume or other limitations of such rule, or not required to be
registered in reliance upon the exemption in Section 4(a)(1) or 4(a)(7) under the Securities Act, in either case as
determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the
Transfer Agent and the affected Holders (the “Effectiveness Period”). Provided, however, during any period
of time that the Company’s financial statements contained in a prospectus do not meet the requirements of Securities
Act Section 10(a)(3) and the remaining period until the date its Form 10-K is required to be filed (excluding any extended
period of time permitted by rule of the SEC) does not exceed 60 days, the Company shall be excused from amending or
supplementing its prospectus for the remaining period until the date its Form 10-K is required to be filed (including any
extended period of time permitted by rule of the SEC). The Company shall request effectiveness of a Registration Statement as
of 5:00 p.m. New York City time on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail
of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms
effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The
Company shall file a final Prospectus with the Commission as required by Rule 424. Notwithstanding any other provision of
this Agreement, if any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be
registered on a particular Registration Statement (and notwithstanding that the Company used diligent efforts to advocate
with the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed in
writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such
Registration Statement will be reduced on a pro rata basis based on the total number of unregistered Registrable Securities
purchased by the Purchasers pursuant to the Purchase Agreement with the Warrant Shares being cutback prior to any Conversion
Shares. In the event of a cutback hereunder, the Company shall give the Holder at least five Trading Days prior written
notice along with the calculations as to such Holder’s allotment.

 

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(b)
If a Registration Statement registering for resale all of the Registrable Securities (i) is not filed with the Commission by the
Company by the Filing Date of the Initial Registration Statement or any other Registration Statement, (ii) is not declared effective
by the Commission by the Effectiveness Date of the Initial Registration Statement or any other Registration Statement (unless
the sole reason for such non-registration of all or any portion of the Registrable Securities as a result of SEC Guidance
under Rule 415 or similar rule and CDI 612.09 which limits the number of Registrable Securities which may be included in a registration
statement with respect to the Holders), or (ii) after the effective date of a Registration Statement, such Registration Statement
ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement,
or the Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than
30 calendar days during any 12-month period (any such failure or breach being referred to as an “Event”, and
the date on which such Event occurs, being referred to as “Event Date”), then, in addition to any other rights
the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash , as partial liquidated damages and not as a penalty, equal to 1% of the purchase price paid
by such Holder pursuant to the Purchase Agreement, during which such Event continues uncured. The partial liquidated damages pursuant
to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the cure of an Event. Provided,
however, the foregoing liquidated damages shall not accrue or be otherwise charged during any period in which the Holder
is eligible to sell the Registrable Securities on any given day under Rule 144 without the volume or other limitations of such
rule, or in reliance upon the exemption in Section 4(a)(1) under the Securities Act, or after such Holder has publicly sold its
Registrable Securities.

 

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Section
3. Registration Procedures.

 

(a)
In connection with the Company’s registration obligations hereunder, the Company shall: not less than three Trading Days
prior to the filing of each Registration Statement and not less than one Trading Day prior to the filing of any related Prospectus
or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein
by reference), the Company shall (i) furnish to the Holders copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will be subject to the review of the Holders or counsel
for the Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants to respond to
such inquiries as shall be necessary to conduct a reasonable investigation within the meaning of the Securities Act. The Company
shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities shall reasonably object in good faith, provided that, the Company is notified of such
objection in writing no later than five Trading Days after the Holders have been so furnished copies of a Registration Statement
or two Trading Days after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto.
Each Holder agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B
(a “Selling Stockholder Questionnaire”) on a date that is not less than two Trading Days prior to the Filing
Date or by the end of the fourth Trading Day following the date on which such Holder receives draft materials in accordance with
this Section.

 

(b)
In connection with the Company’s registration obligations hereunder, the Company shall:

 

(i)
prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities,

 

(ii)
cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424,

 

(iii)
respond to any comments received from the Commission with respect to a Registration Statement or any amendment thereto within
15 days of the receipt of such comments, and provide as promptly as reasonably possible to the Holders true and complete copies
of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company may excise any
information contained therein which would constitute material non-public information as to any Holder which has not executed a
confidentiality agreement with the Company), and

 

(iv)
comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities
covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the
intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus
as so supplemented.

 

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(c)
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as
reasonably possible (and, in the case of (i)(A) below, not less than one Trading Day prior to such filing) and (if requested by
any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any
Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission
notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments
in writing on such Registration Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when
the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for additional information, (iii) of the issuance by the
Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration
Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be
material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus, provided that, any and all of such information shall remain confidential to each Holder
until such information otherwise becomes public, unless disclosure by a Holder is required by law; provided, further,
that notwithstanding each Holder’s acknowledgement to keep such information confidential, each such Holder makes no acknowledgement
that any such information is material, non-public information.

 

(d)
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

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(e)
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to
the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished
or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that any such item which
is available on the EDGAR system need not be furnished in physical form, and such number of copies of the current Prospectus as
each Holder may reasonably request.

 

(f)
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(c).

 

(g)
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting
a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110 and 5190 and NASD Rule 2710, as requested by
any such Holder, and the Company shall pay the filing fee required by such filing within two Trading Days of request therefor.

 

(h)
Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall
not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company
to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in
any such jurisdiction.

 

(i)
If requested by a Holder, cooperate with such Holders to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holder may request.

 

(j)
If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(c) above to suspend the
use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such
Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.

 

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(k)
Comply with all applicable rules and regulations of the Commission.

 

(l)
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. The Company shall not be liable for any damages during any periods that the Company is unable to meet
its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish
such information within three Trading Days of the Company’s request.

 

Section
4. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel, independent registered public accountants and transfer agent)
(A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market
on which the Common Stock is then listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably
agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection
with Blue Sky qualifications or exemptions of the Registrable Securities) and (D) if not previously paid by the Company in connection
with an issuer filing, with respect to any filing that may be required to be made by any broker-dealer through which a Holder
intends to make sales of Registrable Securities pursuant to FINRA Rule 5110 and 5190 and NASD Rule 2710, so long as the broker-dealer
is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities), and (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel for the Company. In addition, the Company shall be responsible for all of its internal
expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation,
all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit
and the fees and expenses incurred in connection with the listing of the Registrable Securities on any Trading Market as required
hereunder. In no event shall the Company be responsible for any broker-dealer or similar commissions of any Holder or, except
to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

 

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Section
5. Indemnification.

 

(a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each of them, each
Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable attorneys’ fees and costs of investigation and preparation) and expenses
(collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement
of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto,
in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company
of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with
the performance of its obligations under this Agreement, except to the extent that (i) such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein
(it being understood that all information provided in a Selling Stockholder Questionnaire will be deemed to have been furnished
by such Holder expressly for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto) or to
the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved (A) Annex A hereto and
(B) any information provided in a Selling Stockholder Questionnaire for this purpose) or (ii) in the case of an occurrence of
an event of the type specified in Section 3(c)(iii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by
such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which
the Company is aware.

 

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(b)
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, each
director of the Company, each officer of the Company who shall sign such Registration Statement, each professional advisor to
the Company, each underwriter, broker or other Person acting on behalf of the holders of Registrable Securities and each Person
who controls any of the foregoing Persons within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of
or based solely upon: (x) such Holder’s failure to comply with the prospectus delivery requirements of the Securities Act
or (y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the
extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing
by such Holder to the Company specifically for inclusion in such Registration Statement or such Prospectus (it being understood
that all information provided in a Selling Stockholder Questionnaire will be deemed to have been furnished by such Holder expressly
for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto) or (ii) to the extent that such
information relates to such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved
Annex A hereto for this purpose), such Prospectus or in any amendment or supplement thereto or (ii) in the case of an occurrence
of an event of the type specified in Section 3(c)(iii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by
such Holder of the Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder hereunder
be greater in amount than the dollar amount of the net proceeds (after underwriting fees, commissions, or discounts) actually
received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

 

(c)
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity
is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume
the defense thereof, including the employment of one law firm reasonably satisfactory to the Indemnified Party and the payment
of all fees and expenses incurred in connection with defense thereof except as otherwise provided in this Section 5(c);
provided, that, the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations
or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially prejudiced
the Indemnifying Party.

 

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An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or
(3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if
the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party,
the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more
than one separate counsel for all Indemnified Parties that may be represent without conflict by one counsel shall be at the expense
of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without
its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified
Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is judicially determined not to be entitled to indemnification
hereunder.

 

(d)
Contribution. If the indemnification under Section 5(a) or Section 5(b) is unavailable to an Indemnified
Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the
amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined
by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material
fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall
be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other fees or
expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such
fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 

    	12

    	 

    

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined
by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder
from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties
may have to the Indemnified Parties.

 

Section
6. Miscellaneous.

 

(a)
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate compensation for any Losses incurred by reason
of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b)
Prohibition on Filing Other Registration Statements. Neither the Company nor any of its security holders (other than the
Holders in such capacity pursuant hereto) may include securities of the Company in any Registration Statements other than the
Registrable Securities. The Company shall not file any other registration statements until all Registrable Securities are registered
pursuant to a Registration Statement that is declared effective by the Commission, provided that this Section 6(b) shall
not prohibit the Company from filing amendments to registration statements filed prior to the date of this Agreement. In the event
that, under SEC Guidance, there is a limitation on the number of Registrable Securities that may be included in a Registration
Statement, securities of the Company that have been registered on an effective registration statement of the Company as of the
date of this Agreement shall be registered prior to any of the Registrable Securities. Thereafter, the Holders shall have priority
over any other security holders with outstanding registration rights. Any reduction pursuant to this Section 6(b) in the
number of Registrable Securities registered shall be done on a pro rata basis in accordance with the Holders’ investment
made pursuant to the Purchase Agreement.

 

    	13

    	 

    

 

(c)
Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities
Act as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

(d)
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(c)(iii) through (vi), such Holder will
immediately discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing
(the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or
amended) may be resumed. The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly
as is practicable.

 

(e)
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and the Holders of more than 50% of the Registrable Securities. If a Registration Statement
does not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders
may be given by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided,
however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the
provisions of the first sentence of this Section 6(e).

 

(f)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(g)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.
Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

 

(h)
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 3.1(v) to the Purchase Agreement, neither the Company nor any of its Subsidiaries has
previously entered into any agreement granting any registration rights with respect to any of its securities to any Person that
have not been satisfied in full.

 

    	14

    	 

    

 

(i)
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(j)
Governing Law. All questions concerning the choice of law and venue, construction, validity, enforcement and interpretation
of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement.

 

(k)
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(l)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(m)
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

 

(n)
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in
concert with respect to such obligations or the transactions contemplated by this Agreement. Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary
for any other Holder to be joined as an additional party in any proceeding for such purpose.

 

[Signature
Pages Follow]

 

    	15

    	 

    

 

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

 

	 	TRANSPORTATION
    AND LOGISTICS SYSTEMS, INC.
	 	 	 
	 	By:	                           
	 	Name:	John
    Mercadante, Jr.
	 	Title:	Chief
    Executive Officer

 

[Signature
Page to Registration Rights Agreement]

 

    	16

    	 

    

 

	Name
    of Holder: __________________________	 
	 	 
	Signature
    of Authorized Signatory of Holder: __________________________	 
	 	 
	Name
    of Authorized Signatory: _________________________	 
	 	 
	Title
    of Authorized Signatory: __________________________	 

 

[SIGNATURE
PAGES CONTINUE]

 

[Signature
Page to Registration Rights Agreement]

 

    	17

    	 

    

 

Annex
A

 

Plan
of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of the Common Stock and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on the OTC Markets or any other
stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed
or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling shares:

 

	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	settlement
    of short sales entered into after the effective date of the registration statement of which this prospectus is a part;
	 	 	 
	 	●	broker-dealers
    may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	through
    the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	●	a
    combination of any such methods of sale; or
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers or dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from
the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency
transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121 or NASD Rule 2440; and in the
case of a principal transaction a markup or markdown in compliance with NASD IM-2440.

 

In
connection with the sale of the Common Stock or interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course
of hedging the positions they assume. The Selling Stockholders may also sell shares of the Common Stock short and deliver these
securities to close out their short positions, or loan or pledge the Common Stock to broker-dealers that in turn may sell these
securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions
or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution
of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).

 

    	18

    	 

    

 

The
Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the Common Stock. In no event shall any broker-dealer
receive fees, commissions and markups which, in the aggregate, would exceed eight percent.

 

The
Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the shares. The Company
has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

 

Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject
to the prospectus delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered
by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than
under this prospectus. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale
shares by the Selling Stockholders.

 

The
shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws.
In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the shares may not simultaneously
engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases
and sales of shares of the Common Stock by the Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser
at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    	19

    	 

    

 

Annex
B

 

Selling
Stockholder Notice and Questionnaire

 

The
undersigned beneficial owner of Common Stock (the “Registrable Securities”) of Transportation and Logistics
Systems, Inc., a Nevada corporation (the “Company”), understands that the Company has filed or intends to file
with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the “Registration
Rights Agreement”) to which this document is annexed. A copy of the Registration Rights Agreement is available from
the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include
the Registrable Securities owned by it in the Registration Statement.

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.

 

	 	(a)	Full
    Legal Name of Selling Stockholder
	 	 	 
	 	 	
	 	 	 
	 	(b)	Full
    Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 
	 	 	
	 	 	 
	 	(c)	Full
    Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power
    to vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	

 

	2.	Address
    for Notices to Selling Stockholder:

 

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________

Telephone:_____________________________________________________________________________________

Fax:___________________________________________________________________________________________

Contact
Person:__________________________________________________________________________________

 

    	20

    	 

    

 

	3.	Broker-Dealer
    Status:

 

	 	(a)	Are
    you a broker-dealer?
	 	 	 
	 	 	Yes
    [  ]  No [  ]
	 	 	 
	 	(b)	If
    “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services
    to the Company?
	 	 	 
	 	 	Yes
    [  ]  No [  ]
	 	 	 
	 	Note:	If
    “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.
	 	 	 
	 	(c)	Are
    you an affiliate of a broker-dealer?
	 	 	 
	 	 	Yes
    [  ]  No [  ]

 

	 	(d)	If
    you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course
    of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings,
    directly or indirectly, with any person to distribute the Registrable Securities?
	 	 	 
	 	 	Yes
    [  ]  No [  ]
	 	 	 
	 	Note:	If
    “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter
    in the Registration Statement.

 

	4.	Beneficial
    Ownership of Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company
other than the securities issuable pursuant to the Purchase Agreement.

 

	 	(a)	Type
    and Amount of other securities beneficially owned by the Selling Stockholder:
	 	 	 
	 	 	
	 	 	

 

	5.	Relationships
    with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Company (or its predecessors or affiliates) during the past three years.

 

		State any
    exceptions here:
	 	 
	 	 

 

The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement remains effective.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through
5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto. The undersigned understands that such information will be relied upon by the Company in connection with the preparation
or amendment of the Registration Statement and the related prospectus.

 

    	21

    	 

    

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	Date:
    ___________________________	Beneficial Owner: ________________________
	 	 	                                  
	 	By:	  
	 	Name:	 
	 	Title:	 

 

PLEASE
EMAIL A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

Russell
E. Deutsch, Esq.

Russell.Deutsch@klgates.com

 

    	22Exhibit 10.1

 

THIS
CONTRACT IS SUBJECT TO ARBITRATION

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

THIS MEMBERSHIP INTEREST
PURCHASE AGREEMENT (this “Agreement”) is made and entered into effective as of this ___ day of October, 2020
(the “Effective Date”), by and between LMP Long island 001 Holdings,
LLC (“LMP”), a Delaware limited liability company, and or its assigns (“LMP”),
and JOHN STALUPPI, an individual resident of Florida (“Staluppi”).
Terms capitalized but not otherwise defined herein shall have the meaning ascribed to there in Exhibit A.

 

W I T N E S S E T H :

 

WHEREAS, Staluppi is
the sole member or shareholder with respect to each of the entities listed on Exhibit B (with such entities being
hereinafter included in the term “AAG Subsidiaries”);

 

WHEREAS, prior to the
Closing Date, through a series of transactions, Staluppi will contribute (or cause to be contributed) into a newly-formed Delaware
limited liability company (the “Company”), as a capital contribution, all of the outstanding and issued Equity
Securities in each of the AAG Subsidiaries in exchange for the Company’s issuance to Staluppi of 100% of the membership
interests (the “AAG Membership Interests”) in the Company. Staluppi will provide LMP copies of all material
agreements and documents with respect thereto. For the avoidance of doubt, following the completion of the AAG Reorganization,
each AAG Subsidiary will be wholly-owned by the Company; and

 

WHEREAS, Staluppi desires
to sell, and LMP desires to purchase, 70% of the AAG Membership Interests (the “Acquired Interest”) for
the consideration and on the terms set forth in this Agreement; and

 

WHEREAS, the Parties
desire to set forth certain representations, warranties and covenants made by each to the other as an inducement to the execution
and delivery of this Agreement, and to set forth certain additional agreements related to the Contemplated Transactions; and

 

WHEREAS, the AAG Subsidiaries
conduct certain of their respective Business operations from the addresses set forth on Exhibit C (collectively,
the “Dealership Premises”). The Dealership Premises and the improvements thereon are owned by the individuals
or entities listed on Exhibit C (each a “Landlord,” and collectively the “Landlords”).

 

NOW, THEREFORE, for
and in consideration of the premises, the mutual representations, warranties and covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

    1

     

    

 

Article
1. SALE AND TRANSFER OF ACQUIRED INTEREST; CLOSING DATE; PURCHASE PRICE DELIVERY.

 

1.1 Purchase
and Sale. At the Closing and subject to and upon the terms and conditions of this Agreement, Staluppi shall sell, transfer
and deliver to LMP, and LMP shall purchase and acquire from Staluppi, all right, title and interest in and to all of the Acquired
Interest, free and clear of all Liens (other than restrictions on transfer imposed by the Securities Act and state securities laws
and except as set forth in Schedules 2.21 and 2.32) in consideration for the Purchase Price. In reliance upon the representations
and warranties of Staluppi contained herein, and on the terms and subject to the conditions herein set forth, LMP agrees that at
Closing it will purchase the Acquired Interest from Staluppi.

 

1.2 Closing;
Closing Date. Subject to the terms and conditions herein contained, the consummation of the Contemplated Transactions (the
“Closing”) shall take place at such time, date and place as the Parties may mutually agree on or before the
30th day following the satisfaction (or appropriate waiver) of each of the conditions set forth in Sections
5.1 and 5.2 below, unless the Parties otherwise mutually agree (the “Closing Date”) but in no event
shall the Closing Date be later than 180 days after the Effective Date (“Outside Closing Date”). The
Closing shall be effective at 12:01 a.m. local time on the Closing Date.

 

1.3 Purchase
Price. Subject to the adjustments set forth herein, the purchase price for the Acquired Interest shall be $425,600,000
(the “Purchase Price”), which LMP shall deliver to Staluppi as follows:

 

(a) A
cash amount equal to $375,600,000; PLUS

 

(b) The
Purchase Money Note, in form attached hereto and labeled Exhibit D.

 

1.4 Estimated
Net Working Capital.

 

(a) Not
more than 5 and not less than 2 Business Days prior to the Closing Date, the Company and Staluppi shall deliver,
or cause to be delivered, to LMP a certificate of the Company, prepared by the Company’s certified public accounts (the “Staluppi
CPA”), that contains a reasonable good faith estimate of the Company Group Entities’ aggregate Net Working Capital,
as of the Adjustment Calculation Time (“Estimated NWC”), and the Staluppi CPA shall provide LMP with supporting
financial statements, work sheets, and other documentation reasonably requested by LMP.

 

(b) “Net
Working Capital” of the Company Group Entities shall mean an amount equal to the aggregate value of the Company Group
Entities’ total current assets MINUS the aggregate value of the Company Group Entities’ total current liabilities,
all calculated by Staluppi CPA in accordance with GAAP (for the avoidance of doubt, and for the purposes of the foregoing, no Tax
assets or deferred Tax liabilities will be taken into account); provided, however, that the value of certain of the
Company Group Entities’ balance sheet items shall be adjusted as follows in determining Net Working Capital:

 

(i) All
New Vehicles will be valued at the New Vehicles Value;

 

(ii)
All Used Vehicles will be valued at the Used Vehicles Value;

 

(iii) All
Service Loaners will be valued at the Service Loaners Value;

 

(iv) All
Parts Inventory will be valued at the Parts Value; and

 

(iv) All
outstanding Repairs and WIP will be valued at the Company’s cost with no internal mark-ups applied by the Company.

 

    2

     

    

 

(c) Along
with the certificate described in Section 1.4(a) above, the Staluppi CPA shall prepare and deliver to LMP, in accordance
with GAAP, a schedule, reasonably acceptable to LMP, listing all the Pre-Closing Un-booked Liabilities existing as of the Adjustment
Calculation Time that are not reflected on the Company’s balance sheet (the “Un-booked Liability Schedule”),
along with any available documentation or other information related thereto. The Pre-Closing Un-booked Liabilities shall include,
without limitation:

 

(i) All
customer purchase deposits for New or Used Vehicles;

 

(ii) All
customer purchase deposits for Manufacturer Parts and Miscellaneous Inventories;

 

(iii) All
customer deposits for Repairs and WIP;

 

(iv) Any
warranty or similar obligations due within 12 months after the Closing Date, to the extent that such obligations will not
be fully reimbursed by a Manufacturer or third party provider;

 

(v) All
Staluppi Taxes;

 

(vi) All
accrued and unpaid sales, use, real and personal property taxes, and other taxes and governmental charges;

 

(vii) Any
refunds, credits, or other amounts due to customers, suppliers, or other third parties not already listed above;

 

(viii) Any
outstanding we-owes of the Company;

 

(ix) Any
bonus or other obligation to make payments (other than normal payroll and normal payment plans in the ordinary course of business
as shown in Schedule 2.19(j)) to any employee within 12 months after the Closing Date;

 

(x) The
tax effect of the Company’s LIFO accrual, as applicable, which will be reconciled and the tax consequence determined at the
Closing using then current tax tables; and

 

(d) The
Net Working Capital shall be reduced by an amount equal to the sum of the Pre-Closing Un-booked Liabilities.

 

(e) The
amount, if any, by which the Estimated NWC is less than the Target NWC is the “Estimated NWC Deficiency,” and
the amount, if any, by which the Estimated NWC is greater than the Target NWC is the “Estimated NWC Surplus.”
Should there be an Estimated NWC Deficiency, the Staluppi shall, prior to the Closing Date make an additional capital contribution
to the Company in the form of cash in amount equal to such deficiency. Should there be an Estimated NWC, the Company may make a
distribution to Staluppi of return of capital in the form of cash in amount equal to such surplus.

 

    3

     

    

 

1.5 Payment
of Purchase Price. At the Closing, and utilizing the Estimated NWC, LMP shall deliver to Staluppi, by wire transfer of immediately
available funds to the designated account or accounts of Staluppi, an amount equal to the Purchase Price.

 

1.6 Post-Closing
True-Up of Calculation of Company’s Net Working Capital and Pre-Closing Un-booked Liabilities; Final Payment.

 

(a) Not
more than 60 days following the Closing Date, LMP shall prepare and provide a statement of the final calculation of the
Company’s Net Working Capital (“Final NWC Statement”) as of the Adjustment Calculation Time (“Final
NWC”). The Final NWC, as proposed by LMP under this Section 1.6(a), shall be deemed for purposes of this Section
1.6 to be the “Final Adjusted NWC,” and shall be final and binding on all Parties, unless Staluppi timely
delivers to LMP an Objection Notice in accordance with Section 1.6(b).

 

(b) In
the event that Staluppi disputes the Final Adjusted NWC, Staluppi shall notify LMP in writing (the “Objection Notice”)
of the amount, nature and basis of such dispute, within 30 days after delivery of the Final NWC Statement in accordance
with Section 1.6(a). Any such Objection Notice shall specify those items or amounts as to which Staluppi disagrees, and
Staluppi shall be deemed to have agreed with all other items and amounts contained in the Final NWC Statement. In the event
of such a dispute, LMP and Staluppi shall first negotiate in good faith to reach agreement on each disputed item or amount. If
LMP and Staluppi reach a final resolution on the Final NWC Statement within 15 days after LMP’s receipt of the Objection
Notice (or within any additional period as mutually agreed to between LMP and the Staluppi), then the Final NWC Statement agreed
upon by LMP and Staluppi shall be deemed for purposes of this Section 1.6 to be the “Final NWC Statement” and
shall be final and binding on all Parties.

 

(c) If
LMP and Staluppi are unable to resolve the dispute within 15 days after delivery of the Objection Notice, then any remaining
items or amounts in dispute shall be submitted to an independent nationally recognized accounting firm selected in writing by Staluppi
and LMP or, if Staluppi and LMP fail or refuse to select a firm within 10 days after written request therefor by Staluppi
or LMP, such an independent nationally recognized accounting firm shall be selected in accordance with the rules of the American
Arbitration Association, New York office of the American Arbitration Association (the “Neutral Accountant”).
All determinations and calculations under this Section 1.6 shall consider only those items or amounts that are set forth
in the Objection Notice and remain in dispute, shall be a value that is between LMP’s calculation delivered under Section
1.6 and Staluppi’s calculation delivered under Section 1.7(c), shall be in writing and shall be delivered to LMP
and Staluppi as promptly as practicable. Absent fraud or manifest error, the Adjusted Purchase Price Statement as finally determined
by the Neutral Accountant shall be deemed for purposes of this Section 1.6 to be the “Final NWC Statement” and
shall be final and binding on all Parties. In determining the Final NWC Statement, the Neutral Accountant shall act as an expert
and not as arbitrator. A judgment on the determination made by the Neutral Accountant pursuant to this Section 1.6 may be
entered in and enforced by any court having jurisdiction thereover.

 

    4

     

    

 

(d) The
fees and expenses of the Neutral Accountant in connection with the resolution of disputes under Section 1.6(c) shall be
borne by Staluppi, on the one hand, and LMP, on the other hand, in proportion to the amounts by which the proposals of LMP and
Staluppi differed from the Neutral Accountant’s final determination.

 

(e) The
amount, if any, by which the NWC reflected in the Final NWC Statement is less than the Target NWC is the “Final NWC Deficiency,”
and the amount, if any, by which such Net Working Capital is greater than the Target NWC is the “Final NWC Surplus.”
Should there be an Final NWC Deficiency, the Staluppi shall, on the 2rd Business Day following the determination
of the Final NWC Statement, deliver an additional capital contribution to the Company in the form of cash in amount equal to such
deficiency. Should there be an Final NWC Surplus, the Company shall, on the 2rd Business Day following the determination
of the Final NWC Statement, make a distribution of return of capital to the Staluppi in the form of cash in amount equal to such
surplus.

 

(f) The
Parties agree that the procedures set forth in this Section 1.6 shall be the sole and exclusive method for resolving any
disputes with respect to the determination of the Final NWC Statement; provided, that, this provision shall not prohibit
LMP or Staluppi from instituting litigation to enforce the determination of the Neutral Accountant and shall not limit any remedy
of any Person under Article 4.

 

(g) By
way of clarification, the determination of Final NWC shall occur after the Closing Date and shall not delay or hinder LMP’s
delivery to Staluppi of the Purchase Price at Closing.

 

1.7 Physical
Inventories. The classification and valuation of the Manufacturer Parts Inventory and Miscellaneous Inventories shall be established,
in accordance with the applicable provisions hereof, by a physical inventory count conducted by an independent inventory service
acceptable to LMP and Staluppi. The physical inventory count shall be taken as close as practicable to the Closing Date, but no
later than 2 days before the Closing Date, and will be adjusted to reflect purchases and sales of the Manufacturer Parts
and Miscellaneous Inventories between the date of such physical inventory count and the Closing Date. Staluppi agrees that no such
additions and deductions shall be made in such inventory except in the ordinary course consistent with past practices and, further,
shall cause the Company to keep its usual and adequate records of such additions and deductions, which records shall be made available
to LMP for review and verification. Staluppi and LMP agree to share equally in the cost of the physical inventory conducted by
the independent inventory service pursuant to this Section 1.7.

 

1.8 Withholding
Taxes. LMP shall be entitled to deduct and withhold from any amounts otherwise payable to Staluppi under this Agreement, by
placing into escrow such amounts that a Governmental Authority requires LMP to deduct and withhold under an applicable Legal Requirement.
To the extent that any amount is to be placed into escrow it shall be treated for all purposes of this Agreement as having been
paid to Staluppi.

 

1.9 Non-Audited
Interim Financials. Within 30 days after the Effective Date, the Staluppi shall provide to the LMP (a) a CPA-prepared
quality of earnings report and (b) the following CPA-prepared financial statements as of the end of the 3rd quarter
2020: profit and loss statement, cash-flow statement, and balance sheet. Such financial statements shall be prepared according
to GAAP.

 

    5

     

    

 

Article
2. REPRESENTATIONS AND WARRANTIES OF STALUPPI.

 

On or before the 7th
day after the Effective Date (the “Disclosure Date”), Staluppi shall deliver to LMP a Disclosure Letter
that compiles all of the disclosure schedules (including related information and documents) described herein. In the event that
Staluppi fails to deliver the Disclosure Letter by the Disclosure Date, then the Due Diligence Period (as defined below) shall
be extended by the number of days between the Disclosure Date and the date Staluppi delivers the Disclosure Letter. Staluppi represents
and warrants to LMP that the statements contained in this Article 2 are correct and complete as of the Effective
Date, except as set forth in the schedules included in the Disclosure Letter, and Staluppi acknowledges that LMP is relying on
the following representations and warranties in entering into this Agreement. The disclosure schedules compiled in the Disclosure
Letter will be arranged in pages or paragraphs corresponding to the lettered and numbered paragraphs contained in this Article
2.

 

2.1 Capacity.
Staluppi has full legal right, power, capacity and authority to execute, deliver and perform his obligations pursuant to this Agreement
and to execute, deliver and perform his obligations under each instrument, document or agreement required hereby to be executed
and delivered by Staluppi at, or prior to, the Closing.

 

2.2 Enforceability.
This Agreement has been duly and validly executed and delivered by Staluppi and constitutes the legal, valid and binding obligation
of Staluppi, enforceable against Staluppi in accordance with its terms, subject to Creditors’ Rights.

 

2.3 Intentionally
Omitted

 

2.4 Consents;
Absence of Conflicts. Except for filings under the HSR Act or any other applicable antitrust or competition Legal Requirements,
and as otherwise provided in Schedule 2.4 of the Disclosure Letter, neither the execution and delivery of this Agreement
or any other Transaction Document by Staluppi, nor the consummation of the Contemplated Transactions or compliance by Staluppi
and the Company Group Entities with any of the provisions hereof or thereof, will (a) violate or breach the terms of, cause a default
under, conflict with, result in the loss by the Company Group Entities of any rights or benefits under, impose on the Company Group
Entities any additional or greater burdens or obligations under, create in any other Person additional or greater rights or benefits
under, create in any other Person the right to accelerate, terminate, modify or cancel, require any notice or consent or give rise
to any preferential purchase right, right of first refusal, right of first offer or similar right under (i) any applicable Legal
Requirement, (ii) the Organizational Documents of the Company Group Entities or (iii) any Material Contract to which a Company
Group Entity is a party or by which a Company Group Entity, or any of its properties, is bound, (b) result in the creation or imposition
of any Lien (other than a Permitted Lien) on any Company Group Entity Assets or any Membership Interest, including the Acquired
held by Staluppi, (c) result in the cancellation, forfeiture, revocation, suspension or adverse modification of any Company Group
Entity Asset or any Membership Interest held by Staluppi, or any existing consent, approval, authorization, license, permit, certificate
or order of any Governmental Authority, or (d) with the passage of time or the giving of notice or the taking of any action of
any third party have any of the effects set forth in clauses (a), (b) or (c) of this Section 2.4. The Company Group Entities
are not required to obtain any consent from any Governmental Authority or any other Person or provide any notice to any Governmental
Authority or any other Person in connection with the consummation of the Contemplated Transactions. All such consents or notices
have been obtained or given and have been furnished in writing to LMP, or will be obtained or given at or prior to Closing. Notwithstanding
anything herein to the contrary, it is understood that the transfer of membership interest contemplated in this Agreement may require
the consent of the AAG Subsidiaries third-party landlords, lenders and motor vehicle manufacturers/distributors, in addition to
the N.Y.S Department of Motor Vehicles, and Staluppi and LMP agree to cooperate as reasonably required in order to obtain these
consents (the “Consents”).

 

    6

     

    

 

2.5 Organization;
Good Standing. The Company Group Entities are legal entities duly formed, validly existing and in good standing under the laws
of their jurisdiction or organization. Staluppi has furnished to LMP true and complete copies of the Organizational Documents for
the Company Group Entities, each as presently in effect.

 

2.6 Membership
Interest Ownership. Staluppi is the sole record and beneficial owner of all issued and outstanding AAG Membership Interests,
free and clear of all Liens, other than restrictions on transfer that may be imposed by state or federal securities laws. By way
of clarification, the Acquired Interest must not be subject to any Liens.

 

2.7 Capitalization;
Subsidiaries.

 

(a) Schedule 2.7(a)
of the Disclosure Letter will set forth a true and complete list that accurately reflects all of the Company’s Interests
in the Company Group Entities and the holder thereof. All such Interests in the Company Group Entities have been duly authorized,
are validly issued and are fully paid and non-assessable and were not issued in violation of, and are not subject to, any preemptive
rights, rights of first refusal, rights of first offer, purchase options, call options or other similar rights of any Person. There
are no Interests issued or outstanding in the Company Group Entities other than as set forth on Schedule 2.7(a) of
the Disclosure Letter.

 

(b) Except
as set forth in Schedule 2.7(b) of the Disclosure Letter, there are no Contracts (including options, warrants, calls, puts
and preemptive rights) obligating the Company Group Entities to: (i) issue, sell, pledge, dispose of or encumber any Interests
in any Company Group Entity; (ii) redeem, purchase or acquire in any manner any Interests in any Company Group Entity; or (iii)
make any dividend or distribution of any kind with respect to any Interests in any Company Group Entity.

 

(c) Except
as set forth in Schedule 2.7(c) of the Disclosure Letter, there are no outstanding or authorized equity appreciation, phantom
equity, profit participation, or similar rights affecting any of the Interests of any Company Group Entity. There are no voting
trusts, proxies, or other equity holder or similar agreements or understandings with respect to the voting of any Interests of
any Company Group Entity.

 

(d) Except
as set forth in Schedule 2.7(d) of the Disclosure Letter, there are no, and there have not been any, Persons or joint ventures
in which any Company Group Entity owns, or has owned, of record or beneficially, any direct or indirect (through a Subsidiary or
otherwise) Interest. There are no outstanding obligations of any Company Group Entity to provide funds or make any investment (in
either case, in the form of a loan, capital contribution, purchase of an Interest (whether from the issuer or another Person) or
otherwise) in, any other Person.

 

    7

     

    

 

2.8 Financial
Statements. Schedule 2.8 of the Disclosure Letter will consist of copies of (a) the audited balance sheets of the
Company Group Entities as of December 31, 2018, and December 31, 2019, and the related audited statements of income and cash flows
for the years then ended (the “Company Group Annual Financial Statements”) and (b) the unaudited balance sheet
of the Company Group Entities at August 31, 2020, and the related unaudited statements of income and cash flows for the year then
ended (the financial statements described in clause (b), collectively, the “Company Group Interim Financial Statements”).
The Company Group Financial Statements and the Company Group Interim Financial Statements are referred to collectively as the “Company
Group Financial Statements.” The Company Group Annual Financial Statements have
been prepared in accordance with the standards and rules of the Public Company Accounting Oversight Board. The Company
Group Financial Statements (including any related notes thereto) (x) have been prepared in accordance with GAAP, consistently applied
throughout the periods covered thereby, except as otherwise noted therein, (y) fairly present, in all material respects, the financial
condition and results of operations of the Company as of the respective dates thereof and for the respective periods covered thereby,
subject, however, in the case of the Company Group Interim Financial Statements, to normal non-material year-end adjustments and
accruals and to the absence of notes and other textual disclosure, and (z) have been prepared from, and are in accordance with,
the books and records of the Company Group entities.

 

2.9 Absence
of Changes. Since December 31, 2019, and except as set forth in Schedule 2.9 of the Disclosure Letter:

 

(a) the
Business has been operated and maintained in the Ordinary Course of Business of the Company Group Entities, except to the extent
affected by Covid-19 Conditions;

 

(b) there
has not been any damage, destruction or loss to any portion of the Company Group Assets, whether covered by insurance or not, having
a replacement cost of more than $100,000 for any single loss or $400,000 for all such losses;

 

(c) other
than in connection with the Contemplated Transactions, including the AAG Reorganization, there has been no merger or consolidation
of any Company Group Entity with any other Person or any acquisition or disposition by any Company Group Entity of any Interests
or business of any other Person or any agreement with respect thereto;

 

(d) there
has been no declaration, setting aside or payment of any dividend on, or any other distribution with respect to, the Interests
in any Company Group Entity;

 

(e) there
has been no undisclosed borrowing of funds, agreement to borrow funds, guaranty or agreement to maintain the financial position
of any Person or other incurrence of Debt by any Company Group Entity, except in the ordinary course of Business and/or pursuant
to the Federal Paycheck Protection Program;

 

    8

     

    

 

(f) no
Company Group Entity has established or materially amended any Plan or entered into or materially amended any other employment,
consulting, change in control, retention, severance or indemnification agreement or an agreement with respect to a bonus (nor amended
any such agreement) with any Person, nor has any Company Group Entity incurred or entered into, or become bound by, any new collective
bargaining agreement or other obligation to or Contract with any labor organization or employee representative;

 

(g) there
has been no actual, pending or, to the Knowledge of Staluppi, threatened adverse change in the relationship of any Company Group
Entity with the Manufacturer or any other material customer, supplier, distributor or sales representative of the Business;

 

(h) there
has been no increase in the compensation or benefits provided, outside the Ordinary Course of Business, or to be provided, outside
Ordinary Course of Business, to any manager, director, officer, employee or contractor of any Company Group Entity;

 

(i) there
has been no payment by any Company Group Entity to any manager, director, officer, employee, contractor or holder of any Interest
in any Company Group Entity, or any Affiliate of any such Person or of any Company Group Entity (whether as a loan or otherwise),
except regular compensation and usual benefits payments in the Ordinary Course of Business of the Company Group Entities;

 

(j) no
Company Group Entity has entered into any Contract with or relating to any manager, director, officer, equity holder, employee
or consultant of any Company Group Entity or any Affiliate of the foregoing;

 

(k) each
Company Group Entity has promptly paid and discharged current liabilities when due and consistent with past practices except where
disputed in good faith by appropriate proceedings;

 

(l) Company
Group Entity has not mortgaged, pledged or subjected any Company Group Assets to any Lien except Permitted Liens, or acquired
any assets except for assets acquired in the Ordinary Course of Business of the Company Group Entities;

 

(m) no
Company Group Entity has discharged or satisfied any Lien, or paid any obligation or liability (fixed or contingent), except in
the Ordinary Course of Business of the Company Group Entities and that, in the aggregate, would not be material to the Company
Group Entities;

 

(n) no
Company Group Entity has canceled or compromised any Debt or Claim or amended, canceled, terminated, relinquished, waived or released
any Contract or right except in the Ordinary Course of Business of the Company Group Entities and that, in the aggregate, would
not be material to the Company Group Entities;

 

(o) no
Company Group Entity has made or committed to make any capital expenditures or capital additions or betterments in excess of $250,000
individually or $400,000 in the aggregate;

 

    9

     

    

 

(p) no
Company Group Entity has granted any license or sublicense of any rights under or with respect to any Intellectual Property;

 

(q) no
Company Group Entity has instituted or settled any material legal actions, suits or other legal proceedings; and

 

(r) no
Company Group Entity has sold or leased any of its assets (other than any vehicle inventory sales or leases in the Ordinary Course
of Business for fair market value).

 

There is no Contract
to take any of the foregoing actions set forth in this Section 2.9, except as expressly permitted by this Agreement.

 

2.10 Affiliate
Transactions. Schedule 2.10 of the Disclosure Letter will describe all services provided, and assets owned, licensed
to or otherwise held, by Staluppi or any of his/its respective Affiliates (other than any post-AAG Reorganization Company Group
Entity), that are or were made available or provided to or used by any Company Group Entity or the Business within the 1-year
period preceding the Closing Date. From and after the Closing Date, no Company Group Entity will be obligated to pay any amounts
to Staluppi or any of his respective Affiliates (other than any post-AAG Reorganization Company Group Entity), and Staluppi nor
any of his respective Affiliates (other than any post-AAG Reorganization Company Group Entity) will be obligated to pay any amounts
to any Company Group Entity. Since December 31, 2017, no Company Group Entity (other than Staluppi) has purchased, transferred
or leased any real or personal property from or for the benefit of, paid any fee, commission, salary or bonus to or for the benefit
of, Staluppi or any of his respective Affiliates (other than any post-AAG Reorganization Company Group Entity) or any director,
manager, officer or equity holder thereof and the Company has not sold, transferred or leased any real or personal property to
Staluppi or any of his respective Affiliates (other than any post-AAG Reorganization Company Group Entity).

 

2.11 Real
Property.

 

(a) The
Company Group Entities do not own any fee interest in any real property.

 

(b) Schedule 2.11
of the Disclosure Letter will list all leases of real property (and the lands covered thereby) pursuant to which any Company Group
Entity leases real property for use in connection with the Business (all such leased real property, the “Leased Real Property”
and, all such listed leases collectively, the “Scheduled Leases”), in each case specifying the address of the
Leased Real Property, the name of the lessor and lessee, and term of each lease. Each Scheduled Lease is in full force and effect
and constitutes a binding obligation of each landlord, lessor or sublessor thereunder, enforceable against such landlord, lessor
or sublessor in accordance with its terms subject to Creditors’ Rights. No event has occurred that would constitute, or that
with the giving of notice or the passage of time or both would constitute, a default under any Scheduled Lease by a Company Group
entity or by any other party to any Scheduled Lease. The Company Group Entities validly occupy the Leased Real Property in accordance
with the terms of such lease free and clear of all Liens except Permitted Liens.

 

    10

     

    

 

(c) The
Leased Real Property constitutes all of the real property that has been used in connection with the ownership and operation of
the Business since December 31, 2017. Other than the Company Group Entities, there are no parties in possession of any portion
of any Leased Real Property as lessees, subtenants, tenants at sufferance or trespassers. The Company Group Entities have full
right and authority to use and operate all of the improvements located on the Leased Real Property. Such improvements are being
used, occupied, and maintained in all material respects by the Company Group Entities in accordance with all applicable easements,
Contracts, permits, insurance requirements, restrictions, building setback lines, covenants and reservations. Certificates of occupancy
and all other material licenses, permits, authorizations and approvals required by any Governmental Authority having jurisdiction
over the Leased Real Property have been issued for the applicable Company Group Entity’s occupancy of each of such improvements
and all such certificates, licenses, permits, authorizations and approvals have been paid for and are in full force and effect.
No casualty loss has occurred with respect to the improvements located on the Leased Real Property (the “Facilities”).
There is no pending or, to the Knowledge of Staluppi, threatened condemnation, eminent domain or similar proceeding or special
assessment affecting any of the Leased Real Property, nor is any such proceeding or assessment being contemplated. The Facilities
are free from material structural and mechanical defects (including roofs) and have been used by the Company Group Entities in
the Ordinary Course of Business and remain as of the date of this Agreement in suitable and adequate condition for such continued
use. Neither Staluppi nor any of his/its respective Affiliates have deferred maintenance of the Facilities in contemplation of
the Contemplated Transactions. All of the Leased Real Property has direct access to public roads without the use of any easement,
license or right of way.

 

(d) Staluppi
shall furnish LMP with true and complete copies of (i) all deeds, leases, title opinions, title encumbrances, title insurance policies
and surveys in the possession of Staluppi, the Company Group Entities, or any of their respective Affiliates that relate to the
Leased Real Property, together with true and complete copies of all title insurance policies and the most current survey of the
Leased Real Property and the Facilities in the possession or control of Staluppi, the Company Group Entities, or any of their respective
Affiliates, and (ii) all reports of any engineers, environmental consultants or other consultants in their possession relating
to any of the Leased Real Property or the Facilities.

 

(e) All
utilities (including water, sewer or septic, gas, electricity, trash removal and telephone service) are available to the Leased
Real Property in sufficient quantities and quality to adequately serve the Leased Real Property in connection with the operation
of the Business conducted therefrom as such operations are currently conducted thereon.

 

2.12 Personal
Property.

 

(a) Schedule 2.12(a)
of the Disclosure Letter will list (i) certain items of furniture, fixtures, and equipment or other item of tangible personal property
used or held for use by the Company Group Entities or any of their respective Affiliates in connection with the Business that is
subject to a lease (the “Leased Equipment”), and (ii) if such lease is treated as a capital lease under GAAP,
the purchase price as of the date of this Agreement for such item of Leased Equipment under the terms of the relevant lease for
such item of Leased Equipment.

 

    11

     

    

 

(b) Unless
listed on Schedule 2.12(a) of the Disclosure Letter, Schedule 2.12(b) of the Disclosure Letter will provide
a current depreciation schedule of furniture, fixtures, and equipment and other items of tangible personal property used or held
for use by the Company Group Entities in connection with the Business (the “Scheduled Personal Property”). The
Company Group Entities have good and valid title to the Scheduled Personal Property free and clear of all Liens, except Permitted
Liens.

 

(c) The
Leased Equipment, the Scheduled Personal Property and all other tangible personal property used or held for use by the Company
Group Entities in connection with the Business (together, the “Personal Property”) constitute all of the tangible
personal property necessary for the continued ownership, use and operation of the Business consistent in all material respects
with the Company Group Entities’ past practices since December 31, 2017, and with the practices of the Company Group Entities
as of the date of this Agreement.

 

(d) The
Personal Property is located on the Leased Real Property (or is in transit to the same). Each item of Personal Property has been
operated and maintained in the Ordinary Course of Business of the Company Group Entities and remains in suitable and adequate condition
for use consistent with its primary use since December 31, 2017 (or later acquisition date).

 

2.13 Permits.
Schedule 2.13 lists all New York motor vehicle dealer licenses used or held by the Company Group Entities in connection
with the ownership of the Company Group Assets and the operation of the Business (the “Scheduled Licenses”).
Except as set forth in Schedule 2.13 of the Disclosure Letter, the Scheduled Licenses are valid and in full force and
effect and no Company Group Entity is in default, and no condition exists that with notice or lapse of time or both would constitute
a default, under any of the Scheduled Licenses.

 

2.14 Contracts.

 

(a) True
and complete copies (including all amendments) of each Contract under which the liability to or burden on the Company exceeds $50,000
(each a “Material Contract” and collectively the “Material Contracts”) shall be furnished
to LMP for its review during the Due Diligence Period. Staluppi represents that each Material Contract is the legal, valid and
binding obligation of any Company Group Entity and, to the Knowledge of Staluppi, any other Person party thereto, binding and enforceable
against any Company Group Entity and, in the case of non-Affiliate counterparties, to the Knowledge of Staluppi, any other Person
party thereto, in accordance with its terms, subject to Creditors’ Rights; (ii) no Material Contract has been terminated,
and no Company Group Entity, to the Knowledge of Staluppi, is in material breach or default thereunder, and, to the Knowledge of
Staluppi, no event has occurred that with notice or lapse of time, or both, would constitute a material breach or default, or permit
termination, modification in any manner adverse to any Company Group Entity or acceleration thereunder; (iii) no party has asserted
or has (except by operation of Legal Requirements) any right to offset, discount or otherwise abate any amount owing under any
Material Contract except as expressly set forth in such Material Contract; and (iv) there are no material waivers or consents regarding
any Material Contract that have not been disclosed in writing to LMP.

 

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2.15 Intellectual
Property.

 

(a) Schedule 2.15(a)
of the Disclosure Letter identifies all patents, patent applications, registered trademarks, trademark applications, copyright
registrations, copyright applications and Internet domain names owned by any Company Group Entity (the “Registered Intellectual
Property”). The Registered Intellectual Property together with all other Intellectual Property owned or used by any Company
Group Entity (collectively, the “Company Intellectual Property”) constitute all Intellectual Property necessary
for the continued operation of the Business consistent in all respects with the past practices of the Business. In addition, Schedule 2.15(a)
of the Disclosure Letter separately identifies all names or marks used by Staluppi or any of his Affiliates that are similar to
a name or mark used by any Company Group Entity.

 

(b) The
Company Group Intellectual Property is valid, subsisting, and enforceable and the Company Group Entities have exclusive ownership
of, or valid licenses to use, as applicable, all Intellectual Property, free and clear of all Liens, other than Permitted Liens,
currently used or held for use by any Company Group Entity. Each item of Company Intellectual Property will continue to be owned
or licensed by the Company Group Entities on identical terms and conditions immediately following the consummation of the Contemplated
Transactions, as are in effect immediately prior to such consummation.

 

(c) Except
as disclosed on Schedule 2.15(c) of the Disclosure Letter, no Company Group Entities has been a party to any judicial
or administrative proceeding alleging, nor has Staluppi or his/its Affiliates been notified in writing of any allegation of, any
infringement, misappropriation or violation of any item of the Company Group Intellectual Property, or challenging the validity
or ownership of any item of the Company Group Intellectual Property, whether owned by the Company Group Entities or any other Person.
There has been no infringement, misappropriation or violation (or facts that are reasonably likely to give rise to infringement,
misappropriation or violation) by the Company Group Entities of any Intellectual Property of other Persons or, to the Knowledge
of Staluppi, any infringement, misappropriation or violation (or facts that are reasonably likely to give rise to infringement,
misappropriation or violation) by any other Person of any of the Company Group Intellectual Property. No Company Group Entity is
a party or subject to any settlement agreement involving Intellectual Property or any outstanding Judgment, stipulation or agreement
restricting the use of Intellectual Property by the Company Group Entities.

 

(d) Each
Company Group Entity has taken reasonable measures to protect the confidentiality of the trade secrets and confidential information
of such Company Group Entity with respect to the Business. None of the trade secrets or confidential information of any Company
Group Entity relating to the Business has been disclosed or provided to anyone except to employees and contractors of any Company
Group Entity pursuant to signed, written agreements which impose a duty of confidentiality on such employees and contractors with
respect to such trade secrets and confidential information.

 

(e) The
Company Group Entities own, lease, or license all computer systems that are necessary for the operations of the Business. In the
past 12 months, there has been no failure or other material substandard performance of any computer systems which has caused
any material disruption to the Business. The Company Group Entities have taken commercially reasonable steps to provide for the
back-up and recovery of data and information, has commercially reasonable disaster recovery plans, procedures and facilities, and,
as applicable, has taken commercially reasonable steps to implement such plans and procedures. The Company Group Entities have
taken commercially reasonable actions to protect the integrity and security of the computer systems and the software information
stored thereon from unauthorized use, access or modification by third parties.

 

    13

     

    

 

2.16 Accounts
Receivable. Each of the Accounts Receivable arose in the Ordinary Course of Business of the Company Group Entities and represents
the genuine, valid and legally enforceable obligation of the account debtor (subject only to Creditors’ Rights) and no contra
account, set-off, defense, counterclaim, allowance or adjustment (other than discounts for prompt payment shown on the invoice)
has been asserted or, to the Knowledge of Staluppi, is threatened by any of the account debtors of such Accounts Receivable. To
the Knowledge of Staluppi, none of the account debtors of the Accounts Receivable is involved in a bankruptcy or insolvency proceeding
or is generally unable to pay its debts as they become due. The Company Group Entities have good and valid title to the Accounts
Receivable free and clear of all Liens, except Permitted Liens. Since December 31, 2019, other than in the ordinary course, no
goods or services, the sale or provision of which gave rise to any Accounts Receivable, have been returned or rejected by any account
debtor or lost or damaged prior to receipt thereby. Since December 31, 2019, no Company Group Entity has written off any Accounts
Receivable as uncollectible.

 

2.17 Brokers’
Fees; Expenses.

 

(a) Except
as set forth in Schedule 2.17(a) of the Disclosure Letter, neither Staluppi, nor any of his Affiliates has any Liability
or obligation to pay any fees or commissions to any broker, finder, or agent in respect of the Contemplated Transactions for which
any Company Group Entity or LMP could become liable or obligated.

 

(b) Except
as set forth in Schedule 2.17(b) of the Disclosure Letter, no Company Group Entity has Liability or obligation to pay any
fees or expenses of attorneys, investment bankers, accountants or other advisors or service providers in connection with the Contemplated
Transactions; and there is no Basis for any action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand
against any Company Group Entity or LMP giving rise to Liability associated therewith.

 

2.18 No
Undisclosed Liabilities. To the best of Staluppi’s knowledge, neither any Company Group Entity nor the Business has any
Liability (and there is no Basis for any present or future Claims against any Company Group Entity or the Business giving rise
to any Liability), other than Liabilities set forth on the face of the Company Group Interim Balance Sheet (rather than any notes
thereto); Liabilities that have arisen after the date of the Company Group Interim Balance Sheet in the Ordinary Course of Business
of the Company Group Entities (none of which results from, arises out of, relates to, is in the nature of, or was caused by any
breach of contract, breach of warranty, tort, infringement or violation of Legal Requirements); or Liabilities set forth on Schedule 2.18.

 

2.19 Legal
Compliance. To Staluppi’s Knowledge, each Company Group Entity is, and at all times since its formation has been, in
compliance in all material respects with all applicable Legal Requirements.

 

    14

     

    

 

2.20 Taxes.

 

(a) all
Tax Returns required to be filed by or with respect to any Company Group Entity have been duly and timely filed with the appropriate
Governmental Authority, and each such Tax Return is true, correct and complete;

 

(b) all
Taxes owed by any Company Group Entity (or for which any Company Group Entity may be liable) that are or have become due have been
timely paid in full, whether disputed or not, and whether or not shown on any Tax Return;

 

(c) all
Tax withholding and deposit obligations imposed on or with respect to any Company Group Entity or its employees (or for which any
Company Group Entity may otherwise be liable) have been satisfied in full;

 

(d) there
are no Liens (other than Liens for current period Taxes that are not yet due and payable) on any of the Company Group Assets or
the AAG Membership Interests that are attributable to any Tax Liability or payment obligation;

 

(e) there
are no Claims pending against any Company Group Entity for any Taxes, and no assessment, deficiency or adjustment has been asserted,
proposed or threatened in writing with respect to any Taxes or Tax Returns of or with respect to any Company Group Entity;

 

(f) no
Tax audits or administrative or judicial proceedings are being conducted or have been threatened in writing with respect to any
Company Group Entity;

 

(g) true,
correct and complete copies of all material Tax Returns filed by or with respect to each Company Group Entity during the past 3
years, and all material correspondence with a Governmental Authority relating to such Tax Returns or Taxes due from or with
respect to any Company Group Entity, have been made available to LMP;

 

(h) there
are no agreements, waivers or other arrangements in force or effect providing for an extension of time with respect to the filing
of any Tax Return of or with respect to any Company Group Entity or the assessment or collection of any Tax of or with respect
to any Company Group Entity;

 

(i) no
Company Group Entity is a party to or bound by any Tax allocation, sharing or indemnity agreement or arrangement with any Person;

 

(j) no
Claim has ever been made by a Governmental Authority in a jurisdiction in which a Company Group Entity does not file Tax Returns
or pay Taxes that any Company Group Entity is or may be required to file a Tax Return or pay Taxes in that jurisdiction;

 

(k) no
Company Group Entity has any material property or obligation, including uncashed checks to vendors, customers, or employees, non-refunded
overpayments, or unclaimed subscription balances, that is escheatable or reportable as unclaimed property to any state or municipality
under any applicable escheatment or unclaimed property laws;

 

    15

     

    

 

(l) no
power of attorney that is currently in force has been granted with respect to any matter relating to Taxes that could affect any
Company Group Entity;

 

(m) all
of the Company Group Assets that are subject to property Tax have been properly listed and described on the property Tax rolls
for the Tax units in which the Company Group Assets are located and no portion of the Company Group Assets constitutes omitted
property for property Tax purposes; and

 

(n) neither
LMP nor any Company Group Entity will be held liable for any unpaid Taxes that are or have become due on or prior to the Closing
Date as a successor or transferee, by statute, contract or otherwise, as a result of the transfer of the Acquired Interests pursuant
to this Agreement.

 

2.21 Inventory.
Except as set forth in Schedule 2.21 of the Disclosure Letter and except for Permitted Liens, each Company Group Entity
owns its inventory free and clear of all Liens except Permitted Liens and floor plan liens on vehicle inventory. None of such inventory
is covered by any financing statements except those filed in connection with Permitted Liens. Such inventory is located at the
Facilities and none of such inventory is subject to any consignment, bailment, warehousing or similar arrangement. The inventories
of the Company Group Entities reflected on the Company Group Interim Financial Statements consist of items of a quality and quantity
usable and saleable in the Ordinary Course of Business of the Company Group Entities, as historically conducted. The method of
valuing such inventories on the Company Group Interim Financial Statements is consistent with that used in respect of the beginning
and end of each of the 2 most recent fiscal years of the Company Group Entities. The inventories of the Company Group Entities
are not excessive in kind or amount in light of the business done or reasonably expected to be done by it. The values at which
such inventories are carried reflect the inventory valuation policy applied by each Company Group Entity of stating inventory at
the lower of actual cost (first in-first out method) or realizable market value in accordance with GAAP.

 

2.22 Litigation.
Except as set forth in Schedule 2.21 of the Disclosure Letter, there are no actions, suits, charges, investigations or proceedings
pending or, to the Knowledge of Staluppi, threatened at law or in equity, or before or by any Governmental Authority or before
any arbitrator of any kind, against any Company Group Entity or any of its Affiliates that affect or would materially affect the
Business, the Company Group Assets or the consummation of the Contemplated Transactions.

 

2.23 Product
and Service Warranty.

 

(a) To
Staluppi’s Knowledge, each product sold, leased, delivered or installed or service performed by any Company Group Entity
prior to the Closing Date has complied with and conformed to all applicable Legal Requirements, contractual commitments and all
applicable warranties of such Company Group Entity and the applicable Manufacturer.

 

(b) All
outstanding Claims, whether in contract or tort, for defective or allegedly defective products or workmanship pending or, to the
Knowledge of Staluppi, threatened against any Company Group entity, which are not covered by Insurance or indemnified and defended
by a motor vehicle manufacturer/distributor, are listed or described on Schedule 2.23(b) of the Disclosure Letter.

 

    16

     

    

 

2.24 Employees;
Employee Relations.

 

(a) Schedule 2.24(a)
of the Disclosure Letter identifies for each employee who provides services to any Company Group entity, his or her (i) name, job
title, employing entity, original hire date, service date and status as exempt or non-exempt under the FLSA and any other applicable
Legal Requirement, (ii) current annualized salary (or rate of pay) and other compensation (including bonus, additional forms of
pay, profit-sharing, pension benefits and other compensation for which he or she is eligible) paid during 2019 and paid or payable
for 2020 to such Person, (iii) leave status (including type of leave, duration of leave and expected return date) and (iv) details
of any applicable visa.

 

(b) Those
individuals set forth on Schedule 2.24(a) of the Disclosure Letter represent the entirety of the individuals who are employed
or otherwise engaged in conjunction with the Business. Except as accrued as a current Liability on the Company Group Interim Balance
Sheet, all wages, bonuses and other compensation, if any, due and payable as of the Closing Date to all present and former employees
and contractors of any Company Group Entity have been paid in full, or will be paid in full, to such employees and contractors
prior to the Closing Date. The compensation and benefits (including vacation and other paid time off benefits) paid, payable or
provided with respect to all employees and contractors of any Company Group Entity have been reflected in the Company Group Financial
Statements for the periods covered thereby.

 

(c) Except
as set forth on Schedule 2.24(c) of the Disclosure Letter, no Company Group entity is a party to, nor has it ever been bound
by, the terms of any collective bargaining agreement or any other Contract with any labor union or representative of employees,
and no such agreements are being negotiated. Except as set forth on Schedule 2.24(c) of the Disclosure Letter no labor union
or representative thereof claims to or, to the Knowledge of Staluppi, is seeking to represent any such employees.

 

(d) Except
as set forth on Schedule 2.24(d) of the Disclosure Letter, no Company Group Entity has entered into, and is bound by any
severance, retention, bonus, change of control, termination pay or similar Contract with any Person, either express or implied,
and no Company Group Entity is currently negotiating, and it does not have any outstanding offer with respect to, any such agreement
or matter.

 

(e) Except
as set forth on Schedule 2.24(e) of the Disclosure Letter, no legal proceedings, charges, complaints, grievances, investigations
or similar actions have been commenced with respect to any Company Group Entity under any Legal Requirement affecting or relating
to the employment relationship, and no proceedings, charges, complaints, grievances, investigations, audits or similar actions
are, to the Knowledge of Staluppi, threatened under any such Legal Requirement and no facts or circumstances exist which could
give rise to any such proceedings, charges, complaints, grievances, investigations or similar actions. Except as set forth on Schedule
2.24(e) of the Disclosure Letter, no Governmental Authority has issued a Judgment or finding with respect to the labor and
employment practices (including practices relating to discrimination, wage payments, recordkeeping, employee classification and
immigration) of any Company Group Entity..

 

    17

     

    

 

(f) To
the Knowledge of Staluppi, each Company Group Entity is, and since the date of its formation has been, in compliance with any applicable
Legal Requirement relating to the employment of labor, including labor and employment practices, terms and conditions of employment,
wages and hours. No Company Group Entity is in violation of any Legal Requirement concerning retention or classification of independent
contractors. Each employee and contractor of each Company Group Entity is lawfully authorized to work in the United States.

 

2.25 Employee
Benefit Matters.

 

(a) Schedule 2.25(a)
of the Disclosure Letter, includes a true and complete list of each of the following (collectively referred to as the “Plans,”
and individually referred to as a “Plan”) that is sponsored, maintained or contributed to or by any Company
Group Entity or any ERISA Affiliates of any Company Group Entity or with respect to which any Company Group Entity could have any
Liability, or has been so sponsored, maintained or contributed to within 6 years prior to the Closing Date by any Company
Group Entity or any ERISA Affiliates of any Company Group Entity:

 

(i) each
“employee benefit plan,” as such term is defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), (including employee benefit plans, such as foreign plans, which are not subject
to the provisions of ERISA); and

 

(ii) each
personnel policy, equity option plan, equity appreciation rights plan, restricted equity plan, phantom equity plan, equity based
compensation arrangement, collective bargaining agreement, bonus plan or arrangement, incentive award plan or arrangement, vacation
policy, severance pay plan, policy or agreement, deferred compensation agreement or arrangement, executive compensation or supplemental
income arrangement, change in control plan or agreement, retention plan or agreement, fringe benefit plan or arrangement, consulting
agreement, employment agreement and each other employee benefit plan, agreement, arrangement, program, practice or understanding
which is not described in Section 2.25(a)(i).

 

(b) Staluppi
has furnished to LMP true, correct and complete copies of each of the Plans, and related trusts and services agreements, if applicable,
in each case, including all amendments thereto. Staluppi has also furnished to LMP, with respect to each Plan and to the extent
applicable: (i) the 3 most recent annual or other reports filed with each Governmental Authority and all schedules thereto, (ii)
the insurance contract and other funding agreement, and all amendments thereto, (iii) the most recent summary plan description,
scheme booklet and all announcements (including all summaries of material modifications thereto), (iv) the most recent audited
accounts and actuarial report or valuation required to be prepared under any applicable Legal Requirement, (v) the most recent
determination letter or opinion letter issued by the Internal Revenue Service and (vi) copies of all material notices, letters
or other correspondence from any Governmental Authority.

 

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(c) No
Company Group Entity nor any ERISA Affiliates of any Company Group Entity contributes to, or has any obligation to contribute to,
or has at any time within 6 years prior to the Closing Date contributed to or had an obligation to contribute to, and no
Plan is (i) a “multiemployer plan” within the meaning of Section 3(37) of ERISA or (ii) a plan subject to Title IV
of ERISA, Section 302 of ERISA or Section 412 of the Code.

 

(d) each
Company Group Entity and its ERISA Affiliates have performed all obligations, whether arising by operation of any Legal Requirement
or by contract, required to be performed by it or them in connection with the Plans, and there have been no defaults or violations
by any other party to the Plans;

 

(e) Each
of the Plans intended to be qualified under Section 401(a) of the Code (i) satisfies the requirements of such Section, (ii) is
maintained pursuant to a prototype document approved by the Internal Revenue Service, and is entitled to rely on a favorable opinion
letter issued by the Internal Revenue Service with respect to such prototype document, or has received a favorable determination
letter from the Internal Revenue Service regarding such qualified status, (iii) has been amended as required by any applicable
Legal Requirement, and (iv) has not been amended or operated in a way which would adversely affect such qualified status;

 

(f) there
are no Claims pending (other than routine Claims for benefits) or, to the Knowledge of Staluppi, threatened against, or with respect
to, any of the Plans or their assets; and

 

(g) the
execution and delivery of this Agreement and the consummation of the Contemplated Transactions will not (i) require any Company
Group Entity or any of its ERISA Affiliates to make a larger contribution to, or pay greater compensation, payments or benefits
under, any Plan or under any Contract disclosed under Section 2.24 than they otherwise would, in the absence of the
execution and delivery of this Agreement or the consummation of the Contemplated Transactions, whether or not some other subsequent
action or event would be required to cause such payment or provision to be triggered, or (ii) create or give rise to any additional
vested rights or service credits under any Plan or under any Contract disclosed under Section 2.24.

 

(h) Without
limiting anything in this Section 2.25, to Staluppi’s Knowledge, each Company Group Entity has complied with the continuation
coverage requirements of §601 et seq. of ERISA and §4980B of the Code (“COBRA”), including the requirements
related to COBRA contained in the American Recovery and Reinvestment Act of 2009. There are no Claims pending or, to the Staluppi’s
Knowledge, threatened, alleging any breach of the terms of any Plan or of any fiduciary duties thereunder or violation of any Legal
Requirement with respect to any Plan (other than routine Claims for benefits made in the ordinary course of plan administration
for which plan administrative procedures have not been exhausted). No Person is or could be subject to any adverse tax consequences
under §409A of the Code.

 

(i) To
Staluppi’s Knowledge, in connection with the consummation of the Contemplated Transactions, no payments of money or property,
acceleration of benefits, or provisions of other rights have or will be made which, in the aggregate, would be reasonably likely
to result in imposition of the sanctions imposed under Sections 280G and 4999 of the Code (determined without regard to the exceptions
contained in Sections 280G(b)(4) and 280G(b)(5) of the Code), whether or not some other subsequent action or event would be required
to cause such payment, acceleration or provision to be triggered.

 

    19

     

    

 

2.26 Environmental
Matters.

 

(a) The
Business and the Company Group Assets are and, during all times while under the control of Staluppi, to the best of Staluppi’s
Knowledge, have been in compliance with all Environmental Laws and Environmental Authorizations and no material unbudgeted expenditures
are required to achieve or maintain such continued compliance with Environmental Laws and Environmental Authorizations.

 

(b) All
Environmental Authorizations required for operating the Business and the Company Group Assets as they are currently being operated
are set forth on Schedule 2.26(b) of the Disclosure Letter, have been duly obtained, and are currently in full force
and effect, and Staluppi, the Company Group Entities or any of their other Affiliates have received any written notice that any
such Environmental Authorization will be canceled, revoked or suspended.

 

(c) There
are no Claims pending or, to the Knowledge of Staluppi, threatened under any Environmental Law against any Company Group Entity
or any of its Affiliates or the Business or the Company Group Assets, and none of Staluppi, any Company Group Entity, or any of
their other Affiliates has otherwise received notice from any Governmental Authority or other Person of alleged violation of, non-compliance
with or Liability under, any Environmental Law with respect to the Business or the Company Group Assets.

 

(d) To
Staluppi’s Knowledge, except as set forth on Schedule 2.26(d) of the Disclosure Letter, there are no current
or, to the extent occurring within the relevant time periods specified under all applicable statutes of limitations, past facts,
events, circumstances or conditions with respect to the Business or the Company Group Assets that could reasonably be expected
to form the Basis for assertion of any Environmental Liability against any owner or operator of the Business or the Company Group
Assets, and no Company Group Entity nor any of their respective Affiliates has assumed or retained by contract or operation of
law any material Liabilities under any Environmental Law or regarding any Hazardous Materials.

 

(e) To
Staluppi’s Knowledge, there has been no Release of Hazardous Materials at, on, under or from any Company Group Assets in
connection with any Company Group Entity or the Business or the operations of any Predecessor for which any investigatory, remedial,
monitoring or restoration actions required under Environmental Laws have not been performed and completed to the satisfaction of
all applicable Governmental Authorities.

 

(f) None
of Staluppi, any of the Company Group Entities, or any of their other Affiliates, has received any notice asserting an alleged
Liability or obligation under any Environmental Law with respect to investigatory, remedial, monitoring or restoration actions
at any real properties other than the real properties included among the Company Group Assets where any Company Group Entity or
any of its Affiliates or any Predecessor transported or disposed or arranged for the transport or disposal of any Hazardous Materials
and, to the Knowledge of Staluppi, there are no facts, events, circumstances or conditions that would reasonably be expected to
result in the receipt of such notice.

 

    20

     

    

 

(g) Staluppi
has furnished to LMP complete and accurate copies of all environmental audits, assessments, reports, studies, analyses and correspondence
on alleged environmental matters that are in Staluppi’s or any Company Group Entity’s, or any of their other Affiliate’s
possession or control and relating to the ownership or operation of the Business or the Company Group Assets.

 

For further clarity, Staluppi shall not
incur any Liability under this Section 2.26 related to environmental matters absent his failure to disclose such environmental
matters of which he has Knowledge.

 

2.27 Vendors
and Suppliers. Schedule 2.27 of the Disclosure Letter sets forth the 10 largest vendors and suppliers of the Business
(as operated by Staluppi, the Company Group Entities, and their respective predecessors, as applicable) (measured by aggregate
expenditures) during the fiscal year ended on December 31, 2019. To the Knowledge of Staluppi, there is no present intent of any
material vendor or supplier of the Business to discontinue or materially alter its relationship with the Business or LMP upon consummation
of the Contemplated Transactions.

 

2.28 Bank
Accounts. Schedule 2.28 of the Disclosure Letter sets forth each bank, savings institution and other financial
institution with which a Company Group Entity has an account or safe deposit box and the names of all Persons authorized to draw
thereon or to have access thereto. Neither Staluppi nor any Company Group Entity has given any revocable or irrevocable powers
of attorney or similar grant of authority to any Person relating to its business for any purpose whatsoever.

 

2.29 Insurance.
Schedule 2.29 of the Disclosure Letter sets forth a true and complete list of all policies, binders and insurance contracts
under which any of the Company Group Entities, the Business or the Company Group Assets is insured (the “Insurance Policies”).
With respect to each Insurance Policy, Schedule 2.29 of the Disclosure Letter sets forth a true and correct description
of (a) the scope of coverage, (b) the limits of liability, (c) deductibles and other similar amounts and (d) the aggregate limits
and available coverage (if less than the aggregate limits). Each of the Insurance Policies is in full force and effect, there has
been no notice of any cancellation or, to the Knowledge of Seller, any threatened cancellation of any Insurance Policy. Schedule 2.29
of the Disclosure Letter sets forth the Company Group Entity that is a named insured or loss payee, as applicable, under each Insurance
Policy, and the Insurance Policies will continue to be in full force and effect after the Initial Closing Date until their ordinary
expiration date. There is no claim by any Company Group Entity pending under any of such policies or bonds as to which coverage
has been questioned, denied or disputed by the underwriters of such policies or bonds. To the Knowledge of Seller, none of the
Company Group Entities’ insurance provider(s) intend to materially increase the premiums payable by any Company Group Entity
or non-renew or materially and negatively revise the material terms of any of the Insurance Policies upon their expiration. True
and complete copies of each Insurance Policy have been furnished to LMP.

 

2.30 Books
and Records. All Books and Records are located at the premises of the Business to which such books and records primarily relate,
have been maintained substantially in accordance with any applicable Legal Requirement, and comprise all of the Books and Records
relating to the ownership and operation of the Business and the Company Group Assets.

 

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2.31 Assets
Necessary to the Business. At and following the Closing Date, the Company Group Assets (a) will constitute all of the assets
necessary or required to permit the Company Group Entities to carry on the Business in substantially the same manner as presently
conducted and as conducted since December 31, 2017 by the Company Group Entities and (b) constitute all of the assets of the Company
Group Entities, other than the Excluded Assets listed in Schedule 2.31, used in the Business presently and as conducted
since December 31, 2017.

 

2.32 Debt.
Schedule 2.32 of the Disclosure Letter sets forth by category all Debt (other than vendor payables) of the Company Group
Entities, and describes any Liens on any of the Company Group Assets which secure the same such Indebtedness, in each case as of
the Closing Date (the “Scheduled Debt”). Except for the Scheduled Debt, no Company Group Entity has any Debt,
and there is no Debt related to or associated with the Company Group Assets.

 

2.33 Manufacturer
Audits. Except as set forth on Schedule 2.33 of the Disclosure Letter, as of the Effective Date, no Manufacturer is
currently conducting an audit of any Company Group Entity’s sales practices and documentation or service practices and warranty
claim documentation.

 

2.34 Manufacturers
Communications. Except as set forth on Schedule 2.33 of the Disclosure Letter, the Manufacturer has not (a) notified
any Company Group Entity of any deficiency in dealership operations for which if not cured would be deemed a Breach of the Dealer
Agreement for a manufacturer including, but not limited to, the following areas: (i) brand imaging, (ii) facility conditions; (b)
notified any Company Group Entity of the awarding or possible awarding of a franchise to an entity or entities or relocation of
an existing franchised dealership within the primary market area of the Dealership Premises.

 

2.35 Finance
& Insurance Programs. During the Due Diligence Period, a complete and accurate list and description of all programs
of any type related to credit life insurance, accident and health insurance, vehicle maintenance, vehicle service or vehicle warranty
programs extended (even if there are insurance policies, stop loss agreements or other resources available to satisfy obligations
of those programs) or sold by Company since January 1, 2014 shall be provided to LMP for their review.

 

2.36 No
Misleading Statements. This Agreement, the information and schedules referred to herein and the information that has been furnished
to LMP in connection with the Contemplated Transactions do not include any untrue statement of a material fact and do not omit
to state any material fact necessary to make the statements contained herein or therein, in light of the circumstances under which
they were made, not misleading.

 

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Article
3. REPRESENTATIONS AND WARRANTIES OF LMP.

 

LMP represents and
warrants to Staluppi that the statements contained in this Article 3 are correct and complete as of the date of this
Agreement, except as set forth in the disclosure schedules attached to a letter delivered by LMP to Staluppi within 5 days
after the Effective Date (the “LMP Disclosure Letter”). Nothing in the LMP Disclosure Letter shall be deemed
adequate to disclose an exception to a representation or warranty made herein, however, unless the LMP Disclosure Letter identifies
the exception with reasonable particularity and describes the relevant facts in reasonable detail. Without limiting the generality
of the foregoing, the mere listing (or inclusion of a copy) of a document or other item shall not be deemed adequate to disclose
an exception to a representation or warranty made herein (unless the representation or warranty has to do with the existence of
the document or other item itself). The LMP Disclosure Letter will be arranged in paragraphs corresponding to the lettered and
numbered paragraphs contained in this Article 3.

 

3.1 Organization.
LMP is a limited liability company duly incorporated, validly existing and in good standing under the laws of the State of Delaware.

 

3.2 Authority;
Enforceability. LMP has all requisite power and authority to execute and deliver each Transaction Document to which LMP is
a party and to perform LMP’s obligations thereunder. The execution and delivery of each Transaction Document to which a LMP
is a party and the performance of LMP’s obligations contemplated thereby have been duly and validly approved by all action
necessary on behalf of LMP. Each Transaction Document to which LMP is a party constitutes the legal, valid and binding obligation
of LMP enforceable against LMP in accordance with its terms, subject to Creditors’ Rights, assuming in each case that such
Transaction Document has been duly executed and delivered by each party other than LMP to such Transaction Document.

 

3.3 Absence
of Conflicts. Neither the execution and delivery by LMP of this Agreement or any other Transaction Document to which LMP is
a party, nor the consummation of the transactions contemplated hereby or thereby by LMP will violate or breach the terms of, cause
a default under or conflict with (a) any applicable Legal Requirement, (b) the Organizational Documents of LMP, or (c) any Contract
to which LMP is a party or by which it, or any of its properties, is bound, except, in each case, as would not have a material
and adverse effect on the ability of LMP to perform its obligations under this Agreement. Except for filings under the HSR Act
or any other applicable antitrust or competition Legal Requirement, no other Governmental Authority consents are necessary for
LMP’s performance hereunder.

 

3.4 Brokers’
Fees. Except as set forth in Schedule 3.4, neither LMP nor its Affiliates has any Liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the Contemplated Transactions for which Staluppi or any Company
Group Entity could become liable or obligated.

 

3.5 
Manufacturers Approval. LMP is not aware of any facts or circumstances that could reasonably be expected to be the basis
for a Manufacturer not to approve the Contemplated Transactions, including disqualifications for criminal convictions or bankruptcies
of an officer or director of LMP.

 

3.6 Financial.
LMP shall on the Closing Date have sufficient funds to consummate the Contemplated Transactions, and no portion of the funds used
by LMP to pay the Purchase Price will have been obtained through the solicitation of any individual investors in the Company and
LMP has not made any promise or representation to anyone concerning any guaranteed return on investment.

 

3.7 No
Misleading Statements. This Agreement, the information and schedules referred to herein and the information that has been furnished
to Staluppi in connection with the Contemplated Transactions do not include any untrue statement of a material fact and do not
omit to state any material fact necessary to make the statements contained herein or therein, in light of the circumstances under
which they were made, not misleading.

 

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Article
4. NATURE OF STATEMENTS AND SURVIVAL OF INDEMNIFICATIONS, GUARANTEES, REPRESENTATIONS AND WARRANTIES OF STALUPPI.

 

All statements contained
in any Schedule or certificate delivered hereunder or in connection herewith by or on behalf of any of the parties pursuant to
this Agreement shall be deemed representations and warranties by the respective parties hereunder unless otherwise expressly provided
herein. Staluppi’s obligations under Article 7 to indemnify LMP for LMP’s Damages resulting from an inaccurate
representation or warranty of Staluppi, will not be affected if LMP has, or by reasonably diligent investigation could have obtained,
knowledge of that inaccuracy or breach. The representations and warranties of Staluppi or LMP contained in this Agreement, including
those contained in any Schedule or certificate delivered hereunder or in connection herewith, shall survive the Closing for a period
of 3 years with the exception of the representations and warranties of Staluppi contained in Sections 2.1 (Authority),
2.2 (Authority), 2.12(d) (Title to Fixed Assets), 2.18 (Undisclosed Liability), 2.20 (Taxes), 2.25
(ERISA/COBRA), and 2.26 (Environmental), each of which shall constitute “Fundamental Representations”
and shal1 survive the Closing until the expiration of the applicable tax statutes of limitation plus a period of 60 days.

 

Article
5. CONDITIONS TO OBLIGATIONS TO CLOSE.

 

5.1 Conditions
to Obligation of LMP. The obligation of LMP to consummate the transactions to be performed by it in connection with the Closing
is subject to satisfaction of the following conditions:

 

(a) all
representations and warranties of Staluppi and the Company Group Entities contained in this Agreement (including the Schedules
hereto) (i) that are qualified as to materiality, shall be true, correct and complete in all respects and (ii) that are not qualified
as to materiality, shall be true, correct and complete in all material respects on and as of the Closing Date, with the same effect
as though such representations and warranties had been made on and as of such date, and Staluppi shall have delivered to LMP a
certificate dated as of the Closing Date and executed by Staluppi to such effect or disclosing any such representation or warranty
not so true, correct and complete;

 

(b) each
and all of the agreements and covenants of Staluppi to be performed on or before the Closing Date pursuant to the terms hereof
shall have been performed in all material respects;

 

(c) LMP
shall not have terminated this Agreement as provided in Article 7;

 

(d) Staluppi
shall have delivered to LMP an assignment agreement (the “Assignment Agreement”) evidencing the assignment and
transfer of the Acquired Interests to LMP, in substantially the form attached hereto as Exhibit E, duly executed
by Staluppi;

 

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(e) Staluppi
shall have procured in writing each of the consents from the Company Group Entities’ Lender(s) as disclosed in Section
2.4, on terms (including capitalization and financial covenants) no less favorable than currently imposed upon any Company
Group Entity, and such consents must be in full force and effect as of the Closing;

 

(f) 
each Manufacturer shall have delivered to LMP written approval of the transfer of the Acquired Interest to LMP and agreed to the
appointment of John Staluppi as the dealer operator/general manager of the applicable Company Group Entity’s dealership operations
at the applicable Dealership Premises, all on terms (including capitalization and financial covenants) no less favorable than currently
set forth in applicable Company Group Entity’s dealer sales and service agreements with such Manufacturer;

 

(g) the
Parties shall have received all authorizations, consents, and approvals of any Governmental Authority or Regulatory Authority required
in connection with the consummation of the Contemplated Transactions, Staluppi shall have reimbursed LMP for 1⁄2 of
the cost (excluding professional fees) of obtaining all such authorizations, consents, and approvals of any Governmental Authority
or Regulatory Authority required in connection with the consummation of the Contemplated Transactions, any required waiting periods
under the HSR Act, as applicable, shall have expired or have been terminated, and no Governmental Authority or Regulatory Authority
shall have taken any action as a result of which LMP reasonably deems it inadvisable to proceed with the Contemplated Transactions;

 

(h) LMP
shall have received the resignations, effective as of the Closing, of each director and officer of each Company Group Entity, if
any, each of which shall be in compliance and form required by such Company Group Entity’s Operating Agreement;

 

(i) no
action or proceedings shall have been instituted or threatened before a court or other government body or by any Governmental Authority
to restrain or prohibit any of the Contemplated Transactions;

 

(j) no
Material Adverse Change in the business of any Company Group Entity shall have occurred since the Effective Date;

 

(k) LMP
shall have completed its legal, accounting, and other due diligence, and its review of the Audited Financial Statements, and such
investigations shall be satisfactory to LMP in its discretion; provided, however, if LMP does not terminate this Agreement in accordance
with Section 9.1(g), then this condition shall be deemed satisfied;

 

(l) each
Company Group Entity shall have eliminated all member loans from its books;

 

(m) Staluppi
shall have delivered to LMP appropriate releases from all obligees with respect to any and all Liability, contingent or otherwise,
of each Company Group Entity for primary obligations of any Person other than a Company Group Entity (including, without
limitation, corporate guarantees by a Company Group Entity for obligations of Staluppi and other Related Guarantees), or Staluppi
shall cause such primary obligations to be satisfied at Closing. In addition, LMP shall have been furnished with appropriate lien
releases from all secured parties with respect to any and all Liens upon any property or assets of a Company Group Entity securing
obligations of any Person other than such Company Group Entity;

 

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(n) The
transactions contemplated under all the Transaction Agreements shall have closed simultaneously with the Closing herein;

 

(o) LMP
shall have received a written commitment for acquisition financing (including an inventory credit facility or floor plan) all on
terms satisfactory to the LMP; provided, however, if LMP does not terminate this Agreement in accordance with Section 9.1(g),
then this condition shall be deemed satisfied.

 

(p) Each
of the Parties certified public accountants shall have agreed to the Company’s Net Working Capital on the Closing Date, subject
to adjustment as contemplated under Section 1.6, and a closing and disbursement statement (“Closing Statement”)
enumerating the Purchase Price, prorations, and adjustments, all in accordance with this Agreement or as otherwise agreed upon
by the Parties.

 

(q) The
Company and Staluppi shall each have delivered to LMP counterpart signature pages to the First Amended and Restated Operating Agreement,
in substantially the form attached hereto as Exhibit F.

 

(r) Staluppi
shall have delivered to LMP such other documents, instruments or opinions as may be required or otherwise reasonably contemplated
pursuant to this Agreement.

 

(s) Staluppi
and LMP shall have entered into an employment agreement on terms mutually acceptable to LMP and Staluppi.

 

(t) Staluppi
shall have delivered to LMP copies of all written Consents as set forth in Schedule 2.4.

 

LMP may waive any condition
specified in this Section 5.1 if it executes a writing so stating at or prior to the Closing.

 

5.2 Conditions
to Obligation of Staluppi. The obligation of Staluppi to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions:

 

(a) all
representations and warranties of LMP contained in this Agreement (including the Schedules hereto) (i) that are qualified as to
materiality shall be true, correct and complete in all respects and (ii) that are not qualified as to materiality shall be true,
correct and complete in all material respects on and as of the Closing Date with the same effect as though such representations
and warranties had been made on and as of such date, and LMP shall have delivered to Staluppi a certificate dated as of the Closing
Date and executed by LMP to such effect or disclosing any such representation or warranty not so true, correct and complete;

 

(b) each
and all of the agreements and covenants of LMP to be performed on or before the Closing Date pursuant to the terms hereof shall
have been performed in all material respects;

 

    26

     

    

 

(c) the
Parties shall have received all authorizations, consents, and approvals of any Governmental Authority or Regulatory Authority required
in connection with the consummation of the Contemplated Transactions, any required waiting periods under the HSR Act, as applicable,
shall have expired or have been terminated, and no Governmental Authority or Regulatory Authority shall have taken any action as
a result of which Staluppi reasonably deem it inadvisable to proceed with the Contemplated Transactions;

 

(d) LMP
shall have paid and delivered the Purchase Price as provided in Section 1.5 hereof;

 

(e) No
action or proceeding shall have been instituted or, to the knowledge of LMP, threatened before a court or other government body
or by any Governmental Authority to restrain or prohibit any of the Contemplated Transactions;

 

(f) The
transactions contemplated under all the Transaction Agreements shall have closed simultaneously with the Closing herein;

 

(g) 
Each of the Parties certified public accountants shall have agreed to the Company’s Net Working Capital on the Closing Date,
subject to adjustment as contemplated under Section 1.6, and a closing and disbursement statement (“Closing Statement”)
enumerating the Purchase Price, prorations, and adjustments, all in accordance with this Agreement or as otherwise agreed upon
by the Parties.

 

(h) LMP
shall have delivered to Staluppi and the Company counterpart signature pages to the First Amended and Restated Operating Agreement.

 

(i) Staluppi
shall have procured in writing each of the consents from the Company Group Entities’ Lender(s) as disclosed in Section
2.4, on terms (including capitalization and financial covenants) no less favorable than currently imposed upon any Company
Group Entity, and such consents must be in full force and effect as of the Closing.

 

(j) LMP
shall have delivered to Staluppi such other documents, instruments or opinions as may be required or otherwise reasonably contemplated
pursuant to this Agreement.

 

(k) Staluppi
shall have received all Consents as set forth in Schedule 2.4, in addition to all releases from all obligees with respect to any
liability for personal guarantees provided by Staluppi for the benefit of any of the Company Group Entities or AAG Subsidiaries.

 

Staluppi may waive
any condition specified in this Section 5.2 if they execute a writing so stating at or prior to the Closing.

 

Article
6. CLOSING AND POST-CLOSING COVENANTS

 

6.1 Third
Party Consents.

 

(a) Each
Party shall cooperate in good faith and shall use its respective reasonable best efforts to obtain any consents contemplated or
required under this Agreement.

 

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(b) Within
5 Business Days of the Effective Date, Staluppi shall cause each Company Group Entity to deliver a notice on such Company
Group Entity’s letterhead, addressed to each applicable Manufacturer and prepared in accordance with applicable New York
law, expressing the Staluppi’s desire to consummate the Contemplated Transactions and otherwise obtain each Manufacturer’s
consent to the Contemplated Transaction and continued appointment of the applicable Company Group Entity as an authorized dealer
in the Manufacturer’s products at the applicable Dealership Premises. Such notice shall include a request that the Manufacturer
provide to Staluppi and LMP any forms or applications necessary to achieve the Contemplated Transaction. Upon receipt of any request
by the Manufacturer to LMP for further information, including completed applications or forms, LMP agrees to take prompt action
to submit to such Manufacturer all information commercially reasonably required by such Manufacturer to approve the Contemplated
Transaction. Staluppi will provide any and all information and assistance reasonably necessary to assist the LMP in its applications
to the Manufacturers.

 

6.2 Further
Assurances. After Closing, as and when requested by any Party from time to time, the other Parties shall and shall cause their
Affiliates to execute and deliver, or cause to be executed and delivered, such documents and instruments and shall take, or cause
to be taken, such further or other actions as may be reasonably necessary to carry out the purposes of this Agreement including,
without limitation, executing and delivering any instrument LMP may reasonably request to convey the Acquired Interest to LMP as
required by this Agreement.

 

6.3 Delivery
of Funds and Other Assets Collected by Staluppi. To the extent that after Closing Staluppi receive any funds or other assets
in connection with any Company Group Entity’s Business, which was included in determining the Final NWC Statement, Staluppi
shall promptly deliver such funds and assets to such Company Group Entity and take all steps necessary to vest title to such funds
and assets in the Company Group Entity.

 

6.4 Payment
of Delinquent Accounts Receivables. To the extent that any accounts receivables owed to any Company Group Entity prior to the
Closing Date are not collected by such Company Group Entity 120 days after the Closing Date (the “Delinquent Accounts
Receivables”), Staluppi shall within 10 days of receipt of notice from LMP of the Delinquent Accounts Receivable
pay such Company Group Entity a sum equal to the sum of the Delinquent Accounts Receivables. Upon receipt in full of such payment
from Staluppi of an amount equal to the Delinquent Accounts Receivables, LMP shall transfer to Staluppi the rights to all payments
under the Delinquent Accounts Receivables, after which LMP shall have no further collection responsibilities with respect to such
Delinquent Accounts Receivables other than to remit to Staluppi any additional amounts related thereto received by a Company Group
Entity.

 

6.5 Access
to Files. For a period that is the later of 5 years or applicable records retention requirements under a Legal Requirement,
after the Closing or such longer term as Staluppi may reasonably require if Staluppi is then involved in litigation or under investigation
or audit by a governmental agency or bureau relating to Staluppi or the Company Group Entities, LMP shall maintain and give Staluppi
and their representatives reasonable access to, and shall permit Staluppi and their representatives, at their own expense, to make
photocopies of, all originals of the files and records relating to the Company Group Entities.

 

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6.6 Notification.
Between the Effective Date and the Closing Date, Staluppi will promptly notify the LMP in writing if Staluppi or any Company Group
Entity becomes aware of any fact or condition that causes or constitutes a breach of any of Staluppi’s representations and
warranties as of the Effective Date, or if Staluppi or any Company Group Entity becomes aware of the occurrence after the Effective
Date of any fact or condition that would (except as expressly contemplated by this Agreement) cause or constitute a Breach of any
such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such
fact or condition. Should any such fact or condition require any change in the Disclosure Letter if the Schedules were dated the
date of the occurrence or discovery of any such fact or condition, Staluppi will promptly deliver to LMP a supplement to the Disclosure
Letter specifying such change. Without limiting the foregoing, Staluppi shall furnish to LMP within 10 days after the end
of each month a statement of income and a balance sheet as of the end of such month with respect to the Business, all of which
shall be prepared in accordance with the Manufacturers’ accounting standards.

 

6.7 Related
Party Agreements and Liabilities.

 

(a) After
the Effective Date, Staluppi agrees, and agrees to cause each Company Group Entity, not to enter into any Related Party Agreements
or engage in any transactions with Staluppi or a Related Person without LMP’s consent, which shall not be unreasonably withheld,
conditioned, or delayed.

 

(b) Prior
to the Closing:

 

(i) each
Company Group Entity shall pay in full or otherwise discharge all amounts payable by the Company Group Entity to, or loans made
to the Company Group Entity by, the Staluppi or Related Person;

 

(ii) Staluppi,
and any Related Person, as applicable, shall pay in full to each Company Group Entity any amounts payable by such Persons to the
Company Group Entity and any loans made by the Company Group Entity to such Persons; and

 

(iii) the
Company and Staluppi agrees to take, or cause to be taken, all appropriate action, and do, or cause to be done, all things necessary
proper or advisable to terminate, waive or release all Related Guarantees.

 

6.8 No
Negotiation. Until such time, if any, as this Agreement is terminated pursuant to Article 9, Staluppi will not,
and will cause each Company Group Entity and each of their respective Representatives not to, directly or indirectly solicit, initiate,
or encourage any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the
merits of any unsolicited inquiries or proposals from, any Person (other than LMP) relating to any transaction involving the sale
of the business or assets (other than in the Ordinary Course of Business) of each Company Group Entity, or any of the AAG Membership
Interests of the Company, or any merger, consolidation, business combination. or similar transaction involving the Company Group
Entities. Staluppi shall promptly advice LMP of any such inquiry or proposal so received.

 

    29

     

    

 

6.9 Cooperation.
For purposes of complying with the terms set forth herein, each Party will reasonably cooperate with and, subject to the execution
of customary confidentiality agreements reasonably required by third parties in connection with disclosure of such third parties’
confidential information to the receiving Party hereunder, reasonably and promptly make available to the other Parties and their
auditors and representatives the information, records, data and supporting papers reasonably relevant to the determination of the
Company’s Net Working Capital and a Closing Statement, the closing inventory schedules, and any adjustment thereto being
disputed and the resolution of any disputes thereunder. Staluppi will cause the Company Group Entities to permit the LMP and its
representatives reasonable access to the Company Group Entities’ books and records and personnel, as may be reasonably required
(upon reasonable advance notice) in connection with preparing for Closing.

 

6.10 Transition.
Staluppi will not take any action that is designed or intended to have the effect of discouraging any lessor, licensor, customer,
supplier, or other business associate of any Company Group Entity from maintaining the same business relationships with such Company
Group Entity after the Closing Date as it maintained with the Company Group Entity prior to the Closing. Staluppi will refer to
the Company all customer inquiries relating to the business of the Company Group Entities from and after the Closing.

 

6.11 Tax
Periods Ending on or Before the Closing Date. Staluppi shall prepare and file or cause to be prepared and filed, al1 income
tax returns for the Company Group Entities for all periods ending on or prior to the Closing Date, which are required to be filed
after the Closing Date. Staluppi shall provide to LMP a copy of the tax returns proposed to be field pursuant to the preceding
sentence, a reasonable time in advance of such filing date, and shall make such revisions to such tax returns as are reasonably
requested by LMP. Staluppi shall not file such tax returns without the consent of LMP, which consent will not be unreasonably withheld.
LMP will make available all information necessary to complete Staluppi’s income tax returns for all periods ending on or
prior to Closing Date.

 

6.12 Staluppi’s
Release of Claims Against the Company Group Entities.

 

(a) As
of the Closing, Staluppi does hereby, for himself or his heirs, executors, administrators and legal representatives, remise, release,
acquit and forever discharge each Company Group Entity, and each of its Representatives, of and from any and all Claims of every
nature whatsoever, liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent, that Staluppi now has,
owns or holds, or has at any time previously had, owned or held, against any Company Group Entity, including without limitation
all Liabilities created as a result of the negligence, gross negligence and willful acts of any Company Group Entity and their
employees and agents existing as of the Closing or relating to any matter that occurred on or prior to the Closing; provided,
however, that any Claims that may arise in connection with the failure of any of the Parties hereto to perform any of their
respective obligations hereunder or under any other agreement relating to the Contemplated Transactions or from any breaches by
any of them of any representations or warranties herein or in connection with any of such other agreements shall not be
released or discharged pursuant to this Agreement.

 

(b) Staluppi
represents and warrants that he has not previously assigned or transferred, or purported to assign or transfer, to any person or
entity whatsoever all or any part of the Claims released herein. Staluppi covenants and agrees that he will not assign or transfer
to any person or entity whatsoever all or any part of the Claims to be released herein. Staluppi represents and warrants that he
has read and understands all of the provisions of this Section 6.12 and that he has been represented by legal counsel of
his own choosing in connection with the negotiation, execution and delivery of this Agreement.

 

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6.13 Conduct
of Operations. Between the Effective Date and the Closing Date, Staluppi will, and will cause Company to (a) conduct the business
of Company only in the Ordinary Course of Business; (b) use his Best Efforts to preserve intact the current business organization
of Company, keep available the services of the current officers, employees, and agents of Company, and maintain the relations and
good will with suppliers, customers, landlords, creditors, employees, agents, and others having business relationships with Company;
(c) confer with LMP concerning operational matters of a material nature; and (d) otherwise report periodically to LMP concerning
the status of the business, operations, and finances of any Company Group Entity. The Company Group Entities and Staluppi will
not omit to take any action that is inconsistent with any representation or warranty of the Staluppi, or that would cause any such
representation or warranty to be untrue or incorrect if such representation or warranty were made immediately following the taking
of or failure to take such action.

 

6.14 Prohibited
Activities. Except as otherwise expressly permitted by this Agreement between the Effective Date of this Agreement and the
Closing Date, Staluppi will not, and will cause each Company Group Entity not to, without the prior consent of LMP, take any affirmative
action, or fail to take any reasonable action within their or its control, as a result of which any of the changes or events listed
in Section 2.11 or a Material Adverse Change is likely to occur. Staluppi and the Company Group Entities, will not (a) make
any changes to its organizational documents (charter documents) or Company’s Operating Agreement; (b) make any declaration
of or pay any dividend or distribution; (c) directly or indirectly redeem, retire, purchase, or otherwise acquire or obtain the
surrender of any membership interest, option, warrant or derivative of or Affiliate; (d) issue any membership interest, option,
warrant, bond, or derivative of the Company Group Entities; (e) make any investment in the membership interest, stock, indebtedness,
or any derivative security of any Person; or (d) enter into any transaction which is outside the Ordinary Course of Business, or
prohibited hereby.

 

6.15 The
Company Group Entities’ 401(k). Except with the prior written consent of LMP, during the period from the Effective
Date to the Closing Date, the Company Group Entities shall not (i) make any discretionary contribution to any Company Group Entity’s
401(k) plan (the “401(k) Plan”).  If requested by LMP, a Company Group Entity shall terminate the 401(k)
Plan at least 1 Business Day prior to the Closing Date.

 

6.16 Use
of Name. Staluppi agrees that from and after the Closing Date, Staluppi and his Affiliates (other than the other Company Group
Entities) will not directly or indirectly use in connection with any business activities any service marks, trademarks, trade names
(regardless of whether any Company Group Entity currently uses such names), trade dress, internet domain names, identifying symbols,
logos, emblems, signs or insignia related thereto or containing or comprising the foregoing, including any word or logo that is
confusingly similar in sound or appearance thereto and used or otherwise exploited by any Company Group Entity on or before the
Closing Date. The foregoing limitation shall not apply to Staluppi performing business activities as an employee of the Company
Group Entities. In addition, Staluppi agrees that he will not, without the prior written consent of LMP, in each instance, (a)
use in advertising, publicity, or otherwise the name of LMP or any of LMP’s affiliates, nor any trade name, trademark, trade
device, service mark, symbol or any abbreviation, contraction or simulation thereof owned by LMP or any of LMP’s affiliates,
or (b) represent, directly or indirectly, that any product or any service provided by any Company Group Entity has been approved
or endorsed by LMP or LMP’s affiliates. LMP agrees that so long as Staluppi owns an Interest in the Company, LMP will not,
without the prior written consent of Staluppi, in each instance, (x) use the name of “Atlantic Automotive Group” in
any advertising, publicity, or otherwise, of any of LMP’s Affiliates (other than an Affiliate that is part of the Company
Group Entities), nor any trade name, trademark, trade device, service mark, symbol or any abbreviation, contraction or simulation
thereof owned by the Company or any of the Company’s Affiliates, or (y) represent, directly or indirectly, that any product
or any service provided by any LMP Affiliate (other than an Affiliate that is part of the Company Group Entities) has been approved
or endorsed by “Atlantic Automotive Group”.

 

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6.17 Transfer
Taxes. The Contemplated Transactions are the transfer of AAG Membership Interests, which are intangible assets; accordingly,
the Parties do not expect any state and local transfer, sales, use, stamp, registration or other similar Taxes to arise by reason
of the consummation of the transactions contemplated by this Agreement (“Transfer Taxes”). The Parties agree
that Staluppi shall be responsible for any and all Transfer Taxes that are actually incurred as a result of the transfer of the
AAG Membership Interests. The Parties will cooperate in good faith to minimize, to the extent permissible under applicable Legal
Requirements, the amount of any Transfer Taxes.

 

6.18 Liability
for Taxes; Other Tax Matters. For purposes of determining the portion of any Taxes with respect to any Straddle Period that
constitutes Staluppi Taxes, the portion of any such Taxes that are attributable to the portion of such Straddle Period ending on
the Closing Date will be:

 

(a) in
the case of Taxes that are imposed on a periodic basis with respect to the assets or capital of any Company Group Entity, the amount
of such Taxes for the entire Straddle Period (or, in the case of such Taxes determined on an arrears basis, the amount of such
Taxes for the immediately preceding period), multiplied by a fraction the numerator of which is the gross income of the Company
Group Entities on a consolidated basis for the portion of the period ending on and including the Closing Date and the denominator
of which is the total gross income of the Company Group Entities on a consolidated basis for the entire period, as determined by
Parties or, if the Parties are unable to reach a determination, a Neutral Accountant; and

 

(b) in
the case of all other Taxes, deemed equal to the amount that would be payable if the relevant Straddle Period ended on and included
the Closing Date; provided that exemptions, allowances, or deductions that are calculated on an annual basis (including
depreciation and amortization deductions) will be allocated between the portion of the Straddle Period ending on and including
the Closing Date and the portion of the Straddle Period beginning after the Closing Date in proportion to the number of days in
each period.

 

6.19 Cooperation
on Tax Matters. Each Party will cooperate fully as and to the extent reasonably requested by the other Party in connection
with the filing of Tax Returns and any audit, litigation, or other proceeding with respect to Taxes imposed on or with respect
to the assets, operations or activities of the Company Group Entities (each a “Tax Proceeding”). Such cooperation
will include the retention and (upon the other Party’s request) the provision of records and information that are reasonably
relevant to any such Tax Return or Tax Proceeding, and making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. Staluppi further agrees, upon request, to use commercially reasonable
efforts to obtain any certificate or other document from any Governmental Authority or any other person as may be necessary to
mitigate, reduce or eliminate any Tax that could be imposed on LMP, the any Company Group Entity (including, but not limited to,
with respect to the transactions contemplated hereby). Notwithstanding the above, the control and conduct of any Tax Proceeding
that is a Third-Party Claim will be governed by Section 8.5. Any information obtained by a Party or its Affiliates from
another Party or its Affiliates in connection with any Tax matters to which this Agreement applies will be kept confidential, except
as may be otherwise necessary in connection with the filing of Tax Returns or in conducting a Tax Proceeding, or as may otherwise
be necessary to enforce the provisions of this Agreement.

 

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6.20 Regulatory
Approvals.

 

(a) Staluppi
and LMP shall, as promptly as practicable following the Effective Date, file with the United States Federal Trade Commission (the
“FTC”) and the United States Department of Justice (the “DOJ”), the notification and report
form required from each of Staluppi and LMP for the transactions contemplated by this Agreement and any supplemental information
requested in connection therewith pursuant to the HSR Act, which forms shall specifically request early termination of the waiting
period prescribed by the HSR Act. Each of Staluppi and LMP shall furnish to each other’s counsel such necessary information
and reasonable assistance as the other may request in connection with its preparation of any filing or submission that is necessary
under the HSR Act. The Parties agree that LMP, on the one hand, and Staluppi, on the other hand, shall each be responsible for
50% of any and all filing fees payable in connection with the foregoing filings.

 

(b) Staluppi
and LMP shall use their respective commercially reasonable efforts to promptly obtain any clearance required under the HSR Act
for the consummation of the transactions contemplated by this Agreement and shall keep each other apprised of the status of any
communications with, and any inquiries or requests for additional information from any Governmental Authority and shall comply
promptly with any such inquiry or request. LMP and Staluppi shall use their commercially reasonable efforts to obtain any necessary
approval from any Government Authority under the HSR Act. Notwithstanding anything contained in this Agreement to the contrary,
neither LMP nor Staluppi nor any of their Subsidiaries or other Affiliates shall be obligated to do any of the following: (i) dispose
or transfer any asset other than pursuant to this Agreement; (ii) license or otherwise make available to any Person any technology
or other intellectual property rights; (iii) hold separate any assets or operations (either before or after the applicable Closing
Date); or (iv) change or modify any course of conduct or otherwise make any commitment regarding future operations.

 

(c) The
Parties commit to instruct their respective counsel to cooperate with each other and use commercially reasonable efforts to facilitate
and expedite the identification and resolution of any issues arising under the HSR Act at the earliest practicable dates. Such
commercially reasonable efforts and cooperation include counsel’s undertaking (i) to keep each other appropriately informed
of communications from and to personnel of the reviewing Governmental Authority, and (ii) to confer with each other regarding appropriate
contacts with and response to personnel of such Governmental Authority.

 

(d) Each
of LMP and Staluppi shall use its reasonable best efforts to “substantially comply” as promptly as practicable with
any request for additional information or documentary material issued by a Governmental Authority under 15 U.S.C. Sec 18(e)
and in conjunction with the Contemplated Transactions (a “Second Request”). Each of LMP and Staluppi will certify
to substantial compliance with respect thereto as promptly as practicable. Each of LMP and Staluppi agrees to take all reasonable
steps to assert, defend, and support certification of substantial compliance with any Second Request. Each of LMP and Staluppi
agrees to give such advance notices as may be required (including, if necessary, notice of an anticipated Closing Date), and to
otherwise reasonably cooperate to give effect to the rights of the other set forth in this Section 6.20.

 

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Article
7. DUE DILIGENCE

 

7.1 Due
Diligence.

 

(a) Prior
to the Closing, LMP may conduct due diligence concerning the Company Group Entities and the Business to confirm the veracity of
Staluppi’s warranties and representations. Without limiting the foregoing, the LMP shall have 60 days from the later
of the Effective Date or the delivery of the final schedule to be delivered hereunder (the “Due Diligence Period”)
to complete to its satisfaction inspections and due diligence regarding the Business and the Purchased Assets, including obtaining
such reports and studies as the LMP deems appropriate. Staluppi agrees to provide LMP and its Representatives reasonable access
to the books, records, reports, department managers (which access to such managers shall be permitted as mutually agreed by the
Parties, and which LMP shall diligently undertake and complete any desired access with a manager in a timely manner), information,
and facilities of the Business, and will make the officers and accountants of the Company Group Entities available at reasonable
times to discuss with LMP and its Representatives such aspects of the Company Group Entities’ Business as LMP may wish. Staluppi
will cooperate with any reasonable request by the LMP to conduct financial due diligence at one of the Dealership Premises prior
to the expiration of the Due Diligence Period, which shall include while on site read-only access to Staluppi’s dealership
management systems, with prior notice to Staluppi, and subject to such reasonable limitations as Staluppi may impose to protect
confidentiality. Any and all on-site visits and direct communications with any Company Group Entity employees Staluppi shall be
coordinated in advance with John Staluppi or John Gentile. LMP’s right to inspect or to receive data and information from
Staluppi or any Company Group Entity shall terminate upon any termination of this Agreement.

 

(b) Prior
to the Closing, LMP may conduct, inspect and review any and all tests, studies, and surveys of all aspects of the Dealership Premises,
including, without limitation, to evaluate the condition of the improvements located thereon, the soil conditions, environmental
conditions (including Phase I and Phase II environmental site assessments), structural integrity, to confirm the ownership, zoning
and status of entitlements applicable to the Dealership Premises, and to determine LMP’s ability to obtain future financing
for the purchase of the Dealership Premises. LMP shall avoid any unreasonable interference with the business and operations of
Staluppi’s business operations; and LMP, at its sole expense, shall promptly repair any damage caused by said inspections.
Staluppi will make its appropriate officers, employees and representatives available to LMP at all reasonable times for the purpose
of assisting LMP in such investigations or examinations. Notwithstanding the foregoing, LMP may not perform any test of the Dealership
Premises of an intrusive or disruptive nature (including, without limitation, soil borings), without the prior written consent
of Staluppi, which consent shall not be unreasonably withheld, conditioned or delayed, except that Staluppi shall be entitled to
review and approve any investigation planned and split any samples taken.

 

(c) If
LMP determines on or before expiration of the Due Diligence Period, that any of the information provided during the Due Diligence
Period is materially different or varies in any material respects from the information provided in the 2018 and/or 2019 Certified
Financial Statements for the Company Group Entities (both of which LMP acknowledges receipt), then LMP may terminate this Agreement,
without premium or penalty, by sending written notice to Staluppi (which, notwithstanding anything to the contrary in this Agreement,
may be delivered by email only without the necessity of any other communication delivery method).

 

7.2 Pre-Closing
Preparation. After Manufacturer approval and prior to the Closing Date, Staluppi agrees to afford LMP and its agents, attorneys,
accountants and Representatives such access to the Dealership Premises, business records and properties of each of the Company
Group Entities, and shall furnish to LMP such information concerning the Business, as LMP shall reasonably deem necessary or desirable
for the purpose of enabling LMP to prepare for Closing, including preparation of closing inventory schedules. Staluppi will make
its appropriate Representatives available to LMP at all reasonable times for the purpose of assisting, in all reasonable respects,
LMP with Closing preparations.

 

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Article
8. INDEMNIFICATION.

 

8.1 Indemnities
of Staluppi.

 

(a) Staluppi
shall, and hereby does, indemnify, hold harmless and agree to defend LMP and its Affiliates, officers, directors, employees, agents,
consultants, representatives, stockholders and controlling Persons and their respective successors and assigns (collectively, the
“LMP Indemnified Parties”) at all times from and after the date of this Agreement, from and against any and
all Damages, demands, Judgments, injuries, Claims, Liens, costs, and expenses (including, without limitation, reasonable attorneys'
fees and expert witness fees), of or to any of the LMP Indemnified Parties (“LMP Damages”), which may now or
in the future be paid, incurred or suffered by or asserted against the LMP Indemnified Parties by any Person resulting or arising
from or incurred in connection with any one or more of the following (the “Staluppi Indemnified Liabilities”):

 

(i) any
Pre-Closing Un-booked Liabilities not accounted for on the Closing Date pursuant to Section 1.4;

 

(ii) any
Liabilities or Claims for Liability (whether in contract, in tort or otherwise, and whether or not successful) related in any way
to the Company Group Entities to the extent such Liability or Claim for Liability arises in connection with any action, omission,
or event occurring on or prior to the Closing Date, except to the extent accounted for as a Pre-Closing Un-booked
Liability pursuant to Section 1.4;

 

(iii) any
breach or nonfulfillment of any covenant or agreement of Staluppi contained in this Agreement or in any other agreement, document
or instrument delivered hereunder or pursuant hereto;

 

(iv) any
untruth or breach of any representation and warranty of Staluppi contained in or made pursuant to this Agreement, including in
any other agreement, document or instrument delivered hereunder or pursuant hereto; and

 

(v) all
actions, suits, proceedings, demands, assessments, adjustments, costs and expenses (including costs of court and reasonable attorneys’
fees) incident to sub-parts (i) through (iv).

 

(b) Basket.
Notwithstanding anything in this Agreement, Staluppi shall not have any Liability for any LMP Damages resulting from matters described
in Section 8.1(a)(iv), until the aggregate amount of all such Liabilities incurred by the LMP Indemnified Parties exceeds
the Basket; provided, however, that Staluppi’s Liability for any LMP Damages will not be limited as set forth in this
Section 8.1(b) if such Staluppi Indemnified Liability relates to a breach of any Fundamental Representations or any
representation or warranty set forth in Sections 2.3 through 2.7 (inclusive), and 2.9.

 

(c) Insurance.
Staluppi’s indemnification obligations shall be reduced to the extent that the subject matter of any indemnification claim
brought by LMP is covered by and paid to LMP pursuant to a warranty or indemnification from a third party or third-party insurance.

 

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8.2 Indemnities
of LMP.

 

(a) LMP
shall, and hereby does indemnify, hold harmless and agree to defend Staluppi at all times from and after the date of this Agreement,
from and against any and all Damages, demands, Judgments, injuries, Claims, Liens, costs, and expenses (including, without limitation,
reasonable attorneys' fees and expert witness fees), of or to the Company and/or Staluppi (“Staluppi Damages”),
which may now or in the future be paid, incurred or suffered by or asserted against Staluppi and/or the Company by any Person resulting
or arising from or incurred in connection with any one or more of the following (“LMP Indemnification Liabilities”):

 

(i) any
breach or nonfulfillment of any covenant or agreement of LMP contained in this Agreement or in any other agreement, document or
instrument delivered hereunder or pursuant hereto;

 

(ii) any
untruth, inaccuracy, or breach of any representation and warranty of LMP contained in or made pursuant to this Agreement, including
in any other agreement, document or instrument delivered hereunder or pursuant hereto; and

 

(iii) all
actions, suits, proceedings, demands, assessments, adjustments, costs and expenses (including costs of court and reasonable attorneys’
fees) incident to sub-parts (i) through (ii) any of the foregoing.

 

(b) Basket.
In no event will any amount be recovered from LMP for any Staluppi Damages resulting from matters described in Section 8.2(a)(ii)
until the aggregate amount of all LMP Indemnified Liabilities incurred by Staluppi and/or the Company exceeds the Basket, in which
event LMP will be obligated, subject to the other provisions of this Agreement, to indemnify Staluppi for only those amounts in
excess of the Basket.

 

8.3 Claim
Procedures. Each Person that desires to make a Claim for indemnification pursuant to this Article 8 (an
“Indemnified Party”) will provide notice (a “Claim Notice”) thereof in writing to LMP (if
the Indemnified Party is Staluppi) or to Staluppi (if the Indemnified Party is a LMP Indemnified Party) (in each such case, an
“Indemnifying Party”), specifying the nature and Basis for such Claim and a copy of all papers served with respect
to such Claim (if any). For purposes of this Section 8.3, receipt by a Person of written notice of any Third-Party
Claim which gives rise to a Claim on behalf of such Person will require delivery of a Claim Notice to the Indemnifying Party within
20 days following the receipt of such Third-Party Claim; provided, however, that an Indemnified Party’s failure
to send or delay in sending a Claim Notice will not relieve an Indemnifying Party from Liability hereunder with respect to such
Claim except to the extent and only to the extent the Indemnifying Party is materially prejudiced by such failure or delay.

 

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8.4 Third-Party
Claims.

 

(a) In
the event of the assertion of any Third-Party Claim, the Indemnifying Party, at its option, may assume (with legal counsel reasonably
acceptable to the Indemnified Party) at its sole cost and expense the defense of such Third-Party Claim if it acknowledges to the
Indemnified Party in writing its obligations to indemnify the Indemnified Party with respect to all elements of such Third-Party
Claim and may assert any defense of the Indemnified Party or the Indemnifying Party; provided that the Indemnified Party
will have the right at its own expense to participate jointly with the Indemnifying Party in the defense of any such Third-Party
Claim. Counsel representing both the Indemnifying Party and the Indemnified Party must acknowledge in writing its obligation to
act as counsel for all parties being represented and must acknowledge and respect separate attorney-client privileges with respect
to each party represented. If the Indemnifying Party elects to undertake the defense of any Third-Party Claim under this Agreement,
the Indemnified Party will cooperate with the Indemnifying Party in the defense or settlement of the Third-Party Claim, including
providing access to information, making documents available for inspection and copying, and making employees available for interviews,
depositions and trial, in each case, at the Indemnifying Party’s expense. The Indemnifying Party will not be entitled to
settle any Third-Party Claim without the prior written consent of the Indemnified Party, which consent will not be unreasonably
withheld or delayed.

 

(b) If
the Indemnifying Party, by the 30th day after receipt of notice of any Third-Party Claim (or, if earlier, by
the 10th day preceding the day on which an answer or other pleading must be served in order to prevent Judgment
by default in favor of the Person asserting such Third-Party Claim) does not assume actively and in good faith the defense of any
such Third-Party Claim or action resulting therefrom, the Indemnified Party may, at the Indemnifying Party’s expense, defend
against such Claim or litigation, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party
may deem appropriate, and the Indemnifying Party will be entitled to participate in (but not control) the defense of such action,
with its counsel and at its own expense. The Indemnified Party will not settle or compromise any Third-Party Claim for which it
is entitled to indemnification under this Agreement, without the prior written consent of the Indemnifying Party, which consent
will not be unreasonably withheld or delayed.

 

(c) Notwithstanding
anything in this Section 8.5 to the contrary, LMP will in all cases be entitled to control the defense of a Third-Party
Claim if LMP reasonably believes (i) such Third-Party Claim could result in Liabilities which, taken together with other then outstanding
Claims by LMP under this Agreement, could exceed the remaining potential Damages payable by Staluppi under this Agreement or the
amount that LMP believes it will be able to collect from Staluppi under this Agreement or (ii) such Third-Party Claim could adversely
affect in any material respect LMP or its Affiliates (other than the Company Group Entities) other than as a result of money damages
or if injunctive or other non-monetary relief has been sought against LMP or its Affiliates (other than the Company Group Entities).

 

8.5 Calculation,
Timing, Manner and Characterization of Indemnification Payments.

 

(a) Payments
of all amounts owed by an Indemnifying Party, other than as a result of a Third-Party Claim, will be made within 15 Business
Days after the later of (i) the date the Indemnifying Party is deemed liable therefor pursuant to this Article 8
or (ii) if disputed, the date of the adjudication of the Indemnifying Party’s Liability to the Indemnified Party under this
Agreement.

 

(b) Payments
of all amounts owing by an Indemnifying Party as a result of a Third-Party Claim will be made as and when Damages with respect
thereto are incurred by the Indemnified Party and within 15 Business Days after the Indemnified Party makes demand therefor
to the Indemnifying Party.

 

(c) All
amounts due and payable under this Agreement (i) with respect to a Third-Party Claim, will bear interest at the Applicable Rate
from the date due and payable hereunder until the date paid and (ii) with respect to a Claim other than a Third-Party Claim, will
bear interest at the Applicable Rate from the date the Indemnified Party suffers the Damages until the date paid. Such interest
shall be calculated daily on the basis of a 365-day year and the actual number of days elapsed.

 

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8.6 Express
Negligence. THE PARTIES INTEND THAT THE INDEMNITIES SET FORTH IN THIS Article 8
BE CONSTRUED AND APPLIED AS WRITTEN ABOVE, NOTWITHSTANDING ANY RULE OF CONSTRUCTION TO THE CONTRARY. WITHOUT LIMITING THE FOREGOING,
SUCH INDEMNITIES WILL APPLY NOTWITHSTANDING ANY STATE’S “EXPRESS NEGLIGENCE” OR SIMILAR RULE THAT WOULD DENY
COVERAGE BASED ON AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE OR GROSS NEGLIGENCE. IT IS THE
INTENT OF THE PARTIES THAT, TO THE EXTENT PROVIDED ABOVE, THE INDEMNITIES SET FORTH IN THIS Article 8
WILL APPLY TO AN INDEMNIFIED PARTY’S SOLE OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE OR GROSS NEGLIGENCE. THE PARTIES AGREE
THAT THIS PROVISION IS “CONSPICUOUS” FOR PURPOSES OF ALL STATE LAWS.

 

8.7 Setoff.
Upon any default by Staluppi of this Agreement (in addition to any rights and remedies of LMP provided by law (including, without
limitation, other rights of setoff) but expressly limited by the terms of this Agreement), LMP shall have the right, without prior
notice to Staluppi or any other party (any such notice being expressly waived by Staluppi to the extent permitted by applicable
law), to setoff, appropriate and apply any and all payments to be made in accordance with this Agreement, Convertible Purchase
Money Note, or the Company’s Operating Agreement, against and on account of the obligations or liabilities of Staluppi under
this Agreement, Convertible Purchase Money Note, or the Company’s Operating Agreement. The LMP’s right of setoff may
be exercised by LMP (or its assignee or their affiliates) against Staluppi (or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of creditors, receiver or execution, judgment or attachment creditor, or against anyone else claiming
through or against Staluppi or any such trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, receiver,
or execution, judgment or attachment creditor) notwithstanding the fact that such right of setoff shall not have been exercised
by LMP prior to the occurrence of any default pursuant to either this Agreement, Convertible Purchase Money Note, or the Company’s
Operating Agreement. LMP agrees promptly to notify Staluppi in writing after any such setoff and application made by LMP; provided,
however, that the failure to give such notice shall not affect the validity of such setoff and application.

 

8.8 Exclusive
Remedy. In the absence of fraud or criminal conduct, the indemnification provisions in this Article 8 will
be the sole and exclusive remedy and recourse for any breach of this Agreement by LMP and Staluppi, except as expressly provided
in this Agreement. In addition, (a) in the event of a breach or threatened breach by Staluppi of any of the provisions of Section
6.16, LMP will be entitled to immediate injunctive relief, as Staluppi acknowledges and agrees that any such breach would cause
LMP irreparable injury for which they would have no adequate remedy at law; and (b) any Party will be entitled to seek specific
performance against any other Party pursuant to Section 11.9.

 

8.9 Materiality.
For purposes of determining whether there has been a breach or inaccuracy and the amount of Damages that are the subject matter
of a Claim for indemnification or reimbursement hereunder, each such representation or warranty shall be read without regard and
without giving effect to the term “material” or “Material Adverse Effect” or similar phrases contained
in such representation or warranty.

 

8.10 Treatment.
Any indemnity payments made under this Agreement will be treated for all U.S. federal income Tax purposes as an adjustment to the
aggregate Purchase Price, unless otherwise required by any applicable Legal Requirement.

 

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Article
9. Termination.

 

9.1 Termination
this Agreement may be terminated at any time prior to the Closing:

 

(a) by
LMP by Notice to Staluppi, if the conditions set forth in Section 5.1 have not been satisfied or the deliveries required
herein of Staluppi shall not have been complied with and performed, and any such noncompliance or nonperformance shall not have
been cured or eliminated (or by its nature cannot be cured or eliminated) on or before the Outside Closing Date unless such failure
shall be due to the failure of LMP to comply with any of its obligations to be performed or complied with by it prior to the Closing;

 

(b) by
Staluppi by Notice to LMP, if the conditions set forth in Section 5.2 have not been satisfied or the deliveries required
by herein of LMP have not been complied with and performed and such noncompliance or nonperformance shall not have been cured or
eliminated (or by its nature cannot be cured or eliminated) on or before the Outside Closing Date, unless such failure shall be
due to the failure of Staluppi to comply with any of its obligations to be performed or complied with by it prior to the Closing;

 

(c) by
mutual agreement of Staluppi and LMP;

 

(d) by
either Staluppi or LMP if (i) there shall be any Legal Requirement that makes consummation of the Contemplated Transactions illegal
or otherwise prohibited or (ii) any Judgment enjoining LMP or Staluppi from consummating the Contemplated Transactions or any other
Transaction Document is entered and such Judgment shall have become final and non-appealable.

 

(e) by
LMP if the Closing has not occurred on or before the Outside Closing Date, or such later date as the Parties may agree upon, unless
LMP is in material breach of or default under this Agreement;

 

(f) by
Staluppi if the Closing has not occurred on or before the Outside Closing Date, or such later date as the Parties may agree upon,
unless Staluppi is in material breach of or default under this Agreement;

 

(g) by
LMP, within 3 Business Days after the expiration of the Due Diligence Period, if LMP is dissatisfied with its due diligence
inspections; and

 

(h) by
either Party, if any Manufacturer shall reject the Contemplated Transaction or exercises, or purports to exercise, any right of
first refusal to purchase the Acquired Interest.

 

9.2 Rights
and Obligations on Termination.

 

(a) If
this Agreement is terminated as provided in Section 9.1, this Agreement shall forthwith become void, there shall be no Liability
or obligation on the part of any Party or their respective Representatives, except as otherwise provided in Section 9.2(b)
below.

 

(b) Notwithstanding
the provisions of Section 9.2(a) above:

 

(i) if
this Agreement is terminated and abandoned pursuant to Section 9.1(b) due to a breach or default by LMP under any of its
express or implied covenants and obligations hereunder, LMP shall pay to Staluppi a $1,000,000.00 breakup fee, as and for liquidation
damages, which shall be Staluppi’s sole and exclusive remedy.

 

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(ii) if
this Agreement is terminated and abandoned pursuant to Section 9.1(a) due to a breach or default by Staluppi under any of
its express or implied covenants and obligations hereunder, Staluppi shall pay to LMP a $1,000,000.00 breakup fee, as and for liquidation
damages, which shall be LMP’s sole and exclusive remedy.

 

(c) The
Parties acknowledge and agree that the rights and obligations set forth in this Section 9.2 shall not in any way affect
or limit the respective rights and obligations of the Parties that arise out of, and survive, the Closing of the Transaction, including,
without limitation, the provisions of Article 8 above.

 

(d) In
the event of a termination and abandonment of this Agreement, the LMP shall promptly redeliver to the Staluppi all documents, work
papers and other material of the Staluppi relating to the Transaction, whether so obtained before or after the execution of this
Agreement. In such event, the LMP agrees not to use to the detriment of the Staluppi, nor to disclose to third parties, any of
such information with respect to the Business; provided, however, that the foregoing restriction shall not apply to any document,
work paper, material, or information which is a matter of public knowledge or which has heretofore been or is hereafter published
in any publication for public distribution or filed as public information with any Governmental Authority or is otherwise in the
public domain.

 

Article
10. NOTICES. Unless otherwise provided in this Agreement, any notice, demand and other communications to be
given or delivered under or by reason of the provisions of this Agreement will be in writing and will be deemed to have been given
(a) when delivered if personally delivered by hand, (b) when received if sent by a nationally recognized overnight courier service
(receipt requested), (c) 5 Business Days after being mailed, if sent by first class mail, return receipt requested, or (d)
when receipt is acknowledged by an affirmative act of the Party confirmed, if sent by electronic mail, facsimile, telecopy or other
similar electronic transmission device (including an acknowledgment generated automatically by a facsimile or telecopy machine
or other electronic transmission device); provided, however, that where a Party delivers a notice, demand or other
communication by electronic mail, such Party shall cause a copy of such notice to be delivered
by nationally recognized overnight courier (charges prepaid) the next business day.
Notices, demands and communications to the Parties will, unless another address is specified in writing by notice to the other
Parties pursuant to this Article 10, be sent to the address indicated below.

 

If to Staluppi, addressed to:

 

[**]

 

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

 

[**]

 

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If to LMP, addressed to:

 

LMP Automotive Holdings, Inc.

500 East Broward Boulevard

Fort Lauderdale, Florida 33394

Attention: Sam Tawfik

Email: sam@lmpmotors.com

 

With a copies (which shall not constitute notice)
to:

 

Bass Sox Mercer

2822 Remington Green Cir.

Tallahassee, FL 32308

Attn: Robert A. Bass, Esq.

Email: bassra@dealerlawyer.com

Facsimile: 850-942-4869

 

and

 

Greenspoon Marder LLP

1875 Century Park East, Suite 1900

Los Angeles, CA 90067

Attn: Sander C. Zagzebski, Esq.

Email: sander.zagzebski@gmlaw.com

Facsimile: 954-771-9264

 

or to such other place and with such other copies as
Staluppi or LMP may designate by written notice to the others in accordance with this Article 10.

 

Article
11. GENERAL PROVISIONS.

 

11.1 Choice
of Law. The Parties stipulate that this Agreement has been entered into in the State of New York. Except as provided in Section 11.2(b),
this Agreement will be construed and interpreted and the rights of the Parties governed by the internal laws of the State of Delaware,
without regard to any conflict of law or choice of law principles that would apply the substantive law of another jurisdiction.

 

11.2 Dispute
Resolution. Any dispute between, among, or involving the Parties that arises from or relates to this Agreement or any of the
other Transaction Documents (except to the extent expressly provided in a Transaction Document), the relationship between such
Parties that is created pursuant to such agreements, any alleged breach of any provision thereof, or in any way relating to the
subject matter of such agreements (all of which are referred to herein as “Disputes”), including any Disputes
that are extra-contractual in nature, or that are based on contract, tort, state or federal law, or other legal or equitable bases,
regardless of whether a Party is seeking Damages or any other relief and regardless of whether or not any specific Transaction
Document refers to this Section 11.2 will be resolved as provided in this Section 11.2; provided, however,
that a Party will be permitted to take the actions contemplated by Section 11.2(a)(iv).

 

    41

     

    

 

(a) Informal
Dispute Resolution. Prior to the initiation of formal dispute resolution procedures, the Parties will first attempt to resolve
their Dispute informally, as follows:

 

(i) First,
the complaining party must provide notice of the Dispute in accordance with the notice provisions of Article 10 (the
“Dispute Notice”). Upon receipt of the Dispute Notice, executives of LMP and Staluppi who have the actual or
apparent authority to resolve the controversy (collectively, the “Arbitration Representatives”), will meet to
discuss the Basis for the Dispute and will use their good faith efforts to reach a reasonable resolution to the Dispute. Upon receipt
of the Dispute Notice, the receiving party will submit to the other party a written response (the “Dispute Response”).
The Dispute Notice and the Dispute Response will include (A) a statement of the Party’s concerns and perspectives on the
issues in dispute, (B) a summary of supporting facts and circumstances, and (C) the identity of the Arbitration Representatives
who will represent such Party and of any other Person who will accompany the Arbitration Representatives. Such Arbitration Representatives
will meet as often as they reasonably deem necessary and will discuss the problem and negotiate in good faith in an effort to resolve
the Dispute without the necessity of any formal proceeding. In addition, to facilitate such negotiations the Parties may agree
to utilize the services of a mediator whose fees will be split equally by the Parties.

 

(ii) The
Parties agree that any written statements, including the Dispute Notice and the Dispute Response, will be prepared in connection
with settlement negotiations, and as such will be privileged and will not be used against the Party who prepared such statement
unless it is subsequently introduced by the preparing Party in any formal proceedings. The Parties also agree that the informal
settlement negotiations will be conducted privately, amicably and confidentially.

 

(iii) Should
the Arbitration Representatives fail to reach agreement within 30 days after receipt of the Dispute Notice in accordance
with Section 11.2(a)(i) above (or such longer period as such Arbitration Representatives may agree in writing), then
formal proceedings for the resolution of such Dispute may be commenced in accordance with Section 11.2(b).

 

(iv) This
Section 11.2 will not be construed to prevent LMP from instituting, and LMP is hereby authorized to institute, formal
proceedings (including seeking provisional remedies such as attachment, preliminary injunction and replevin from the appropriate
court) earlier to avoid the expiration of any applicable limitations period, to avoid irreparable harm (including irreparable harm
caused by Staluppi’s breach of the covenants set forth in Section 6.16), to preserve a superior position with respect
to other creditors, or, to the extent contemplated by Section 11.9, to pursue injunctive or other equitable remedies.

 

(b) Arbitration.
If the Parties are unable to resolve any Dispute arising under this Agreement as contemplated by Section 11.2(a), then
(subject to the exceptions referred to in Section 11.2(a)(iv)) such Dispute will be submitted to mandatory and binding
arbitration at the election of any Party (the “Disputing Party”) pursuant to the following conditions:

 

(i) Procedures.
The arbitration will be conducted pursuant to the then applicable Commercial Arbitration Rules of the American Arbitration Association,
except as expressly provided in this Section 11.2 (the “AAA Rules”). The arbitrator(s) (the “Arbitrator(s)”)
will be selected pursuant to the procedures set forth in Section 11.2(b)(iii) below. In resolving the substance of
the Dispute, the Arbitrator(s) will apply substantive New York law or applicable substantive federal law without regard to the
conflicts of law principles of such state.

 

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(ii) Submission
to Arbitration. The Disputing Party will notify the other applicable Parties that it is submitting the Dispute to final and
binding arbitration to be conducted privately and confidentially in accordance with the terms of Article 10.

 

(iii) Selection
of Arbitrator(s). If the amount in dispute is less than $1,000,000, such Dispute will be resolved by a single Arbitrator
mutually acceptable to the applicable Parties. If LMP and Staluppi are unable to agree upon a mutually acceptable Arbitrator within
30 days of the submission of the Dispute to arbitration, such Arbitrator will be appointed in accordance with the AAA Rules.
If the amount in dispute is $1,000,000 or more, within 30 days after the notice of initiation of the arbitration
procedure, each of LMP (on the one hand) and Staluppi (on the other hand) will nominate one Arbitrator, who need not be neutral.
If any Party fails or refuses to timely nominate an Arbitrator, such Arbitrator will be appointed in accordance with the AAA Rules.
Upon selection of the two Arbitrators by the applicable Parties, the 2 Arbitrators will select a 3rd Arbitrator within
15 days after their appointment, failing agreement on which such 3rd Arbitrator will be appointed in accordance
with the AAA Rules. The Arbitrators, acting by majority vote, will resolve all Disputes between the applicable Parties. If one
of the Party-appointed Arbitrators refuses to participate in the proceedings or refuses to vote, the unanimous decision of the
other two Arbitrators will be binding.

 

(iv) Replacement
of Arbitrator. Should any Arbitrator refuse or be unable to proceed with arbitration proceedings as called for by this Section 11.2(b),
such Arbitrator will be replaced in the same manner by which he or she was appointed (e.g., if LMP appointed the departing
Arbitrator, LMP would appoint his or her replacement, and if the two Party-appointed Arbitrators appointed the departing Arbitrator,
then they would appoint his or her replacement).

 

(v) Place
of Arbitration. The arbitration will be conducted in the Manhattan, New York office of the American Arbitration Association.
The Parties expressly consent to the location of such arbitration and agree not to contest this venue provision or the choice of
law provision set forth in Section 11.2(b)(i) above, it being acknowledged and agreed that New York bears a reasonable
relation to this Agreement and the Parties have knowingly and voluntarily elected a New York forum. Any action in order to enforce
this arbitration clause or an award granted hereunder may be brought in the courts of the State of New York, in Nassau County,
and the federal courts with jurisdiction thereover. Each of the Parties (A) consents to the exclusive jurisdiction of such courts
in any such suit, action or proceeding, (B) irrevocably waives, to the fullest extent permitted by law, any objection which it
may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such
suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum, (C) will not attempt to
deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and (D) will not bring any
action relating to this Agreement or any of the transactions contemplated by this Agreement in any other court. Process in any
such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of
any such court. Without limiting the foregoing, each Party agrees that notice on such Party as provided in Article 10
will be deemed effective service of process on such Party.

 

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(vi) Conduct
of Arbitration. The Arbitrator(s) shall have the authority to determine the enforceability of this Section 11.2,
including whether the terms of the provisions under this Section 11.2 are conscionable. Upon the service of an arbitration
demand, the Parties will discuss and attempt to agree upon the manner, timing and extent of discovery that may be conducted prior
to and in preparation for the arbitration hearing. In the event the Parties are unable to agree upon the manner, timing and extent
of discovery, such issues will be submitted to the Arbitrator(s) for resolution. However, under no circumstances will the Arbitrator(s)
allow more depositions, interrogatories, requests for production of documents and requests for admission than permitted by the
presumptive limitations set forth in Fed. R. Civ. P. 26(b)(2). The Arbitrator(s) will have the authority to impose appropriate
sanctions, including an award of reasonable attorneys’ fees, against any party that fails to cooperate in good faith in discovery
permitted by this Section 11.2(b)(vi) or ordered by the Arbitrator(s). If the amount in dispute is less than $1,000,000,
unless otherwise agreed by the Parties the arbitration hearing will be conducted no later than 150 days after the determination
of the Arbitrator in accordance with the procedures set forth in Section 11.2(b)(iii). If the amount in dispute is
$1,000,000 or more, the arbitration hearing will be conducted at such time as the Parties have completed the discovery permitted
by this Section 11.2(b)(vi) and as determined by the Arbitrators. Unless otherwise agreed by the Parties, the arbitration
hearing will be conducted on consecutive days. There will be no transcript of the arbitration hearing. The Arbitrator(s) must give
effect to legal privileges including the attorney-client privilege and the work-product immunity.

 

(vii) Arbitration
Award. The Arbitrator(s) will render a binding, reasoned decision within 20 days following the completion of the arbitration
hearing. The award of the Arbitrator(s) will be in writing. The Arbitrator(s) must certify in the award that such award conforms
to the terms and conditions set forth in this Agreement (e.g., the award must comply with the parameters set forth in Article 8).
The award rendered by the Arbitrator(s) will be binding and conclusive, and Judgment on the award may be entered pursuant to Section 11.2(b)(v).

 

(viii) Time
of the Essence. The Arbitrator(s) are instructed that time is of the essence in the arbitration proceeding, and that the Arbitrator(s)
will have the right and authority to issue reasonable monetary sanctions against either LMP (on the one hand) or Staluppi (on the
other hand) if, upon a showing of good cause, such Party is unreasonably delaying the proceeding. The amount of such sanction will
be related to the additional harm, if any, caused by the delay.

 

(ix) Expenses.
The Arbitrator(s) will have the authority to assess the costs and expenses of the arbitration proceeding (including the Arbitrator(s)’
fees and expenses) against either LMP (on the one hand) or Staluppi (on the other hand). The Arbitrator(s) will also have the authority
to award attorneys’ fees and expenses to the prevailing side.

 

(x) Confidentiality.
To the fullest extent permitted by law, the arbitration proceedings and award will be maintained in confidence by the Parties,
except as otherwise required by Legal Requirements.

 

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(xi) Severability.
The provisions of this Section 11.2 are independent of the remaining provisions of this Agreement and the Parties intend
that the provisions of this Section 11.2 will continue in effect even though one or more provisions of the Agreement
(including, for the avoidance of doubt, any provision of this Section 11.2) will be determined to be invalid or unenforceable
by a court of competent jurisdiction. This agreement to arbitrate will also survive the termination or expiration of this Agreement.

 

(c) Acknowledgment.
THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT THEY HAVE READ AND UNDERSTOOD THIS SECTION 11.2 AND THAT THEY ARE
HEREBY KNOWINGLY AND VOLUNTARILY WAIVING THEIR RIGHT TO A JURY TRIAL. 

 

11.3 Waiver
of Compliance; Consents. Except as otherwise provided in this Agreement, any failure of any of the Parties to comply with any
obligation, covenant, agreement or condition in this Agreement may be waived by the Person or Persons entitled to the benefits
thereof only by a written instrument signed by the Person or Persons granting such waiver, but such waiver or failure to insist
upon strict compliance with such obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure.

 

11.4 Expenses.
Except as otherwise provided in this Agreement, (a) Staluppi will be responsible for all legal fees, accountant’s fees, consultant’s
fees, broker fees, investment banker’s fees, other advisory fees and other costs and expenses that Staluppi may incur in
connection with the negotiation, preparation, execution or performance of this Agreement, and (b) LMP will be responsible for all
legal fees, accountant’s fees, consultant’s fees, broker fees, investment banker’s fees, other advisory fees
and other costs and expenses that LMP and its Affiliates incur in connection with the negotiation, preparation, execution or performance
of this Agreement.

 

11.5 Completion
of Schedules. The listing (or inclusion of a copy) of a document or other item under one Schedule to a representation or warranty
made in this Agreement will be deemed adequate to disclose an exception to a separate representation or warranty made in this Agreement
only if such listing has sufficient detail on its face that it is reasonably clear that such document or other item applies
to such other representation or warranty made in this Agreement.

 

11.6 Invalidity.
In the event that any one or more of the provisions set forth in this Agreement or in any other instrument referred to in this
Agreement will, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect any other provision of this Agreement or any other such instrument.

 

11.7 No
Third-Party Beneficiaries. This Agreement is solely for the benefit of (a) the Parties and their successors and assigns permitted
under this Agreement, and (b) LMP Indemnified Parties and the Staluppi (solely with respect to such Persons’ rights to indemnification
pursuant to Article 8 and the rights to enforce such rights to indemnification pursuant to this Article 11),
and no provisions of this Agreement will be deemed to confer upon any other Person any remedy, Claim, Liability, reimbursement,
cause of action or other right except as expressly provided in this Agreement.

 

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11.8 No
Presumption Against Any Party. Neither this Agreement nor any uncertainty or ambiguity herein will be construed or resolved
against any Party, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by each
of the Parties and their counsel and will be construed and interpreted according to the ordinary meaning of the words used so as
to fairly accomplish the purposes and intentions of all Parties.

 

11.9 Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same instrument.

 

11.10 Entire
Agreement; Amendments. This Agreement, together with all Exhibits, Annexes and Schedules hereto, and the other Transaction
Documents constitute the entire agreement of the Parties with regard to the subject matter hereof and supersede all prior and contemporaneous
agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. No amendment, supplement or
modification of this Agreement will be binding unless executed in writing by all Parties

 

11.11 Electronic
Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more Parties
, and an executed copy of this Agreement may be delivered by one or more Parties by facsimile or similar instantaneous electronic
transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and delivery
shall be considered valid, binding and effective for all purposes. At the request of any Party, all Parties agree to execute an
original of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

 

11.12 Severability.
Should any provision of this Agreement be held unenforceable or invalid under the laws of the United States of America or the State
of New York, or under any other applicable laws of any other jurisdiction, then the Parties agree that such provision shall be
deemed modified for purposes of performance of this Agreement in such jurisdiction to the extent necessary to render it lawful
and enforceable, or if such a modification is not possible without materially altering the intention of the Parties , then such
provision shall be severed here from for purposes of performance of this Agreement in such jurisdiction. The validity of the remaining
provisions of this Agreement shall not be affected by any such modification or severance, except that if any severance materially
alters the intentions of the Parties as expressed herein (a modification being permitted only if there is no material alteration),
then the Parties shall use commercially reasonable efforts to agree to appropriate equitable amendments to this Agreement in light
of such severance, and if no such agreement can be reached within a reasonable time, any party may initiate arbitration under the
then current commercial arbitration rules of the American Arbitration Association to determine and effect such appropriate equitable
amendments.

 

11.13 Binding
Effect. All the terms, provisions, covenants and conditions of this Agreement shall be binding upon and inure to the benefit
of and be enforceable by the Parties and their respective heirs, executors, administrators, representatives, successors and permitted
assigns.

 

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11.14 Assignment.
This Agreement and the rights under this Agreement may not be assigned by LMP without the prior written consent of Staluppi; provided,
however, that LMP will be permitted, without Staluppi’s consent, to (a) collaterally assign this Agreement and
its rights herein and in the other Transaction Documents to any of LMP’s or its Affiliate’s lenders, (b) assign the
provisions and benefits of this Agreement and the other Transaction Documents to any Affiliate of LMP provided that, unless otherwise
consented to in writing by Staluppi, LMP shall remain contractually liable hereunder for any payment obligations of LMP, and Staluppi
hereby consents to any such assignment. This Agreement and the rights hereunder may not be assigned by Staluppi without the prior
written consent of LMP. Subject to the foregoing, this Agreement will be binding upon and inure to the benefit of the Parties and
their respective successors and assigns.

 

11.15 Computation
of Time. Whenever this Agreement requires that something be done within a period of days, such period shall: (a) not include
the day from which such period commences; (b) include the day upon which such period expires; (c) expire at 8:00 p.m. (eastern)
on the date by which such thing is to be done; or (d) be extended by 2 Business Days if the final day of such period falls
on a Saturday, Sunday, or bank holiday in the state where such thing is to be done

 

11.16 Interpretation
& Administration. The words “include”, “includes”, “included”, “including”
and “such as” do not limit the preceding words or terms and will be deemed to be followed by the words “without
limitation.” The Parties have a duty of good faith and fair dealing. All captions and headings contained in this Agreement
are for convenience of reference only and will not be construed to limit or extend the terms or conditions of this Agreement. All
pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.
All terms defined in this Agreement in their singular or plural forms, have correlative meanings when used herein in their plural
or singular forms, respectively. Each Party and its counsel have reviewed this Agreement and the rule of construction that any
ambiguities are to be resolved against the drafter will not be employed in the interpretation of this Agreement or any amendments,
schedules or exhibits hereto.

 

(signatures on the
following page)

 

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IN WITNESS WHEREOF,
the Parties have executed this Membership Interest Purchase Agreement effective as of the Effective Date.

 

	 	LMP:
	 	 
	 	LMP Long island 001 Automotive Holdings, Inc.
	 	 	 
	 	By:	                     
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	STALUPPI:
	 	 
	 	 
	 	John Staluppi

 

 

48

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