Document:

Exhibit 10.7
Confidential
MEMBERSHIP INTEREST PURCHASE AGREEMENT
by and between
ANDOVER ENVIRONMENTAL SOLUTIONS, LLC
and
LITTON ENTERPRISES INC.
DATED APRIL 18, 2022
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MEMBERSHIP INTEREST PURCHASE AGREEMENT
This Membership Interest Purchase Agreement (this “Agreement”), dated as of April 18, 2022 (the “Effective Date”), is entered into by and among Andover Environmental Solutions, LLC, a Delaware limited liability company (“Seller”), and Litton Enterprises Inc., a Texas corporation (“Purchaser”). Purchaser and Seller are each a “Party” and collectively the “Parties”.
RECITALS
WHEREAS, Seller and Purchaser collectively own all of the issued and outstanding Membership Interests (as defined in that certain Limited Liability Company Agreement of the Company dated as of January 20, 2021) (the “Units”) of ANC Green Solutions – Zodega, LLC, a Delaware limited liability company (the “Company”);
WHEREAS, the Company is the sole-member of Zodega Landscape Services, LLC, a Delaware limited liability company (“Zodega Opco”);
WHEREAS, Seller owns fifty-one (51) Units (the “Zodega Units”) all of which are uncertificated;
WHEREAS, Seller is entitled to receive payments in its capacity as a lender pursuant to: (1) that certain Promissory Note and Guaranty dated as of January 26, 2021, issued by Purchaser to Seller (the “Texas Seasons Note”), (2) that certain Promissory Note and Guaranty dated as of February 18, 2021, issued by Purchaser to Seller (the “GreenTex Note”), (3) that certain Promissory Note and Guaranty dated as of February 19, 2021, issued by Purchaser to Seller (the “CJs Note”), (4) that certain Promissory Note and Guaranty dated as of March 12, 2021, issued by Purchaser to Seller (the “Lillard Note”, and together with the Texas Seasons Note, the GreenTex Note, and the CJs Note, the “Deficit Loans”), (5) that certain Secured Promissory Note dated as of September 28, 2021, issued by Zodega Opco to Seller (the “September Note”), (6) that certain Amended and Restated Secured Promissory Note dated as of November 3, 2021, issued by Zodega Opco to Seller’s parent that was assigned to Seller (the “November Note”), and (7) that certain Secured Promissory Note dated as of February 1, 2022, issued by Zodega Opco to Seller (the “February Note”, and together with the Deficit Loans, the September Note, and the November Note, the “Promissory Notes”);
WHEREAS, pursuant to that certain Asset Purchase and Contribution Agreement dated as of January 20, 2021, by and among the Company, Zodega Opco, Seller, Robert Dihu, and Larry Litton Jr., Purchaser acquired or acquired rights to 51,290 shares of class “A” common stock (the “ANC Shares”) of Andover National Corporation, a Delaware corporation (“ANC”);
WHEREAS, the Parties hereby waive the notice and provisions related to Disposition of the Units under Article 13 of the Company’s Limited Liability Company Agreement (the “Company Agreement”) or as otherwise required by Law, including the Delaware Limited Liability Company Act;
WHEREAS, Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, the Promissory Notes and the Zodega Units (collectively, the “Purchased Interests”), subject to the terms and conditions set forth herein; and
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NOW, THEREFORE, in consideration of the recitals, the mutual representations, warranties, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, Purchaser and Seller hereby agree as follows:
ARTICLE 1
DEFINITIONS
Unless otherwise defined elsewhere in this Agreement, the following terms shall have the meanings specified in this Article 1 unless the context otherwise requires:
“Action” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, hearing, audit, notice of violation, proceeding, litigation, citation, summons, subpoena, charge, complaint, arbitration, grievance, audit, administrative order, or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.
“Affiliate” means with respect to any Person, a Person that directly or indirectly controls, is controlled by, or is under common control with, any such Person. The term “control” (including the terms “controlled by” or “under common control with”) means, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities, membership interests, by contract or otherwise. The term “Affiliate” also includes (a) any partner, officer, director, manager, or other official of such Person, and (b) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, or other relative with a relationship (by blood, marriage or adoption) not more remote than first cousin of any of the foregoing, of such Person.
“Business” means the current business of the Company and Zodega Opco.
“Claim” means any and all claims, causes of action, demands, payments, charges, lawsuits, suits, proceedings, governmental investigations or audits and administrative orders, judgments, liabilities, losses, damages, penalties, fines and costs and expenses (including reasonable attorneys’ fees, expert fees, court costs, mediation expenses, and other legal or other expenses) incurred in connection therewith and including liabilities, costs, losses and damages.
“Closing Date” means the date on which the Closing occurs.
“Code” means the Internal Revenue Code of 1986, as amended (and, as appropriate hereunder, the Treasury Regulations).
“Contract” and “Contracts” means, with respect to any Person, any contract, license, sublicense, purchase order, lease, sublease, agreement or instrument, or any binding commitment to enter into any of the foregoing (in each case, whether written or oral) to which such Person is a party or by which any of its assets are bound.
“Governmental Authority” means any federal, state, provincial, territorial, municipal, local, or foreign government or any governmental or quasi-governmental authority of any nature, or political subdivision thereof, or any agency or instrumentality of such government or political
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subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.
“Intellectual Property” means all (a) trademarks, service marks, logos, corporate names, domain names, protected models, designs, created works, assumed names, trade names or other trade rights of Seller associated with the Business, whether or not registered (b) e-mail addresses, websites, URLs, phone numbers and internet domain name registrations of Seller associated with the Business, and (c) rights under any licenses of Seller to use any of the foregoing types of intellectual property.
“Law” or “Laws” means all federal, state, local or foreign laws, legislation, statutes, constitutions, rules, regulations, codes, edicts, orders, judgments, decrees, ordinances, or legally binding directives, guidance or pronouncements or rules of common law of any Governmental Authority.
“Liability” or “Liabilities” means any debt, obligation, duty, liability of any nature (including any unknown, undisclosed, unfixed, unliquidated, unsecured, unmatured, unaccrued, unasserted, contingent, conditional, inchoate, implied, vicarious, joint, several, or secondary liability), or STRICT LIABILITY (INCLUDING STRICT LIABILITY ARISING UNDER ENVIRONMENTAL LAW) regardless of whether such debt, obligation, duty, or liability would be required to be disclosed on a balance sheet prepared in accordance with generally accepted accounting principles.
“Lien” means any liens, claims, options, warrants, charges, security interests, pledges, mortgages, rights of first refusal, warrants, options, phantom equity interests, rights (including preemptive rights or equity appreciation rights), or other encumbrances whatsoever.
“Losses” means any losses, liabilities, claims, damages (including punitive, incidental, consequential, special or indirect damages, including loss of revenue, diminution in value or any damages based on any type of multiple), penalties, fines, judgments, awards, settlements, Taxes, costs, fees, expenses (including reasonable attorneys’ fees) and disbursements.
“Person” means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, trust, estate, association, organization or other entity.
“Representative” means, with respect to any Person, any and all current directors, officers, managers, employees, consultants, financial advisors, counsel, attorneys, law firms, accountants and other agents of such Person.
“Restricted Period” means the period beginning on the Closing Date and ending on the second (2nd) anniversary of the Closing Date.
“Tax” (and with correlative meaning, “Taxes”) means any federal, state, local or foreign income, gross receipts, property, sales, use, service, license, excise, environmental, stamp, franchise, employment, payroll, severance, occupation, social security, unemployment,
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withholding, alternative or add-on minimum, ad valorem, value added, transfer, recording or excise tax, or any other tax, custom, duty, governmental fee, levy or other like assessment or charge of any kind whatsoever, together with any interest, penalty or addition thereto.
“Tax Return” means any report, return (including estimated) or other information required (including any attachments or schedules required to be attached to such report, return, or other information) to be supplied (or actually supplied) to a Governmental Authority or third party in connection with any Taxes.
“Transaction Documents” means this Agreement and any other agreement, instrument, notice or other document contemplated hereby or thereby.
“Transactions” means the purchase and sale of the Purchased Interests, and the related events and transactions contemplated by this Agreement and the Transaction Documents.
“Zodega Opco Assets” means all of the property, assets, rights, and interests used or held by the Company and its subsidiaries (in each case, only to the extent that such property, asset, right, or interest is currently owned by the Company and its subsidiaries) (hereafter the Company’s subsidiaries includes Zodega Opco), including, but not limited to the following: all inventory of raw materials, work in process, parts, subassemblies and finished goods, if any, wherever located and whether or not obsolete or carried on the Company and its subsidiaries’ books of account, in each case with any transferable warranty and service rights with respect to such assets; all personal property and interests therein, wherever located, including all personal property, and all vehicles, tools, parts and supplies, fuel, machinery, equipment, tooling, furniture, furnishings, appliances, fixtures, office equipment and supplies, computers, servers, any electronic equipment, owned and licensed computer hardware and software and related documentation (including any source code or systems documentation associated therewith), stored data, communication equipment, trade fixtures and leasehold improvements, in each case with any transferable warranty and service rights with respect to such assets; all rights under all contracts, including employment contracts and restrictive covenants, except for any Liability or Lien that is otherwise excluded in the Agreement; all right, title and interest in and to the Company and its subsidiaries’ Intellectual Property and intellectual property rights; all customer lists, e-mail addresses, telephone numbers and fax numbers; all permits used in the Business or held in the Company’s name; any Claims or Actions by the Company and its subsidiaries, to the extent assignable against any third party relating to the Business or the Purchased Interests; originals, or where not available, copies, of all books and records, including, but not limited to, books of account, ledgers and general, financial and accounting records, customer records and files, vendor lists, price lists, distribution lists, compliance records and procedures, customer complaints and inquiry files, records and data (including all correspondence with any Governmental Authority), sales material and records (including pricing history, total sales, terms and conditions of sale, sales and pricing policies and practices), strategic plans, internal financial statements, marketing and promotional surveys, material and research relating to the Business or Company and its subsidiaries; credit cards, financial accounts, accounts receivables, amounts owed to the Company and its subsidiaries under any contract, agreement, or otherwise; insurance claims, insurance proceeds, rights under all insurance policies issued on the Company, its subsidiaries, and its Representatives; all rights under warranties, indemnities and all similar rights against third parties to the extent related to any of the
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Company and its subsidiaries’ assets; leasehold rights; and all goodwill generated by or associated with the Company, its subsidiaries, and the Business.
ARTICLE 2
PURCHASE AND SALE
2.1Incorporation of Recitals. The Recitals set forth above are incorporated in and made part of this Agreement.
2.2Purchase and Sale. Subject to the terms and conditions of this Agreement, at the Closing, Seller hereby sells, assigns, transfers, conveys and delivers to Purchaser, free and clear of all Liens, and Purchaser hereby purchases and accepts from Seller on the terms set forth herein, all right, title, and interest of Seller in, to and under all of the Purchased Interests, which will consolidate in Purchaser ownership of all of the Zodega Opco Assets through Purchaser’s ownership of all of the Units of the Company and the Company’s ownership of all of the limited liability company interests of Zodega Opco.
2.3Purchase Price. The aggregate purchase price for the Purchased Interests (the “Purchase Price”) shall be equal to: (a) that certain Promissory Note, Pledge, and Guaranty by Purchaser and the pledgors and guarantors specified therein in the principal amount of One Million Eight Hundred Thousand and No/100 Dollars ($1,800,000.00) (the “Note”), and (b) the ANC Shares.
ARTICLE 3
CLOSING
3.1Closing. The Transactions shall close (the “Closing”) contemporaneously with the execution of this Agreement. The Parties need not attend the Closing in person, and the delivery of all documents described in Section 3.2 and Section 3.3 may be handled by electronic transmission. The Transactions shall be considered closed, and possession of the Purchased Interests and the risk of their loss shall be deemed to have been passed to Purchaser as of 5:00 p.m. Houston time on the Closing Date.
3.2Seller’s Deliveries. Subject to the conditions set forth in this Agreement, at the Closing, simultaneously with Purchaser’s deliveries hereunder, Seller shall deliver or caused to be delivered to Purchaser all of the following documents, certificates and instruments, all in form and substance reasonably satisfactory to Purchaser and its counsel:
(a)a counterpart to this Agreement, duly executed by Seller;
(b)resignation letters from Mr. Peter Cohen and Mr. Steve Saunders or any other Seller Representative resigning, and removal documents for Mr. Milun Patel removing him, from any and all positions held with the Company and Zodega Opco effective as of the Closing Date, duly executed by each such Person or, with respect to the removal documents, other appropriate signatories;
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(c)all written resolutions adopted by the Seller’s managers authorizing the execution, delivery and performance of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby and thereby; and
(d)such other documents, certificates and instruments reasonably necessary to consummate the Transactions.
3.3Purchaser’s Deliveries. Subject to the conditions set forth in this Agreement, at the Closing, simultaneously with Seller’s deliveries hereunder, Purchaser shall deliver or cause to be delivered to Seller all of the following documents, certificates and instruments, all in form and substance reasonably satisfactory to Seller and its counsel:
(a)the Purchase Price in accordance with Section 2.3 (including the Note, duly executed by Purchaser and each pledgor and guarantor specified therein);
(b)a counterpart to this Agreement, duly executed by Purchaser;
(c)all written resolutions adopted by Purchaser’s board of directors authorizing the execution, delivery and performance of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby and thereby; and
(d)such other documents, certificates and instruments reasonably necessary to consummate the Transactions.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller makes the following representations and warranties to Purchaser:
4.1Organization and Authority. Seller is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware. Seller has all requisite company power and authority to carry on the business and to own and use the assets and properties owned and used by it. Seller has full company power and authority to execute and deliver this Agreement and to consummate the Transactions. Any and all company action on the part of Seller and its managers necessary for the authorization, execution and delivery of this Agreement, and the performance of all obligations of Seller hereunder and thereunder, has been taken. This Agreement has been duly and validly executed and delivered and constitutes a valid and legally binding obligation of Seller, enforceable against Seller in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
4.2Ownership of Units. The Zodega Units constitute all of the Units of the Company of record beneficially owned by Seller and represent the entire interest of Seller in the Company, and Seller currently has no right to acquire any additional stock or other interest in the Company.
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4.3Title. Seller has good, valid and marketable title to and is the sole owner of the Purchased Interests, and the Purchased Interests are free and clear of Liens. No other Person has an ownership or other interest in any of the Purchased Interests.
4.4No Conflicts; Consents. Seller’s execution, delivery and performance of this Agreement and the other Transaction Documents to which Seller is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) result in a violation or breach of, or default under, any provision of the organizational documents of Seller, including Seller’s certificate of formation and company agreement; (b) conflict with or result in a violation or breach of, or default under, any provision of any Law or any or order of any Governmental Authority applicable to Seller; (c) conflict with or result in a violation or breach of, or default under, any Contract, indenture, agreement, commitment, or other instrument to which Seller may be bound; (d) conflict with or result in a violation or breach of, or default under, any order, judgment or decree applicable to Seller, (e) except pursuant to the Note, result in the creation of any Lien upon any of the Purchased Interests or Zodega Opco Assets, or constitute an event which, after notice or lapse of time or both, would result in any such conflict, violation, breach, or default, or the creation of any such Lien, or (f) result in a violation or revocation of any required license, permit or approval from any Governmental Authority or other Person applicable to Seller, the Purchased Interests, or the Zodega Opco Assets, except, in the case of each of the preceding clauses, to the extent that the occurrence of any of the foregoing would not have a material adverse effect on the ability of Seller to enter into and perform its obligations under this Agreement.
4.5Brokers. Seller has not incurred any Liability to any Person for any brokerage fees, agent’s commissions, or finder’s fees in connection with the execution or delivery of this Agreement or the consummation of the transactions contemplated herein.
4.6Compliance with Laws. Seller has been and is in compliance in all material respects with all applicable Laws. No notice, citation, summons or order has been issued, no complaint has been filed and served, no penalty has been assessed and notice thereof given, and no investigation or review is pending or, to the Knowledge of Seller, threatened with respect to Seller or the Purchased Interests or the Company’s subsidiaries, by any Governmental Authority with respect to any alleged violation by Seller of any Law.
4.7Absence of Changes. Except as set forth on Schedule 4.7, since January 1, 2022, Seller has not: (i) created any Lien on any of the Purchased Interests or the Zodega Opco Assets except pursuant to the Promissory Notes or as reflected on Lien search results provided to Purchaser on April 11, 2022, (ii) failed to discharge or satisfy when due any Lien on any of the Purchased Interests or the Zodega Opco Assets for which Seller is solely responsible, or (iii) failed to keep in full force and effect insurance that was in place on December 31, 2021, that covered the Purchased Interests, the Zodega Opco Assets, the Company’s or Zodega Opco’s Representatives, or otherwise as required by the Company Agreement.
4.8No Other Representations. Except for the representations and warranties made by Seller in this Article 4, neither Seller nor any other Person makes any express or implied representation or warranty with respect to the Purchased Interests, the Company, the Company’s subsidiaries, or any of their respective businesses, operations, assets, liabilities, conditions
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(financial or otherwise) or prospects, and Seller hereby disclaims any such other representations or warranties.
4.9Texas Business Opportunities. To the knowledge of Seller, Seller has disclosed to Purchaser or the Company all business opportunities it has pursued in Texas that are in any way related to the Business (“Texas Business Opportunities”).
ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF PURCHASER
Purchaser makes the following representations and warranties to Seller:
5.1Organization and Authority. Purchaser is a corporation duly formed, validly existing and in good standing under the laws of the State of Texas. Purchaser has all requisite corporate power and authority to carry on the business and to own and use the assets and properties owned and used by it. Purchaser has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. Any and all corporate action on the part of Purchaser and its directors necessary for the authorization, execution and delivery of this Agreement, and the performance of all obligations of Purchaser hereunder and thereunder, has been taken. This Agreement has been duly and validly executed and delivered and constitutes a valid and legally binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
5.2Ownership of Shares. The ANC Shares constitute all of the issued and outstanding shares of ANC of record beneficially owned by Purchaser and represent the entire interest of Purchaser in ANC, and Purchaser currently has no right to acquire any additional stock or other interest in ANC.
5.3Title. Purchaser has good, valid and marketable title to and is the sole owner of the ANC Shares, and the ANC Shares are free and clear of Liens. No other Person has an ownership or other interest in any of the ANC Shares.
5.4No Conflicts; Consents. Purchaser’s execution, delivery and performance of this Agreement and the other Transaction Documents to which Purchaser is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) result in a violation or breach of, or default under, any provision of the organizational documents of Purchaser, including Purchaser’s certificate of formation and bylaws; (b) conflict with or result in a violation or breach of, or default under, any provision of any Law or any or order of any Governmental Authority applicable to Purchaser; (c) conflict with or result in a violation or breach of, or default under, any order, judgment or decree applicable to Purchaser, (d) result in the creation of any Lien upon any of the ANC Shares, or constitute an event which, after notice or lapse of time or both, would result in any such conflict, violation, breach, or default, or the creation of any such Lien, or (e) result in a violation or revocation of any required license, permit or approval from any Governmental Authority or other Person applicable to Purchaser or the ANC Shares, except, in the
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case of each of the preceding clauses, to the extent that the occurrence of any of the foregoing would not have a material adverse effect on the ability of Purchaser to enter into and perform its obligations under this Agreement.
5.5Brokers. Purchaser has not incurred any Liability to any Person for any brokerage fees, agent’s commissions, or finder’s fees in connection with the execution or delivery of this Agreement or the consummation of the transactions contemplated herein.
5.6Compliance with Laws. Purchaser has been and is in compliance in all material respects with all applicable Laws. No notice, citation, summons or order has been issued, no complaint has been filed and served, no penalty has been assessed and notice thereof given, and no investigation or review is pending or, to the Knowledge of Purchaser, threatened with respect to Purchaser or the ANC Shares, by any Governmental Authority with respect to any alleged violation by Purchaser of any Law.
5.7Absence of Changes. Except as set forth on Schedule 5.7, since January 1, 2022, Purchaser has not: (i) created any Lien on any of the ANC Shares, (ii) failed to discharge or satisfy when due any Lien on any of the ANC Shares.
5.8No Other Representations. Except for the representations and warranties made by Purchaser in this Article 5, neither Purchaser nor any other Person makes any express or implied representation or warranty with respect to the ANC Shares, the Company, the Company’s subsidiaries, or any of their respective businesses, operations, assets, liabilities, conditions (financial or otherwise) or prospects, and Purchaser hereby disclaims any such other representations or warranties.
ARTICLE 6
COVENANTS
6.1Confidentiality. Each Party shall, and shall cause its Affiliates and Representatives to, keep confidential and not disclose to any other Person or use for its or his own benefit or the benefit of any other Person the terms and provisions of this Agreement or any confidential proprietary information, technology, know-how, trade secrets (including all customer lists), product formulas, industrial designs, franchises, inventions or other intellectual property regarding the other Party, its respective Affiliates, or any of their respective businesses and operations (“Confidential Information”). The obligations of the Seller under this Section 6.01 apply to the Company’s Confidential Information. The obligations of each Party under this Section 6.1 shall not apply to Confidential Information (i) that is or becomes generally available to the public without breach of the commitment provided for in this Section 6.1, or (ii) is required to be disclosed by Law; provided, however, that, in any such case, the disclosing Party shall notify the other Party as early as reasonably practicable prior to disclosure to allow the other Party to take appropriate measures to preserve the confidentiality of such Confidential Information.
6.2Non-Disparagement. Each Party agrees that it shall not, and shall cause each of its Representatives (acting on its or any of its Affiliates’ behalf) or Affiliates not to, at any time, in any written or oral communications with the press or other media, any customer, client, stakeholder, investor or supplier of the other Parties, or their Affiliates, or any other Person,
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criticize, ridicule, or make or encourage any other Person to make any statement that disparages, is derogatory of, or is negative toward the personal or business reputation, conduct or practices of the other Parties, any of their Affiliates, or any of their then current or former Representatives.
6.3Tax Matters.
(a)Purchaser, the Company, Seller and its Representatives shall take all actions, including the execution and delivery of such certificates and other documents, reasonably required to obtain lawful exemptions and otherwise lawfully minimize all transfer, documentary, sales, use, stamp, registration, vehicle transfer and other such Taxes imposed by any Governmental Authority and all recording or filing fees and notarial fees, if any, incurred in connection with the sale, transfer, conveyance, assignment, lease or other disposition, directly or indirectly of the Purchased Interests under this Agreement. However, any and all transfer, documentary, sales, use, stamp, registration, vehicle transfer and other such Taxes imposed by any Governmental Authority and all recording or filing fees and notarial fees, if any, incurred in connection with the sale, transfer, conveyance, assignment, lease or other disposition, directly or indirectly of the Purchased Interests under this Agreement shall be borne by Purchaser.
(b)The Parties will cause to be included in their respective Tax Returns for all taxable periods or partial periods ending on or before the Closing Date, all revenues and expenses relating to the operations of the Company during such periods or partial periods. Each of the Parties will prepare and timely file or cause to be prepared and timely filed all such Tax Returns with the appropriate Governmental Authorities. Each Party will make all payments of Tax shown to be due and owing by such Party in such Tax Returns.
(c)Seller and Purchaser shall (i) each promptly (and, in any event, within thirty (30) days) provide the other with such assistance as may reasonably be requested by any of them in connection with the preparation of any Tax Return, audit or other examination by any Governmental Authority or judicial or administrative proceedings relating to liability for Taxes for any period that ends on or includes the Closing Date, (ii) each retain and provide the other with any records or other information that may be relevant to such Tax Return, audit or examination, proceeding or determination, and (iii) each provide the other with any final determination of any such audit or examination, proceeding or determination that affects any amount required to be shown on any Tax Return of the other for any period. In addition, the Parties shall (a) retain, until the applicable statutes of limitations (including any extensions) have expired, copies of all Tax Returns, supporting work schedules, and other records or information that may be relevant to such Tax Returns for all Tax periods or partial periods ending on or before or that include the Closing Date, and (b) shall not destroy or otherwise dispose of any such books and records without first providing the other Party with a reasonable opportunity to review and copy those parts of the same directly relating to the operation of the Company, or to take possession of, the same.
(d)Purchaser shall deliver to Seller all notices from taxing authorities related to the Purchased Interests promptly upon their receipt.
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6.4Non-Solicitation Agreement.
(a)During the Restricted Period, and except as otherwise permitted below, Seller and its Representatives shall not in any way, directly or indirectly, (i) induce or attempt to induce any employee or independent contractor of Purchaser to terminate employment or engagement with Purchaser, (ii) otherwise interfere with or disrupt Purchaser’s relationship with its employees, independent contractors, vendors, or suppliers, (iii) solicit, entice, or hire away any employee or independent contractor of Purchaser, or (iv) hire or engage any employee or independent contractor of Purchaser or any former employee or former independent contractor of Purchaser whose employment or engagement with Purchaser ceased less than one (1) year before the date of such hiring or engagement. Seller acknowledges that any attempt on the part of Seller to induce others to leave Purchaser’s employ or engagement, or any effort by Seller to interfere with Purchaser’s relationship with its employees, independent contractors, vendors, or suppliers would be harmful and damaging to Purchaser. Notwithstanding any other term or provision in this Agreement to the contrary, Seller is not prohibited from hiring any person who seeks employment with Seller or any response to a newspaper advertisement or other form of public solicitation seeking potential employees.
(b)Seller acknowledges and agrees that the provisions of this Section 6.4 are reasonable and necessary to protect the legitimate business interests of Purchaser. Seller shall not contest that Purchaser’s remedies at law or in equity for any breach or threat of breach by Seller, any of its Affiliates, or Representatives of the provisions of this Section 6.4 will be inadequate, and that Purchaser shall be entitled to an injunction or injunctions, without the need to post a bond,  to prevent breaches of the provisions of this Section 6.4 and to enforce specifically such terms and provisions, in addition to any other remedy to which Purchaser may be entitled at law or equity. The restrictive covenant contained in this Section 6.4 is a covenant independent of any other provision of this Agreement or any other agreement between the Parties.
(c)If any of the provisions contained in this Section 6.4 shall for any reason be held to be excessively broad as to duration, scope, activity or subject, then such provision shall be construed by limiting and reducing it, so as to be valid and enforceable to the extent compatible with the applicable Law or the determination by a court of competent jurisdiction.
6.5Release from Guarantees. As soon as reasonably practicable (and, in any event, no later than May 27, 2022), Purchaser shall use commercially reasonable efforts (including substituting Seller with Purchaser) to remove and fully release, or cause the removal and full release, of Seller and any of its Affiliates (other than the Company and its subsidiaries) from any and all guarantees of any Liabilities of the Company and any of its subsidiaries, and Seller agrees to use commercially reasonable efforts to cooperate with Purchaser in order to effectuate the provisions of this Section 6.5.
6.6Further Actions. Each of the Parties shall use all reasonable efforts to take, or cause to be taken, all appropriate action, do or cause to be done all things necessary, proper or advisable, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this Agreement and the Transaction Documents to which it is or will be a party and consummate and make effective the transactions contemplated hereby and thereby.
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6.7Seller’s Business Opportunities. Notwithstanding the foregoing or anything to the contrary in the Company Agreement, neither Seller nor any of its Affiliates shall be prohibited from pursuing any business opportunities in Texas that arise after the Closing Date.  For the avoidance of doubt, “any business opportunities in Texas that arise after the Closing Date” does not include any Texas Business Opportunity.
ARTICLE 7
INDEMNIFICATION
7.1Survival and Limitations. The representations and warranties of Seller and Purchaser contained in this Agreement shall survive for a period of two (2) years following the Closing Date; except for representations and warranties contained in Section 4.1 (Organization and Authority), Section 4.3 (Title), Section 4.5 (Brokers), Section 5.1 (Organization and Authority), Section 5.3 (Title), and Section 5.5 (Brokers) which will continue in full force and effect in perpetuity; provided, however, Claims involving fraud, willful misconduct or intentional misrepresentation shall survive the execution and delivery of this Agreement and the consummation of the Transactions contemplated by this Agreement.
7.2Mutual Indemnification. Subject to the provisions of this Article 7, each Party (an “Indemnifying Party”) shall indemnify, defend and hold harmless the other Party and its Affiliates, Representatives, successors, transferees and assignees (the “Indemnified Parties”) from, against and in respect of any Claims or Actions that arise out of, relate to or result from (i) any breach by an Indemnifying Party of any representation, warranty, covenant, obligation, or agreement of the Indemnifying Party in this Agreement and (ii) any representation or warranty made by the Parties to this Agreement not having been true and correct and as of the Closing.
7.3Seller Indemnification. Seller shall indemnify, defend and hold harmless Purchaser and its Affiliates, Representatives, successors, transferees and assignees from, against and in respect of any Losses or Actions that arise out of, relate to or result from any breaches of Section 4.7.
7.4Purchaser Indemnification. Purchaser shall indemnify, defend and hold harmless Seller and its Affiliates (other than the Company and its subsidiaries), Representatives, successors, transferees and assignees from, against and in respect of any Losses or Actions that arise out of, relate to or result from any and all guarantees of any Liabilities of the Company and any of its subsidiaries by any of Seller and its Affiliates (other than the Company and its subsidiaries).
7.5Indemnification Procedure. Each Indemnified Party shall timely provide notice of a claim for indemnification pursuant to this Article 7 (a “Claim Notice”) in writing to the Indemnifying Party, specifying the nature and basis for such claim and a copy of all papers supporting, pertaining to, or served with, any such claim (if any); provided, however, that an Indemnified Party’s failure to send or delay in sending a Claim Notice shall 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. The Indemnified Party shall not settle or compromise any legal action without the Indemnifying Party’s express written consent, not to be unreasonably withheld, conditioned or delayed. For the avoidance of doubt, “Indemnifying Party” as used in this Section 7.5 shall include Seller under
​

12

Section 7.3 and Purchaser under Section 7.4, and “Indemnified Party” as used in this Section 7.5 shall include Purchaser and its Affiliates, Representatives, successors, transferees and assignees under Section 7.3 and Seller and its Affiliates (other than the Company and its subsidiaries), Representatives, successors, transferees and assignees under Section 7.4.
7.6Control of Third-Party Claims.
(a)In the event of the assertion of any Claim or Action against any Indemnified Party by a claimant that is not a party to this Agreement with respect to a matter subject to indemnity hereunder (a “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, however, that the Indemnified Party shall 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 hereunder, the Indemnified Party shall 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, hearings, and trial. The Indemnifying Party shall not be entitled to settle any Third-Party Claim without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed.
(b)If the Indemnifying Party, by the thirtieth (30th) day after receipt of notice of any Third-Party Claim (or, if earlier, by the tenth (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 reasonably deems appropriate, and the Indemnifying Party shall be entitled to participate in (but not control) the defense of such action, with its counsel and at its own expense, unless the Parties agree otherwise. The Indemnified Party shall not settle or compromise any Third-Party Claim for which it is entitled to indemnification hereunder, without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, conditioned or delayed.
7.7No Right of Set-Off. Neither Party may set-off any amount that may be owed to them by the other Party, whether under this Agreement or otherwise, against any amount that they owe to the other Party.
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ARTICLE 8
MISCELLANEOUS
8.1Fees and Expenses. Each Party will pay its own fees, expenses and disbursements and those of its Representatives incurred in connection with the execution, delivery and performance of this Agreement and the Transaction Documents and any amendments hereto or thereto and the consummation of the Transactions.
8.2Further Acts and Assurances. Seller shall, at any time and from time to time at and after the Closing, upon the written request of Purchaser and without additional consideration, take any and all steps reasonably necessary to place Purchaser in possession and operating control of the Purchased Interests, and Seller will do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances and assurances as may be reasonably required for the more effective transferring and confirming to Purchaser of any or all of the Purchased Interests.
8.3Notices, Etc. All notices, requests, demands or other communications required by this Agreement to be in writing shall be deemed to have been duly given to any party when delivered by overnight courier service or when delivered by e-mail with confirmation of receipt, in each case to the applicable addresses set forth below:
​
	If to Seller:
	    
	ANC Green Solutions – Zodega, LLC
c/o Andover National Corporation
40 West 57th Street, Suite 2020
New York, New York 16019
Attn:  Steve Saunders
E-mail:  steve@andovernational.com
​

	With a copy (which shall not constitute notice) to:
	​
	Balch & Bingham LLP
1901 6th Avenue North, Suite 1500
Birmingham, Alabama 35203
Attention:  David Bowsher
E-mail: dbowsher@balch.com
​
​

	If to Purchaser:
	​
	Litton Enterprises Inc.
7026 Old Katy Road, Suite 259
Houston, Texas 77024
Attn: Robert Dihu; Larry Litton Jr.
E-mail: rob@zodega.com;
             larryblittonjr@gmail.com
​

	With a copy (which shall not constitute notice) to:
	​
	Law Office of Shane McClelland, PLLC
440 Cobia Drive, Suite 101
Katy, Texas 77494
Attention: Shane McClelland
E-mail: shane@hmtrial.com

​
​

14

or to such other address as such Party shall have designated by notice so given to each other Party. Any notice which is delivered in the manner provided herein shall be deemed to have been duly given to the party to whom it is directed upon actual receipt by such party or its agent if receipt occurs during normal business hours and otherwise on the next business day.
8.4Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and permitted assigns. Without the prior written consent of the other Parties, no Party may assign or delegate either this Agreement or any of the rights or obligations of such Party. Any attempted assignment or delegation in violation of this Section 8.4 shall be void.
8.5Entire Agreement. The Transaction Documents and the schedules and exhibits thereto constitute the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions, whether written or oral, of the Parties hereto; provided, however, that this provision is not intended to abrogate any other written agreement between the Parties executed with or after this Agreement or any written agreement pertaining to another subject matter.
8.6No Third-Party Beneficiaries. Except for the Parties hereto and their assignees permitted hereunder, no other Person shall acquire any legal or equitable rights or remedies under this Agreement.
8.7Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. Any dispute or action arising under this Agreement shall be settled in the federal or state courts of the State of Delaware, to whose exclusive jurisdiction and venue each Party hereby submits. Seller and Purchaser hereby waive any objection to the propriety or convenience of such venue.
8.8Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF AN ACTION; (B) SUCH PARTY HAS SOUGHT THE ADVICE OF ITS COUNSEL REGARDING THE IMPLICATIONS OF THIS WAIVER AND HAS CONSIDERED SUCH IMPLICATIONS; (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS, CERTIFICATIONS, AND ACKNOWLEDGMENTS IN THIS SECTION 8.8.
8.9Severability. Any provision hereof which is prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
​

15

unenforceability in any jurisdiction will not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by Law, the Parties hereto waive any provision of Law which renders any such provision prohibited or unenforceable in any respect.
8.10Modification and Waiver. Any of the terms or conditions of this Agreement may be waived in writing at any time by the Party that is entitled to the benefits thereof. No waiver of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof. No delay or failure on the part of any Party hereto to exercise any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any waiver on the part of any Party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder; nor shall any single or partial exercise of any right, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.
8.11Headings. The headings of the Articles and Sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.
8.12Interpretive Provisions. Whenever appropriate from the context, each term, whether stated in the singular or the plural, shall include both the singular and the plural, and each pronoun, whether stated in the masculine, feminine or neuter gender, shall include the masculine, feminine and the neuter gender. Any reference in this Agreement to a contract, instrument, release, indenture, or other agreement or document being in a particular form or on particular terms and conditions means that such document shall be substantially in such form or substantially on such terms and conditions. Unless otherwise specified, all references in this Agreement to Articles and Sections are references to Articles and Sections of or to this Agreement. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Any reference herein to any law or regulation shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time. The words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof. With respect to the determination of any time period, the word “from” means “from and including” and the word “to” means “to and including.” With respect to all dates and time periods set forth or referred to herein, time is of the essence.
8.13No Strict Construction. The Parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.
8.14Counterparts; Facsimiles. This Agreement may be executed in any number of counterparts and electronically mailed or facsimile pages, each of which shall be deemed to be an original, but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies each signed by less than all, but together signed by all, the Parties hereto.
​

16

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the Effective Date.
​
	​
	SELLER:
	​

	​
	​

	​
	ANDOVER ENVIRONMENTAL SOLUTIONS, LLC,

	​
	a Delaware limited liability company

	​
	​

	​
	By:
	/s/ William Greenblatt

	​
	Name:
	​

	​
	Title:
	​

​
	​
	PURCHASER:
	​

	​
	​

	​
	LITTON ENTERPRISES INC.,

	​
	a Texas corporation

	​
	​

	​
	By:
	/s/ Robert Dihu

	​
	Name:
	​

	​
	Title:
	​

​

Signature Page
Membership Interest Purchase AgreementEX-4.10

 Exhibit 4.10 

DELCATH SYSTEMS, INC. 

2021 EMPLOYEE STOCK PURCHASE PLAN 

(As adopted by the Board of Directors on August 5, 2021 and approved by the stockholders on May 4, 2022) 

The purpose of the Delcath Systems, Inc. 2021 Employee Stock Purchase Plan (the “Plan”) is to provide eligible employees of
Delcath Systems, Inc. (the “Company”) and each Designated Subsidiary (as defined in Section 11) with opportunities to purchase shares of the Company’s common stock, par value $0.01 per share (the
“Common Stock”). The Plan is intended to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be
interpreted in accordance with that intent. Subject to adjustment pursuant to Section 17(a), the shares of Common Stock that may be sold pursuant to the Plan shall not exceed in the aggregate 260,295 shares of Common Stock.

 1. Administration. The Plan is administered by the person or persons appointed by the Company’s Board of Directors (the
“Board”) for such purpose or, in the event of no such appointment, the Compensation and Stock Option Committee of the Board (the “Administrator”). The Administrator has authority at any time to: (a) adopt,
alter and repeal such rules, guidelines and practices for the administration of the Plan and for its own acts and proceedings as it shall deem advisable; (b) interpret the terms and provisions of the Plan; (c) make all determinations it
deems advisable for the administration of the Plan; (d) decide all disputes arising in connection with the Plan; (e) generally, to exercise such powers and to perform such acts as set forth in the Plan and to exercise such other powers and
to perform such other acts as it deems necessary or expedient to promote the best interests of the Company and its affiliates and to carry out the intent that the Plan be treated as an “employee stock purchase plan” under
Section 423(b) of the Code; and (f) to adopt such rules, procedures and sub-plans relating to the operation and administration of the Plan as are necessary or appropriate under applicable local laws,
regulations and procedures to permit or facilitate participation in the Plan by employees of the Company or any Designated Subsidiary who are foreign nationals or employed or located outside the United States. All interpretations and decisions of
the Administrator shall be final, binding and conclusive on all persons, including the Company and the Participants. No member of the Board or the Administrator or any other individual exercising administrative authority with respect to the Plan
shall be liable for any action or determination made in good faith with respect to the Plan or any option granted hereunder. 
 2.
Offerings. The Company will make one or more offerings to eligible employees to purchase Common Stock under the Plan (each, an “Offering”). Any Offering may, as determined by the Administrator, consist of one or more periods
of time specified in the Offering beginning on the first day of the Offering or on the next day following an Exercise Date (as defined in Section 8) within an Offering and ending on the next-following Exercise Date (each, a
“Purchase Period”). The Administrator shall designate the duration, frequency, and start and end dates of each Offering (which may overlap with another Offering) and the number and duration of Purchase Periods within an Offering,
provided that no Offering shall exceed twenty-seven (27) months. The 

  
 1 

 
Administrator shall have the authority to set such other terms of each Offering, consistent with the Plan, and subject to compliance with the requirement of Section 423(b)(5) of the Code
that all employees granted the right to purchase shares of Common Stock pursuant to the any Offering shall have the same rights and privileges. The provisions of separate Offerings need not be identical. The Administrator may, in its sole
discretion, structure an Offering so that if the Fair Market Value of the Common Stock on the first day of a new Purchase Period within the period of such Offering is less than or equal to the Fair Market Value of the Common Stock on the Offering
Date, then (i) that Offering will terminate immediately (after giving effect to the exercise and purchase of shares of Common Stock for the Purchase Period within such Offering that just ended), and (ii) the Participants in such terminated
Offering will be automatically enrolled in a new Offering beginning on the first day of the new Purchase Period. 
 3. Eligibility.
All individuals classified as employees on the payroll records of the Company and each Designated Subsidiary are eligible to participate in any one or more of the Offerings under the Plan, provided that as of the first day of the
applicable Offering (the “Offering Date”) they have completed at least 30 days of employment, and further provided that, unless otherwise specified in an Offering, employees whose customary employment is 20
hours or less per week shall not be eligible. Notwithstanding any other provision herein, individuals who are not contemporaneously (with the first day of the applicable Offering) classified as employees of the Company or a Designated Subsidiary for
purposes of the Company’s or applicable Designated Subsidiary’s payroll system are not considered to be eligible employees of the Company or any Designated Subsidiary and shall not be eligible to participate in the Plan. In the event any
such individuals are reclassified as employees of the Company or a Designated Subsidiary for any purpose, including, without limitation, common law or statutory employees, by any action of any third party, including, without limitation, any
government agency, or as a result of any private lawsuit, action or administrative proceeding, such individuals shall, notwithstanding such reclassification, remain ineligible for participation. The exclusive means for individuals who are not
contemporaneously classified as employees of the Company or a Designated Subsidiary on the Company’s or Designated Subsidiary’s payroll system to become eligible to participate in the Plan is through an amendment to this Plan, duly
executed by the Company, which specifically renders such individuals eligible to participate herein. 
 4. Participation. 

(a) Enrollment. An eligible employee who is not a Participant on any Offering Date may participate in such Offering by
submitting an enrollment form (which may be in written or electronic form) to his or her appropriate payroll location at least 15 business days before the Offering Date (or by such means, at such place or by such other deadline as shall be
established by the Administrator for the Offering). The enrollment form will (a) state a whole percentage or the amount to be deducted from an eligible employee’s Compensation (as defined in Section 11) per pay
period, (b) authorize the purchase of Common Stock in each Offering in accordance with the terms of the Plan and (c) specify the exact name or names in which shares of Common Stock purchased for such individual are to be issued pursuant to
Section 10. An employee who does not enroll in accordance with these procedures will be deemed to have waived the right to participate. Unless a Participant files a new enrollment form or withdraws from the Plan, such
Participant’s deductions and purchases will continue at the same percentage or amount of Compensation for future Offerings, provided he or she remains an eligible employee. 

  
 2 

 (b) Notwithstanding the foregoing, participation in the Plan will neither be
permitted nor be denied contrary to the requirements of the Code. 
 5. Employee Contributions. Each eligible employee may authorize
payroll deductions in either a dollar amount or as a percentage of Compensation, and subject to such minimums and maximums, as determined by the Administrator and set forth in the Offering or enrollment form applicable to such Offering. The Company
will maintain book accounts showing the amount of payroll deductions made by each Participant for each Offering. No interest will accrue or be paid on payroll deductions. 

6. Deduction Changes. Except as provided in Section 7, a Participant may not increase or decrease his or her
payroll deduction during any Offering, but may increase or decrease his or her payroll deduction with respect to the next Offering (subject to the limitations of Section 5) by filing a new enrollment form at least 15 business days before the
next Offering Date (or by such other deadline as shall be established by the Administrator for the Offering). 
 7. Withdrawal. A
Participant may withdraw from participation in the Plan by delivering a written notice of withdrawal to his or her appropriate payroll location. The Participant’s withdrawal will be effective as of the next business day. Following a
Participant’s withdrawal, the Company will promptly refund all payroll deductions accumulated on behalf of such Participant under the Plan that have not been used to purchase shares of Common Stock (without interest) as soon as administratively
practicable. Partial withdrawals are not permitted. Such an employee may not begin participation again during the remainder of the Offering, but may enroll in a subsequent Offering in accordance with Section 4. 

8. Grant of Options. On each Offering Date, the Company will grant to each eligible employee who is then a Participant in the Plan an
option (“Option”) to purchase on the last day of such Offering (or, where there are multiple Purchase Periods within the period of an Offering, the last day of a Purchase Period) (the “Exercise Date”), at the Option
Price hereinafter provided for, the lowest of (a) a number of shares of Common Stock determined by dividing such Participant’s accumulated payroll deductions on such Exercise Date by the lower of (i) 85 percent of the Fair Market
Value of the Common Stock on the Offering Date, or (ii) 85 percent of the Fair Market Value of the Common Stock on the Exercise Date, or (b) the maximum number of shares as shall be established by the Administrator in advance of and set
forth in the Offering; provided, however, that such Option shall be subject to the limitations set forth below. Each Participant’s Option shall be exercisable only to the extent of such Participant’s accumulated payroll deductions on the
Exercise Date. The purchase price for each share purchased under each Option (the “Option Price”) will not be lower than the lesser of 85 percent of the Fair Market Value of the Common Stock on the Offering Date or the Exercise
Date. 

  
 3 

 Notwithstanding the foregoing, no Participant may be granted an Option hereunder if such
Participant, immediately after the option was granted, would be treated as owning stock possessing 5 percent or more of the total combined voting power or value of all classes of stock of the Company or any Parent or Subsidiary (as defined in
Section 11). For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of a Participant, and all stock which the Participant has a
contractual right to purchase shall be treated as stock owned by the Participant. In addition, no Participant may be granted an Option which permits his or her rights to purchase stock under the Plan, and any other “employee stock purchase
plan” (under Section 423(b) of the Code) of the Company and its Parents and Subsidiaries (which, for the avoidance of doubt, does not include the Company’s 2020 Omnibus Equity Incentive Plan), to accrue at a rate which exceeds $25,000
of the fair market value of such stock (determined on the option grant date or dates) for each calendar year in which the Option is outstanding at any time. The purpose of the limitation in the preceding sentence is to comply with
Section 423(b)(8) of the Code and shall be applied taking Options into account in the order in which they were granted. 
 9.
Exercise of Option and Purchase of Shares. The Option of each employee who continues to be a Participant in the Plan on the Exercise Date shall be automatically exercised on such date and he or she shall acquire from the Company such number
of whole shares of Common Stock reserved for the purpose of the Plan as his or her accumulated payroll deductions on such date will purchase at the Option Price, subject to any other limitations contained in the Plan. Any amount remaining in a
Participant’s account at the end of an Offering solely by reason of the inability to purchase a fractional share will be carried forward to the next Offering; if the amount remaining in the Participant’s account after the purchase of
shares of Common Stock is at least equal to the amount required to purchase one (1) whole share of Common Stock on the Exercise Date of the Offering, then such remaining amount shall be distributed in full to such Participant at the end of the
Offering without interest. If any Option granted under the Plan shall for any reason terminate without having been exercised, the shares of Common Stock not purchased under such Option shall again become available for issuance under the Plan. 

10. Issuance of Common Stock. Shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the
name of the employee and another person of legal age as joint tenants with rights of survivorship, or in the name of a broker authorized by the employee to be his, her or their, nominee for such purpose. 

11. Certain Definitions. 

The term “Compensation” means the amount of base pay, prior to salary reduction pursuant to Sections 125, 132(f) or 401(k) of
the Code, but excluding overtime, incentive or bonus awards, imputed income, allowances and reimbursements for expenses such as relocation allowances or travel expenses, income or gains on the exercise of Company stock options, and similar items.

 The term “Designated Subsidiary” means any present or future Subsidiary (as defined below) that has been designated by
the Board to participate in the Plan. The Board may so designate any Subsidiary, or revoke any such designation, at any time and from time to time, either before or after the Plan is approved by the stockholders. 

  
 4 

 The term “Fair Market Value of the Common Stock” on any given date means
the fair market value of the Common Stock determined in good faith by the Administrator; provided, however, that if the Common Stock is admitted to quotation on the Nasdaq Stock Market or another national securities exchange, the determination shall
be made by reference to the closing price on such date. If there is no closing price for such date, the determination shall be made by reference to the last date preceding such date for which there is a closing price. 

The term “Parent” means a “parent corporation” with respect to the Company, as defined in Section 424(e) of
the Code. 
 The term “Participant” means an individual who is eligible as determined in
Section 3 and who has complied with the provisions of Section 4. 
 The term
“Subsidiary” means a “subsidiary corporation” with respect to the Company, as defined in Section 424(f) of the Code. 

12. Rights on Termination of Employment. If a Participant’s employment terminates for any reason before the Exercise Date for any
Offering (or any Purchase Period within the period of an Offering), no payroll deduction will be taken from any pay due and owing to the Participant and the balance in the Participant’s account will be paid (without interest) to such
Participant or, in the case of such Participant’s death, to his or her designated beneficiary as if such Participant had withdrawn from the Plan under Section 7. Notwithstanding the foregoing, an Offering may provide
that if a Participant’s employment terminates under specified circumstances other than by the Company for cause (as determined in the sole discretion of the Company), then the Participant will continue to participate in the Offering (or any
Purchase Period within the Offering) that ends (and the Exercise Date of which occurs) within three months following the Participant’s termination of employment. An employee will be deemed to have terminated employment, for purposes of this
section, if the corporation that employs him or her, having been a Designated Subsidiary, ceases to be a Subsidiary, or if the employee is transferred to any corporation other than the Company or a Designated Subsidiary. An employee will not be
deemed to have terminated employment for this purpose if the employee is on an approved leave of absence for military service or sickness or for any other purpose approved by the Company, if the employee’s right to reemployment is guaranteed
either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise provides in writing. 

13. Special Rules. Notwithstanding anything herein to the contrary, the Administrator may adopt special rules applicable to the
employees of a particular Designated Subsidiary whenever the Administrator determines that such rules are necessary or appropriate for the implementation of the Plan in a jurisdiction where such Designated Subsidiary has employees; provided that
such rules are consistent with the requirements of Section 423(b) of the Code. Any special rules established pursuant to this Section 13 shall, to the extent possible, result in the employees subject to such rules
having substantially the same rights as other Participants in the Plan. 
 14. Optionees Not Stockholders. Neither the granting of an
Option to a Participant nor the deductions from his or her pay shall constitute such Participant a holder of the shares of Common Stock covered by an Option under the Plan until such shares have been purchased by and issued to him or her upon an
Exercise Date. 

  
 5 

 15. Rights Not Transferable. Rights under the Plan are not transferable by a
Participant other than by will or the laws of descent and distribution, and are exercisable during the Participant’s lifetime only by the Participant. Any attempt at transferring rights under the Plan in violation of the foregoing shall be null
and void without effect. 
 16. Application of Funds. All funds received or held by the Company under the Plan may be combined with
other corporate funds and may be used for any corporate purpose; the Company shall not be required to segregate any payroll deductions made under the Plan. 

17. Adjustment in Case of Changes Affecting Common Stock; Dissolution or Liquidation; Change in Control.

(a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, or
other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of
Common Stock or other securities of the Company, or other change in the Company’s structure affecting the Common Stock occurs without the receipt of consideration by the Company, then the Board shall, in such manner as it deems equitable,
adjust the number of shares and class of Common Stock that may be delivered under the Plan, the Exercise Price per share and the number of shares of Common Stock covered by each outstanding Option under the Plan, and the numerical limits of the
preamble hereof and/or in Section 8. 
 (b) Dissolution or Liquidation. Unless otherwise
determined by the Administrator, in the event of a proposed dissolution or liquidation of the Company, any Offering then in progress will be shortened by setting a new Exercise Date and the Offering will end immediately prior to the proposed
dissolution or liquidation. The new Exercise Date will be before the date of the Company’s proposed dissolution or liquidation. Before the new Exercise Date, the Administrator will provide each Participant with written notice, which may be in
electronic form, of the new Exercise Date and that the Participant’s Option will be exercised automatically on such date, unless before such time, the Participant has withdrawn from the Offering in accordance with
Section 7. 
 (c) Change in Control. In the event of a Change in Control, each outstanding
Option may (if approved by the Board) be assumed or an equivalent option substituted by the surviving corporation or the acquiring corporation (or the Parent or Subsidiary of such surviving or acquiring corporation). If such surviving or successor
corporation does not (or will not) assume or substitute the Option, the Offering with respect to which the Option relates will be shortened by setting a new Exercise Date on which the Offering will end. The new Exercise Date will occur before the
date of such Change in Control and prior to the new Exercise Date, the Administrator will provide each Participant with written notice, which may be in electronic form, of the new Exercise Date and that the Participant’s Option will be
exercised automatically on such date, unless before such time, the Participant has withdrawn from the Offering in accordance with Section 7. For purposes hereof, “Change in Control” means the
consummation, in a single transaction or in a series of related transactions, of any one or more of the following events: 

  
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	 	(i)	 The consummation of any consolidation or merger of the Company with any other entity, other than a transaction
which would result in the voting power of the securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its
parent) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such consolidation or merger; 

 

	 	(ii)	 Any one Person, or more than one Person acting as a group, acquires ownership of the stock of the Company that,
together with the stock held by such Person or group, constitutes more than 50% of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, (A) the acquisition of additional stock by any
one Person or group, who is considered to own more than 50% of the total voting power of the stock of the Company will not be considered a Change in Control, and (B) if the stockholders of the Company immediately before such change in
ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, the direct or indirect
beneficial ownership of 50% or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event will not be considered a Change in Control under this subsection (ii). For this purpose, indirect
beneficial ownership will include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or
more subsidiary corporations or other business entities; 

  

	 	(iii)	 A majority of the Company directors is replaced during any 12-month
period by Company directors whose appointment or election is not endorsed by a majority of the Company directors prior to the date of the appointment or election; or 

 

	 	(iv)	 Any one Person, or more than one Person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross
fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iv), the following will not constitute a change in the ownership of a substantial
portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company
(immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a
Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least 50% of the total value or voting power of which is owned, directly or
indirectly, by a Person described in subsection (3) above. For purposes of this subsection (iv), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to
any liabilities associated with such assets. 

  
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 (d) For purposes of this definition, (i) “Person” means an
individual, a partnership, a corporation, a limited liability company, an association, a joint share company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision
thereof, and (ii) Persons will be considered to be acting as a group if they are owners of an entity that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 

18. Designation of Beneficiary. 

(a) A Participant may file a written designation of a beneficiary who is to receive any shares of Common Stock and/or cash, if
any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to the end of an Offering but prior to delivery to the Participant of such shares of Common Stock or cash. In addition, a Participant
may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death during an Offering. Any such designation shall be on a form provided by the
Administrator, which may be electronic. 
 (b) The Participant may change such designation of beneficiary at any time by
written notice to the Company, on a form provided by the Administrator, which may be electronic. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such
Participant’s death, the Company shall deliver such shares of Common Stock and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its sole discretion, may deliver such shares of Common Stock and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then
to such other person as the Company may designate. 
 19. No Continued Service Rights. Neither the Plan nor any right granted under
the Plan shall confer on any Participant any right to continuation of the Participant’s employment with the Company or any Designated Subsidiary, nor shall it interfere in any way with the right of the Company or Designated Subsidiary to
terminate such employment relationship, with or without cause. 
 20. Amendment of the Plan. The Board may at any time and from time
to time amend the Plan in any respect, except that, without the approval within 12 months of such Board action by the stockholders, no amendment shall be made increasing the number of shares approved for the Plan or making any other change that
would require stockholder approval in order for the Plan, as amended, to qualify as an “employee stock purchase plan” under Section 423(b) of the Code. 

  
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 21. Insufficient Shares. If the total number of shares of Common Stock that would
otherwise be purchased on any Exercise Date plus the number of shares purchased under previous Offerings (or previous Purchase Periods within the current Offering) under the Plan exceeds the maximum number of shares issuable under the Plan, the
shares then available shall be apportioned among Participants in proportion to the amount of payroll deductions accumulated on behalf of each Participant that would otherwise be used to purchase Common Stock on such Exercise Date. 

22. Termination of the Plan. The Plan may be terminated at any time by the Board. Upon termination of the Plan, all amounts in the
accounts of Participants shall be promptly refunded. If the Plan is terminated, the Administrator may elect to terminate all outstanding Offerings either immediately or once shares of Common Stock have been purchased on the next Exercise Date (which
may, in the discretion of the Administrator, be accelerated) or permit Offerings to expire in accordance with their terms. If any Offering is terminated before its scheduled expiration, all payroll deductions accumulated on behalf of each
Participant under the Plan that have not been used to purchase shares of Common Stock will be returned to each Participant (without interest, except as otherwise required by law) as soon as administratively practicable. 

23. Governmental Regulations. The Company’s obligation to sell and deliver Common Stock under the Plan is subject to obtaining all
governmental approvals required in connection with the authorization, issuance, or sale of such stock. No Option may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under the Plan are covered by an
effective registration statement pursuant to the Securities Act of 1933, as amended, and the Plan is in material compliance with all applicable federal, state, and foreign laws, and any other securities laws and other laws applicable to the Plan,
and the requirements of any stock exchange upon which the shares of Common Stock may then be listed. If on an Exercise Date the shares of Common Stock are not so registered or the Plan is not in such compliance, no Option shall be exercised on such
Exercise Date, and the Exercise Date shall be delayed until the shares of Common Stock are subject to such an effective registration statement and the Plan is in such compliance, except that the Exercise Date shall not be delayed more than twelve
(12) months and the Exercise Date shall in no event be more than twenty-seven (27) months from the Offering Date. If, on the Exercise Date under any Offering hereunder, as delayed to the maximum extent permissible, the shares of Common
Stock are not registered and the Plan is not in such compliance, no Options shall be exercised and all payroll amounts accumulated during the Offering (reduced to the extent, if any, such contributions have been used to acquire shares of Common
Stock) shall be distributed to the Participants without interest (unless required by applicable law). 
 24. Governing Law. All
issues concerning this Plan will be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the law of any jurisdiction other than the State of Delaware. 
 25. Issuance of
Shares. Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source. 

  
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 26. Tax Withholding. Participation in the Plan is subject to any minimum required tax
withholding on income of the Participant in connection with the Plan. Each Participant agrees, by entering the Plan, that the Company and its Subsidiaries shall have the right to deduct any such taxes from any payment of any kind otherwise due to
the Participant, including shares issuable under the Plan. 
 27. Certain Tax Matters. 

(a) Code Section 409A. Rights granted under the Plan are intended to be exempt from the application
of Section 409A of the Code under U.S. Treasury Regulation Section 1.409A-1(b)(5)(ii). 

(b) No Guarantee of Tax Treatment. Although the Company may endeavor to qualify a right granted under the Plan for
special tax treatment under the laws of the United States or jurisdictions outside the United States or avoid adverse tax treatment (e.g., under Section 409A of the Code), the Company makes no representation to that effect and expressly
disavows any covenant to maintain special or to avoid unfavorable tax treatment, notwithstanding anything to the contrary in the Plan. Nether the Company, any Designated Subsidiary, any other affiliate of the Company, nor any of their respective
employees, officers or directors, shall have any liability whatsoever to any Participant or beneficiary thereof in the event rights granted under the Plan do not qualify for special tax treatment under the law of the United States or any other
jurisdiction or in the event any adverse tax treatment applies with respect to participation in the Plan. 
 28. Notification Upon Sale
of Shares. Each Participant agrees, by entering the Plan, to give the Company prompt notice of any disposition of shares purchased under the Plan where such disposition occurs within two years after the Offering Date of the Option pursuant to
which such shares were purchased or within one year after the Exercise Date of such Option. 
 29. Successors and Assigns. The Plan
shall be binding on the Company and its successors and assigns. 
 30. Captions. The captions in the Plan are for convenience of
reference only, and are not intended to narrow, limit or affect the substance or interpretation of the provisions contained herein. 
 31.
Effective Date and Approval of Shareholders. The Plan shall take effect on the date it is adopted by the Board (and an Offering may commence at any time on or after such date) but no Option shall be exercised unless and until the Plan has
been approved by the stockholders of the Company in accordance with Section 423(b) of the Code within twelve (12) months after the date the Plan is adopted by the Board. If the Plan is not so approved by the stockholders of the Company,
all payroll deductions accumulated on behalf of each Participant under the Plan will be returned to each Participant (without interest, except as otherwise required by law) as soon as administratively practicable. 

  
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