Document:

Document

Exhibit 10.1

EXPLANATORY NOTE

ON APRIL 7, 2017, SYNCHRONY BANK (F/K/A GE CAPITAL RETAIL BANK) AND SYNCHRONY FINANCIAL (“SYNCHRONY ENTITIES”) ENTERED INTO THE FIFTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC. (THE “COMPANY”), GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., GAP (APPAREL), LLC, GAP (ITM) INC., AND THE SYNCHRONY ENTITIES, WHICH IS ATTACHED HERETO. THE SYNCHRONY ENTITIES ALSO ENTERED INTO THREE OTHER AGREEMENTS WITH CERTAIN OF THE COMPANY’S WHOLLY-OWNED SUBSIDIARIES ON THE SAME DAY:

	
		
	1.
	THE FIFTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., OLD NAVY, LLC, GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., OLD NAVY (APPAREL), LLC, AND OLD NAVY (ITM) INC. AND THE SYNCHRONY ENTITIES (THE “OLD NAVY CONTRACT”);

	
		
	2.
	THE FIFTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., BANANA REPUBLIC, LLC, GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., BANANA REPUBLIC (APPAREL), LLC, BANANA REPUBLIC (ITM) INC., AND THE SYNCHRONY ENTITIES (THE “BANANA REPUBLIC CONTRACT”); AND

	 
	 

	3.
	THE THIRD AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., ATHLETA INC., ATHLETA LLC, ATHLETA (ITM) INC. AND GPS CONSUMER DIRECT, INC. AND THE SYNCHRONY ENTITIES (THE “ATHLETA CONTRACT”).

IN ACCORDANCE WITH INSTRUCTION 2 TO ITEM 601 OF REGULATION S-K, ONLY THE FIFTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND BETWEEN THE COMPANY AND THE SYNCHRONY ENTITIES IS BEING FILED. THE ONLY MATERIAL DIFFERENCE BETWEEN THE ATTACHED AGREEMENT, THE OLD NAVY CONTRACT, THE BANANA REPUBLIC CONTRACT AND THE ATHLETA CONTRACT IS THE PARTIES THERETO.

FIFTH AMENDMENT TO
AMENDED AND RESTATED CONSUMER CREDIT CARD
PROGRAM AGREEMENT

This Fifth Amendment to the Amended and Restated Consumer Credit Card Program Agreement, dated as of April 7, 2017 (the “Amendment”) amends that certain Amended and Restated Consumer Credit Card Program Agreement dated as of February 28, 2014 (as amended, modified and supplemented from time to time, the “Agreement”) by and among Synchrony Bank, a federal savings bank (“Bank”), Synchrony Financial, a Delaware corporation (“Bank Parent”), The Gap, Inc., a Delaware corporation (“The Gap, Inc.”), Gap (Puerto Rico), Inc., a Puerto Rico corporation, GPS Consumer Direct, Inc., a California corporation, Gap (Apparel), LLC, a California limited liability company, and Gap (ITM) Inc., a California corporation (jointly and severally, the “Retailers”).  Capitalized terms used herein and not otherwise defined have the meaning given in the Agreement.
WHEREAS, Bank and Retailers are parties to the Agreement, pursuant to which Bank provides consumer credit to qualified customers of Retailers for the purchase of goods and services from Retailers through the use of a private label credit card and from Retailers and other retailers through the use of a co-branded bankcard;
WHEREAS, the parties hereto desire to amend the Agreement as set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions hereinafter set forth, the parties hereby agree as follows:
I.     ACKNOWLEDGEMENT AND AGREEMENT TO MOBILE WALLETS

		
	1.1
	Agreement to Enable Cards to be Provisioned in Mobile Wallets.  Pursuant to Section 2.07 the Agreement, the parties have agreed to allow the Credit Cards to be provisioned in, and certain transactions to be facilitated by, Mobile Wallets [***].   In connection therewith, Bank will monitor, and provide servicing for, provisioning and transaction requests by Cardholders.  [***].  

		
	1.2
	Additional Agreements.  In connection with the Credit Cards participating in Mobile Wallets, the parties have agreed as follows:

(a)    Pursuant to Section 2.07(a) of the Agreement, [***].  Bank shall notify Retailer promptly, in no event more [***] days from when Bank [***], of any material changes to the [***] associated with provisioning, tokenizing or transacting with a Mobile Wallet.  
(b)    Notwithstanding Section 14.15 of the Agreement, Bank may share [***] about the Bank’s portfolio [***] with Mobile Wallets.  The [***] from Bank will include information about the use of [***] and the Program but will not separately identify the Credit Cards or the Program, other than with respect to [***], which will include [***] level.  

(c)    Retailers acknowledge, that once the Credit Cards become eligible cards in a Mobile Wallet, Retailers would need to provide Bank with [***].  Nothing in this Agreement would require Merchant to continue to accept any specified Mobile Wallet in Retailer Locations even if the Credit Cards continue [***].  
(d)    Bank will provide Retailers monthly and ad-hoc reporting by [***] including such information related to the Mobile Wallets as reasonably requested by Retailers from time to time, and such reporting may include: [***].
(e)     Bank’s failure to meet any authorization SLAs of the Agreement resulting solely from the routing of transactions through the Mobile Wallet shall not be deemed to be a [***] of the Agreement.
(f)    Retailers agree that Bank may provide the Licensed Marks to the applicable Mobile Wallet in furtherance of the participation of the Program in the Mobile Wallet and such use is consistent with the Bank’s use of the Licensed Marks in administration of the Program.  Retailers agree that the applicable Mobile Wallet has the right to use such Licensed Marks during the Term as follows: (i) in connection with the use and display of the Credit Cards within the Mobile Wallet, (ii) in the marketing, advertising and promotion of the availability of the Credit Cards in the applicable Mobile Wallet subject to the approval process in Section 14.09, and (iii) in publicly disclosed lists of issuers and/or Retailers participating in the applicable Mobile Wallet.
(g) Notwithstanding Section 4.03 of the Agreement, unless otherwise agreed upon by the parties, Co-Brand Retailer [***] may not be routed through [***].  Retailers agree that, to the extent Bank is [***] with its [***] of such purchases, Retailers will be [***] on the Bank.
II.     AMENDMENTS TO THE AGREEMENT
2.1  Addition of Section 2.08.  The following new Section 2.08 is added to the Agreement:

“Section 2.08. End User Application.  Bank will make available to Retailers the Bank’s Plug-In Software (as defined in Schedule 2.08) for use by Retailers and its customers in conjunction with the Retailers Application (as defined in Schedule 2.08), all in accordance with the terms and conditions set forth in Schedule 2.08.”
2.2  Amendment to Section 3.04(i)(v).  Section 3.04(i)(v) is deleted and replaced with the following:

“(v)    Bank, or Bank through its authorized agents and independent contractors (including third party service providers), shall be entitled to (A) use Program Consumer Information for business, analytics, collections, risk management and modeling purposes (including marketing models); provided, however, that to the extent such modeling entails Bank [***]; provided, further, that Bank shall not provide to a participant in another Bank program copies of any analysis that separately identifies Retailers’ data and associates such data with Retailers, and (B) rent, disclose or use Program Consumer 

Information as otherwise permitted under this Agreement.”
2.3  Amendment to Section 9.02(a)(iii).  The reference to “dedicated” in Section 9.02(a)(iii) is deleted.

2.4  Amendment to Section 10.03(f)(i).  Section 10.03(f)(i) is deleted and replaced with the following:

“(i) the applicable approval rate threshold [***] set forth on Schedule 10.03(f)(i); or” 
2.5  Addition of Schedule 2.08.  New Schedule 2.08 attached hereto as Attachment 1 is added to the Agreement.

2.6  Amendments to Schedule 9.02(h)(ii).  

		
	2.6.1
	Paragraph F of Schedule 9.02(h)(ii) is deleted and replaced with the following:

“F.    For each month, Bank will respond to at [***] properly submitted through the mail within [***] after the Bank receives such application, and will respond to at least [***] of such applications within [***] after Bank receives such applications.”
		
	2.6.2
	Paragraph K of Schedule 9.02(h)(ii) is deleted and replaced with the following:

“K.    For each month, Bank will respond to [***] complaints forwarded to Bank’s customer service managers within [***].”
2.7  Addition of Schedule 10.03(f)(i).  New Schedule 10.03(f)(i) attached hereto as Attachment 2 is added to the Agreement.

III.    NEW VISA SIGNATURE CARDS
3.1  The Parties agree that Bank will begin issuing ‘Visa Signature’ Co-Brand Credit Cards that will be branded with certain Licensed Marks along with certain “Licensed Marks” as defined in each of the other Credit Card Programs (the “New Signature Cards”).  The New Signature Cards will replace existing Co-Brand Credit Cards meeting the eligibility requirements of the Visa Signature program.  For all purposes of the Credit Card Program Agreements, the New Signature Cards and their associated Co-Brand Accounts will remain subject to the provisions of the Credit Card Program under which such Co-Brand Accounts originated.

IV.     GENERAL

4.1    Authority for Amendment.  The execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Retailers and Bank and upon execution by all parties, will constitute a legal, binding obligation thereof.

4.2    Effect of Amendment.  Except as specifically amended hereby, the Agreement, and all terms contained therein, remains in full force and effect.  The Agreement, as amended by this Amendment, constitutes the entire understanding of the parties with respect to the subject matter hereof.
4.3    Binding Effect; Severability.  Each reference herein to a party hereto will be deemed to include its successors and assigns, all of whom will be bound by this Amendment and in whose favor the provisions of this Amendment will inure.  In case any one or more of the provisions contained in this Amendment will be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.
4.4    Further Assurances.  The parties hereto agree to execute such other documents and instruments and to do such other and further things as may be necessary or desirable for the execution and implementation of this Amendment and the consummation of the transactions contemplated hereby and thereby.
4.5    Governing Law.  This Amendment will be governed by and construed in accordance with the laws of the State of Utah.
4.6    Counterparts.  This Amendment may be executed in counterparts, each of which will constitute an original, but all of which, when taken together, will constitute but one agreement.
[The remainder of page intentionally left blank]

IN WITNESS WHEREOF, Bank, Bank Parent and Retailers have caused this Amendment to be executed by their respective officers thereunto duly authorized as the date first above written.

	
		
	BANK:
SYNCHRONY BANK

By: /s/ THOMAS M. QUINDLEN
Name: THOMAS M. QUINDLEN
Title:  EVP RETAIL CARD
	RETAILERS:
THE GAP, INC. 

By: /s/ TERI LIST-STOLL
Name: TERI LIST-STOLL
Title:   EVP & CFO

	 
	 

	 
	GAP (PUERTO RICO), INC.

By: /s/ TERI LIST-STOLL
Name: TERI LIST-STOLL
Title:   EVP & CFO

	 
	 

	BANK PARENT:

SYNCHRONY FINANCIAL

By: /s/ THOMAS M. QUINDLEN
Name: THOMAS M. QUINDLEN
Title:  EVP & CEO RETAIL CARD
	GPS CONSUMER DIRECT, INC.

By: /s/ TERI LIST-STOLL
Name: TERI LIST-STOLL
Title:   EVP & CFO

GAP (APPAREL), LLC

By: /s/ TERI LIST-STOLL
Name: TERI LIST-STOLL
Title:   EVP & CFO

	 
	 

	 
	GAP (ITM) INC.

By: /s/ TERI LIST-STOLL
Name: TERI LIST-STOLL
Title:   EVP & CFO

[Signature page to Fifth Amendment to 
Amended and Restated Credit Card Program Agreement]

ATTACHMENT 1

Schedule 2.08
Plug-In Software Schedule

Under this Schedule, Retailers will integrate and make available Bank’s Plug-In Software as part of the Retailer Application to End Users, all on the terms of this Schedule as further described below. 

1.Additional Definitions.  Capitalized terms used in and not otherwise defined in this Schedule 2.08 shall have the meaning given to them in the Agreement.  The terms below shall have the following meanings:

“Bundled Application” means the Plug-In Software as an integrated component of the Retailer Application.

“Retailer Application” means the application that Retailers make available to End Users that: (i) is owned or operated by or on behalf of Retailers; and (ii) is listed in Exhibit A to this Schedule. 

“Documentation” means the manuals and technical documentation provided by Bank with respect to the Plug-In Software.

“End User” means any person or entity that downloads and/or uses the Retailer Application.

“Plug-In Software” means the plug-in software described in Exhibit A to this Schedule, in object code form, together with Updates provided to Retailers under this Schedule. 

“Updates” means any updates, bug fixes, new versions and other modifications and amendments to the Plug-In Software that Bank furnishes to Retailers under this Schedule.

		
	2.
	Delivery and Integration.

(a)Implementation Schedule.  Promptly following the execution of the Fifth Amendment to the Agreement, Bank and Retailers will develop and mutually agree on a schedule for the delivery of the Plug-In Software and the Documentation to Retailers, the evaluation and acceptance of the Plug-In Software by Retailers, and the launch of the Bundled Application to End Users by Retailers (the “Implementation Schedule”).  Each Party will use commercially reasonable efforts to complete its obligations in the Implementation Schedule by the timeframes set forth in such Implementation Schedule. 

(b)Development. Retailers will perform all development work to integrate the Plug-In Software with the Retailer Application, although Bank will work in good faith with Retailers to facilitate integration by providing commercially reasonable technical assistance and relevant documentation. 

7

(c)Branding. The Bundled Application will be branded solely with the Licensed Marks.

(d)Launch.  Retailers will make the Bundled Application commercially available through the applicable application download utility (e.g., [***]) to End Users at no charge or expense to End Users.  Retailers will provide Bank with an opportunity to review the Bundled Application before Retailers make it available to End Users.  If either Party has any concerns with the functioning of the Bundled Application, the Parties will work together in good faith to resolve them.

(e)Fees and Costs. The cost to develop and license the Plug-In Software will be funded solely by Bank, and the cost to install the Plug-In Software with the Retailer Application will be funded solely by Retailers.  Bank will license the Plug-In Software to Retailers for [***] except as otherwise mutually agreed to by the Parties in writing.

3.Operation. 

(a)End User Licensing.  Retailers will license the Bundled Application directly to each End User pursuant to Retailers’ end user licensing terms, and Retailers are solely responsible for all aspects concerning the downloading of the Bundled Application by End Users.  Retailers will: (i) ensure that its end user licensing terms for the Bundled Application [***] and [***]; (ii) not make any representations, warranties, or promises to End Users regarding the Bundled Application on behalf of or impose any [***] or [***] with respect to the Bundled Application; and (iii) not otherwise represent to End Users or others that [***] of the Bundled Application.  Bank shall have the right, upon Bank’s request, to review and provide comments on the form of end user licensing terms for the Bundled Application, and Retailers shall incorporate Bank’s requested changes to the extent reasonable and consistent with this Schedule 2.08.  

(b)Privacy Policy.  End Users’ use of the Retailer Application (excluding the integrated Plug-In Software) will be subject to and in accordance with the then-current version of Retailer’s privacy policy.  End Users’ use of the Plug-In Software as part of the Bundled Application will be subject to and in accordance with the then-current version of Bank Privacy Disclosures.

(c)Push Notifications.  Retailers will permit Bank, and provide it with the necessary authorization (including the applicable push notification certificates), to push notifications to End Users via the Bundled Application.  Bank will not provide any push notifications to End Users unless and until Retailers have approved such communications, which approval will not be unreasonably withheld or delayed. 

(d)Updates.  During the term of this Schedule, Bank may provide Updates (including updated Documentation) to the Plug-In Software and will use commercially reasonable efforts to notify Retailers in advance of any material Updates.  Retailers shall use commercially reasonable efforts to install all Updates as soon as practicable, but in no event later than [***], after receipt. 

(e)Additional Support.  If requested by Retailers and agreed upon in writing by both Bank and Retailers, Retailers may purchase additional services relating to the Plug-In Software, such as training, consulting, customization or other services, at Bank’s then-current standard rates.

8

4.Reporting.  Retailers will provide to Bank aggregated, non-personally identifiable data reasonably requested by Bank regarding the Bundled Application, including the number of downloads and [***].

5.Intellectual Property.

(a)Grant of License.  Subject to the terms and conditions of this Schedule, Bank hereby grants to Retailers during the term of this Schedule a royalty-free, fully-paid up, non-exclusive, non-transferable, non-sublicensable, license to (i) reproduce, install and use the Plug-In Software as necessary to combine it with the Retailer Application to create the Bundled Application, (ii) combine the Plug-In Software with the Retailer Application to create the Bundled Application, and (iii) promote, offer, and distribute the Plug-In Software to End Users only within the Bundled Application.  

(b)Restrictions.  Except as expressly permitted by Section 5(a) above, Retailers will not, and will not instruct, allow, or induce others to:  (i) delete, remove or alter any copyright notices on the Plug-In Software; (ii) assign, transfer or pledge the Plug-In Software; (iii) sublicense, distribute or otherwise transfer the Plug-In Software separately from the Bundled Application; (iv) use the Plug-In Software for time-sharing, rental or service bureau purposes; (v) reverse engineer, decompile or disassemble the Plug-In Software or otherwise attempt to discover the source code to the Plug-In Software; (vi) create or attempt to create derivative works of the Plug-In Software, in whole or in part; or (vii) use, transfer, export or re-export the Plug-In Software in violation of Law.

(c)Security Measures.  The Plug-In Software may contain technological measures designed to prevent unauthorized or illegal use of the Plug-In Software by Retailers and End Users. Retailers agree that Bank may use these measures to verify Retailers’ compliance with the terms of this Schedule and to enforce Bank’s rights, including all IP rights, in and to the Plug-In Software. The Plug-In Software will not contain: (i) any virus, Trojan horse, worm, backdoor or other software or hardware devices that would permit unauthorized access to or to disable, erase, or otherwise harm any computer, systems or software, or (ii) any time bomb, drop dead device or other software or hardware device designed to disable a computer program.  

(d)Ownership; Reservation. Subject to the licenses in this Schedule, as between the Parties: (i) Retailers own all IP rights in the Retailer Application; and (ii) Bank owns all IP rights in the Plug-In Software and Documentation.  All rights not expressly granted are expressly reserved by the rights holder.

6.Disclaimer. THE PLUG-IN SOFTWARE AND THE DOCUMENTATION ARE PROVIDED “AS IS” WITHOUT WARRANTIES OF ANY KIND.  BANK MAKES NO WARRANTIES REGARDING THE PLUG-IN SOFTWARE OR PLUG-IN SERVICES AND EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND WHETHER EXPRESS OR IMPLIED (EITHER IN FACT OR BY OPERATION OF LAW), INCLUDING THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, COMPATIBILITY WITH THIRD PARTY PRODUCTS, NON-INFRINGEMENT OF THIRD PARTIES’ RIGHTS, OR SECURE, ERROR-FREE, OR UNINTERRUPTED 

9

OPERATION.  Bank does not warrant that the Plug-In Software provided hereunder will meet Retailers’ or End Users’ requirements or that the operation of the Plug-In Software will be uninterrupted or error free or that all defects will be corrected.  

7.IP Indemnification. In addition to the Parties’ indemnification obligations in Article XII of the Agreement, each Party will indemnify, defend and hold harmless the other Party as set forth below.  For clarity, the terms in [***] will apply to each Party’s additional indemnification obligations below.  

(a)Indemnification by Bank.  Bank shall indemnify, defend and hold harmless Retailers, their Affiliates and their respective officers, directors, employees and agents from and against and in respect of [***]. 

(b)Indemnification by Retailers.  Retailers shall indemnify, defend and hold harmless Bank, its Affiliates and their respective officers, directors, employees and agents from and against and in respect of [***].

(c)Limitations.  Bank has no duty to defend, indemnify or hold Retailers, their Affiliates, or their respective officers, directors, employees or agents harmless under Section 7(a) of this Schedule for such third party claim alleging infringement, misappropriation or other violation of third-party IP rights to the extent arising from or based on: (i) use of the Plug-In Software after Bank notifies Retailers to discontinue use because of such third party claim; (ii) combining the Plug-In Software with a product, service, data or business process not provided by Bank, if such third party claim would not have arisen but for such combination; or (iii) modifying the Plug-In Software if the third party claim would not have arisen but for such modification. 

8.Term and Termination. 

(a)Mutual Termination.  Either Party may suspend performance or terminate this Schedule immediately on notice at any time if the other Party materially breaches this Schedule and fails to cure within 30 days after receiving notice. Additionally, this Schedule will immediately terminate upon the termination or expiration of the Agreement.

(b)Bank Termination.  Bank may terminate this Schedule and/or suspend Retailers’ and any End User’s access to the Plug-In Software immediately upon written notice to Retailers if (i) Bank’s access to the services required to provide all or part of the Plug-In Software functionality is terminated; (ii) Retailers or any End User is in breach of Law; or (iii) Bank determines, in its reasonable discretion, that the use of or access to the Plug-In Software poses an unacceptable compliance or security risk to Bank, Retailers, or any End User. 

(c)Effect of Termination.  Upon termination or expiration of this Schedule for any reason, all rights granted to Retailers hereunder will automatically terminate and revert to Bank.  Retailers shall (i) discontinue all use of the Plug-In Software, and any copies thereof, in whole or in part, (ii) cease and desist from combining the Plug-In Software in the Retailer Application, (iii) cease and desist from distributing and licensing the Bundled Application to End Users, and (iv) return or destroy, as requested by Bank, all copies of the Plug-In Software and any 

10

Documentation and any other confidential information concerning the Plug-In Software and/or Documentation.  Termination or expiration of this Schedule for any reason does not terminate or otherwise impact in any way the Agreement or any other Schedules.  The following sections will survive termination or expiration of this Schedule: Sections 1, 3(b), 5(d), 6, 7, 8(d), and 9.

9.Subcontractors.  Solely for the purposes of this Schedule 2.08 and without limiting any other provision in the Agreement regarding the use of service providers, either Party may delegate performance under this Schedule to its Affiliates or to third parties (collectively, “Subcontractors”). The delegating party remains fully liable for the Subcontractor’s performance (which will be imputed to the delegating party) under this Schedule 2.08.  

11

Exhibit A - Descriptions of Plug-In Software and Retailer Application
		
	•
	Description of Plug-In Software: 

The Plug-In Software is a precompiled native software application plug-in for installation in iOS or Android applications that (i) has its own user interface and data flow, and (ii) is designed to create a branded credit and loyalty experience within the native iOS or Android application, and includes credit features such as account summary and transaction viewing, credit card bill payment, offers and promotions, geolocation and beacon-triggered messaging, and scheduled alerts and notifications.  
		
	•
	Description of Retailer Application:

The Retailer Application is the native device application software, available in the Apple App Store and/or Google Play, downloaded by consumers to enhance their experience with the Retailers’ Licensed Marks.

12

ATTACHMENT 2

Schedule 10.03(f)(i)
Targeted Approval Rates
 
		
	1.
	Subject to the terms below, Bank shall target [***] (the "Targeted Approval Rates"):

	
				
	 
	Equivalent Fico Range
	Approval Requirement
	 

	 
	 760 +
	[***]
	 

	 
	700 - 759
	[***]
	 

	 
	660 - 699
	[***]
	 

		
	2.
	Monthly, the actual approval rates for Applicants will be measured [***] Targeted Approval Rates [***] over the preceding month, and Bank will promptly notify Retailers if any Targeted Approval Rate [***].   

		
	3.
	For purposes of the Targeted Approval Rate [***], Credit Card Applications shall exclude the following:

		
	a.
	Incomplete, suspected fraudulent, or duplicate Credit Card Applications;

		
	b.
	Credit Card Applications from existing customers;

		
	c.
	Credit Applications from pre-approval or quickscreen campaigns, 

		
	d.
	Credit Card applications from customers using a computer, Internet device, mobile-phone or other handheld electronic device not owned or operated by the retailer;

		
	e.
	Credit Card Applications from customers not of legal age, debtors in bankruptcy proceedings, non-residents of the United States, No Bureau File found, applications that fail to meet the requirements of the Ability to Pay requirements of the CARD Act, or do not comply with Applicable Law; and

		
	f.
	Applicants the Parties otherwise agreed in writing to exclude.   

		
	4.
	Bank will approve as many Applicants as prudently possible below [***].

		
	5.
	The Targeted Approval Rates may be adjusted annually as mutually agreed upon by the Program Execution Committee.

		
	6.
	If Bank fails to satisfy a particular Targeted Approval Rate [***], such failure shall constitute a [***]. The remedy set forth in this schedule will be Company’s sole and exclusive remedy for [***] Targeted Approval Rate.

13AGREEMENT
AND PLAN OF MERGER

among

MASSROOTS,
INC.

and

 

 

CANNAREGS,
LTD.

 

 

and

MassRoots
LEGAL Technology, Inc.

and

the
Stockholder representative

 

dated
as of

August
23, 2017

    	 		 

     

    

TABLE
OF CONTENTS

Page

	Article
    I.   Definitions	1
	Article
    II.   The Merger	10
	Section
    2.01   The Merger	10
	Section
    2.02   Closing	10
	Section
    2.03   Closing Deliverables	10
	Section
    2.04   Effective Time	12
	Section
    2.05   Effects of the Merger	12
	Section
    2.06   Certificate of Incorporation; By-laws	12
	Section
    2.07   Directors and Officers	12
	Section
    2.08   Merger Share Consideration	12
	Section
    2.09   Consideration Statement	14

	Article
    III.   Representations and warranties of the Company	15

 

    	 		 

     

    

	Section
    3.01   Organization and Qualification of the Company	15
	Section
    3.02   Authority; Board Approval	15
	Section
    3.03   No Conflicts; Consents	16
	Section
    3.04   Capitalization	16
	Section
    3.05   No Subsidiaries	17
	Section
    3.06   Financial Statements	17
	Section
    3.07   Undisclosed Liabilities	18
	Section
    3.08   Absence of Certain Changes, Events and Conditions	18
	Section
    3.09   Contracts	20
	Section
    3.10   Title to Assets; Real Property	20
	Section
    3.11   Condition of Assets	20
	Section
    3.12   Intellectual Property	21
	Section
    3.13   Accounts Receivable	22
	Section
    3.14   Customers and Suppliers	22
	Section
    3.15   Insurance	23
	Section
    3.16   Legal Proceedings; Governmental Orders	23
	Section
    3.17   Compliance With Laws; Permits	23
	Section
    3.18   Environmental Matters.	24
	Section
    3.19   Employee Benefit Matters	24
	Section
    3.20   Employment Matters	24
	Section
    3.21   Taxes	24
	Section
    3.22   Books and Records	28
	Section
    3.23   Related Party Transactions	28
	Section
    3.24   Brokers	28
	Section
    3.25   Full Disclosure	28

	Article
    IV.   Representations and warranties of parent and merger sub	29

 

    	 		 

     

    

	Section
    4.01   Organization and Authority of Parent and Merger Sub	29
	Section
    4.02   No Conflicts; Consents	29
	Section
    4.03   No Prior Merger Sub Operations	29
	Section
    4.04   Brokers	30
	Section
    4.05   Sufficiency of Funds	30
	Section
    4.06   Legal Proceedings	30
	Article
    V.   Representations and warranties of the stockholders	30
	Article
    VI.   Covenants	30
	Section
    6.01   Conduct of Business Prior to the Closing	30
	Section
    6.02   Access to Information; Confidentiality	31
	Section
    6.03   Notice of Certain Events	31
	Section
    6.04   Resignations	32
	Section
    6.05   Governmental Approvals; Consents	32
	Section
    6.06   Tax-Free Reorganization Treatment	32
	Section
    6.07   Closing Conditions	33
	Section
    6.08   Registration of Merger Share Consideration	33
	Section
    6.09   Public Announcements	33
	Section
    6.10   Further Assurances	33

	Article
    VII.   Tax matters	34
	Section
    7.01   Tax Covenants	34
	Section
    7.02   Termination of Existing Tax Sharing Agreements	34
	Section
    7.03   Tax Indemnification	34
	Section
    7.04   Tax Returns	35
	Section
    7.05   Straddle Period	35
	Section
    7.06   Contests	36
	Section
    7.07   Cooperation and Exchange of Information	36
	Section
    7.08   Tax Treatment of Indemnification Payments	36
	Section
    7.09   Payments to Parent	37
	Section
    7.10   FIRPTA Statement	37
	Section
    7.11   Further Information	37
	Section
    7.12   Overlap	37
	Section
    7.13   Survival	37

 

    	 		 

     

    

	Article
    VIII.   Conditions to closing	37
	Section
    8.01   Conditions to Obligations of All Parties	37
	Section
    8.02   Conditions to Obligations of Parent and Merger Sub	39
	Section
    8.03   Conditions to Obligations of the Company	40
	Article
    IX.   Indemnification	40
	Section
    9.01   Survival	40
	Section
    9.02   Indemnification by Indemnifying Stockholders	41
	Section
    9.03   Indemnification by Parent	42
	Section
    9.04   Indemnification Procedures	42
	Section
    9.05   Payments	45
	Section
    9.06   Tax Treatment of Indemnification Payments	45
	Section
    9.07   Effect of Investigation	45
	Section
    9.08   Exclusive Remedies	45

	Article
    X.   Termination	46
	Section
    10.01   Termination	46
	Section
    10.02   Effect of Termination	46
	Article
    XI.   Miscellaneous	47
	Section
    11.01   Stockholder Representative	47
	Section
    11.02   Expenses	48
	Section
    11.03   Notices	48
	Section
    11.04   Interpretation	49
	Section
    11.05   Headings	50
	Section
    11.06   Severability	50
	Section
    11.07   Entire Agreement	50
	Section
    11.08   Successors and Assigns	50
	Section
    11.09   No Third-party Beneficiaries	50
	Section
    11.10   Amendment and Modification; Waiver	50
	Section
    11.11   Governing Law; Submission to Jurisdiction; Waiver of Jury Trial	51
	Section
    11.12   Specific Performance	52
	Section
    11.13   Counterparts	52

 

    	 		 

     

    

AGREEMENT
AND PLAN OF MERGER

 

THIS
AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of August 23, 2017, is entered into among MassRoots,
Inc., a Delaware corporation (“Parent”), MassRoots Legal Technology, Inc., a Delaware corporation
(“Merger Sub”), CannaRegs, Ltd., a Delaware corporation (“Company” or “CannaRegs”),
and Amanda Ostrowitz, an individual acting solely in his capacity as Stockholder Representative (“Stockholder
Representative”).

RECITALS

WHEREAS,
the parties intend that Merger Sub be merged with and into the Company, with the Company surviving that merger on the terms and
subject to the conditions set forth herein (the “Merger”);

WHEREAS,
the board of directors of the Company (the “Company Board”) has unanimously (a) determined that this Agreement
and the transactions contemplated hereby, including the Merger, are in the best interests of the Company and its Stockholders,
(b) approved and declared advisable this Agreement and the transactions contemplated hereby, including the Merger, and (c) resolved
to recommend adoption of this Agreement by the Stockholders of the Company in accordance with the DGCL;

WHEREAS,
following the execution of this Agreement, the Company shall obtain, in accordance with the DGCL, a written consent of its Stockholders
approving this Agreement, the Merger and the transactions contemplated hereby in accordance with the DGCL;

WHEREAS,
following the execution of this Agreement and as a condition to closing, the Company shall obtain a written Joinder Agreement
to this Agreement from all of its Stockholders;

WHEREAS,
the respective boards of directors of Parent and Merger Sub have unanimously (a) determined that this Agreement and the transactions
contemplated hereby, including the Merger, are in the best interests of Parent, Merger Sub and their respective stockholders,
and (b) approved and declared advisable this Agreement and the transactions contemplated hereby, including the Merger; and

WHEREAS,
for federal income tax purposes, the Company, Merger Sub and Parent intend that the Merger qualify as a reorganization within
the meaning of Section 368(a)(1)(A) and (a)(2)(E) of the Code.

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

    	 		 

     

    

Article
I.        

Definitions

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

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of deficiency, assessment, proposed
assessment, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal,
administrative, regulatory or otherwise, whether at law or in equity.

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

“Agreement”
has the meaning set forth in the preamble hereto.

“Ancillary
Documents” means the Ostrowitz Agreement and Savage Agreement.

“Audited
Financial Statements” has the meaning set forth in Section 3.06.

“Balance
Sheet” has the meaning set forth in Section 3.06.

“Balance
Sheet Date” has the meaning set forth in Section 3.06.

“Basket”
has the meaning set forth in Section 9.02.

“Benefit
Plan” has the meaning set forth in Section 3.19(a).

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

“CannaRegs
Non-Cannabis Intellectual Property” means all CannaRegs Intellectual Property that expressly relates to industries other
than the cannabis industry, and that is not CannaRegs Cannabis Intellectual Property.

“CannaRegs
Cannabis Intellectual Property” means all CannaRegs Intellectual Property that expressly relates to the cannabis industry.

    	 	1	 

     

    

“CannaRegs
Intellectual Property” means all Company Intellectual Property, and any and all relating Intellectual Property thereafter
conceived, derived, developed or put into practice by the Company or Parent.

“Certificate”
has the meaning set forth in Section 2.08(c).

“Certificate
of Merger” has the meaning set forth in Section 2.04.

“Closing”
has the meaning set forth in Section 2.02.

“Closing
Date” has the meaning set forth in Section 2.02.

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

“Company”
has the meaning set forth in the preamble hereto.

“Company
Board” has the meaning set forth in the recitals hereto.

“Company
Charter Documents” has the meaning set forth in Section 3.03.

“Company
Common Stock” means the common stock of the Company.

“Company
Intellectual Property” means all Intellectual Property that is owned or held for use by the Company.

“Company
IP Agreements” means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants
not to sue, permissions and other Contracts (including any right to receive or obligation to pay royalties or any other consideration),
whether written or oral, relating to Intellectual Property to which the Company is a party, beneficiary or otherwise bound.

“Company
IP Registrations” means all Company Intellectual Property that is subject to any issuance registration, application
or other filing by, to or with any Governmental Authority or authorized private registrar in any jurisdiction, including registered
trademarks, domain names and copyrights, issued and reissued patents and pending applications for any of the foregoing.

“Consideration
Statement” has the meaning set forth in Section 2.09(a).

“Contracts”
means all contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures
and all other agreements, commitments and legally binding arrangements, whether written or oral.

    	 	2	 

     

    

“Current
Assets” means cash and cash equivalents, accounts receivable, inventory and prepaid expenses, but excluding (a) the
portion of any prepaid expense of which Parent will not receive the benefit following the Closing, (b) deferred Tax assets and
(c) receivables from any of the Company’s Affiliates, directors, employees, officers or stockholders and any of their respective
Affiliates, determined in accordance with GAAP applied using the same accounting methods, practices, principles, policies and
procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation
of the Audited Financial Statements for the most recent fiscal year end as if such accounts were being prepared and audited as
of a fiscal year end.

“Current
Liabilities” means accounts payable, accrued Taxes and accrued expenses, but excluding payables to any of the Company’s
Affiliates, directors, employees, officers or stockholders and any of their respective Affiliates, deferred Tax liabilities, Transaction
Expenses and the current portion of any Indebtedness of the Company, determined in accordance with GAAP applied using the same
accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and
estimation methodologies that were used in the preparation of the Audited Financial Statements for the most recent fiscal year
end as if such accounts were being prepared and audited as of a fiscal year end.

“Customers”
has the meaning set forth in Section 3.14(a).

“DGCL”
means the Delaware General Corporation Law.

“Direct
Claim” has the meaning set forth in Section 9.04(c).

“Disclosure
Schedules” means the Disclosure Schedules delivered by the Company and Parent concurrently with the execution and delivery
of this Agreement.

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

“Effective
Time” has the meaning set forth in Section 2.04.

“Encumbrance”
means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option,
security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

    	 	3	 

     

    

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a)
relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human
health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b)
concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, production, disposal or remediation of any hazardous materials (which
includes (i) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid, mineral or gas,
in each case, whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words of similar import
or regulatory effect under Environmental Laws; and (ii) any petroleum or petroleum-derived products, radon, radioactive materials
or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation, and polychlorinated biphenyls).
The term “Environmental Law” includes, without limitation, the following (including their implementing regulations
and any state analogs): the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§
6901 et seq.; the Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977, 33 U.S.C. §§
1251 et seq.; the Toxic Substances Control Act of 1976, as amended, 15 U.S.C. §§ 2601 et seq.; the Emergency Planning
and Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean
Air Act Amendments of 1990, 42 U.S.C. §§ 7401 et seq.; and the Occupational Safety and Health Act of 1970, as amended,
29 U.S.C. §§ 651 et seq.

“Equity
Incentive Plan” means the employee equity incentive plan of Parent providing for the grant of seven million shares and
options of three million shares of Parent Common Stock to Merger Sub, for Merger Sub’s distribution to its officers, employees,
directors, consultants and advisors as it sees fit.

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

“ERISA
Affiliate” means all employers (whether or not incorporated) that would be treated together with the Company or any
of its Affiliates as a “single employer” within the meaning of Section 414 of the Code.

“Exchange
Ratio” means a ratio of the number of shares (or a fraction thereof) of Parent Company Stock to be issued for each Share
of Company Common Stock, determined by dividing (a) 30,000,000 by (b) the total aggregate number of Shares of Company Common Stock
that are issued and outstanding as of the Effective Time.

    	 	4	 

     

    

“Financial
Statements” has the meaning set forth in Section 3.06.

“FIRPTA
Statement” has the meaning set forth in Section 7.10.

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

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

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

“HSR
Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indebtedness”
means, without duplication and with respect to the Company, all (a) indebtedness for borrowed money; (b) obligations for the deferred
purchase price of property or services, (c) long or short-term obligations evidenced by notes, bonds, debentures or other similar
instruments; (d) obligations under any interest rate, currency swap or other hedging agreement or arrangement; (e) capital lease
obligations; (f) reimbursement obligations under any letter of credit, banker’s acceptance or similar credit transactions;
(g) guarantees made by the Company on behalf of any third party in respect of obligations of the kind referred to in the foregoing
clauses (a) through (f); and (h) any unpaid interest, prepayment penalties, premiums, costs and fees that would arise or become
due as a result of the prepayment of any of the obligations referred to in the foregoing clauses (a) through (g).

“Indemnified
Party” has the meaning set forth in Section 9.04.

“Indemnifying
Party” has the meaning set forth in Section 9.04.

“Indemnifying
Pro Rata Share” shall mean, with respect to any time under this Agreement in which the Indemnifying Stockholders are
jointly providing indemnification hereunder, an amount that each such Indemnifying Stockholder shall be responsible for that is
pro rata to all Indemnifying Stockholders, determined by dividing (a) the number of Shares owned of record by such Person
as of immediately prior to the Effective Time, by (b) the number of Shares held by all Indemnifying Stockholders (on a fully-diluted
basis).

    	 	5	 

     

    

“Indemnifying
Stockholders” means all Stockholders of the Company.

“Independent
Accountant” means an independent, impartial, and nationally recognized firm of independent certified public accountants.

“Insurance
Policies” has the meaning set forth in Section 3.15.

“Intellectual
Property” means all intellectual property and industrial property rights and assets, and all rights, interests and protections
that are associated with, similar to, or required for the exercise of, any of the foregoing, however arising, pursuant to the
Laws of any jurisdiction throughout the world, whether registered or unregistered, including any and all: (a) trademarks, service
marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association
or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications and renewals
for, any of the foregoing; (b) internet domain names, whether or not trademarks, registered in any top-level domain by any authorized
private registrar or Governmental Authority, web addresses, web pages, websites and related content, accounts with Twitter, Facebook
and other social media companies and the content found thereon and related thereto, and URLs; (c) works of authorship, expressions,
designs and design registrations, whether or not copyrightable, including copyrights, author, performer, moral and neighboring
rights, and all registrations, applications for registration and renewals of such copyrights; (d) inventions, discoveries, trade
secrets, business and technical information and know-how, databases, data collections and other confidential and proprietary information
and all rights therein; (e) patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part,
re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental
Authority-issued indicia of invention ownership (including inventor’s certificates, petty patents and patent utility models);
and (f) software and firmware, including data files, source code, object code, application programming interfaces, architecture,
files, records, schematics, computerized databases and other related specifications and documentation.

“Intellectual
Property Registrations” has the meaning set forth in Section 3.12(b).

“Interim
Balance Sheet” has the meaning set forth in Section 3.06.

“Interim
Balance Sheet Date” has the meaning set forth in Section 3.06.

“Interim
Financial Statements” has the meaning set forth in Section 3.06.

“IP
Assignment and Confidentiality Agreement” means the written agreements with every employee and independent contractor
of the Company, whereby such employees and contractors (a) assign to the Company any ownership interest and right they may have
in the CannaRegs Intellectual Property; (b) acknowledge the Company’s exclusive ownership of all CannaRegs Intellectual
Property; and (iii) agree to not disclose the Company’s confidential information and any CannaRegs Intellectual Property,
in the form attached hereto as Exhibit F.

    	 	6	 

     

    

“IRS”
means the United States Internal Revenue Service.

“Joinder
Agreement” means the Joinder to Agreement and Plan of Merger to be delivered as a condition to Closing by every Stockholder
of the Company, in the form attached hereto as Exhibit C;

“Knowledge”
means, when used with respect to the Company, the actual knowledge of Amanda Ostrowitz and Kristen Savage.

“Ostrowitz
Agreement” has the meaning set forth in Section 8.01(e).

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

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

“License
Agreement” means that certain license agreement, dated as of the date hereof, between Parent and Regs Technology, pursuant
to which Parent shall grant Regs Technology an irrevocable, perpetual, royalty-free license to the CannaRegs Non-Cannabis Intellectual
Property.

“Losses”
means losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of
whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and
the cost of pursuing any insurance providers; provided, however, that “Losses” shall not include
punitive damages, except to the extent actually awarded to a Governmental Authority or other third party.

“Majority
Holders” has the meaning set forth in Section 11.01(b).

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become,
individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise)
or assets of the Company, or (b) the ability of the Company to consummate the transactions contemplated hereby on a timely basis.

“Merger
Consideration” means, collectively, the Merger Share Consideration and the Merger Cash Consideration.

“Merger”
has the meaning set forth in the recitals hereto.

“Merger
Share Consideration” has the meaning set forth in Section 2.08(a).

“Merger
Sub” has the meaning set forth in the preamble hereto.

    	 	7	 

     

    

“Parent”
has the meaning set forth in the preamble hereto.

“Parent
Common Stock” has the meaning set forth in Section 2.08(a).

“Parent
Indemnitees” has the meaning set forth in Section 9.02.

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

“Permitted
Encumbrances” has the meaning set forth in Section 3.10.

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

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

“Post-Closing
Taxes” means Taxes of the Company for any Post-Closing Tax Period.

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

“Pre-Closing
Taxes” means Taxes of the Company for any Pre-Closing Tax Period.

“Pro
Rata Share” means, with respect to any stockholder, such Person’s ownership interest in the Company as of immediately
prior to the Effective Time, determined by dividing (a) the number of Shares owned of record by such Person as of immediately
prior to the Effective Time, by (b) the number of Shares issued and outstanding (on a fully-diluted basis).

“Regs
Technology” means Regs Technology LLC, a Colorado limited liability company.

“Regs
Technology Operating Agreement” has the meaning set forth in Section 8.01(f).

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

“Requisite
Company Vote” has the meaning set forth in Section 3.02(a).

    	 	8	 

     

    

“Savage
Agreement” has the meaning set forth in Section 8.01(e).

“Shares”
has the meaning set forth in Section 2.08(a).

“Stockholder”
or “Stockholders” means a holder of Company Common Stock or all holders of Company Common Stock, respectively,
all of whom are set forth in Section 3.04(b) of the Disclosure Schedules.

“Stockholder
Indemnitees” has the meaning set forth in Section 9.03.

“Stockholder
Representative” has the meaning set forth in the preamble hereto.

“Straddle
Period” has the meaning set forth in Section 7.05.

“Suppliers”
has the meaning set forth in Section 3.14(b).

“Surviving
Corporation” has the meaning set forth in Section 2.01.

“Taxes”
means any tax of any kind, including any federal, state, local or foreign income, capital gains, gift or estate, gross receipts,
commercial activity, sales, use, value-added, production, ad valorem, transfer, documentary, franchise, net worth, capital, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains, intangibles, windfall profits, customs, duties,
liability with respect to United States Treasury Forms FinCen Report 114 or TD F 90-22.1, or other tax, fee, assessment, escheatment
or charge of any kind whatsoever, including tax for which a taxpayer is responsible by reason of Treasury Regulations Section
1.1502-6 (and any comparable provision of state, local or foreign Tax Legal Requirement) or as a successor by reason of contract,
indemnity or otherwise, together with any interest, additions, fine or penalty with respect thereto and any interest in respect
of such interest, additions, fine or penalties.

“Tax
Claim” has the meaning set forth in Section 7.06.

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

“Third
Party Claim” has the meaning set forth in Section 9.04(a).

    	 	9	 

     

    

“Transaction
Expenses” means all fees and expenses incurred by the Company and any Affiliate at or prior to the Closing in connection
with the performance and consummation of the Merger and the other transactions contemplated hereby and thereby. Transaction Expenses
do not included fees and expenses incurred in connection with the preparation, negotiation and execution of this Agreement and
the Ancillary Documents.

Article
II.     

The Merger

Section
2.01           The Merger.
On the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL, at the Effective Time,
(a) Merger Sub will merge with and into the Company, and (b) the separate corporate existence of Merger Sub will cease and the
Company will continue its corporate existence as the surviving corporation in the Merger (sometimes referred to herein as the
“Surviving Corporation”).

Section
2.02           Closing.
Subject to the terms and conditions of this Agreement, the closing of the Merger (the “Closing”) shall take
place no later than two (2) Business Days after the last of the conditions to Closing set forth in Article VIII have been
satisfied or waived (other than conditions which, by their nature, are to be satisfied on the Closing Date), or at such other
time or on such other date as the Company and Parent may mutually agree upon in writing (the day on which the Closing takes place
being the “Closing Date”).

Section
2.03           Closing Deliverables.

		(a)	Company
                                         Closing Deliverables. At or prior to the Closing, the Company shall deliver to Parent
                                         the following:

		(i)	resignations
                                         of the directors and officers of the Company pursuant to Section 6.04;

		(ii)	a
                                         certificate, dated the Closing Date and signed by a duly authorized officer of the Company,
                                         that each of the conditions set forth in Section 8.02(a) and Section 8.02(b)
                                         have been satisfied;

		(iii)	a
                                         certificate of the Secretary or an Assistant Secretary (or equivalent officer) of the
                                         Company certifying that (A) attached thereto are true and complete copies of (1) all
                                         resolutions adopted by the Company Board authorizing the execution, delivery and performance
                                         of this Agreement and the Ancillary Documents and the consummation of the transactions
                                         contemplated hereby and thereby and (2) resolutions of the Stockholders approving the
                                         Merger and adopting this Agreement, (B) all such resolutions are in full force and effect
                                         and are all the resolutions adopted in connection with the transactions contemplated
                                         hereby and thereby, and (C) attached thereto are true and complete copies of all third
                                         party consents, authorizations or waivers necessary to perform this Agreement;

    	 	10	 

     

    
		(iv)	a
                                         good standing certificate (or its equivalent) from the Secretary of State of Delaware;

		(v)	the
                                         Consideration Statement contemplated in Section 2.09;

		(vi)	signature
                                         pages to the Ostrowitz Agreement and Savage Agreement, as contemplated in Section
                                         8.01(e);

		(vii)	signature
                                         pages to the Joinder Agreement from every Stockholder of the Company;

		(viii)	signature
                                         page to the Regs Technology Operating Agreement, as contemplated in Section 8.01(f);

		(ix)	signature
                                         page to the License Agreement, as contemplated in Section 8.01(h);

		(x)	copies
                                         of signed IP Assignment and Confidentiality Agreements between the Company and all current
                                         employees and contractors of the Company;

		(xi)	the
                                         FIRPTA Statement; and

		(xii)	such
                                         other documents or instruments as Parent reasonably requests and are reasonably necessary
                                         to consummate the transactions contemplated by this Agreement.

		(b)	Parent
                                         Closing Deliverables. At the Closing, Parent shall deliver to the Company (or such
                                         other Person as may be specified herein) the following:

		(i)	payment
                                         of the Transaction Expenses;

		(ii)	a
                                         certificate, dated the Closing Date and signed by a duly authorized officer of Company,
                                         that each of the conditions set forth in Section 8.03(a) and Section 8.03(b)
                                         have been satisfied;

		(iii)	a
                                         certificate of the Secretary or an Assistant Secretary (or equivalent officer) of Parent
                                         and Merger Sub certifying that attached thereto are true and complete copies of all resolutions
                                         adopted by the board of directors of Parent and Merger Sub authorizing the execution,
                                         delivery and performance of this Agreement and the Ancillary Documents and the consummation
                                         of the transactions contemplated hereby and thereby, and that all such resolutions are
                                         in full force and effect and are all the resolutions adopted in connection with the transactions
                                         contemplated hereby and thereby;

		(iv)	signature
                                         pages to the Ostrowitz Agreement and Savage Agreement, as contemplated in Section
                                         8.01(e);

    	 	11	 

     

    
		(v)	final approval,
                                                                                                                                                in its sole discretion, on the Regs Technology Operating Agreement, and the signature
                                                                                                                                                page to the Regs Technology Operating Agreement, as contemplated in Section 8.01(f);

		(vi)	signature
                                         page to the License Agreement, as contemplated in Section 8.01(h);

		(vii)	signature
                                         pages to the Joinder Agreement; and

		(viii)	such
                                         other documents or instruments as the Company reasonably requests and are reasonably
                                         necessary to consummate the transactions contemplated by this Agreement.

Section
2.04           Effective Time. Subject to
the provisions of this Agreement, at the Closing, the Company, Parent and Merger Sub shall cause a certificate of merger (the
“Certificate of Merger”) to be executed, acknowledged and filed with the Secretary of State of the State of
Delaware in accordance with the relevant provisions of the DGCL and shall make all other filings or recordings required under
the DGCL. The Merger shall become effective at such time as the Certificate of Merger has been duly filed with the Secretary of
State of the State of Delaware or at such later date or time as may be agreed by the Company and Parent in writing and specified
in the Certificate of Merger in accordance with the DGCL (the effective time of the Merger being hereinafter referred to as the
“Effective Time”).

Section
2.05           Effects of the Merger. The
Merger shall have the effects set forth herein and in the applicable provisions of the DGCL. Without limiting the generality of
the foregoing, and subject thereto, from and after the Effective Time, all property, rights, privileges, immunities, powers, franchises,
licenses and authority of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities, obligations,
restrictions and duties of each of the Company and Merger Sub shall become the debts, liabilities, obligations, restrictions and
duties of the Surviving Corporation.

Section
2.06           Certificate of Incorporation; By-laws.
At the Effective Time, (a) the certificate of incorporation of the Surviving Corporation as in effect immediately prior to the
Effective Time shall be the certificate of incorporation of the Surviving Corporation until thereafter amended in accordance with
the terms thereof or as provided by applicable Law, and (b) the by-laws of the Company as in effect immediately prior to the Effective
Time shall be the by-laws of the Surviving Corporation until thereafter amended in accordance with the terms thereof, the certificate
of incorporation of the Surviving Corporation or as provided by applicable Law.

Section
2.07           Directors and Officers.

Section
2.08           Merger Share Consideration.
At the Effective Time, as a result of the Merger and without any action on the part of Parent, Merger Sub, the Company or any
Stockholder:

    	 	12	 

     

    
		(a)	Exchange
                                         of Company Common Stock. Each share of Company Common Stock (each a “Share”
                                         and collectively, the “Shares”) issued and outstanding immediately
                                         prior to the Effective Time shall be exchanged for that number of shares of Parent’s
                                         common stock, par value $0.001 per share (“Parent Common Stock”),
                                         equal to the Exchange Ratio (the “Merger Share Consideration”). Within
                                         five (5) Business Days of the Effective Time, the Parent shall cause certificates representing
                                         the Merger Share Consideration to be issued to the Stockholders.

		(b)	Conversion
                                         of Merger Sub Capital Stock. Each share of common stock of Merger Sub issued and
                                         outstanding immediately prior to the Effective Time shall be converted into and become
                                         one newly issued, fully paid and non-assessable share of common stock of the Surviving
                                         Corporation.

		(c)	Certificate
                                         Surrender and Payment. At the Effective Time, all Shares outstanding immediately
                                         prior to the Effective Time shall automatically be cancelled and retired and shall cease
                                         to exist, and each holder of a certificate formerly representing any Shares (each, a
                                         “Certificate”) shall cease to have any rights as a stockholder of
                                         the Company. Until so surrendered, each outstanding Certificate that prior to the Effective
                                         Time represented shares of Company Common Stock shall be deemed from and after the Effective
                                         Time, for all purposes, to evidence the right to receive the portion of the Merger Share
                                         Consideration as provided in Section 2.08(a).

		(d)	No
                                         Further Ownership Rights in Company Common Stock. All Merger Share Consideration
                                         paid or payable upon the surrender of Certificates in accordance with the terms hereof
                                         shall be deemed to have been paid or payable in full satisfaction of all rights pertaining
                                         to the Shares formerly represented by such Certificate, and from and after the Effective
                                         Time, there shall be no further registration of transfers of Shares on the stock transfer
                                         books of the Surviving Corporation. If, after the Effective Time, Certificates are presented
                                         to the Surviving Corporation, they shall be cancelled and exchanged for the Merger Share
                                         Consideration provided for, and in accordance with the procedures set forth in this Article
                                         II and elsewhere in this Agreement.

		(e)	Lost
                                         Certificates. If any Certificate shall have been lost, stolen or destroyed, upon
                                         the making of an affidavit of that fact by the Person claiming such Certificate to be
                                         lost, stolen or destroyed and, if required by Parent, the posting by such Person of a
                                         bond, in such reasonable amount as Parent may direct, as indemnity against any claim
                                         that may be made against it with respect to such Certificate, the Parent shall issue,
                                         in exchange for such lost, stolen or destroyed Certificate, the Merger Share Consideration
                                         to be paid in respect of the Shares formerly represented by such Certificate as contemplated
                                         under this Article II.

    	 	13	 

     

    
		(f)	Adjustments.
                                         Without limiting the other provisions of this Agreement, if at any time during the
                                         period between the date of this Agreement and the Effective Time, any change in the outstanding
                                         shares of capital stock of the Company or the Parent shall occur, including by reason
                                         of any reclassification, recapitalization, stock split (including reverse stock split)
                                         or combination, exchange or readjustment of shares, or any stock dividend or distribution
                                         paid in stock, the Exchange Ratio shall be appropriately adjusted to reflect such change.

Section
2.09           Consideration Statement.

		(a)	At
                                         least three (3) Business Days before the Closing, the Company shall prepare and deliver
                                         to Parent a statement (the “Consideration Statement”), certified by
                                         the President of the Company, which shall set forth, as of the Closing Date and immediately
                                         prior to the Effective Date, the following:

		(i)	confirmation
                                         that no agreements or rights of any kind to obtain shares of Company Common Stock through
                                         exercise or conversion thereof, either to a third party, a service provider a Company
                                         equity incentive plan or any other arrangement, have been issued and that no such agreements
                                         or rights to acquire Company Common Stock are outstanding;

		(ii)	the
                                         names and addresses of all Stockholders and the number of Company Common Stock held by
                                         such Persons;

		(iii)	detailed
                                         calculations confirming the Merger Share Consideration and Exchange Ratio, and setting
                                         for the number of shares of Parent Company Stock to be issued to each of the shareholders
                                         of the Company;

		(b)	The
                                         parties agree that Parent and Merger Sub shall be entitled to rely on the Consideration
                                         Statement in making an exchange of Merger Consideration under Article II and Parent
                                         and Merger Sub shall not be responsible for the calculations or the determinations regarding
                                         such calculations in such Consideration Statement.

    	 	14	 

     

    

Article
III.   

Representations and warranties of the Company

Except
as set forth in the correspondingly numbered Section of the Disclosure Schedules, the Company represents and warrants to Parent
that the statements contained in this Article III are true and correct in all material respects as of the date hereof.

Section
3.01           Organization and Qualification of the Company.
The Company is a corporation duly organized, validly existing and in good standing
under the Laws of the state of Delaware and has full corporate power and authority to own, operate or lease the properties and
assets now owned, operated or leased by it and to carry on its business as it has been and is currently conducted. Section
3.01 of the Disclosure Schedules sets forth each jurisdiction in which the Company is licensed or qualified to do business,
and the Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties
owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification necessary.

Section
3.02           Authority; Board Approval.

		(a)	The
                                         Company has full corporate power and authority to enter into and perform its obligations
                                         under this Agreement and the Ancillary Documents to which it is a party and, subject
                                         to, in the case of the consummation of the Merger, adoption of this Agreement by the
                                         affirmative vote or consent of Stockholders representing a majority of the outstanding
                                         Shares in accordance with the Company Charter Documents (“Requisite Company
                                         Vote”), to consummate the transactions contemplated hereby and thereby. The
                                         execution, delivery and performance by the Company of this Agreement and any Ancillary
                                         Document to which it is a party and the consummation by the Company of the transactions
                                         contemplated hereby and thereby have been duly authorized by all requisite corporate
                                         action on the part of the Company and no other corporate proceedings on the part of the
                                         Company are necessary to authorize the execution, delivery and performance of this Agreement
                                         or to consummate the Merger and the other transactions contemplated hereby and thereby,
                                         subject only, in the case of consummation of the Merger, to the receipt of the Requisite
                                         Company Vote. The Requisite Company Vote is the only vote or consent of the holders of
                                         any class or series of the Company’s capital stock required to approve and adopt
                                         this Agreement and the Ancillary Documents, approve the Merger and consummate the Merger
                                         and the other transactions contemplated hereby and thereby. This Agreement has been duly
                                         executed and delivered by the Company, and (assuming due authorization, execution and
                                         delivery by each other party hereto) this Agreement constitutes a legal, valid and binding
                                         obligation of the Company enforceable against the Company in accordance with its terms.
                                         When each Ancillary Document to which the Company is or will be a party has been duly
                                         executed and delivered by the Company (assuming due authorization, execution and delivery
                                         by each other party thereto), such Ancillary Document will constitute a legal and binding
                                         obligation of the Company enforceable against it in accordance with its terms.

    	 	15	 

     

    
		(b)	The
                                         Company Board, by resolutions duly adopted by unanimous vote at a meeting of all directors
                                         of the Company duly called and held and, as of the hereof, not subsequently rescinded
                                         or modified in any way, has, as of the date hereof (i) determined that this Agreement
                                         and the transactions contemplated hereby, including the Merger, are fair to, and in the
                                         best interests of, the Stockholders, (ii) approved and declared advisable the “agreement
                                         of merger” contained in this Agreement and the transactions contemplated by this
                                         Agreement, including the Merger, in accordance with applicable Law, (iii) directed that
                                         the “agreement of merger” contained in this Agreement be submitted to the
                                         Stockholders for adoption, and (iv) resolved to recommend that the Stockholders adopt
                                         the “agreement of merger” set forth in this Agreement and directed that such
                                         matter be submitted for consideration of the Stockholders.

Section
3.03           No Conflicts; Consents. The
execution, delivery and performance by the Company of this Agreement and the Ancillary Documents to which it is a party, and the
consummation of the transactions contemplated hereby and thereby, including the Merger, do not and will not: (i) conflict with
or result in a violation or breach of, or default under, any provision of the certificate of incorporation, by-laws or other organizational
documents of the Company (“Company Charter Documents”); (ii) subject to, in the case of the Merger, obtaining
the Requisite Company Vote, conflict with or result in a violation or breach of any provision of any Law or Governmental Order
applicable to the Company; (iii) except as set forth in Section 3.03 of the Disclosure Schedules, require the consent,
notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event
that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create
in any party the right to accelerate, terminate, modify or cancel any Contract to which the Company is a party or by which the
Company is bound or to which any of their respective properties and assets are subject (including any Contract) or any Permit
affecting the properties, assets or business of the Company; or (iv) result in the creation or imposition of any Encumbrance other
than Permitted Encumbrances on any properties or assets of the Company. No consent, approval, Permit, Governmental Order, declaration
or filing with, or notice to, any Governmental Authority is required by or with respect to the Company in connection with the
execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of the transactions contemplated
hereby and thereby, except for the filing of the Certificate of Merger with the Secretary of State of Delaware and such filings
as may be required under the HSR Act.

Section
3.04           Capitalization.

		(a)	The
                                         authorized capital stock of the Company consists of 20,000,000 Shares, of which 10,000,000
                                         Shares are issued and outstanding as of the close of business on the date of this Agreement.

		(b)	Section
                                         3.04(b) of the Disclosure Schedules set forth, as of the date hereof, a true and
                                         complete statement containing the name of each Person that is the registered owner of
                                         any Shares and the number of Shares owned by such Person.

    	 	16	 

     

    
		(c)	No
                                         subscription, warrant, option, convertible or exchangeable security, or other right (contingent
                                         or otherwise) to purchase or otherwise acquire equity securities of the Company is authorized
                                         or outstanding, and (ii) there is no commitment by the Company to issue shares, subscriptions,
                                         warrants, options, convertible or exchangeable securities, or other such rights or to
                                         distribute to holders of any of its equity securities any evidence of indebtedness or
                                         asset, to repurchase or redeem any securities of the Company or to grant, extend, accelerate
                                         the vesting of, change the price of, or otherwise amend any warrant, option, convertible
                                         or exchangeable security or other such right. There are no declared or accrued unpaid
                                         dividends with respect to any shares of Company Common Stock.

		(d)	All
                                         issued and outstanding shares of Company Common Stock are (i) duly authorized, validly
                                         issued, fully paid and non-assessable; (ii) not subject to any preemptive rights created
                                         by statute, the Company Charter Documents or any agreement to which the Company is a
                                         party; and (iii) free of any Encumbrances created by the Company in respect thereof.
                                         All issued and outstanding shares of Company Common Stock were issued in compliance with
                                         applicable Law.

		(e)	No
                                         outstanding Company Common Stock is subject to vesting or forfeiture rights or repurchase
                                         by the Company. There are no outstanding or authorized stock appreciation, dividend equivalent,
                                         phantom stock, profit participation or other similar rights with respect to the Company
                                         or any of its securities.

		(f)	All
                                         distributions, dividends, repurchases and redemptions of the capital stock (or other
                                         equity interests) of the Company were undertaken in compliance with the Company Charter
                                         Documents then in effect, any agreement to which the Company then was a party and in
                                         compliance with applicable Law.

Section
3.05           No Subsidiaries. The
Company does not own, or have any interest in any shares or have an ownership interest in any other Person.

Section
3.06           Financial Statements. Complete
copies of the Company’s audited financial statements consisting of the balance sheet of the Company as at December 31st
in each of the years 2016 and 2015 and the related statements of income and retained earnings, stockholders’ equity and
cash flow for the years then ended (the “Audited Financial Statements”), and unaudited financial statements
consisting of the balance sheet of the Company as at June 30, 2017, and the related statements of income and retained earnings,
stockholders’ equity and cash flow for the nine- month period then ended (the “Interim Financial Statements”
and together with the Audited Financial Statements, the “Financial Statements”) are included in the Disclosure
Schedules/have been delivered to Parent. The Financial Statements have been prepared in accordance with GAAP applied on a consistent
basis throughout the period involved, subject, in the case of the Interim Financial Statements, to normal and recurring year-end
adjustments (the effect of which will not be materially adverse) and the absence of notes (that, if presented, would not differ
materially from those presented in the Audited Financial Statements). The Financial Statements are based on the books and records
of the Company, and fairly present in all material respects the financial condition of the Company as of the respective dates
they were prepared and the results of the operations of the Company for the periods indicated. The balance sheet of the Company
as of December 31, 2016 is referred to herein as the “Balance Sheet” and the date thereof as the “Balance
Sheet Date” and the balance sheet of the Company as of March 31, 2017 is referred to herein as the “Interim
Balance Sheet” and the date thereof as the “Interim Balance Sheet Date.” Except as set forth in Section
3.06 of the Disclosure Schedules, the Company maintains a standard system of accounting established and administered in accordance
with GAAP.

    	 	17	 

     

    

Section
3.07           Undisclosed Liabilities. To
the Company’s Knowledge, the Company has no liabilities, obligations or commitments of any nature whatsoever, asserted or
unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (“Liabilities”),
except (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date, and (b)
those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and
which could have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section
3.08           Absence of Certain Changes, Events and Conditions.
Except as set forth in Section 3.08 of the Disclosure Schedules, since the Balance
Sheet Date, and other than in the ordinary course of business consistent with past practice, there has not been, with respect
to the Company, any:

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

		(b)	(i)
                                         amendment of the charter, by-laws or other organizational documents of the Company; (ii)
                                         split, combination or reclassification of any shares of its capital stock; (iii) except
                                         for conversion of outstanding convertible notes and exercise of outstanding options,
                                         issuance, sale or other disposition of any of its capital stock or grant of any options,
                                         warrants or other rights to purchase or obtain (including upon conversion, exchange or
                                         exercise) any of its capital stock; or (iv) declaration or payment of any dividends or
                                         distributions on or in respect of any of its capital stock or redemption, purchase or
                                         acquisition of its capital stock;

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

		(d)	material
                                         change in the Company’s cash management practices and its policies, practices and
                                         procedures with respect to collection of accounts receivable, establishment of reserves
                                         for uncollectible accounts, accrual of accounts receivable, inventory control, prepayment
                                         of expenses, payment of trade accounts payable, accrual of other expenses, deferral of
                                         revenue and acceptance of customer deposits;

		(e)	incurrence,
                                         assumption or guarantee of any indebtedness for borrowed money except unsecured current
                                         obligations and Liabilities incurred in the ordinary course of business consistent with
                                         past practice;

    	 	18	 

     

    
		(f)	(i)
                                         transfer, assignment, sale or other disposition of any of the assets shown or reflected
                                         in the Balance Sheet or cancellation of any debts or entitlements; (ii) transfer, assignment
                                         or grant of any license or sublicense of any material rights under or with respect to
                                         any Company Intellectual Property or Company IP Agreements; (iii) any capital investment
                                         in, or any loan to, any other Person; (iv) any material capital expenditures; (v) imposition
                                         of any Encumbrance upon any of the Company properties, capital stock or assets, tangible
                                         or intangible; (vi) purchase, lease or other acquisition of the right to own, use or
                                         lease any property or assets; or (vii) acquisition by merger or consolidation with, or
                                         by purchase of a substantial portion of the assets or stock of, or by any other manner,
                                         any business or any Person or any division thereof;

		(g)	Except
                                         for the acceleration of vesting under the Company’s stock option agreements, acceleration,
                                         termination, material modification to or cancellation of any material Contract to which
                                         the Company is a party or by which it is bound;

		(h)	(i)
                                         grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary,
                                         severance, pension or other compensation or benefits in respect of its current or former
                                         employees, officers, directors, independent contractors or consultants, other than as
                                         provided for in any written agreements or required by applicable Law, (ii) change in
                                         the terms of employment for any employee or any termination of any employees for which
                                         the aggregate costs and expenses exceed $1,000, or (iii) except for the acceleration
                                         of vesting under the Company’s stock option agreements, action to accelerate the
                                         vesting or payment of any compensation or benefit for any current or former employee,
                                         officer, director, independent contractor or consultant;

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

		(j)	action
                                         by the Company to make, change or rescind any Tax election, amend any Tax Return or take
                                         any position on any Tax Return, take any action, omit to take any action or enter into
                                         any other transaction that would have the effect of increasing the Tax liability or reducing
                                         any Tax asset of the Surviving Corporation or Parent in respect of any Post-Closing Tax
                                         Period; or

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

    	 	19	 

     

    

Section
3.09           Contracts.

		(a)	Section
                                         3.09(a) of the Disclosure Schedules lists all Contracts of the Company involving
                                         aggregate consideration in excess of $10,000.

		(b)	Each
                                         Contract is valid and binding on the Company in accordance with its terms and is in full
                                         force and effect. None of the Company or, to the Company’s Knowledge, any other
                                         party thereto is in breach of or default under (or is alleged to be in breach of or default
                                         under) in any material respect, or has provided or received any notice of any intention
                                         to terminate, any Contract. No event or circumstance has occurred that, with notice or
                                         lapse of time or both, would constitute an event of default under any Contract or result
                                         in a termination thereof or would cause or permit the acceleration or other changes of
                                         any right or obligation or the loss of any benefit thereunder. Complete and correct copies
                                         of each Contract (including all modifications, amendments and supplements thereto and
                                         waivers thereunder) have been made available to Parent.

		(c)	The
                                         Company is not a party to any Contracts with a Governmental Authority

Section
3.10           Title to Assets; Real Property.
The Company does not own, lease or sublease any real property. The Company has good and valid title to, or a valid leasehold interest
in, all personal property and other assets reflected in the Audited Financial Statements or acquired after the Balance Sheet Date,
other than properties and assets sold or otherwise disposed of in the ordinary course of business consistent with past practice
since the Balance Sheet Date. All such properties and assets (including leasehold interests) are free and clear of Encumbrances
except for the following (collectively referred to as “Permitted Encumbrances”):

		(a)	those
                                         items set forth in Section 3.10 of the Disclosure Schedules;

		(b)	liens
                                         for Taxes not yet due and payable;

		(c)	mechanics,
                                         carriers’, workmen’s, repairmen’s or other like liens arising or incurred
                                         in the ordinary course of business consistent with past practice or amounts that are
                                         not delinquent and which are not, individually or in the aggregate, material to the business
                                         of the Company;

		(d)	liens
                                         arising under original purchase price conditional sales contracts and equipment leases
                                         with third parties entered into in the ordinary course of business consistent with past
                                         practice which are not, individually or in the aggregate, material to the business of
                                         the Company.

Section
3.11           Condition of Assets. Except
as set forth in Section 3.11 of the Disclosure Schedules, the furniture, fixtures, equipment, vehicles and other items
of tangible personal property of the Company are sound, are in good operating condition and repair, and are adequate for the uses
to which they are being put, and none of such items of tangible personal property is in need of maintenance or repairs except
for ordinary, routine maintenance and repairs that are not material in nature or cost.

    	 	20	 

     

    

Section
3.12           Intellectual Property.

		(a)	Section
                                         3.12(a) of the Disclosure Schedules lists all (i) Company IP Registrations and (ii)
                                         Company Intellectual Property, including software, that are not registered but that are
                                         material to the Company’s business or operations. All required filings and fees
                                         related to the Company IP Registrations have been timely filed with and paid to the relevant
                                         Governmental Authorities and authorized registrars, and all Company IP Registrations
                                         are otherwise in good standing. The Company has provided Parent with true and complete
                                         copies of file histories, documents, certificates, office actions, correspondence and
                                         other materials related to all Company IP Registrations.

		(b)	Section
                                         3.12(b) of the Disclosure Schedules lists all Company IP Agreements. The Company
                                         has provided Parent with true and complete copies of all such Company IP Agreements,
                                         including all modifications, amendments and supplements thereto and waivers thereunder.
                                         Each Company IP Agreement is valid and binding on the Company in accordance with its
                                         terms and is in full force and effect. To the Company’s Knowledge, neither the
                                         Company nor any other party thereto is in breach of or default under (or is alleged to
                                         be in breach of or default under), or has provided or received any notice of breach or
                                         default of or any intention to terminate, any Company IP Agreement.

		(c)	Except
                                         as set forth in Section 3.12(c) of the Disclosure Schedules, the Company is the
                                         sole and exclusive legal and beneficial, and with respect to the Company IP Registrations,
                                         record, owner of all right, title and interest in and to the Company Intellectual Property,
                                         and has the valid right to use all other Intellectual Property used in or necessary for
                                         the conduct of the Company’s current business or operations, in each case, free
                                         and clear of Encumbrances other than Permitted Encumbrances.

		(d)	The
                                         consummation of the transactions contemplated hereunder will not result in the loss or
                                         impairment of or payment of any additional amounts with respect to, nor require the consent
                                         of any other Person in respect of, the Company’s right to own, use or hold for
                                         use any Intellectual Property as owned, used or held for use in the conduct of the Company’s
                                         business or operations as currently conducted.

		(e)	To
                                         the Company’s Knowledge, the Company’s rights in the Company Intellectual
                                         Property are valid, subsisting and enforceable. The Company has taken all reasonable
                                         steps to maintain the Company Intellectual Property and to protect and preserve the confidentiality
                                         of all trade secrets included in the Company Intellectual Property.

    	 	21	 

     

    
		(f)	To
                                         the Company’s Knowledge, the conduct of the Company’s business as currently
                                         and formerly conducted, and the products, processes and services of the Company, have
                                         not infringed, misappropriated, diluted or otherwise violated, and do not and will not
                                         infringe, dilute, misappropriate or otherwise violate the Intellectual Property or other
                                         rights of any Person. To the Company’s Knowledge, no Person has infringed, misappropriated,
                                         diluted or otherwise violated, or is currently infringing, misappropriating, diluting
                                         or otherwise violating, any Company Intellectual Property.

		(g)	To
                                         the Company’s Knowledge, there are no Actions (including any oppositions, interferences
                                         or re-examinations) settled, pending or threatened (including in the form of offers to
                                         obtain a license): (i) alleging any infringement, misappropriation, dilution or violation
                                         of the Intellectual Property of any Person by the Company; (ii) challenging the validity,
                                         enforceability, registrability or ownership of any Company Intellectual Property or the
                                         Company’s rights with respect to any Company Intellectual Property; or (iii) by
                                         the Company or any other Person alleging any infringement, misappropriation, dilution
                                         or violation by any Person of the Company Intellectual Property. The Company is not subject
                                         to any outstanding or prospective Governmental Order (including any motion or petition
                                         therefor) that does or would restrict or impair the use of any Company Intellectual Property.

Section
3.13           Accounts Receivable. The
accounts receivable reflected on the Interim Balance Sheet and the accounts receivable arising after the date thereof (a) have
arisen from bona fide transactions entered into by the Company involving the sale of goods or the rendering of services in the
ordinary course of business consistent with past practice; (b) constitute only valid, undisputed claims of the Company not subject
to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the ordinary course of business
consistent with past practice; and (c) subject to a reserve for bad debts shown on the Interim Balance Sheet or, with respect
to accounts receivable arising after the Interim Balance Sheet Date, on the accounting records of the Company, are collectible
in full within sixty (60) days after billing. The reserve for bad debts shown on the Interim Balance Sheet or, with respect to
accounts receivable arising after the Interim Balance Sheet Date, on the accounting records of the Company have been determined
in accordance with GAAP, consistently applied, subject to normal year-end adjustments and the absence of disclosures normally
made in footnotes.

Section
3.14           Customers and Suppliers.

		(a)	Section
                                         3.14(a) of the Disclosure Schedules sets forth each customer of the Company for the
                                         three (3) most recent fiscal years (collectively, the “Customers”).
                                         Except as set forth in Section 3.14(a) of the Disclosure Schedules, the Company
                                         has not received any notice, and has no reason to believe, that any of its Customers
                                         has ceased, or intends to cease after the Closing, to use its goods or services or to
                                         otherwise terminate or materially reduce its relationship with the Company.

		(b)	Section
                                         3.14(b) of the Disclosure Schedules sets forth (i) each supplier to whom the Company
                                         has paid consideration for goods or services rendered for each of the three (3) most
                                         recent fiscal years (collectively, the “Suppliers”); and (ii) the
                                         amount of purchases from each Material Supplier during such periods.

    	 	22	 

     

    

Section
3.15           Insurance. Section 3.15
of the Disclosure Schedules sets forth a true and complete list of all current policies or binders of fire, liability, product
liability, umbrella liability, real and personal property, workers’ compensation, vehicular, directors’ and officers’
liability, fiduciary liability and other casualty and property insurance maintained by Company and relating to the assets, business,
operations, employees, officers and directors of the Company (collectively, the “Insurance Policies”) and true
and complete copies of such Insurance Policies have been made available to Parent. Such Insurance Policies are in full force and
effect and shall remain in full force and effect following the consummation of the transactions contemplated by this Agreement.
The Company has not received any written notice of cancellation of, premium increase with respect to, or alteration of coverage
under, any of such Insurance Policies. All premiums due on such Insurance Policies have either been paid or, if due and payable
prior to Closing, will be paid prior to Closing in accordance with the payment terms of each Insurance Policy. Except as set forth
on Section 3.15 of the Disclosure Schedules, there are no claims related to the business of the Company pending under any
such Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding
reservation of rights. To the Company’s Knowledge, the Company is not in default under, and has not otherwise failed to
comply with, in any material respect, any provision contained in any such Insurance Policy. The Insurance Policies are of the
type and in the amounts customarily carried by Persons conducting a business similar to the Company and are sufficient for compliance
with all applicable Laws and Contracts to which the Company is a party or by which it is bound.

Section
3.16           Legal Proceedings; Governmental Orders.

		(a)	There
                                         are no Actions pending or, to the Company’s Knowledge, threatened (a) against or
                                         by the Company affecting any of its properties or assets; or (b) against or by the Company
                                         that challenges or seeks to prevent, enjoin or otherwise delay the transactions contemplated
                                         by this Agreement. No event has occurred or circumstances exist that may give rise to,
                                         or serve as a basis for, any such Action.

		(b)	There
                                         are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards
                                         against or affecting the Company or any of its properties or assets.

Section
3.17           Compliance With Laws; Permits.

		(a)	To
                                         the Company’s Knowledge, the Company has complied, and is now complying, with all
                                         Laws applicable to it or its business, properties or assets.

		(b)	All
                                         Permits required for the Company to conduct its business, if applicable, have been obtained
                                         by it and are valid and in full force and effect.

    	 	23	 

     

    

Section
3.18           Environmental Matters. The
Company is currently and has been in compliance with all Environmental Laws and has never received from any Person any notice
of violation, claim or other communication concerning a failure to comply with, or a request for information under, an Environmental
Law. The Company has no permits pertaining to Environmental Laws, and has not retained or assumed, by contract or operation of
Law, any liabilities or obligations of third parties under Environmental Law.

Section
3.19           Employee Benefit Matters.

		(a)	The
                                         Company has no Benefit Plans. A “Benefit Plan” includes any plans
                                         or obligations concerning any pension, benefit, retirement, compensation, employment,
                                         consulting, profit-sharing, deferred compensation, incentive, bonus, performance award,
                                         phantom equity, stock or stock-based, change in control, retention, severance, vacation,
                                         paid time off, welfare, fringe-benefit and other similar agreement, plan, policy, program
                                         or arrangement, in each case whether or not reduced to writing and whether funded or
                                         unfunded, including each “employee benefit plan” within the meaning of Section
                                         3(3) of ERISA, whether or not tax-qualified and whether or not subject to ERISA, which
                                         is or has been maintained, sponsored, contributed to, or required to be contributed to
                                         by the Company for the benefit of any current or former employee, officer, director,
                                         retiree, independent contractor or consultant of the Company or any spouse or dependent
                                         of such individual, or under which the Company or any of its ERISA Affiliates has or
                                         may have any Liability, or with respect to which Parent or any of its Affiliates would
                                         reasonably be expected to have any Liability, contingent or otherwise.

Section
3.20           Employment Matters.

		(a)	Section
                                         3.20(a) of the Disclosure Schedules contains a list of all persons who are employees,
                                         independent contractors or consultants of the Company as of the date hereof, including
                                         any employee who is on a leave of absence of any nature, paid or unpaid, authorized or
                                         unauthorized, and sets forth for each such individual the following: (i) name; (ii) title
                                         or position (including whether full or part time); (iii) hire date; (iv) current annual
                                         base compensation rate; and (v) commission, bonus, fringe or other compensation. Except
                                         as set forth in Section 3.20(a) of the Disclosure Schedules, as of the date hereof,
                                         all compensation, including wages, commissions and bonuses, payable to all employees,
                                         independent contractors or consultants of the Company for services performed on or prior
                                         to the date hereof have been paid in full and there are no outstanding agreements, understandings
                                         or commitments of the Company with respect to any compensation, commissions or bonuses.

Section
3.21           Taxes. Except
as set forth in Section 3.21 of the Disclosure Schedules:

		(a)	All
                                         Tax Returns required to be filed on or before the Closing Date by the Company have been,
                                         or will be, timely filed. Such Tax Returns are, or will be, true, complete and correct
                                         in all material respects. All Taxes due and owing by the Company (whether or not shown
                                         on any Tax Return) have been, or will be, timely paid.

    	 	24	 

     

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

		(c)	To
                                         the Company’s Knowledge, no claim has been made by any Government Authority in
                                         any jurisdiction where the Company does not file Tax Returns that it is, or may be, subject
                                         to Tax by that jurisdiction.

		(d)	No
                                         extensions or waivers of statutes of limitations have been given or requested with respect
                                         to any Taxes of the Company.

		(e)	The
                                         amount of the Company’s Liability for unpaid Taxes for all periods ending on or
                                         before March 31, 2017 does not, in the aggregate, exceed the amount of accruals for Taxes
                                         (excluding reserves for deferred Taxes) reflected on the Financial Statements. The amount
                                         of the Company’s Liability for unpaid Taxes for all periods following the end of
                                         the recent period covered by the Financial Statements shall not, in the aggregate, exceed
                                         the amount of accruals for Taxes (excluding reserves for deferred Taxes) as adjusted
                                         for the passage of time in accordance with the past custom and practice of the Company
                                         (and which accruals shall not exceed comparable amounts incurred in similar periods in
                                         prior years).

		(f)	All
                                         deficiencies asserted, or assessments made, against the Company as a result of any examinations
                                         by any Government Authority have been fully paid.

		(g)	The
                                         Company is not a party to any Action by any Government Authority. There are no pending
                                         or threatened Actions by any Government Authority.

		(h)	The
                                         Company has delivered to Parent copies of all federal, state, local and foreign income,
                                         franchise and similar Tax Returns, examination reports, and statements of deficiencies
                                         assessed against, or agreed to by, the Company for all Tax periods.

		(i)	There
                                         are no Encumbrances for Taxes (other than for current Taxes not yet due and payable)
                                         upon the assets of the Company.

		(j)	The
                                         Company is not a party to, or bound by, any Tax indemnity, Tax sharing or Tax allocation
                                         agreement.

		(k)	No
                                         private letter rulings, technical advice memoranda or similar agreement or rulings have
                                         been requested, entered into or issued by any taxing authority with respect to the Company.

    	 	25	 

     

    
		(l)	The
                                         Company has not been a member of an affiliated, combined, consolidated or unitary Tax
                                         group for Tax purposes. The Company has no Liability for Taxes of any Person (other than
                                         the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision
                                         of state, local or foreign Law), as transferee or successor, by contract or otherwise.

		(m)	The
                                         Company will not be required to include any item of income in, or exclude any item or
                                         deduction from, taxable income for taxable period or portion thereof ending after the
                                         Closing Date as a result of:

		(i)	any
                                         change in a method of accounting under Section 481 of the Code (or any comparable provision
                                         of state, local or foreign Tax Laws), or use of an improper method of accounting, for
                                         a taxable period ending on or prior to the Closing Date;

		(ii)	an
                                         installment sale or open transaction occurring on or prior to the Closing Date;

		(iii)	a
                                         prepaid amount received on or before the Closing Date;

		(iv)	any
                                         closing agreement under Section 7121 of the Code, or similar provision of state, local
                                         or foreign Law; or

		(v)	any
                                         election under Section 108(i) of the Code.

		(n)	The
                                         Company is not, nor has it been, a United States real property holding corporation (as
                                         defined in Section 897(c)(2) of the Code) during the applicable period specified in Section
                                         897(c)(1)(a) of the Code.

		(o)	The
                                         Company has not been a “distributing corporation” or a “controlled
                                         corporation” in connection with a distribution described in Section 355 of the
                                         Code.

		(p)	The
                                         Company is not, and has not been, a party to, or a promoter of, a “reportable transaction”
                                         within the meaning of Section 6707A(c)(1) of the Code and Treasury Regulations Section
                                         1.6011-4(b).

		(q)	The
                                         Company has not taken or agreed to take any action that would prevent the Merger from
                                         qualifying as a reorganization within the meaning of Section 368(a)(1)(A) and (a)(2)(E)
                                         of the Code. To the Company’s knowledge, there exists no agreement, plan or other
                                         circumstance that would prevent the Merger from qualifying as a reorganization within
                                         the meaning of Section 368(a)(1)(A) and (a)(2)(E) of the Code.

		(r)	The
                                         Company is not a party to any agreement, contract, arrangement or plan that has resulted
                                         or could result, separately or in the aggregate, in the payment of (A) any “excess
                                         parachute payment” within the meaning of Section 280G of the Code (or any corresponding
                                         provision of state, local or foreign Law) and (B) any amount that would not be fully
                                         deductible as a result of Section 162(m) of the Code (or any corresponding provision
                                         of state, local or foreign Law).

    	 	26	 

     

    
		(s)	The
                                         Company has not taken a position on any Tax Return that could give rise to a substantial
                                         understatement of federal income Tax within the meaning of Section 6662 of the Code.

		(t)	To
                                         the extent required by applicable Law, the Company has duly and timely filed each Form
                                         TD F 90-22.1, Report of Foreign Bank and Financial Accounts, and each FinCEN Report 114,
                                         Report of Foreign Bank and Financial Accounts, required to be filed by it, and all such
                                         forms are true, complete and correct in all respects.

		(u)	All
                                         withholding taxes resulting from cross-border payments or transfers (or deemed payments
                                         or transfers) of any kind by the Company have been withheld by it and paid over to the
                                         appropriate Governmental Authority.

		(v)	The
                                         Merger will not cause any reduction in, or elimination of, any Tax advantaged financing,
                                         Tax holiday or other Tax benefit (including credits).

		(w)	The
                                         Company does not have a permanent establishment or otherwise have an office or fixed
                                         place of business in a country other than the country of its formation.

		(x)	Since
                                         its incorporation, the Company has not (i) owned the stock of any corporation (including
                                         the stock of any qualified subchapter S subsidiary); (ii) owned a membership interest
                                         in any limited liability company; or (iii) been a member of any partnership or joint
                                         venture.

		(y)	The
                                         Company is not and has never been a personal holding company as defined in Section 542
                                         of the Code.

		(z)	Without
                                         regard to this Agreement, the Company has not undergone an "ownership change"
                                         within the meaning of Section 382 of the Code.

		(aa)	(i)
                                         No power of attorney which is currently in force has been granted by or with respect
                                         to the Company in connection with any matter related to Taxes; (ii) the Company has not
                                         engaged in a like-kind exchange within the meaning of Section 1031 of the Code or received
                                         cash proceeds in connection with an involuntary conversion within the meaning of Section
                                         1033 of the Code, with respect to which the replacement property could be purchased on
                                         or after the Closing Date; (iii) with respect to any compensation arrangements of the
                                         Company subject to 409A of the Code, the requirements of Section 409A have been satisfied
                                         and all necessary amendments to any arrangements subject to such provisions have been
                                         adopted by the appropriate Persons; (iv) to the extent that the Company is the owner
                                         of any life insurance agreement, there is no borrowing against such policy; (v) the Company
                                         is not a party to a split-dollar life insurance arrangement, as defined in Treasury Regulation
                                         Section 1.61-22(b); and (vi) the Company has not participated in or cooperated with an
                                         international boycott within the meaning of Section 999 of the Code.

    	 	27	 

     

    

		(bb)	The
                                         Company is in compliance with Financial Accounting Standards Board Interpretation No.
                                         48 (“FIN 48”) (now known as Accounting Standards Codification 740-10), and
                                         the Company has determined, assessed, and measured the benefits of all material Tax positions
                                         taken in any Tax Return for any period covered by FIN 48, including all significant uncertain
                                         positions reflected in such Tax Returns that may be subject to assessment or challenge
                                         by any Governmental Authority.

 

Section
3.22           Books and Records. The
minute books and stock record books of the Company, all of which have been made available to Parent, are complete and correct
and have been maintained in accordance with sound business practices. The minute books of the Company contain accurate and complete
records of all meetings, and actions taken by written consent of, the Stockholders, the Company Board and any committees of the
Company Board, and no meeting, or action taken by written consent, of any such Stockholders, Company Board or committee has been
held for which minutes have not been prepared and are not contained in such minute books. At the Closing, all of those books and
records will be in the possession of the Company.

Section
3.23           Related Party Transactions. No
executive officer or director of the Company or any person owning five percent (5%) or of the Shares (or any of such person’s
immediate family members or Affiliates or associates) is a party to any Contract with or binding upon the Company or any of its
assets, rights or properties or has any interest in any property owned by the Company or has engaged in any transaction with any
of the foregoing within the last twelve (12) months.

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

Section
3.25           Full Disclosure. To
the Company’s Knowledge, no representation or warranty by the Company in this Agreement and no statement contained in the
Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Parent pursuant to
this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances in which they are made, not misleading that could be reasonably expected to have
a Material Adverse Effect.

    	 	28	 

     

    

Article
IV.   

Representations and warranties of parent and merger sub

Except
as set forth in the correspondingly numbered Section of the Disclosure Schedules, Parent and Merger Sub represent and warrant
to the Company that the statements contained in this Article IV are true and correct as of the date hereof.

Section
4.01           Organization and Authority of Parent and Merger Sub.
Each of Parent and Merger Sub is a corporation duly organized, validly existing and
in good standing under the Laws of the jurisdiction of its incorporation. Each of Parent and Merger Sub has full corporate power
and authority to enter into and perform its obligations under this Agreement and the Ancillary Documents to which it is a party
and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by Parent and Merger
Sub of this Agreement and any Ancillary Document to which they are a party and the consummation by Parent and Merger Sub of the
transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Parent
and Merger Sub and no other corporate proceedings on the part of Parent and Merger Sub are necessary to authorize the execution,
delivery and performance of this Agreement or to consummate the Merger and the other transactions contemplated hereby and thereby.
This Agreement has been duly executed and delivered by Parent and Merger Sub, and (assuming due authorization, execution and delivery
by each other party hereto) this Agreement constitutes a legal, valid and binding obligation of Parent and Merger Sub enforceable
against Parent and Merger Sub in accordance with its terms. When each Ancillary Document to which Parent or Merger Sub is or will
be a party has been duly executed and delivered by Parent or Merger Sub (assuming due authorization, execution and delivery by
each other party thereto), such Ancillary Document will constitute a legal and binding obligation of Parent or Merger Sub enforceable
against it in accordance with its terms.

Section
4.02           No Conflicts; Consents. The
execution, delivery and performance by Parent and Merger Sub of this Agreement and the Ancillary Documents to which they are a
party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result
in a violation or breach of, or default under, any provision of the certificate of incorporation, by-laws or other organizational
documents of Parent or Merger Sub; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental
Order applicable to Parent or Merger Sub; or (c) except as set forth in Section 4.02 of the Disclosure Schedules, require
the consent, notice or other action by any Person under any Contract to which Parent or Merger Sub is a party. No consent, approval,
Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect
to Parent or Merger Sub in connection with the execution, delivery and performance of this Agreement and the Ancillary Documents
and the consummation of the transactions contemplated hereby and thereby, except for the filing of the Certificate of Merger with
the Secretary of State of Delaware and such filings as may be required under the HSR Act.

Section
4.03           No Prior Merger Sub Operations.
Merger Sub was formed solely for the purpose of effecting the Merger and has not engaged
in any business activities or conducted any operations other than in connection with the transactions contemplated hereby.

    	 	29	 

     

    

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

Section
4.05           Sufficiency of Funds. Parent has sufficient cash on hand
or other sources of immediately available funds to enable it to consummate the transactions contemplated by this Agreement.

Section
4.06           Legal Proceedings. Except as set forth in Section 4.06 of
the Disclosure Schedules, there are no Actions pending or, to Parent’s or Merger Sub’s knowledge, threatened against
or by Parent, Merger Sub or any of their respective Affiliates that challenge or seek to prevent, enjoin or otherwise delay the
transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise or serve as a basis
for any such Action.

Article
V.      

Representations and warranties of the stockholders

As
a condition to Closing, the Company and Stockholder Representative shall deliver to the Parent the representations and warranties
set forth in the Joinder Agreement from every Stockholder of the Company.

Article
VI.   

Covenants

Section
6.01           Conduct of Business Prior to the Closing.
From the date hereof until the Closing, except as otherwise provided in this Agreement
or consented to in writing by Parent (which consent shall not be unreasonably withheld or delayed), the Company shall (x) conduct
the business of the Company in the ordinary course of business consistent with past practice; Without limiting the foregoing,
from the date hereof until the Closing Date, the Company shall:

		(a)	pay
                                         its debts, Taxes and other obligations when due;

		(b)	maintain
                                         the assets owned, operated or used by it in the same condition as they were on the date
                                         of this Agreement, subject to reasonable wear and tear;

		(c)	continue
                                         in full force and effect without modification all Insurance Policies, except as required
                                         by applicable Law;

		(d)	defend
                                         and protect its properties and assets from infringement or usurpation;

		(e)	perform
                                         all of its obligations under all Contracts relating to or affecting its properties, assets
                                         or business;

		(f)	maintain
                                         its books and records in accordance with past practice;

    	 	30	 

     

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

		(h)	not
                                         take or permit any action that would cause any of the changes, events or conditions described
                                         in Section 3.08 to occur.

Section
6.02           Access to Information; Confidentiality.

		(a)	From
                                         the date hereof until the Closing, the Company shall (a) afford Parent and its Representatives,
                                         during regular business hours and upon reasonable notice to the Company, access to and
                                         the right to inspect all of the assets, premises, books and records, Contracts and other
                                         documents and data related to the Company; (b) furnish Parent and its Representatives
                                         with such financial, operating and other data and information related to the Company
                                         as Parent or any of its Representatives may reasonably request; and (c) instruct the
                                         Representatives of the Company to cooperate with Parent in its investigation of the Company.
                                         No investigation by Parent or other information received by Parent shall operate as a
                                         waiver or otherwise affect any representation, warranty or agreement given or made by
                                         the Company in this Agreement.

		(b)	The
                                         parties agree that the terms of this Agreement and all information exchanged hereto shall
                                         be kept confidential by the parties and their Representatives and not disclosed to any
                                         other Person without the prior consent of the other party.

Section
6.03           Notice of Certain Events.

		(a)	From
                                         the date hereof until the Closing, the Company shall promptly notify Parent in writing
                                         of:

		(i)	any
                                         fact, circumstance, event or action the existence, occurrence or taking of which (A)
                                         has had, or could reasonably be expected to have, individually or in the aggregate, a
                                         Material Adverse Effect, (B) has resulted in, or could reasonably be expected to result
                                         in, any representation or warranty made by the Company hereunder not being true and correct
                                         or (C) has resulted in, or could reasonably be expected to result in, the failure of
                                         any of the conditions set forth in Section 8.02 to be satisfied;

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

		(iii)	any
                                         notice or other communication from any Governmental Authority in connection with the
                                         transactions contemplated by this Agreement; and

    	 	31	 

     

    
		(iv)	any
                                         Actions commenced or, to the Company’s Knowledge, threatened against, relating
                                         to or involving or otherwise affecting the Company that, if pending on the date of this
                                         Agreement, would have been required to have been disclosed pursuant to Section 3.16
                                         or that relates to the consummation of the transactions contemplated by this Agreement.

		(b)	Parent’s
                                         receipt of information pursuant to this Section 6.03 shall not operate as a waiver
                                         or otherwise affect any representation, warranty or agreement given or made by the Company
                                         in this Agreement and shall not be deemed to amend or supplement the Disclosure Schedules.

Section
6.04           Resignations. The
Company shall deliver to Parent written resignations, effective as of the Closing Date, of the officers and directors of the Company
requested by Parent at least three (3) Business Days prior to the Closing.

Section
6.05           Governmental Approvals; Consents.

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

		(b)	The
                                         Company and Parent shall use reasonable best efforts to give all notices to, and obtain
                                         all consents from, all third parties that are described in Section 3.02 and Section
                                         4.02 of the Disclosure Schedules.

Section
6.06           Tax-Free Reorganization Treatment.

		(a)	The
                                         Company and the Parent shall use their commercially reasonable best efforts, and shall
                                         cause their Affiliates to use their commercially reasonable best efforts, to take or
                                         cause to be taken any action necessary for the Merger to qualify as a reorganization
                                         within the meaning of Section 368(a)(1)(A) and (a)(2)(E) of the Code. Neither the Company
                                         nor the Parent shall, nor shall they permit any of their respective Subsidiaries to,
                                         take or cause to be taken any action that could reasonably be expected to prevent the
                                         Merger from qualifying as a reorganization within the meaning of Section 368(a)(1)(A)
                                         and (a)(2)(E) of the Code.

    	 	32	 

     

    
		(b)	Prior
                                         to the Merger, Company Stockholders will not (and did not) dispose of any Company Common
                                         Stock, or receive any distributions from the Company, in a manner that would cause the
                                         Merger to (i) violate the continuity of shareholder interest requirement set forth in
                                         Treasury Regulation Section 1.368-1(e) or (ii) fail to qualify as a reorganization within
                                         the meaning of Section 368(a)(1)(A) and (a)(2)(E) of the Code.

		(c)	This
                                         Agreement is intended to constitute, and the parties hereto hereby adopt this Agreement
                                         as, a “plan of reorganization” within the meaning Treasury Regulation Sections 1.368-2(g)
                                         and 1.368-3(a). Each of the Company and the Parent shall report the Merger as a reorganization
                                         within the meaning of Section 368(a)(1)(A) and (a)(2)(E) of the Code, unless otherwise
                                         required pursuant to (i) a “determination” within the meaning of Section
                                         1313(a) of the Code or (ii) a settlement with IRS Appeals on IRS Form 870-AD (or successor
                                         form).

Section
6.07           Closing Conditions.
From the date hereof until the Closing, each party hereto shall use reasonable best efforts to take such actions as are necessary
to expeditiously satisfy the closing conditions set forth in Article VIII hereof.

Section
6.08           Registration of Merger Share Consideration.
The Company shall use its reasonable best efforts to register the shares of Parent
Company Stock, represented by the Merger Share Consideration, issued to the Stockholders, by preparing and filing a registration
statement on Form S-1 or a similar form with the U.S. Securities and Exchange Commission within a commercially practical period
of time following the Closing.

Section
6.09           Public Announcements. Unless
otherwise required by applicable Law (based upon the reasonable advice of counsel), no party to this Agreement shall make any
public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news
media without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), and
the parties shall cooperate as to the timing and contents of any such announcement.

Section
6.10           Further Assurances. At
and after the Effective Time, the officers and directors of the Surviving Corporation shall be authorized to execute and deliver,
in the name and behalf of the Company or Merger Sub, any deeds, bills of sale, assignments or assurances and to take and do, in
the name and on behalf of the Company or Merger Sub, any other actions and things to vest, perfect or confirm of record or otherwise
in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets of
the Company acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger.

    	 	33	 

     

    

Article
VII.                       

Tax matters

Section
7.01           Tax Covenants.

		(a)	Without
                                         the prior written consent of Parent, prior to the Closing, the Company, its Representatives
                                         and the Stockholders shall not make, change or rescind any Tax election, amend any Tax
                                         Return or take any position on any Tax Return, take any action, omit to take any action
                                         or enter into any other transaction that would have the effect of increasing the Tax
                                         liability or reducing any Tax asset of Parent or the Surviving Corporation in respect
                                         of any Post-Closing Tax Period. The Company agrees that Parent is to have no liability
                                         for any Tax resulting from any action of the Company, any of its Representatives or the
                                         Stockholders. The Stockholders shall, severally and not jointly (in accordance with their
                                         Pro Rata Shares), indemnify and hold harmless Parent against any such Tax or reduction
                                         of any Tax asset.

		(b)	All
                                         transfer, documentary, sales, use, stamp, registration, value added and other such Taxes
                                         and fees (including any penalties and interest) incurred in connection with this Agreement
                                         and the Ancillary Documents (including any real property transfer Tax and any other similar
                                         Tax) shall be borne and paid by the Stockholders when due. Stockholder Representative
                                         shall timely file any Tax Return or other document with respect to such Taxes or fees
                                         (and Parent shall cooperate with respect thereto as necessary).

Section
7.02           Termination of Existing Tax Sharing Agreements.
Any and all existing Tax sharing agreements (whether written or not) binding upon the
Company shall be terminated as of the Closing Date. After such date neither the Company nor any of its Representatives shall have
any further rights or liabilities thereunder.

Section
7.03           Tax Indemnification. The
Indemnifying Stockholders shall, severally and not jointly (in accordance with their Indemnifying Pro Rata Shares), indemnify
the Company, Parent, Surviving Corporation, and each Parent Indemnitee and hold them harmless from and against (a) any Loss attributable
to any breach of or inaccuracy in any representation or warranty made in Section 3.21; (b) any Loss attributable to any
breach or violation of, or failure to fully perform, any covenant, agreement, undertaking or obligation in Article VII;
(c) all Taxes of the Company or relating to the business of the Company for all Pre-Closing Tax Periods; (d) all Taxes of any
member of an affiliated, consolidated, combined or unitary group of which the Company (or any predecessor of the Company) is or
was a member on or prior to the Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6 or any comparable
provisions of foreign, state or local Law; (e) any and all Taxes of any person imposed on the Company arising under the principles
of transferee or successor liability or by contract, relating to an event or transaction occurring on or before the Closing Date;
and (f) any liability of the Company attributable to U.S. Treasury Forms FinCen Report 114 or TD F 99-22.1 for the Pre-Closing
Tax Period. . In each of the above cases, together with any out-of-pocket fees and expenses (including attorneys’ and accountants’
fees) incurred in connection therewith, the Indemnifying Stockholders shall, severally and not jointly (in accordance with their
Indemnifying Pro Rata Shares), reimburse Parent for any Taxes of the Company that are the responsibility of the Stockholders pursuant
to this Section 7.03 within ten Business Days after payment of such Taxes by Parent or the Company.

    	 	34	 

     

    

Section
7.04           Tax Returns.

		(a)	The
                                         Company shall prepare and timely file, or cause to be prepared and timely filed, all
                                         Tax Returns required to be filed by it that are due on or before the Closing Date (taking
                                         into account any extensions), and shall timely pay all Taxes that are due and payable
                                         on or before the Closing Date (taking into account any extensions), and shall timely
                                         pay all Taxes that are due and payable on or before the Closing Date. Any such Tax Return
                                         shall be prepared in a manner consistent with past practice (unless otherwise required
                                         by Law).

		(b)	Parent
                                         shall prepare and timely file, or cause to be prepared and timely filed, all Tax Returns
                                         required to be filed by the Company after the Closing Date with respect to a Pre-Closing
                                         Tax Period and for any Straddle Period. Any such Tax Return shall be prepared in a manner
                                         consistent with past practice (unless otherwise required by Law) and, if it is an income
                                         or other material Tax Return, shall be submitted by Parent to Stockholder Representative
                                         (together with schedules, statements and, to the extent requested by Stockholder Representative,
                                         supporting documentation) at least forty-five (45) days prior to the due date (including
                                         extensions) of such Tax Return. If Stockholder Representative objects to any item on
                                         any such Tax Return that relates to a Pre-Closing Tax Period, it shall, within ten (10)
                                         days after delivery of such Tax Return, notify Parent in writing that it so objects,
                                         specifying with particularity any such item and stating the specific factual or legal
                                         basis for any such objection. If a notice of objection shall be duly delivered, Parent
                                         and Stockholder Representative shall negotiate in good faith and use their reasonable
                                         best efforts to resolve such items. If Parent and Stockholder Representative are unable
                                         to reach such agreement within ten (10) days after receipt by Parent of such notice,
                                         the disputed items shall be resolved by the Independent Accountant and any determination
                                         by the Independent Accountant shall be final. The Independent Accountant shall resolve
                                         any disputed items within twenty (20) days of having the item referred to it pursuant
                                         to such procedures as it may require. If the Independent Accountant is unable to resolve
                                         any disputed items before the due date for such Tax Return, the Tax Return shall be filed
                                         as prepared by Parent and then amended to reflect the Independent Accountant’s
                                         resolution. The costs, fees and expenses of the Independent Accountant shall be borne
                                         equally by Parent and Stockholder Representative. The preparation and filing of any Tax
                                         Return of the Company that does not relate to a Pre-Closing Tax Period or Straddle Period
                                         shall be exclusively within the control of Parent.

Section
7.05           Straddle Period. In
the case of Taxes that are payable with respect to a taxable period that begins on or before and ends after the Closing Date (each
such period, a “Straddle Period”), the portion of any such Taxes that are treated as Pre-Closing Taxes for
the Pre-Closing Tax Period for purposes of this Agreement shall be:

    	 	35	 

     

    

		(a)	in
                                         the case of Taxes (i) based upon, or related to, income, receipts, profits, wages, capital
                                         or net worth, (ii) imposed in connection with the sale, transfer or assignment of property,
                                         or (iii) required to be withheld, deemed equal to the amount which would be payable if
                                         the taxable year ended on and including the Closing Date; and

		(b)	in
                                         the case of other Taxes, deemed to be the amount of such Taxes for the entire period
                                         multiplied by a fraction the numerator of which is the number of days in the period ending
                                         on and including the Closing Date and the denominator of which is the number of days
                                         in the entire period.

Section
7.06           Contests. Parent
agrees to give written notice to Stockholder Representative of the receipt of any written notice by the Company, Parent or any
of Parent’s Affiliates which involves the assertion of any claim, or the commencement of any Action, in respect of which
an indemnity may be sought by Parent pursuant to this Article VII (a “Tax Claim”); provided, that
failure to comply with this provision shall not affect Parent’s right to indemnification hereunder. Parent shall control
the contest or resolution of any Tax Claim, and the Stockholders shall bear any expenses of Parent in accordance with Section
7.03; provided, however, that Parent shall obtain the prior written consent of Stockholder Representative (which consent
shall not be unreasonably withheld or delayed) before entering into any settlement of a claim or ceasing to defend such claim;
and, provided further, that Stockholder Representative shall be entitled to participate in the defense of such claim and
to employ counsel of its choice for such purpose, the fees and expenses of which separate counsel shall be borne solely by Stockholder
Representative.

Section
7.07           Cooperation and Exchange of Information.
The Stockholder Representative, the Company, the Surviving Corporation and Parent shall
provide each other with such cooperation and information as either of them reasonably may request of the others in filing any
Tax Return pursuant to this Article VII or in connection with any audit or other proceeding in respect of Taxes of the
Company. Such cooperation and information shall include providing copies of relevant Tax Returns or portions thereof, together
with accompanying schedules, related work papers and documents relating to rulings or other determinations by tax authorities.
Each of Stockholder Representative, the Company, Surviving Corporation and Parent shall retain all Tax Returns, schedules and
work papers, records and other documents in its possession relating to Tax matters of the Company for any taxable period beginning
before the Closing Date until the expiration of the statute of limitations of the taxable periods to which such Tax Returns and
other documents relate, without regard to extensions except to the extent notified by any of the other parties in writing of such
extensions for the respective Tax periods

Section
7.08           Tax Treatment of Indemnification Payments.
Any indemnification payments pursuant to this Article VII shall be treated as
an adjustment to the amounts paid by the Parent as Merger Consideration for Tax purposes, unless otherwise required by Law.

    	 	36	 

     

    

Section
7.09           Payments to Parent.
Any amounts payable to Parent pursuant to this Article VII shall be paid by the Indemnifying Stockholders, severally and
not jointly (in accordance with their Indemnifying Pro Rata Shares).

Section
7.10           FIRPTA Statement. On
the Closing Date, the Company shall deliver to Parent a certificate of the Company (in accordance with Treasury Regulations Sections
1.1445 2(c)(3) and 1.897-2(h)) and in a form reasonably acceptable to Parent, dated as of the Closing Date and signed by a responsible
officer of the Company, stating that the interests in the Company are not, and have not been at any time during the five (5) years
preceding the date of such certificate, United States real property interests, as defined in Section 897(c)(1) of the Code (the
“FIRPTA Statement”).

Section
7.11           Further Information. Parent and Stockholders Representative
agree, upon request, to promptly provide the other party with all information that either Party may be required to report pursuant
to Sections 6043, 6043A or 6045B of the Code, or Treasury Regulations promulgated thereunder.

Section
7.12           Overlap. To
the extent that any obligation or responsibility pursuant to Article IX may overlap with an obligation or responsibility
pursuant to this Article VII, the provisions of this Article VII shall govern.

Section
7.13           Survival. Notwithstanding
anything in this Agreement to the contrary, the provisions of Section 3.21 and this Article VII shall survive for the full
period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof).

Article
VIII.                    

Conditions to closing

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

    	 	37	 

     

    

		(a)	This
                                         Agreement shall have been duly adopted by the Requisite Company Vote.

		(b)	The
                                         filings of Parent and the Company pursuant to the HSR Act, if any, shall have been made
                                         and the applicable waiting period and any extensions thereof shall have expired or been
                                         terminated.

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

		(d)	The
                                         Company shall have received all consents, authorizations, orders and approvals referred
                                         to in Section 3.02 and Parent shall have received all consents, authorizations,
                                         orders and approvals referred to in Section 4.02, in each case, in form and substance
                                         reasonably satisfactory to Parent and the Company, and no such consent, authorization,
                                         order and approval shall have been revoked.

		(e)	Parent
                                         and Amanda Ostrowitz shall enter into an executive employment agreement, in substantially
                                         the form attached hereto as Exhibit A (the “Ostrowitz Agreement”);
                                         and Parent and Kristen Savage shall enter into an executive employment agreement, in
                                         substantially the form attached hereto as Exhibit B (the “Savage
                                         Agreement”).

		(f)	Parent,
                                         the Stockholders of the Company (other than Parent) and Regs Technology shall enter into
                                         and execute an operating agreement with respect to Regs Technology (the “Regs Technology
                                         Operating Agreement”) in substantially the form attached hereto as Exhibit D,
                                         such form being subject to Parent’s final approval, in its sole discretion, prior
                                         to Closing. The Regs Technology Operating Agreement shall provide that Parent owns twenty-five
                                         percent (25%) of Regs Technology, that such ownership cannot be diluted, and that the
                                         Stockholders of the Company (other than Parent) shall own the remaining seventy-five
                                         percent (75%) of Regs Technology, pro rata in proportion to all such Stockholder’s
                                         ownership in the Company (not taking into account Parent’s ownership in the Company).

		(g)	The
                                         Company and all current employees and independent contractors of the Company shall enter
                                         into IP Assignment and Confidentiality Agreements, in substantially the form attached
                                         hereto as Exhibit F.

		(h)	Parent
                                         and Regs Technology shall enter into the License Agreement, in substantially the form
                                         attached hereto as Exhibit E.

		(i)	The
                                         board of directors and/or stockholders of Parent shall have approved the Equity Incentive
                                         Plan, in a form substantially the same as the Parent’s current and prior equity
                                         incentive plans.

    	 	38	 

     

    

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

		(a)	Other
                                         than the representations and warranties of the Company contained in Section 3.01,
                                         Section 3.02(a), Section 3.04, Section 3.06 and Section 3.24,
                                         the representations and warranties of the Company contained in this Agreement, the Ancillary
                                         Documents and any certificate or other writing delivered pursuant hereto shall be true
                                         and correct in all respects (in the case of any representation or warranty qualified
                                         by materiality or Material Adverse Effect) or in all material respects (in the case of
                                         any representation or warranty not qualified by materiality or Material Adverse Effect)
                                         on and as of the date hereof and on and as of the Closing Date with the same effect as
                                         though made at and as of such date (except those representations and warranties that
                                         address matters only as of a specified date, the accuracy of which shall be determined
                                         as of that specified date in all respects). The representations and warranties of the
                                         Company contained in Section 3.01, Section 3.02(a), Section 3.04,
                                         Section 3.06 and Section 3.24 shall be true and correct in all respects
                                         on and as of the date hereof and on and as of the Closing Date with the same effect as
                                         though made at and as of such date (except those representations and warranties that
                                         address matters only as of a specified date, the accuracy of which shall be determined
                                         as of that specified date in all respects).

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

		(c)	No
                                         Action shall have been commenced against Parent, Merger Sub or the Company, which would
                                         prevent the Closing. No injunction or restraining order shall have been issued by any
                                         Governmental Authority, and be in effect, which restrains or prohibits any transaction
                                         contemplated hereby.

		(d)	All
                                         approvals, consents and waivers that are listed on Section 3.02 of the Disclosure
                                         Schedules shall have been received, and executed counterparts thereof shall have been
                                         delivered to Parent at or prior to the Closing.

		(e)	From
                                         the date of this Agreement, there shall not have occurred any Material Adverse Effect,
                                         nor shall any event or events have occurred that, individually or in the aggregate, with
                                         or without the lapse of time, could reasonably be expected to result in a Material Adverse
                                         Effect.

		(f)	The
                                         Company shall have delivered each of the closing deliverables set forth in Section
                                         2.03(a).

		(g)	The
                                         Company or Stockholder Representative shall have delivered to Parent the Joinder Agreements
                                         signed by every Stockholder of the Company as of the date hereof.

    	 	39	 

     

    

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

		(a)	Other
                                         than the representations and warranties of Parent and Merger Sub contained in Section
                                         4.01 and Section 4.04, the representations and warranties of Parent and Merger
                                         Sub contained in this Agreement, the Ancillary Documents and any certificate or other
                                         writing delivered pursuant hereto shall be true and correct in all respects (in the case
                                         of any representation or warranty qualified by materiality or Material Adverse Effect)
                                         or in all material respects (in the case of any representation or warranty not qualified
                                         by materiality or Material Adverse Effect) on and as of the date hereof and on and as
                                         of the Closing Date with the same effect as though made at and as of such date (except
                                         those representations and warranties that address matters only as of a specified date,
                                         the accuracy of which shall be determined as of that specified date in all respects).
                                         The representations and warranties of Parent and Merger Sub contained in Section 4.01
                                         and Section 4.04 shall be true and correct in all respects on and as of the
                                         date hereof and on and as of the Closing Date with the same effect as though made at
                                         and as of such date.

		(b)	Parent
                                         and Merger Sub shall have duly performed and complied in all material respects with all
                                         agreements, covenants and conditions required by this Agreement and each of the Ancillary
                                         Documents to be performed or complied with by them prior to or on the Closing Date.

		(c)	All
                                         approvals, consents and waivers that are listed on Section 4.02 of the Disclosure
                                         Schedules shall have been received, and executed counterparts thereof shall have been
                                         delivered to the Company at or prior to the Closing.

		(d)	Parent
                                         shall have delivered each of the closing deliverables set forth in Section 2.03(b).

Article
IX.   

Indemnification

Section
9.01           Survival. Subject
to the limitations and other provisions of this Agreement, the representations and warranties contained herein (other than any
representations or warranties contained in Section 3.21 which are subject to Article VII) shall survive the Closing
and shall remain in full force and effect until the date that is eighteen (18) months from the Closing Date; provided, that
the representations and warranties in (a) Section 3.01, Section 3.02(a), Section 3.04, Section 3.24,
Section 4.01 and Section 4.04 shall survive indefinitely, (b) Section 3.18 shall survive for a period of
two (2) years after the Closing, and (c) Section 3.19 and Section 3.21 shall survive for the full period of all applicable
statutes of limitations (giving effect to any waiver, mitigation or extension thereof). All covenants and agreements of the parties
contained herein (other than any covenants or agreements contained in Article VII which are subject to Article VII)
shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims
asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the Indemnified
Party to the Indemnifying Party prior to the expiration date of the applicable survival period shall not thereafter be barred
by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.

    	 	40	 

     

    

Section
9.02           Indemnification by Indemnifying Stockholders.
Subject to the other terms and conditions of this Article IX, including the
Cap (as defined below), the Indemnifying Stockholders, severally and not jointly (in accordance with their Indemnifying Pro Rata
Shares), shall indemnify and defend each of Parent and its Affiliates (including the Company and the Surviving Corporation) and
their respective Representatives (collectively, the “Parent Indemnitees”) against, and shall hold each of them
harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed
upon, the Parent Indemnitees based upon, arising out of, with respect to or by reason of:

		(a)	any
                                         inaccuracy in or breach of any of the representations or warranties of the Company contained
                                         in this Agreement or in any certificate or instrument delivered by or on behalf of the
                                         Company pursuant to this Agreement (other than in respect of Section 3.21, it
                                         being understood that the sole remedy for any such inaccuracy in or breach thereof shall
                                         be pursuant to Article VII), as of the date such representation or warranty was
                                         made or as if such representation or warranty was made on and as of the Closing Date
                                         (except for representations and warranties that expressly relate to a specified date,
                                         the inaccuracy in or breach of which will be determined with reference to such specified
                                         date);

		(b)	any
                                         breach or non-fulfillment of any covenant, agreement or obligation to be performed by
                                         the Company pursuant to this Agreement (other than any breach or violation of, or failure
                                         to fully perform, any covenant, agreement, undertaking or obligation in Article VII,
                                         it being understood that the sole remedy for any such breach, violation or failure shall
                                         be pursuant to Article VII);

		(c)	any
                                         claim made by any Stockholder relating to such Person’s rights with respect to
                                         the Merger Consideration, or the calculations and determinations set forth on the Consideration
                                         Statement; or

		(d)	any
                                         amounts paid to the holders of dissenting shareholders, including any interest required
                                         to be paid thereon, that are in excess of what such holders would have received hereunder
                                         had such holders not been holders of dissenting Shares.

Notwithstanding
any inconsistent provision in this Agreement, the aggregate amount of all Losses for which the Indemnifying Stockholders shall
be liable pursuant to this Section 9.02 shall not exceed the fair market value of the Merger Share Consideration as of the Closing
Date (the “Cap”). Notwithstanding any inconsistent provision in this Agreement, the Indemnifying Stockholders
shall not be liable for any Losses pursuant to this Section 9.02 until such Losses, in aggregate, exceed the sum of $100,000 (the
“Basket”). The foregoing limitations shall apply regardless of the particular theory of liability, whether
based in contract, tort or otherwise, and shall constitute such the Indemnifying Stockholders sole and exclusive liability under
this Agreement.

    	 	41	 

     

    

Section
9.03           Indemnification by Parent. Subject
to the other terms and conditions of this Article IX, Parent shall indemnify and defend each of the Indemnifying Stockholders
and their Affiliates and their respective Representatives (collectively, the “Stockholder Indemnitees”) against,
and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred
or sustained by, or imposed upon, the Stockholder Indemnitees based upon, arising out of, with respect to or by reason of:

		(a)	any
                                         inaccuracy in or breach of any of the representations or warranties of Parent and Merger
                                         Sub contained in this Agreement or in any certificate or instrument delivered by or on
                                         behalf of Parent or Merger Sub pursuant to this Agreement, as of the date such representation
                                         or warranty was made or as if such representation or warranty was made on and as of the
                                         Closing Date (except for representations and warranties that expressly relate to a specified
                                         date, the inaccuracy in or breach of which will be determined with reference to such
                                         specified date); or

		(b)	any
                                         breach or non-fulfillment of any covenant, agreement or obligation to be performed by
                                         Parent or Merger Sub pursuant to this Agreement (other than Article VII, it being
                                         understood that the sole remedy for any such breach thereof shall be pursuant to Article VII).

Section
9.04           Indemnification Procedures. The
party making a claim under this Article IX is referred to as the “Indemnified Party,” and the party
against whom such claims are asserted under this Article IX is referred to as the “Indemnifying Party.”
For purposes of this Article IX, (i) if Parent (or any other Parent Indemnitee) comprises the Indemnified Party, any references
to Indemnifying Party (except provisions relating to an obligation to make payments) shall be deemed to refer to Stockholder Representative,
and (ii) if Parent comprises the Indemnifying Party, any references to the Indemnified Party shall be deemed to refer to Stockholder
Representative. Any payment received by Stockholder Representative as the Indemnified Party shall be distributed to the Indemnifying
Stockholders in accordance with this Agreement.

    	 	42	 

     

    

		(a)	Third
                                         Party Claims. If any Indemnified Party receives notice of the assertion or commencement
                                         of any Action made or brought by any Person who is not a party to this Agreement or an
                                         Affiliate of a party to this Agreement or a Representative of the foregoing (a “Third
                                         Party Claim”) against such Indemnified Party with respect to which the Indemnifying
                                         Party is obligated to provide indemnification under this Agreement, the Indemnified Party
                                         shall give the Indemnifying Party reasonably prompt written notice thereof, but in any
                                         event not later than thirty (30) calendar days after receipt of such notice of such Third
                                         Party Claim. The failure to give such prompt written notice shall not, however, relieve
                                         the Indemnifying Party of its indemnification obligations, except and only to the extent
                                         that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such
                                         notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail,
                                         shall include copies of all material written evidence thereof and shall indicate the
                                         estimated amount, if reasonably practicable, of the Loss that has been or may be sustained
                                         by the Indemnified Party. The Indemnifying Party shall have the right to participate
                                         in, or by giving written notice to the Indemnified Party, to assume the defense of any
                                         Third Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s
                                         own counsel, and the Indemnified Party shall cooperate in good faith in such defense;
                                         provided, that if the Indemnifying Party is an Indemnifying Stockholder, such
                                         Indemnifying Party shall not have the right to defend or direct the defense of any such
                                         Third Party Claim that (x) is asserted directly by or on behalf of a Person that is a
                                         supplier or customer of the Company, or (y) seeks an injunction or other equitable relief
                                         against the Indemnified Parties. In the event that the Indemnifying Party assumes the
                                         defense of any Third Party Claim, subject to Section 9.04(b), it shall have the
                                         right to take such action as it deems necessary to avoid, dispute, defend, appeal or
                                         make counterclaims pertaining to any such Third Party Claim in the name and on behalf
                                         of the Indemnified Party. The Indemnified Party shall have the right to participate in
                                         the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying
                                         Party’s right to control the defense thereof. The fees and disbursements of such
                                         counsel shall be at the expense of the Indemnified Party, provided, that if in
                                         the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses
                                         available to an Indemnified Party that are different from or additional to those available
                                         to the Indemnifying Party; or (B) there exists a conflict of interest between the Indemnifying
                                         Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be
                                         liable for the reasonable fees and expenses of counsel to the Indemnified Party in each
                                         jurisdiction for which the Indemnified Party determines counsel is required. If the Indemnifying
                                         Party elects not to compromise or defend such Third Party Claim, fails to promptly notify
                                         the Indemnified Party in writing of its election to defend as provided in this Agreement,
                                         or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified
                                         Party may, subject to Section 9.04(b), pay, compromise, defend such Third Party
                                         Claim and seek indemnification for any and all Losses based upon, arising from or relating
                                         to such Third Party Claim. Stockholder Representative and Parent shall cooperate with
                                         each other in all reasonable respects in connection with the defense of any Third Party
                                         Claim, including making available records relating to such Third Party Claim and furnishing,
                                         without expense (other than reimbursement of actual out-of-pocket expenses) to the defending
                                         party, management employees of the non-defending party as may be reasonably necessary
                                         for the preparation of the defense of such Third Party Claim.

    	 	43	 

     

    
		(b)	Settlement
                                         of Third Party Claims. Notwithstanding any other provision of this Agreement, the
                                         Indemnifying Party shall not enter into settlement of any Third Party Claim without the
                                         prior written consent of the Indemnified Party, except as provided in this Section
                                         9.04(b). If a firm offer is made to settle a Third Party Claim without leading to
                                         liability or the creation of a financial or other obligation on the part of the Indemnified
                                         Party and provides, in customary form, for the unconditional release of each Indemnified
                                         Party from all liabilities and obligations in connection with such Third Party Claim
                                         and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying
                                         Party shall give written notice to that effect to the Indemnified Party. If the Indemnified
                                         Party fails to consent to such firm offer within ten (10) days after its receipt of such
                                         notice, the Indemnified Party may continue to contest or defend such Third Party Claim
                                         and in such event, the maximum liability of the Indemnifying Party as to such Third Party
                                         Claim shall not exceed the amount of such settlement offer. If the Indemnified Party
                                         fails to consent to such firm offer and also fails to assume defense of such Third Party
                                         Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth
                                         in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed
                                         the defense pursuant to Section 9.04(a), it shall not agree to any settlement
                                         without the written consent of the Indemnifying Party (which consent shall not be unreasonably
                                         withheld or delayed).

		(c)	Direct
                                         Claims. Any Action by an Indemnified Party on account of a Loss which does not result
                                         from a Third Party Claim (a “Direct Claim”) shall be asserted by the
                                         Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof,
                                         but in any event not later than thirty (30) days after the Indemnified Party becomes
                                         aware of such Direct Claim. The failure to give such prompt written notice shall not,
                                         however, relieve the Indemnifying Party of its indemnification obligations, except and
                                         only to the extent that the Indemnifying Party forfeits rights or defenses by reason
                                         of such failure. Such notice by the Indemnified Party shall describe the Direct Claim
                                         in reasonable detail, shall include copies of all material written evidence thereof and
                                         shall indicate the estimated amount, if reasonably practicable, of the Loss that has
                                         been or may be sustained by the Indemnified Party. The Indemnifying Party shall have
                                         thirty (30) days after its receipt of such notice to respond in writing to such Direct
                                         Claim. The Indemnified Party shall allow the Indemnifying Party and its professional
                                         advisors to investigate the matter or circumstance alleged to give rise to the Direct
                                         Claim, and whether and to what extent any amount is payable in respect of the Direct
                                         Claim and the Indemnified Party shall assist the Indemnifying Party’s investigation
                                         by giving such information and assistance (including access to the Company’s premises
                                         and personnel and the right to examine and copy any accounts, documents or records) as
                                         the Indemnifying Party or any of its professional advisors may reasonably request. If
                                         the Indemnifying Party does not so respond within such thirty (30) day period, the Indemnifying
                                         Party shall be deemed to have rejected such claim, in which case the Indemnified Party
                                         shall be free to pursue such remedies as may be available to the Indemnified Party on
                                         the terms and subject to the provisions of this Agreement.

		(d)	Tax
                                         Claims. Notwithstanding any other provision of this Agreement, the control of any
                                         claim, assertion, event or proceeding in respect of Taxes of the Company (including,
                                         but not limited to, any such claim in respect of a breach of the representations and
                                         warranties in Section 3.21 hereof or any breach or violation of or failure to
                                         fully perform any covenant, agreement, undertaking or obligation in Article VII)
                                         shall be governed exclusively by Article VII hereof.

    	 	44	 

     

    

Section
9.05           Payments.

		(a)	Once
                                         a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant
                                         to this Article IX, the Indemnifying Party shall satisfy its obligations within
                                         fifteen (15) Business Days of such final, non-appealable adjudication by wire transfer
                                         of immediately available funds or, if applicable, as set forth in Section 9.02 above.
                                         The parties hereto agree that should an Indemnifying Party not make full payment of any
                                         such obligations within such fifteen (15) Business Day period, any amount payable shall
                                         accrue interest from and including the date of agreement of the Indemnifying Party or
                                         final, non-appealable adjudication to but excluding the date such payment has been made
                                         at a rate per annum equal to ten percent (10%). Such interest shall be calculated daily
                                         on the basis of a 365 day year and the actual number of days elapsed, without compounding.

		(b)	Any
                                         Losses payable to a Parent Indemnitee pursuant to Article IX shall be paid by
                                         the Indemnifying Stockholders, severally and not jointly (in accordance with their Indemnifying
                                         Pro Rata Shares) as set forth in Section 9.02 above.

Section
9.06           Tax Treatment of Indemnification Payments.
All indemnification payments made under this Agreement shall be treated by the parties
as an adjustment to the amounts paid by the Parent as Merger Consideration for Tax purposes, unless otherwise required by Law.

Section
9.07           Effect of Investigation. The
representations, warranties and covenants of the Indemnifying Party, and the Indemnified Party’s right to indemnification
with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of the Indemnified
Party (including by any of its Representatives) or by reason of the fact that the Indemnified Party or any of its Representatives
knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of the Indemnified
Party’s waiver of any condition set forth in Section 8.02 or Section 8.03, as the case may be.

Section
9.08           Exclusive Remedies. Subject
to Section 11.12, the parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims
(other than claims arising from fraud, criminal activity or willful misconduct on the part of a party hereto in connection with
the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation
set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions
set forth in Article VII and this Article IX. In furtherance of the foregoing, each party hereby waives, to the
fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty,
covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against
the other parties hereto and their Affiliates and each of their respective Representatives arising under or based upon any Law,
except pursuant to the indemnification provisions set forth in Article VII and this Article IX. Nothing in this
Section 9.08 shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall be
entitled or to seek any remedy on account of any party’s fraudulent, criminal or intentional misconduct.

    	 	45	 

     

    

Article
X.      

Termination

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

		(a)	by
                                         the mutual written consent of the Company and Parent;

		(b)	by
                                         Parent by written notice to the Company if:

		(i)	neither
                                         Parent nor Merger Sub is then in material breach of any provision of this Agreement and
                                         there has been a breach, inaccuracy in or failure to perform any representation, warranty,
                                         covenant or agreement made by the Company pursuant to this Agreement that would give
                                         rise to the failure of any of the conditions specified in Article VIII and such
                                         breach, inaccuracy or failure has not been cured by the Company within ten (10) days
                                         of the Company’s receipt of written notice of such breach from Parent; or

		(ii)	any
                                         of the conditions set forth in Section 8.01 or Section 8.02 shall not have
                                         been, or if it becomes apparent that any of such conditions will not be, fulfilled by
                                         ____________, 2017, unless such failure shall be due to the failure of Parent to perform
                                         or comply with any of the covenants, agreements or conditions hereof to be performed
                                         or complied with by it prior to the Closing;

		(c)	by
                                         Parent or the Company if there shall be any Law that makes consummation of the transactions
                                         contemplated by this Agreement illegal or otherwise prohibited or any Governmental Authority
                                         shall have issued a Governmental Order restraining or enjoining the transactions contemplated
                                         by this Agreement, and such Governmental Order shall have become final and non-appealable;
                                         or

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

		(a)	as
                                         set forth in this Article X and Article XI hereof; and

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

    	 	46	 

     

    

Article
XI.   

Miscellaneous

Section
11.01       Stockholder Representative.

		(a)	Company
                                         and Stockholder Representative hereby represent and warrant that Stockholder Representative
                                         has, prior to the date hereof, been irrevocably authorized and appointed to act as Stockholder
                                         Representative as the Stockholders’ representative and attorney-in-fact to act
                                         on behalf of such Persons with respect to this Agreement and to take any and all actions
                                         and make any decisions required or permitted to be taken by Stockholder Representative
                                         pursuant to this Agreement, including the exercise of the power to:

		(i)	give
                                         and receive notices and communications;

		(ii)	agree
                                         to, negotiate, enter into settlements and compromises of, and comply with orders or otherwise
                                         handle any other matters described herein;

		(iii)	agree
                                         to, negotiate, enter into settlements and compromises of, and comply with orders of courts
                                         with respect to claims for indemnification made by Parent pursuant to Article VII
                                         and Article IX;

		(iv)	litigate,
                                         arbitrate, resolve, settle or compromise any claim for indemnification pursuant to Article
                                         VII and Article IX;

		(v)	execute
                                         and deliver all documents necessary or desirable to carry out the intent of this Agreement
                                         and any Ancillary Document;

		(vi)	make
                                         all elections or decisions contemplated by this Agreement and any Ancillary Document;

		(vii)	engage,
                                         employ or appoint any agents or representatives (including attorneys, accountants and
                                         consultants) to assist Stockholder Representative in complying with its duties and obligations;
                                         and

		(viii)	take
                                         all actions necessary or appropriate in the good faith judgment of Stockholder Representative
                                         for the accomplishment of the foregoing.

Parent
shall be entitled to deal exclusively with Stockholder Representative on all matters relating to this Agreement (including Article
IX) and shall be entitled to rely conclusively (without further evidence of any kind whatsoever) on any document executed
or purported to be executed on behalf of any Stockholder by Stockholder Representative, and on any other action taken or purported
to be taken on behalf of any Stockholder by Stockholder Representative, as being fully binding upon such Person. Notices or communications
to or from Stockholder Representative shall constitute notice to or from each of the Stockholders. Any decision or action by Stockholder
Representative hereunder, including any agreement between Stockholder Representative and Parent relating to the defense, payment
or settlement of any claims for indemnification hereunder, shall constitute a decision or action of all Stockholders and shall
be final, binding and conclusive upon each such Person. No Stockholder shall have the right to object to, dissent from, protest
or otherwise contest the same. The provisions of this Section, including the power of attorney granted hereby, are independent
and severable, are irrevocable and coupled with an interest and shall not be terminated by any act of any one or Stockholders,
or by operation of Law, whether by death or other event.

    	 	47	 

     

    
		(b)	The
                                         Stockholder Representative may resign at any time, and may be removed for any reason
                                         or no reason by the vote or written consent of a majority in interest of the Stockholders
                                         according to each Stockholder’s Pro Rata Share (the “Majority Holders”);
                                         provided, however, in no event shall Stockholder Representative resign or be removed
                                         without the Majority Holders having first appointed a new Stockholder Representative
                                         who shall assume such duties immediately upon the resignation or removal of Stockholder
                                         Representative. In the event of the death, incapacity, resignation or removal of Stockholder
                                         Representative, a new Stockholder Representative shall be appointed by the vote or written
                                         consent of the Majority Holders. Notice of such vote or a copy of the written consent
                                         appointing such new Stockholder Representative shall be sent to Parent, such appointment
                                         to be effective upon the later of the date indicated in such consent or the date such
                                         notice is received by Parent; provided, that until such notice is received, Parent,
                                         Merger Sub and the Surviving Corporation shall be entitled to rely on the decisions and
                                         actions of the prior Stockholder Representative as described in Section 11.01(a)
                                         above.

		(c)	The
                                         Stockholder Representative shall not be liable to the Stockholders for actions taken
                                         pursuant to this Agreement, except to the extent such actions shall have been determined
                                         by a court of competent jurisdiction to have constituted gross negligence or involved
                                         fraud, intentional misconduct or bad faith (it being understood that any act done or
                                         omitted pursuant to the advice of counsel, accountants and other professionals and experts
                                         retained by Stockholder Representative shall be conclusive evidence of good faith). The
                                         Stockholders shall severally and not jointly (in accordance with their Pro Rata Shares),
                                         indemnify and hold harmless Stockholder Representative from and against, compensate it
                                         for, reimburse it for and pay any and all losses, liabilities, claims, actions, damages
                                         and expenses, including reasonable attorneys’ fees and disbursements, arising out
                                         of and in connection with its activities as Stockholder Representative under this Agreement.

Section
11.02       Expenses. Parent
shall pay all Transaction Expenses. Except with respect to the foregoing or as otherwise expressly provided herein, all costs
and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses,
whether or not the Closing shall have occurred.

Section
11.03       Notices. All
notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document
(with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent
after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or
at such other address for a party as shall be specified in a notice given in accordance with this Section 11.03):

    	 	48	 

     

    

If
to the Company orCannaRegs, Ltd.

Stockholder
Representative1776 Race St. #109,

Denver,
CO 80206

Attention:
Amanda Ostrowitz

Amanda@CannaRegs.com

 

with
a copy to:Messner Reeves LLP

1430
Wynkoop Street, Suite 300

Denver,
Colorado 80202

Email:
jwysocki@messner.com

Attention:
Jeremy S. Wysocki

 

 

If
to Parent or Merger Sub:MassRoots, Inc.

1624
Market Street, Suite 201

Denver,
CO 802020

Email:
isaacdietrich@gmail.com 

Attention:
Isaac Dietrich

 

with
a copy to:Thompson Hine LLP

335
Madison Avenue

New
York, New York 10017

Email:
Peter.Gennuso@thompsonhine.com

Attention:
Peter Gennuso

 

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

    	 	49	 

     

    

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

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

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

Section
11.08       Successors and Assigns.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other
party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of
its obligations hereunder.

Section
11.09       No Third-party Beneficiaries.
Except as provided in Section 7.03 and Article IX, this Agreement is for the sole benefit of the parties hereto
and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon
any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

Section
11.10       Amendment and Modification; Waiver.
This Agreement may only be amended, modified or supplemented by an agreement in writing signed by Parent, Merger Sub and the Company
at any time prior to the Effective Time; provided, however, that after the Requisite Company Vote is obtained, there
shall be no amendment or waiver that, pursuant to applicable Law, requires further approval of the Stockholders, without the receipt
of such further approvals. Any failure of Parent or Merger Sub, on the one hand, or the Company, on the other hand, to comply
with any obligation, covenant, agreement or condition herein may be waived by the Company (with respect to any failure by Parent
or Merger Sub) or by Parent or Merger Sub (with respect to any failure by the Company), respectively, only by a written instrument
signed by the party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

    	 	50	 

     

    

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

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

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

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

    	 	51	 

     

    

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

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

IN
ENTERING INTO THIS AGREEMENT, THE PARTIES ACKNOWLEDGE THAT THEY HAVE RELIED UPON THE LEGAL ADVICE OF THEIR RESPECTIVE ATTORNEYS,
WHO ARE THE ATTORNEYS OF THEIR OWN CHOOSING, THAT SUCH TERMS ARE FULLY UNDERSTOOD AND VOLUNTARILY ACCEPTED BY THEM, AND THAT,
OTHER THAN THE CONSIDERATION SET FORTH HEREIN, NO PROMISES OR REPRESENTATIONS OF ANY KIND HAVE BEEN MADE TO THEM BY THE OTHER
PARTY. THE PARTIES REPRESENT AND ACKNOWLEDGE THAT IN EXECUTING THIS AGREEMENT THEY DID NOT RELY, AND HAVE NOT RELIED, UPON ANY
REPRESENTATION OR STATEMENT, WHETHER ORAL OR WRITTEN, MADE BY THE OTHER PARTY OR BY THAT OTHER PARTY'S AGENTS, REPRESENTATIVES,
OR ATTORNEYS WITH REGARD TO THE SUBJECT MATTER, BASIS, OR EFFECT OF THIS AGREEMENT OR OTHERWISE. THE PARTIES HEREBY ACKNOWLEDGE
THAT (I) THOMPSON HINE LLP IS COUNSEL TO PARENT AND MERGER SUB, AND HAS NOT REPRESENTED THE COMPANY OR THE STOCKHOLDER REPRESENTATIVE
IN THE NEGOTIATION OF THIS AGREEMENT, THE ANCILLARY DOCUMENTS, AND THE TRANSACTIONS CONTEMPLATED THEREBY; AND (II) MESSNER REEVES
LLP IS COUNSEL TO THE COMPANY AND THE STOCKHOLDER REPRESENTATIVE AND HAS NOT REPRESENTED PARENT OR MERGER SUB IN THE NEGOTIATION
OF THIS AGREEMENT, THE ANCILLARY DOCUMENTS, AND THE TRANSACTIONS CONTEMPLATED THEREBY.

 

 

[SIGNATURE
PAGE FOLLOWS]

    	 	52	 

     

    

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

 

CANNAREGS,
LTD.

 

 

By:

Name:
       Amanda Ostrowitz

Title:
       Chief Executive Officer

 

 

MASSROOTS,
INC.

 

 

By:

Name:       Isaac
Dietrich

Title:
       Chief Executive Officer

 

 

MASSROOTS
LEGAL TECHNOLOGY, INC.

 

 

By:

Name:       Isaac
Dietrich

Title:       Authorized
Representative

 

 

STOCKHOLDER
REPRESENTATIVE

 

 

By:              

Name:       Amanda
Ostrowitz,

solely
in his capacity as Stockholder Representative

    	 	53	 

     

    

 

EXHIBIT
A

 

OSTROWITZ
AGREEMENT

 

(attached)

    	 	54	 

     

    

 

 

EXHIBIT
B

 

SAVAGE
AGREEMENT

 

(attached)

    	 	55	 

     

    

 

 

EXHIBIT
C

 

FORM
OF JOINDER AGREEMENT

 

(attached)

    	 	56	 

     

    

 

 

EXHIBIT
D

 

OPERATING
AGREEMENT OF REGS TECHNOLOGY 

 

(attached)

    	 	57	 

     

    

 

EXHIBIT
E

 

LICENSE
AGREEMENT

 

(attached)

    	 	58	 

     

    

 

EXHIBIT
F

 

FORM
OF IP ASSIGNMENT AND CONFIDENTIALITY AGREEMENT

 

(attached)

    	 	59

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