Document:

ex_203241.htm

EXHIBIT 4.1

 

DESCRIPTION OF SECURITIES 

REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

Capital Stock

 

Amerityre Corporation (the “Company”) is authorized to issue (i) 100,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”) and (ii) 5,000,000 shares of “blank check” preferred stock, par value $0.001 per share, with such rights, preferences and limitations as may be set by a resolution of the Board of Directors of the Company.

 

The Common Stock is registered pursuant to Section 12(g) of the Securities Exchange Act of 1934.

 

The holders of Common Stock are entitled to one vote per share on all matters submitted to a vote of shareholders, including the election of directors. There are no cumulative rights or preemptive rights. The directors of the Company are elected by a plurality of the votes cast by the shareholders. On all other matters submitted to the shareholders, the affirmative vote of the majority of the votes cast for or against a proposal shall be the act of the shareholders unless otherwise provided by the Chapter 78 of the Nevada Revised Statutes (“NRS”) or the bylaws of the Company.

 

In the event of liquidation or dissolution, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock. Holders of Common Stock have no preemptive rights and have no right to convert their Common Stock into any other securities and there are no redemption provisions applicable to our Common Stock.

 

The holders of Common Stock are entitled to any dividends that may be declared by the Board of Directors out of funds legally available for payment of dividends subject to the prior rights of holders of preferred stock and any contractual restrictions we have against the payment of dividends on Common Stock. We have not paid dividends on our Common Stock since inception and do not plan to pay dividends on our Common Stock in the foreseeable future.

 

Certain Provisions of Our Charter and Bylaws

 

Anti-takeover Provisions

 

In general, Section 78.438 of the NRS prohibits a Nevada corporation from engaging in a “combination” with an “interested stockholder” for a two-year period following the time that this shareholder becomes an interested shareholder, unless the combination is approved in a prescribed manner. A “combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a 5% voting interest in the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within two years prior to the determination of interested shareholder status, 10% or more of the corporation’s voting stock. Under Section 78.438, a combination between a corporation and an interested shareholder is prohibited unless the combination meets all the requirements of the articles of incorporation and it satisfies one of the following conditions:

 

	
			 

				
			●

				
			The combination or the transaction by which the person first became an interested stockholder is approved by the board of directors of the corporation before the person first became an interested stockholder; or

			
	
			 

				
			●

				
			The combination is approved by the board of directors of the corporation and, at or after that time, the combination is approved at an annual or special meeting of the stockholders of the corporation, and not by written consent, by the affirmative vote of the holders of stock representing at least 60 percent of the outstanding voting power of the resident domestic corporation not beneficially owned by the interested stockholder or the affiliates or associates of the interested stockholder.

			
	
			 

				
			 

				
			 

			

 

 

 

 

 

 

The NRS permits a corporation to opt out of, or choose not to be governed by, its anti-takeover statute by expressly stating so in its original articles of incorporation (or subsequent amendment to its articles of incorporation or bylaws approved by its shareholders). The Articles of Incorporation of the Company, as amended, does not contain a provision expressly opting out of the application of Section 78.438 of the NRS; therefore the Company is subject to the anti-takeover statute.

 

Issuance of “Blank check” Preferred Stock

 

As stated above the Board of Directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Common Stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes could, under some circumstances, have the effect of delaying, deferring or preventing a change in control of the Company.

 

Special Stockholder Meetings and Action by Written Consent

 

Under our bylaws, special meetings of the stockholders may be called at any time by the Chairman of the Board, the President, or by the Board of Directors, or in their absence or disability, by any Vice president, and shall be immediately called by the president or, in his absence or disability, by a Vice President or by the Secretary on the written request of the holders of not less than one-tenth of all the shares entitled to vote at the meeting, such written request to state the purpose or purposes of the meeting and to be delivered to the President, each Vice President, or Secretary.  

 

The information regarding the Common Stock contained herein does not constitute a complete legal description of the Common Stock and is qualified in all material respects by the provisions of the Company’s Articles of Incorporation and bylaws, as filed with the Securities and Exchange Commission.Exhibit
10.01

 

Execution Version

 

Agreement
and Plan of Merger

 

By
and among

 

SRAX,
INC., as the Parent

 

TOWNSGATE
MERGER SUB 1, INC., as Merger Sub 1

 

LD
MICRO, INC., as Merger Sub 2

 

LD
MICRO, INC., as the Target

 

and

 

Christopher
Lahiji, in the capacity as the sole stockholder of the target

 

dated
as of

 

September
4, 2020

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	Article
    I Definitions	2
	 	 
	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.	13
	Section
    2.07 Directors and Officers.	13
	Section
    2.08 Effect of the Merger on Common Stock.	13
	Section
    2.09 Surrender and Payment.	14
	Section
    2.10 No Further Ownership Rights in Company Common Shares.	14
	Section
    2.11 Adjustments.	14
	Section
    2.12 Section 2.12 Acceleration of Cash Payment.	15
	Section
    2.13 Withholding Rights.	15
	Section
    2.14 Lost Certificates.	15
	Section
    2.15 Post-Closing Affairs.	15
	Section
    2.18 Consideration Spreadsheet.	18
	 	 
	Article
    III Representations and warranties of the Company and the Stockholder	18
	 	 
	Section
    3.01 Organization and Qualification of the Company.	18
	Section
    3.02 Authority; Board Approval.	18
	Section
    3.03 No Conflicts; Consents.	19
	Section
    3.04 Capitalization.	19
	Section
    3.05 No Subsidiaries.	20
	Section
    3.06 Financial Statements.	21
	Section
    3.07 Undisclosed Liabilities.	21
	Section
    3.08 Absence of Certain Changes, Events and Conditions.	21

 

    	i

    	 

    

 

	Section
    3.09 Material Contracts.	23
	Section
    3.10 Title to Assets; Real Property.	25
	Section
    3.11 Condition And Sufficiency of Assets.	26
	Section
    3.12 Intellectual Property.	26
	Section
    3.13 Intentionally Omitted].	27
	Section
    3.14 Accounts Receivable.	27
	Section
    3.15 Customers and Suppliers.	28
	Section
    3.16 Insurance.	28
	Section
    3.17 Legal Proceedings; Governmental Orders.	29
	Section
    3.18 Compliance With Laws; Permits.	29
	Section
    3.19 [Intentionally Omitted].	29
	Section
    3.20 Employee Benefit Matters.	30
	Section
    3.21 Employment Matters.	33
	Section
    3.22 Taxes.	34
	Section
    3.23 Books and Records.	36
	Section
    3.24 Related Party Transactions.	36
	Section
    3.25 Brokers.	37
	Section
    3.26 Full Disclosure.	37
	 	 
	Article
    IV Representations and warranties of parent and merger sub	38
	 	 
	Section
    4.01 Organization and Authority of Parent and Merger Sub.	38
	Section
    4.02 No Conflicts; Consents.	39
	Section
    4.03 No Prior Merger Sub Operations.	39
	Section
    4.04 Brokers.	39
	Section
    4.05 Sufficiency of Funds; Solvency.	39
	Section
    4.06 Legal Proceedings.	40
	Section
    4.07 Independent Investigation.	40
	 	 
	Article
    V Covenants	40
	 	 
	Section
    5.01 Conduct of Business Prior to the Closing.	40
	Section
    5.02 Access to Information.	41
	Section
    5.03 No Solicitation of Other Bids.	41

 

    	ii

    	 

    

 

	Section
    5.04 Stockholder Consent.	42
	Section
    5.05 Notice of Certain Events.	42
	Section
    5.06 Resignations.	43
	Section
    5.07 Governmental Approvals and Consents	43
	Section
    5.08 Directors’ and Officers’ Indemnification and Insurance.	44
	Section
    5.09 Closing Conditions	44
	Section
    5.10 Public Announcements.	44
	Section
    5.11 Further Assurances.	44
	Section
    5.14 Rollover of 401(k) Plan Accounts.	45
	Section
    5.15 Trademark Assignments.	45
	Section
    5.16 Other Matters.	45
	 	 
	Article
    VI Tax matters	46
	 	 
	Section
    6.01 Tax Covenants.	46
	Section
    6.02 Termination of Existing Tax Sharing Agreements.	47
	Section
    6.03 Tax Indemnification.	47
	Section
    6.04 Tax Returns	48
	Section
    6.06 Contests.	48
	Section
    6.07 Cooperation and Exchange of Information.	48
	Section
    6.08 Tax Treatment of Indemnification Payments.	49
	Section
    6.09 Payments to Buyer	49
	Section
    6.10 Limitations on Tax Indemnification	49
	Section
    6.11 Survival.	49
	Section
    6.12 Overlap.	49
	 	 
	Article
    VII Conditions to closing	49
	 	 
	Section
    7.01 Conditions to Obligations of All Parties.	49
	Section
    7.02 Conditions to Obligations of Parent and Merger Sub.	50
	Section
    7.03 Conditions to Obligations of the Company.	51
	 	 
	Article
    VIII Indemnification	52
	 	 
	Section
    8.01 Survival.	52
	Section
    8.02 Indemnification By Stockholder.	52

 

    	iii

    	 

    

 

	Section
    8.03 Indemnification By Parent.	53
	Section
    8.04 Certain Limitations.	53
	Section
    8.05 Indemnification Procedures.	53
	Section
    8.06 Payments; Indemnification Escrow Fund.	56
	Section
    8.07 Tax Treatment of Indemnification Payments.	56
	Section
    8.08 Effect of Investigation.	56
	Section
    8.09 Exclusive Remedies.	56
	 	 
	Article
    IX Termination	59
	 	 
	Section
    9.01 Termination.	57
	Section
    9.02 Effect of Termination.	58
	 	 
	Article
    X Miscellaneous	58
	 	 
	Section
    10.01 Expenses.	58
	Section
    10.02 Notices.	58
	Section
    10.03 Interpretation.	59
	Section
    10.04 Headings.	59
	Section
    10.05 Severability.	60
	Section
    10.06 Entire Agreement.	60
	Section
    10.07 Successors and Assigns.	60
	Section
    10.08 No Third-party Beneficiaries.	60
	Section
    10.09 Amendment and Modification; Waiver.	60
	Section
    10.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.	61
	Section
    10.11 Specific Performance.	61
	Section
    10.12 Counterparts.	61

 

    	iv

    	 

    

 

AGREEMENT
AND PLAN OF MERGER

 

This
Agreement and Plan of Merger (this “Agreement”), dated as of September 4, 2020, is entered into by and among
SRAX, Inc. a Delaware corporation (“Parent”), Townsgate Merger Sub 1, Inc., a Delaware corporation and a direct
wholly-owned subsidiary of Parent (“Merger Sub 1”), LD Micro, Inc., a Delaware corporation and a direct wholly-owned
subsidiary of Parent (“Merger Sub 2”), LD Micro, Inc., a California corporation (the “Company”),
and Christopher Lahiji, the sole stockholder of the Company (the “Stockholder”). Merger Sub 1 and Merger Sub
2 are sometimes collectively referred to in this Agreement as “Merger Sub.”

 

RECITALS

 

WHEREAS,
the parties intend that Merger Sub 1 will be merged with and into the Company (the “First Merger”), with the
Company surviving the First Merger, and then the Company will be merged with and into Merger Sub 2 (the “Second Merger,”
and together with the First Merger, the “Merger”), with Merger Sub 2 surviving the Second Merger, each on the
terms and subject to the conditions set forth herein;

 

WHEREAS,
the board of directors of the Company (the “Company Board”) has, by unanimous written consent (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 Stockholder in accordance with the California Corporations Code,
as amended (the “CCC”);

 

WHEREAS,
the Company has received the approval of the Stockholder by unanimous written consent to enter into this Agreement in accordance
with the CCC;

 

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,
(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 their respective stockholders in accordance with the Delaware General Corporation Law
(“DGCL”).

 

WHEREAS,
immediately following the execution of this Agreement by each of the parties hereto, Parent, as the sole stockholder of Merger
Sub 1, will adopt this Agreement and the transactions contemplated hereby, including the First Merger, by executing a written
consent approving such adoption;

 

    	1

    	 

    

 

WHEREAS,
immediately following the execution of this Agreement by each of the parties hereto, Parent, as the sole member of Merger Sub
2, will adopt this Agreement and the transactions contemplated hereby, including the Second Merger, by executing a written consent
approving such adoption; and

 

WHEREAS,
for U.S. federal income Tax purposes, it is intended that the Mergers qualify as a “reorganization” within the meaning
of Section 368(a) of the Code, and the Treasury Regulations promulgated thereunder, and this Agreement constitute and be adopted
as a “plan of reorganization” within the meaning of Treasury Regulation Sections 1.368-2(g) and 1.368-3(a).

 

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:

 

“Acquisition
Proposal” has the meaning set forth in Section 5.03(a).

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, 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.

 

“Annual
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.

 

“Benefit
Plan” has the meaning set forth in Section 3.20(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.

 

    	2

    	 

    

 

“Cash”
means all cash and all cash equivalents, in each case determined in accordance with GAAP. For the avoidance of doubt, Cash will
be calculated net of any expenses accrued and owed by the Company or Surviving Corporation, as applicable, prior to the Measurement
Date.

 

“Cash
Payment” means $4,000,000 in cash payable as follows: (i) $1,000,000 at the Closing, (ii) $1,000,000 on January 1, 2021,
(iii) $1,000,000 on April 1, 2021, and (iv) $1,000,000 on July 1, 2021, and subject to adjustment or off-set as provided for in
this Agreement.

 

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

 

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

 

“Certificate
of First Merger” has the meaning set forth in Section 2.04(a).

 

“Certificate
of Second Merger” has the meaning set forth in Section 2.04(b).

 

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

 

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

 

“Closing
Indebtedness Certificate” means a certificate executed by the Chief Financial Officer of the Company certifying on behalf
of the Company an itemized list of all outstanding Indebtedness as of the close of business on the Closing Date and the Person
to whom such outstanding Indebtedness is owed and an aggregate total of such outstanding Indebtedness.

 

“Closing
Merger Consideration” means the portion of the Cash Payment payable at the Closing minus the Transaction Expenses
as set forth on the Closing Transaction Expenses Certificate.

 

“Closing
Per Share Merger Consideration” means (a) the Closing Merger Consideration, divided by (b) the total number of
Shares outstanding at the Closing Date.

 

“Closing
Transaction Expenses Certificate” means a certificate executed by the Chief Financial Officer of the Company, certifying
the amount of Transaction Expenses remaining unpaid as of the close of business on the Business Day immediately prior to the Effective
Time (including an itemized list of each such unpaid Transaction Expense with a description of the nature of such expense and
the Person to whom such expense is owed).

 

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

 

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

 

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

 

“Company
Board Recommendation” has the meaning set forth in Section 3.02(b).

 

    	3

    	 

    

 

“Company
Cash” means Cash held by the Company at the applicable time.

 

“Company
Cash Statement” has the meaning set forth in Section 2.15(b).

 

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

 

“Company
Common Shares” means the common shares 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
Spreadsheet” has the meaning set forth in Section 2.16(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.

 

“DGCL”
has the meaning set forth in the recitals.

 

“Direct
Claim” has the meaning set forth in Section 8.05(c).

 

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

 

“Disputed
Amounts” has the meaning set forth in Section 2.15(c)(ii).

 

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

 

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

 

“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.

 

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

 

    	4

    	 

    

 

“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.

 

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

 

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

 

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

 

“Government
Contracts” has the meaning set forth in Section 3.09(a)(viii).

 

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

 

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

 

“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) any other accrued liabilities or expenses; (h) 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 (g); and (i) 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 (h).

 

“Indemnified
Party” has the meaning set forth in Section 8.05.

 

“Indemnifying
Party” has the meaning set forth in Section 8.05.

 

“Independent
Accountant” has the meaning set forth in Section 2.15(c)(ii).

 

“Insurance
Policies” has the meaning set forth in Section 3.16.

 

    	5

    	 

    

 

“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).

 

“Intended
Tax Treatment” has the meaning set forth in Section 6.01(a).

 

“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.

 

“Knowledge”
means, when used with respect to any Person, the actual or constructive knowledge of any director or officer of a Person, after
due inquiry.

 

“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.

 

“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.

 

    	6

    	 

    

 

“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 and/or Parent, or (b) the ability of the Company and/or Parent to consummate the transactions contemplated
hereby on a timely basis; provided, however, that “Material Adverse Effect” shall not include any event, occurrence,
fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions;
(ii) conditions generally affecting the industries in which the Company and/or Parent operate; (iii) any changes in financial
or securities markets in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation
or worsening thereof; (v) any action required or permitted by this Agreement, except pursuant to Section 3.03 and Section
5.07; (vi) any changes in applicable Laws or accounting rules, including GAAP; or (vii) the public announcement, pendency
or completion of the transactions contemplated by this Agreement; provided further, however, that any event, occurrence,
fact, condition or change referred to in clauses (i) through (iv) immediately above shall be taken into account in determining
whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent that such event, occurrence,
fact, condition or change has a disproportionate effect on the Company compared to other participants in the industries in which
the Company conducts its businesses.

 

“Material
Contracts” has the meaning set forth in Section 3.09(a).

 

“Material
Customers” has the meaning set forth in Section 3.15(a).

 

“Material
Suppliers” has the meaning set forth in Section 3.15(b).

 

“Measurement
Date” has the meaning set forth in Section 3.15(a).

 

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

 

“Merger
Certificates” has the meaning set forth in Section 2.04(b).

 

“Merger
Consideration” means the aggregate Purchase Price.

 

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

 

“Merger
Sub 1” has the meaning set forth in the preamble.

 

“Merger
Sub 2” has the meaning set forth in the preamble.

 

“Multiemployer
Plan” has the meaning set forth in Section 3.20(c).

 

“Non-U.S.
Benefit Plan” has the meaning set forth in Section 3.20(a).

 

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

 

“Parent
Indemnitees” has the meaning set forth in Section 8.02.

 

“Payment
Shares” means 1,600,000 shares of Class A common stock of Parent.

 

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

 

    	7

    	 

    

 

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

 

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

 

“Post-Closing
Adjustment” has the meaning set forth in Section 2.15(d).

 

“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.

 

“Post-Closing
Tax Return” has the meaning set forth in Section 6.01(b).

 

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

 

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

 

“Purchase
Price” means the Payment Shares and the Cash Payment.

 

“Qualified
Benefit Plan” has the meaning set forth in Section 3.20(c).

 

“Real
Property” means the real property owned, leased or subleased by the Company, together with all buildings, structures
and facilities located thereon.

 

“Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
structure, facility or fixture).

 

“Representative”
means, with respect to any Person, any and all 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).

 

“Resolution
Period” has the meaning set forth in Error! Reference source not found..

 

“Review
Period” has the meaning set forth in Section 2.15(c)(i).

 

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

 

“Second
Merger Effective Time” has the meaning set forth in Section 2.04(b).

 

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

 

    	8

    	 

    

 

“Statement
of Objections” has the meaning set forth in Section 2.15(c).

 

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

 

“Stockholder
Indemnitees” has the meaning set forth in Section 8.03.

 

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

 

“Straddle
Period” means a Tax period that includes, but does not end on, the Closing Date.

 

“Target
Company Cash” has the meaning set forth in Section 2.15(c)(ii).

 

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

 

“Tax
Claim” has the meaning set forth in Section 6.06.

 

“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 8.05(a).

 

“Transaction
Expenses” means all fees and expenses incurred by the Company and any Affiliate at or prior to the Closing in connection
with the preparation, negotiation and execution of this Agreement, and the performance and consummation of the Merger and the
other transactions contemplated hereby and thereby.

 

“Treasury
Regulations” means the federal income tax regulations promulgated under the Code, as such regulations may be amended
from time to time.

 

“Undisputed
Amounts” has the meaning set forth in Section 2.15(c)(ii).

 

“Union”
has the meaning set forth in Section 3.21(b).

 

“Written
Consent” has the meaning set forth in Section 5.04.

 

    	9

    	 

    

 

Article
II

The
Merger

 

Section
2.01 The Merger. 

 

(a)
The First Merger. On the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL
and the CCC (as applicable), at the Effective Time, Merger Sub 1 will merge with and into the Company and the separate corporate
existence of Merger Sub 1 will cease and the Company will continue its corporate existence under the CCC as the surviving corporation
in the First Merger.

 

(b)
The Second Merger. On the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL
and CCC (as applicable), at the Second Merger Effective Time, the Company will merge with and into Merger Sub 2 and the separate
corporate existence of the Company will cease and Merger Sub 2 will continue its corporate existence under the DGCL as the surviving
corporation in the Second 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 as soon as practicable, but no later than two (2) Business Days after the last of the conditions to Closing set
forth in Article VII have been satisfied or waived (other than conditions which, by their nature, are to be satisfied at
the Closing, but subject to the fulfillment or waiver of those conditions), or at such other time or on such other date or at
such other place as the Company and Parent may mutually agree upon in writing, which may be remotely, via the electronic exchange
of documents (the day on which the Closing actually takes place being the “Closing Date”). All proceedings
to be taken, all documents to be executed and delivered by the parties, and all payments to be made and consideration to be delivered
at the Closing will be deemed to have been taken and executed simultaneously, and, except as permitted hereunder, no proceedings
will be deemed taken nor any documents executed or delivered until all have been taken, executed and delivered.

 

Section
2.03 Closing Deliverables.

 

(a)
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 5.06;

 

(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 7.02(a) and Section 7.02(b) have been satisfied;

 

(iii)
a certificate of the Secretary (or equivalent officer) of the Company certifying that (A) attached thereto are true and complete
copies of (1) all resolutions adopted by the unanimous written consent of the Company Board authorizing the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby and (2) resolutions
adopted by written consent of the Stockholder approving the Merger and adopting this Agreement, and (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;

 

    	10

    	 

    

 

(iv)
a certificate of the Secretary (or equivalent officer) of the Company certifying as to the incumbency and genuineness of the signatures
of the officers of the Company authorized to sign this Agreement, and the other documents to be delivered hereunder and thereunder;

 

(v)
a good standing certificate (or its equivalent), dated within ten (10) days of the Closing Date, from the secretary of state or
similar Governmental Authority of the jurisdiction in which the Company is organized;

 

(vi)
the Closing Transaction Expenses Certificate;

 

(vii)
the Closing Indebtedness Certificate;

 

(viii)
the Consideration Spreadsheet contemplated in Section 2.16(a); and

 

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

 

(b)
At the Closing, Parent shall deliver to the Company (or such other Person as may be specified herein), or as applicable, shall
have performed, each of the following:

 

(i)
pay to the Stockholder, in accordance with the Consideration Spreadsheet, the Closing Merger Consideration payable to the Stockholder;

 

(ii)
issue to the Stockholder a certificate evidencing the Payment Shares (which, for all purposes in this Agreement, may be book-entry
security entitlements representing such shares);

 

(iii)
pay cash in an amount equal to the Transaction Expenses, by wire transfer of immediately available funds, to each of the payees
set forth on the Closing Transaction Expenses Certificate;

 

(iv)
a certificate, dated the Closing Date and signed by a duly authorized officer of Parent, that each of the conditions set forth
in Section 7.03(a) and Section 7.03(b) have been satisfied;

 

(v)
a certificate of the Secretary (or equivalent officer) of each of Parent and Merger Sub certifying that (A) attached thereto are
(1) true and complete copies of all resolutions adopted by the board of directors of each of Parent and Merger Sub authorizing
the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby
and (2) resolutions adopted by the sole stockholder of the Merger Sub approving the Merger and adopting this Agreement and (B)
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;

 

(vi)
a certificate of the Secretary (or equivalent officer) of Parent and Merger Sub certifying as to the incumbency and genuineness
of the signatures of the officers of Parent and Merger Sub authorized to sign this Agreement, and the other documents to be delivered
hereunder and thereunder;

 

    	11

    	 

    

 

(vii)
a good standing certificate (or its equivalent), dated within ten (10) days of the Closing Date, from the secretary of state or
similar Governmental Authority of the jurisdiction in which each of Parent and Merger Sub is organized; and

 

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

 

(c)
At the Closing, the Company will deliver director / officer questionnaires for the individuals requested by Parent.

 

Section
2.04 Effective Time 

 

(a)
Subject to the provisions of this Agreement, as soon as practicable on the Closing Date, Parent shall cause to be filed with the
Secretary of State of the State of Delaware a certificate of merger, in the form agreed to by the parties (the “Certificate
of First Merger”), and executed in accordance with the relevant provisions of the DGCL, and shall make all other filings
or recordings required under the DGCL and the CCC. The First Merger shall become effective at such time as the Certificate of
First 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 Fist Merger in accordance with the DGCL (the effective
time of the First Merger being hereinafter referred to as the “Effective Time”). The Company will issue no
additional securities between the Closing Date and the Effective Time.

 

(b)
Immediately following the Effective Time, the Company, as the surviving corporation in the First Merger, Parent shall cause to
be filed with the Secretary of State of the State of Delaware a certificate of merger, in the form agreed to by the parties (the
“Certificate of Second Merger,” and together the Certificate of First Merger, the “Merger Certificates”),
and executed in accordance with the relevant provisions of the DGCL, and shall make all other filings or recordings required under
the DGCL and the CCC. The Second Merger shall become effective at such time as the Certificate of Second 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 Second Merger in accordance with the DGCL (the effective time of the Second Merger
being hereinafter referred to as the “Second Merger Effective Time”). The Company will issue no additional
securities between the Closing Date and the Second Merger 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 and the CCC. Without limiting the generality of the foregoing, and subject thereto, from and after the Second Merger 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 (as
the surviving corporation in the First Merger) and Merger Sub 2 shall become the debts, liabilities, obligations, restrictions
and duties of the Surviving Corporation.

 

    	12

    	 

    

 

Section
2.06 Certificate of Incorporation; By-laws. 

 

(a)
At the Effective Time, (i) the certificate of incorporation of the Company as in effect immediately prior to the Effective Time
shall be the certificate of incorporation of the surviving corporation in the First Merger, until thereafter amended in accordance
with the terms thereof or as provided by applicable Law, and (ii) the by-laws of the Company as in effect immediately prior to
the Effective Time shall be the by-laws of the surviving corporation in the First Merger until thereafter amended in accordance
with the terms thereof, the certificate of incorporation of the Company or as provided by applicable Law.

 

(b)
At the Second Merger Effective Time, (i) the certificate of incorporation of Merger Sub 2 as in effect immediately prior to the
Second Merger 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 Merger Sub2 as in effect immediately
prior to the Second Merger 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; provided,
however, in each case, that the name of the corporation set forth therein shall be changed to the name of the Company.

 

Section
2.07 Directors and Officers. The directors and officers of Merger Sub 1, in each case, immediately prior to the Effective
Time shall, from and after the Effective Time, be the directors and officers, respectively, of the surviving corporation in the
First Merger. The directors and officers of Merger Sub 2, in each case, immediately prior to the Second Merger Effective Time
shall, from and after the Second Merger Effective Time, be the directors and officers, respectively, of the Surviving Corporation.
Parent and the Surviving Corporation will enter into employment agreements in substantially the forms as contained in Exhibit
A and Exhibit B hereto with the Stockholder and Mr. David Scher, respectively (collectively, the “Employment
Agreements”), whereby, as of the Second Merger Effective Time, the Stockholder will serve as the President of the Surviving
Corporation and Mr. David Scher will serve as Senior Product Manager of the Surviving Corporation. The Surviving Corporation shall
also engage Mana Moarefparvar as an at-will employee. Additionally, on or prior to the Closing Date, Parent’s Board of Directors
will appoint the Stockholder to Parent’s Board of Directors, subject to the completion of an acceptable director / officer
questionnaire and a background check.

 

Section
2.08 Effect of the Merger on Common Stock. At the Effective Time and the Second Merger Effective Time, as applicable, as
a result of the Merger and without any action on the part of Parent, Merger Sub, the Company or the Stockholder:

 

(a)
Cancellation of Certain Company Common Shares. Shares of the Company Common Shares (the “Shares”) that
are owned by Parent, Merger Sub or the Company (as treasury stock or otherwise) or any of their respective direct or indirect
wholly-owned Subsidiaries shall automatically be cancelled and retired and shall cease to exist, and no consideration shall be
delivered in exchange therefor.

 

    	13

    	 

    

 

(b)
Conversion of Company Common Shares. Each Share issued and outstanding immediately prior to the Effective Time or the Second
Effective Time, as applicable) (other than (i) Shares to be cancelled and retired in accordance with Section 2.08(a)),
shall be converted into the right to receive the Closing Per Share Merger Consideration, together with any amounts that may become
payable in the future as provided in this Agreement, such as the remaining portion of the Purchase Price, at the respective times
and subject to the contingencies specified herein and therein.

 

(c)
Conversion of Merger Sub Capital Stock. Each (i) share of common stock, par value $0.0001 per share of Merger Sub 1 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 Company (as the surviving corporation in the First Merger) and (ii) share of common stock, par value
$0.0001 per share of Merger Sub 2 issued and outstanding immediately prior to the Second Merger Effective Time shall be converted
into and become one newly issued, fully paid and non-assessable share of common stock of the Surviving Corporation.

 

Section
2.09 Surrender and Payment.

 

(a)
At the Second Merger Effective Time, all Shares outstanding immediately prior to the Second Merger Effective Time shall automatically
be cancelled and retired and shall cease to exist, and, each holder of a certificate formerly representing any Shares, if any
(each, a “Certificate”), shall cease to have any rights as a stockholder of the Company.

 

(b)
Payment for the Shares shall be made in accordance with Section 2.03(b) at the Closing.

 

Section
2.10 No Further Ownership Rights in Company Common Shares. All Merger Consideration paid 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 a Certificate, if any, and from and after the Second Merger Effective Time, there shall be no further registration of transfers
of Shares on the stock transfer books of the Surviving Corporation. If, after the Second Merger Effective Time, Certificates are
presented to the Surviving Corporation, they shall be cancelled and exchanged for the Merger Consideration provided for, and in
accordance with the procedures set forth, in this Article II and elsewhere in this Agreement.

 

Section
2.11 Adjustments. Without limiting the other provisions of this Agreement, if at any time during the period between the
date of this Agreement and the Second Merger Effective Time, any change in the outstanding shares of capital stock of the Company
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 Merger Consideration and any other
amounts payable pursuant to this Agreement shall be appropriately adjusted to reflect such change.

 

    	14

    	 

    

 

Section
2.12 Acceleration of Cash Payment. If Parent fails to pay any portion of the Cash Payment when due, then, subject to a
forty-five (45) day interest free cure period from such due date, the total amount of the remaining unpaid Cash Payment shall
accelerate and become due immediately, and such amount shall accrue interest at a rate equal to the lesser of 1.5% per month (18%
per annum) and the maximum rate permitted by Law, accruing from the date following the end of such cure period until the date
the total amount of the accelerated Cash Payment and all accrued interest is paid in full.

 

Section
2.13 Withholding Rights. Each of Parent, Merger Sub and the Surviving Corporation shall be entitled to deduct and withhold
from the consideration otherwise payable to any Person pursuant to this Article II such amounts as may be required to be
deducted and withheld with respect to the making of such payment under any provision of Tax Law. To the extent that amounts are
so deducted and withheld by Parent, Merger Sub or the Surviving Corporation, as the case may be, such amounts shall be treated
for all purposes of this Agreement as having been paid to the Person in respect of which Parent, Merger Sub or the Surviving Corporation,
as the case may be, made such deduction and withholding.

 

Section
2.14 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, Parent shall issue, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration
to be paid in respect of the Shares formerly represented by such Certificate as contemplated under this Article II less
any amounts previously paid.

 

Section
2.15 Post-Closing Affairs.

 

(a)
Parent hereby grants to the Stockholder, and the Stockholder shall have, the right through September 30, 2020 (the “Measurement
Date”), to manage the affairs of the Surviving Corporation with respect to (i) the funds held by the Company as of the
Closing, (ii) any funds earned by the Company prior to, but received after, the Closing, (iii) any Indebtedness of the Company
as set forth in the Closing Indebtedness Certificate, which amount shall be the full amount of the Indebtedness of the Company
as of the Measurement Date and (iv) up to $50,000 in the aggregate in all other Indebtedness incurred in the ordinary course of
business by the Surviving Corporation after the Closing. For avoidance of doubt, after the Measurement Date, all management of
financial affairs will vest with the board of directors of the Surviving Corporation.

 

    	15

    	 

    

 

(b)
Post-Closing Adjustment. 

 

(i)
Within three (3) Business Days following the Measurement Date, the Stockholder shall prepare and deliver to Parent (A) a written
determination of Company Cash as of the Measurement Date and the Post-Closing Adjustment (the “Company Cash Statement”),
(B) a Closing Indebtedness Certificate updated as of the Measurement Date and (C) a written determination of the Company Cash,
less outstanding Indebtedness, as of the Measurement Date.

 

(c)
Examination and Review.

 

(i)
Examination and Objection. After receipt of the Company Cash Statement, the Parent shall have ten (10) days (the “Review
Period”) to review and object to the Company Cash Statement by delivering to the Stockholder a written statement setting
forth its objections in reasonable detail, indicating each disputed item or amount and the basis for its disagreement therewith
(the “Statement of Objections”). If Parent fails to deliver the Statement of Objections before the expiration
of the Review Period, the Company Cash Statement and the Post-Closing Adjustment, as the case may be, reflected in the Closing
Cash Statement shall be deemed to have been accepted by Parent. If Parent delivers the Statement of Objections before the expiration
of the Review Period, Parent and the Stockholder shall negotiate in good faith to resolve such objections within fifteen (15)
days after the delivery of the Statement of Objections (the “Resolution Period”), and, if the same are so resolved
within the Resolution Period, the Post-Closing Adjustment and the Company Cash Statement with such changes as may have been previously
agreed in writing by Parent and the Stockholder, shall be final and binding

 

(ii)
Resolution of Disputes. If the Stockholder and Parent fail to reach an agreement with respect to all of the matters set
forth in the Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (“Disputed
Amounts” and any amounts not so disputed, the “Undisputed Amounts”) shall be submitted for resolution
to the office of an impartial nationally recognized firm of independent certified public accountants to be mutually appointed
by Parent and the Stockholder (the “Independent Accountant”) who, acting as experts and not arbitrators, shall
resolve the Disputed Amounts only and make any adjustments to the Post-Closing Adjustment, as the case may be, and the Company
Cash Statement. The parties hereto agree that all adjustments shall be made without regard to materiality. The Independent Accountant
shall only decide the specific items under dispute by the parties and their decision for each Disputed Amount must be within the
range of values assigned to each such item in the Company Cash Statement and the Statement of Objections, respectively.

 

(iii)
Fees of the Independent Accountant. The fees and expenses of the Independent Accountant shall be paid by the Stockholder
(on behalf of the Stockholder, on the one hand, and by Parent, on the other hand, based upon the percentage that the amount actually
contested but not awarded to the Stockholder or Parent, respectively, bears to the aggregate amount actually contested by the
Stockholder and Parent.

 

    	16

    	 

    

 

(iv)
Determination by Independent Accountant. The Independent Accountant shall make a determination as soon as practicable within
thirty (30) days (or such other time as the parties hereto shall agree in writing) after their engagement, and their resolution
of the Disputed Amounts and their adjustments to the Company Cash Statement and/or the Post-Closing Adjustment shall be conclusive
and binding upon the parties hereto.

 

(d)
Payment of Post-Closing Adjustment. If the Company Cash Statement as finally determined pursuant to Section 2.15(c)
above (A) exceeds $50,000 (the “Target Company Cash”), then Parent shall pay to the Stockholder an amount
equal to such excess, within five (5) Business Days, by wire transfer of immediately available funds accordance with the Consideration
Spreadsheet, or (B) is less than the Target Company Cash, then Parent shall deduct an amount equal to such deficiency from the
next applicable Cash Payment (as necessary, the “Post-Closing Adjustment”).

 

(e)
Adjustments for Tax Purposes. Any payments made pursuant to Section 2.15 shall be treated as an adjustment to the
Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

 

Section
2.16 Consideration Spreadsheet.

 

(a)
Prior to the Closing, the Company shall prepare and deliver to Parent a spreadsheet (the “Consideration Spreadsheet”),
which shall set forth, as of the Closing Date and which shall be effective as of the Second Merger Effective Time:

 

(i)
the allocation of the Merger Consideration payable to the Stockholder and the Stockholder’s designees, as set forth in Exhibit
E attached hereto; and

 

(ii)
the names, addresses and wire transfer information of the Stockholder and the Stockholder’s designees pursuant to clause
(i) above; and

 

(iii)
such other information as may reasonably requested by Parent to make payments to the Stockholder under this Article II.

 

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

 

(c)
All payments of Merger Consideration allocated and made to the Stockholder’s designees, as set forth in Exhibit E,
shall be treated for Tax purposes as bonuses paid by the Company to such designees.

 

Section
2.17 Payroll Protection Program Loan. The Company is party to a Payroll Protection Program loan as contained in its Financial
Statements. Stockholder will be personally responsible for seeking any applicable debt forgiveness on such loan and in the event
that such forgiveness is not granted, Stockholder will pay all amounts due under the loan within thirty (30) days of notice by
Parent.

 

    	17

    	 

    

 

Section
2.18 Automobile Insurance. The Company has certain vehicles driven by its employees that are personally insured by such
employees. To the extent those automobiles are insured personally by employees, they agree to make every effort to name Parent
as an additionally insured party.

 

Article
III

Representations
and warranties of the Company and the Stockholder

 

Except
as set forth in the correspondingly numbered Section of the Disclosure Schedules, (i) the Company and (ii) the Stockholder, each
jointly represent and warrant to Parent that the statements contained in this Article III are true and correct as of the
date hereof. For purposes of clarity, where it states to the Knowledge of Company it shall include the Knowledge of the Stockholder
and vice versa.

 

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 California 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 in good standing in each jurisdiction in which it is duly licensed or qualified to do business.

 

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 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 of the Company representing a majority of the outstanding Shares (“Requisite Company Vote”),
to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Company of this
Agreement 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, 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.

 

    	18

    	 

    

 

(b)
The Company Board, by resolutions duly adopted by unanimous written consent of the directors of the Company, 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 Stockholder, (ii) approved and declared advisable
the “agreement of merger” (as such term is used in Section 251 of the DGCL) contained in this Agreement and the transactions
contemplated by this Agreement, including the Merger, in accordance with the DGCL, (iii) directed that the “agreement of
merger” contained in this Agreement be submitted to the Stockholder for adoption, and (iv) resolved to recommend that the
Stockholder adopt the “agreement of merger” set forth in this Agreement (collectively, the “Company Board
Recommendation”) and directed that such matter be submitted for consideration of the Stockholder.

 

Section
3.03 No Conflicts; Consents. The execution, delivery and performance by the Company of this Agreement, 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 Material 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 consummation of the transactions contemplated hereby and
thereby, except for the filing of the Merger Certificates with the Secretary of State of Delaware and/or California 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 100,000 Shares, all of which are issued and outstanding as of the close
of business on the date of this Agreement. The Shares owned by the Stockholder constitute 100% of the issued and outstanding securities
of any type of the Company. There are no other stockholders of the Company except for the Stockholder.

 

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

 

(c)
(i) 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 Shares.

 

(d)
All issued and outstanding shares of Company Common Shares 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 Shares were issued in compliance with applicable Law.

 

(e)
No outstanding Company Common Shares 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.

 

    	20

    	 

    

 

Section
3.06 Financial Statements. Complete copies of the Company’s unaudited financial statements consisting of the balance
sheet of the Company as at December 31 in each of the years 2019 and 2018 and the related statements of income and retained earnings,
stockholders’ equity and cash flow for the years then ended (the “Annual Financial Statements”),
and unaudited financial statements consisting of the balance sheet of the Company as at June 30, 2020 and the related statements
of income and retained earnings, stockholders’ equity and cash flow for the six-month period then ended (the “Interim
Financial Statements” and together with the Annual Financial Statements, the “Financial Statements”)
are included in the Disclosure Schedules. 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 Annual 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, 2019 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 June 30, 2020 is referred to herein as the “Interim
Balance Sheet” and the date thereof as the “Interim Balance Sheet Date”. The Company maintains a
standard system of accounting established and administered in accordance with GAAP. The Company agrees to provide audited Annual
Financial Statements and reviewed Interim Financial Statement within seventy (70) days of the Closing Date. The Company and the
Stockholder represent and warrant that the Financial Statements are accurate and correct to the best of their Knowledge.

 

Section
3.07 Undisclosed Liabilities. 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 Interim Balance Sheet as of the Interim Balance Sheet
Date, (b) those which have been incurred in the ordinary course of business consistent with past practice since the Interim Balance
Sheet Date, and (c) those which are set forth on the Closing Indebtedness Certificate.

 

Section
3.08 Absence of Certain Changes, Events and Conditions. Since the Interim 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)
amendment of the charter, by-laws or other organizational documents of the Company;

 

(c)
split, combination or reclassification of any shares of its capital stock;

 

(d)
issuance, sale or other disposition of any of its capital or grant of any options, warrants or other rights to purchase or obtain
(including upon conversion, exchange or exercise) any of its capital stock;

 

(e)
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;

 

    	21

    	 

    

 

(f)
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;

 

(g)
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;

 

(h)
entry into any Contract that would constitute a Material Contract;

 

(i)
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 and those which are set forth on the Closing Indebtedness
Certificate;

 

(j)
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;

 

(k)
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;

 

(l)
material damage, destruction or loss (whether or not covered by insurance) to its property;

 

(m)
any capital investment in, or any loan to, any other Person;

 

(n)
acceleration, termination, material modification to or cancellation of any material Contract (including, but not limited to, any
Material Contract) to which the Company is a party or by which it is bound;

 

(o)
any material capital expenditures;

 

(p)
imposition of any Encumbrance upon any of the Company properties, capital stock or assets, tangible or intangible;

 

(q)
(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 $500.00, or (iii) action to accelerate the
vesting or payment of any compensation or benefit for any current or former employee, officer, director, independent contractor
or consultant;

 

(r)
hiring or promoting any person as or to (as the case may be) an officer or hiring or promoting any employee below officer except
to fill a vacancy in the ordinary course of business;

 

    	22

    	 

    

 

(s)
adoption, modification or termination of any: (i) employment, severance, retention or other agreement with any current or former
employee, officer, director, independent contractor or consultant, (ii) Benefit Plan or (iii) collective bargaining or other agreement
with a Union, in each case whether written or oral;

 

(t)
any loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its stockholders or current or former
directors, officers and employees;

 

(u)
entry into a new line of business or abandonment or discontinuance of existing lines of business;

 

(v)
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;

 

(w)
purchase, lease or other acquisition of the right to own, use or lease any property or assets for an amount in excess of $1,000,
individually (in the case of a lease, per annum) or $5,000 in the aggregate (in the case of a lease, for the entire term of the
lease, not including any option term), except for purchases of inventory or supplies in the ordinary course of business consistent
with past practice;

 

(x)
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;

 

(y)
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 Parent in respect of any Post-Closing Tax Period; or

 

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

 

Section
3.09 Material Contracts.

 

(a)
Section 3.09(a) of the Disclosure Schedules lists each of the following Contracts of the Company (such Contracts, together
with all Contracts concerning the occupancy, management or operation of any Real Property (including without limitation, brokerage
contracts) listed or otherwise disclosed in Section 3.10(b) of the Disclosure Schedules and all Company IP Agreements set
forth in Section 3.12(b) of the Disclosure Schedules, being “Material Contracts”):

 

(i)
each Contract of the Company involving aggregate consideration in excess of $100,000 and which, in each case, cannot be cancelled
by the Company without penalty or without more than ninety (90) days’ notice;

 

    	23

    	 

    

 

(ii)
all Contracts that require the Company to purchase its total requirements of any product or service from a third party or that
contain “take or pay” provisions;

 

(iii)
all Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax, environmental or
other Liability of any Person;

 

(iv)
all Contracts that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other
Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

 

(v)
all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing
consulting and advertising Contracts to which the Company is a party;

 

(vi)
all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which the Company
is a party and which are not cancellable without material penalty or without more than sixty (60) days’ notice;

 

(vii)
except for Contracts relating to trade receivables, all Contracts relating to indebtedness (including, without limitation, guarantees)
of the Company;

 

(viii)
all Contracts with any Governmental Authority to which the Company is a party (“Government Contracts”);

 

(ix)
all Contracts that limit or purport to limit the ability of the Company to compete in any line of business or with any Person
or in any geographic area or during any period of time;

 

(x)
any Contracts to which the Company is a party that provide for any joint venture, partnership or similar arrangement by the Company;

 

(xi)
all collective bargaining agreements or Contracts with any Union to which the Company is a party; and

 

(xii)
any other Contract that is material to the conduct of the business of the Company and not previously disclosed pursuant to this
Section 3.09.

 

(b)
Each Material 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. No event or circumstance
has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material 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 Material Contract (including all modifications, amendments and supplements
thereto and waivers thereunder) have been made available to Parent.

 

    	24

    	 

    

 

Section
3.10 Title to Assets; Real Property.

 

(a)
The Company has good and valid (and, in the case of owned Real Property, good and marketable fee simple) title to, or a valid
leasehold interest in, all Real Property and assets reflected in the Interim Balance Sheet or acquired thereafter prior to the
execution of this Agreement, other than properties and assets sold or otherwise disposed of in the ordinary course of business
consistent with past practice since the Interim Balance Sheet Date and assets that are not, individually or in the aggregate,
material to the conduct of the business of the Company. All such properties and assets (including leasehold interests) are free
and clear of Encumbrances except for the following (collectively referred to as “Permitted Encumbrances”):

 

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

 

(ii)
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;

 

(iii)
easements, rights of way, zoning ordinances and other similar encumbrances affecting Real Property, which do not materially impair
the occupation or the use of the Real Property for the purposes which it is currently used; or

 

(iv)
other than with respect to owned Real Property, 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.

 

(b)
Section 3.10(b) of the Disclosure Schedules lists each parcel of Real Property describes the current use of such property.
With respect to owned Real Property, the Company has delivered or made available to Parent true, complete and correct copies of
the deeds and other instruments (as recorded) by which the Company acquired such Real Property, and copies of all title insurance
policies, opinions, abstracts and surveys in the possession of the Company and relating to the Real Property. With respect to
leased Real Property, the Company has delivered or made available to Parent true, complete and correct copies of any leases affecting
the Real Property. The Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person
any right to the possession, lease, occupancy or enjoyment of any leased Real Property. There are no Actions pending nor, to the
Company’s Knowledge, threatened against or affecting the Real Property or any portion thereof or interest therein in the
nature or in lieu of condemnation or eminent domain proceedings.

 

    	25

    	 

    

 

Section
3.11 Condition And Sufficiency of Assets. Except as set forth in Section 3.11 of the Disclosure Schedules, the buildings,
plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property of the Company
are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put,
and, to the Company’s Knowledge, none of such buildings, plants, structures, furniture, fixtures, machinery, equipment,
vehicles and other 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. The buildings, plants, structures, furniture, fixtures, machinery, equipment,
vehicles and other items of tangible personal property currently owned or leased by the Company, together with all other properties
and assets of the Company, are sufficient for the continued conduct of the Company’s business after the Closing in substantially
the same manner as conducted prior to the Closing and constitute all of the rights, property and assets necessary to conduct the
business of the Company as currently conducted.

 

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 list 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. 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. Without limiting
the generality of the foregoing, the Company has entered into binding, written agreements with every current and former employee,
and with every current and former independent contractor, whereby such employees and independent contractors (i) assign to the
Company any ownership interest and right they may have in the Company Intellectual Property; and (ii) acknowledge the Company’s
exclusive ownership of all Company Intellectual Property. The Company has provided Parent with true and complete copies of all
such agreements.

 

    	26

    	 

    

 

(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)
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, including requiring all Persons having access thereto to execute written non-disclosure
agreements.

 

(f)
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. No Person has infringed, misappropriated, diluted
or otherwise violated, or is currently infringing, misappropriating, diluting or otherwise violating, any Company Intellectual
Property.

 

(g)
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 [Intentionally Omitted]. 

 

Section
3.14 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 valid, undisputed claims
of the Company not subject to any known rights 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 . 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.

 

    	27

    	 

    

 

Section
3.15 Customers and Suppliers.

 

(a)
Section 3.15(a) of the Disclosure Schedules sets forth (i) each customer who has paid aggregate consideration to the Company
for goods or services rendered in an amount greater than or equal to $50,000 during each of the two (2) most recent fiscal years
(collectively, the “Material Customers”); and (ii) the amount of consideration paid by each Material Customer
during such periods. Except as set forth in Section 3.15(a) of the Disclosure Schedules, the Company has not received any
notice, and, to the Company’s Knowledge, has no reason to believe, that any of its Material 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 3.15(b) of the Disclosure Schedules sets forth (i) each supplier to whom the Company has paid consideration for
goods or services rendered in an amount greater than or equal to $50,000 during each of the two (2) most recent fiscal years (collectively,
the “Material Suppliers”); and (ii) the amount of purchases from each Material Supplier during such periods.
Except as set forth in Section 3.15(b) of the Disclosure Schedules, the Company has not received any notice, and, to the
Company’s Knowledge, has no reason to believe, that any of its Material Suppliers has ceased, or intends to cease, to supply
goods or services to the Company or to otherwise terminate or materially reduce its relationship with the Company.

 

Section
3.16 Insurance. Section 3.16 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. The Insurance Policies do not provide for any retrospective premium adjustment or other experience-based liability on
the part of the Company. All such Insurance Policies (a) are valid and binding in accordance with their terms and (b) have not
been subject to any lapse in coverage. Except as set forth on Section 3.16 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. 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.

 

    	28

    	 

    

 

Section
3.17 Legal Proceedings; Governmental Orders.

 

(a)
Except as set forth in Section 3.17(a) of the Disclosure Schedules, 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. To the Company’s
Knowledge, no event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

 

(b)
Except as set forth in Section 3.17(b) of the Disclosure Schedules, 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. The Company is
in compliance with the terms of each Governmental Order set forth in Section 3.17(b) of the Disclosure Schedules. No event
has occurred or circumstances exist that may constitute or result in (with or without notice or lapse of time) a violation of
any such Governmental Order.

 

Section
3.18 Compliance With Laws; Permits.

 

(a)
Except as set forth in Section 3.18(a) of the Disclosure Schedules, the Company is in compliance, in all material respects,
with all Laws applicable to its business.

 

(b)
All Permits required for the Company to conduct its business have been obtained by it and are valid and in full force and effect.
All fees and charges with respect to such Permits as of the date hereof have been paid in full. Section 3.18(b) of the
Disclosure Schedules lists all current Permits issued to the Company, including the names of the Permits and their respective
dates of issuance and expiration. To the Company’s Knowledge, no event has occurred that, with or without notice or lapse
of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any Permit set forth
in Section 3.18(b) of the Disclosure Schedules.

 

Section
3.19 [Intentionally Omitted].

 

    	29

    	 

    

 

Section
3.20 Employee Benefit Matters.

 

(a)
Section 3.20(a) of the Disclosure Schedules contains a true and complete list of each 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 (and any amendments thereto), in each case whether or not reduced to writing and whether funded or unfunded,
including each “employee benefit plan” within the meaning of Section 3(3) of ERISA, whether or not tax-qualified and
whether or not subject to ERISA, 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 (as listed on Section 3.20(a) of the Disclosure Schedules, each, a “Benefit Plan”).
The Company has separately identified in Section 3.20(a) of the Disclosure Schedules (i) each Benefit Plan that contains
a change in control provision and (ii) each Benefit Plan that is maintained, sponsored, contributed to, or required to be contributed
to by the Company primarily for the benefit of employees outside of the United States (a “Non-U.S. Benefit Plan”)].

 

(b)
With respect to each Benefit Plan, the Company has made available to Parent accurate, current and complete copies of each of the
following: (i) where the Benefit Plan has been reduced to writing, the plan document together with all amendments; (ii) where
the Benefit Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where applicable, copies
of any trust agreements or other funding arrangements, custodial agreements, insurance policies and contracts, administration
agreements and similar agreements, and investment management or investment advisory agreements, now in effect or required in the
future as a result of the transactions contemplated by this Agreement or otherwise; (iv) copies of any summary plan descriptions,
summaries of material modifications, employee handbooks and any other written communications (or a description of any oral communications)
relating to any Benefit Plan; (v) in the case of any Benefit Plan that is intended to be qualified under Section 401(a) of the
Code, a copy of the most recent determination, opinion or advisory letter from the Internal Revenue Service; (vi) in the case
of any Benefit Plan for which a Form 5500 is required to be filed, a copy of the two most recently filed Form 5500, with schedules
and financial statements attached; (vii) actuarial valuations and reports related to any Benefit Plans with respect to the two
most recently completed plan years; (viii) the most recent nondiscrimination tests performed under the Code; and (ix) copies of
material notices, letters or other correspondence from the Internal Revenue Service, Department of Labor, Pension Benefit Guaranty
Corporation or other Governmental Authority relating to the Benefit Plan.

 

    	30

    	 

    

 

(c)
Except as set forth in Section 3.20(c) of the Disclosure Schedules, each Benefit Plan and any related trust (other than
any multiemployer plan within the meaning of Section 3(37) of ERISA (each a “Multiemployer Plan”)) has been
established, administered and maintained in accordance with its terms and in compliance with all applicable Laws (including ERISA,
and the Code, and any applicable local Laws). Each Benefit Plan that is intended to be qualified within the meaning of Section
401(a) of the Code (a “Qualified Benefit Plan”) is so qualified and has received a favorable and current determination
letter from the Internal Revenue Service, or with respect to a prototype plan, can rely on an opinion letter from the Internal
Revenue Service to the prototype plan sponsor, to the effect that such Qualified Benefit Plan is so qualified and that the plan
and the trust related thereto are exempt from federal income taxes under Sections 401(a) and 501(a), respectively, of the Code,
and nothing has occurred that could reasonably be expected to adversely affect the qualified status of any Qualified Benefit Plan.
Nothing has occurred with respect to any Benefit Plan that has subjected or could reasonably be expected to subject the Company
or any of its ERISA Affiliates or, with respect to any period on or after the Closing Date, Parent or any of its Affiliates, to
a penalty under Section 502 of ERISA or to tax or penalty under Section 4975 of the Code. Except as set forth in Section 3.20(c)
of the Disclosure Schedules, all benefits, contributions and premiums relating to each Benefit Plan have been timely paid
in accordance with the terms of such Benefit Plan and all applicable Laws and accounting principles, and all benefits accrued
under any unfunded Benefit Plan have been paid, accrued or otherwise adequately reserved to the extent required by, and in accordance
with, GAAP. All Non-U.S. Benefit Plans that are intended to be funded and/or book-reserved are funded and/or book-reserved, as
appropriate, based upon reasonable actuarial assumptions.

 

(d)
Neither the Company nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly,
any material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to
employee benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any
Benefit Plan; or (iv) engaged in any transaction which would give rise to liability under Section 4069 or Section 4212(c) of ERISA.

 

(e)
With respect to each Benefit Plan (i) no such plan is a Multiemployer Plan/except as set forth in Section 3.20(e) of the
Disclosure Schedules, no such plan is a Multiemployer Plan, and (A) all contributions required to be paid by the Company or its
ERISA Affiliates have been timely paid to the applicable Multiemployer Plan, (B) neither the Company nor any ERISA Affiliate has
incurred any withdrawal liability under Title IV of ERISA which remains unsatisfied, and (C) a complete withdrawal from all such
Multiemployer Plans at the Effective Time would not result in any material liability to the Company; (ii) no such plan is a “multiple
employer plan” within the meaning of Section 413(c) of the Code or a “multiple employer welfare arrangement”
(as defined in Section 3(40) of ERISA); (iii) no Action has been initiated by the Pension Benefit Guaranty Corporation to terminate
any such plan or to appoint a trustee for any such plan; (iv) no such plan is subject to the minimum funding standards of Section
412 of the Code or Title IV of ERISA, and none of the assets of the Company or any ERISA Affiliate is, or may reasonably be expected
to become, the subject of any lien arising under Section 302 of ERISA or Section 412(a) of the Code/ except as set forth in Section
3.20(e) of the Disclosure Schedules, no such plan is subject to the minimum funding standards of Section 412 of the Code or
Title IV of ERISA, and no plan listed in Section 3.20(e) of the Disclosure Schedules has failed to satisfy the minimum
funding standards of Section 302 of ERISA or Section 412 of the Code; and (v) no “reportable event,” as defined in
Section 4043 of ERISA, has occurred with respect to any such plan.

 

    	31

    	 

    

 

(f)
Each Benefit Plan can be amended, terminated or otherwise discontinued after the Closing in accordance with its terms, without
material liabilities to Parent, the Company or any of their Affiliates other than ordinary administrative expenses typically incurred
in a termination event. The Company has no commitment or obligation and has not made any representations to any employee, officer,
director, independent contractor or consultant, whether or not legally binding, to adopt, amend, modify or terminate any Benefit
Plan or any collective bargaining agreement, in connection with the consummation of the transactions contemplated by this Agreement
or otherwise.

 

(g)
Except as set forth in Section 3.20(g) of the Disclosure Schedules and other than as required under Section 601 et. seq.
of ERISA or other applicable Law, no Benefit Plan provides post-termination or retiree welfare benefits to any individual for
any reason, and neither the Company nor any of its ERISA Affiliates has any Liability to provide post-termination or retiree welfare
benefits to any individual or ever represented, promised or contracted to any individual that such individual would be provided
with post-termination or retiree welfare benefits.

 

(h)
Except as set forth in Section 3.20(h) of the Disclosure Schedules, there is no pending or, to the Company’s Knowledge,
threatened Action relating to a Benefit Plan (other than routine claims for benefits), and no Benefit Plan has within the three
(3) years prior to the date hereof been the subject of an examination or audit by a Governmental Authority or the subject of an
application or filing under or is a participant in, an amnesty, voluntary compliance, self-correction or similar program sponsored
by any Governmental Authority.

 

(i)
There has been no amendment to, announcement by the Company or any of its Affiliates relating to, or change in employee participation
or coverage under, any Benefit Plan or collective bargaining agreement that would increase the annual expense of maintaining such
plan above the level of the expense incurred for the most recently completed fiscal year with respect to any director, officer,
employee, independent contractor or consultant, as applicable. Neither the Company nor any of its Affiliates has any commitment
or obligation or has made any representations to any director, officer, employee, independent contractor or consultant, whether
or not legally binding, to adopt, amend, modify or terminate any Benefit Plan or any collective bargaining agreement.

 

(j)
Each Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the operational
and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including notices, rulings and
proposed and final regulations) thereunder. The Company does not have any obligation to gross up, indemnify or otherwise reimburse
any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(k)
Each individual who is classified by the Company as an independent contractor has been properly classified for purposes of participation
and benefit accrual under each Benefit Plan.

 

    	32

    	 

    

 

(l)
Except as set forth in Section 3.20(l) of the Disclosure Schedules, neither the execution of this Agreement nor any of
the transactions contemplated by this Agreement will (either alone or upon the occurrence of any additional or subsequent events):
(i) entitle any current or former director, officer, employee, independent contractor or consultant of the Company to severance
pay or any other payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of compensation due
to any such individual; (iii) limit or restrict the right of the Company to merge, amend or terminate any Benefit Plan; (iv) increase
the amount payable under or result in any other material obligation pursuant to any Benefit Plan; (v) result in “excess
parachute payments” within the meaning of Section 280G(b) of the Code; or (vi) require a “gross-up” or other
payment to any “disqualified individual” within the meaning of Section 280G(c) of the Code.

 

Section
3.21 Employment Matters.

 

(a)
Section 3.21(a) of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or
consultants of the Company as of the Closing, 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; (v) commission, bonus or other incentive-based
compensation; and (vi) a description of the fringe benefits provided to each such individual as of the date hereof. Except as
set forth in Section 3.21(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. Further, the Company and Stockholder represent and warrant that all
employees and consultants have been properly characterized and all taxes related thereto have been fully paid.

 

(b)
Except as set forth in Section 3.21(b) of the Disclosure Schedules, the Company is not, and has not been for the past three
(3) years, a party to, bound by, or negotiating any collective bargaining agreement or other Material Contract with a union, works
council or labor organization (collectively, “Union”), and there is not, and has not been for the past three
(3) years, any Union representing or purporting to represent any employee of the Company, and, to the Company’s Knowledge,
no Union or group of employees is seeking or has sought to organize employees for the purpose of collective bargaining. Except
as set forth in Section 3.21(b) of the Disclosure Schedules, there has never been, nor has there been any threat of, any
strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption or dispute affecting
the Company or any of its employees.

 

    	33

    	 

    

 

(c)
The Company is in compliance with the terms of the collective bargaining agreements and other Material Contracts listed on Section
3.21(b) of the Disclosure Schedules and in material compliance with all applicable Laws pertaining to employment and employment
practices to the extent they relate to employees of the Company, including all Laws relating to labor relations, equal employment
opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability
rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination of employees,
working conditions, meal and break periods, privacy, health and safety, workers’ compensation, leaves of absence and unemployment
insurance. All individuals characterized and treated by the Company as independent contractors or consultants are properly treated
as independent contractors under all applicable Laws. All employees of the Company classified as exempt under the Fair Labor Standards
Act and state and local wage and hour laws are properly classified. Except as set forth in Section 3.21(c), there are no
Actions against the Company pending, or to the Company’s Knowledge, threatened to be brought or filed, by or with any Governmental
Authority or arbitrator in connection with the employment of any current or former applicant, employee, consultant, volunteer,
intern or independent contractor of the Company, including, without limitation, any claim relating to unfair labor practices,
employment discrimination, harassment, retaliation, equal pay, wage and hours or any other employment-related matter arising under
applicable Laws.

 

Section
3.22 Taxes. Except as set forth in Section 3.22 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 respects. All Taxes due and owing by the Company (whether or not shown
on any Tax Return) have been, or will be, timely paid.

 

(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)
No claim has been made by any taxing 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 December 31, 2019 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).

 

    	34

    	 

    

 

(f)
Section 3.22(f) of the Disclosure Schedules sets forth:

 

(i)
the taxable years of the Company as to which the applicable statutes of limitations on the assessment and collection of Taxes
have not expired;

 

(ii)
those years for which examinations by the taxing authorities have been completed; and

 

(iii)
those taxable years for which examinations by taxing authorities are presently being conducted.

 

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

 

(h)
The Company is not a party to any Action by any taxing authority. There are no pending or threatened Actions by any taxing authority.

 

(i)
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 ending
after 2017.

 

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

 

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

 

(l)
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.

 

(m)
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.

 

(n)
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;

 

    	35

    	 

    

 

(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.

 

(o)
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.

 

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

 

(q)
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).

 

(r)
There is currently no limitation on the utilization of net operating losses, capital losses, built-in losses, tax credits or similar
items of the Company under Sections 269, 382, 383, 384 or 1502 of the Code and the Treasury Regulations thereunder (and comparable
provisions of state, local or foreign Law).

 

(s)
Section 3.22(s) of the Disclosure Schedules sets forth all foreign jurisdictions in which the Company is subject to Tax,
is engaged in business or has a permanent establishment. The Company has not entered into a gain recognition agreement pursuant
to Treasury Regulations Section 1.367(a)-8. The Company has not transferred an intangible the transfer of which would be subject
to the rules of Section 367(d) of the Code.

 

(t)
No property owned by the Company is (i) required to be treated as being owned by another person pursuant to the so-called “safe
harbor lease” provisions of former Section 168(f)(8) of the Internal Revenue Code of 1954, as amended, (ii) subject to Section
168(g)(1)(A) of the Code, or (iii) subject to a disqualified leaseback or long-term agreement as defined in Section 467 of the
Code.

 

Section
3.23 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. At the Closing, all of those books
and records will be in the possession of the Company. To the extent required by Law, approval of all material actions or contracts
undertaken by the Company since January 2, 2018 have been accurately described and documented in the minute books.

 

Section
3.24 Related Party Transactions. No executive officer or director of the Company or any person owning 5% 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.

 

    	36

    	 

    

 

Section
3.25 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
3.26 No Other Representations or Warranties. Except for the representations and warranties contained in this Agreement (including
the related portions of the Disclosure Schedules), neither the Company nor any other Person has made or makes any other express
or implied representation or warranty, either written or oral, on behalf of the Company.

 

Section
3.27 Accredited Status. At the time the Stockholder is offered the Payment Shares, the Stockholder is an “accredited
investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended.

 

Section
3.28 Experience of Stockholder. The Stockholder, either alone or together with his representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in and ownership of the Payment Shares, and has so evaluated the merits and risks of such investment and ownership of such securities.
The Stockholder is able to bear the economic risk of an investment in the Payment Shares and, at the present time, is able to
afford a complete loss of the value of such Payment Shares.

 

Section
3.29 General Solicitation. The Stockholder is not, to his Knowledge, purchasing / receiving the Payment Shares as a result
of any advertisement, article, notice or other communication regarding the Payment Shares published in any newspaper, magazine
or similar media or broadcast over television or radio or presented at any seminar or, to the Knowledge of the Stockholder, any
other general solicitation or general advertisement.

 

Section
3.30 Access to Information. The Stockholder acknowledges that he has had the opportunity to review this Agreement (including
all exhibits and schedules thereto) and has been afforded (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of Parent concerning the terms and conditions of the offering of the Payment
Shares and the merits and risks of investing / receiving the Payment Shares; (ii) access to information about Parent and its financial
condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment;
and (iii) the opportunity to obtain such additional information that Parent possesses or can acquire without unreasonable effort
or expense that is necessary to make an informed investment decision with respect to the investment. The Stockholder acknowledges
and agrees that neither Parent, nor any Affiliate of Parent has provided such the Stockholder with any information or advice with
respect to the Payment Shares nor is such information or advice necessary or desired. In connection with the issuance of the Payment
Shares to the Stockholder, neither Parent nor any of its Affiliates has acted as a financial advisor or fiduciary to the Stockholder.

 

    	37

    	 

    

 

Section
3.31 Legend on Payment Shares. The Stockholder understands that there are substantial restrictions on the transferability
of the Payment Shares and that the certificates or book-entry security entitlements representing the Payment Shares shall bear
a restrictive legend in substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED
BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

The
Parent shall be obligated to promptly reissue unlegended certificates upon the request of the Stockholder (x) at such time as
the holding period under Rule 144 or another applicable exemption from the registration requirements of the Securities Act of
1933, as amended, has been satisfied or (y) at such time as a registration statement is available for the transfer of the Payment
Shares.

 

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 to consummate the transactions
contemplated hereby and thereby. The execution, delivery and performance by Parent and Merger Sub of this Agreement 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.

 

    	38

    	 

    

 

Section
4.02 No Conflicts; Consents. The execution, delivery and performance by Parent and Merger Sub of this Agreement, 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) 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, except for the filing of the Merger Certificates with the Secretary of State of Delaware and/or California 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.

 

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; Solvency. Parent has sufficient cash on hand or other sources of immediately available funds to
enable it to make payment of the Purchase Price and consummate the transactions contemplated by this Agreement. As of the date
of this Agreement and immediately prior to the Closing, Parent is able to pay its current debts and obligations in the ordinary
course of business as they become due. Immediately after giving effect to transactions contemplated hereby, Parent and the Surviving
Corporation shall be able to pay their debts and obligations in the ordinary course of business as they become due. In consummating
the transactions contemplated hereby, Parent does not intend to hinder, delay or defraud any present or future creditors of Parent,
Merger Sub, the Company, or the Surviving Corporation.

 

    	39

    	 

    

 

Section
4.06 Legal Proceedings. Except with respect to any Actions which could not result in a Materially Adverse Effect, 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 (a) affecting any of its properties or assets or (b) 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.

 

Section
4.07 Independent Investigation. Parent and Merger Sub have conducted their own independent investigation, review and analysis
of the business, results of operations, prospects, condition (financial or otherwise) or assets of the Company, and acknowledges
that they have been provided adequate access to the personnel, properties, assets, premises, books and records and other documents
and data of the Company for such purpose. Parent and Merger Sub acknowledge and agree that (a) in making their decision to enter
into this Agreement and any ancillary documents and to consummate the transactions contemplated hereby and thereby, Parent and
Merger Sub have relied solely upon their own investigation and the representations and warranties of the Company set forth in
this Agreement (including the related portions of the Disclosure Schedules), and (b) neither the Company nor any other Person
has made any representation or warranty as to the Company or this Agreement, except as expressly set forth in this Agreement (including
the related portions of the Disclosure Schedules).

 

Article
V

Covenants

 

Section
5.01 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; and (y) use reasonable
best efforts to maintain and preserve intact the current organization, business and franchise of the Company and to preserve the
rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business
relationships with the Company. Without limiting the foregoing, from the date hereof until the Closing Date, the Company shall:

 

(a)
preserve and maintain all of its Permits;

 

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

 

(c)
maintain the properties and 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;

 

    	40

    	 

    

 

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

 

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

 

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

 

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

 

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

 

(i)
not take or permit any action that would cause any of the changes, events or conditions described in Section 3.08 to occur
except to convert the Company from a subchapter S corporation to a C corporation in conjunction with the Merger.

 

Section
5.02 Access to Information.

 

(a)
From the date hereof until the Closing, the Company shall (a) afford Parent and its Representatives full and free access to and
the right to inspect all of the Real Property, properties, assets, premises, books and records, Contracts and other documents
and data related 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. Any investigation pursuant to this Section 5.02
shall be conducted in such manner as not to interfere unreasonably with the conduct of the business 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)
Each of Parent, Merger Sub and the Company covenants that until such time as the transactions contemplated by this Agreement are
publicly disclosed by Parent, such party will maintain the confidentiality of the existence and terms of this transaction and
the confidential information learned during the course of the negotiation of the transactions contemplated hereby.

 

Section
5.03 No Solicitation of Other Bids.

 

(a)
The Company shall not, and shall not authorize or permit any of its Affiliates or any of its or their Representatives to, directly
or indirectly, (i) encourage, solicit, initiate, facilitate or continue inquiries regarding an Acquisition Proposal; (ii) enter
into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal; or
(iii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal. The Company shall
immediately cease and cause to be terminated, and shall cause its Affiliates and all of its and their Representatives to immediately
cease and cause to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect
to, or that could lead to, an Acquisition Proposal. For purposes hereof, “Acquisition Proposal” shall mean
any inquiry, proposal or offer from any Person (other than Parent or any of its Affiliates) concerning (i) a merger, consolidation,
liquidation, recapitalization, share exchange or other business combination transaction involving the Company; (ii) the issuance
or acquisition of shares of capital stock or other equity securities of the Company; or (iii) the sale, lease, exchange or other
disposition of any significant portion of the Company’s properties or assets.

 

    	41

    	 

    

 

(b)
In addition to the other obligations under this Section 5.03, the Company shall promptly (and in any event within one (1)
Business Day after receipt thereof by the Company or its Representatives) advise Parent orally and in writing of any Acquisition
Proposal, any request for information with respect to any Acquisition Proposal, or any inquiry with respect to or which could
reasonably be expected to result in an Acquisition Proposal, the material terms and conditions of such request, Acquisition Proposal
or inquiry, and the identity of the Person making the same.

 

(c)
The Company agrees that the rights and remedies for noncompliance with this Section 5.03 shall include having such provision
specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened
breach shall cause irreparable injury to Parent and that money damages would not provide an adequate remedy to Parent.

 

Section
5.04 Stockholder Consent. The Company will complete and have executed, the Requisite Company Vote pursuant to a written consent
of the Stockholder (the “Written Consent”).

 

Section
5.05 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 7.02 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

 

(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
3.17 or that relates to the consummation of the transactions contemplated by this Agreement.

 

    	42

    	 

    

 

(b)
Parent’s receipt of information pursuant to this Section 5.05 shall not operate as a waiver or otherwise affect any
representation, warranty or agreement given or made by the Company in this Agreement (including Section 8.02 and Section
9.01(b)) and shall not be deemed to amend or supplement the Disclosure Schedules.

 

Section
5.06 Resignations. The Company shall deliver to Parent written resignations, effective as of the Closing Date, of the officers
and directors of the Company set forth on Section 5.06 of the Disclosure Schedules on the Closing Date other than the Stockholder’s
continued service as the Company’s President subsequent to the Closing Date.1

 

Section
5.07 Governmental Approvals and 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. 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 of the Disclosure Schedules.

 

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

 

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

 

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

 

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

 

1
NTD: To be confirmed.

 

    	43

    	 

    

 

(d)
All analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings, arguments, and proposals made by
or on behalf of either party before any Governmental Authority or the staff or regulators of any Governmental Authority, in connection
with the transactions contemplated hereunder (but, for the avoidance of doubt, not including any interactions between the Company
and Governmental Authorities in the ordinary course of business, any disclosure which is not permitted by Law or any disclosure
containing confidential information) shall be disclosed to the other party hereunder in advance of any filing, submission or attendance,
it being the intent that the parties will consult and cooperate with one another, and consider in good faith the views of one
another, in connection with any such analyses, appearances, meetings, discussions, presentations, memoranda, briefs, filings,
arguments, and proposals. Each party shall give notice to the other party with respect to any meeting, discussion, appearance
or contact with any Governmental Authority or the staff or regulators of any Governmental Authority, with such notice being sufficient
to provide the other party with the opportunity to attend and participate in such meeting, discussion, appearance or contact.

 

(e)
Notwithstanding the foregoing, nothing in this Section 5.07 shall require, or be construed to require, Parent or any of
its Affiliates to agree to (i) sell, hold, divest, discontinue or limit, before or after the Closing Date, any assets, businesses
or interests of Parent, the Company or any of their respective Affiliates; (ii) any conditions relating to, or changes or restrictions
in, the operations of any such assets, businesses or interests which, in either case, could reasonably be expected to result in
a Material Adverse Effect or materially and adversely impact the economic or business benefits to Parent of the transactions contemplated
by this Agreement; or (iii) any material modification or waiver of the terms and conditions of this Agreement.

 

Section
5.08 Reserved.

 

Section
5.09 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 VII hereof.

 

Section
5.10 Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements (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
5.11 Further Assurances. At and after the Second Merger 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.

 

    	44

    	 

    

 

Section
5.12 [Intentionally Omitted].

 

Section
5.13 Non-Compete Agreements. Except for providing services to the Surviving Corporation or Parent, for a period of
five (5) years from the Closing, the Stockholder agrees not to (i) be employed by, or render services to, any person, firm or
entity of any type engaged directly or indirectly in the business of in-person or virtual investor conferences (a “Competitive
Business”), (ii) own, manage, operate, control, assist, consult, advise or participate in the ownership, management,
operation or control of any Competitive Business, or otherwise engage in any Competitive Business for the Stockholder’s
own account as an individual, partner, shareholder, creditor, director, officer, principal, agent, employee, trustee, consultant,
advisor or in any other relationship or capacity. Notwithstanding the foregoing, this Section 5.13 shall not preclude the
Stockholder from investing his personal assets in the securities of any corporation or other business entity which is engaged
in a Competitive Business if such securities are traded on a national stock exchange, through an automated inter-dealer quotation
system or in the over-the-counter-market and if such investment does not result in the Executive beneficially owning, at any time,
more than 2% of the class of publicly-traded equity securities of such Competitive Business. Notwithstanding the foregoing, in
the event Parent fails to make a Cash Payment when due and such failure remains uncured pursuant to Section 2.12 for a
period of one hundred eighty (180) days following such due date, the Stockholder shall be released from any and all restrictions
imposed under this Section 5.13 and the provisions of this Section 5.13 shall be null and void.

 

Section
5.14 Rollover of 401(k) Plan Accounts. Parent shall allow the rollover of the Stockholder’s and Mana Moarefparvar’s
accounts under the Company’s 401(k) plan into Parent’s individual retirement account plan or to any third party administrator
selected by the Stockholder and Mana Moarefparvar.

 

Section
5.15 Other Matters. Following the Closing, Parent and the Surviving Corporation shall cooperate with the Stockholder as reasonably
necessary to effectuate the assignment from the Company to the Stockholder of the rights in and to the trademarks set forth in
Section 5.15 of the Disclosure Schedules (the “Excluded Trademarks”).

 

Section
5.16 Other Matters. Following the Closing, Parent shall pay, or cause to be paid, to the Stockholder, any and all funds received
by the Surviving Corporation in connection with The Fortune Film Fund II, LLC.

 

    	45

    	 

    

 

Article
VI

Tax matters

 

Section
6.01 Tax Covenants.

 

(a)
Parent, the Company, its Representatives and the Stockholder agree that, for federal income tax purposes, the First Merger and
the Second Merger should be treated together as one integrated transaction that is a “reorganization” within the meaning
of Code Section 368(a)(2)(D) (the “Intended Tax Treatment”). Parent or its affiliates (including the Merger
Sub) shall not make or permit to be made any election under Section 388 or Section 336 of the Code or any similar provision of
state, local, or non-U.S. Tax law with respect to any transactions contemplated herein. Notwithstanding anything to the contrary
contained in this Agreement, the covenant contained in this Section shall survive the Closing indefinitely. None of Parent, the
Company, the Merger Sub or the Stockholder shall take any actions, including taking any position on any Tax Return or other similar
document, or take any other Tax reporting position for federal, state and local income Tax purposes, inconsistent with the Intended
Tax Treatment; provided, however, that after reasonable written notice and consultation with the other parties, a party may settle
any audit or other claim initiated by a Taxing authority concerning the Intended Tax Treatment that does not result in a taxable
exchange by the Stockholder otherwise intended to be tax-free pursuant to Section 354 of the Code. In the event of an audit or
claim that any exchange by the Stockholder does not qualify as a tax-free exchange pursuant to Section 354 of the Code, the Stockholder
shall have the right to assume the defense of such claim, at the Stockholder’s expense.

 

(b)
The parties agree that the Company shall cease to exist and thus its final taxable year shall end on the date of the First Merger.
The Stockholder shall timely prepare and file (or cause to be timely prepared and filed) the final S Corporation Tax Returns for
the Company required to be filed after the Closing Date (each, a “Post-Closing Tax Return”). All Post-Closing
Tax Returns shall be prepared in accordance with past practice of the Company except as otherwise required by applicable Law.
The Stockholder shall timely pay (or cause to be paid) all Taxes shown to be due and payable on all Post-Closing Tax Returns.
The Stockholder shall provide Parent with copies of all such Post-Closing Tax Returns at least twenty (20) days prior to the due
date thereof (giving effect to any extensions thereto) and shall consider in good faith any written comments provided by Parent
with respect to such Post-Closing Tax Return.

 

(c)
For purposes of allocating Taxes payable for a Straddle Period, the portion of such Taxes relating to the Pre-Closing Tax Period
portion thereof shall: (i) in the case of all Taxes not based upon or related to income or receipts, be equal to the amount of
such Tax for the entire Straddle Period, multiplied by a fraction, the numerator of which is the number of days in the portion
of the Straddle Period ending on and including the Closing Date, and the denominator of which is the number of days in the entire
Straddle Period, and (ii) in the case of any Tax based upon or related to income or receipts be equal to the amount payable if
the relevant Straddle Period ended on and including the Closing Date.

 

    	46

    	 

    

 

(d)
Without the prior written consent of Parent, prior to the Closing, the Company, its Representatives and the Stockholder 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 Stockholder. The
Stockholder shall indemnify and hold harmless Parent against any such Tax or reduction of any Tax asset.

 

(e)
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 (including any real property transfer Tax and any other similar Tax)
shall be borne and paid by the Stockholder when due. The Stockholder 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
6.02 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
6.03 Tax Indemnification. Subject to the applicable conditions and limitations set forth herein, the Stockholder shall indemnify
the Company, Parent, 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 3.22; (b) any Loss attributable to any breach or violation
of, or failure to fully perform, any covenant, agreement, undertaking or obligation in Article VI; (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; and (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 before the Closing Date. 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 Stockholder shall reimburse Parent for any Taxes of the Company that are the responsibility of the Stockholder
pursuant to this Section 6.03 within ten Business Days after payment of such Taxes by Parent or the Company.

 

    	47

    	 

    

 

Section
6.04 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 relate to the Pre-Closing Tax Period and are due after 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).

 

Section
6.05 [Intentionally Omitted].

 

Section
6.06 Contests. Parent agrees to give written notice to the Stockholder 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 VI (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; provided, however, that Parent shall obtain the prior written consent
of the Stockholder (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 the Stockholder 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 the Stockholder.

 

Section
6.07 Cooperation and Exchange of Information. The Stockholder, the Company 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 VI
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 the Stockholder, the Company 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. Prior to transferring, destroying or
discarding any 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, the Stockholder, the Company or Parent (as the case may
be) shall provide the other parties with reasonable written notice and offer the other parties the opportunity to take custody
of such materials.

 

    	48

    	 

    

 

Section
6.08 Tax Treatment of Indemnification Payments. Any indemnification payments pursuant to this Article VI shall be treated
as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

 

Section
6.09 Payments to Parent. Any amounts payable to Parent pursuant to this Article VI shall be satisfied: (i) from a reduction
in the final Cash Payment.

 

Section
6.10 Limitations on Tax Indemnification The indemnification provided for in Section 6.03 shall be subject to the following
limitation:

 

(a)
The Stockholder shall not be required to indemnify any Persons in respect of any Losses for which indemnification is claimed under
Section 6.03 unless and until the aggregate amount of all Losses in respect of indemnification under Section 6.03 and
Article VIII exceeds $100,000, in which event the Stockholder shall be required to indemnify such Persons for all such Losses
from the first dollar. The aggregate amount of all Losses for which the Stockholder shall be liable pursuant to Section 6.03
and Article VIII shall not exceed $1,000,000.

 

Section
6.11 Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of Section 3.22 and this
Article VI shall survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation
or extension thereof) plus 60 days.

 

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

 

Article
VII

Conditions
to closing

 

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

 

(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.

 

    	49

    	 

    

 

(d)
The Company shall have received all consents, authorizations, orders and approvals from the Governmental Authorities referred
to in Section 3.02 and Parent shall have received all consents, authorizations, orders and approvals from the Governmental
Authorities 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.

 

Section
7.02 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 3.25, the representations and warranties of the Company contained in this Agreement,
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 3.25 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 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.

 

    	50

    	 

    

 

(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 Stockholder, Mr. David Scher and Mr. Wade Hickok shall have executed and delivered to Parent the lock-up agreement in the
form of Exhibit C, attached hereto.

 

(h)
The Stockholder shall have executed and delivered to Parent the voting agreement in the form of Exhibit D, attached hereto.

 

Section
7.03 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, 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 to be performed or complied with by them prior to or on the Closing Date.

 

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

 

(d)
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.

 

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

 

    	51

    	 

    

 

Article
VIII

Indemnification

 

Section
8.01 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 3.22 which are subject to Article VI)
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 3.20, Section 3.25 and Section 4.01 through Section 4.04 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 VI which are
subject to Article VI) shall survive the Closing until they are fully performed in accordance with their own terms 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.

 

Section
8.02 Indemnification By Stockholder. From and after the Closing, and subject to the applicable conditions and limitations
set forth herein, the Stockholder shall indemnify and defend each of Parent and its Affiliates (including 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 (other than
in respect of Section 3.22, it being understood that the sole remedy for any such inaccuracy in or breach thereof shall
be pursuant to Article VI);

 

(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
VI, it being understood that the sole remedy for any such breach, violation or failure shall be pursuant to Article VI);

 

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

 

(d)
any Transaction Expenses or Indebtedness of the Company outstanding as of the Closing to the extent not paid or satisfied by the
Company at or prior to the Closing, or if paid by Parent or Merger Sub at or prior to the Closing, to the extent not deducted
in the determination of Closing Merger Consideration.

 

    	52

    	 

    

 

Section
8.03 Indemnification By Parent. From and after the Closing, and subject to the applicable conditions and limitations set forth
herein, Parent shall indemnify and defend the Stockholder and his 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

 

(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 VI, it being understood that the sole remedy for any such breach thereof shall be pursuant
to Article VI).

 

Section
8.04 Certain Limitations. The indemnification provided for in Section 8.02, Section 8.03 or Section 6.03
shall be subject to the following limitation:

 

(a)
None of the parties to this Agreement shall be required to indemnify any other party with respect of any Losses for which indemnification
is claimed under Section 8.02, Section 8.03 or Section 6.03 unless and until the aggregate amount of all Losses incurred
by the party seeking indemnification under Section 8.02, Section 8.03 or Section 6.03 exceeds either (i) $100,000, or (ii)
$25,000 prior to the one (1) year anniversary date of the Closing with respect to any indemnification claim as a result of breaches
of Sections 3.21 and 3.22(b), in which event the indemnifying party shall be required to indemnify the party seeking indemnification
for all such Losses from the first dollar. The aggregate amount of all Losses for which the Stockholder or the Parent (including
Merger Sub) shall be liable pursuant to Section 8.02, Section 8.03 or Section 6.03, as the case may be, shall not exceed
$400,000.

 

Section
8.05 Indemnification Procedures. The party making a claim under this Article VIII is referred to as the “Indemnified
Party”, and the party against whom such claims are asserted under this Article VIII is referred to as the “Indemnifying
Party”. For purposes of this Article VIII, (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 the Stockholder, and (ii) if Parent comprises the Indemnifying Party, any references to the Indemnified Party shall be
deemed to refer to the Stockholder.

 

    	53

    	 

    

 

(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 the 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 8.05(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 8.05(b), pay, compromise, defend such Third Party Claim and seek indemnification
for any and all Losses based upon, arising from or relating to such Third Party Claim. The Stockholder 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.

 

    	54

    	 

    

 

(b)
Settlement of Third Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not
enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided
in this Section 8.05(b). If a firm offer is made to settle a Third Party Claim without leading to liability or the creation
of a financial or other obligation 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 8.05(a), it shall not agree to any settlement without the written consent of the Indemnifying Party
(which consent shall not be unreasonably withheld or delayed).

 

(c)
Direct Claims. Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a
“Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt
written notice thereof, 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.

 

    	55

    	 

    

 

(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 3.22 hereof or any breach or violation of or failure to fully perform any covenant, agreement,
undertaking or obligation in Article VI) shall be governed exclusively by Article VI hereof.

 

Section
8.06 Payments.

 

(a)
Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable pursuant to this Article VIII,
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. 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 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 VIII or Section 6.03 shall be satisfied from a reduction
in the final payment of the Cash Payment.

 

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

 

Section
8.08 Effect of Investigation. No party shall not be liable under this Article VIII or Section 6.03 with respect
to any Losses arising out of matters known, or that should have been known to the party seeking indemnification, at the Closing
Date.

 

Section
8.09 Exclusive Remedies. Subject to Section 10.11, the parties acknowledge and agree that their sole and exclusive
remedy with respect to any and all claims (other than claims arising from fraud, 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 VI and this Article VIII. 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
VI and this Article VIII. Nothing in this Section 8.09 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.

 

    	56

    	 

    

 

Article
IX

Termination

 

Section
9.01 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 VII 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 7.01 or Section 7.02 shall not have been, or if it becomes apparent that
any of such conditions will not be, fulfilled within two (2) days after the execution of this Agreement, 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 the Company by written notice to Parent if:

 

(i)
the Company is not then in material breach of any provision of this Agreement and there has been a breach, inaccuracy in or failure
to perform any representation, warranty, covenant or agreement made by Parent or Merger Sub pursuant to this Agreement that would
give rise to the failure of any of the conditions specified in Article VII and such breach, inaccuracy or failure has not
been cured by Parent or Merger Sub within ten (10) days of Parent’s or Merger Sub’s receipt of written notice of such
breach from the Company; or

 

(ii)
any of the conditions set forth in Section 7.01 or Section 7.03 shall not have been, or if it becomes apparent that
any of such conditions will not be, fulfilled within two (2) days after the execution of this Agreement, unless such failure shall
be due to the failure of the Company to perform or comply with any of the covenants, agreements or conditions hereof to be performed
or complied with by it prior to the Closing; or

 

(d)
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.

 

    	57

    	 

    

 

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

 

(a)
as set forth in this Article IX, Section 5.02(b) and Article X hereof; and

 

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

 

Article
X

Miscellaneous

 

Section
10.01 Expenses. Except 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
10.02 Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing
and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by
the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail
of a PDF or WORD 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 (3rd) 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 10.02):

 

	If
    to the Company prior to the Closing:	 	LD
        Micro, Inc.

        11040
        Bollinger Canyon Rd., Suite E-405

        San
        Ramon, California 94582

        Facsimile:N/A

        E-mail:

        Attention:
        Christopher Lahiji, President

	 	 	 
	with
    a copy to:	 	Mitchell
        Silberberg & Knupp LLP

        Facsimile:
        (310) 231-8302

        E-mail:

        Attention:
        .

 

    	58

    	 

    

 

	If
    to Parent or Merger Sub (or the Surviving Corporation after the Closing):	 	SRAX,
        Inc.

        456
        Seaton Street

        Los
        Angeles CA 90013

        Facsimile:
        N/A

        E-mail:

        Attention:

	 	 	 
	with
    a copy to:	 	Silvestre
        Law Group, P.C.

        2629
        Townsgate Rd. #215

        Westlake
        Village, CA 91361

        Facsimile:
        (805) 553-9783

        E-mail:

        Attention:

	 	 	 
	If
    to the Stockholder:	 	Christopher
        Lahiji

        LD
        Micro, Inc.

        11040
        Bollinger Canyon Rd., Suite E-405

        San
        Ramon, California 94582

        Facsimile:N/A

        E-mail:

	 	 	 
	with
    a copy to: 	 	Mitchell
        Silberberg & Knupp LLP

        Facsimile:(310)
        231-8302

        E-mail:

        Attention:
        .

 

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

 

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

 

    	59

    	 

    

 

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

 

Section
10.06 Entire Agreement. This Agreement con 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, 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
10.07 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. 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
10.08 No Third-party Beneficiaries. Except as provided in Section 6.03 and Article VIII, this Agreement is for
the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied,
is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.

 

Section
10.09 Amendment and Modification; Waiver. This Agreement may only be amended, 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 Stockholder, 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.

 

    	60

    	 

    

 

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

 

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

 

(b)
ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, 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 CALIFORNIA IN EACH CASE
LOCATED IN THE CITY OF LOS ANGELES AND COUNTY OF LOS ANGELES, 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 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, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY
HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.10(c).

 

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

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

    	61

    	 

    

 

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.

 

	 	The
    Company:
	 	 
	 	LD
    MICRO, INC.
	 	 	 
	 	By	/S/
    Christopher Lahiji
	 	Name:	Christopher
    Lahiji
	 	Title:	President

 

	 	Parent:
	 	 
	 	SRAX,
    INC.
	 	 	 
	 	By	/S/
    Christopher Miglino
	 	Name:	Christopher
    Miglino
	 	Title:	CEO

 

	 	Merger
    Sub 1:
	 	 
	 	TOWNSGATE
    MERGER SUB 1, INC.
	 	 	 
	 	By	/S/
    Christopher Miglino
	 	Name:	Christopher
    Miglino
	 	Title:	CEO

 

	 	Merger
    Sub 2:
	 	 
	 	LD
    MICRO, INC.
	 	 	 
	 	By	/S/
    Christopher Miglino
	 	Name:	Christopher
    Miglino
	 	Title:	CEO

 

	 	The
    Stockholder:
	 	 
	 	/s/
    Christopher Lahiji
	 	Christopher
    Lahiji, as the sole stockholder of the Company

 

    	 

    	 

    

 

Exhibit
A

 

Form
of the Stockholder’s Employment Agreement

 

    	 

    	 

    

 

Exhibit
B

 

Form
of David Scher’s Employment Agreement 

 

    	 

    	 

    

 

Exhibit
C

 

Form
of Lock-Up Agreement

 

    	 

    	 

    

 

Exhibit
D

 

Form
of Voting Agreement

 

    	 

    	 

    

 

Exhibit
E

 

Merger
Consideration Allocation Schedule

 

[REDACTED]

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