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UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of
earliest event reported): July 31, 2024 (July 25, 2024)
Innovative Payment Solutions, Inc.
(Exact name of registrant
as specified in charter)
Nevada
(State or other jurisdiction
of incorporation)
| 000-55648 |
|
33-1230229 |
| (Commission File Number) |
|
(IRS Employer
Identification No.) |
56B 5th Street, Lot 1, #AT
Carmel by the Sea,
CA 93921
(Address of principal
executive offices)
(866) 477-4729
(Registrant’s telephone
number, including area code)
N/A
(Former Name and Former
Address)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following
provisions:
| ☒ | Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to
Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered
pursuant to Section 12(b) of the Act: None
Indicate by check mark
whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐
Emerging growth company
If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
1.01 Entry Into a Material Definitive Agreement.
Merger Agreement with Business Warrior
Overview
On
July 28, 2024, Innovative Payment Solutions, Inc., a Nevada corporation (“IPSI”), entered into an Agreement and Plan
of Merger (the “Merger Agreement”), by and among IPSI, IPSI Merger Sub, Inc., a Delaware corporation and a newly formed,
wholly-owned subsidiary of IPSI (“Merger Sub”) and Business Warrior Corporation, a Wyoming corporation (“Business
Warrior”).
Pursuant
to the Merger Agreement, subject to the terms and conditions set forth therein, at the closing of the transactions contemplated by the
Merger Agreement (the “Closing”), Merger Sub will merge with and into Business Warrior (the “Merger”
and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”), with Business
Warrior continuing as the surviving Wyoming corporation in the Merger and a wholly-owned subsidiary of IPSI.
Subject
to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”):
(i) each outstanding share of common stock, par value $0.0001 per share, of Business Warrior (“Business Warrior Common Stock”),
other than treasury shares and shares as to which appraisal rights have been exercised, will be automatically converted into the right
to receive a number of shares of common stock, par value $0.0001 per share, of IPSI (“IPSI Common Stock”) equal to
the Applicable Per Share Portion (as defined in the Merger Agreement) of the Merger Consideration (as defined below), (ii) each outstanding
share of preferred stock of Business Warrior (“Business Warrior Preferred Stock”), other than treasury shares and shares
as to which appraisal rights have been exercised, will be automatically converted into the right to receive a number of shares of IPSI
Common Stock equal to the Applicable Per Share Portion (as defined in the Merger Agreement) of the Merger Consideration (as defined below)
had such share of Business Warrior Preferred Stock been converted into shares of Business Warrior Common Stock immediately prior to the
Effective Time and (iii) any other options, warrants or rights to subscribe for or purchase any capital stock of Business Warrior or securities
convertible into or exchangeable for, or that otherwise confer on the holder any right to acquire any capital stock of Business Warrior,
if not exercised or converted prior to the Effective Time, shall be cancelled, retired and terminated.
Merger Consideration
Pursuant to the terms of the
Merger Agreement, the consideration to be delivered to the holders of Business Warrior Common Stock and Business Warrior Preferred Stock
in connection with the Merger (the “Merger Consideration") will be a number of newly issued shares of IPSI Common Stock
representing forty-five percent (45%) of the IPSI Common Stock outstanding immediately following the Closing, and after giving effect
to the conversion, exercise or cancellation of the Business Warrior Preferred Stock and other Business Warrior securities referred to
above.
Representations and Warranties
The Merger Agreement contains
representations and warranties of each of IPSI, Merger Sub and Business Warrior that are customary for similar transactions and that include
certain qualifications and customary exceptions, as applicable. Additionally, many of the representations and warranties are qualified
by specified exceptions or qualifications contained in the Merger Agreement, by information provided pursuant to certain disclosure schedules
to the Merger Agreement, or by reference to materiality, Material Adverse Effect, or similar qualifiers. “Material Adverse Effect”
as used in the Merger Agreement means with respect to IPSI or Business Warrior, any change or effect that is or would reasonably be expected
to be materially adverse to (i) the business, operations, results of operations or financial condition of such or Business Warrior, as
applicable, and its subsidiaries taken as a whole or (ii) the ability of IPSI or Business Warrior to timely consummate the Transactions.
No Survival or Indemnification
None of the party’s
representations, warranties or pre-Closing covenants will survive Closing and no party has any post-Closing indemnification obligations.
Covenants of the Parties
The Merger Agreement includes
customary covenants of the parties with respect to, among others things, (i) operation of their respective businesses prior to consummation
of the Merger and efforts to satisfy conditions to consummation of the Merger, (ii) access to information, (iii) cooperation in the preparation
of the registration statement on Form S-4 (as may be amended or supplemented from time to time, the “Registration Statement”)
which IPSI is expected to file with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Merger
and the Transactions, (iv) use of reasonable best efforts to obtain regulatory approvals, (v) notification of the other party of certain
breaches, (vi) Section 16 matters, (vii) indemnification of directors and officers and tail insurance and (viii) obtaining all requisite
approvals of each party’s respective stockholders. Additionally, Business Warrior has agreed not to solicit or enter into a competing
alternative transaction (an “Alternative Transactions”), subject to the fiduciary duties of the board of directors
Business Warrior, in accordance with customary terms and provisions set forth in the Merger Agreement.
The parties agreed to take
all necessary actions to cause IPSI’s board of directors immediately after Closing to consist of five directors, including: (i)
two persons who are designated by IPSI prior to Closing, (ii) two persons who are designated by Business Warrior prior to Closing
and (iii) one person mutually agreed upon by IPSI and Business Warrior.
Conditions to Consummation
of the Merger; Convertible Note Exchange
Each party’s obligation
to consummate the Merger is conditioned upon, among other things: (i) approval by IPSI stockholders of the amendment to its certificate
of incorporation (“IPSI Stockholder Approval”), (ii) approval by Business Warrior stockholders of the Merger and related
transactions and matters (“Business Warrior Stockholder Approval”), (iii) the expiration or termination of any applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and all other requisite regulatory approval,
(iv) the absence of any applicable law or order that makes illegal, or prohibits or prevents, the Transactions and (v) the Registration
Statement having become effective in accordance with the provisions of the Securities Act of 1933, as amended (“Securities Act”).
In addition, each party’s
obligation to consummate the Merger is conditioned upon the following agreements being in full force and effect: (i) exchange agreements,
to be entered into by and among IPSI, Business Warrior and each holder of the outstanding convertible notes of IPSI (the “IPSI
Exchange Agreements”), pursuant to which each outstanding convertible note of IPSI will be exchanged for shares of newly-issued
shares of Series A Convertible Preferred Stock of IPSI (the “IPSI Series A Preferred”) and (ii) exchange agreements,
to be entered into by and among IPSI, Business Warrior and each holder of the outstanding convertible notes of Business Warrior (the “Business
Warrior Exchange Agreements"), pursuant to which each outstanding convertible note of Business Warrior will be exchanged for
shares of newly-issued shares of IPSI Series A Preferred. The designation of the IPSI Series A Preferred is subject to IPSI Stockholder
Approval. Further, as of the date of this Current Report, the terms of the IPSI Series A Preferred remain subject to negotiation between
IPSI, Business Warrior and the holders of such convertible notes. As previously disclosed by IPSI in a Current Report on Form 8-K filed
on February 26, 2024, IPSI and Business Warrior have certain convertible note holders in common.
In addition, IPSI’s
obligation to consummate the Merger is conditioned upon, among other things: (i) the representations and warranties of Business Warrior
being true and correct on and as of the Closing Date (as defined in the Merger Agreement) as if made on the Closing Date (subject to certain
exceptions and an overall “Material Adverse Effect” standard), (ii) Business Warrior having performed in all material respects
all of its obligations and complied in all material respects with all of its agreements and covenants under the Merger Agreement to be
performed or complied with by it on or prior to the Closing Date and (iii) receipt by IPSI of each Lock-Up Agreement (as defined below)
and Employment Agreement (as defined in the Merger Agreement).
Business Warrior’s obligation
to consummate the Merger is further conditioned upon, among other things: (i) the representations and warranties of IPSI being true and
correct on and as of the Closing Date as if made on the Closing Date (subject to certain exceptions and an overall “Material Adverse
Effect” standard) and (ii) IPSI and Merger Sub having performed in all material respects all of its obligations and complied in
all material respects with all of its agreements and covenants under the Merger Agreement to be performed or complied with by it on or
prior to the Closing Date.
Termination
The Merger Agreement may be
terminated at any time prior to the Effective Time by either IPSI or Business Warrior if the Merger and related transactions are not consummated
on or before the seven-month anniversary of the date of the Merger Agreement (the “Termination Date”), provided that
the Termination Date shall be automatically extended to the nine-month anniversary of the Merger Agreement if the conditions to closing,
other than receipt of IPSI Stockholder Approval and Business Warrior Stockholder Approval, effectiveness of the Registration Statement
and that the IPSI Exchange Agreements and Business Warrior Exchange Agreements are in full force and effect, have been satisfied.
The Merger Agreement may also
be terminated under certain other customary and limited circumstances at any time prior the Closing, including, among other reasons (i)
by mutual written consent of IPSI and Business Warrior, (ii) by written notice by either IPSI or Business Warrior if a governmental authority
of competent jurisdiction shall have issued an order or taken any other action permanently restraining, enjoining or otherwise prohibiting
the Merger, and such order or other action has become final and non-appealable, (iii) by written notice by Business Warrior of IPSI’s
or Merger Sub’s uncured breach of a representation, warranty, or covenant contained in the Merger Agreement that would cause the
related condition to closing to not be satisfied, (iv) by written notice by IPSI of Business Warrior’s uncured breach of a representation,
warranty, or covenant contained in the Merger Agreement that would cause the related Closing condition to not be satisfied or a material
breach of a Business Warrior Voting and Support Agreement, (v) by either IPSI or Business Warrior if Business Warrior holds its stockholder
meeting to approve the Merger Agreement and the Merger, and Business Warrior Stockholder Approval is not obtained, (vi) by IPSI if Business
Warrior’s board of directors has failed to recommend or shall have withdrawn, amended or modified in any respect materially adverse
to IPSI its recommendation of the Merger Agreement or shall have recommended another proposal for an Alternative Transaction or accepted
a Superior Proposal (as defined in the Merger Agreement) and (vii) by Business Warrior if, prior to receipt of Business Warrior Stockholder
Approval, Business Warrior accepts a Superior Proposal, subject to the terms and conditions of the Merger Agreement.
Governing Law
The Merger Agreement is governed
by the laws of the State of New York and the parties are subject to the jurisdiction of any New York state court or any federal court
sitting in the State of New York in any action arising out of or relating to the Merger Agreement.
Certain Agreements Related to the Merger Agreement
Business Warrior Voting
and Support Agreements
In connection with the execution
of the Merger Agreement, on July 29, 2024, certain stockholders of Business Warrior, including Rhett Doolittle and Jonathan Brooks, the
Chief Executive Officer and President, respectively, of Business Warrior (the “Business Warrior Holders”) entered into
support agreements with IPSI (the “Business Warrior Voting and Support Agreements”), pursuant to which such Business
Warrior Holders agreed, among other things, to vote all shares of capital stock of Business Warrior beneficially owned by the Business
Warrior Holders (the “Business Warrior Shares”) in favor of the Merger and related transactions. Such Business Warrior
Holders also agreed to take certain other actions in support of the Merger Agreement and related transactions (and any actions required
in furtherance thereof) and refrain from taking actions that would adversely affect such Business Warrior Holders’ ability to perform
their obligations under the Business Warrior Voting and Support Agreement. Pursuant to the Business Warrior Voting and Support Agreements,
the Business Warrior Holders also agreed not to transfer the Business Warrior Shares during the period from and including the date of
the Business Warrior Voting and Support Agreement and the first to occur of the Effective Time or the date on which the Business Warrior
Support Agreement is terminated, except for certain permitted transfers where the recipient also agrees to comply with the Business Warrior
Voting and Support Agreement.
Lock-Up Agreements
Concurrently with and effective
upon the Closing, officers, directors and certain stockholders of Business Warrior (each, a “Significant Stockholder”)
shall each enter into a Lock-Up Agreement with IPSI (each, a “Lock-Up Agreement”). Pursuant to the Lock-Up Agreements,
with respect to the shares received as Merger Consideration, each Significant Stockholder may not, with limited exceptions, transfer shares,
or publicly disclose the intention to transfer shares until the twelve-month anniversary of the Closing.
The foregoing descriptions
of agreements and the transactions and documents contemplated thereby are not complete and are subject to and qualified in their entirety
by reference to the Merger Agreement and form of Business Warrior Voting and Support Agreement, copies of which are filed with this Current
Report on Form 8-K as Exhibits 2.1 and 10.1, respectively, and the terms of which are incorporated by reference herein.
Item 5.02 Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On July 25, 2024, IPSI’s
board of directors (the “Board”), pursuant to the powers of the Board provided for under applicable Nevada law and
IPSI’s bylaws (the “Bylaws”), approved the creation of the new officer position of Executive Chairman. The Board
appointed William D. Corbett, the current Chairman of the Board of IPSI, to the office of Executive Chairman and removed Mr. Corbett as
IPSI’s Chief Executive Officer. On such date, the Board also approved the duties and responsibilities of the office of Executive
Chairman.
Also, on July 25, 2024, the
Board, pursuant to the powers of the Board provided for under applicable Nevada law and the Bylaws, appointed Richard Rosenblum, the current
President and Chief Financial Officer of IPSI, as IPSI’s “principal executive officer” for all general corporate purposes
and for Securities and Exchange Commission reporting purposes. The Board also, in furtherance of Mr. Rosenblum’s appointment as
principal executive officer of IPSI, elected to leave the office of Chief Executive Officer of IPSI unfilled.
Duties and Responsibilities
of IPSI’s Executive Chairman
As approved by the Board,
the duties and responsibilities of the Executive Chairman are intended to be consultative in nature and include the following:
| 1. | Chair annual and special meetings of the Board and annual stockholder meetings and, subject to availability
and invitation, attend meetings of the committees of the Board; |
| 2. | Provide overall Board leadership and assist in the establishment of guiding principles for the Board; |
| 3. | Manage the affairs of the Board and facilitate Board action in each instance in such a manner that strategic,
policy and other decisions of the Board are fully discussed, debated and decided by the Board; |
| 4. | In cooperation with the President and/or Chief Executive Officer, ensure that IPSI’s strategic orientation
is defined and communicated to the Board for its approval and that all material issues are dealt with by the Board during the year; |
| 5. | Ensure that the Board has efficient communication channels regarding all material issues concerning IPSI’s
business and see to it that directors are informed about these issues; |
| 6. | Act as a representative of the Board and consult with Board members outside the regularly scheduled meetings
of the Board as required; |
| 7. | Meet and confer as often as required with the President and/or Chief Executive Officer of IPSI to ensure
that there is efficient communication among the Executive Chairman, the President and/or Chief Executive Officer and Board members; |
| 8. | Offer advice and consultation to the President and/or Chief Executive Officer on the overall management
of the business and affairs of IPSI as well as specific matters, but only upon the request of the President and/or Chief Executive Officer. |
| 9. | With the approval of and consultation with President and/or Chief Executive Officer, the Executive Chairman
may act as IPSI’s representative with business partners of IPSI; and |
| 10. | At the request of the Board or the President and/or Chief Executive Officer, and in consultation with
the President and/or Chief Executive Officer, the Executive Chairman may be tasked with participating in special corporate strategic initiatives
or projects. |
William D. Corbett, has been
serving as a Director since August 6, 2019 and as its Chairman since February 22, 2021. He was served as IPSI’s Chief
Executive Officer from August 6, 2019 to July 25, 2024 and served as IPSI’s Interim Chief Financial Officer from August 6,
2019 to July 22, 2021. Mr. Corbett has over thirty years of Wall Street experience. Starting with Bear Stearns in the mid-eighties he
became an associate director responsible for managing over 50 brokers and was subsequently hired by Lehman Brothers where he was one of
the top producers in the 1990’s. In 1995, he co-founded and became CEO of The Shemano Group, a San Francisco investment banking
boutique, which developed into one of the leading banks for funding small cap companies. Mr. Corbett was a managing director at Paulson
Investment Co. from October 2013 until October 2016, responsible for West Coast investment banking activities. He also has served
as CEO of DPL a lending company, and a wholly owned subsidiary of DPW Holdings, Inc., from October of 2016 until May 2019. Mr. Corbett’s
financial experience on Wall Street, specifically with micro-cap companies, the Board believe provides him with the attributes that
make him a valuable member of IPSI’s Board of Directors.
Mr. Corbett (a) is not a party
to any arrangement or understanding with any other person pursuant to which he was selected as a director of IPSI and (b) has not been
involved in any transactions with IPSI or related persons of IPSI that would require disclosure under Item 404(a) of the Regulation S-K.
Mr. Rosenblum has been
serving as IPSI’s President, Chief Financial Officer and a Director since July 22, 2021. Mr. Rosenblum has also served
as the Secretary of IPSI since August 26, 2021. Mr. Rosenblum has been, since its founding in 1994, Chief Executive Officer and Principal
at Harborview Capital Advisors LLC (“Harborview”), which provided strategic advisory services in the areas of capital formation,
merchant banking and management consulting. Additionally, Mr. Rosenblum has been the owner of Harborview Property Management (“HPM”)
for over twenty-five (25) years, where he invests and manages domestic and international commercial real-estate, and multi-family real-estate assets.
From 2008 to 2014, Mr. Rosenblum was a Director, President and Executive Chairman of Alliqua Biomedical Inc. (NASDAQ: ALQA),
which developed and marketed hydrogel manufacturing technology in the wound care sector. His philanthropic and community-centered activities
include being a founding board member of the Dr. David Feit Memorial Foundation (“DFM”), which for over 15 years
raised money for the benefit and support of youth activities. Effective January 17, 2022, Mr. Rosenblum was appointed as an
independent director to the board of H-Cyte, (now Innoveren Scientific, Inc. (“Innoveren”)) Innoveren is a medical biosciences
company with a mission to become a leader in next-generation, cellular therapeutics for the treatment of chronic health conditions. In
January 2023, Mr. Rosenblum joined the board of Vicapsys Life Sciences Inc., a public biopharmaceutical company. Mr. Rosenblum
graduated Summa Cum Laude from SUNY Buffalo with a B.A. in Finance & Accounting.
Mr. Rosenblum (a) is not a
party to any arrangement or understanding with any other person pursuant to which he was selected as a director of IPSI and (b) has not
been involved in any transactions with IPSI or related persons of IPSI that would require disclosure under Item 404(a) of the Regulation
S-K.
Item 8.01 Other Information.
On
July 29, 2024, IPSI and Business Warrior issued a joint press release (the “Press Release”) announcing the execution
of the Merger Agreement. A copy of the press release is furnished as Exhibit 99.1 to this Current
Report on Form 8-K.
The
information in this Item 8.01 and the Press Release are intended to be furnished and shall not be deemed “filed” for purposes
of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall the Press Release be deemed incorporated
by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Additional
Information and Where to Find It
In
connection with the Merger Agreement and the Transactions, IPSI intends to file a Registration Statement on Form S-4 with the Securities
and Exchange Commission (“SEC”), which will include a prospectus and a preliminary proxy statement in connection with
the Merger Agreement and the Transactions (the “Registration Statement”). The Registration Statement has not been filed
with nor declared effective by the SEC. Promptly after the Registration Statement is declared effective by the SEC, IPSI will mail the
definitive proxy statement and a proxy card to its stockholders. Investors and securityholders of IPSI and other interested persons are
advised to read, when available, the preliminary proxy statement to be filed with the SEC, and amendments thereto, the definitive proxy
statement and the prospectus in connection with the Merger Agreement and Transactions and other documents filed in connection with the
proposed Transactions because these documents will contain important information. The definitive proxy statement will be mailed to stockholders
of IPSI as of a record date to be established in the future for voting on the Merger Agreement and the Transactions. The Registration
Statement, including the definitive proxy statement, the preliminary proxy statement and other relevant materials in connection with the
Transaction (when they become available), and any other documents filed by IPSI with the SEC, may be obtained free of charge at the SEC’s
website (www.sec.gov) or by writing to: Innovative Payment Solutions, Inc., 56B 5th Street, Lot 1, #AT, Carmel by the Sea,
CA 9392, Attention: Mr. Richard Rosenblum.
Participants
in the Solicitation
IPSI
and BZWR and their respective directors and officers may be deemed participants in the solicitation of proxies from IPSI’s stockholders
with respect to the Transactions. Investors and security holders may obtain more detailed information regarding the names, affiliations
and interests in the Transactions of certain of IPSI’s directors and officers in the solicitation by reading IPSI’s filings
with the SEC, including, when filed with the SEC, the Registration Statement, including its preliminary proxy statement/prospectus, the
definitive proxy statement/prospectus, amendments and supplements thereto, and other documents filed with the SEC. Such information with
respect to BZWR and BZWR’s directors and executive officers will also be included in the proxy statement/prospectus. You may obtain
free copies of these documents as described in the preceding paragraph.
No
Solicitation or Offer
This
Current Report is not a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the Transactions
and will not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities, nor will there be any sale
of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements
of the Securities Act of 1933, as amended.
Cautionary Note Regarding
Forward-Looking Statements
Certain
statements made herein contain, and certain oral statements made by representatives of IPSI and BZWR and their respective affiliates,
from time to time may contain, “forward-looking statements” within the meaning of the “safe harbor” provisions
of the Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein
are forward-looking statements. Such forward-looking statements include, but are not limited to, expectations, hopes, beliefs, intentions,
plans, prospects, financial results, or strategies regarding IPSI and Business Warrior, their respective businesses, the proposed merger
and the future generally held by the respective management teams of IPSI and Business Warrior, the anticipated benefits and the anticipated
timing of the proposed merger, future financial condition, and performance of IPSI and Business Warrior and expected financial impacts
of the proposed merger (including future revenue, pro forma enterprise value and cash balance), the satisfaction of closing conditions
to the proposed merger, financing transactions or recapitalizations related to the proposed merger, and the products and markets and expected
future performance and market opportunities of IPSI and Business Warrior. These forward-looking statements generally are identified by
the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,”
“intend,” “may,” “might,” “strategy,” “opportunity,” “plan,” “project,”
“possible,” “potential,” “project,” “predict,” “scales,” “representative
of,” “valuation,” “should,” “will,” “would,” “will be,” “will
continue,” “will likely result,” and similar expressions, but the absence of these words does not mean that a statement
is not forward-looking. Forward-looking statements are predictions, projections, and other statements about future events that are based
on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future
events to differ materially from the forward-looking statements in this press release, including, without limitation: (i) the risk that
the proposed merger may not be completed in a timely manner or at all, which may adversely affect the price of the securities of each
of IPSI and Business Warrior, (ii) the failure to satisfy the conditions to the consummation of the proposed merger, including the requirement
that the merger and related matters described herein must be approved by the stockholders of IPSI and by the stockholders of Business
Warrior, (iii) the failure to obtain regulatory or third-party approvals, as applicable, required to consummate the proposed merger, (iv)
the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed merger, (v) the effect
of the announcement or pendency of the proposed merger on IPSI and Business Warrior’s respective business relationships, operating
results, and business generally, (vi) risks that the proposed merger disrupts current plans and operations of IPSI or Business Warrior,
(vii) the outcome of any legal proceedings that currently exist or may be instituted against IPSI or Business Warrior related to the proposed
merger, (viii) changes in the competitive markets in which IPSI and Business Warrior operate, changes in laws and regulations affecting
IPSI and Business Warrior businesses and changes in the combined capital structure, (ix) the ability to implement business plans, growth,
marketplace, and other expectations after the completion of the proposed merger, and identify and realize additional opportunities, (x)
the potential inability of IPSI or Business Warrior to achieve its business and customer growth and technical development plans, (xii)
the ability of IPSI or Business Warrior to enforce its current or future intellectual property, including patents and trademarks, along
with potential claims of infringement by IPSI or Business Warrior of the intellectual property rights of others, (xiii) risk of loss of
key IPSI or Business Warrior personnel and (xiv) the risks of economic downturn, increased competition, a changing regulatory landscape,
and related impacts that could occur in the highly competitive marketplace in which IPSI and Business Warrior operate. The foregoing list
of factors is not exhaustive. Readers should carefully consider such factors and the other risks and uncertainties described and to be
described in the “Risk Factors” section of IPSI and Business Warrior most recent respective Annual Reports on Form 10-K filed
with the SEC and subsequent periodic reports filed by IPSI and Business Warrior with the SEC, and the Registration Statement to be filed
by IPSI in connection with the proposed merger. These filings identify and address other important risks and uncertainties that could
cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements
speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and neither IPSI
nor Business Warrior assume any obligation to, nor intend to, update or revise these forward-looking statements, whether as a result of
new information, future events, or otherwise, except as required by law. Neither IPSI nor Business Warrior gives any assurance that either
IPSI or Business Warrior, or the combined company, will achieve its expectations.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. |
|
Description |
| 2.1 |
|
Agreement and Plan of Merger, dated as of July 28, 2024, by and among Business Warrior Corporation, IPSI Merger Sub, Inc. and Innovative Payment Solutions, Inc. |
| 10.1 |
|
Voting and Support Agreement, dated as of July 28, 2024, by and among Innovative Payment Solutions, Inc., Business Warrior Corporation and the holders party thereto. |
| 99.1 |
|
Press Release, date July 29, 2024 |
| 104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
| |
INNOVATIVE PAYMENT SOLUTIONS, INC. |
| Dated: July 31, 2024 |
|
| |
By: |
/s/ Richard Rosenblum |
| |
Name: |
Richard Rosenblum |
| |
Title: |
President and Chief Financial Officer |
8
Exhibit 2.1
AGREEMENT AND PLAN OF MERGER
BY AND AMONG
BUSINESS WARRIOR CORPORATION,
IPSI MERGER SUB, INC.,
AND
INNOVATIVE PAYMENT SOLUTIONS, INC.
DATED AS OF JULY 28, 2024
TABLE OF CONTENTS
| |
|
Page |
| Article I. THE MERGER |
2 |
| |
Section 1.1. |
The Merger and the Charter Amendment |
2 |
| |
Section 1.2. |
Closing; Effective Time |
2 |
| |
Section 1.3. |
Tax Consequence |
2 |
| Article II. DIRECTORS, OFFICERS AND CHARTER DOCUMENTS |
2 |
| |
Section 2.1. |
Directors |
2 |
| |
Section 2.2. |
Officers |
2 |
| Article III. TREATMENT OF SECURITIES |
3 |
| |
Section 3.1. |
Effect of the Merger on Capital Stock |
3 |
| |
Section 3.2. |
Exchange of Certificates |
5 |
| Article IV. REPRESENTATIONS AND WARRANTIES OF THE COMPANY |
7 |
| |
Section 4.1. |
Corporate Organization |
7 |
| |
Section 4.2. |
Capitalization |
7 |
| |
Section 4.3. |
Authority; No Violation |
8 |
| |
Section 4.4. |
Consents and Approvals |
9 |
| |
Section 4.5. |
SEC Reports; Financial Statements |
10 |
| |
Section 4.6. |
Broker's Fees |
11 |
| |
Section 4.7. |
Absence of Certain Changes or Events |
11 |
| |
Section 4.8. |
Legal Proceedings |
11 |
| |
Section 4.9. |
Taxes and Tax Returns |
12 |
| |
Section 4.10. |
Certain Other Tax Matters |
13 |
| |
Section 4.11. |
Employees |
13 |
| |
Section 4.12. |
Securities Laws Matters |
14 |
| |
Section 4.13. |
Compliance with Applicable Law, Permits and Licenses |
15 |
| |
Section 4.14. |
Intellectual Property; Proprietary Rights; Employee Restrictions; Assets |
16 |
| |
Section 4.15. |
Certain Contracts; Leases |
17 |
| |
Section 4.16. |
Undisclosed Liabilities |
18 |
| |
Section 4.17. |
Insurance |
18 |
| |
Section 4.18. |
Environmental Liability |
18 |
| |
Section 4.19. |
State Takeover Law |
18 |
| |
Section 4.20. |
Registration Statement |
18 |
| |
Section 4.21. |
Transactions with Affiliates |
18 |
| Article V. REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB |
19 |
| |
Section 5.1. |
Corporate Organization |
19 |
| |
Section 5.2. |
Capitalization |
19 |
| |
Section 5.3. |
Authority; No Violation |
20 |
| |
Section 5.4. |
SEC Reports; Financial Statements |
20 |
| |
Section 5.5. |
Consents and Approvals |
21 |
| |
Section 5.6. |
Conduct of Business |
22 |
| |
Section 5.7. |
Certain Tax Matters |
22 |
| |
Section 5.8. |
Registration Statement |
22 |
| |
Section 5.9. |
Absence of Certain Changes or Events |
22 |
| |
Section 5.10. |
Legal Proceedings |
22 |
| |
Section 5.11. |
Compliance with Applicable Laws |
22 |
| Article VI. CONDUCT OF BUSINESS PENDING THE MERGER |
23 |
| |
Section 6.1. |
Conduct of Businesses Prior to the Merger Closing |
23 |
| |
Section 6.2. |
Company Forbearances |
23 |
| |
Section 6.3. |
Parent Obligations |
24 |
| |
|
|
Page |
| |
Section 6.4. |
Certain Tax Matters |
25 |
| |
Section 6.5. |
Other Matters |
25 |
| Article VII. ADDITIONAL AGREEMENTS |
25 |
| |
Section 7.1. |
Filings Under Securities Laws |
25 |
| |
Section 7.2. |
Access to Information |
25 |
| |
Section 7.3. |
Acquisition Transactions |
26 |
| |
Section 7.4. |
Stockholders' Approval |
27 |
| |
Section 7.5. |
Legal Conditions to the Merger |
28 |
| |
Section 7.6. |
Closing Board of Directors and Executive Officers |
29 |
| |
Section 7.7. |
Additional Agreements |
29 |
| |
Section 7.8. |
Advice of Changes |
30 |
| |
Section 7.9. |
Section 16 |
30 |
| |
Section 7.10. |
Directors' and Officers' Indemnification and Insurance |
30 |
| |
Section 7.11. |
Reorganization |
31 |
| |
Section 7.12. |
Registration Statement |
31 |
| Article VIII. CONDITIONS |
32 |
| |
Section 8.1. |
Conditions to Each Party's Obligation to Effect the Merger |
32 |
| |
Section 8.2. |
Conditions to Obligations of the Company |
33 |
| |
Section 8.3. |
Conditions to Obligations of Parent |
33 |
| Article IX. TERMINATION, AMENDMENT AND WAIVER |
34 |
| |
Section 9.1. |
Termination |
34 |
| |
Section 9.2. |
Effect of Termination |
35 |
| |
Section 9.3. |
Amendment |
36 |
| |
Section 9.4. |
Extension; Waiver |
36 |
| Article X. GENERAL PROVISIONS |
37 |
| |
Section 10.1. |
Nonsurvival of Representations, Warranties and Agreements |
37 |
| |
Section 10.2. |
Expenses |
37 |
| |
Section 10.3. |
Notices |
37 |
| |
Section 10.4. |
Interpretation |
38 |
| |
Section 10.5. |
Counterparts |
38 |
| |
Section 10.6. |
Entire Agreement |
38 |
| |
Section 10.7. |
Governing Law; Venue |
38 |
| |
Section 10.8. |
Publicity |
39 |
| |
Section 10.9. |
Assignment; Third Party Beneficiaries |
39 |
| |
Section 10.10. |
Specific Enforcement |
39 |
INDEX OF DEFINED TERMS
| Term |
|
Page
Number |
| Acquisition Proposal |
|
26 |
| Acquisition Transaction |
|
26 |
| Agreement |
|
1 |
| Allocation Statement |
|
4 |
| Applicable Per Share Portion |
|
3 |
| Business Day |
|
2 |
| CERCLA |
|
18 |
| Certificate of Amendment |
|
2 |
| Certificate of Designations |
|
2 |
| Certificate of Merger |
|
2 |
| Certificates |
|
5 |
| Charter Amendment |
|
2 |
| Closing |
|
2 |
| Closing Date |
|
2 |
| Code |
|
1 |
| Common Merger Consideration |
|
3 |
| Company |
|
1 |
| Company Affiliate Transactions |
|
18 |
| Company Audited Balance Sheets |
|
10 |
| Company Audited Financial Statements |
|
10 |
| Company Benefit Plan |
|
13 |
| Company Board Approval |
|
8 |
| Company Capitalization Freeze Date |
|
4 |
| Company Charter |
|
7 |
| Company Common Stock |
|
3 |
| Company Contract |
|
17 |
| Company Convertible Note |
|
1 |
| Company Convertible Securities |
|
3 |
| Company Disclosure Schedule |
|
7 |
| Company ERISA Affiliate |
|
13 |
| Company Exchange Agreement |
|
1 |
| Company Intellectual Property |
|
16 |
| Company Licensed Intellectual Property |
|
16 |
| Company February Financials |
|
10 |
| Company Owned Intellectual Property |
|
16 |
| Company Permits |
|
15 |
| Company Preferred Stock |
|
1 |
| Company Regulatory Agreement |
|
12 |
| Company Reports |
|
10 |
| Company Securities |
|
5 |
| Company Stock Plans |
|
7 |
| Company Stockholders |
|
4 |
| Company Stockholder Approval |
|
8 |
| Company Stockholder Meeting |
|
27 |
| Company Stockholder Proposals |
|
27 |
| Company Warrants |
|
7 |
| Compensation Committee |
|
14 |
| Confidentiality Agreement |
|
26 |
| DGCL |
|
2 |
| Effective Time |
|
2 |
| Employment Agreements |
|
22 |
| ERISA |
|
13 |
| Exchange Act |
|
10 |
| Exchange Agent |
|
5 |
| GAAP |
|
10 |
| Governmental Entity |
|
9 |
| HSR Act |
|
9 |
| Indemnified Parties |
|
30 |
| Insurance Policies |
|
18 |
| Intellectual Property |
|
16 |
| Knowledge |
|
11 |
| Leased Real Property |
|
17 |
| Leases |
|
17 |
| Liens |
|
8 |
| Lock-Up Agreement |
|
1 |
| Material Adverse Effect |
|
7 |
| Merger |
|
1 |
| Merger Consideration |
|
3 |
| Merger Consideration Statement |
|
4 |
| Merger Sub |
|
1 |
| Merger Sub Common Stock |
|
4 |
| Multiemployer Plan |
|
13 |
| Multiple Employer Plan |
|
13 |
| Nevada Statutes |
|
28 |
| Parent |
|
1 |
| Parent Audited Balance Sheets |
|
21 |
| Parent Audited Financial Statements |
|
21 |
| Parent Capitalization Freeze Date |
|
4 |
| Parent Convertible Note |
|
1 |
| Parent Common Stock |
|
3 |
| Parent Disclosure Schedule |
|
19 |
| Parent Exchange Agreement |
|
1 |
| Parent Preferred Stock |
|
2 |
| Parent Registration Statement |
|
21 |
| Parent Reports |
|
20 |
| Parent Stockholder Approval |
|
2 |
| Parties |
|
1 |
| Potential Acquirer |
|
26 |
| Preferred Merger Consideration |
|
3 |
| Proxy Statement/Prospectus |
|
25 |
| Qualifying Proposal |
|
26 |
| Requisite Regulatory Approval |
|
32 |
| SEC |
|
9 |
| Securities Act |
|
10 |
| Subsidiary |
|
7 |
| Superior Proposal |
|
26 |
| Surviving Corporation |
|
2 |
| Surviving Corporation Common Stock |
|
4 |
| Tax |
|
13 |
| Tax Return |
|
13 |
| Termination Date |
|
34 |
| Third Party Intellectual Property |
|
16 |
| Voting Agreements |
|
1 |
| WYBCL |
|
2 |
AGREEMENT AND PLAN OF MERGER
AGREEMENT AND PLAN OF MERGER,
dated as of July 28, 2024 (this “Agreement”), by and among Innovative Payment Solutions, Inc., a Nevada corporation
(“Parent”), IPSI Merger Sub, Inc., a Delaware corporation and wholly owned Subsidiary of Parent (“Merger Sub”),
and Business Warrior Corporation, a Wyoming corporation (the “Company”) (collectively, the “Parties”).
WHEREAS, the respective
Boards of Directors of each of the Parties have, by unanimous vote, approved and declared advisable this Agreement, pursuant to which
Merger Sub shall merge with and into the Company (the “Merger”), with the Company being the surviving corporation in
the Merger, upon the terms and subject to the conditions, and with the effects, set forth in this Agreement;
WHEREAS, the Parent
has received voting and support agreements in the form attached as Exhibit A hereto (collectively, the “Voting Agreements”)
signed by the Company and the holders of Company Common Stock (as defined herein) sufficient to approve the Merger and the other transactions
contemplated by this Agreement (including any separate class or series votes of the preferred stock of the Company (the “Company
Preferred Stock”);
WHEREAS, concurrently
with and effective upon the Closing, certain individuals shall enter into (a) a Lock-Up Agreement with Parent, in a form to be mutually
agreed between Parent and the Company acting reasonably in good faith (each, a “Lock-Up Agreement”) and (b) an Employment
Agreement;
WHEREAS, following
the execution and delivery of this Agreement, (a) Parent shall deliver to the Company those certain Exchange Agreements, by and between
Parent and each holder of a convertible promissory note of Parent (each, a “Parent Convertible Note”), in a form to
be mutually agreed between Parent and the Company acting reasonably in good faith (the “Parent Exchange Agreements”),
duly executed by Parent and each holder of a Convertible Note and (b) the Company shall deliver to Parent those certain Exchange Agreements,
by and between the Company and each holder of a convertible promissory note of the Company (a “Company Convertible Note”),
in a form to be mutually agreed between Parent and the Company acting reasonably in good faith, duly executed by the Company and each
holder of a Company Convertible Note (the “Company Exchange Agreements”);
WHEREAS, the Parties
intend that the Merger shall constitute a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code
of 1986, as amended (the “Code”), and that this Agreement shall constitute a plan of reorganization for purposes of
Sections 354 and 361 of the Code; and
WHEREAS, the Parties
desire to make certain representations, warranties and agreements in connection with the Merger and other transactions contemplated hereby
and also to prescribe certain conditions to the Merger and other transactions contemplated hereby.
NOW THEREFORE, in consideration
of the premises and the representations, warranties, covenants and agreements contained herein, the Parties hereto, intending to be legally
bound hereby, agree as follows:
Article
I.
THE MERGER
Section 1.1. The Merger
and the Charter Amendment. Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger
Sub shall be merged with and into the Company in accordance with Delaware General Corporation Law (“DGCL”) and
the Wyoming Business Corporation Law, as amended (the “WYBCL”). Following the Effective Time, the Company shall
continue as the surviving corporation in the Merger (the “Surviving Corporation”), shall be a direct, wholly
owned Subsidiary of Parent and shall succeed to all of the rights and obligations of Merger Sub, and the separate corporate
existence of Merger Sub shall cease, all as specified in the DGCL and WYBCL. Concurrently, upon the terms and subject to the
conditions set forth herein, immediately following Parent’s having obtained the stockholder approval (the “Parent
Stockholder Approval”) of the amendment of its Certificate of Incorporation (the “Charter Amendment”),
Parent shall file with the Secretary of State of the State of Nevada a Certificate of Amendment (the “Certificate of
Amendment”) to the Certificate of incorporation of the Parent and a Certificate of Designations of Parent (the
“Certificate of Designations”) relating to the Series A Preferred Stock, par value $0.0001 per share of Parent
(“Parent Preferred Stock”).
Section 1.2. Closing;
Effective Time. The closing of the Merger (the “Closing”) shall take place at the offices of Ellenoff Grossman
& Schole LLP, at 10:00 a.m., Eastern time, on the third Business Day immediately following the date on which the last of the
conditions set forth in Article VIII hereof is satisfied or waived (other than conditions that by their nature cannot be satisfied
until the Closing Date, but subject to satisfaction or waiver of such conditions), or at such other time and date and place
(including via remote exchange of Closing documentation) as Parent and the Company shall mutually agree (the “Closing
Date”). The term “Effective Time” shall mean the time and date of the filing by the Company of a
properly executed certificate of merger (the “Certificate of Merger”) with the Secretary of State of the State of
Wyoming in accordance with the WYBCL, or at such later time as agreed to by the Parties and set forth in the Certificate of Merger.
The term “Business Day” shall mean any day, other than a Saturday, Sunday or a day on which the commercial banks
in the state of New York are authorized or required by law to remain closed.
Section 1.3. Tax
Consequence. It is intended that the Merger constitute a “reorganization” within the meaning of Section 368(a) of the
Code, and the Parties hereto agree to treat the Merger consistently with this intention for all purposes at all times prior to and
following the Closing, unless required to do otherwise by law.
Article
II.
DIRECTORS, OFFICERS AND CHARTER DOCUMENTS
Section 2.1. Directors.
The directors of Merger Sub immediately prior to the Effective Time (who shall be the same directors of Parent following the Closing
as provided for herein) shall become the directors of the Surviving Corporation, which individuals shall serve as directors of the
Surviving Corporation until the earlier of their resignation or removal or their otherwise ceasing to be directors or until their
respective successors are duly appointed or elected in accordance with applicable law.
Section 2.2. Officers.
The officers of the Company immediately prior to the Effective Time shall be the officers of the Surviving Corporation as of the
Effective Time and shall serve until their resignation or removal or their otherwise ceasing to be officers or until their
respective successors are duly appointed or elected in accordance with applicable law.
Article
III.
TREATMENT OF SECURITIES
Section 3.1. Effect of
the Merger on Capital Stock. At the Effective Time, by virtue of the Merger and without any action on the part of any holder of any
capital stock of the Company or Merger Sub:
(a) Cancellation
of Certain Company Securities. Each share, if any, of Company Common Stock and Company Preferred Stock that is held in the treasury
of the Company and all shares of Company Common Stock and Company Preferred Stock, if any, that are owned by Parent immediately prior
to the Effective Time shall be cancelled and shall cease to exist, and no stock of Parent or other consideration shall be delivered in
exchange therefor.
(b) Conversion
of Company Securities. By virtue of the Merger and without any action on the part of any holder thereof:
(i) Each
share of common stock, par value $0.0001 per share, of the Company (the “Company Common Stock”) issued and outstanding
immediately prior to the Effective Time, other than shares cancelled pursuant to Section 3.1(a) of this Agreement, shall cease to be outstanding
and shall cease to exist and shall be converted automatically, subject to Section 3.1(f), into the right to receive the Applicable Per
Share Portion of the Merger Consideration with respect to such share of Company Common Stock (“Common Merger Consideration”).
“Applicable Per Share Portion” shall mean, with respect to any share of any class or series of Company Common Stock
or Company Preferred Stock, as applicable, the number of shares of fully paid and nonassessable shares of common stock, $0.0001 par value
per share, of Parent (“Parent Common Stock”) comprising the Merger Consideration payable in respect of a share of such
class and series of Company Capital Stock, as set forth in the Allocation Statement.
(ii) Each
share of Company Preferred Stock outstanding immediately prior to the Effective Time, other than shares cancelled pursuant to Section
3.1(a) and shares as to which appraisal rights have been exercised pursuant to Section 3.1(f), shall cease to be outstanding and shall
be retired and cease to exist and be converted automatically into the right to receive that Common Merger Consideration into which each
such share of Company Preferred Stock would have been converted pursuant to Section 3.1(b)(i) had such share of Company Preferred Stock
been converted into shares of Company Common Stock immediately before the Effective Time (the “Preferred Merger Consideration”
and, together with the Common Merger Consideration, the “Merger Consideration”).
(iii) At
the Effective Time, each Certificate theretofore representing shares of Company Common Stock or shares of Company Preferred Stock (except
as provided in Section 3.1(f) with respect to shares of Company Preferred Stock as to which appraisal rights have been exercised), as
the case may be, shall, without any action on the part of the Company, Parent or the holder thereof, represent, and shall be deemed to
represent from and after the Effective Time, the right to receive the number of shares of Parent Common Stock (and cash in lieu of any
fractional share) as determined in accordance with Section 3.1(b)(i) and Section 3.1(b)(ii) above and shall cease to represent any rights
in any shares of capital stock of the Company or Surviving Corporation.
(iv) Any
other options, warrants or rights to subscribe for or purchase any capital stock of the Company or securities convertible into or exchangeable
for, or that otherwise confer on the holder any right to acquire any capital stock of the Company (the “Company Convertible Securities”),
if not exercised or converted prior to the Effective Time, shall be cancelled, retired and terminated and cease to represent a right to
acquire, be exchanged for or convert into shares of Company Stock.
(c) Conversion
of Merger Sub Stock. At the Effective Time, by virtue of the Merger and without any action on the part of any Party or the holders
of any Company Common Stock or Company Preferred Stock or the holders of any shares of capital stock of Parent or Merger Sub, each share
of common stock, par value $0.0001 per share, of Merger Sub (“Merger Sub Common Stock”) outstanding immediately prior
to the Effective Time shall be converted into an equal number of shares of common stock of the Surviving Corporation (“Surviving
Corporation Common Stock”), with the same rights, powers and privileges as the shares so converted and shall constitute the
only outstanding shares of capital stock of the Surviving Corporation.
(d) Merger
Consideration Statement. No later than 5:00 p.m., New York City time, two Business Days prior to the Closing Date, Parent shall deliver
to the Company a statement (the “Merger Consideration Statement”) setting forth its calculation of the Applicable Per
Share Portion and the Merger Consideration, as mutually agreed by Parent and the Company, together with reasonable supporting documentation
as to the number of shares or Parent Common Stock outstanding as of such date. The aggregate Merger Consideration in the Merger Consideration
Statement shall be calculated such that the Merger Consideration shall represent forty-five percent (45%) of the Parent Common Stock outstanding
immediately following the Closing. The date on which the Merger Consideration Statement is delivered pursuant to this Section 3.1(d) is
referred to herein as the “Parent Capitalization Freeze Date.” The Parent shall not issue, deliver, sell, transfer,
grant, pledge or otherwise directly or indirectly dispose of, or place any equity securities of Parent or options, warrants or other rights
to purchase or obtain any equity securities of Parent, in each case after the Parent Capitalization Freeze Date.
(e) Allocation
Statement. No later than 5:00 p.m., New York City time, on the Business Day prior to the Closing Date, the Company shall deliver to
Parent an allocation statement (the “Allocation Statement”) setting forth (a) the Applicable Per Share Portion of the
Merger Consideration attributable to a share of each class or series of Company Common Stock, and (b) an allocation of the Merger Consideration
among the holders of Company Common Stock and Company Preferred Stock. Notwithstanding anything to the contrary in this Agreement, the
Parent and, following the Closing, the Surviving Corporation, shall be entitled to rely on, without any obligation to investigate or verify
the accuracy or correctness thereof, the Allocation Statement (including all determinations therein), and no holder of Company Common
Stock or Company Preferred Stock (the “Company Stockholders”) shall be entitled to any amount in excess of the amounts
to be paid to such Company Stockholder in accordance with this Agreement and the Allocation Statement. The Allocation Statement shall
be prepared in accordance with the Company Certificate of Incorporation. The date on which the Allocation Statement is delivered pursuant
to this Section 3.1(e) is referred to herein as the “Company Capitalization Freeze Date.” The Company shall not issue,
deliver, sell, transfer, grant, pledge or otherwise directly or indirectly dispose of, or place any equity securities of the Company or
options, warrants or other rights to purchase or obtain any equity securities of the Company, in each case after the Company Capitalization
Freeze Date.
(f) Appraisal
Rights. Notwithstanding Section 3.1(b)(ii), shares of Company Common Stock and Company Preferred Stock outstanding immediately prior
to the Effective Time and held by a holder who has not voted in favor of this Agreement or consented thereto in writing and who has demanded
appraisal for such shares of Company Common Stock and Company Preferred Stock in accordance with the WYBCL shall not be converted into
the Merger Consideration, unless such holder fails to perfect or withdraws or otherwise loses his right to appraisal. If after the Effective
Time such holder fails to perfect or withdraws or loses his right to appraisal, such shares of Company Common Stock and Company Preferred
Stock shall be treated as if they had been converted as of the Effective Time into the Merger Consideration. The Company shall give Parent
prompt notice of any demands received by the Company for appraisal of shares of Company Common Stock and Company Preferred Stock, and
Parent shall have the right to participate in all negotiations and proceedings with respect to such demands. The Company shall not, except
with the prior written consent of Parent, make any payment with respect to, or settle or offer to settle, any such demands. Payments to
holders of Company Common Stock and Company Preferred Stock under this Section 3.1(f) shall be made by the Company out of its own funds,
no funds shall be supplied for that purpose, directly or indirectly, by Parent, nor shall Parent directly or indirectly reimburse the
Company for any such payments to holders of Company Common Stock and Company Preferred Stock.
Section 3.2. Exchange of
Certificates. Deposit with Exchange Agent. As soon as practicable after the Effective Time, Parent shall deposit or cause to
be deposited with a bank or trust company selected by Parent that is reasonably acceptable to the Company (the “Exchange
Agent”), pursuant to an agreement in form and substance reasonably acceptable to Parent and the Company, certificates
representing the shares of Parent Common Stock issuable in the Merger pursuant to Section 3.1(b).
(b) Exchange
and Payment Procedures. As soon as practicable after the Effective Time, Parent shall cause the Exchange Agent to mail to each holder
of record of a certificate or certificates (collectively, the “Certificates”) that immediately prior to the Effective
Time represented issued and outstanding shares of Company Common Stock or Company Preferred Stock (collectively, “Company Securities”)
whose shares were converted into the right to receive the applicable Merger Consideration pursuant to Section 3.1(b): (i) a letter of
transmittal (which shall specify that delivery shall be effected, and risk of loss and title to the certificates shall pass, only upon
actual delivery of the certificates to the Exchange Agent (and which shall be in such form as is reasonably satisfactory to the Company)
and (ii) instructions for use in effecting the surrender of the Certificates in exchange for Parent Common Stock (which shall be in uncertificated
book-entry form unless a physical certificate is requested) and any cash in lieu of fractional shares of Parent Common Stock. Following
the Merger, the former holders of Company Securities shall be entitled to receive in exchange therefor a book-entry statement reflecting
ownership of (or, if requested, a certificate representing) that number of whole shares of Parent Common Stock (after taking into account
all shares of Company Common Stock and Company Preferred Stock then held by such holder) into which the shares of Company Common Stock
or Company Preferred Stock previously represented by such Certificates are converted in accordance with Section 3.1(b). In the event that
the Merger Consideration is to be delivered to any person who is not the person in whose name the Certificate surrendered in exchange
therefor is registered in the transfer records of the Company, the Merger Consideration may be delivered to a transferee if the Certificate
is presented to the Exchange Agent, accompanied by all documents required to evidence and effect such transfer and by evidence satisfactory
to the Exchange Agent that any applicable stock transfer taxes have been paid. Until surrendered as contemplated by this Section 3.2,
each Certificate (other than a certificate representing shares of Company Common Stock or Company Preferred Stock to be cancelled in accordance
with Section 3.1(a)) shall be deemed at any time after the Effective Time to represent only the right to receive upon such surrender the
applicable Merger Consideration contemplated by this Section 3.2. No interest will be paid or will accrue on any cash payable to holders
of Certificates pursuant to the provisions of this Article III.
(c) Distributions
with Respect to Unexchanged Shares. No dividends or other distributions declared or made after the Effective Time with respect to
Parent Common Stock with a record date after the Effective Time shall be paid to the holder of any unsurrendered Certificate with respect
to Parent Common Stock represented thereby. Subject to the effect of unclaimed property, escheat and other applicable laws, following
surrender of any such Certificate, there shall be paid to the record holder of the certificates representing whole shares of Parent Common
Stock issued in exchange therefor, without interest, at the appropriate payment date, the amount of dividends or other distributions with
a record date after the Effective Time but prior to surrender and a payment date subsequent to surrender payable with respect to such
whole shares of Parent Common Stock.
(d) No
Fractional Securities. Notwithstanding anything to the contrary contained herein, no fraction of a share of Parent Common Stock will
be issued by virtue of the Merger or the transactions contemplated hereby, and each person who would otherwise be entitled to a fraction
of a share of Parent Common Stock (after aggregating all fractional shares of Parent Common Stock that otherwise would be received by
such holder) shall instead have the number of shares of Parent Common Stock issued to such person rounded down in the aggregate to the
nearest whole share of Parent Common Stock.
(e) Closing
of Transfer Books. If, after the Effective Time, Certificates are presented to the Surviving Corporation, they shall be cancelled
and exchanged for certificates (or a book-entry position) representing the appropriate number of shares of Parent Common Stock as provided
in Section 3.1 and in this Section 3.2.
(f) Termination
of Exchange Agent. Any certificates representing shares of Parent Common Stock deposited with the Exchange Agent pursuant to Section
3.2(a) and not exchanged within one year after the Effective Time pursuant to this Section 3.2 shall be returned by the Exchange Agent
to Parent, which shall thereafter act as Exchange Agent. All funds or securities held by the Exchange Agent for payment to the holders
of unsurrendered Certificates and unclaimed at the end of two years from the Effective Time shall be returned to Parent, after which time
any holder of unsurrendered Certificates shall look as a general creditor only to Parent for payment of such funds or securities to which
such holder may be due, subject to applicable law.
(g) Escheat.
To the fullest extent permitted by applicable law, neither Parent nor the Company shall be liable to any person for any funds or securities
delivered to a public official pursuant to any applicable abandoned property, escheat or similar law.
(h) Lost
Certificates. In the event 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 reasonably required by Parent, the posting by such person
of a bond in such amount as Parent may determine is reasonably necessary as indemnity against any claim that may be made against it with
respect to such certificate, the Exchange Agent will issue in exchange for such lost, stolen or destroyed certificate the applicable Merger
Consideration deliverable in respect thereof pursuant to this Agreement.
(i) Withholding
Rights. Each of the Exchange Agent, the Surviving Corporation and Parent shall be entitled to deduct and withhold from the consideration
otherwise payable pursuant to this Agreement to any holder of Certificates which, prior to the Effective Time, represented shares of Company
Common Stock or Company Preferred Stock such amounts as it is required to deduct and withhold with respect to the making of such payment
under the Code and the rules and regulations promulgated thereunder, or any provision of state, local or foreign tax law. To the extent
that amounts are so withheld by the Exchange Agent, the Surviving Corporation or Parent, as the case may be, such withheld amounts shall
be treated for all purposes of this Agreement as having been paid to the holder of the shares of Company Common Stock or Company Preferred
Stock, as the case may be, in respect of which such deduction and withholding was made by the Exchange Agent, the Surviving Corporation
or Parent, as the case may be.
(j) No
Further Ownership Rights in Company Common Stock and Company Preferred Stock. All shares of Parent Common Stock shares paid upon the
conversion of shares of Company Common Stock and Company Preferred Stock in accordance with the terms of Articles I, II and III shall
be deemed to have been issued or paid in full satisfaction of all rights pertaining to such shares of Company Common Stock and Company
Preferred Stock.
Article
IV.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
Except as disclosed in the
relevant section of the Company disclosure schedule delivered to Parent concurrently herewith (the “Company Disclosure Schedule”)
(it being understood that the listing or setting forth of an item in one section of the Company Disclosure Schedule shall be deemed to
be a listing or setting forth in another section or sections of the Company Disclosure Schedule to the extent that the relevance of the
information set forth in one section of the Company Disclosure Schedule is readily apparent to be applicable to such other section or
sections), as an inducement to Parent and Merger Sub entering into this Agreement and completing the transactions contemplated hereby,
the Company hereby represents and warrants to Parent and Merger Sub as follows:
Section 4.1. Corporate
Organization. The Company is duly organized and validly existing as a corporation in good standing under the laws of the State of
Wyoming. The Company has the corporate power and authority to own or lease all of its properties and assets and to carry on its
business as it is now being conducted, and is duly licensed or qualified to do business in each jurisdiction in which the nature of
the business conducted by it or the character or location of the properties and assets owned or leased by it makes such licensing or
qualification necessary, except where the failure to be so licensed or qualified would not, either individually or in the aggregate,
have a Material Adverse Effect on the Company. As used in this Agreement, the term “Material Adverse Effect”
means, with respect to Parent or the Company, as the case may be, any change or effect that is or would reasonably be expected to be
materially adverse to (i) the business, operations, results of operations or financial condition of such Party and its Subsidiaries
taken as a whole or (ii) the ability of such Party to timely consummate the transactions contemplated hereby; provided, however,
that Material Adverse Effect shall not be deemed to include the impact of any change or effect relating to or arising from the
execution, announcement, or consummation of this Agreement and the transactions contemplated hereby, including any impact thereof on
relationships, contractual or otherwise, with customers, suppliers or employees. As used in this Agreement, the word
“Subsidiary” when used with respect to any entity, means any corporation, partnership, limited liability company,
or other organization, whether incorporated or unincorporated, which is consolidated with such entity for financial reporting
purposes. The Company has previously made available to Parent true and complete copies of (i) the Certificate of Incorporation of
the Company (the “Company Charter”) and the Bylaws of the Company, each as in effect as of the date of this
Agreement, and (ii) the minutes of the meetings of the Board of Directors and any Committee thereof in respect of meetings of the
Board of Directors and such Committees held since January 1, 2020 through the date hereof, other than meetings of the Board of
Directors for which minutes have not heretofore been prepared (the proceedings of which have been described in all material respects
to counsel for Parent) or the subject of which was this Agreement and the transactions contemplated hereby.
(b) Each
Company Subsidiary (i) is duly organized and validly existing under the laws of its jurisdiction of organization, (ii) is duly qualified
to do business and, where such status is recognized, in good standing in all jurisdictions (whether federal, state, local or foreign)
where its ownership or leasing of property or the conduct of its business requires it to be so qualified, except where the failure to
be so qualified would not, individually or in the aggregate, have a Material Adverse Effect on the Company, and (iii) has all requisite
corporate power and authority to own or lease its properties and assets and to carry on its business as now conducted.
Section 4.2.
Capitalization.
(a) The authorized capital
stock of the Company consists of (i) 850,000,000 shares of Company Common Stock, of which, as of the date hereof, 506,961,773 shares
were issued and outstanding, and no such shares were held in the Company’s treasury; (ii) 10,000,000 shares of preferred
stock, of which, as of the date hereof, 15,500 shares of Series A Preferred Stock were issued and outstanding and no such shares
were held in the Company’s treasury, and each of which, as of the date hereof, is convertible into .1% of the issued and
outstanding shares of Company Common Stock; 100,000 Series B Preferred Shares
authorized, and there were 12,017 Series B shares issued with a liquidation value of $100.00 per share, no votings rights and Are
convertible into common shares based upon 80% of average closing prices for a share of Common Stock on the principal exchange or
market on which such shares are then trading for the 20 trading days immediately preceding the conversion date; and 50,000 Series C
Preferred Shares authorized and 50,000 Series C Preferred Shares issued and outstanding that are subject to litigation for
cancelation initiated by the Company.. As of the date hereof, no shares of Company Common Stock or Company Preferred Stock
were reserved for issuance, except as required under the Company’s existing stock option
plans, employee stock purchase plans, or other similar arrangements. All of the issued and outstanding shares of Company Common
Stock have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, with no personal
liability attaching to the ownership thereof. As of the date of this Agreement, the Company does not have and is not bound by any
outstanding subscriptions, options, warrants, calls, preemptive rights, commitments or agreements of any character calling for the
purchase or issuance of any shares of Company Securities or any other equity securities of the Company or any securities
representing the right to purchase or otherwise receive any shares of Company Securities. Since January 1, 2023, the Company has not
issued any shares of its capital stock or any securities convertible into or exercisable for any shares of its capital stock. The
Company has previously provided Parent with a list of the Company option holders as of the date hereof, the date each option to
purchase Company Common Stock was granted, the number of shares subject to each such option, the expiration date of each such option
and the price at which each such option may be exercised under an applicable stock plan of the Company (“Company Stock
Plan”). Section 4.2 of the Company Disclosure Schedule sets forth a list of each warrant to purchase Company Securities as of
the date hereof (the “Company Warrants”), the holder of each such Company Warrant, the date each such Company Warrant
was granted, the number of shares subject to each such Company Warrant, the expiration date of each such Company Warrant and the
exercise price per share under each such Company Warrant. The Company has previously provided to Parent a true and complete copy of
each instrument (including any amendments thereto) evidencing a Company Warrant.
(b) Section
4.2(b) of the Company Disclosure Schedule sets forth, for each Subsidiary of the Company, the name and state of incorporation of such
Subsidiary, and the number and type(s) of its outstanding shares of capital stock or other equity interests. The Company owns, directly
or indirectly, all of the issued and outstanding shares of capital stock or other equity ownership interests of each of the Company’s
Subsidiaries, free and clear of any liens, pledges, charges, encumbrances and security interests whatsoever (“Liens”),
and all of such shares or equity ownership interests are duly authorized and validly issued and are fully paid, nonassessable and free
of preemptive rights, with no personal liability attaching to the ownership thereof. None of the Company’s Subsidiaries has or is
bound by any outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the purchase
or issuance of any shares of capital stock or any other equity security of such Subsidiary or any securities representing the right to
purchase or otherwise receive any shares of capital stock or any other equity security of such Subsidiary. Except for interests in its
Subsidiaries, neither the Company nor any of its Subsidiaries owns directly or indirectly any material equity interest in any firm, corporation,
partnership or other entity, whether incorporated or unincorporated, or has any obligation or has made any commitment to acquire any such
interest or to make any investment. No Company Subsidiary owns any capital stock of the Company.
Section 4.3. Authority;
No Violation.
(a) The Company has full corporate
power and authority to execute and deliver this Agreement and, subject to obtaining the Company Stockholder Approval, to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby,
including the Merger, have been duly and validly authorized (including such authorization as may be required so that no state interested
director statute, including, without limitation, the WYBCL, is or becomes operative with Parent, its Affiliates or transferees, this Agreement
or the transactions contemplated hereby) and this Agreement and have been duly and validly adopted by the Company’s Board of Directors.
Except for (i) the filing of the Certificate of Merger with the Secretary of State of the State of Wyoming pursuant to the WYBCL, and
(ii) the approval of this Agreement by the affirmative vote of the holders of shares representing a majority of the voting power of the
outstanding shares of the Company Common Stock and Company Preferred Stock, voting together as a single class (the “Company Stockholder
Approval”), no other corporate proceedings on the part of the Company are necessary to approve this Agreement or to consummate
the transactions contemplated hereby. The Company’s Board of Directors, by unanimous vote thereof, (i) has adopted this Agreement
and the transactions contemplated hereby, and declared this Agreement advisable (the “Company Board Approval”), (ii)
has directed that this Agreement and the Merger be submitted to the stockholders of the Company for approval at the Stockholder Meeting
and (iii) subject to Section 7.4, recommends that stockholders of the Company approve this Agreement and the transactions contemplated
hereby. This Agreement has been duly and validly executed and delivered by the Company and (assuming due authorization, execution and
delivery by the other Parties) constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms (except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of
creditors generally and the availability of equitable remedies).
(b) Neither
the execution and delivery of this Agreement by the Company, nor the consummation by the Company of the transactions contemplated hereby,
including the Merger, nor compliance by the Company with any of the terms or provisions hereof, will (i) violate any provision of the
Company Charter or the Bylaws of the Company, or violate or conflict with any agreement or instrument pursuant to which any shares of
capital stock of the Company, or securities exercisable for or convertible into shares of capital stock of the Company, have been issued,
or (ii) subject to the making of the filings and obtaining the approvals referred to in Section 4.4 and the effectiveness of such filings
and/or receipt of the consents and approvals in connection therewith, (A) violate any statute, code, ordinance, rule, regulation, judgment,
order, writ, decree or injunction applicable to the Company, any of its Subsidiaries or any of their respective properties or assets or
(B) violate, conflict with, result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event
which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination
or cancellation under, accelerate the performance required by, result in the creation of any Lien upon any of the respective properties
or assets of the Company or any of its Subsidiaries under, or require any increased payment under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company
or any of its Subsidiaries is a party, or by which they or any of their respective properties or assets may be bound or affected, except
(in the case of clause (ii) above) for such violations, conflicts, breaches, defaults, terminations, cancellations, accelerations, Liens
or payments which, individually or in the aggregate, will not have a Material Adverse Effect on the Company.
Section 4.4. Consents
and Approvals. Except for (a) the filing of the pre-merger notification report under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”), (b) the filing with the Securities and Exchange Commission (the
“SEC”) of (i) the Proxy Statement/Prospectus and (ii) such reports under the Exchange Act as may be required in
connection with this Agreement and the transactions contemplated by this Agreement, (c) the filing of the Certificate of Merger with
the Secretary of State of the State of Wyoming pursuant to the WYBCL, (d) the filings with any court, administrative agency or
commission or other governmental, regulatory or self-regulatory authority or instrumentality (each a “Governmental
Entity”) as required under applicable law in each case as set forth in 0 of the Company Disclosure Schedule, (e) the
Company Stockholder Approval, (f) such filings, consents, or approvals as may be necessary with respect to any Company Permit or any
other permit or license held by the Company or its Subsidiaries in respect of the Company’s real estate brokerage, real estate
exchange, loan brokerage, mortgage brokerage, call center, or other financing or brokerage business and (g) such other filings, the
failure of which to make would not, individually or in the aggregate, have a Material Adverse Effect on the Company, no consents or
approvals of or filings or registrations with any Governmental Entity or third party are necessary in connection with (A) the
execution and delivery by the Company of this Agreement and (B) the consummation by the Company of the transactions contemplated
hereby. As of the date hereof, to the Company’s knowledge, there is no reason, relating to the Company and its Subsidiaries,
the operation of their businesses or the terms of this Agreement, why the receipt of any such consents or approvals will not be
obtained in a customary time frame once complete and appropriate filings have been made by the Company and Parent.
Section 4.5. SEC
Reports; Financial Statements. The Company has made available to Parent an accurate and complete copy of each (i) report, schedule,
final registration statement, prospectus and definitive proxy statement filed by the Company with the SEC on or after January 1,
2022 and prior to the date hereof pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or
the Securities Exchange Act of 1934 (the “Exchange Act”) (the “Company Reports”), which are
all the forms, reports and documents required to be filed by the Company with the SEC since such date, provided that, if the
Company amends any of the Company Reports, the fact of the filing of such amendment shall not, in and of itself, be deemed to mean
or imply that any representation or warranty in this Agreement was not true when made or became untrue thereafter; and (ii)
communication mailed by the Company to its stockholders since January 1, 2022 and prior to the date hereof. As of their respective
dates, the Company Reports and communications (A) complied in all material respects with requirements of the Securities Act or the
Exchange Act, as the case may be, and the published rules and regulations of the SEC thereunder applicable thereto, and (B) did not
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances in which they were made, not misleading, except that information
as of a later date (but before the date hereof) shall be deemed to modify information as of an earlier date.
(b) The
Company has previously made available to Parent copies of (i) the consolidated balance sheets (the “Company Audited Balance Sheets”)
of the Company and its Subsidiaries as of August 31, 2022 and August 31, 2023, and the related consolidated statements of operations,
shareholders’ equity (deficit) and cash flows for the fiscal years ended August 31, 2022 and August 31, 2023, as reported in the
Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2023 filed with the SEC under the Exchange Act (such financial
statements included in such Annual Report, together with the Company Audited Balance Sheets, the “Company Audited Financial Statements”),
in each case, accompanied by the audit report of Accell Audit and Compliance, P.A., independent public accountants with respect to the
Company ; and (ii) the unaudited consolidated balance sheet of the Company and its Subsidiaries as of November 30, 2023 and the related
consolidated statements of operations and cash flows (the “Company February Financials”). The Company Audited Financial
Statements and Company February Financials (including in each case the related notes, where applicable) (i) fairly present in all material
respects the consolidated financial position of the Company and its Subsidiaries as at the respective dates thereof and the consolidated
results of operations, cash flows and, in the case of the Company Audited Financial Statements, changes in shareholders’ equity
(deficit), of the Company and its Subsidiaries for the periods indicated (subject, in the case of the unaudited financial statements,
to normal audit adjustments which are not expected, individually or in the aggregate, to be material); (ii) have been prepared consistent
with the books and records of the Company and its Subsidiaries and consistent with the Company’s accounting policies and procedures;
(iii) comply as to form in all material respects with applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto; and (iv) have been prepared in all material respects in accordance with United States generally accepted
accounting principles (“GAAP”) consistently applied during the periods involved, except, in each case, as indicated
in such statements or in the notes thereto. The books and records of the Company and its Subsidiaries have been, and are being, maintained
in all material respects in accordance with GAAP (to the extent applicable) and any other applicable legal and accounting requirements
and reflect only actual transactions.
Section 4.6.
Broker’s Fees. Neither the Company nor any Company Subsidiary nor any of their respective officers or directors has employed
any broker or finder or incurred any liability for any broker’s fees, commissions or finder’s fees payable on behalf of
the Company in connection with the Merger or the other transactions contemplated by this Agreement. A true and complete copy of each
engagement letter pursuant to which any such fee or commission is payable has been previously delivered to Parent.
Section
4.7. Absence of Certain Changes or Events. Since August 31, 2023, no event or events have occurred which have had or would have,
individually or in the aggregate, a Material Adverse Effect on the Company.
(b) Since
August 31, 2023 through the date hereof, other than the execution and delivery of this Agreement, the Company and its Subsidiaries have
carried on their respective businesses in all material respects in the ordinary course consistent with past practice.
(c) Neither
the Company nor any of its Subsidiaries has, since August 31, 2023 through the date hereof, (i) except in the ordinary course of business
or as required by applicable law or an agreement which has been disclosed prior to the date hereof in the Company Reports and a copy provided
by the Company to Parent (A) increased the wages, salaries, compensation, pension, or other fringe benefits or perquisites payable to
any executive officer, employee, or director from the amount thereof in effect as of August 31, 2023, or (B) granted any severance or
termination pay, entered into any contract to make or grant any severance or termination pay, or paid any bonuses or commissions (other
than customary bonuses for fiscal year 2023 and customary commissions for the fiscal years 2023 and 2024) or (ii) suffered any material
strike, work stoppage, slowdown, or other labor disturbance.
(d) Since
August 31, 2023 through the date hereof, the Company has not granted any stock options with respect to Company Common Stock or Company
Preferred Stock to any director, officer, employee, or independent contractor of the Company or any of its Subsidiaries at an exercise
price per share below the fair market value per share of the Company Common Stock or Company Preferred Stock, as the case may be, on the
date the Company took all necessary corporate action to effectuate such grant.
(e) Since
August 31, 2023 through the date hereof, neither the Company nor any of its Subsidiaries has taken any action described in Section 6.2(d),
Section 6.2(g), Section 6.2(h) or Section 6.2(n) that if taken after the date hereof and prior to the Effective Time would violate such
provision.
Section 4.8. Legal Proceedings.
(a) Except
as set forth in Section 4.8(a) of the Company Disclosure Schedules, neither the Company nor any of its Subsidiaries is a party to any,
and there are no pending or, to the Company’s knowledge, threatened, legal, administrative, arbitral or other proceedings, claims,
actions or governmental or regulatory investigations (i) of any nature against the Company or any of its Subsidiaries other than such
proceedings, claims, actions or investigations which would not, individually or in the aggregate, reasonably be expected to result in
any material fines, judgments or amounts paid in settlement or, if adversely determined against the Company or its Subsidiaries, to restrict
in any material respect the conduct of the business of the Company and its Subsidiaries or (ii) as of the date hereof, challenging the
validity or propriety of the transactions contemplated by this Agreement. For purposes of this Agreement, the “knowledge”
of any person that is not an individual means, with respect to any matter in question, the actual knowledge of such person’s executive
officers and other officers having primary responsibility for such matter in each case, based upon reasonable inquiry consistent with
such person’s title and responsibilities.
(b) Neither
the Company nor any of its Subsidiaries (i) is subject to any outstanding order, injunction or decree or is a party to any written agreement,
consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject
to any order or directive (other than any order or directive of general applicability to the industries in which the Company operates
as described in the Company’s Annual Report on Form 10-K for the year ended August 31, 2023) applicable to the Company or any of
its Subsidiaries by, or is a recipient of any supervisory letter from or has adopted any resolutions at the request of any Governmental
Entity that in any such case restricts in any respect the conduct of its business or that in any manner relates to its capital adequacy,
its policies, its management or its business (each, a “Company Regulatory Agreement”), or (ii) has, since August 31,
2020, been advised by any Governmental Entity that it is considering issuing or requesting any such Company Regulatory Agreement.
Section 4.9. Taxes
and Tax Returns.
(a) Except
for the tax returns due for the fiscal year ended August 31, 2023, for which no additional taxes are due and those matters that have not
had and would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect on the Company, (i)
each of the Company and its Subsidiaries has duly and timely filed all Tax Returns required to be filed by it and has duly paid or made
adequate provision for the payment of all Taxes and other governmental charges which have been incurred (including, without limitation,
if and to the extent applicable, those due in respect of its properties, income, business, capital stock, deposits, franchises, licenses,
sales and payrolls), and (ii) all such Tax Returns are accurate and complete in all respects. Neither the Company nor any of its Subsidiaries
is currently the beneficiary of any extension of time within which to file any material Tax Return. There are no disputes pending related
to, or claims asserted for, Taxes or assessments upon the Company or any of its Subsidiaries for which the Company does not have adequate
reserves. Each of the Company and its Subsidiaries has withheld or collected all Taxes required to be collected or withheld by it, and
all such Taxes have been paid to the appropriate governmental authorities or set aside in appropriate accounts for future payment when
due, and each of the Company and its Subsidiaries has complied with all material information reporting requirements relating thereto.
There are no liens for Taxes upon any property or assets of the Company or its Subsidiaries except liens for current Taxes not yet due.
There are no outstanding agreements or waivers extending the statutory period of limitation applicable to any Taxes of the Company or
any of its Subsidiaries for any period. Neither the Company nor any of its Subsidiaries has been a “distributing corporation”
or a “controlled corporation” in a distribution intended to qualify under Section 355(a) of the Code. Neither the Company
nor any of its Subsidiaries is a party to any Tax sharing, allocation or indemnification agreement or arrangement. Neither the Company
nor any of its Subsidiaries has been a member of an affiliated group filing a consolidated, combined or unitary Tax Return (other than
the affiliated group of which the Company is the common parent) or has any liability for the Taxes of any person (other than the Company
or its Subsidiaries) under Treasury Regulation § 1.1502-6 (or any similar provision of state, local or foreign law). Neither the
Company nor any of its Subsidiaries has been a U.S. real property holding corporation within the meaning of Section 897(c)(2) of the Code
during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code.
(b) Neither
the Company nor any of its Subsidiaries is a party to any agreement, contract, arrangement or plan that has resulted or would result,
separately or in the aggregate, in the payment of any amount that will not be fully deductible as a result of Section 162(m) of the Code
(or any similar provision of state, local or foreign law).
(c) As
used in this Agreement, the term “Tax” or “Taxes” means all federal, state, local and foreign income,
excise, gross receipts, gross income, ad valorem, profits, gains, property, capital, sales, transfer, use, payroll, employment,
severance, withholding, duties, intangibles, franchise, backup withholding and other taxes, charges, levies or like assessments together
with all penalties and additions to tax and interest thereon, and the term “Tax Return” means any return, declaration,
report, claim for refund, information return or statement relating to Taxes.
Section 4.10. Certain
Other Tax Matters. Neither the Company nor any of its Subsidiaries has taken or agreed to take any action, has failed to take any
action or knows of any fact, agreement, plan or other circumstance, in each case that could reasonably be expected to prevent the
Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.
Section 4.11. Employees.
(a) Set
forth on Section 4.11(a) of the Company Disclosure Schedule is a true and complete list of each Company Benefit Plan but excluding government-sponsored
programs. For purposes of this Agreement, “Company Benefit Plan” means any employee benefit plan, program, policy,
practices, agreement or other arrangement providing benefits to any current or former employee, officer, director or consultant of the
Company or any of its Subsidiaries or any beneficiary or dependent thereof that is sponsored or maintained by the Company or any of its
Subsidiaries or to which the Company or any of its Subsidiaries contributes or is obligated to contribute, whether or not written, including
without limitation any employee welfare benefit plan within the meaning of Section 3(1) of ERISA, any employee pension benefit plan within
the meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA) and any bonus, incentive, deferred compensation, vacation,
stock purchase, stock option, severance, employment, change of control or fringe benefit plan, program, policy, practices, agreement or
other arrangement, but excluding any government-sponsored programs (e.g., social security or national health coverage).
(b) The
Company has heretofore made available to Parent true and complete copies of each of the Company Benefit Plans and (i) the actuarial report
for such Company Benefit Plan (if applicable) for each of the last two years, (ii) the most recent determination letter from the Internal
Revenue Service (if applicable) for such Company Benefit Plan, (iii) the summary plan description for such Company Benefit Plan (if any),
and (iv) the Form 5500 for such Company Benefit Plan (if applicable) for each of the last two years. Except as specifically provided in
the foregoing documents made available to Parent or as required by this Agreement, there are no amendments to any Company Benefit Plan
that have been adopted or approved nor has the Company or any of its Subsidiaries undertaken to make any such amendments or to adopt or
approve any new Company Benefit Plan.
(c) (i)
Each of the Company Benefit Plans has been operated and administered in all material respects in compliance with applicable laws, including,
but not limited to, ERISA and the Code, (ii) each Company Benefit Plan has been administered in all material respects in accordance with
its terms, (iii) each of the Company Benefit Plans intended to be “qualified” within the meaning of Section 401(a) of the
Code has received a favorable determination letter from the Internal Revenue Service (except for such Company Benefit Plans that (A) have
not yet received a determination letter but for which the remedial amendment period for submitting a determination letter has not yet
expired or (B) are maintained under a prototype plan (or similar form or pattern plan) for which the Internal Revenue Service has issued
a favorable opinion letter (or similar approval letter) that, in the Company’s reasonable judgment, adequately addresses such plan’s
qualified status), and there are no existing circumstances nor any events that have occurred that would be reasonably expected to affect
adversely the qualified status of any such Company Benefit Plan, (iv) no Company Benefit Plan is subject to Title IV of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) or Section 302 of ERISA or Section 412 or 4971 of the Code, (v) no
Company Benefit Plan provides benefits coverage, including, without limitation, death or medical benefits (whether or not insured), with
respect to current or former employees or directors of Company or its Subsidiaries beyond the last day of the month in which their retirement
or other termination of service occurred, other than coverage mandated by applicable law and other than any post-termination exercise
periods for stock options, (vi) no material liability under Title IV of ERISA has been incurred by the Company, its Subsidiaries or any
trade or business, whether or not incorporated (a “Company ERISA Affiliate”), which together with the Company would
be deemed a “single employer” within the meaning of Section 4001 of ERISA that has not been satisfied in full, and no condition
exists that presents a material risk to the Company, its Subsidiaries or any Company ERISA Affiliate of incurring a material liability
thereunder, (vii) no Company Benefit Plan is a “multiemployer pension plan” (as such term is defined in Section 3(37) of ERISA)
(a “Multiemployer Plan”) or a plan that has two or more contributing sponsors at least two of whom are not under common
control (a “Multiple Employer Plan”), within the meaning of Section 4063 of ERISA and none of the Company and its Subsidiaries
nor any of their respective ERISA Affiliates has, at any time during the last six years, contributed to or been obligated to contribute
to any Multiemployer Plan or Multiple Employer Plan, (viii) all contributions or other amounts payable by the Company or its Subsidiaries
with respect to each Company Benefit Plan and all premiums due or payable with respect to insurance policies funding any Company Benefit
Plan for any period through the date hereof have been timely made or paid in full or, to the extent not required to be made or paid on
or before the date hereof, have been fully reflected on the Company’s financial statements, (ix) none of the Company, its Subsidiaries
or, to the Company’s knowledge, any other person, including any fiduciary, has engaged in a transaction in connection with which
the Company, its Subsidiaries or any Company Benefit Plan will be subject to either a material civil penalty assessed pursuant to Section
409 or 502(i) of ERISA or a material Tax imposed pursuant to Section 4975 or 4976 of the Code, (x) to the best knowledge of the Company
there are no pending, threatened or anticipated claims (other than routine claims for benefits) by, on behalf of or against any of the
Company Benefit Plans or any trusts related thereto and (xi) each individual who renders services to the Company or any of its Subsidiaries
who is classified by the Company or such Subsidiary, as applicable, as having the status of an independent contractor or other non-employee
status for any purpose (including for purposes of taxation and tax reporting and under Company Benefit Plans) is properly so characterized.
(d) Section
4.11(d) of the Company Disclosure Schedule sets forth (i) an accurate and complete description of each provision of any Company Benefit
Plan under which the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby could (either
alone or in conjunction with any other event) result in, cause the accelerated vesting, funding or delivery of, or increase the amount
or value of, any payment or benefit to any employee, officer or director of the Company or any of its Subsidiaries, or could limit the
right of the Company or any of its Subsidiaries to amend, merge, terminate or receive a reversion of assets from any Company Benefit Plan
or related trust, and (ii) to the Company’s knowledge a good faith estimate of the maximum amount of the “excess parachute
payments” within the meaning of Section 280G of the Code that could become payable by the Company and its Subsidiaries in connection
with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
(e) Except
to the extent required by any Company Benefit Plan or by operation of the provisions of any individual employment or change in control
agreement previously disclosed to Parent and set forth in Section 4.11(e) of the Company Disclosure Schedule, as of the date hereof, none
of the Company, the Company’s Board of Directors or the Compensation Committee of the Company’s Board of Directors (the “Compensation
Committee”) has taken any action to accelerate the vesting of any stock options or other equity-based compensation awards in
connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. Prior to the
date hereof, the Compensation Committee has amended the Deferred Compensation Plan for Employees and the Deferred Compensation Plan for
Non-Employee Directors so as not to require the Compensation Committee to direct the Company to establish an irrevocable trust nor to
contribute any cash or shares of Company Common Stock to such trust to satisfy the Company’s obligations under such plans.
Section 4.12. Securities
Laws Matters.
(a) With
respect to each Annual Report on Form 10-K and each Quarterly Report on Form 10-Q included in the Company Reports filed since January
1, 2020, the financial statements and other financial information included in such reports fairly present (within the meaning of the Sarbanes-Oxley
Act of 2002) in all material respects the financial condition and results of operations of the Company as of, and for, the periods presented
in the Company Reports.
(b) The
Company’s principal executive officer and its principal financial officer have disclosed, based on their most recent evaluation,
to the Company’s auditors and the audit committee of the Board of Directors of the Company (i) all significant deficiencies in the
design or operation of internal controls which could adversely affect the Company’s ability to record, process, summarize and report
financial data and have identified for the Company’s auditors any material weaknesses in internal controls and (ii) any fraud, whether
or not material, that involves management or other employees who have a significant role in the Company’s internal controls.
(c) The
Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-14 under the Exchange Act);
such disclosure controls and procedures are designed to ensure that material information relating to the Company, including its consolidated
Subsidiaries, is made known to the Company’s principal executive officer and its principal financial officer by others within those
entities, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; and, to the
Company’s knowledge, such disclosure controls and procedures are effective in timely alerting the Company’s principal executive
officer and its principal financial officer to material information required to be included in the Company’s periodic reports required
under the Exchange Act.
Section 4.13. Compliance
with Applicable Law, Permits and Licenses.
(a) Neither
the Company nor any of its Subsidiaries (i) is in any material respect in conflict with, or in default or violation in any material respect
of, or (ii) has since December 31, 2019 been charged by any Governmental Entity with a violation of: any material law, rule, regulation,
order, judgment or decree applicable to the Company or any of its Subsidiaries or by which its or any of their respective properties is
bound or affected.
(b) The
Company, its Subsidiaries and their respective employees hold all material permits, licenses, variances, exemptions, orders, registrations
and approvals of all Governmental Entities which are required for the operation of the businesses of the Company and its Subsidiaries,
(the “Company Permits”). Section 4.13(b) of the Company Disclosure Schedule contains a list of the Company Permits.
Each of the Company and its Subsidiaries is, and for the past five years has been, in compliance in all material respects with the terms
of the Company Permits, all of the Company Permits are in full force and effect and no suspension, revocation or material modification
of any of them is pending or, to the knowledge of the Company, threatened, nor, to the knowledge of the Company, do reasonable grounds
exist for any such action.
Section 4.14. Intellectual
Property; Proprietary Rights; Employee Restrictions; Assets.
(a) All
material (i) copyrights, including copyright registrations and copyright applications, (ii) trademarks, including trademark registrations
and applications for registration, (iii) patents and patent applications, (iv) service marks, including service mark registrations and
applications for registration, (v) trade names, (vi) Internet domain names, (vii) databases, (viii) computer programs, including source
code, object code, algorithms, structure, display screens, layouts, development tools, instructions, templates, and computer software
user interfaces, (ix) know-how, (x) trade secrets, (xi) customer lists, (xii) proprietary technology, (xiii) processes and formulae, (xiv)
marketing materials created by the Company or its Subsidiaries, (xv) inventions, (xvi) trade dress, (xvii) logos and (xviii) designs (collectively,
“Intellectual Property”) used by the Company or its Subsidiaries in their respective businesses (collectively, “Company
Intellectual Property”) are owned by the Company or such Subsidiaries by operation of law, or have been validly assigned to
the Company or such Subsidiaries (“Company Owned Intellectual Property”) or the Company or its Subsidiaries otherwise
have the right to use such Intellectual Property in their business as currently conducted (“Company Licensed Intellectual Property”).
The Company Intellectual Property is sufficient in all material respects to carry on the business of the Company as presently conducted.
The Company or one of its Subsidiaries has exclusive ownership of all Company Owned Intellectual Property used by the Company or its Subsidiaries,
or is entitled to use all Company Licensed Intellectual Property, in the Company’s business as presently conducted, subject, in
the case of Company Licensed Intellectual Property, to the terms of the license agreements covering such Company Licensed Intellectual
Property. The Company and its Subsidiaries, and to the knowledge of the Company, the other parties thereto are not in material breach
of any of the license agreements covering the Company Licensed Intellectual Property. The present business activities or products of the
Company do not infringe in any material respect any Intellectual Property of others (“Third Party Intellectual Property”).
(b) To
its knowledge, the Company has not received any notice or other claim from any third party asserting that any of the Company’s present
activities infringe or may infringe any Third Party Intellectual Property of such third party.
(c) Except
as would not, individually or in the aggregate, have a Material Adverse Effect on the Company, (i) the Company has the right to use all
trade secrets, customer lists, hardware designs, programming processes, software and other information material to its business as presently
conducted, (ii) the Company has taken all reasonable measures in accordance with customary industry practice to protect and preserve the
security and confidentiality of its trade secrets and other confidential information, (iii) to the knowledge of the Company, all trade
secrets and other confidential information of the Company that are material to its business are not part of the public domain or knowledge,
nor, to the knowledge of the Company, have they been misappropriated by any person having an obligation to maintain such trade secrets
or other confidential information in confidence for the Company, and (iv) to the knowledge of the Company, no employee or consultant of
the Company or any of its Subsidiaries has used any trade secrets or other confidential information of any other person in the course
of their work for the Company or such Subsidiary.
(d) To
the knowledge of the Company, no university or government agency (whether federal or state) has any claim of right to or ownership in
the Company Owned Intellectual Property. The Company is not aware of any material infringement, dilution or misappropriation by others
of the Company Owned Intellectual Property, or any material violation of the confidentiality of any of its proprietary information. To
the Company’s knowledge, the Company is not making unlawful use of any confidential information or trade secrets of any past or
present employees of the Company or any of its Subsidiaries.
(e) Each
of the Company and its Subsidiaries has good and valid title to, or valid leasehold interests in, all its properties and other assets
(other than Company Intellectual Property, which is addressed in Section 4.14(a) through Section 4.14(d)) as are necessary in the conduct
of, or material to the business of the Company and its Subsidiaries as currently conducted, except for defects in title, easements, restrictive
covenants and similar encumbrances that, either individually or in the aggregate, do not interfere in any material respect with the Company’s
conduct of its business or affect in any material respect the value of such property or other assets. All such properties and other assets,
other than properties or other assets in which the Company or any of its Subsidiaries has a leasehold interest, are owned by the Company
or a Subsidiary free and clear of all Liens, except for Liens that, either individually or in the aggregate, have not had or would not
have a material adverse effect on the use, utility or value of the applicable property or asset.
(f) (i)
Each lease of real or personal property which is material to the conduct of the business of the Company and its Subsidiaries and to which
the Company or its Subsidiaries is a party is valid and binding on the Company or any of its Subsidiaries, as applicable, and in full
force and effect, (ii) the Company and each of its Subsidiaries have in all material respects performed all material obligations required
to be performed by it to date under each such lease, and (iii) no event or condition exists which constitutes or, after notice or lapse
of time or both, will constitute, a material default on the part of the Company or any of its Subsidiaries under any such lease.
Section 4.15. Certain
Contracts; Leases.
(a) Neither
the Company nor any of its Subsidiaries is a party to or bound by any contract, arrangement, commitment or understanding (whether written
or oral) (i) which is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) to be
performed after the date of this Agreement that has not been filed or incorporated by reference in the Company Reports, (ii) which materially
restricts the conduct of any line of business by the Company or upon consummation of the transactions contemplated by this Agreement will
restrict the conduct of any line of business by Parent, or Parent’s Subsidiaries or the ability of Parent or any of Parent’s
Subsidiaries to engage in any line of business, (iii) which upon consummation of the transactions contemplated by this Agreement will
subject any of the Company or any of its affiliates to any exclusivity arrangements with or to a labor union or guild (including any collective
bargaining agreement), or (iv) (other than any plan or agreement covered by Section 4.11 hereof) any of the benefits of which will be
increased, or the vesting of the benefits of which will be accelerated, by the occurrence of any stockholder approval or the consummation
of the transactions contemplated by this Agreement, or the value of any of the benefits of which will be calculated on the basis of any
of the transactions contemplated by this Agreement. Each contract, arrangement, commitment or understanding of the type described in this
Section 4.15(a), together with any material license or contract relating to Company Intellectual Property, whether or not set forth in
the Company Disclosure Schedule, is referred to herein as a “Company Contract,” and neither the Company nor any of
its Subsidiaries knows of, or has received notice of, any material violation of the above by any of the other parties thereto. The Company
has heretofore made available to Parent a true and complete copy of each Company Contract.
(b)
(i) Each Company Contract is valid and binding on the Company or any of its Subsidiaries, as applicable, and in full force and effect,
(ii) the Company and each of its Subsidiaries has in all material respects performed all material obligations required to be performed
by it to date under each Company Contract, and (iii) no event or condition exists which constitutes or, after notice or lapse of time
or both, will constitute, a material default on the part of the Company or any of its Subsidiaries under any such Company Contract.
(c) Section
4.15(c) of the Company Disclosure Schedule sets forth a complete and accurate list and description of all real property leased, subleased
or otherwise occupied by the Company or its Subsidiaries (the “Leased Real Property”). The Company and its Subsidiaries
do not own any real property. All of the leases or subleases of the Leased Real Property (the “Leases”) are valid,
binding and in full force and effect. The Company and its Subsidiaries have not subjected any Lease to any material mortgage, pledge,
lien, encumbrance, sublease, assignment, license, or other agreement granting to any third party any material interest in such Lease or
any right to the use or occupancy of any Leased Real Property. The Company or a Subsidiary, as lessee under each Lease, is now in possession
of all of the applicable Leased Real Property.
Section 4.16.
Undisclosed Liabilities. Except for (a) those liabilities that are disclosed in the footnotes to or reserved against on the Company
Audited Financial Statements (and only to the extent of such disclosure or reserve), (b) liabilities incurred pursuant to this
Agreement and the transactions contemplated hereby or for fees and expenses incurred in connection with this Agreement and the
consummation of the transactions contemplated hereby, (c) liabilities incurred in the ordinary course of business consistent with
past practice which have not had or would not have, individually or in the aggregate, a Material Adverse Effect on the Company and
(d) other immaterial liabilities not incurred in the ordinary course of business which in the aggregate are not material, since
August 31, 2023, neither the Company nor any of its Subsidiaries has incurred any liability of any nature whatsoever (whether
absolute, accrued, determined, determinable, contingent or otherwise and whether due or to become due).
Section 4.17. Insurance.
The Company has made available to Parent a copy of all material insurance policies and all material self insurance programs and
arrangements relating to the business, assets and operations of the Company and its Subsidiaries (the “Insurance
Policies”). Each of such Insurance Policies is in full force and effect as of the date of this Agreement. From December
31, 2022 through the date hereof, none of the Company or any of its Subsidiaries has received any notice or other communication
regarding any actual or possible (a) cancellation of any Insurance Policy that has not been renewed in the ordinary course without
any lapse in coverage, (b) invalidation of any Insurance Policy, (c) refusal of any coverage or rejection of any material claim
under any Insurance Policy, or (d) material adjustment in the amount of the premiums payable with respect to any Insurance
Policy.
Section 4.18.
Environmental Liability. There are no legal, administrative, arbitral or other proceedings, claims, actions, causes of action,
private environmental investigations or remediation activities or governmental investigations of any nature seeking to impose, or
that reasonably could result in the imposition, on the Company of any liability or obligation arising under common law or under any
local, state or federal environmental statute, regulation or ordinance including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), pending or, to the
Company’s knowledge, threatened against the Company, which liability or obligation will have, either individually or in the
aggregate, a Material Adverse Effect on the Company. To the knowledge of the Company, there is no reasonable basis for any such
proceeding, claim, action or governmental investigation that would impose any liability or obligation that will have, either
individually or in the aggregate, a Material Adverse Effect on the Company. The Company is not subject to any agreement, order,
judgment, decree, letter or memorandum by or with any court, governmental authority, regulatory agency or third party imposing any
liability or obligation with respect to the foregoing that will have, either individually or in the aggregate, a Material Adverse
Effect on the Company.
Section 4.19. State
Takeover Law. The Company has taken all appropriate actions so that the restrictions on business combinations contained in the WYBCL
will not apply with respect to or as a result of the execution or performance of this Agreement or the transactions contemplated by
this Agreement, including the execution and performance of the Voting Agreements.
Section 4.20.
Registration Statement. None of the information supplied or to be supplied by the Company in writing for inclusion or incorporation
by reference in the Registration Statement will, at the time such Registration Statement becomes effective, contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the
statements therein not misleading.
Section 4.21.
Transactions with Affiliates. Except as set forth in the Company Reports or compensation or other employment arrangements in the
ordinary course, or arrangements incident thereto not exceeding an aggregate of $5,000 with respect to any officer, there are no
transactions, agreements, arrangements or understandings between the Company or any of its Subsidiaries, on the one hand, and any
affiliate (including any officer or director) thereof, but not including any wholly owned Subsidiary of the Company, on the other
hand (“Company Affiliate Transactions”).
Article
V.
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
Except as disclosed in the
relevant section of the Parent disclosure schedule delivered to the Company concurrently herewith (the “Parent Disclosure Schedule”)
(it being understood that the listing or setting forth of an item in one section of the Parent Disclosure Schedule shall be deemed to
be a listing or setting forth in another section or sections of the Parent Disclosure Schedule to the extent that the relevance of the
information set forth in one section of the Parent Disclosure Schedule is readily apparent to be applicable to such other section or sections),
as an inducement to the Company entering into this Agreement and completing the transactions contemplated hereby, Parent and Merger Sub
hereby represent and warrant to the Company as follows:
Section 5.1. Corporate
Organization. Each of Parent, Merger Sub and Parent’s subsidiaries is duly organized and validly existing as a corporation in
good standing under the laws of the state of its incorporation. Each of Parent, Merger Sub and the Parent’s subsidiaries has
the corporate power and authority to own or lease all of its properties and assets and to carry on its business as it is now being
conducted, and is duly licensed or qualified to do business in each jurisdiction in which the nature of the business conducted by it
or the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified would not, either individually or in the aggregate, have a Material Adverse
Effect on Parent.
Section 5.2.
Capitalization. As of the date hereof, the authorized capital stock of Parent consists of 750,000,000 shares of Parent Common Stock,
par value $0.0001 per share and 25,000,000 shares of preferred stock, par value $0.0001 per share (“Parent Preferred
Stock”). As of the date hereof, (a) 13,819,889 shares of Parent Common Stock were issued and outstanding and no shares of
Parent Preferred Stock were issued and outstanding. As of the date hereof, (x) there were no options, warrants, rights, puts, calls,
commitments or other contracts, arrangements or understandings issued by or binding upon Parent requiring or providing for, and (y)
there are no outstanding debt or equity securities of Parent which upon the conversion, exchange or exercise thereof would require
or provide for the issuance by Parent of any new or additional shares of Parent Common Stock or Parent Preferred Stock (or any other
securities of Parent) which, with or without notice, lapse of time and/or payment of monies, are or would be convertible into or
exercisable or exchangeable for Parent Common Stock or Parent Preferred Stock (or any other securities of Parent). Since January 1,
2024 through the date hereof, Parent has not issued any shares of its capital stock or any securities convertible into or
exercisable for any shares of its capital stock, other than pursuant to the exercise of employee stock options granted prior to such
date and the vesting of restricted stock units. The authorized capital stock of Merger Sub consists of 1,000 shares of Merger Sub
Common Stock, of which, as of the date hereof, 100 shares are issued and outstanding and are owned of record and beneficially by
Parent. The shares of Parent Common Stock to be issued in the Merger will, upon issuance, be validly issued, fully paid,
nonassessable, and, except as disclosed in the Parent Registration Statement, not subject to any preemptive rights, free and clear
of all security interests, liens, claims, pledges or other encumbrances of any nature whatsoever (except for any such rights,
securities interests, liens, claims, pledges or other encumbrances arising from any action taken by a stockholder of the Company and
except for any encumbrances imposed by federal, state or foreign securities laws) and with no personal liability attaching to the
ownership thereof.
Section 5.3. Authority;
No Violation.
(a) Each
of Parent and Merger Sub has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by Parent and Merger Sub and the consummation by them of the transactions
contemplated hereby, including the Merger, have been duly and validly authorized. This Agreement has, by unanimous vote, been duly and
validly approved and declared advisable by the Board of Directors of each of Parent and Merger Sub. No other corporate proceedings on
the part of Parent and Merger Sub, other than the approval by Parent as the sole stockholder of Merger Sub of this Agreement (which shall
be obtained prior to the Effective Time), are necessary to approve this Agreement and to consummate the transactions contemplated hereby.
This Agreement has been duly and validly executed and delivered by Parent and Merger Sub and (assuming due authorization, execution and
delivery by the Company) constitutes a valid and binding obligation of each of Parent and Merger Sub, enforceable against each in accordance
with its terms (except as may be limited by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of
creditors generally and the availability of equitable remedies).
(b) Neither
the execution and delivery of this Agreement by each of Parent and Merger Sub, nor the consummation by Parent and Merger Sub of the transactions
contemplated hereby, nor compliance by Parent or Merger Sub with any of the terms or provisions of this Agreement will (i) violate any
provision of the Restated Certificate of Incorporation or Bylaws of Parent, or the Certificate of Incorporation or Bylaws of Merger Sub,
or, (ii) subject to the making of the filings referred to in Section 5.5 and the effectiveness of such filings and/or receipt of the consents
and approvals in connection therewith, (A) violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree or injunction
applicable to Parent or Merger Sub or (B) violate, conflict with, result in a breach of any provision of or the loss of any benefit under,
constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination
of or a right of termination or cancellation under, accelerate the performance required by, result in the creation of any Lien upon any
of the respective properties or assets of Parent or any of its Subsidiaries under, or require any increased payment under, any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which Parent or any of its Subsidiaries is a party, or by which they or any of their respective properties or assets may
be bound or affected, except (in the case of clause (ii) above) for such violations, conflicts, breaches, defaults, terminations, cancellations,
accelerations, liens or payments which, individually or in the aggregate, will not have a Material Adverse Effect on Parent.
Section 5.4. SEC
Reports; Financial Statements.
(a) Parent
has made available to the Company an accurate and complete copy of each (i) report, schedule, final registration statement, prospectus
and definitive proxy statement filed by Parent with the SEC on or after January 1, 2022 and prior to the date hereof pursuant to the Securities
Act or the Exchange Act (the “Parent Reports”), which are all the forms, reports and documents required to be filed
by Parent with the SEC since such date, provided that, if Parent amends any of the Parent Reports, the fact of the filing of such
amendment shall not, in and of itself, be deemed to mean or imply that any representation or warranty in this Agreement was not true when
made or became untrue thereafter; and (ii) communication mailed by Parent to its stockholders since January 1, 2022 and prior to the date
hereof. As of their respective dates, the Parent Reports and communications (A) complied in all material respects with requirements of
the Securities Act or the Exchange Act, as the case may be, and the published rules and regulations of the SEC thereunder applicable thereto,
and (B) did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances in which they were made, not misleading, except that information
as of a later date (but before the date hereof) shall be deemed to modify information as of an earlier date.
(b) Parent
has previously made available to the Company copies of (i) the consolidated balance sheets (the “Parent Audited Balance Sheets”)
of Parent and its Subsidiaries as of December 31, 2022 and December 31, 2023, and the related consolidated statements of operations, shareholders’
equity and cash flows for the fiscal years ended December 31, 2022 and December 31, 2023, as reported in Parent’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC under the Exchange Act (such financial statements included
in such Annual Report, together with the Company Audited Balance Sheets, the “Parent Audited Financial Statements”),
with respect to Parent; and (ii) the consolidated balance sheet of Parent and its Subsidiaries as of March 31, 2024 and the related consolidated
statements of operations and cash flows for the quarter ended March 31, 2024 (the “Parent March Financials”). in each
case, accompanied by the audit report of RBSM LLP, independent public accountants. The Parent Audited Financial Statements and Parent
March Financials (including in each case the related notes, where applicable) (i) fairly present in all material respects the consolidated
financial position of Parent and its Subsidiaries as at the respective dates thereof and the consolidated results of operations, cash
flows and, in the case of the Parent Audited Financial Statements, changes in shareholders’ equity, of Parent and its Subsidiaries
for the periods indicated (subject, in the case of the unaudited financial statements, to normal audit adjustments which are not expected,
individually or in the aggregate, to be material); (ii) have been prepared consistent with the books and records of Parent and its Subsidiaries
and consistent with Parent’s accounting policies and procedures; (iii) comply as to form in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC with respect thereto; and (iv) have been prepared in all
material respects in accordance with GAAP consistently applied during the periods involved, except, in each case, as indicated in such
statements or in the notes thereto. The books and records of Parent and its Subsidiaries have been, and are being, maintained in all material
respects in accordance with GAAP (to the extent applicable) and any other applicable legal and accounting requirements and reflect only
actual transactions.
(c) With
respect to each Annual Report on Form 10-K and each Quarterly Report on Form 10-Q included in the Parent Reports filed since January 1,
2023 and prior to the date hereof, the financial statements and other financial information included in such reports fairly present (within
the meaning of the Sarbanes-Oxley Act of 2023) in all material respects the financial condition and results of operations of Parent as
of, and for, the periods presented in the Parent Reports.
Section 5.5. Consents
and Approvals. Except for (a) the filing of the pre-merger notification report under the HSR Act, (b) the filing with the SEC of (i)
the Proxy Statement/Prospectus, (ii) a Registration Statement of Parent on Form S-4 with respect to shares of Parent Common Stock
which may be issued to stockholders of the Company in the Merger (together with any amendments or supplements thereto, the
“Parent Registration Statement”) and (iii) such reports under the Exchange Act as may be required in connection
with this Agreement and the Voting Agreements and the transactions contemplated hereby and thereby, (c) such filings and approvals
as are required to be made or obtained under the securities or “Blue Sky” laws of various states in connection with the
issuance of the shares of Parent Common Stock pursuant to this Agreement, (d) the approval of this Agreement and the Merger by the
requisite vote of the stockholders of the Company, (e) the filings with any Governmental Entity as required under applicable law in
each case as expressly set forth in Section 5.5 of the Parent Disclosure Schedule, (f) the filing of the Certificate of Merger with
the Secretary of State of the State of Wyoming pursuant to the WYBCL, (g) consents and approvals previously obtained, (j) such
filings, consents and approvals in respect of the Company Permits (without giving effect to the materiality qualifier contained in
the definition thereof) as are required by applicable law, (h) the approval of the Charter Amendment and (i) such other filings the
failure of which to make would not have a Material Adverse Effect on Parent, no consents or approvals of or filings or registrations
with any Governmental Entity or third party are necessary in connection with (A) the execution and delivery by Parent or Merger Sub
of this Agreement and (B) the consummation by Parent or Merger Sub of the transactions contemplated hereby. As of the date hereof,
to Parent’s knowledge, there is no reason, relating to Parent and its Subsidiaries, the operation of their businesses or the
terms of this Agreement, why the receipt of any such consents or approvals will not be obtained in a customary time frame once
complete and appropriate filings have been made by the Company and Parent.
Section 5.6. Conduct of
Business. Merger Sub is a corporation formed solely for the purpose of consummating the Merger and the other transactions
contemplated hereby and has not engaged in any business activity except as contemplated by this Agreement and the transactions
contemplated hereby (including the Employment Agreements).
Section 5.7. Certain Tax
Matters. Parent has not taken or agreed to take any action, has not failed to take any action and does not know of any fact,
agreement, plan or other circumstance, in each case that could reasonably be expected to prevent the Merger from qualifying as a
“reorganization” within the meaning of Section 368(a) of the Code.
Section 5.8.
Registration Statement. None of the information supplied or to be supplied by Parent in writing for inclusion or incorporation by
reference in the Registration Statement will, at the time any Registration Statement becomes effective, contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
therein not misleading.
Section 5.9. Absence
of Certain Changes or Events.
(a) Since
December 31, 2023, no event or events have occurred which have had or would have, individually or in the aggregate, a Material Adverse
Effect on Parent.
(b) Since
December 31, 2023 through the date hereof, except as disclosed in the Parent Reports, Parent and its Subsidiaries have carried on their
respective businesses in all material respects in the ordinary course consistent with past practice.
Section 5.10. Legal
Proceedings. Except as disclosed in the Parent Reports, neither Parent nor any of its Subsidiaries is a party to any, and there are
no pending or, to Parent’s knowledge, threatened, legal, administrative, arbitral or other proceedings, claims, actions or
governmental or regulatory investigations of any nature against Parent or any of its Subsidiaries or challenging the validity or
propriety of the transactions contemplated by this Agreement, in each case which has had or would reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect on Parent.
Section 5.11. Compliance
with Applicable Laws. Except as disclosed in the Parent Reports or as would not, individually or in the aggregate, have a Material
Adverse Effect on Parent, neither Parent nor any of its Subsidiaries is in conflict with, or is in default or violation of, any law,
rule, regulation, order, judgment or decree applicable to Parent or any of its Subsidiaries or by which its or any of their
respective properties are bound or affected.
Article
VI.
CONDUCT OF BUSINESS PENDING THE MERGER
Section 6.1. Conduct of
Businesses Prior to the Merger Closing. Commencing upon execution of this Agreement and continuing through to the Closing, except as
expressly contemplated or permitted by this Agreement or as disclosed in Section 6.1 of the Company Disclosure Schedule, the Company
shall, and shall cause its Subsidiaries to (a) conduct its business in the ordinary course consistent with past practices and (b)
use reasonable best efforts to maintain and preserve intact its business organization and advantageous business relationships and to
retain the services of its key officers and key employees.
Section 6.2. Company
Forbearances. Commencing upon execution of this Agreement and continuing through to the Closing, except as set forth in Section 6.2
of the Company Disclosure Schedule or expressly contemplated by this Agreement, neither the Company nor Merger Sub shall, and the
Company shall not permit any of its Subsidiaries to, without the prior written consent of Parent (which consent or refusal shall not
be unreasonably delayed):
(a) incur
any indebtedness for borrowed money, assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations
of any other individual, corporation or other entity, or make any loan or advance;
(b) (i)
adjust, split, combine or reclassify any capital stock;
(ii) make,
declare or pay any dividend (other than (A) quarterly dividends paid on the Company Preferred Stock in accordance with the terms thereof,
which dividends the Company shall pay in cash and (B) dividends or distributions by a direct or indirect wholly owned Subsidiary of the
Company to its parent), or make any other distribution on, or directly or indirectly redeem, purchase or otherwise acquire or encumber,
any shares of its capital stock or any securities or obligations convertible (whether currently convertible or convertible only after
the passage of time or the occurrence of certain events) into or exchangeable for any shares of its capital stock, except in connection
with cashless exercises or similar transactions pursuant to the exercise of stock options issued and outstanding as of the date hereof
under the Company Stock Plans;
(iii) grant
any individual, corporation or other entity any right to acquire any shares of its capital stock;
(iv) issue
any additional shares of capital stock except pursuant to the exercise of stock options under the Company Stock Plans, the conversion
of shares of Company Preferred Stock into Company Common Stock or the exercise of Company Common Stock Warrants, in each case issued and
outstanding as of the date hereof and in accordance with the terms of such instruments; or
(v) amend
the terms of any Company Warrant;
(c) sell,
transfer, mortgage, encumber or otherwise dispose of any of its lines of business, material properties or assets to any individual, corporation
or other entity, other than to a wholly owned Subsidiary, or cancel, release or assign any indebtedness to any such person or any claims
held by any such person, except pursuant to contracts or agreements in force at the date hereof;
(d) except
pursuant to contracts or agreements in force at the date of this Agreement and made available to Parent prior to the date of this Agreement,
make any material investment or acquisition, whether by purchase of stock or securities, contributions to capital, property transfers,
or purchase of any property or assets of any other individual, corporation or other entity other than a wholly owned Subsidiary of the
Company or any wholly owned Subsidiary thereof;
(e) except
for transactions in the ordinary course of business consistent with past practice which would not reasonably be expected to have a Material
Adverse Effect on the Company, terminate, or amend or waive any material provision of, any Company Contract, as the case may be, or make
any material change in any instrument or agreement governing the terms of any lease or contract other than normal renewals of contracts
and leases without material adverse changes of terms, or its securities;
(f) except
in the ordinary course of business (other than for directors or officers of the Company) and at times and in amounts consistent with past
practice, or to the extent required by law or an existing agreement, increase in any manner the compensation or benefits of any of its
employees, directors, consultants, independent contractors or service providers, pay any pension, severance or retirement benefits not
required by any existing plan or agreement to any such employees, directors, consultants, independent contractors or service providers
or enter into, amend, alter, adopt, implement or otherwise commit itself to any compensation or benefit plan, program, policy, arrangement
or agreement including without limitation any pension, retirement, profit-sharing, bonus or other employee benefit or welfare benefit
plan, policy, arrangement or agreement or employment or consulting agreement with or for the benefit of any employee, director, consultant,
independent contractor or service provider or accelerate the vesting of, or the lapsing of restrictions with respect to, any stock options
or other stock-based compensation or cause the funding of any rabbi trust or similar arrangement;
(g) settle
any material claim, action or proceeding;
(h) amend
its certificate of incorporation or its bylaws or, in the case of the Company, enter into any agreement with its stockholders in their
capacity as such;
(i) other
than in the ordinary course of business consistent with past practice, (i) sell or enter into any material license agreement with respect
to any Company Intellectual Property used by it in its business with any person or entity or buy or enter into any material license agreement
with respect to Third Party Intellectual Property of any person or entity; (ii) sell or transfer to any person or entity any material
rights to any Company Intellectual Property Rights used by it in its business; or (iii) enter into or materially amend any Company Contract,
as the case may be, pursuant to which any other party is granted marketing or distribution rights of any type or scope with respect to
any material products of its or any of its Subsidiaries;
(j) enter
into any “non-compete” or similar agreement that would materially restrict the businesses of the Surviving Corporation or
its Subsidiaries following the Effective Time or that would in any way restrict the businesses of Parent and its Subsidiaries (excluding
the Surviving Corporation and its Subsidiaries);
(k) adopt
a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization
of such entity;
(l) implement
or adopt any change in its accounting principles, practices or methods, other than as consistent with or as may be required by law, GAAP
or regulatory guidelines;
(m) settle
or compromise any material liability for Taxes, file any material Tax Return (including any amended Tax Return), make any material Tax
election or change any method of accounting for Tax purposes;
(n) enter
into any new, or amend or otherwise alter any current, Company Affiliate Transaction; or
(o) agree
to take, make any commitment to take, or adopt any resolutions of its board of directors in support of, any of the actions prohibited
by this Section 6.2.
Section 6.3. Parent
Obligations. During the period from the date hereof to the Effective Time: (a) Parent shall not without the prior written consent of
the Company, adopt any amendments to its certificate of incorporation which would materially adversely affect the terms and
provisions of the Parent Common Stock or the rights of the holders of such shares; (b) without the Company’s consent, neither
Parent nor any of its affiliates shall, directly or indirectly, except pursuant to this Agreement or the Voting Agreements, purchase
or otherwise acquire any Company Securities or otherwise intentionally vote or acquire the right to vote Company Securities; and (c)
Parent shall cause Merger Sub to perform its obligations hereunder.
Section 6.4. Certain Tax
Matters. Commencing upon execution of this Agreement and continuing through to the Closing, each Party hereto shall use its
reasonable best efforts to cause the Merger to qualify, and will not knowingly take any action, cause any action to be taken, fail
to take any commercially reasonable action or cause any commercially reasonable action to fail to be taken, which action or failure
to act would reasonably be expected to prevent the Merger from qualifying as a “reorganization” within the meaning of
Section 368(a) of the Code. This Agreement is intended to constitute, and the parties hereto hereby adopt this Agreement as, a
“plan of reorganization” within the meaning of Treasury Regulation Sections 1.368-2(g) and 1.368-3(a).
Section 6.5. Other
Matters. Commencing upon the execution of this Agreement and continuing through the Closing, neither the Company nor Parent shall,
and each of them shall cause its respective Subsidiaries not to, take any action that is intended or would reasonably be expected to
result in (a) any of its representations and warranties (or, in the case of Parent, the representations and warranties of Parent and
Merger Sub) set forth in this Agreement being or becoming untrue in any material respect or in any respect in the case of
representations and warranties qualified by materiality or Material Adverse Effect on such Party at any time prior to the Effective
Time, (b) any of the conditions to the Merger set forth in Article VIII not being satisfied or (c) a violation of any provision of
this Agreement.
Article
VII.
ADDITIONAL AGREEMENTS
Section 7.1. Filings
Under Securities Laws. As promptly as practicable after the date hereof, Parent shall prepare and file with the SEC the Parent
Registration Statement, which will contain (i) the proxy statement/prospectus of Parent relating to the shares of Parent Common
Stock to be issued in connection with the Merger and the Parent Stockholder Meeting and (ii) the proxy statement of the Company
relating to the Company Stockholder Meeting (collectively, the “Proxy Statement/Prospectus”). Each of Parent and
the Company shall use their respective reasonable best efforts to have the Registration Statement declared effective under the
Securities Act as promptly as practicable after such filing, and the Company shall thereafter promptly mail or deliver the Proxy
Statement/Prospectus to its stockholders. Parent shall use its reasonable best efforts to obtain all necessary state securities law
or “Blue Sky” permits and approvals required to carry out the transactions contemplated by this Agreement, and the
Company shall cooperate with Parent and furnish all information concerning the Company and the holders of the Company Securities as
may be reasonably requested by Parent in connection with any such action.
Section 7.2. Access
to Information.
(a) Upon
reasonable notice and subject to applicable laws relating to the exchange of information, each of the Parties shall, and shall cause each
of their respective Subsidiaries to, afford to the officers, employees, accountants, counsel and other representatives of the other Parties,
access, during normal business hours during the period prior to the Effective Time, to all its properties, books, contracts, commitments
and records. Access shall be reasonably related to the purposes of verifying the representations and warranties of the other and preparing
for the Merger and the other matters contemplated by this Agreement. During such period, each of the Parties shall, and shall cause their
respective Subsidiaries to, make available to the other Parties (i) a copy of each report, schedule, registration statement and other
document filed or received by it during such period pursuant to the requirements of federal securities laws (other than reports or documents
which such party is not permitted to disclose under applicable law) and (ii) all other information concerning its business, properties
and personnel as such party may reasonably request. No Party shall be required to provide access to or to disclose information where such
access or disclosure would violate the rights of its customers, jeopardize the attorney-client privilege of the institution in possession
or control of such information or contravene any law, rule, regulation, order, judgment, decree, fiduciary duty or binding agreement entered
into prior to the date of this Agreement. The Parties will make appropriate substitute disclosure arrangements under circumstances in
which the restrictions of the preceding sentence apply.
(b) Each
of the Parties shall hold all information furnished by or on behalf of any other Party or any of such Party’s Subsidiaries or representatives
pursuant to Section 7.2(a) in confidence and in accordance with, the provisions of the Confidentiality Agreement between Parent and the
Company, dated as of January 16, 2024 (the “Confidentiality Agreement”). The Company acknowledges and agrees that the
execution, delivery and performance by Parent and its Affiliates of this Agreement, the Voting Agreements and the Employment Agreements
and the transactions contemplated hereby and thereby shall not be deemed a breach of Parent’s obligations under the Confidentiality
Agreement.
(c) No
investigation by any of the Parties or their respective representatives shall affect the representations and warranties of the other set
forth herein.
Section 7.3. Acquisition
Transactions.
(a) After
the date hereof and prior to the Effective Time or the earlier termination of this Agreement pursuant to the terms hereof, the Company
shall not, and shall not permit any of its Subsidiaries to, initiate, solicit, negotiate, knowingly encourage or provide confidential
information to facilitate, and the Company shall use its reasonable best efforts to cause any officer, director or employee of the Company,
or any attorney, accountant, investment banker, financial advisor or other agent retained by it or any of its Subsidiaries, not to initiate,
solicit, negotiate, knowingly encourage or provide non-public or confidential information to facilitate, any proposal or offer to acquire
more than twenty-five percent (25%) of the business, properties or assets of the Company and its Subsidiaries, or capital stock of the
Company or its Subsidiaries representing more than fifteen percent (15%) of the total voting power of all of such entity’s voting
securities, in each case whether by merger, purchase of assets, tender offer or otherwise, whether for cash, securities or any other consideration
or combination thereof (any such transactions being referred to herein as an “Acquisition Transaction”).
(b) Notwithstanding
the provisions of paragraph (a) above but subject to compliance with Section 7.3(c) and Section 7.3(d), (i) the Company or the Board of
Directors of the Company may, prior to receipt of the Company Stockholder Approval, (A) in response to an unsolicited bona fide written
offer or proposal with respect to a potential or proposed Acquisition Transaction (“Acquisition Proposal”) from a corporation,
partnership, person or other entity or group (a “Potential Acquirer”) which the Company’s Board of Directors
determines, in good faith (x) after consultation with its independent financial advisor, would reasonably be expected to result (if consummated
pursuant to its terms and which consummation is reasonably possible) in an Acquisition Transaction more favorable to the Company’s
stockholders than the Merger (a “Qualifying Proposal”) and (y) after having received and considered the advice of,
and after consultation with, its independent, outside legal counsel, the failure to take such action would constitute a breach of the
fiduciary duties of the Board of Directors of the Company under applicable law, furnish confidential or non-public information to (provided
that the Company shall have received from the Potential Acquirer a confidentiality agreement containing terms at least as stringent in
all material respects as the Confidentiality Agreement), and negotiate with, such Potential Acquirer and (B) resolve to accept, or recommend,
and, upon termination of this Agreement in accordance with Section 9.1(e), enter into agreements relating to, a Qualifying Proposal as
to which the Company’s Board of Directors has determined in good faith (I) after consultation with its independent financial advisor
would result in an Acquisition Transaction more favorable to the Company’s stockholders than the Merger and is reasonably capable
of being financed and consummated and (II) after having received and considered the advice of, and after consultation with, its independent,
outside legal counsel, the failure to take such action would constitute a breach of the fiduciary duties of the Board of Directors of
the Company under applicable law (such Qualifying Proposal being a “Superior Proposal”) and (ii) the Company’s
Board of Directors may take and disclose to the Company’s stockholders a position contemplated by Rule 14e-2 under the Exchange
Act or otherwise make disclosure required by the federal securities laws or their fiduciary duties, as determined in good faith by the
Board of Directors of the Company. It is understood and agreed that negotiations and other activities conducted in accordance with this
paragraph (b) shall not constitute a violation of paragraph (a) of this Section 7.3.
(c) The
Company shall promptly notify Parent orally and in writing after receipt of any Acquisition Proposal, substantive indication of interest
or request for non-public information relating to the Company or its Subsidiaries in connection with an Acquisition Proposal or for access
to the properties, books or records of the Company or any Subsidiary by any person or entity that after the date hereof informs the Board
of Directors of the Company or such Subsidiary that it is considering making, or has made, an Acquisition Proposal. Such notice to Parent
shall identify the offeror and indicate in reasonable detail the material terms and conditions of such proposal, indication of interest
or request. The Company shall promptly, but in no event later than one Business Day, keep Parent informed orally and in writing of any
material changes or developments with respect to any activities or discussions relating to an Acquisition Proposal, including any significant
change in the terms or status of such an Acquisition Proposal, indication of interest or request.
(d) The
Company shall immediately cease and cause to be terminated any activities, discussions or negotiations conducted prior to the date of
this Agreement with any parties other than the Parties with respect to any of the foregoing; provided, however, that neither the
Company nor any of its affiliates shall waive any standstill or confidentiality provisions.
(e) The
Company shall promptly provide to Parent any information regarding the Company or its Subsidiaries provided after the date hereof to any
corporation, partnership, person or other entity or group making an Acquisition Proposal, unless such information has been previously
provided to Parent.
(f) Subject
to compliance with the other provisions of this Section 7.3, Parent and Company shall not be prohibited from engaging or participating
in discussions, with the prior written consent of the other Party, with any person or group with respect to any proposal or offer to,
after the Closing Date, acquire the business, properties or assets of the Parent and its Subsidiaries, or capital stock of the Parent
or its Subsidiaries, in each case whether by merger, purchase of assets, tender offer or otherwise, whether for cash, securities or any
other consideration or combination thereof.
Section 7.4. Stockholders’
Approval.
(a) Subject
to the other provisions of this Section 7.4, the Company shall use reasonable best efforts to cause a special meeting of stockholders
of the Company (the “Company Stockholder Meeting”) to be held as soon as reasonably practicable after the date hereof
for the purpose of obtaining the Company Stockholder Approval (the “Company Stockholder Proposals”). The Company’s
Board of Directors shall use its reasonable best efforts to obtain from the stockholders of the Company the votes required by the WYBCL
and/or the Company Charter in favor of the approval of this Agreement and any other matters required thereby to be approved and shall
recommend to the stockholders of the Company that they so vote at the Company Stockholder Meeting or any adjournment or postponement thereof;
provided that the Company’s Board of Directors shall not be required to use such reasonable best efforts to obtain the vote
in favor of the approval of this Agreement and such other matters or to make or continue to make such recommendation if such Board of
Directors, after having received and considered the advice of, and after consultation with, its independent, outside legal counsel, has
determined that the making of such reasonable best efforts to obtain the vote in favor of the approval of this Agreement and such other
matters or making or continuing to make such recommendation would cause the members of the Company’s Board of Directors to breach
their fiduciary duties under applicable laws. Notwithstanding anything to the contrary in this Agreement, unless this Agreement is earlier
terminated in accordance with its terms, the Company shall be required to submit the Company Stockholder Proposals for approval by its
stockholders at the Company Stockholder Meeting, whether with or without the recommendation of the Company’s Board of Directors.
(b) Subject
to the other provisions of this Section 7.4, Parent shall use reasonable best efforts to cause a special meeting of stockholders of Parent
(the “Parent Stockholder Meeting”) to be held as soon as reasonably practicable after the date hereof for the purpose
of obtaining Parent Stockholder Approval (the “Parent Stockholder Proposals”). Parent’s Board of Directors shall
use its reasonable best efforts to obtain from the stockholders of Parent the votes required by the Nevada Revised Statutes (the “Nevada
Statutes”) and/or its Certificate of Incorporation and any other matters required thereby to be approved and shall recommend
to the stockholders of Parent that they so vote at Parent Stockholder Meeting or any adjournment or postponement thereof; provided
that Parent’s Board of Directors shall not be required to use such reasonable best efforts to obtain the vote in favor of such matters
or to make or continue to make such recommendation if such Board of Directors, after having received and considered the advice of, and
after consultation with, its independent, outside legal counsel, has determined that the making of such reasonable best efforts to obtain
the vote in favor of the approval of such matters or making or continuing to make such recommendation would cause the members of Parent’s
Board of Directors to breach their fiduciary duties under applicable laws. Notwithstanding anything to the contrary in this Agreement,
unless this Agreement is earlier terminated in accordance with its terms, Parent shall be required to submit Parent Stockholder Proposals
for approval by its stockholders at Parent Stockholder Meeting, whether with or without the recommendation of Parent’s Board of
Directors.
Section 7.5. Legal
Conditions to the Merger.
(a) Each
of Parent and the Company shall, and shall cause their respective Subsidiaries to, use their reasonable best efforts (i) to promptly prepare
and file all necessary documentation, to effect all applications, notices, petitions and filings, to obtain as promptly as practicable
all permits, consents, approvals and authorizations of all third parties and Governmental Entities which are necessary or advisable to
consummate the transactions contemplated by this Agreement, and to comply with the terms and conditions of all such permits, consents,
approvals and authorizations of all such Governmental Entities, (ii) to take, or cause to be taken, all actions necessary, proper or advisable
to comply promptly with all legal requirements that may be imposed on such party or its Subsidiaries with respect to the Merger and, subject
to the conditions set forth in Article VIII, to consummate the transactions contemplated by this Agreement, and (iii) to obtain (and to
cooperate with the other party to obtain) any consent, authorization, order or approval of, or any exemption by, any Governmental Entity
and any other third party that is required to be obtained by Parent or the Company or any of their respective Subsidiaries in connection
with the Merger and the other transactions contemplated by this Agreement.
(b) Notwithstanding
anything to the contrary in paragraph (a) above or any other provision of this Agreement, (i) the Company shall not, without the prior
written consent of Parent, agree to divest any assets or businesses of the Company or any of its affiliates or to in any way limit the
ownership or operation of any business of the Company or its affiliates and (ii) neither Parent nor the Company shall be required to (x)
divest or encumber any assets or corporations of Parent or the Company, respectively, or any of their respective affiliates (provided
that in connection with the obtaining of the approval of any Governmental Entity of the transactions contemplated by this Agreement, the
Company shall, and shall cause its Subsidiaries to, agree to divest, encumber, and to divest or encumber, any of its or their assets or
corporations at the request of Parent and provided that such divestiture is conditioned upon consummation of the Merger) or (y) enter
into any agreements that in any way limit the ownership or operation of any business of Parent or the Company, respectively, or any of
their respective affiliates.
(c) Parent
and the Company shall have the right to review in advance, and, to the extent practicable, each will consult the other on, in each case
subject to applicable laws relating to the exchange of information, all the information relating to Parent or the Company, as the case
may be, and any of their respective Subsidiaries, which appears in any filing made with, or written materials submitted to, any third
party or any Governmental Entity in connection with the transactions contemplated by this Agreement, provided that Parent or the
Company can restrict access by the other Party to such documents that discuss the pricing or dollar value of the transactions contemplated
by this Agreement. In exercising the foregoing right, each of the Parties shall act reasonably and as promptly as practicable. The Parties
agree that they will consult with each other with respect to the obtaining of all permits, consents, approvals and authorizations of all
third parties and Governmental Entities necessary or advisable to consummate the transactions contemplated by this Agreement and each
party will keep the other apprised of the status of matters relating to completion of the transactions contemplated herein.
(d) The
Parent and the Company shall, upon request, furnish the other Parties with all information concerning themselves, their Subsidiaries and
their Subsidiaries’ affiliates, directors, officers and stockholders and such other matters as may be reasonably necessary or advisable
in connection with the Proxy Statement/Prospectus, the Registration Statement or any other statement, filing, notice or application made
by or on behalf of Parent or the Company or any of their respective Subsidiaries to any Governmental Entity in connection with the transactions
contemplated by this Agreement.
(e) The
Company and Parent shall, and Parent shall cause Merger Sub to, promptly advise the other Parties upon receiving any communication from
any Governmental Entity whose consent or approval is required for consummation of the transactions contemplated by this Agreement that
causes such Party to believe that there is a reasonable likelihood that any Requisite Regulatory Approval will not be obtained or that
the receipt of any such approval will be materially delayed.
Section 7.6. Closing
Board of Directors and Executive Officers.
(a) The Parties shall take all necessary action, including causing directors of Parent to
resign, if necessary, so that effective immediately after the Closing, Parent’s board of directors (the “Post-Closing
Parent Board”) will consist of five (5) individuals, (i) the two (2) persons that are designated by Parent prior to the
Closing (the “Parent Directors”), (ii) the two (2) persons that are designated by the Company prior to the
Closing (the “Company Directors”) and (iii) one person mutually agreed upon by Parent and the Company. At or
prior to the Closing, Parent will provide each Parent Director with a customary director indemnification agreement, in form and
substance reasonable acceptable to Parent and such Parent Director.
(b) Immediately
after the Closing, the Parties shall take all action necessary, so that the individuals as mutually agreed upon by Parent and the Company
shall be appointed to serve in the officer positions of the Parent (subject to the Employment Agreements).
Section 7.7. Additional
Agreements. In case at any time after the Effective Time any further action is necessary or desirable to carry out the purposes of
this Agreement, the proper officers and directors of each party to this Agreement and their respective Subsidiaries shall take all
such necessary action as may be reasonably requested by Parent.
Section 7.8. Advice of
Changes. Parent and the Company shall each promptly advise the other Party of any change or event having a Material Adverse Effect
on it, and Parent and the Company shall each promptly advise the other of any change or event that it believes is or constitutes or
is reasonably likely to be or constitute a material breach of any of its representations, warranties or covenants contained
herein.
Section 7.9. Section 16.
Prior to the Effective Time, each of the Company and Parent shall take all such steps as may be required to cause the transactions
contemplated by this Agreement, including any dispositions of Company Securities (including derivative securities with respect to
the Company Common Stock or Company Preferred Stock) and acquisitions of Parent Common Stock (including derivative securities with
respect to such Parent Securities) by each person who is or will be subject to the reporting requirements of Section 16(a) of the
Exchange Act with respect to the Company or Parent, as the case may be, to be exempt under Rule 16b-3 promulgated under the Exchange
Act.
Section 7.10. Directors’
and Officers’ Indemnification and Insurance.
(a) Parent
shall cause to be maintained in effect for six years from the Effective Time the current policies of the directors’ and officers’
liability Insurance Policies maintained by the Company (provided that Parent may substitute therefor policies of a reputable insurance
company, the terms of which provide at least the same coverage containing terms and conditions which are not less advantageous in any
material respect to the Company’s directors and officers currently covered) with respect to matters or events occurring prior to
the Effective Time to the extent available; provided, however, that in no event shall Parent or its affiliates be required
to expend more than an amount per year equal to 200% of current annual premiums paid by the Company (which amounts under current policies
are set forth in Section 7.10 of the Company Disclosure Schedule), whether expended over time or paid in a lump sum or otherwise, to maintain
or procure insurance coverage pursuant to this Section 7.10; and, provided, further that if the annual premiums of such
insurance coverage exceed such amount, Parent shall be obligated to obtain or to cause to be obtained a policy with the greatest coverage
available for a cost not exceeding such amount.
(b) From
and after the Effective Time, the Surviving Corporation will, and Parent will cause the Surviving Corporation to, indemnify and hold harmless
each present and former director and officer of the Company or any of its Subsidiaries, determined as of the Effective Time (the “Indemnified
Parties”), against any costs or expenses (including reasonable attorneys’ fees), judgments, fines, losses, claims, damages
or liabilities incurred in connection with any threatened, pending or completed claim, action, suit, proceeding or investigation, whether
civil, criminal, administrative or investigative, arising out of or pertaining to matters relating to their duties or actions in their
capacity as such (or in such capacity in another corporation, partnership, joint venture, trust or other enterprise at the request of
the Company) and existing or occurring at or prior to the Effective Time (including those matters relating to the transactions contemplated
by this Agreement), whether asserted or claimed prior to, at or after the Effective Time, to the fullest extent permitted to be so indemnified
by the Surviving Corporation or such Subsidiary, as the case may be, under applicable law. The Surviving Corporation shall, and Parent
shall cause the Surviving Corporation to, assume all rights of the Indemnified Parties to indemnification and exculpation from liabilities
for acts or omissions occurring at or prior to the Effective Time as provided in the respective Certificate of Incorporation or Bylaws
(or comparable organizational documents) of the Company or any of its Subsidiaries (true and complete copies of which have been filed
as exhibits to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, in the case of the Company, and otherwise
have been made available to Parent prior to the date hereof) as now in effect, and any indemnification agreements or arrangements of the
Company or any of its Subsidiaries provided to Parent prior to the date hereof shall survive the Merger and shall continue in full force
and effect in accordance with their terms, and Parent shall cause the Surviving Corporation to comply with its obligations thereunder.
Such rights shall not be amended, or otherwise modified in any manner that would adversely affect the rights of the Indemnified Parties,
unless such modification is required by law. The right to indemnification conferred by this Section 7.10 shall include the right to be
advanced and paid by Parent or the Surviving Corporation the expenses incurred in defending or otherwise participating in any proceeding
in advance of its final disposition, provided that such Indemnified Party provides an undertaking reasonably satisfactory in form and
substance to Parent to repay such advanced expenses to the extent required by law or the terms of the applicable indemnification provision.
(c) From
and after the Effective Time until the sixth anniversary thereof, Parent shall cause (i) the Certificate of Incorporation and Bylaws of
the Surviving Corporation to contain provisions no less favorable to the Indemnified Parties with respect to indemnification and to limitation
of certain liabilities of directors and officers than are set forth as of the date of this Agreement in the Company Charter and Bylaws
of the Company and (ii) the Certificate of Incorporation and Bylaws (or similar organizational documents) of each Subsidiary of the Surviving
Corporation to contain the current provisions regarding indemnification of directors and officers which provisions in each case shall
not be amended, repealed or otherwise modified in a manner that would adversely affect the rights thereunder of the Indemnified Parties.
(d) In
the event that Parent or the Surviving Corporation or the respective successors or assigns of each (i) consolidates with or merges into
any other person and is not the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or conveys
all or substantially all of its properties and assets to any person, then, and in each such case, Parent and the Surviving Corporation
shall ensure that proper provision shall be made so that such successors and assigns of Parent or the Surviving Corporation or the respective
successors or assigns of each, as the use may be, shall assume all of the obligations thereof set forth in this Section 7.10.
(e) Nothing
in this Agreement is intended to, shall be construed to or shall release, waive or impair any rights to directors’ and officers’
insurance claims under any policy that is or has been in existence with respect to the Company or any of its officers, directors or employees,
it being understood and agreed that the indemnification provided for in this Section 7.11 is not prior to or in substitution for any such
claims under such policies.
(f) The
provisions of this Section 7.10 are intended to be for the benefit of, and shall be enforceable by, each Indemnified Party, his or her
heirs and his or her representatives and (ii) are in addition to, and not in substitution for, any other rights to indemnification or
contribution that any such person may have by contract or otherwise. The obligations of Parent and the Surviving Corporation under this
Section 7.10 shall not be terminated or modified in such a manner as to adversely affect any Indemnified Party to whom this Section 7.10
applies without the consent of the affected Indemnified Party (it being expressly agreed that the Indemnified Parties to whom this Section
7.10 applies shall be third party beneficiaries of this Section 7.10). For the avoidance of doubt, any failure by the Surviving Corporation
to pay any amounts under this Section 7.10 for any reason whatsoever (including that such entity has ceased to exist) shall entitle the
Indemnified Parties to fulfillment by Parent of such obligations of the Surviving Corporation.
Section 7.11.
Reorganization. Following the Effective Time, neither the Company, the Surviving Corporation, Parent nor any of their affiliates
shall knowingly take any action, cause any action to be taken, fail to take any commercially reasonable action or cause any
commercially reasonable action to fail to be taken, which action or failure to act would reasonably be expected to prevent the
Merger from qualifying as a “reorganization” within the meaning of Section 368(a) of the Code.
Section 7.12. Registration
Statement.
(a) If
at any time prior to the date of the Parent Stockholder Meeting or Company Stockholder Meeting, or any adjournment thereof, any event
with respect to the Company, its officers and directors or any of its Subsidiaries shall occur which is required to be described in an
amendment of, or a supplement to the Registration Statement, the Company shall notify Parent thereof by reference to this Section 7.12(a)
and such event shall be so described. Any such amendment or supplement shall be filed as promptly as practicable with the SEC and, as
and to the extent required by law, disseminated to the stockholders of the Company, and such amendment or supplement shall comply in all
material respects with all applicable provisions of the Securities Act and the Exchange Act and the rules and regulations thereunder.
(b) If
at any time prior to the date of Parent Stockholder Meeting or Company Stockholder Meeting, or any adjournment thereof, any event with
respect to Parent, its officers and directors or any of its Subsidiaries shall occur which is required to be described in an amendment
of, or a supplement to the Registration Statement, Parent shall notify the Company thereof by reference to this Section 7.12(b) and such
event shall be so described. Any such amendment or supplement shall be filed as promptly as practicable with the SEC and, as and to the
extent required by law, disseminated to the stockholders of the Company, and such amendment or supplement shall comply in all material
respects with all applicable provisions of the Securities Act and the Exchange Act and the rules and regulations thereunder.
Article
VIII.
CONDITIONS
Section 8.1. Conditions
to Each Party’s Obligation to Effect the Merger.
The respective obligations of
the Parties to effect the Merger shall be subject to the following conditions:
(a) Stockholder
Approvals. The Company Stockholder Approval and Parent Stockholder Approval shall each have been obtained.
(b) Other
Approvals. (i) Any waiting period (and any extension thereof) applicable to the Merger under the HSR Act shall have expired or been
terminated and (ii) all other notifications, consents, authorizations and approvals required to be made with or obtained from any Governmental
Entity prior to the Effective Time (including without limitation, with respect to any Company Permit (without giving effect to the word
“material” in the definition thereof)) (all such approvals and the expiration of all such waiting periods being referred to
herein as the “Requisite Regulatory Approval”); provided that the foregoing clause (ii) shall apply to the obligations
of the Company to consummate the Merger only to the extent that the failure to make or obtain such notification, consent, authorization
or approval would make consummation of the Merger an illegal act by the Company.
(c) Effectiveness
of Registration Statement. The Registration Statement shall have become effective under the Securities Act and no stop order suspending
the effectiveness of any of the Registration Statement shall have been issued and no proceedings for that purpose shall have been initiated
or threatened by the SEC.
(d) No
Injunctions or Restraints; Illegality. No injunction prohibiting the consummation of the Merger shall be in effect. No statute, rule,
regulation, order, injunction or decree shall have been enacted, entered, promulgated or enforced by any Governmental Entity which prohibits,
materially restricts or makes illegal consummation of the Merger, and no Governmental Entity shall have instituted any proceeding or be
threatening to institute any proceeding seeking such an order, injunction or decree.
(e) Certain
Ancillary Documents. Each Parent Exchange Agreement and Company Exchange Agreement shall be in full force and effect in accordance
with the terms thereof as of the Closing.
Section 8.2. Conditions
to Obligations of the Company. The obligations of the Company to effect the Merger are also subject to the satisfaction, or waiver
by the Company, at or prior to the Effective Time, of the following conditions:
(a) Representations
and Warranties. (i) The representations and warranties of Parent and Merger Sub (the “Parent Representations”)
set forth in Section 5.1, Section 5.2, Section 5.2, Section 5.4(a), Section 5.4(b), Section 5.5, Section 5.6, Section 5.7, Section 5.8
and Section 5.9(a) of this Agreement shall, as of the Closing Date, as though made on and as of the Closing Date (except to the extent
such Parent Representations speak as of an earlier date, in which case as of such earlier date) be true and correct as of such Closing
Date or earlier date (A) in all material respects, in the case of such Parent Representations not qualified by materiality or Material
Adverse Effect and (B) in all respects, in the case of Parent Representations that are so qualified; and (ii) all other Parent Representations
(without giving effect to any materiality or Material Adverse Effect qualifier in such Parent Representations) not set forth in such Sections
listed in clause (i), shall, as of the Closing Date, as though made on and as of the Closing Date (except to the extent such Parent Representations
speak as of an earlier date, in which case as of such earlier date) be true and correct except, in the case of this clause (ii) for such
failures to be so true and correct that would not, individually or in the aggregate, have a Material Adverse Effect on Parent. The Company
shall have received certificates signed on behalf of Parent by an appropriate executive officer to such effect.
(b) Performance
of Obligations. Parent and Merger Sub shall have performed in all material respects all obligations required to be performed by each
of them under this Agreement at or prior to the Closing Date, and the Company shall have received certificates signed on behalf of Parent
by an appropriate executive officer to such effect.
Section 8.3. Conditions
to Obligations of Parent. The obligations of Parent to effect the Merger are also subject to the satisfaction or waiver by Parent at
or prior to the Effective Time of the following conditions:
(a) Representations
and Warranties. (i) The representations and warranties of the Company (the “Company Representations”) set forth
in Section 4.1, Section 4.2, Section 4.2(b), Section 4.5(a), Section 4.5(a), Section 4.7(a), Section 4.8, Section 4.10, Section 4.11(a),
Section 4.11(b), Section 4.11(d), Section 4.11(e), Section 4.13, Section 4.14(a), Section 4.15(a), Section 4.16, Section 4.19 and Section
4.21 of this Agreement shall, as of the Closing Date, as though made on and as of the Closing Date (except to the extent such Parent Representations
speak as of an earlier date, in which case as of such earlier date) be true and correct as of such Closing Date or earlier date (A) in
all material respects, in the case of such Company Representations not qualified by materiality or Material Adverse Effect and (B) in
all respects, in the case of Company Representations that are so qualified; and (ii) all other Company Representations (without giving
effect to any materiality or Material Adverse Effect qualifier in such Company Representation) not set forth in such Sections listed in
clause (i), shall, as of the Closing Date, as though made on and as of the Closing Date (except to the extent such Company Representations
speak as of an earlier date, in which case as of such earlier date) be true and correct except, in the case of this clause (ii) for such
failures to be so true and correct that would not, individually or in the aggregate, have a Material Adverse Effect on the Company. Parent
shall have received certificates signed on behalf of the Company by its Chief Executive Officer and its Chief Financial Officer.
(b) Performance
of Obligations. The Company shall have performed in all material respects all obligations required to be performed by it under this
Agreement at or prior to the Closing Date, and Parent shall have received certificates signed on behalf of the Company by its Chief Executive
Officer and its Chief Financial Officer to such effect.
(c) Certain
Ancillary Documents. Each Lock-Up Agreement and Employment Agreement shall be in full force and effect in accordance with the terms
thereof as of the Closing.
Article
IX.
TERMINATION, AMENDMENT AND WAIVER
Section 9.1.
Termination. This Agreement may be terminated at any time prior to the Effective Time, whether before or after approval of the
matters presented in connection with the Merger by the stockholders of the Company:
(a) by
mutual consent of Parent and the Company in a written instrument;
(b) by
either Parent or the Company if any Governmental Entity that must grant a Requisite Regulatory Approval has denied approval of the Merger
and such denial has become final and nonappealable or any Governmental Entity of competent jurisdiction shall have issued a final nonappealable
order permanently enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement;
(c) by
Parent or the Company if the Effective Time shall not have occurred on or before the seven-month anniversary of the date of this Agreement
(the “Termination Date”), unless the failure of the Effective Time to occur by such date shall be due to the failure
of the Party seeking to terminate this Agreement to perform or observe the covenants and agreements of such Party set forth herein; provided,
however, that if on such date each of the conditions set forth in Article VIII other than those set forth in Section 8.1(a), Section
8.1(c) or Section 8.1(e) has been fulfilled or is capable of being fulfilled, then such date shall be automatically extended to the nine-month
anniversary of the date of this Agreement;
(d) (i)
by the Company (provided that the Company is not then in material breach of any representation, warranty, covenant or other agreement
contained herein) if there shall have been a breach by Parent or Merger Sub of any of its covenants or agreements or any of its representations
or warranties set forth in this Agreement, which breach, either individually or in the aggregate, would constitute, if occurring or continuing
on the Closing Date, the failure of the conditions set forth in Section 8.2(a) or 8.2(b) of this Agreement, and which is not cured as
promptly as practicable and in any case within thirty (30) days following written notice by the Company to Parent or by its nature or
timing cannot be cured prior to the Closing Date; or
(ii) by
Parent (provided that neither Parent nor Merger Sub is then in material breach of any representation, warranty, covenant or other agreement
contained herein) if (A) there shall have been a breach by the Company of any of its covenants or agreements or any of its representations
or warranties set forth in this Agreement, which breach, in any such case, either individually or in the aggregate, would constitute,
if occurring or continuing on the Closing Date, the failure of the conditions set forth in Section 8.3(a), 8.3(b) or 8.3(c) of this Agreement
or (B) there shall have been a material breach (including any transfer or other disposition of any Company Securities in violation thereof)
by any party to a Voting Agreement (other than Parent) of any of its respective covenants or agreements or any of its respective representations
or warranties set forth in such Voting Agreement, and which, in the case of either of clause (A) or (B), is not cured as promptly as practicable
and in any case within thirty (30) days following written notice by Parent to the Company or by its nature or timing cannot be cured prior
to the Closing Date;
(e) by
the Company if, prior to receipt of the Company Stockholder Approval, (A) the Company receives a Superior Proposal, (B) the Company shall
have promptly (and in no event later than two calendar days, which shall include at least one Business Day, after forming such intention)
notified Parent of its intention to terminate this Agreement pursuant to this Section 9.1(e), such notice to Parent to be in writing and
to be accompanied by full details of the terms and conditions of such Superior Proposal, including the identity of the offeror, a complete
copy of each agreement contemplated to be entered into by the Company or its Subsidiaries in connection with the Superior Proposal, and
shall have otherwise complied with Section 7.3, (C) if requested by Parent within two Business Days after receipt by Parent in writing
of such full details of the terms and conditions of such Superior Proposal, the Company shall have negotiated and caused its respective
financial and legal advisers to negotiate during the following five Business Day period with Parent to make such adjustments in the terms
and conditions of this Agreement as would enable the Company to proceed with the transactions contemplated herein on such adjusted terms,
and notwithstanding such negotiations and adjustments, the Board of Directors of the Company concludes, in its good faith judgment, that
the transactions contemplated herein on such terms as adjusted, are not at least as favorable to the stockholders of the Company as such
Superior Proposal and (D) the Board of Directors of the Company thereafter resolves to accept such Superior Proposal after having received
and considered the advice of, and after consultation with, its independent, outside legal counsel, that the failure to take such action
would constitute a breach of the fiduciary duties of the Board of Directors of the Company under applicable law; provided, that
such termination under this Section 9.1(e) shall not be effective until the Company has made payment of the full fee required by Section
9.2(b)(i); and provided, further, that if Parent’s proposal under clause (C) is at least as favorable to the stockholders
of the Company as the Superior Proposal, this Agreement shall promptly be amended to reflect such terms and the Company shall no longer
have the right herein with respect to such original Superior Proposal;
(f) by
Parent, if the Board of Directors of the Company shall have failed to recommend, or shall have withdrawn, or modified or amended in any
respect materially adverse to Parent, its approval or recommendation of this Agreement or shall have resolved to do any of the foregoing,
or shall have recommended another Acquisition Proposal or if the Board of Directors of the Company shall have resolved to accept a Superior
Proposal or shall have failed to publicly affirm its approval or recommendation of this Agreement within 10 days of Parent’s request
made after any Acquisition Proposal shall have been disclosed to the Company’s stockholders generally; or
(g) by
Parent or the Company, if the stockholders of the Company fail to approve this Agreement upon a vote held at a duly held meeting of stockholders
called for such purpose (including any adjournment or postponement thereof), but subject, in the case of termination by the Company, to
its obligation to make the payment required by Section 9.2(b), if applicable.
Section 9.2. Effect
of Termination.
(a) In
the event of termination of this Agreement by Parent or the Company as provided in Section 9.1, this Agreement shall forthwith become
void and have no effect, and none of Parent, Merger Sub or the Company, any of their respective Subsidiaries or any of the officers or
directors of any of them shall have any liability of any nature whatsoever hereunder, or in connection with the transactions contemplated
hereby, except that (i) Sections 7.2(c), 10.2, 10.6, 10.7 and this Section 9.2 shall survive any termination of this Agreement, and (ii)
notwithstanding anything to the contrary contained in this Agreement, no party shall be relieved or released from any liabilities or damages
arising out of its willful breach of any provision of this Agreement or out of intentional misconduct or fraud.
(b) The
Company agrees to pay to Parent a fee equal to Parent’s reasonable and documented expenses incurred in connection with the transactions
contemplated by this Agreement by wire transfer of immediately available funds, if:
(i) the
Company terminates this Agreement pursuant to Section 9.1(e);
(ii) Parent
terminates this Agreement pursuant to Section 9.1(f);
(iii) (A)
the Company terminates this Agreement pursuant to Section 9.1(c) at a time when Parent would have been permitted to terminate this Agreement
pursuant to Section 9.1(d)(ii) as a result of a willful or bad faith breach of any material covenant or agreement contained in this Agreement,
(B) prior to such termination, an Acquisition Proposal (other than pursuant to this Agreement) shall have been disclosed publicly or to
the Company that contemplates a direct or indirect consideration (implicit valuation) for the Company Securities (including the value
of any stub equity) in excess of the aggregate Merger Consideration and (C) within 12 months following such termination, the Company,
directly or indirectly, enters into a definitive agreement for an Acquisition Transaction or an Acquisition Transaction is consummated,
which fee shall be payable immediately upon either event described in this clause (C), provided, that for purposes of this clause (C),
the percentage in the definition of “Acquisition Transaction” (including as such definition relates to the definition of “Acquisition
Proposal”) shall be thirty-three percent (33%) in lieu of twenty-five percent (25%) or fifteen percent (15%), as the case may be;
or
(iv) this
Agreement is terminated pursuant to Section 9.1(g), provided that (A) at the time of the Stockholder Meeting an Acquisition Proposal (other
than pursuant to this Agreement) shall have been disclosed publicly or to the Company and (B) within 12 months of termination of this
Agreement the Company, directly or indirectly, enters into a definitive agreement for an Acquisition Transaction or an Acquisition Transaction
is consummated, which fee shall be payable immediately upon either event described in this clause (B), and provided, further, that for
purposes of this Section 9.2(b)(iv) the percentage in the definition of “Acquisition Transaction” (including as such definition
relates to the definition of “Acquisition Proposal”) shall be thirty-three percent (33%) in lieu of twenty-five percent (25%)
or fifteen percent (15%), as the case may be.
(c) Subject
to Section 9.2(a)(ii), each of Parent, Merger Sub and the Company agrees that any termination fee payable pursuant to Section 9.2(b) of
this Agreement shall be the sole and exclusive remedy of Parent and Merger Sub upon termination of this Agreement pursuant to any provision
requiring the payment of such fee.
Section 9.3. Amendment.
Subject to compliance with applicable law, this Agreement may be amended by the Parties, by action taken or authorized by their
respective Boards of Directors, at any time before or after approval of the matters presented at the Stockholder Meeting by the
stockholders of the Company; provided, however, that after adoption of this Agreement by the Company’s stockholders, no
amendment shall be made which by law requires further approval of the stockholders of the Company without the further approval of
such stockholders. This Agreement may not be amended except by an instrument in writing signed by Parent and the Company.
Section 9.4. Extension;
Waiver. At any time prior to the Effective Time, the Parties, by action taken or authorized by their respective Board of Directors,
may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other
Parties, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant
hereto and (c) waive compliance with any of the agreements or conditions contained herein; provided, however, that
after any approval of the transactions contemplated by this Agreement by the stockholders of the Company, there may not be, without
further approval of such stockholders, any extension or waiver of this Agreement or any portion thereof which reduces the amount or
changes the form of the consideration to be delivered to the holders of Company Securities hereunder, other than as contemplated by
this Agreement. Any agreement on the part of a Party to any such extension or waiver shall be valid only if set forth in a written
instrument signed on behalf of such party, but such extension or waiver or failure to insist on strict compliance with an
obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other
failure.
Article
X.
GENERAL PROVISIONS
Section 10.1.
Nonsurvival of Representations, Warranties and Agreements. None of the representations, warranties, covenants and agreements in this
Agreement or in any instrument delivered pursuant to this Agreement (other than the Confidentiality Agreement, which shall terminate
in accordance with its terms) shall survive the Closing except for those covenants and agreements contained herein which by their
terms apply in whole or in part after the Closing.
Section 10.2. Expenses.
Except as set forth in Section 9.2, all costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such expense; provided, however, that the costs and expenses
of printing and mailing the Proxy Statement/Prospectus, and all filing and other fees paid to the SEC in connection with the Merger,
shall be borne equally by Parent and the Company.
Section 10.3. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, mailed by
registered or certified mail (return receipt requested) delivered by an express courier (with confirmation) or delivered via e-mail
to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):
(a) if
to the Company, to:
Business Warrior Corporation
455 E. Pebble Road, #230912
Las Vegas, NV 89123-0912
Attention: Rhett Doolittle
Email: rhett@businesswarrior.com
Telephone: (602) 570-7721
with a copy (which
shall not constitute notice)to:
Jonathan
D. Leinwand, P.A
18305 Biscayne Blvd, Suite 200
Aventura, FL
Attention: Jonathan D. Leinwand, Esq.
Email: jonathan@jdlpa.com
Telephone: (954) 903-7856
and
(b) if
to Parent or Merger Sub, to:
Innovative Payment Solutions,
Inc.
56B 5th Street, Lot 1
Carmel by the Sea, CA 93921
Attention: Richard Rosenblum
Email: rich@ipsipay.com
with a copy (which shall
not constitute notice) to:
Ellenoff Grossman &
Schole LLP
1345 Avenue of the Americas,
11th Floor
New York, NY 10105
Attention: Richard I.
Anslow, Esq.
Facsimile No.: (212)
370-7889
Email: lrosenbloom@egsllp.com
Section 10.4.
Interpretation. When a reference is made in this Agreement to Sections, Exhibits or Schedules, such reference shall be to a Section
of or Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever
the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed
to be followed by the words “without limitation.”
Section 10.5.
Counterparts. This Agreement may be executed in counterparts, all of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood
that all parties need not sign the same counterpart. Such counterparts may be executed and delivered by electronic means, which
shall constitute valid execution and delivery.
Section 10.6. Entire
Agreement. This Agreement (including the documents and the instruments referred to herein) constitutes the entire agreement and
supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter
hereof other than the Confidentiality Agreement.
Section 10.7. Governing
Law; Venue. This Agreement shall be governed and construed in accordance with the laws of the State of New York, without regard to
any applicable conflicts of law principles.
(b) Each
Party irrevocably submits to the jurisdiction of any New York state court or any federal court sitting in the State of New York in any
action arising out of or relating to this Agreement, and hereby irrevocably agrees that all claims in respect of such action may be heard
and determined in such New York state or federal court. Each Party hereby irrevocably waives, to the fullest extent it may effectively
do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The Parties further agree, to the extent
permitted by law, that final and unappealable judgment against any of them in any action or proceeding contemplated above shall be conclusive
and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified copy of which shall
be conclusive evidence of the fact and amount of such judgment.
(c) To
the extent that any Party has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself
or its property, each Party hereby irrevocably waives such immunity in respect of its obligations with respect to this Agreement.
(d) Each
Party waives, to the fullest extent permitted by applicable laws, any right it may have to a trial by jury in respect of any action, suit
or proceeding arising out of or relating to this Agreement. Each Party certifies that it has been induced to enter into this Agreement
by, among other things, the mutual waivers and certifications set forth above in this Section 10.7.
Section 10.8. Publicity.
The initial press release concerning the Merger and the transactions contemplated hereby will be a joint release. Except as
otherwise required by applicable law, none of the Parties hereto shall, or shall permit any of its Subsidiaries to, issue or cause
the publication of any press release or other public announcement with respect to, or otherwise make any public statement
concerning, the transactions contemplated by this Agreement without the consent of the other Parties, which consent shall not be
unreasonably withheld (provided that the consent of Parent shall be deemed to be the consent of Merger Sub). Prior to the Effective
Time, the Company shall not, and shall not permit any of its Subsidiaries to, without the prior consent of Parent (which shall not
be unreasonably withheld) issue or cause the publication of any press release or other public announcement with respect to any
material developments in the business strategy of the Company and its Subsidiaries, (in which case the Company shall, to the extent
practicable, consult with Parent prior to making such release or announcement).
Section 10.9.
Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations shall be assigned by
any of the Parties (whether by operation of law or otherwise) without the prior written consent of the other Parties. Subject to the
preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the Parties and their
respective successors and assigns. Except as otherwise provided in Section 7.10, this Agreement (including the documents and
instruments referred to herein) is not intended to confer upon any person other than the Parties any rights or remedies
hereunder.
Section 10.10. Specific
Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached in any material respect. It is accordingly agreed
that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement. A Party is entitled to seek injunctive relief to prevent any breach and to enforce terms
or provisions if such breach would serve as a basis of terminating this Agreement by such Party. The rights provided by this section
are in addition to any other remedy to which the Parties are entitled at law or in equity including an action seeking damages.
[Signature Page Follows]
IN WITNESS WHEREOF, Parent,
Merger Sub and the Company have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the
date first above written.
| |
BUSINESS WARRIOR CORPORATION |
| |
|
|
| |
By: |
/s/ Rhett Doolittle |
| |
Name: |
Rhett Doolittle |
| |
Title: |
CEO |
| |
INNOVATIVE PAYMENT SOLUTIONS, INC. |
| |
|
|
|
| |
By: |
/s/ Richard Rosenblum |
| |
|
Name: |
Richard Rosenblum |
| |
|
Title: |
Chief Financial Officer and President |
| |
IPSI MERGER SUB, INC. |
| |
|
|
|
| |
By: |
/s/ Richard Rosenblum |
| |
|
Name: |
Richard Rosenblum |
| |
|
Title: |
President |
40
Exhibit 10.1
VOTING AND SUPPORT AGREEMENT
This Voting and Support Agreement
(this “Agreement”) is made as of July 28, 2024 by and among (i) Innovative Payment Solutions, Inc., a Nevada
corporation (“Parent”), (ii) Business Warrior Corporation, a Wyoming corporation (the “Company”),
and (iii) the undersigned holder (“Holder”) of capital stock and/or securities convertible into capital stock
of the Company set forth on the signature page(s) hereto. Any capitalized term used but not defined in this Agreement will have the meaning
ascribed to such term in the Merger Agreement (as defined below).
WHEREAS, contemporaneously
herewith, (i) Parent, (ii) IPSI Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of the Parent (“Merger
Sub”) and (iii) the Company entered into that certain Agreement and Plan of Merger (as amended from time to time in accordance
with the terms thereof, the “Merger Agreement”, and the transactions between Parent and the Company that are
subject to the Merger Agreement and each agreement, instrument, document, and certificate delivered by any of the Parties in connection
with the Merger Agreement (collectively, the “Ancillary Documents”), the “Transactions”),
pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation (the “Merger”),
and as a result of which all of the issued and outstanding capital stock of the Company immediately prior to the consummation of the Merger
(the “Closing”) shall no longer be outstanding and shall automatically be cancelled and shall cease to exist,
in exchange for the right to receive the Applicable Per Share Portion of the Merger Consideration, all upon the terms and subject to the
conditions set forth in the Merger Agreement and in accordance with the applicable provisions of the of the WYBCL;
WHEREAS, as a condition
to the willingness of Parent to enter into the Merger Agreement, and as an inducement and in consideration therefor, and in view of the
valuable consideration to be received by Holder thereunder, and the expenses and efforts to be undertaken by Parent and the Company to
consummate the Transactions, Parent, the Company and Holder desire to enter into this Agreement in order for Holder to provide certain
assurances to Parent regarding the manner in which Holder is bound hereunder to vote all shares of capital stock of the Company which
Holder beneficially owns, acquires, holds or otherwise has voting power (including any shares of the Company acquired by means of purchase,
dividend or distribution, or issued upon the exercise of any stock options, warrants, restricted stock units or other rights to acquire
Company shares or the conversion of any convertible securities, the vesting of equity awards or otherwise, collectively, the “Shares”)
during the period from and including the date hereof through and including the first to occur of the Effective Time or the date on which
this Agreement is terminated in accordance with its terms (the “Voting Period”) with respect to the Merger Agreement,
the Ancillary Documents, the Transactions and certain other matters.
NOW, THEREFORE, in
consideration of the premises set forth above, which are incorporated in this Agreement as if fully set forth below, and intending to
be legally bound hereby, the parties hereby agree as follows:
| 1. | Covenant to Vote in Favor of Transactions. Holder agrees, with respect to all of the Shares
(and, in the case of Section 1(c), all of the Securities (as defined below)): |
| (a) | to execute a written consent with respect to the Shares (i) in favor of the approval and adoption of the
Merger, the Merger Agreement and the Ancillary Documents, and all of the other Transactions (and any actions required in furtherance thereof),
and (ii) in favor of the other matters set forth in the Merger Agreement (including any amendments to the Company Charter and the bylaws
of the Company (together, the “Company’s Organizational Documents”)); |
| (b) | during the Voting Period, at each meeting, if any, of the Company Stockholders or any class or series
thereof, and in each written consent or resolutions of any of the Company Stockholders in which Holder is entitled to vote or consent,
Holder hereby unconditionally and irrevocably agrees to be present for such meeting and vote (in person or by proxy), or consent to any
action by written consent or resolution with respect to, as applicable, the Shares (i) (A) in favor of the adoption of the Merger Agreement
and the approval of the transactions contemplated thereby, including the Merger, and (B) in favor of any proposal to adjourn or postpone
such meeting of the Company’s stockholders to a later date as may be requested by the Company in accordance with the Merger Agreement,
and in opposition to (ii) any Acquisition Proposal and any and all other actions, proposals, transactions or agreements (A) for an extraordinary
corporate transaction other than the Merger, such as a merger, consolidation or other business combination involving the Company or any
of its Subsidiaries, (B) that would reasonably be expected to delay or impair the ability of the Company to consummate the Merger or any
of the Transactions in accordance with the terms of the Merger Agreement and the Ancillary Documents, (C) which are in competition with
or materially inconsistent with the Merger Agreement or the Ancillary Documents, (D) other than as contemplated by the Merger Agreement,
any material change in the present capitalization of the Company, any amendment of the Company’s Organizational Documents or the
Company’s corporate structure or business; or (E) any other action or proposal involving the Company or any Subsidiary that is intended,
or would reasonably be expected, to prevent, impede, interfere with, delay, postpone or adversely affect in any material respect the Transactions
or would reasonably be expected to result in a breach of any representation, warranty, covenant or obligation of the Company in the Merger
Agreement or any of the conditions to the Closing under the Merger Agreement not being fulfilled; |
| (c) | except for transfers expressly permitted by, and effected in accordance with, Section 3(b), not
to deposit, and to cause their affiliates not to deposit, except as provided in this Agreement, any Shares owned by Holder or his/her/its
affiliates in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically
requested to do so by the Company and Parent in connection with the Merger Agreement, the Ancillary Documents and any of the Transactions; |
| (d) | except as contemplated by the Merger Agreement or the Ancillary Documents, make, or in any manner participate
in, directly or indirectly, a “solicitation” of “proxies” or consents (as such terms are used in the rules of
the SEC) or powers of attorney or similar rights to vote, or seek to advise or influence any person with respect to the voting of, any
shares of the Company capital stock in connection with any vote or other action with respect to the Transactions, other than to recommend
that stockholders of the Company vote in favor of adoption of the Merger Agreement and the Transactions and any other proposal the approval
of which is a condition to the obligations of the parties under the Merger Agreement (and any actions required in furtherance thereof
and otherwise as expressly provided by Section 1 of this Agreement); and |
| (e) | to refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at
any time with respect to the Merger, the Merger Agreement, the Ancillary Documents and any of the Transactions, including pursuant to
the WYBCL. |
| 2. | Grant of Proxy. During the Voting Period, Holder, with respect to all of the Shares, and
solely in the event of a failure by Holder to act in accordance with Holder’s obligations as to voting pursuant to Section 1
hereof, hereby irrevocably grants to, and appoints, Parent and any designee of Parent (determined in Parent’s sole discretion) as
Holder’s attorney-in-fact and proxy, with full power of substitution and resubstitution, for and in Holder’s name, to vote,
or cause to be voted (including by proxy or written consent, if applicable) any Shares owned (whether beneficially or of record) by Holder,
solely on the matters and in the manner specified in Section 1 above. The proxy granted by Holder pursuant to this Section 2
is irrevocable and is granted in consideration of Parent entering into this Agreement and the Merger Agreement and incurring certain related
fees and expenses. Holder hereby affirms that such irrevocable proxy is coupled with an interest by reason of the Merger Agreement and,
except upon the termination of this Agreement in accordance with Section 5(a), is intended to be irrevocable. Holder agrees, until
this Agreement is terminated in accordance with Section 5(a), to vote its Shares in accordance with Section 1 above. |
| (a) | No Transfers. Holder agrees that during the Voting Period it shall not, and shall cause its affiliates
not to, without Parent’s prior written consent, (i) offer for sale, sell (including short sales), transfer, tender, pledge, encumber,
assign or otherwise dispose of (including by gift) (collectively, a “Transfer”), or enter into any contract,
option, derivative, hedging or other agreement or arrangement or understanding (including any profit-sharing arrangement) with respect
to, or consent to, a Transfer of, any or all of the Securities (as defined below); (ii) grant any proxies or powers of attorney with respect
to any or all of the Securities; (iii) permit to exist any lien of any nature whatsoever (other than those imposed by this Agreement,
applicable securities laws or the Company’s Organizational Documents, as in effect on the date hereof) with respect to any or all
of the Securities; or (iv) take any action that would have the effect of preventing, impeding, interfering with or adversely affecting
Holder’s ability to perform its obligations under this Agreement. The Company hereby agrees that it shall not permit any Transfer
of the Securities in violation of this Agreement. Holder agrees with, and covenants to, Parent that Holder shall not request that the
Company register the Transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any Security during
the term of this Agreement without the prior written consent of Parent, and the Company hereby agrees that it shall not effect any such
Transfer. |
| (b) | Permitted Transfers. Section 3(a) shall not prohibit a Transfer of Shares by Holder (i)
to any family member or trust for the benefit of any family member, (ii) to any stockholder, member or partner of Holder, if an entity,
(iii) to any affiliate of Holder, or (iv) to any person or entity if and to the extent required by any non-consensual order, by divorce
decree or by will, intestacy or other similar applicable law, so long as, in the case of the foregoing clauses (i), (ii), (iii) and (iv),
the assignee or transferee agrees to be bound by the terms of this Agreement and executes and delivers to the parties hereto a written
consent and joinder memorializing such agreement. During the term of this Agreement, the Company will not register or otherwise recognize
the transfer (book-entry or otherwise) of any Shares or any certificate or uncertificated interest representing any of Holder’s
Shares, except as permitted by, and in accordance with, this Section 3(b). |
| (c) | Changes to Securities. In the event of a stock dividend or distribution, or any change in the shares
of capital stock of the Company by reason of any stock dividend or distribution, stock split, recapitalization, combination, conversion,
exchange of shares or the like, the term “Securities” shall be deemed to refer to and include the Securities as well as all
such stock dividends and distributions and any securities into which or for which any or all of the Securities may be changed or exchanged
or which are received in such transaction. Holder agrees during the Voting Period to notify Parent and the Company promptly in writing
of the number and type of any changes to Holder’s ownership of or voting control with respect to Securities, upon Holder’s
acquisition or commitment to acquire any additional Securities or upon any other changes involving Holder relating to capital stock or
securities convertible or exercisable for capital stock of the Company. |
| (d) | Scope / Limitations. Nothing in this Agreement is intended to waive compliance with, or condone
non-compliance with, any transfer restrictions arising under applicable securities laws or the provisions of any agreement between Holder
and the Company. |
| (e) | Publicity; Confidentiality. Holder shall hold in strict confidence any confidential information
with respect to the Company, Parent, the Transactions or the transactions contemplated herein (“Confidential Information”),
and will not use Confidential Information for any purpose (except in connection with the consummation of the transactions contemplated
by this Agreement or the Ancillary Documents, performing their obligations hereunder or thereunder and enforcing their rights hereunder
or thereunder), nor directly or indirectly disclose, distribute, publish, disseminate or otherwise make available to any third party any
of the Confidential Information without the express prior written approval of the Company and Parent. Holder shall not issue any press
release or otherwise make any public statements with respect to the Transactions or the transactions contemplated herein without the express
prior written approval of the Company and Parent. Holder hereby authorizes the Company and Parent to publish and disclose in any announcement
or disclosure required by the SEC or Nasdaq (including all documents and schedules filed with the SEC in connection with the foregoing),
Holder’s identity and ownership of the Securities and the nature of Holder’s commitments and agreements under this Agreement,
the Merger Agreement and any other Ancillary Documents. |
| 4. | Representations and Warranties of Holder. Holder hereby represents and warrants to Parent
and the Company as follows: |
| (a) | Binding Agreement. Holder (i) if a natural person, is of legal age to execute this Agreement and
is legally competent to do so and (ii) if not a natural person, is (A) a corporation, limited liability company, company or partnership
duly organized and validly existing under the laws of the jurisdiction of its organization and (B) has all necessary power and authority
to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. If
Holder is not a natural person, the execution and delivery of this Agreement, the performance of its obligations hereunder and the consummation
of the transactions contemplated hereby by Holder has been duly authorized by all necessary corporate, limited liability or partnership
action on the part of Holder, as applicable. This Agreement, assuming due authorization, execution and delivery hereof by the other parties
hereto, constitutes a legal, valid and binding obligation of Holder, enforceable against Holder in accordance with its terms (except as
such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar laws of
general applicability relating to or affecting creditor’s rights, and to general equitable principles). Holder understands and acknowledges
that Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this Agreement by Holder. |
| (b) | Ownership of Securities. As of the date hereof, Holder has beneficial ownership over the type and
number of the Shares and, to the extent applicable, the other securities issued by the Company set forth under Holder’s name on
the signature page hereto (collectively, the “Securities”), is the lawful owner of such Securities, has the
sole power to vote or cause to be voted such Securities (to the extent such Securities have associated voting rights), and has good and
valid title to such Securities, free and clear of any and all pledges, mortgages, encumbrances, charges, proxies, voting agreements, liens,
adverse claims, options, security interests and demands of any nature or kind whatsoever, other than those imposed by this Agreement,
applicable securities laws or the Company’s Organizational Documents, in each case as in effect on the date hereof. There are no
claims for finder’s fees or brokerage commission or other like payments in connection with this Agreement or the transactions contemplated
hereby payable by Holder pursuant to arrangements made by Holder. Except for the Shares and other securities of the Company set forth
under Holder’s name on the signature page hereto, as of the date of this Agreement, Holder is not a beneficial owner or record holder
of any: (i) equity securities of the Company, (ii) securities of the Company having the right to vote on any matters on which the holders
of equity securities of the Company may vote or which are convertible into or exchangeable for, at any time, equity securities of the
Company or (iii) options, warrants or other rights to acquire from the Company any equity securities or securities convertible into or
exchangeable for equity securities of the Company. |
| (c) | No Conflicts. No filing with, or notification to, any Governmental Entity, and no consent, approval,
authorization or permit of any other person is necessary for the execution of this Agreement by Holder, the performance of its obligations
hereunder or the consummation by it of the transactions contemplated hereby. None of the execution and delivery of this Agreement by Holder,
the performance of its obligations hereunder or the consummation by it of the transactions contemplated hereby shall (i) conflict with
or result in any breach of the certificate of incorporation, bylaws or other comparable organizational documents of Holder, if applicable,
(ii) result in, or give rise to, a violation or breach of or a default under any of the terms of any contract or obligation to which Holder
is a party or by which Holder or any of the Securities or its other assets may be bound, or (iii) violate any applicable law or order,
except for any of the foregoing in clauses (i) through (iii) as would not reasonably be expected to impair Holder’s ability to perform
its obligations under this Agreement in any material respect. |
| (d) | No Inconsistent Agreements. Holder hereby covenants and agrees that, except for this Agreement,
Holder (i) has not entered into, nor will enter into at any time while this Agreement remains in effect, any voting agreement or voting
trust with respect to the Securities inconsistent with Holder’s obligations pursuant to this Agreement, (ii) has not granted, nor
will grant at any time while this Agreement remains in effect, a proxy, a consent or power of attorney with respect to the Securities
and (iii) has not entered into any agreement or knowingly taken any action (nor will enter into any agreement or knowingly take any action)
that would make any representation or warranty of Holder contained herein untrue or incorrect in any material respect or have the effect
of preventing Holder from performing any of its material obligations under this Agreement. |
| 5. | Waiver and Release of Claims. Holder covenants and agrees as follows: |
| (a) | Subject to and conditioned upon the Closing, effective as of the Closing (and subject to the limitations
set forth in paragraph (d) below), Holder, on behalf of itself and its affiliates and its and their respective successors, assigns, representatives,
administrators, executors and agents, and any other person or entity claiming by, through, or under any of the foregoing (each a “Releasing
Party” and, collectively, the “Releasing Parties,” provided, for the avoidance of doubt, that
Parent, shall not be deemed a Releasing Party hereunder), does hereby unconditionally and irrevocably release, waive and forever discharge
Parent, the Company, and each of their past and present directors, officers, employees, agents, predecessors, successors, assigns, and
Subsidiaries, from any and all past or present claims, demands, damages, judgments, causes of action and liabilities of any nature whatsoever,
whether or not known, suspected or claimed, arising directly or indirectly from any act, omission, event or transaction occurring (or
any circumstances existing) at or prior to the Closing, in each case to the extent arising out of our relating to Holder’s capacity
as a current or former stockholder of the Company or holder of any other equity securities of the Company (or securities convertible into
equity securities of the Company) (each a “Claim” and, collectively, the “Claims”). |
| (b) | Holder acknowledges that it may hereafter discover facts in addition to or different from those which
it now knows or believes to be true with respect to the subject matter of this Agreement, and that it may hereafter come to have a different
understanding of the law that may apply to potential claims which it is releasing hereunder, but it affirms that, except as is otherwise
specifically provided herein, it is its intention to fully, finally and forever settle and release any and all Claims. In furtherance
of this intention, Holder acknowledges that the releases contained herein shall be and remain in effect as full and complete general releases
with respect to the specified subject matter notwithstanding the discovery or existence of any such additional facts or different understandings
of law. |
| (c) | Holder acknowledges and agrees that the foregoing waiver is an essential and material term of the release
provided pursuant to this Section 5 and that, without such waiver, Parent and the Company would not have agreed to the terms of
this Agreement. |
| (d) | Notwithstanding the foregoing provisions of this Section 5 or anything to the contrary set forth herein,
the Releasing Parties do not release or discharge, and each Releasing Party expressly does not release or discharge: (i) any Claims that
arise under or are based upon the terms of the Merger Agreement, this Agreement, any of the Ancillary Documents, or any other document,
certificate or contract executed or delivered in connection with the Merger Agreement, as each such agreement or instrument may be amended
in accordance with its terms and the terms set forth in (A) the Merger Agreement or (B) this Agreement or the other Ancillary Documents
(if and to the extent applicable), (ii) any rights with respect to the capital stock or warrants of the Company or Parent owned by such
Releasing Party, (iii) any Claims for compensation, reimbursement of expenses or benefits payable to such Holder in his, her or its capacity
as an officer, director, employee, consultant or contractor of the Company or any of its Subsidiaries; or (iv) any Claims for obligations
pursuant to, or other rights set forth in, any employment or similar agreement between Holder, on the one hand, and the Company or any
Subsidiary of the Company, on the other hand, together with any other agreements, documents, instruments or certificates contemplated
by the foregoing, as well as any other employment related rights that such Holder has by Contract or pursuant to applicable law. |
| (a) | Termination. Notwithstanding anything to the contrary contained herein, this Agreement shall
automatically terminate, and none of Parent, the Company or Holder shall have any rights or obligations hereunder, upon the earliest
to occur of (i) the mutual written consent of Parent
and the Company, (ii) the Effective Time (following the performance of the obligations of the parties hereunder required to be performed
at or prior to the Effective Time), and (iii) the date of termination of the Merger Agreement in accordance with its terms. The termination
of this Agreement shall not prevent any party hereunder from seeking any remedies (at law or in equity) against another party hereto or
relieve such party from liability for such party’s willful breach of any terms of this Agreement. Notwithstanding anything to the
contrary herein, the provisions of this Section 6(a) shall survive the termination of this Agreement. |
| (b) | Binding Effect; Assignment. This Agreement and all of the provisions hereof shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement and all obligations
of Holder are personal to Holder and may not be assigned, transferred or delegated by Holder at any time without the prior written consent
of Parent and the Company, and any purported assignment, transfer or delegation without such consent shall be null and void ab initio.
Each of the Company and Parent may freely assign any or all of its rights under this Agreement, in whole or in part, to any successor
entity (whether by merger, consolidation, equity sale, asset sale or otherwise) without obtaining the consent or approval of Holder. |
| (c) | Third Parties. This Agreement is for the sole benefit of the parties hereto and their successors
and permitted assigns and nothing herein expressed or implied shall give or be construed to give any person, other than the parties hereto
and such successors and permitted assigns, any legal or equitable rights hereunder. |
| (d) | Governing Law; Jurisdiction. This Agreement shall be governed by construed and enforced in accordance
with the laws of the State of New York, without regard to the conflict of law principles thereof. All actions arising out of or relating
to this Agreement shall be heard and determined in a New York state court or any federal court sitting in the State of New York (the “Specified
Courts”). Each party hereto hereby (i) submits to the exclusive jurisdiction of any Specified Court for the purpose of any action
arising out of or relating to this Agreement brought by any party hereto and (ii) irrevocably waives, and agrees
not to assert by way of motion, defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction
of the above-named courts, that its property is exempt or immune from attachment or execution, that the action is brought in an inconvenient
forum, that the venue of the action is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in
or by any Specified Court. Each party agrees that a final judgment in any action shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law. Each party irrevocably consents to the service of the summons and complaint
and any other process in any other action or proceeding relating to the transactions contemplated by this Agreement, on behalf of itself,
or its property, by personal delivery of copies of such process to such party at the applicable address set forth or referred to in Section
6(g). Nothing in this Section 6(d) shall affect the right of any party to serve legal process in any other manner permitted
by applicable law. |
| (e) | WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SEEK TO ENFORCE THAT
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6(E). |
| (f) | Interpretation. The titles and subtitles contained in this Agreement are solely for the purpose
of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of this Agreement.
In this Agreement, unless the context otherwise requires: (i) any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and words in the singular form, including any defined terms, include the plural and vice versa; (ii) reference
to any person includes such’s person’s successors and assigns but, if applicable, only if such successors and assigns are
permitted by this Agreement, and reference to a person in a particular capacity excludes such person in any other capacity; (iii) “including”
(and with correlative meaning “include”) means including without limiting the generality of any description preceding or succeeding
such term and shall be deemed in each case to be followed by the words “without limitation”; (iv) the words “herein,”
“hereto,” and “hereby” and other words of similar import in this Agreement shall be deemed in each case to refer
to this Agreement as a whole and not to any particular Section or other subdivision of this Agreement; (v) the word “if” and
other words of similar import when used herein shall be deemed in each case to be followed by the phrase “and only if”; (vi)
the term “or” means “and/or”; (vii) the term “affiliate” shall mean, with respect to any specified
person, any other person or group of persons acting together that, directly or indirectly, through one or more intermediaries controls,
is controlled by or is under common control with such specified person (where the term “control” (and any correlative terms)
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such person,
whether through the ownership of voting securities, by contract or otherwise); (viii) any agreement, instrument, insurance policy, law
or order defined or referred to herein or in any agreement, instrument that is referred to herein means such agreement, instrument, insurance
policy, law or order as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver
or consent and (in the case of statutes, regulations, rules or orders) by succession of comparable successor statutes, regulations, rules
or orders and references to all attachments thereto and instruments incorporated therein; and (ix) except has otherwise indicated, all
references in this Agreement to the word “Section” are intended to refer to Sections in this Agreement; and (A) the term “Dollars”
or “$” means United States dollars. Any reference in this Agreement to a person’s directors shall include any member
of such person’s governing body and any reference in this Agreement to a person’s officers shall include any person filling
a substantially similar position for such person. Any reference in this Agreement or any Ancillary Document to a person’s shareholders
or stockholders shall include any applicable owners of the equity interests of such person, in whatever form, including with respect to
the Parent its stockholders under the Securities Act, the Exchange Act or WYBCL, as then applicable, or its organizational documents.
The parties have participated jointly in the negotiation and drafting of this Agreement. Consequently, in the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. |
| (g) | Notices. All notices, consents, waivers and other communications hereunder shall be in writing
and shall be deemed to have been duly given when delivered (i) in person, (ii) by electronic means (including email), with affirmative
confirmation of receipt, (iii) one Business Day after being sent, if sent by reputable, nationally recognized overnight courier service
or (iv) three (3) Business Days after being mailed, if sent by registered or certified mail, pre-paid and return receipt requested, in
each case to the applicable party at the following addresses (or at such other address for a party as shall be specified by like notice): |
|
If to the Parent at or prior to the Closing, to:
Innovative Payment Solutions, Inc.
56B 5th Street, Lot 1
Carmel by the Sea, CA 93921
Attn: Richard Rosenblum
Email: rich@ipsipay.com
|
with a copy (which will not constitute notice) to:
Ellenoff Grossman & Schole LLP
1345 Avenue of the Americas, 11th Floor
New York, New York 10105
Attn: Lawrence Rosenbloom, Esq
Email: lrosenbloom@egsllp.com |
|
If to the Company, to:
Business Warrior Corporation
455 E. Pebble Road, #230912
Las Vegas, NV 89123-0912
Attention: Rhett Doolittle
Email: rhett@businesswarrior.com
Telephone: (602) 570-7721
|
with a copy (which will not constitute notice) to:
Jonathan D. Leinwand, P.A
18305 Biscayne Blvd, Suite 200
Aventura, FL
Attention: Jonathan D. Leinwand, Esq.
Email: jonathan@jdlpa.com
Telephone: (954) 903-7856
|
| (h) | Amendments and Waivers. This Agreement may be amended, supplemented or modified only by execution
of a written instrument signed by Parent, the Company and the Holder and, except as otherwise required by applicable law, without further
action by the stockholders of any party. Parent on behalf of itself and its affiliates and the Company on behalf of itself and its affiliates
may in its sole discretion (a) extend the time for the performance of any obligation or other act of any other non-affiliated party hereto
or (b) waive compliance by such other non-affiliated party with any covenant or condition contained herein. Any such extension or waiver
shall be valid only if set forth in an instrument in writing signed by the party or parties to be bound thereby. Notwithstanding the foregoing,
no failure or delay by a party in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise of any other right hereunder. |
| (i) | Severability. In case any provision in this Agreement shall be held invalid, illegal or unenforceable
in a jurisdiction, such provision shall be modified or deleted, as to the jurisdiction involved, only to the extent necessary to render
the same valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby nor shall the validity, legality or enforceability of such provision be affected thereby in any other
jurisdiction. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties
will substitute for any invalid, illegal or unenforceable provision a suitable and equitable provision that carries out, so far as may
be valid, legal and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision. |
| (j) | Remedies. Except as otherwise provided herein, any and all remedies herein expressly conferred
upon a party hereto shall be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such
party, and the exercise by a party hereto of any one remedy shall not preclude the exercise of any other remedy and nothing in this Agreement
shall be deemed a waiver by any party of any right to specific performance or injunctive relief. The parties hereto agree that irreparable
damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that any of the provisions
of this Agreement were not performed by Holder in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the Company and Parent shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent
breaches of this Agreement by Holder and to enforce specifically the terms and provisions hereof, this being in addition to any other
remedy to which they are entitled at law or in equity. Holder agrees not to raise any objections to (A) the granting of an injunction,
specific performance or other equitable relief to prevent or restrain breaches of this Agreement; and (B) the specific performance of
the terms and provisions of this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants,
obligations and agreements of Holder pursuant to this Agreement, in each case on the basis that the other parties have an adequate remedy
at law or that any award of specific performance or other equitable remedy is not an appropriate remedy for any reason at law or in equity.
If Parent or the Company seek an injunction or injunctions to prevent breaches (or threatened breaches) of this Agreement and to enforce
specifically the terms and provisions of this Agreement, such parties will not be required to provide any bond or other security in connection
with such injunction or enforcement, and Holder irrevocably waives any right that it may have to require the obtaining, furnishing or
posting of any such bond or other security. |
| (k) | Expenses. Each party shall be responsible for its own fees and expenses (including the fees and
expenses of investment bankers, accountants and counsel) in connection with the entering into of this Agreement,
the performance of its obligations hereunder and the consummation of the transactions contemplated hereby; provided, that in the event
of any action arising out of or relating to this Agreement, the non-prevailing party in any such action will pay its own expenses and
the reasonable documented out-of-pocket expenses, including reasonable attorneys’ fees and costs, reasonably incurred by the prevailing
party. |
| (l) | No Partnership, Agency or Joint Venture. This Agreement is intended to create a contractual relationship
among Holder, the Company and Parent, and is not intended to create, and does not create, any agency, partnership, joint venture or any
like relationship among the parties hereto or among any other Company shareholders entering into voting agreements with the Company or
Parent. Holder has acted independently regarding its decision to enter into this Agreement. Nothing contained in this Agreement shall
be deemed to vest in the Company or Parent any direct or indirect ownership or incidence of ownership of or with respect to any Securities. |
| (m) | Further Assurances. From time to time, at another party’s request and without further consideration,
each party shall execute and deliver such additional documents and take all such further action as may be reasonably necessary or desirable
to consummate the transactions contemplated by this Agreement. |
| (n) | Entire Agreement. This Agreement (together with the Merger Agreement to the extent referred to
herein) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any
other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled; provided, that,
for the avoidance of doubt, the foregoing shall not affect the rights and obligations of the parties under the Merger Agreement or any
Ancillary Document. Notwithstanding the foregoing, nothing in this Agreement shall limit any of the rights or remedies of Parent or any
of the obligations of Holder under any other agreement between Holder and Parent or any certificate or instrument executed by Holder in
favor of Parent, and nothing in any other agreement, certificate or instrument shall limit any of the rights or remedies of Parent or
any of the obligations of Holder under this Agreement. |
| (o) | Counterparts; Facsimile. This Agreement may be executed in multiple counterparts (including by
facsimile or pdf or other electronic document transmission), each of which shall be deemed an original, and all of which taken together
shall constitute one and the same instrument. |
IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.
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INNOVATIVE PAYMENT SOLUTIONS, INC. |
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By: |
/s/ Richard Rosenblum |
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Name: |
Richard Rosenblum |
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Title: |
Chief Financial Officer and President |
[Signature Page to Company Stockholder Support Agreement]
IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.
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BUSINESS WARRIOR CORPORATION |
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|
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By: |
/s/ Rhett Doolittle |
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Name: |
Rhett Doolittle |
| |
Title: |
CEO |
[Signature Page to Company Stockholder Support Agreement]
IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.
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HOLDER: |
| |
|
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[_________________] |
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|
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Number of Shares and Other Company Securities: |
| |
|
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Company Stock: |
| |
|
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Other Company Securities:
|
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Address and email address for notice: |
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Address: |
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Email: |
[Signature Page to Company Stockholder Support Agreement]
Exhibit 99.1
Source: Innovative Payment Solutions, Inc.
July 29, 2024 09:00 ET
Innovative Payment Solutions and Business Warrior Corporation Sign
Definitive Merger Agreement
Combined fintech company will offer IPSIPay Express, a new system
seeking to transform the payments industry, and BZWR’s PayPlanTM cloud-based lending platform
Transaction consideration to be issued to BZWR stockholders is 45%
of the outstanding post-closing shares of common stock of IPSI
CARMEL-BY-THE-SEA, CA AND LAS VEGAS, NV, July 29, 2024 (GLOBE NEWSWIRE)
-- Innovative Payment Solutions, Inc. (OTCQB:IPSI) (“IPSI”) and Business Warrior Corporation (OTC:BZWR) (“BZWR”) are
pleased to announce that they have entered into a definitive merger agreement pursuant to which IPSI will acquire 100% of BZWR. The
boards of directors of both companies have unanimously approved the transaction.
This strategic merger brings together the strengths of both companies,
promising immediate cost efficiencies and a stronger executive team capable of raising additional capital. The integration of IPSI
with BZWR will enable optimization of talent and networks, allowing the teams from both companies to leverage their experience and connections
to drive business growth. The merger also aligns the scalable technologies of IPSI and BZWR, paving the way for increased revenue generation
and, ultimately, profitability.
Key Transaction Terms:
| ● | Merger Consideration. As part of the merger, BZWR will merge
with and into a newly-formed, wholly-owned subsidiary of IPSI, with BZWR surviving as a wholly-owned subsidiary of IPSI and BZWR stockholders
receiving 45% of the outstanding post-closing shares of IPSI common stock. |
| ● | Convertible Note Recapitalization. IPSI and BZWR have certain
convertible note investors in common. As a condition to the closing of the merger, such convertible note holders will exchange and
cancel such notes for shares of newly-issued Series A Convertible Preferred Stock of IPSI, the terms of which remain subject to negotiation
with the convertible note holders and IPSI stockholder approval. |
| ● | Conversion of BZWR Securities. Prior to the closing of the merger,
BZWR shall cause all of its outstanding shares of preferred stock, options and warrants to be converted into shares of BZWR common stock,
net exercised or cancelled, following which only shares of BZWR common stock will be outstanding immediately prior to the closing of the
merger. BZWR stockholders be entitled to receive shares of IPSI common stock in consideration for their shares of BZWR common stock. |
| ● | Board of Directors. At the closing of the merger, a new five-member
board of IPSI will be formed consisting of two members appointed by IPSI, two members appointed by BZWR, and a fifth independent member
to be mutually agreed upon prior to the closing of the merger. |
| ● | Conditions to Closing. The closing of the merger is subject
to customary closing conditions, including the approval by IPSI and BZWR stockholders. No assurances can be given as to the timing
for a potential closing of the merger or whether such conditions to closing can be satisfied. |
Additional information about the proposed transaction, including a
copy of the merger agreement, will be available in a Current Report on Form 8-K to be filed by each of IPSI and BZWR with the U.S. Securities
and Exchange Commission (“SEC”).
IPSI’s Revolutionary Payments Technology Coming Out of Beta
Phase
As previously disclosed, IPSI, in collaboration with its IPSIPay Express
joint venture partners, expects in the near term to launch a groundbreaking payment technology, which is currently in beta testing. This
technology is expected to revolutionize the medium and high-risk processing sectors, providing significant benefits to both merchants
and lenders.
William Corbett, Chairman of IPSI, commented, “The IPSIPay Express
payment rail will help merchants enhance profitability, eliminate chargebacks, and provide instant settlement for payments to lenders
and merchants. We look forward to combining this with BZWR’s lending platform and management talent.”
Business Warrior’s Focus on PayPlan Software
BZWR continues to advance its proprietary software solution for lenders,
PayPlan, a next-generation SaaS platform seeking to revolutionize the loan management industry. Developed over two years with an investment
of over $2 million and growing in terms of lenders using the platform, PayPlan offers lenders unprecedented flexibility to customize their
loan offerings and adjust underwriting rules in minutes, without the need for coding or significant financial outlay.
PayPlan enables lenders to integrate new data sources and adopt emerging
technologies like artificial intelligence, significantly enhancing their loan management systems. This capability allows for rapid implementation
and cost-efficient modifications, drastically reducing the time and expense traditionally associated with such changes.
Experienced Management Team and Strategic Integration
The BZWR management team has extensive experience in payment processing
and scaling multiple merchant services organizations and will continue to play a pivotal role in the combined company. Rhett Doolittle,
CEO of BZWR, having built and sold multiple merchant services portfolios had previously grew his first merchant services company to #18
on Inc. 500’s list of Fastest Growing Companies in the United States. The adoption of IPSI's cutting-edge payment technology
will significantly enhance BZWR's offerings to lenders, delivering a suite of features designed to provide substantial benefits to clients.
Mr. Doolittle commented, “IPSI’s new payment technology
will not only offer immense advantages to our lending clients but will also be a first-to-market innovation that will transform business
payment processes, increase user profitability, and mitigate chargeback risk. We look forward to moving ahead with this business
combination.”
About Innovative Payment Solutions, Inc. (IPSI)
Innovative Payment Solutions, Inc. (OTCQB: IPSI) is a cutting-edge
FinTech provider of digital and other payment solutions. IPSI is a joint venture partner in IPSIPay Express, a new business aiming to
provide a proprietary Instant-Settlement in RealTime™ solution to markets including the sports betting, online gaming, and entertainment
sectors.
About Business Warrior Corporation (BZWR)
Business Warrior Corporation (OTC:BZWR) is a publicly traded company
listed on the OTC Pink Sheets. Their signature product, PayPlan, is a software-as-a-service (SaaS) turnkey lending solution built for
lenders and high-growth companies. They are a full-service provider with end-to-end lending technology, including custom software development
and customer acquisition marketing services. Founded in 2014, Business Warrior is a SaaS marketing company with a virtual workforce and
employees worldwide. Business Warrior acquired Helix House and Alchemy Technologies in 2022. For more information, visit https://businesswarrior.com.
Additional Information and Where to Find It
In connection with the proposed transaction, IPSI and BZWR intend to
file a registration statement on Form S-4 with the SEC, which will include a preliminary prospectus with respect to IPSI’s securities
to be issued in connection with the proposed transaction and a preliminary proxy statement for IPSI’s stockholders and BZWR’s
stockholders will be asked to vote on the proposed transaction or aspects thereof. IPSI and BZWR urge investors, stockholders, and other
interested persons to read, when available, the Form S-4, including the proxy statement/prospectus, any amendments thereto, and any other
documents filed with the SEC, before making any voting or investment decision because these documents will contain important information
about the proposed transaction. After the Form S-4 has been filed and declared effective, IPSI and BZWR will mail the definitive proxy
statement/prospectus to their respective stockholders as of a record date to be established for voting on the proposed transaction. IPSI
and BZWR stockholders will also be able to obtain a copy of such documents, without charge, by directing a request to: e-mail: investors@businesswarrior.com & investors@ipsipay.com.
These documents, once available, can also be obtained, without charge, at the SEC’s website www.sec.gov.
Participants in Solicitation
IPSI and BZWR and their respective directors and officers may be deemed
participants in the solicitation of proxies of their stockholders in connection with the proposed transaction. Security holders may obtain
more detailed information regarding the names, affiliations, and interests of certain of IPSI and BZWR’s executive officers and
directors in the solicitation by reading IPSI and BZWR’s SEC filings, and the proxy statement/prospectus and other relevant materials
filed with the SEC in connection with the transaction when they become available. Information concerning the interests of IPSI and BZWR’s
participants in the solicitation, which may, in some cases, be different from those of their stockholders generally, will be set forth
in the proxy statement/prospectus relating to the transaction when it becomes available. These documents can be obtained free of charge
from the source indicated above.
No Offer or Solicitation
Neither the dissemination of this press release nor any part of its
contents is to be taken as any form of commitment on the part of IPSI or BZWR or any of their respective affiliates to enter any contract
or otherwise create any legally binding obligation or commitment. This press release does not constitute or form part of any offer or
invitation to sell, or any solicitation of any offer to purchase any interests in IPSI and BZWR nor shall it or any part of it or the
fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating
thereto, nor does it constitute a recommendation regarding the interests in IPSI or BZWR. No securities commission or regulatory authority
in the United States or in any other country has in any way opined upon the accuracy or adequacy of this press release. This press release
is not, and under no circumstances is to be construed as, a prospectus, a public offering, or an offering memorandum as defined under
applicable securities laws and shall not form the basis of any contract.
Cautionary Note Regarding Forward-Looking Statements
This press release and statements of the management of IPSI and BZWR
related thereto contain forward-looking statements for purposes of the “safe harbor” provisions under the United States Private
Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein are forward-looking
statements. Such forward-looking statements include, but are not limited to, expectations, hopes, beliefs, intentions, plans, prospects,
financial results, or strategies regarding IPSI and BZWR, their respective businesses, the proposed merger and the future generally held
by the respective management teams of IPSI and BZWR, the anticipated benefits and the anticipated timing of the proposed merger, future
financial condition, and performance of IPSI and BZWR and expected financial impacts of the proposed merger (including future revenue,
pro forma enterprise value and cash balance), the satisfaction of closing conditions to the proposed merger, financing transactions or
recapitalizations related to the proposed merger, and the products and markets and expected future performance and market opportunities
of IPSI and BZWR. These forward-looking statements generally are identified by the words “anticipate,” “believe,”
“could,” “expect,” “estimate,” “future,” “intend,” “may,” “might,”
“strategy,” “opportunity,” “plan,” “project,” “possible,” “potential,”
“project,” “predict,” “scales,” “representative of,” “valuation,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,” and similar
expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are
predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result,
are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements
in this press release, including, without limitation: (i) the risk that the proposed merger may not be completed in a timely manner or
at all, which may adversely affect the price of the securities of each of IPSI and BZWR, (ii) the failure to satisfy the conditions to
the consummation of the proposed merger, including the requirement that the merger and related matters described herein must be approved
by the stockholders of IPSI and by the stockholders of BZWR, (iii) the failure to obtain regulatory or third-party approvals, as applicable,
required to consummate the proposed merger, (iv) the occurrence of any event, change, or other circumstance that could give rise to the
termination of the proposed merger, (v) the effect of the announcement or pendency of the proposed merger on IPSI and BZWR's respective
business relationships, operating results, and business generally, (vi) risks that the proposed merger disrupts current plans and operations
of IPSI or BZWR, (vii) the outcome of any legal proceedings that currently exist or may be instituted against IPSI or BZWR related to
the proposed merger, (viii) changes in the competitive markets in which IPSI and BZWR operate, changes in laws and regulations affecting
IPSI and BZWR’s businesses and changes in the combined capital structure, (ix) the ability to implement business plans, growth,
marketplace, and other expectations after the completion of the proposed merger, and identify and realize additional opportunities, (x)
the potential inability of IPSI or BZWR to achieve its business and customer growth and technical development plans, (xii) the ability
of IPSI or BZWR to enforce its current or future intellectual property, including patents and trademarks, along with potential claims
of infringement by IPSI or BZWR of the intellectual property rights of others, (xiii) risk of loss of key IPSI or BZWR personnel and (xiv)
the risks of economic downturn, increased competition, a changing regulatory landscape, and related impacts that could occur in the highly
competitive marketplace in which IPSI and BZWR operate. The foregoing list of factors is not exhaustive. Readers should carefully consider
such factors and the other risks and uncertainties described and to be described in the “Risk Factors” section of IPSI and
BZWR’s most recent respective Annual Reports on Form 10-K filed with the SEC and subsequent periodic reports filed by IPSI and BZWR
with the SEC, and the Registration Statement to be filed by IPSI in connection with the proposed merger. These filings identify
and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not
to put undue reliance on forward-looking statements, and neither IPSI nor BZWR assume any obligation to, nor intend to, update or revise
these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Neither
IPSI nor BZWR gives any assurance that either IPSI or BZWR, or the combined company, will achieve its expectations.
Richard Rosenblum
President
+1 (866) 477-4729
4
v3.24.2
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Innovative Payment Solut... (QB) (USOTC:IPSID)
過去 株価チャート
から 7 2024 まで 8 2024
Innovative Payment Solut... (QB) (USOTC:IPSID)
過去 株価チャート
から 8 2023 まで 8 2024
